LYFT Q4 2023 Earnings

Call Details

• Call Title: Lyft, Inc. Q4 2023 Earnings Call
• Date: February 13, 2024 at 9:30 PM UTC
• Management Team:
  • Sonia Banerjee (Head of Investor Relations)
  • David Risher (Chief Executive Officer)
  • Erin Brewer (Chief Financial Officer)
  • Kristin Sverchek (President)

Call Summary

Financial Performance

• Lyft supported 191 million rides in Q4 2023 and reported 22.4 million active riders for the quarter.
• Total rides grew 26% year over year in Q4 2023, representing acceleration each quarter through year end.
• Gross bookings in Q4 exceeded $3.7B, which was up 17% year over year.
• Revenue in Q4 exceeded $1.2B, which was up 4% year over year.
• Cost of revenue for Q4 was $736M, down 3% year over year, reflecting lapping of a 2022 insurance reserve charge.
• Operating expenses for Q4 were $450M, down 35% year over year, and represented approximately 12% of gross bookings.
• Adjusted EBITDA in Q4 was $67M, equal to 1.8% of gross bookings, and full year 2023 adjusted EBITDA was $222M (1.6% of gross bookings).
• Full year 2023 gross bookings were $13.8B, which was up 14% year over year.

Guidance

• For Q1 2024 Lyft expects gross bookings of $3.5B to $3.6B, which implies growth of 15% to 18% year over year.
• Q1 2024 total rides growth is expected to be approximately 20% year over year.
• Q1 2024 adjusted EBITDA is expected to be approximately $50M to $55M, or roughly 1.4% to 1.5% of gross bookings.
• For full year 2024 Lyft expects total rides growth in the mid-teens year over year.
• Lyft expects modest growth in gross bookings per ride in 2024 and expects gross bookings to grow slightly faster than rides.
• Lyft expects adjusted EBITDA margin to expand by approximately 50 basis points to about 2.1% of gross bookings for full year 2024.
• Lyft expects to generate positive free cash flow for the full year 2024 and expects roughly half of adjusted EBITDA dollars to convert to free cash flow.