Lyft Reports Strong Quarterly Results

By Akash Sriram
(Reuters) – Lyft forecasted its current-quarter gross bookings above estimates after posting positive quarterly sales, reflecting steady demand for its ride-hailing services as people return to workplaces.

Lyft (NASDAQ:LYFT) shares, which usually experience significant fluctuations post-earnings, surged about 22% in extended trading.

As more companies implement return-to-office policies, workers are increasingly relying on app-based taxi services like Lyft and Uber (NYSE:UBER) for daily commutes, leading to higher weekday demand for ride-hailing.

To compete with its larger rival, Lyft introduced a Price Lock feature, enabling users to avoid surge pricing during peak commuting hours. CEO David Risher noted, "Price Lock riders take on average 4 more rides per month than they did before purchasing the pass."

Last week, Uber reported better-than-expected third-quarter revenue, but its forecast for the holiday quarter fell short of analysts' expectations. Despite Uber's leading position in the market, analysts anticipate Lyft will maintain its robust second-place standing.

Morningstar analyst Malik Ahmed Khan remarked, "We think the firm had a solid third quarter, with impressive gross bookings and revenue growth. They are effectively increasing their scale, evidenced by the year-over-year rise in both rides and riders."

This year, Lyft has initiated several measures to attract and retain drivers, including guaranteed minimum earnings and increased pay for longer trips, to meet the growing demand and compete with Uber.

Revenue increased by 31.5% to $1.52 billion for the quarter ending September 30, exceeding the analysts' average estimate of $1.44 billion. Lyft anticipates gross bookings for the year to rise by approximately 17%, surpassing Wall Street's expectation of 16.3%.

The company predicts gross bookings between $4.28 billion and $4.35 billion for the fourth quarter, above estimates of $4.23 billion. Additionally, Lyft forecasts adjusted core earnings for the current quarter to be between $100 million and $105 million, exceeding expectations of $85.1 million.

Lyft reported an adjusted profit of 29 cents per share, beating the estimated 20 cents per share.