Lyft Reports Record Q4 and Full-Year 2024 Results
On February 11, 2025, Lyft, Inc. (Nasdaq: LYFT) announced impressive financial results for the fourth quarter and full year ended December 31, 2024. The company reported substantial growth in gross bookings, revenue, and profitability, marking a significant turnaround from previous years.
1. A Year of Transformation
David Risher, CEO of Lyft, expressed his enthusiasm about the company's achievements in 2024. "2024 was a record-smashing year for Lyft. Thanks to our industry-leading service levels, we helped 44 million people across the U.S. and Canada get off their tuchuses," Risher stated. He emphasized that while the company has made significant strides, there is still more to accomplish. "Our biggest competition is inertia. 2025 will be the year we show millions of riders and drivers: You've now got a better rideshare choice."
Erin Brewer, CFO, highlighted the financial milestones achieved during the year. "We achieved record Gross Bookings, significant margin expansion, our first full year of GAAP profitability, and record cash flow generation. We surpassed every target we provided at investor day and the best part is that 2024 was only the beginning of our multi-year plan," Brewer noted.
2. Financial Highlights
Record Fourth Quarter 2024
Lyft's Q4 financial performance showcased remarkable growth:
- Gross Bookings: $4.3 billion, a 15% increase year over year.
- Revenue: $1.6 billion, reflecting a 27% year-over-year growth.
- Net Income: $61.7 million, a significant turnaround from a net loss of $(26.3) million in Q4 2023.
- Net Income as a Percentage of Gross Bookings: 1.4%, compared to a net loss as a percentage of Gross Bookings of (0.7)% in Q4 2023.
- Adjusted EBITDA: $112.8 million, up from $66.6 million in Q4 2023, with a margin of 2.6%.
Record Full-Year 2024
For the full year, Lyft reported:
- Gross Bookings: $16.1 billion, a 17% increase year over year.
- Revenue: $5.8 billion, a 31% increase compared to 2023.
- Net Income: $22.8 million, a sharp recovery from a net loss of $(340.3) million in 2023.
- Net Cash from Operating Activities: $849.7 million, a marked improvement from $(98.2) million in 2023.
- Free Cash Flow: $766.3 million, recovering from $(248.1) million in 2023.
3. Operational Highlights
Lyft's operational performance further underlined its resurgence:
- Record Rides: Q4 rides grew 15% year over year to 219 million, with 828 million rides completed in 2024, up 17% from the previous year.
- Active Riders: Q4 saw a 10% year-over-year increase to 24.7 million, culminating in an annual total of 44 million active riders.
- Driver Preference: Lyft experienced a surge in driver preference, achieving the highest number of driver hours in the company's history, with a 16 percentage point advantage over competitors.
- Service Levels: The average estimated time of arrival (ETA) for rides became the fastest in the industry during Q4.
4. Share Repurchase Program
In a strategic move to enhance shareholder value, Lyft’s Board of Directors has authorized the repurchase of up to $500 million of the company's Class A common stock. The program will enable the company to buy back shares through open market purchases or privately negotiated transactions, depending on market conditions.
5. Q1 2025 Outlook
Looking ahead, Lyft projects continued growth:
- Rides Growth: Expected in the mid-teens year over year.
- Gross Bookings Growth: Anticipated between 10% to 14%, or approximately $4.05 billion to $4.20 billion.
- Adjusted EBITDA: Expected to range from $90 million to $95 million, with an Adjusted EBITDA margin of approximately 2.2% to 2.3%.
While Lyft has not provided a forward-looking GAAP equivalent for its non-GAAP outlook due to uncertainties in reconciling items, the company remains optimistic about its trajectory.
6. Conclusion
Lyft's record-breaking financial and operational results in 2024 signal a robust recovery and a promising future. With strong growth in both riders and revenue, coupled with strategic initiatives like the share repurchase program, Lyft is poised to solidify its position in the competitive rideshare market in 2025 and beyond.
