Shares of Lyft (NASDAQ: LYFT), the No. 2 ride-sharing company, were moving higher today after the company reported strong results in its third-quarter earnings report, including record trips.
As of 1:39 p.m. ET, the stock was up 22.9%.
Image source: Getty Images.
Lyft continues to deliver solid growth, with gross bookings up 16% in the quarter, driving revenue up 32% to $1.52 billion. This beat estimates at $1.44 billion, as the company deployed incentives to riders and drivers more efficiently.
Active riders rose 9% in the quarter to 24.4 million, and rides rose 16% to 217 million.
That performance continued to deliver growth on the bottom line, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose from $92 million to $107.3 million.
Lyft ramped up spending on sales and marketing, which led to flat growth in a generally accepted accounting principles (GAAP) loss per share of $0.03, which was below the consensus at $0.20 per share.
Investors seemed willing to look past the weak bottom-line result due to strong top-line growth, solid guidance, and new partnerships with self-driving car companies including Mobileye, May Mobility, and Nexar to connect riders to autonomous vehicles.
CEO David Risher said, “Our team delivered one of the strongest quarters in Lyft history, following the many new innovations we’ve brought to drivers and riders so far this year.”
Looking ahead, Lyft sees gross bookings rising 15%-17% to $4.28 billion-$4.35 billion in the fourth quarter, and adjusted EBITDA of $100 million-$105 million.
It also called for similar growth rates for the full year and raised its adjusted EBITDA margin guidance from 2.1% to 2.3%.
Lyft continues to deliver steady growth, and its investments across the business are paying off. Given that, the beaten-down stock looks like a good bet to keep climbing.
Before you buy stock in Lyft, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lyft wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $892,313!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of November 4, 2024
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Mobileye Global. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
