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LYFT Q3 Earnings and Revenues Outshine Estimates, Up Y/Y
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Lyft (LYFT - Free Report) reported third-quarter 2023 earnings (excluding 27 cents from non-recurring items) of 24 cents per share, beating the Zacks Consensus Estimate of 13 cents. In the year-ago period, it reported earnings of 11 cents.
Total revenues of $1,157.6 million surpassed the Zacks Consensus Estimate of $1,142.3 million. The top line rose 9.8% year over year, reflecting growth in the rideshare market. Active riders increased 10% year over year in the reported quarter to 22.4 million. The figure was, however, below our estimate of 24.4 million.
Revenue per active rider decreased marginally year over year to $51.67. We projected the metric to be $46.82.
Adjusted EBITDA in the quarter under review totaled $92 million. The figure outshined our estimate of $80.1 million as well as the second-quarter 2023 actual figure of $41 million. Adjusted EBITDA was 2.6%.
Total costs and expenses plunged 11.1% year over year to $1.19 billion. Contributions climbed 4.5% year over year to $520 million. The actual figure was above our prediction of $513.3 million.
The contribution margin improved to 44.9% in the reported quarter from 47.2% a year ago. Our model anticipated the metric to be 45%.
Q4 Outlook
Management expects gross bookings to be between $3.6 billion and $3.7 billion. Adjusted EBITDA is projected in the range of $50-$60 million. Adjusted EBITDA margin (calculated as a percentage of gross bookings) is anticipated to be between 1.4% and 1.6%.
LYFT forecastsfourth-quarter revenues to grow mid-single digits quarter over quarter. Adjusted EBITDA margin (as a percentage of revenues) is suggested to be roughly in line with the second-quarter 2023 level of 4%.
Let’s take a look at the Q3 performances of other companies from the same industry.
DoorDash (DASH - Free Report) reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago loss of 77 cents. However, the figure beat the Zacks Consensus Estimate by 57.78%.
Revenues increased 27.2% year over year to $2.16 billion and surpassed the consensus mark by 3.52%. DASH’s impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
Etsy (ETSY - Free Report) reported third-quarter 2023 earnings of 64 cents per share, outpacing the Zacks Consensus Estimate by 30.61%. The bottom line reflects a year-over-year increase of 10.3%.
Revenues advanced 7% year over year to $636.3 million. The figure beat the Zacks Consensus Estimate by 1.04%. ETSY’s top-line growth was driven by accelerating services revenues.
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LYFT Q3 Earnings and Revenues Outshine Estimates, Up Y/Y
Lyft (LYFT - Free Report) reported third-quarter 2023 earnings (excluding 27 cents from non-recurring items) of 24 cents per share, beating the Zacks Consensus Estimate of 13 cents. In the year-ago period, it reported earnings of 11 cents.
Total revenues of $1,157.6 million surpassed the Zacks Consensus Estimate of $1,142.3 million. The top line rose 9.8% year over year, reflecting growth in the rideshare market. Active riders increased 10% year over year in the reported quarter to 22.4 million. The figure was, however, below our estimate of 24.4 million.
Revenue per active rider decreased marginally year over year to $51.67. We projected the metric to be $46.82.
Adjusted EBITDA in the quarter under review totaled $92 million. The figure outshined our estimate of $80.1 million as well as the second-quarter 2023 actual figure of $41 million. Adjusted EBITDA was 2.6%.
Total costs and expenses plunged 11.1% year over year to $1.19 billion. Contributions climbed 4.5% year over year to $520 million. The actual figure was above our prediction of $513.3 million.
The contribution margin improved to 44.9% in the reported quarter from 47.2% a year ago. Our model anticipated the metric to be 45%.
Q4 Outlook
Management expects gross bookings to be between $3.6 billion and $3.7 billion. Adjusted EBITDA is projected in the range of $50-$60 million. Adjusted EBITDA margin (calculated as a percentage of gross bookings) is anticipated to be between 1.4% and 1.6%.
LYFT forecastsfourth-quarter revenues to grow mid-single digits quarter over quarter. Adjusted EBITDA margin (as a percentage of revenues) is suggested to be roughly in line with the second-quarter 2023 level of 4%.
Lyft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s take a look at the Q3 performances of other companies from the same industry.
DoorDash (DASH - Free Report) reported a GAAP loss of 19 cents per share in third-quarter 2023, narrower than the year-ago loss of 77 cents. However, the figure beat the Zacks Consensus Estimate by 57.78%.
Revenues increased 27.2% year over year to $2.16 billion and surpassed the consensus mark by 3.52%. DASH’s impressive growth was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.
Etsy (ETSY - Free Report) reported third-quarter 2023 earnings of 64 cents per share, outpacing the Zacks Consensus Estimate by 30.61%. The bottom line reflects a year-over-year increase of 10.3%.
Revenues advanced 7% year over year to $636.3 million. The figure beat the Zacks Consensus Estimate by 1.04%. ETSY’s top-line growth was driven by accelerating services revenues.