LYFT issued a disappointing first-quarter gross bookings outlook, following a similarly muted forecast from rival Uber Technologies citing the impact from the extreme winter weather and LA wildfires.
Gross bookings for the first three months of 2025 will be US$4.05 billion to US$4.2 billion, Lyft said on Tuesday (Feb 11). Wall Street was expecting US$4.23 billion, according to Bloomberg-compiled estimates. Adjusted earnings before interest, taxes, depreciation, and amortisation will be US$90 million to US$95 million, the midpoint of which also falls short of analysts’ projections.
The company also announced its first share buyback programme of US$500 million.
Shares of Lyft fell as much as 10 per cent in extended trading after the results were announced.
Lyft’s forecast follows a similarly moderated forecast from Uber, which reported results last week. Its fourth-quarter gross bookings also landed slightly below expectations, despite setting a quarterly record.
The San Francisco-based company has been making efforts to deepen user loyalty, and reported a record 24.7 million active riders in the fourth quarter. It attributed the usage increase to scheduled airport rides during the holiday season, as well as its popular price lock feature launched last fall, which helps commuters lock in rates ahead of time for a designated route. The firm has since expanded the feature beyond weekday nine-to-five trips to include late-night hours.
Uber is also working on a price-guarantee feature with the same name, Bloomberg reported last month.
“Since launching last fall, we are seeing approximately 70 per cent of Price Lock riders continue to purchase passes month after month. Many of them are high-frequency riders who are now loyal to Lyft, thanks to this feature,” chief executive officer David Risher said in a statement to Bloomberg.
The company also made more improvements to its bottom-line metrics as promised during its investor day last June. In 2024, the firm notched its first annual profit on a Gaap basis and its first full-year positive cash flow. A company spokesperson partially attributed the results to an expansion of its premium Lyft Black and Lyft Black SUV services to more markets in 2024, with those kinds of rides growing 41 per cent from 2023. BLOOMBERG
