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Lyft, Inc. (LYFT)·Q4 2024 Earnings Summary

Executive Summary

  • Lyft delivered record Q4 2024 results: revenue $1.55B (+27% YoY), gross bookings $4.28B (+15% YoY), and adjusted EBITDA $112.8M with 2.6% margin; GAAP net income was $61.7M (1.4% of GB) .
  • The company beat its Q4 adjusted EBITDA and margin guidance and exceeded FY24 free cash flow guidance ($766.3M vs “> $650M”), while Q4 gross bookings landed at the low end of guidance .
  • Management flagged a lower pricing environment persisting into Q1 2025; Q1 outlook guides gross bookings to $4.05–$4.20B and adjusted EBITDA to $90–$95M (margin ~2.2–2.3%) .
  • Announced a $500M share repurchase authorization and intent to repay May 2025 convertible notes with balance sheet cash—key capital allocation catalysts supporting dilution offset and deleveraging .

What Went Well and What Went Wrong

What Went Well

  • Record operating KPIs: Q4 rides 218.5M (+15% YoY) and active riders 24.7M (+10% YoY); 2024 rides 828.3M (+17% YoY) and annual riders 44M .
  • Service level and marketplace strength: industry-fastest ETAs; survey showed a 16-point driver preference advantage vs the largest competitor; riders saved >$400M from reduced “prime time” surge pricing .
  • Profitability and cash generation: first full year of GAAP profitability; Q4 adjusted EBITDA margin at 2.6% of gross bookings; FY24 free cash flow $766.3M .

Quote: “2024 was a record-smashing year… We achieved record Gross Bookings, significant margin expansion, our first full year of GAAP profitability, and record cash flow generation.” — CFO Erin Brewer .

What Went Wrong

  • Pricing pressures: Late Q4 saw lower base pricing across the U.S.; to remain competitive, Lyft lowered base prices and increased couponing—pressuring Q1 gross bookings outlook despite strong rides growth .
  • Seasonal headwinds: Q1 is typically the slowest quarter; leap year impact removes one day YoY (~1pp GB headwind), and rides skew shorter/local—constraining gross bookings .
  • Delta partnership wind-down: Ending April 7, 2025, expected to reduce Q2 onward rides and GB growth by ~1–2 percentage points YoY, requiring offsets via other partnerships .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$1,435.8 $1,522.7 $1,550.3
Gross Bookings ($USD Millions)$4,018.9 $4,108.4 $4,278.9
Net Income ($USD Millions)$5.0 $(12.4) $61.7
Net Income Margin (% of GB)0.1% (0.3)% 1.4%
Adjusted EBITDA ($USD Millions)$102.9 $107.3 $112.8
Adjusted EBITDA Margin (% of GB)2.6% 2.6% 2.6%
Free Cash Flow ($USD Millions)$256.4 $242.8 $140.0
EPS (Diluted, $USD)$0.01 $(0.03) — (quarter EPS not disclosed; FY diluted EPS $0.06)

KPIs

KPIQ2 2024Q3 2024Q4 2024
Active Riders (Millions)23.7 24.4 24.7
Rides (Millions)205.3 216.7 218.5
Net Cash from Operations ($USD Millions)$276.2 $264.0 $153.4

Note: Press release also reported Q4 rides at 219M (rounding vs 218.5M table) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/ActualChange
Gross Bookings ($B)Q4 2024$4.28–$4.35 $4.279 Met (low end)
Adjusted EBITDA ($M)Q4 2024$100–$105 $112.8 Raised/Beat
Adj EBITDA Margin (% of GB)Q4 2024~2.3–2.4% 2.6% Raised/Beat
Free Cash Flow ($M)FY 2024>$650 $766.3 Raised/Beat
Adj EBITDA Margin (% of GB)FY 2024~2.3% 2.4% Raised
Gross Bookings ($B)Q1 2025—$4.05–$4.20 New
Adjusted EBITDA ($M)Q1 2025—$90–$95 New
Adj EBITDA Margin (% of GB)Q1 2025—~2.2–2.3% New

Earnings Call Themes & Trends

TopicQ2 2024 (Prior-2)Q3 2024 (Prior-1)Q4 2024 (Current)Trend
Pricing & MarketplaceFirst-ever GAAP profitable quarter; strong cash flow; robust marketplace health Raised FY outlook; record riders/hours; DoorDash partnership Lower pricing late Q4; competitive base pricing; couponing increased to balance marketplace; Q1 guide reflects persistence Pricing down; volume up; balancing margins
Driver Supply & PreferenceDriver hours all-time high; earnings commitment launched All-time high driver hours and active riders 16-pt driver preference advantage; AI support saved ~28k driver support hours Strengthening supply; improved efficiency
Product InitiativesRecord riders; Canada rides doubled DoorDash benefits; driver earnings improvements Price Lock uptake (~70% renewal; 1.6M rides, largely incremental); Women+ Connect >50M rides Scaling engagement features
Media/Ads——Media ~$50M annualized exit Q4; target ~$100M exit run-rate Q4’25 Growing monetization
AV Partnerships—Announced Mobileye/May Mobility/Nexar partnerships Marubeni/AV financing and Mobileye “Lyft-ready”; May Mobility Atlanta 2025 Building AV ecosystem
Insurance & CostsStrong cash flow; margin expansion Fixed-cost leverage; restructuring Cost of revenue outperformed guide (shorter trip distance); continued cost discipline Improving unit economics
Market Share——Share highest since 2022; rides up high-teens in January Positive momentum

Management Commentary

  • “From what we can see, Lyft’s average ETA in Q4 were faster than both our big legacy competitor and newer entrants.” — CEO David Risher .
  • “If prime time occurrences happened at the same rate and frequency in 2024 as in the prior year, gross bookings growth would have been 20% YoY.” — CFO Erin Brewer .
  • “We plan to reduce our overall leverage by repaying our convertible notes due in May 2025, with cash on the balance sheet.” — CFO Erin Brewer .
  • “AVs will be a transformational addition to the marketplace… we announced a partnership with Marubeni… starting in Dallas as early as 2026.” — CEO David Risher .

Q&A Highlights

  • Pricing dynamics: Management lowered base prices and increased coupons late Q4 to remain competitive; January rides grew high-teens but per-mile price reached a five-quarter low .
  • AV impact and margins: Waymo’s presence expanded market without taking Lyft share; Phoenix growth outpaced national; margins supported via mix (premium products, Media) .
  • Driver initiatives: 16-point driver preference advantage; AI support reduced driver support time by ~28,000 hours; focus on retention over acquisition .
  • Media/Price Lock: Media run-rate ~$50M exiting Q4; aiming ~$100M exit rate Q4’25; Price Lock riders show ~70% pass renewal and many rides are incremental .

Estimates Context

  • S&P Global consensus estimates were unavailable during this session due to request limits; therefore, results vs Wall Street consensus cannot be shown. Values would normally be retrieved from S&P Global; consensus data was unavailable at the time of analysis.*

Where estimates may adjust:

  • Q1 2025 outlook implies gross bookings $4.05–$4.20B and adjusted EBITDA $90–$95M (margin ~2.2–2.3%) amid a lower pricing environment—sell-side may trim near-term revenue/GB while increasing volume assumptions .

Key Takeaways for Investors

  • Strong quarter: Revenue, adjusted EBITDA, margin, and cash generation were robust; Q4 adjusted EBITDA/margin beat guidance; FY free cash flow exceeded the raised target .
  • Volume over price near term: Management is prioritizing competitive, reliable pricing to drive rides growth; expect near-term GB sensitivity to pricing with margin supported by mix and cost discipline .
  • Capital allocation: $500M buyback plus repayment of May 2025 converts with cash underscores balance sheet strength and dilution mitigation .
  • Marketplace advantage: Fastest ETAs and driver preference gap should sustain share gains and frequency, supporting medium-term growth .
  • Monetization levers: Premium ride mix (Black/SUV) and growing Media business offer higher-margin add-ons; targets imply incremental profitability through 2025 .
  • Partnerships/AV optionality: DoorDash and AV ecosystem (Mobileye, May Mobility, Marubeni) add strategic avenues for growth and TAM expansion, albeit staged over 2025–2026 .
  • Watch Q1 setup: Seasonal factors, fewer days, and lower pricing weigh on GB guidance; focus on rides growth, margin execution, and updates on partnership offsets to the Delta headwind .

Footnote: *S&P Global consensus estimates were unavailable during this session due to daily request limits.