Shares in Lyft (NASDAQ:LYFT) fell more than 10% in premarket trading Wednesday after the ride-hailing firm issued a soft forecast for the fiscal Q3.
For Q2, the company posted earnings per share (EPS) of $0.01, surpassing the expectations of a loss per share of $0.04. Revenue for the quarter reached $1.44 billion, exceeding the consensus estimate of $1.39 billion.
The company reported gross bookings of $4.02 billion, slightly below the estimate of $4.07 billion. Adjusted EBITDA came in at $102.9 million, compared to $41 million year-over-year, and above the expectations of $99.1 million.
For Q3, Lyft forecasts gross bookings in the range of $4 billion to $4.1 billion, below the consensus projection of $4.14 billion. Adjusted EBITDA is expected to be between $90 million and $95 million, below the estimate of $104 million.
The company forecasts a Q3 2024 adjusted EBITDA margin of approximately 2.3% as a percentage of gross bookings.
For FY24, Lyft anticipates rides growth in the mid-teens year-over-year and an adjusted EBITDA margin of about 2.1% as a percentage of gross bookings.
It said it remains on track to generate positive free cash flow for the full year and expects to achieve more than 90% of its long-term conversion target for the full-year 2024, ahead of schedule.
“For over a year you've heard us say that customer obsession drives profitable growth," said CEO David Risher. “In Q2 we delivered, and drivers and riders are choosing Lyft in record numbers.”