Shares in rideshare company Lyft (LYFT) surged during morning trading on Thursday following a strong earnings guidance report for Q4 2024 and FY 2025. In a Wednesday release, the San Francisco-based company signaled a rise in expected adjusted earnings. Fourth-quarter adjusted earnings will total as much as $105 million, far surpassing analysts’ estimates of $85 million, according to Lyft.
Lyft’s estimates for gross bookings also beat projections. The company raised its full-year outlook for both bookings growth and adjusted earnings margin, according to the Wednesday statement. Lyft took a tumble in October following the disappointing earnings report of its rival rideshare company Uber (UBER). Uber’s shares plummeted around 10%, and it also sent shares down a spiral. However, the latest rise in projected earnings on Wednesday caused Lyft stock to boom by as much as 31% in Thursday trading. This marks their biggest intraday gain since February 2024.
Chief Executive Officer David Risher said this week that commuters accounted for nearly half of Lyft’s weekday rides this past quarter. “It’s no wonder Price Lock is performing beyond our expectations,” Risher said in a statement to Bloomberg. “By the end of September, we already had more than 200,000 active passes, and this number keeps growing.”
Also Read: Buy Spotify Stock Before Q3 Earnings Results For Profits
Lyft posted its first-ever quarterly profit of $5 million by the measure of net income this past August. This profit was a promising sign for the company. However, while total riders and trips rose, the company’s growth in gross bookings decelerated in Q3 as part of an expected slowdown. Most analysts don’t expect Lyft to turn consistent profits until at least 2025. However, 2025 could bring some exciting updates for the company.
Indeed, Lyft said Wednesday it will begin bringing autonomous vehicles to its ridesharing platform in 2025. The company will establish partnerships with self-driving technology firms Mobileye Global Inc. and May Mobility, according to a report. The move is one to catch up with Uber, which will offer rides in Waymo LLC’s AVs in certain US cities next year. Tesla, another rival, is also expected to enter the AV race next year with its Robotaxi launch.
At press time, Lyft stock sits at 18.12 a share, up 26%.