Lyft shares saw a significant rise early Thursday as the company disclosed a double-digit increase in third-quarter revenue, surpassing Wall Street expectations while demonstrating a positive gross bookings outlook for the ongoing three-month period. Gross bookings, a critical measure of the company's operational scale and overall impact, is anticipated to fall between $4.28 billion and $4.35 billion for the fourth quarter.
This projection indicates a year-over-year growth of 15% to 17%. In the September quarter, Lyft recorded a 16% year-over-year advance in gross bookings, amounting to $4.11 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to range from $100 million to $105 million for the fourth quarter, following a third-quarter figure of $107.3 million.
The adjusted EBITDA margin, determined as a percentage of gross bookings, is estimated to decline to about 2.3% to 2.4%, down from 2.6% in the September quarter. Lyft's forecasts for gross bookings and adjusted EBITDA for the fourth quarter exceeded Wall Street's expectations of $4.23 billion and $86 million, respectively, as noted by Truist Securities in a client memorandum.
Chief Financial Officer Erin Brewer stated during an earnings call, "Our outlook includes both the impact of the DoorDash partnership as well as the renewal of our third-party insurance agreements." This partnership unveiled in late October aims to provide benefits on both rides and deliveries. Looking ahead to 2024, Lyft anticipates the adjusted EBITDA margin to be around 2.3%, an increase from its earlier forecast of 2.1%.
Gross bookings are projected to climb by 17% year-over-year, with the company forecasting rides growth in the mid-teens annually. The stock experienced a notable jump of approximately 22% before trading began. The results and guidance shared by Lyft suggest improving fundamentals in an environment of more sensible competition, showcasing early results from management's strategy focusing on enhancing customer experiences, innovative product offerings, and effective pricing strategies, as mentioned by Truist.
In the third quarter, Lyft reported a net loss of $0.03 per share, consistent with the same period last year and aligning with consensus estimates on a GAAP basis. Revenue soared by 32% year-over-year, reaching $1.52 billion, outperforming expectations of $1.44 billion. The number of active riders increased by 9% compared to the previous year, totaling 24.4 million, with rides rising by 16% to 217 million.
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