Lyft offers up 'long-awaited' long-term forecast - and this key metric could hit $25 billion, analyst says
By Bill Peters
The ride-sharing app said it expects gross bookings to grow around 15% between this year and 2027
Shares of Lyft Inc. were up Thursday after the ride-hailing service forecast growth in a key demand metric through 2027, albeit while leaving its outlook for this year unchanged.
Lyft (LYFT) said it expects gross bookings - or the total dollar value of what riders pay to use Lyft's services, excluding tips to drivers - to grow around 15% between this year and 2027. The company announced the forecast in connection with its Investor Day on Thursday.
"The financial targets we are announcing today reflect our expectations of healthy top-line growth and margin expansion as we deliver on our strategic priorities," Chief Financial Officer Erin Brewer said in a statement.
RBC analysts, in a brief note, said the longer-term forecast was "long awaited" - adding that it implies gross bookings of $25 billion.
Shares of Lyft were up 3.2% on Thursday, after opening higher. The stock is up nearly 16% so far this year.
Lyft has been attracting more riders and recently posted its second straight quarter of positive free cash flow. But it faces questions over its ability to differentiate itself from its far bigger rival, Uber Technologies Inc., while both companies have faced criticism that their pay to drivers is too low.
Shares of Uber (UBER) were up 3.9% on Thursday.
-Bill Peters
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06-06-24 1358ET
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