Ride-hailing company Lyft on Thursday forecast an adjusted operating profit of US$1 billion for 2024, and the company is also targeting US$700 million in free cash flow in 2024.
The forecast follows a sales report for the second quarter in which the company beat analyst estimates thanks to rising demand for rides and its cost-cutting efforts.
Lyft’s adjusted EBITDA, a metric that excludes stock-based compensation and some other costs, was US$79 million in the second quarter, exceeding analyst estimates of US$18.66 million.
Lyft earned 13 cents per share on an adjusted basis, compared to a loss of 3 cents that analysts had forecast.
“We had the majority of new drivers come in organically… There is a tailwind as more and more people are enjoying this supplemental income,” Lyft President John Zimmer said in an interview.
After a series of losses during the pandemic, Lyft is now back on track. Despite the growth, Zimmer sees more room for growth. The company is working to bring drivers and riders together, create improved maps and introduce new programs for users that are available at different prices.
The sources for this piece include an article in Reuters.