Lyft expects its fourth quarter revenue to grow by the mid-single digits compared with the previous quarter.
The ride-share company announced this outlook Wednesday (Nov. 8) while reporting its third quarter results in a press release.
Lyft also introduced new key metrics that are presented on a total company basis: gross bookings, rides and adjusted EBITDA margin, according to the release.
“Our Q4 outlook calls for continued progress, and the updates we are making to our key business metrics today better align our reporting with our strategic priorities,” Lyft Chief Financial Officer Erin Brewer said in the release. “We remain committed to building a durable, healthy and profitable business that our customers love.”
That “tepid sales outlook” may fall short of analysts’ average projection, Bloomberg reported Wednesday.
The company’s shares fell about 5% in extended trading after closing in New York, and they are down 2.7% this year, according to the report.
Lyft has struggled in comparison to rival Uber because it doesn’t have a food delivery offering like that company does, the report said.
Since the pandemic, Lyft has had a hard time increasing its rider base, despite spending millions of dollars in an attempt to do so, even as Uber has gained market share, per the report.
During the third quarter, Lyft’s gross bookings were up 15% year over year (YoY), revenue was up 10% YoY and rides were up 20% YoY, according to its earnings release. Adjusted EBITDA margin as a percentage of gross bookings reached 2.6%, compared with negative 0.9% a year earlier.
“More drivers and riders are choosing Lyft because we’re following a simple formula: listen to customers and build the experiences they want,” Lyft CEO David Risher said in the release.
One example cited by Risher is Women+ Connect, which is now available in more than 50 cities and towns across the U.S. Launched in September, this feature allows women and non-binary riders using the ride-sharing platform to opt-in and thereby increase their chances of being matched with women and non-binary drivers.
“There’s so much open road ahead to create a customer-obsessed financially strong Lyft,” Risher said in the release.