Lyft shares gain on mid-term guidance

Lyft (NASDAQ: LYFT) shares are up more than 5% today after the company outlined its mid-term guidance for profitable growth.

The positive outlook is driving the rally in stock price. Lyft expects to see a Gross Bookings compound annual growth rate of approximately 15% between 2024 and 2027.

They are also forecasting an Adjusted EBITDA margin of 4% on a full-year basis in 2027. This metric reflects profitability as a percentage of revenue.

Additionally, the company expects free cash flow conversion to exceed 90% annually between 2025 and 2027, demonstrating its commitment to financial health.

"Lyft's customer-obsessed strategy is working," said CEO David Risher. "We're excited to share our vision for Lyft's road ahead."

Investors are reacting favorably to Lyft's focus on profitability and cash flow generation. The company reaffirmed its previously announced financial outlook for Q2 2024 and for the full year 2024.

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