Business
Lyft Provides 2027 Financial Targets at First Investor Day
Margin Expansion and Increasing Cash Flows Expected Customer Obsession Drives Profitable Growth SAN FRANCISCO--(BUSINESS WIRE)-- Lyft, Inc. (NASDAQ: LYFT)
About this update from Lyft, Inc.
[{"type":"text","content":"\nMargin Expansion and Increasing Cash Flows Expected\n\n\nCustomer Obsession Drives Profitable Growth\n\n\n SAN FRANCISCO--(BUSINESS WIRE)--\nLyft, Inc. (NASDAQ: LYFT) (the “Company” or “Lyft”) will host its first Investor Day today. The event will feature presentations by Lyft’s CEO David Risher, CFO Erin Brewer, and other leaders from across the Company, who will discuss Lyft’s plans for its next phase of profitable growth. The event will conclude with a live Q&A session.\n\n\n“Lyft’s customer-obsessed strategy is working. Our execution keeps getting better, we’re delivering industry-leading innovation, and we are working closely with partners to create great shared customer experiences,” said CEO David Risher. “We’re excited to share our vision for Lyft’s road ahead.”\n\n\n“Over the last year we’ve transformed our business and established a strong foundation for improving profitability and cash flow,” said CFO Erin Brewer. “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. I’m excited about Lyft’s next chapter as we continue building a financially healthy and customer-obsessed Lyft.”\n\n\n2027 Financial Targets\n\n\nThe Company expects:\n\n\n\nA Gross Bookings compound annual growth rate of approximately 15% between full-year 2024 and full-year 2027;\n\n\n\nAn Adjusted EBITDA margin (measured as a percentage of Gross Bookings) of approximately 4% on a full-year basis in 2027; and\n\n\n\nFree cash flow conversion (measured as a percentage of Adjusted EBITDA) of more than 90% annually each year between 2025 and 2027.\n\n\n\n2024 Financial Outlook Reaffirmed\n\n\nThere is no change to Lyft’s previously announced outlook for Q2 2024 or to the Company’s directional commentary for full-year 2024, which were updated during the company’s first quarter 2024 earnings call on May 7, 2024.\n\n\nWe have not provided the forward-looking GAAP equivalents to our non-GAAP financial targets or outlook or GAAP reconciliations as a result of the uncertainty regarding, and the potential variability of reconciling items such as stock-based compensation and income tax. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalent is not available without unreasonable effort. However, it is import...