Lyft sees profit rise on mid-term guidance By Investing.com

lift (NASDAQ:) shares rose more than 5% today after the company gave medium-term guidance for profitable growth.

Positive outlook is leading the stock price rise. Lyft expects total bookings compound annual growth rate to be approximately 15% between 2024 and 2027.

We also forecast adjusted EBITDA margins of 4% on a full-year basis in 2027. This indicator reflects profitability relative to revenue.

Additionally, the company projects its free cash flow conversion rate to exceed 90% per year from 2025 to 2027, demonstrating its commitment to financial strength.

“Lyft’s customer-centric strategy is working,” said CEO David Risher. “We’re excited to share our vision for Lyft’s future.”

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