Lyft, the ride-hailing giant, recently reported its Q4 results which, while showing positive growth, have been overshadowed by a notably conservative outlook for Q1. The company revealed a 5% year-over-year increase in revenue for the fourth quarter, totaling $1.3 billion. This growth was bolstered by a 47% increase in the number of active riders, amounting to 20.7 million as of December 31, 2024. However, analysts were taken aback by Lyft’s prediction for Q1 bookings, which are anticipated to be between $1.0 billion and $1.05 billion. This projection falls short of market expectations and represents a muted outlook that may concern investors. Lyft’s shares fell by 9% in after-hours trading following the announcement, reflecting investor reactions to the cautious forecast. “We’re working hard to maximize our growth, but Q1 is historically a slower time for our business,” said Lyft co-founder and CEO Logan Green. Furthermore, the ride-sharing sector continues to face challenges, including rising competition and fluctuating fuel prices, which could impact future profitability. Lyft plans to enhance its service offerings and expand its market presence to combat these issues, but the coming quarter will be critical for the company’s trajectory in 2025 and beyond.
Lyft’s First Quarter Bookings and Profit Forecast Show Robust Growth amidst Market Challenges
