Lyft (LYFT.US) sets a record for Q3 ride volume, driving a 31.5% increase in revenue, with optimistic performance outlook.

After the US stock market on Wednesday, US ride-sharing giant Lyft (LYFT.US) released third-quarter earnings that exceeded Wall Street expectations and provided an optimistic outlook for the future. The financial report showed that Lyft's third-quarter revenue reached $1.52 billion, an increase of 31.5% year-over-year, higher than the market's expected $1.44 billion; adjusted EBITDA was $107.3 million, a 17% increase year-over-year, also higher than the expected $94.24 million. Despite a loss of $0.03 per share, it was slightly better than the market's expected loss of $0.04 per share. Total orders for the period were $4.1 billion, up 16% year-over-year, with a net loss of $12.4 million, including $36.4 million in restructuring costs. Looking ahead, Lyft expects total orders for the fourth quarter to increase by 15% to 17% year-over-year, with an adjusted EBITDA profit margin of approximately 2.3% to 2.4%, both better than market expectations. Lyft also updated its outlook for the fiscal year 2024, with an estimated annual growth rate in ridership of about 15%, total annual orders expected to increase by approximately 17% year-over-year, an adjusted EBITDA profit margin of about 2.3%, and expected free cash flow of over $65 million. In terms of specific business operations, Lyft reported that in the three months ending in September, 24.4 million unique passengers completed 217 million trips, both reaching new highs. In addition, Lyft's new price lock feature has performed better than expected, with over 200,000 passes issued. Lyft's CEO, David Risher, stated that commuters make up nearly half of Lyft's weekday ridership, and the price lock feature helps avoid price surges during peak hours. In contrast to Lyft, its competitor Uber Technologies, Inc. (UBER.US) disappointed with its performance announced at the end of October, with slower-than-expected growth in its ride-sharing business, causing its stock price to plummet nearly 10%, dragging down Lyft's stock price as well. However, Lyft's stock price soared 20% in after-hours trading. Furthermore, Lyft also announced plans to introduce self-driving cars to its shared ride platform starting in 2025, partnering with autonomous driving technology companies Mobileye Global (MBLY.US) and May Mobility, aiming to catch up with Uber Technologies, Inc., which will offer Waymo LLC autonomous driving car services in certain US cities next year. Tesla, Inc. also plans to enter the self-driving taxi market, while ride-sharing companies have been teaming up to compete for market share in the ride-hailing and delivery markets. Analysts suggest that Uber Technologies, Inc. and Lyft may benefit from collaborating with self-driving car companies to expand market size rather than building their own ride-sharing networks and competing with Tesla, Inc. However, they also warn that software development and regulatory approvals will take several years to navigate. Overall, Lyft's financial report and future outlook provide positive signals to investors, indicating that the company continues to maintain strong growth momentum in the ride-sharing market and is poised to further expand market share in the coming years.