A Net Loss Returns, One Quarter After the First Profit
Lyft's Form 10-Q for the quarter ended September 30, 2024 shows a step back on the metric this site flagged as a milestone last quarter: net loss was $(12.4) million, versus net income of $5.0 million in Q2 2024, though still slightly narrower than the $(12.1) million net loss in Q3 2023. Loss from operations widened to $(56.7) million from $(40.2) million a year earlier. Free Cash Flow was $242.8 million (up from $(30.0) million in Q3 2023) - a fourth consecutive positive-FCF quarter, even as the quarter's bottom line slipped. Total revenue was $1,522.7 million, up 31.5% year-over-year from $1,157.6 million, and Adjusted EBITDA rose 17% to $107.3 million. Gross Bookings were $4,108.4 million, up 15.6% from $3,554.1 million, Rides were 216.7 million, up 15.7% from 187.4 million, and Active Riders were 24.4 million, up 9.0% from 22.4 million - the first time Active Riders has crossed 24 million in this site's coverage.
The Prescription
The swing back to a net loss one quarter after the first-ever GAAP profit is worth reading carefully rather than dismissing: at $(12.4) million it's a small loss in absolute terms, comparable in magnitude to Q3 2023's $(12.1) million rather than a reversal of the underlying trend, and cash generation kept improving regardless (nine-month operating cash flow of $696.4 million versus $(141.8) million a year earlier). The more useful read is that GAAP profitability at Lyft's current scale is still marginal and can flip on relatively small swings in interest income, tax provisions, or operating expense timing - not yet a durable floor. Revenue growth of 31.5% YoY continues to run well ahead of the low-to-mid-teens Gross Bookings and Rides growth, a gap this site has not yet found a clean explanation for in the filing text reviewed and will keep tracking.
Key Financial Metrics
Q3 2024 vs. Q3 2023 - consolidated, reported in USD
| Metric | Q3 2024 | Q3 2023 | YoY |
|---|---|---|---|
| Revenue | $1,522.7M | $1,157.6M | ✅ +31.5% |
| Adjusted EBITDA» | $107.3M | $92.0M | ✅ +16.6% |
| Loss from Operations | $(56.7)M | $(40.2)M | ⚠️ widened 41.1% |
| Net Loss | $(12.4)M | $(12.1)M | ⚠️ widened 2.5% |
Balance sheet: September 30, 2024 vs. December 31, 2023 (as reported in this filing)
| Balance sheet metric | Sep 2024 | Dec 2023 | Change |
|---|---|---|---|
| Cash + Short-Term Investments | $1,927.0M | $1,685.2M | ✅ +14.4% |
| Total Assets | $5,263.2M | $4,564.5M | ✅ +15.3% |
| Total Liabilities | $4,607.4M | $4,022.9M | ⚠️ +14.5% |
| Total Stockholders' Equity | $655.8M | $541.5M | ✅ +21.1% |
For the nine months ended September 30, 2024, net cash provided by operating activities was $696.4 million (nine months ended September 30, 2023: net cash used of $(141.8) million), and Free Cash Flow for the quarter alone was $242.8 million (Q3 2023: $(30.0) million). Insurance reserves rose to $1,592.6 million from $1,337.9 million at year-end 2023.
Key Operational Metrics
Q3 2024 vs. Q3 2023
| Metric | Q3 2024 | Q3 2023 | YoY |
|---|---|---|---|
| Gross Bookings | $4,108.4M | $3,554.1M | ✅ +15.6% |
| Rides | 216.7M | 187.4M | ✅ +15.7% |
| Active Riders | 24.4M | 22.4M | ✅ +9.0% |
| Adjusted EBITDA Margin (% of Gross Bookings) | 2.6% | 2.6% | flat |
Lyft continues to report as a single reportable segment.
Beyond the Usual
Active Riders Crossed 24 Million for the First Time
At 24.4 million, Active Riders reached a new high in this site's coverage, up from 22.4 million a year earlier and 23.7 million last quarter. Growth has been remarkably steady on a sequential basis across the last three quarters (21.9M → 23.7M → 24.4M), a smoother trajectory than the more volatile sequential swings this site tracked through 2020-2022.
Target Valuation Range
Undervalued relative to the multiple's recent range: EV/Revenue eased to approximately 1.46x on a trailing-twelve-month basis (from ~1.65x last quarter), as the stock fell a further 9.6% over the quarter to $12.75 - implying a fair enterprise value in roughly the $7.1-8.7B range (1.3-1.6x TTM revenue) against the current ~$7.97B.
With approximately 414.8 million total shares outstanding (406,280,530 Class A plus 8,530,629 Class B, per the September 30, 2024 balance sheet) and a September 30, 2024 close of $12.75, Lyft's market capitalization was approximately:
| Metric | Amount (USD) |
|---|---|
| Share price (Sep 30, 2024 close) | $12.75 |
| Shares outstanding | 414.8M |
| Market capitalization | $5.29B |
| Total liabilities | $4.61B |
| Less: cash and short-term investments | $(1.93)B |
| Enterprise value | ~$7.97B |
Against trailing-twelve-month revenue of $5,460.3 million (Q4 2023 through Q3 2024: $1,224.6M (derived) + $1,277.2M + $1,435.8M + $1,522.7M), that implies:
| Metric | Q2 2024 (prior quarter-end, trailing-twelve-month basis) | Q3 2024 (this quarter-end, trailing-twelve-month basis) |
|---|---|---|
| Enterprise Value | ~$8.40B | ~$7.97B |
| EV/Revenue» | ~1.65x | ~1.46x |
The stock fell from $14.10 to $12.75 over the quarter, a second consecutive quarterly decline. A full DCF still isn't attempted here.
Lyft, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC in November 2024.