Lyft predicts 15% growth in bookings over the next three years

(Bloomberg) — Lyft Inc. expects gross bookings to grow about 15% at a compound annual rate over the next three years, the company said Thursday at the start of its first day for investors.

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The company also expects its adjusted EBITDA margin, as a percentage of gross reserves, to be about 4% in 2027. Analysts had expected 3.4%, according to estimates compiled by Bloomberg.

Additionally, Lyft said it anticipates full-year free cash flow conversion of more than 90% annually each year between 2025 and 2027.

The San Francisco-based company’s updates were part of a broader three-year growth outlook it provided ahead of the event. Lyft’s inaugural investor day included scheduled presentations from CEO David Risher, Chief Financial Officer Erin Brewer and other executives.

Brewer said the path to profitability will depend on expanding travel volume and promoting new products, such as its advertising offering. It expects gross bookings for Lyft Media, the advertising platform, to be more than $400 million in 2027, up from $50 million in 2024.

Lyft’s long-term outlook is largely on par with that of its biggest rival, Uber Technologies Inc., which said in February that it expects gross growth in bookings from “mid- to high-end teens” over the next three years. from its ridesharing and delivery service. business.

Analysts have been particularly confident in demand for ride-hailing services, although overall gains are expected to gradually decline. The proportion of buy ratings for Lyft shares has increased over the past year as the company has improved ridership and retention.

Lyft shares rose as much as 11% on Thursday before closing at $15.66, a gain of less than 1%.

(Updates title and stock price.)

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