(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 investor day.
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It also expects its adjusted Ebitda margin, as a percentage of gross bookings, to be around 4% in 2027. Analysts had expected 3.4%, according to estimates compiled by Bloomberg.
Additionally, Lyft said it expects full-year free cash flow conversion of more than 90% annually 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 first investor day included scheduled presentations from CEO David Risher, CFO Erin Brewer and other executives.
Brewer said the path to profitability will depend on increasing ride volume and promoting new products such as its advertising offering. It expects gross bookings from 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 mostly comparable to that of its biggest rival, Uber Technologies Inc., which said in February that it expects gross bookings growth in the “mid to high teens.” » over the next three years thanks to its ride-sharing and delivery activities. business.
Analysts are particularly confident in the demand for ride-sharing services, although overall gains are expected to decline. The proportion of buy ratings for Lyft stock has increased over the past year as the company has improved ridership and retention.
Lyft rose 4% to $16.15 as of 11:40 a.m. in New York. The stock had gained 3.6% this year through Wednesday’s close.
(Updates stock price and adds CFO’s remarks and context from fifth paragraph.)
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