Lyft Q4 bookings hit $5.1B but revenue misses by 9%, PT cut

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Lyft’s Q4 bookings rose 18.6% to $5.1B, yet rides grew just 11.4% versus 17.3% expected and revenue edged 2.7% to $1.6B, 9% below estimates after a one-time charge. Wedbush cut its price target to $13, kept an Underperform rating and flagged soft Q1 bookings growth of 16.8%-20.1% and $120M-$140M EBITDA.

1. Q4 Performance Shortfalls

Lyft reported Q4 bookings of $5.1B (up 18.6% YoY) but total rides grew just 11.4% versus 17.3% expected, and revenue rose 2.7% to $1.6B, missing estimates by roughly 9% due to a one-time legal, tax and regulatory charge.

2. Analyst Reaction

Wedbush cut its price target from $16 to $13 and maintained an Underperform rating, pointing to weaker ride growth, modest guidance and indications of U.S. market share loss to Uber as key concerns.

3. Q1 Outlook

Management forecasts Q1 gross bookings growth between 16.8% and 20.1%, with adjusted EBITDA projected at $120M to $140M, and expects ride volume to lag as higher-priced premium services gain emphasis.

4. Long-Term Risks

Analysts warned that Lyft faces longer-term challenges from autonomous-vehicle disruption and its concentration in ride-hailing, potentially limiting diversification and placing further pressure on its valuation.

Sources

FF