Lyft (NASDAQ:LYFT) has reported its second-quarter 2023 earnings, revealing positive results and growth in key areas. The company’s earnings per share (EPS) for the quarter, excluding non-recurring items, were 15 cents, beating the Consensus Estimate of a loss of 1 cent. In comparison, Lyft reported earnings of 12 cents per share in the same period last year.

Total revenues for the quarter reached $1,020.9 million, surpassing the Consensus Estimate of $1,017.5 million. This marks a 3% increase year-over-year, reflecting growth in the rideshare market.

The number of active riders also saw growth, increasing by 8.2% compared to the same quarter last year, reaching 21.45 million. However, this figure fell short of the estimated 22.8 million.

Despite the growth in riders, Lyft‘s revenue per active rider decreased by 4.8% year-over-year, reaching $47.51. This decline was attributed to lower revenue per ride, with an anticipated metric of $44.35.

The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter stood at $41 million, surpassing both the expected $29 million and the previous quarter’s figure of $22.7 million. The adjusted EBITDA margin also exceeded expectations, reaching 4% compared to the estimated 2.3% and the previous quarter’s 2.3%.

Total costs and expenses decreased by 13.2% year-over-year to $1.18 billion. Contributions, on the other hand, increased by 35.3% to $426.4 million, slightly exceeding the predicted $425.3 million.

The contribution margin improved to 41.8% from 31.8% in the same period last year. Although slightly below the projected 42%, this improvement indicates positive trends.

Looking ahead to the third quarter of 2023, Lyft anticipates revenues between $1.13 billion and $1.15 billion. Adjusted EBITDA is projected to be in the range of $75 million to $85 million, with an estimated adjusted EBITDA margin of around 7%. The contribution margin is expected to be approximately 45%.

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