06:24 AM EST, 11/07/2024 (MT Newswires) -- Lyft ( LYFT ) shares soared early Thursday as the company reported a double-digit increase in third-quarter revenue and beat Wall Street estimates, while the ride-hailing company's gross bookings outlook for the ongoing three-month period indicated a sequential increase.

Gross bookings, a key indicator of the scale and impact of its overall platform, is set to come in between $4.28 billion to $4.35 billion in the fourth quarter, Lyft ( LYFT ) said late Wednesday. The range represents 15% to 17% growth on a year-over-year basis. In the September quarter, the metric advanced 16% year over year to $4.11 billion.

Adjusted earnings before interest, taxes, depreciation and amortization is expected to be in a range of $100 million to $105 million for the fourth quarter, after the third-quarter reading of $107.3 million. Adjusted EBITDA margin, which is calculated as a percentage of gross bookings, is pegged at roughly 2.3% to 2.4%, a decline from 2.6% in the September quarter.

Lyft's ( LYFT ) guidance for gross bookings and adjusted EBITDA for the fourth quarter came in ahead of Wall Street estimates of $4.23 billion and $86 million, respectively, Truist Securities said in a client note.

"Our (fourth quarter) outlook includes both the impact of the DoorDash partnership as well as the renewal of our third-party insurance agreements," Chief Financial Officer Erin Brewer said in an earnings call with analysts Wednesday, according to a Capital IQ transcript. "Our experience with large-scale partnerships listed achieving broad consumer adoption happens with time."

DoorDash and Lyft ( LYFT ) in late October announced a partnership to offer benefits on rides and delivery.

For 2024, Lyft ( LYFT ) expects adjusted EBITDA margin to come in at about 2.3%, up from its prior outlook of 2.1%. Gross bookings are estimated to rise 17% year over year, while the company sees rides growth in the mid-teens range on an annual basis.

The stock jumped about 22% before the opening bell.

Lyft's ( LYFT ) results and fourth-quarter guidance show "improving fundamentals amid more rational competitive dynamics, and show that management's strategy of improving the customer experience, the cadence of product innovation and pricing is starting to bear fruit, driving active riders and rider frequency growth," Truist said in the note.

The company reported a net loss of $0.03 per share for the third quarter, unchanged from the year-ago period and in line with the Capital IQ-polled consensus estimate on a GAAP basis. Revenue soared 32% year over year to $1.52 billion, topping Street views for $1.44 billion.

Lyft's ( LYFT ) active riders rose 9% from last year to 24.4 million during the quarter. Rides increased by 16% to 217 million.

Price: 17.66, Change: +3.26, Percent Change: +22.64