(Reuters) - Lyft ( LYFT ) is targeting 15% annual growth in gross bookings through 2027, the ride-hailing firm said at its inaugural investor day, adding that it expects gross bookings from its nascent advertising business to increase eight-fold in the same period.

The company's shares were up more than 4% before the bell on Thursday.

The forecast signals Lyft ( LYFT ) could maintain its position in the North American ride-sharing market, where it lags Uber ( UBER ), even as both the companies seek to diversify their revenue streams through offerings such as advertising and user subscriptions.

Lyft ( LYFT ) expects $400 million in gross bookings from its advertising business in 2027, Zach Greenberger, executive vice president of Lyft's ( LYFT ) Partnership Ecosystem, said, compared with $50 million forecast this year.

The company, like Uber ( UBER ), allows advertisements within its app, as well as on tablets in vehicles and digital screens on top of cars. Lyft ( LYFT ) launched the business in 2022 and reported a 250% growth in related revenue in the quarter ending March.

"Advertisers are looking for more targeted and measurable solutions," Greenberger said, adding that the retail and hospitality industries are using Lyft's ( LYFT ) advertising platforms.

Uber ( UBER ), with a larger global presence and more diversified business lines including food ordering and freight services, is targeting $1 billion in annual ad revenue.

Lyft ( LYFT ) is targeting gross bookings compound annual growth rate of about 15% between 2024 and 2027 for the full company, and an adjusted core profit margin of about 4% in 2027.

For 2023, the company reported 14% growth in gross bookings, or the total dollar value of transactions billed to ride-share riders including taxes, tolls and fees, but excluding tips to drivers. Lyft's ( LYFT ) adjusted core profit margin was 1.6%.