What drove LYFT's earnings growth in 2024?

Lyft's earnings growth in 2024 was driven by several key factors:

1. **Increase in Gross Bookings**: Lyft experienced a significant increase in gross bookings, which grew by 17% year-over-year. This was driven by mid-teens year-over-year ride growth and a slight increase in bookings per ride.
2. **Revenue Growth**: The company's revenue also saw substantial growth, with a reported year-over-year increase of 27.7% to $1.28 billion during the first quarter of 2024. This trend was consistent throughout the year, supported by the overall growth in gross bookings.
3. **Adjusted EBITDA Improvement**: Lyft reported a positive Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for both the fourth quarter and full year of 2023. The company's focus on achieving positive Free Cash Flow for 2024 was a notable milestone.
4. **Cost Management**: Lyft effectively managed its costs, which was reflected in its financial performance. For instance, the company's Cost of Revenue was $3.337 trillion, and Operations and support expenses were $443.821 million. Despite these costs, Lyft's revenue growth outpaced the increase in costs, contributing to its earnings growth.
5. **Strategic Partnerships**: Lyft's efforts to diversify its services through strategic partnerships also contributed to its growth. For example, the company has been improving its ad-tech platform to attract and retain advertisers, which led to a nearly tripled in-app advertising revenue year-over-year in Q3.

In summary, Lyft's earnings growth in 2024 was driven by a combination of increased gross bookings, revenue growth, improved adjusted EBITDA, effective cost management, and strategic partnerships. These factors collectively contributed to the company's financial performance and profitability.