Shares in Lyft Inc. plunged more than 17% today after the ride-hailing company fell short on both second-quarter bookings and third-quarter forecast, despite logging its first-ever profitable quarter and beating revenue and earnings targets.

For the quarter ended June 30, Lyft reported adjusted earnings per share of one cent, up from a loss of 30 cents per share in the same quarter a year ago, on revenue of $1.436 billion, up 41% year-over-year. Both were beats, as analysts had expected a loss of three cents per share on revenue of $1.39 billion.

Net income in the quarter came to $5 million, quite the turnaround from a loss of $114.3 million in the second quarter of 2023. The figure notably included $89.9 million in stock-based compensation and related payroll expenses — so without those expenses, the income figure would have been significantly higher.

Lyft saw a record-high active rider figure of 23.7 million in the quarter, up 10% year-over-year and, in another record for the company, 205 million rides, up 15% year-over-year. Gross bookings rose 17%, to $4.02 billion, short of an expected $4.07 billion.

Net cash flow from operating activities was $276.2 million in the quarter, compared with negative $70 million a year ago. Indicating its improving financial position, net cash flow from operating activities for Lyft sits at $478.2 million over the last 12 months.

Business highlights in the quarter included Lyft doubling the number of rides it provides in Canada compared to the same quarter of last year, with Toronto now the company’s eighth-largest market. Lyft also saw an uptick over Pride Month, with rides up 17% in June in cities with Pride celebrations.

“For over a year you’ve heard us say that customer obsession drives profitable growth,” Chief Executive David Risher said in the company’s earnings release. “In Q2 we delivered and drivers and riders are choosing Lyft in record numbers.”

For its fiscal third quarter — and the main reason its stock fell — Lyft said it expects gross bookings of between $4 billion and $4.1 billion, not much movement compared with its second quarter and below the $4.15 billion expected by analysts. Though profitability is a good thing, investors appear to be concerned that its growth rates may have stalled given the weaker-than-expected forecast.

Photo: Lyft