Lyft, Inc. (NASDAQ:LYFT)'s second-quarter results were strong in several areas, but they also showed why investors should not look at the company's growth numbers in isolation. Gross bookings reached a record $5.50 billion, increasing 23% from a year earlier. Revenue rose 16% to $1.84 billion and came in above expectations.
But Lyft is also spending considerably more to keep that growth going. That is where the story gets a little more complicated. The strongest part of the quarter was rider growth.
Lyft, Inc. (NASDAQ:LYFT) had 30.5 million active riders, up 17% year over year. It was the seventh consecutive quarter in which the company posted double-digit rider growth. Total rides also increased, reaching 262.4 million.
For a rideshare company, that kind of growth matters. A larger rider base can create a stronger marketplace and give Lyft more opportunities to increase revenue over time. Lyft is also becoming more than just a North American rideshare business.
Freenow gives it a presence in Europe, while Lyft Urban Solutions adds another part to the business. Partnerships with DoorDash, United Airlines, and public transit systems are helping bring more people into the Lyft ecosystem. There is another encouraging detail in the numbers.
Lyft's implied take rate remained around 33.5%. In simple terms, the company is still keeping a similar share of each dollar spent on its platform. That suggests the increase in bookings is not simply the result of giving riders deep discounts.
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