 Lyft starts reporting new metrics – gross bookings, rides, and Adj EBITDA as percentage of Gross Bookings. Lyft reports gross bookings of $3.554bn, up 15% YoY in 3Q23. Rides grew 20% YoY to 187mn supported by a 10% Active Riders growth. Lyft said more drivers have chosen Lyft. Driver hours reached multi-year highs. “Back to school” and “back to office” rides were drivers behind the performance. The Women app also added the driver confidence to women drivers (c.15% of Lyft riding hours). In 9M23 rides exceeded 500mn and Gross Bookings were over $10bn. In 2023 rides accelerated each quarter of the year: 10% YoY in 1Q, 17% in 2Q, and 20% in 3Q. Lyft starts reporting gross bookings and rides in 3Q. The number of active riders reached 22.4mn, a surge from 20.4mn in 4Q22. The company reported revenue of $1157.6mn in 3Q, up 9.8% YoY from $1053.8mn in 3Q22. Adjusted EBITDA was $92.3mn vs adjusted EBITDA loss of $56.1mn in 3Q22. Net loss reached $12.1mn compared to net loss of $422.2mn in 3Q22. Lyft launched Lyft Media advertising in-app in 3Q, which may connect riders and drivers with advertisers. Lyft decreased the share of the cost of revenue in revenue from 59.4% in 2Q to 55.7% in 3Q23, also R&D share went down from 15.1% in 2Q to 9.4% in 3Q, G&A were down from 19.7% to 16.9%. Overall, total costs and expenses went down as a percentage of revenue from 115.5% in 2Q23 to 103.5% in 3Q23. The company reduced stock-based compensation in operating expenses to $98.5mn in 3Q23, down 55.4% YoY and 13.5% QoQ. The company promised to bring down its stock-based compensation expense to c.$550mn in 2023 and to $350mn in 2024 compared to $750mn in 2022. Earlier, the company also said it expects to deliver c. $330mn in annual savings after cutting down expenses. The company’s weighted average number of shares increased by 9.2% YoY to 389.3mn. Adjusted EBITDA reached $92mn in 3Q up from $41mn in 2Q23. The contribution margin reached 44.9% compared to 41.8% in 2Q23. Lyft is going to suspend reporting contribution metrics in 4Q. Cash, unrestricted cash and short-term investments exceeded $1.6 bn while debt was c. $0.8bn as of 30 September 2023.  We update our forecasts based on reported gross bookings and rides data. The company expects gross bookings in the range of $3.6bn-3.7bn, that translates to 13-16% YoY in 4Q23. Total rides growth will accelerate above 20% YoY in 4Q, according to the company. The total rides imply a slight decline sequentially due to bike and scooter seasonality. 4Q revenue will be mid-single-digit QoQ growth. Lyft’s Adjusted EBITDA guidance is $50-60mn for 4Q. Adj EBITDA as a percentage of revenue will be around 4%, and 1.4-1.6% for Adj EBITDA as percentage of Gross booking. The company expects a $100mn QoQ increase in the cost of revenues due to third-party insurance contracts renewals starting on 1 October. Our DCF-based 12-month target price is $14.5/share, up from $14.1/share. The company demonstrated a consistent cost-management and stock-based compensation decline. New Lyft ‘s metrics are helpful for the company’s transparency and inter-sector comparisons. We view positively the ridesharing market performance in 4Q. We reiterate our Buy rating for the stock.