- Lyft Inc. (LYFT) stock surged 22% to $15.84 after reporting $4.16 billion in first-quarter gross bookings, up 13% and above the $4.15 billion forecast, with rides increasing 16% to 218.4 million, beating expectations of 215.1 million.
- The company expanded its share repurchase program to $750 million, planning to use $500 million within 12 months, including $200 million in the next three months, while projecting 10% to 14% gross bookings growth for the second quarter.
- CEO David Risher dismissed economic concerns on CNBC, citing strong consumer demand and team performance, as Goldman Sachs (GS) upgraded Lyft to a buy rating for its robust growth and execution.
Lyft Inc. (LYFT) shares surged 22% to $15.84 in early trading on Friday, driven by an expanded $750 million share repurchase program and robust first-quarter gross bookings of $4.16 billion, which rose 13% year-over-year and edged past analyst expectations of $4.15 billion. The ride-sharing company reported a 16% increase in rides to 218.4 million, surpassing forecasts of 215.1 million, and achieved a 14% revenue jump to $1.45 billion, though it fell slightly short of the $1.47 billion anticipated by analysts. CEO David Risher, speaking on CNBC’s “Squawk Box,” expressed confidence in sustained consumer demand, stating the company sees “nothing to worry about” despite broader economic concerns, attributing Lyft’s performance to a strengthened team and operational momentum.
The company’s board authorized a bolstered share buyback plan, with $500 million allocated for repurchasing shares over the next 12 months, including $200 million within the next three months, signaling strong confidence in Lyft’s financial outlook. Lyft also projected second-quarter gross bookings growth of 10% to 14%, reinforcing optimism about its trajectory in a competitive ride-hailing market. Goldman Sachs (GS) upgraded Lyft’s stock to a ‘Buy’ from ‘Neutral,’ citing its rides and bookings growth and “strong execution in a stable industry backdrop,” which further fueled investor enthusiasm.
Lyft’s first quarter results highlight its ability to capitalize on operational efficiencies and growing demand for ride-sharing services, even as economic uncertainty looms. The company’s performance stands out in a sector where consumer spending patterns are closely scrutinized, with Lyft’s ride growth reflecting resilience in urban mobility and gig economy trends. The stock’s 22% spike following the earnings report underscores market approval of Lyft’s strategic moves, particularly the aggressive share repurchase program. As Lyft continues to navigate competition and macroeconomic challenges, its focus on profitability and shareholder value positions it as a standout in the ride-hailing industry.
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