Lyft CEO David Risher poses for a portrait in New York Metropolis, U.S., April 16, 2025.
Kylie Cooper | Reuters
Lyft shares climbed 20% Friday after the ride-sharing firm upped its share buyback plan and posted better-than-expected gross bookings.
Throughout an interview with CNBC’s “Squawk Field,” CEO David Risher mentioned that Lyft is not seeing “something to fret about” regardless of widespread issues of a slowing client amid ongoing financial uncertainty.
“Our workforce is stronger than it is ever been, and the buyer demand is completely there,” he mentioned.
Gross bookings grew 13% from a yr in the past to $4.16 billion, barely beating a $4.15 billion estimate from StreetAccount. The corporate mentioned the quarter was its sixteenth straight interval of gross bookings progress.
Rides elevated 16% to 218.4 million, topping a FactSet estimate of 215.1 million.
Lyft’s revenues grew 14% through the first quarter from a yr in the past to $1.45 billion, however fell wanting a $1.47 billion estimate from LSEG. The corporate reported web earnings of $2.57 million, or 1 cent per share. That is up from a web lack of $31.54 million, or 8 cents per share, a yr in the past.
The board additionally approved boosting Lyft’s share repurchase plan to $750 million from $500 million. The corporate mentioned it goals to make use of $500 million over the following yr.
Lyft 5-day inventory chart
Activist investor Engine Capital mentioned Friday it might halt its marketing campaign at Lyft and withdraw its nominations to the corporate’s board of administrators, citing the share buyback information.
“Following a collection of productive conversations, the Board has taken an essential first step by committing to vital share repurchases within the coming quarters,” founder and portfolio supervisor Arnaud Ajdler mentioned in a launch.
Shares of ride-sharing competitor Uber declined earlier this week after posting blended first-quarter outcomes.
Goldman Sachs upgraded shares to a purchase from a impartial score following the report, citing rides and bookings progress and “sturdy execution in a steady business backdrop.”
