Lyft CEO says no indicators of fear with the patron

Lyft shares climbed 28% Friday after the ride-sharing firm upped its share buyback plan and posted better-than-expected gross bookings.

The inventory notched its finest day since February 2024.

Throughout an interview with CNBC’s “Squawk Field,” CEO David Risher stated that Lyft is not seeing “something to fret about” regardless of widespread considerations of a slowing client amid ongoing financial uncertainty.

“Our crew is stronger than it is ever been, and the patron demand is completely there,” he stated.

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 stated 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% in the course of 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 revenue 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 licensed boosting Lyft’s share repurchase plan to $750 million from $500 million. The corporate stated it goals to make use of $500 million over the subsequent yr.

Activist investor Engine Capital stated Friday it will halt its marketing campaign at Lyft and withdraw its nominations to the corporate’s board of administrators, citing the share buyback information.

“Following a sequence of productive conversations, the Board has taken an necessary first step by committing to important share repurchases within the coming quarters,” founder and portfolio supervisor Arnaud Ajdler stated 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 ranking following the report, citing rides and bookings progress and “robust execution in a steady business backdrop.”