Lyft CEO says no indicators of fear with the buyer

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 mentioned that Lyft is not seeing “something to fret about” regardless of widespread issues of a slowing client amid ongoing financial uncertainty.

“Our group is stronger than it is ever been, and the buyer demand is completely there,” he mentioned.

Gross bookings grew 13% from a 12 months 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 development.

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 12 months in the past to $1.45 billion, however fell in need of a $1.47 billion estimate from LSEG. The corporate reported internet revenue of $2.57 million, or 1 cent per share. That is up from a internet lack of $31.54 million, or 8 cents per share, a 12 months in the past.

The board additionally licensed 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 12 months.

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 vital 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 ranking following the report, citing rides and bookings development and “sturdy execution in a secure business backdrop.”