Lyft (NASDAQ: LYFT) stock surged over 7% in intraday trading Wednesday after the company reported better-than-expected first-quarter earnings and sales. It also provided an upbeat demand forecast for the current quarter.
Lyft (NASDAQ: LYFT) recently released its first-quarter financial results, beating analyst expectations with adjusted earnings of 15 cents per share on sales of $1.28 billion. Analysts had projected earnings of 6 cents per share on sales of $1.16 billion, according to FactSet. This performance represents a notable improvement compared to the same period a year earlier when Lyft reported adjusted earnings of 8 cents per share on sales of $1 billion.
Looking ahead, Lyft guided for the current quarter, forecasting gross bookings between $4 billion and $4.1 billion. Analysts had anticipated gross bookings of $3.98 billion for the June-ending period, according to FactSet.
Lyft reported gross bookings of $3.7 billion for the first quarter, marking a 21% increase year-over-year and surpassing analyst consensus of $3.6 billion, as reported by FactSet. Revenue growth also accelerated to 28% year-over-year, a substantial improvement compared to the 4% growth recorded in the fourth quarter of 2023.
The Lyft app facilitated 188 million rides during the first quarter, representing a 23% year-over-year increase. Active riders also saw a notable uptick, rising 12% to 21.9 million.
Despite facing competition from its larger rival Uber (UBER), Lyft’s leadership remained focused on cost reduction and profitability. Chief Financial Officer Erin Brewer highlighted in the company’s press release that Lyft has achieved positive free cash flow for two consecutive quarters.
On a generally accepted accounting principles (GAAP) basis, Lyft reported a loss of 8 cents per share in the first quarter, a significant improvement from a loss of 50 cents per share for the same period a year earlier.
Lyft (NASDAQ: LYFT) Stock Movement
LYFT stock jumped 7.11% to close at $17.78 on Wednesday. Its value increased by 12.11% this week. Trading activity has witnessed 38,908,395 (38.90 million) shares changing hands, well above the average daily volume of 18.71 million.
