Lyft shares climbed 20% Friday after the ride-sharing company upped its share buyback plan and posted better-than-expected gross bookings.
During an interview with CNBC’s “Squawk Box,” CEO David Risher said that Lyft isn’t seeing “anything to worry about” despite widespread concerns of a slowing consumer amid ongoing economic uncertainty.
“Our team is stronger than it’s ever been, and the consumer demand is absolutely there,” he said.
Gross bookings grew 13% from a year ago to $4.16 billion, slightly beating a $4.15 billion estimate from StreetAccount. The company said the quarter was its 16th straight period of gross bookings growth.
Rides increased 16% to 218.4 million, topping a FactSet estimate of 215.1 million.
Lyft’s revenues grew 14% during the first quarter from a year ago to $1.45 billion, but fell short of a $1.47 billion estimate from LSEG. The company reported net income of $2.57 million, or 1 cent per share. That’s up from a net loss of $31.54 million, or 8 cents per share, a year ago.
The board also authorized boosting Lyft’s share repurchase plan to $750 million from $500 million. The company said it aims to use $500 million over the next year.
Activist investor Engine Capital said Friday it would halt its campaign at Lyft and withdraw its nominations to the company’s board of directors, citing the share buyback news.
“Following a series of productive conversations, the Board has taken an important first step by committing to significant share repurchases in the coming quarters,” founder and portfolio manager Arnaud Ajdler said in a release.
Shares of ride-sharing competitor Uber declined earlier this week after posting mixed first-quarter results.
Goldman Sachs upgraded shares to a buy from a neutral rating following the report, citing rides and bookings growth and “strong execution in a stable industry backdrop.”
