Lyft shares rose sharply in after-hours trading Wednesday after the ridehailing firm reported growth in first quarter revenue despite the coronavirus pandemic.
For the quarter, Lyft (LYFT) - Get Report reported $955.7 million in total revenue, an increase of 23% year over year and higher than analyst consensus estimates calling for $882 million. Lyft lost $1.32 per share last quarter versus a GAAP consensus of a loss of $1.31 per share.
Shares were up as much as 14% in the minutes following the release.
“While the COVID-19 pandemic poses a formidable challenge to our business, we are prepared to weather this crisis,” said Lyft CEO Logan Green in a press release. “We are responding to the pandemic with an aggressive cost reduction plan that will give us an even leaner expense structure and allow us to emerge stronger. Our competitive resilience and commitment to our culture and values will put Lyft in the best position to deliver on our mission of improving people’s lives with the world’s best transportation.”
With demand for rides greatly diminished amid U.S. stay-at-home orders, investors are expecting a steep drop in revenue this quarter among Lyft and larger rival Uber (UBER) - Get Report. Lyft ended the quarter with 21.2 million active riders, a year-over-year increase of 3%.
Lyft recently withdrew its full-year financial guidance due to the coronavirus pandemic, and recently laid off 982 employees, equivalent to 17% of its workforce. It ended the quarter with $2.7 billion of in cash and cash equivalents.
Along with Uber, Lyft was also jointly sued this week by California attorney general Xavier Becerra and a handful of cities, who claimed the ridehailing companies misclassified their drivers as contractors rather than employees.
Lyft shares were down 39% year to date heading into Wednesday's earnings.