What recession fears? Lyft’s CEO doesn’t see ‘anything to worry about’
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Amid a rash of disappointing earnings and pulled guidances — and broader sense of economic uncertainty — Lyft’s (LYFT) CEO says he doesn’t see “anything to worry about” for his company.
“Our team is stronger than it’s ever been, and the consumer demand is absolutely there,” CEO David Risher said during an interview with CNBC’s (CMCSA) Squawk Box on Friday.
That came soon after Lyft reported strong earnings for the first quarter. The ride-hailing company grew gross bookings by 13% year-over-year to $4.16 billion, its 16th straight period of gross-bookings growth. Its revenue for the quarter was $1.45 billion, up 14% compared to a year ago.
Total rides for the quarter climbed by 16% to 218.4 million, beating FactSet’s (FDS) estimate of 215.1 million. Lyft also revealed that its board authorized boosting the company’s share repurchase plan to $750 million from $500 million.
Lyft’s shares climbed about 23% Friday morning.
The news is a rare bright spot for the U.S. travel industry. Uber’s (UBER) stock declined earlier this week after the company reported mixed first-quarter results.
Expedia (EXPE) posted worse-than-expected first-quarter earnings on Friday and lowered its full-year outlook, citing weak U.S. demand. Shares fell by 8% on Friday morning.
Airbnb (ABNB) issued a disappointing second-quarter revenue forecast last week, citing “broader economic uncertainties” for potential travelers and noting that fewer Canadians were traveling to the U.S.
Meanwhile, a number of airlines — including Delta (DAL), American, and Southwest (LUV) — have pulled their yearly forecasts amid economic volatility, tariff uncertainty, and warnings from air traffic controllers. “There’s no way to predict exactly where demand is going,” American Airlines (AAL) CEO Robert Isom said when the company reported its first-quarter earnings in late April.
