Lyft Expands Stock Buyback Plan and Boosts First-Quarter Earnings

Published 2 days agoLYFT

Lyft Expands Stock Buyback Plan and Boosts First-Quarter Earnings

Lyft has announced an expansion of its stock buyback program to $750 million, with plans to repurchase $500 million worth of shares in the next 12 months. This decision follows a push from activist investor Engine Capital, calling for strategic alternatives to bolster the company's market stance. Reuters reported that this move aims to reassure investors and potentially explore avenues for a sale or restructuring.

In terms of financial performance, Lyft exceeded expectations in the first quarter with earnings per share reaching 24 cents, above the forecasted 19 cents. However, revenue came in slightly under projections at $1.45 billion against the anticipated $1.47 billion. Lyft is also targeting growth in smaller, more car-dependent markets, with notable progress in places like Indianapolis where ride requests increased by 37% during the first quarter.

Looking ahead, Lyft has provided guidance for the second quarter, projecting gross bookings between $4.41 billion and $4.57 billion, with adjusted EBITDA expected in the range of $115 million to $130 million. As part of its growth strategy, the company is emphasizing its focus on smaller markets, aiming to leverage these areas for sustained development and financial stability.

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