Live

Watch CBSN Live

Lyft first-quarter revenues beat Wall Street expectations

Lyft IPO lifted by service's popularity

Lyft's results for its first-ever quarter as a publicly traded company are in. Revenues beat Wall Street expectations, but high spending from the tech company led to a loss that disappointed many shareholders. The share price spiked immediately after the earnings release, then tumbled into negative territory but has since rebounded again.

Lyft reported that revenue increased to $776 million, beating the Wall Street consensus of about $740 million. It also raised the number of riders to about 20.5 million, claiming about 39 percent of the ride-sharing market in the U.S. 

However, the company, which has never been profitable, racked up a net loss of about $212 million as it continues to burn cash to compete for market share with arch rival Uber. Still, Lyft also beat Wall Street expectations for a net loss of about $279 million.  

After initial investor excitement in March led to a stellar debut on the Nasdaq, Lyft stock tumbled and has since fallen more than 20 percent, chopping nearly $13 off its initial share price. But the company continues to attract investors who sense potential long-term profitability for Lyft despite its volatility.

The stock closed regular trading on Tuesday down 2 percent, or $1.23, at $59.34. It was last up around 2.5 percent in after-hours trading, at $60.75.

"You have to be incredibly patient with it and be prepared for some bumps along the way," said Steven Fox, analyst at Cross Research.