Live

Watch CBSN Live

Lyft first-quarter revenues beat Wall Street expectations

Lyft IPO lifted by service's popularity
Lyft IPO lifted by service's popularity 01:14

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.

View CBS News In
CBS News App Open
Chrome Safari Continue