Lyft said first-quarter ride volume missed analyst expectations after severe winter storms in the U.S. Northeast curtailed demand, yet the ride-hailing firm nevertheless delivered stronger-than-expected gross bookings and revenue and issued second-quarter guidance that topped consensus.
Rides in the quarter totaled 236.9 million, under Visible Alpha estimates of 242 million. The company attributed the shortfall in part to weather, estimating the storms reduced volume by about 3 million rides during the period. Lyft Chief Financial Officer Erin Brewer said slightly more than half of that weather-related decline occurred in the bikes and scooters segment, with the remainder affecting rideshare trips.
Despite the volume headwind, Lyft reported gross bookings of $4.95 billion in the first quarter, a 19% increase year-over-year and marginally ahead of the LSEG consensus estimate of $4.92 billion. Revenue rose 14% to $1.65 billion, topping the $1.63 billion estimate tracked by LSEG.
Management pointed to a shifting mix toward "higher value rides" and to contributions from businesses beyond core rideshare as key factors supporting topline growth. Specifically, Lyft cited European taxi app FreeNow and chauffeur service TBR Global Chauffeuring as contributors to revenue expansion even as overall ride counts lagged expectations.
On the profitability front, adjusted earnings before interest, taxes, depreciation and amortization increased 25% to $132.8 million in the quarter. Net income rose to $14.2 million, or 4 cents per share, from $2.6 million, or 1 cent per share, a year earlier, reflecting an improved bottom-line performance.
For the second quarter, Lyft projected gross bookings between $5.30 billion and $5.43 billion, which compares with the analyst average estimate of $5.32 billion. The company also forecast adjusted core earnings of $160 million to $180 million, versus consensus around $167 million.
Lyft is also expanding its technology and service footprint. The company said it is deepening autonomous vehicle operations with partners that include Baidu and Waymo, and plans to open a Flexdrive autonomous vehicle depot in Nashville, Tennessee, this fall.
Market reaction came after the report, with shares of the San Francisco-based company trading down about 3% in after-hours trading.
Lyft's results arrived amid a broader industry backdrop in which a larger rival, Uber, had also issued a stronger-than-expected second-quarter outlook despite facing pressure from geopolitical tensions in the Middle East, citing resilient ride-hailing demand.
Analysis summary - Lyft's first-quarter numbers show a divergence between unit volume and revenue/margin performance. While ride counts were dented by weather, the company's ability to grow gross bookings and revenue points to improving unit economics driven by a higher mix of premium rides and expanding non-ride businesses. Profitability measures improved sequentially and year-over-year, and management's forward guidance signals confidence in demand recovery for the second quarter.