The last few months have been shaky for Lyft. The ride-hailing giant has curbed its business, and the company has responded with layoffs. On Tuesday, however, Lyft’s first-quarter earnings didn’t fully reflect those problems.
Lyft reported its revenue was $995.7 million in the first quarter, beating analysts’ expectations of $897 million. The company posted a net loss of $398.1 million for the quarter, which was greater than expected but narrower than its losses in the previous quarter.
“While the COVID-19 pandemic poses a formidable challenge to our business, we are prepared to weather this crisis,” Lyft CEO Logan Green said in a statement. “We are responding to the pandemic with an aggressive cost reduction plan that will give us an even leaner expense structure and allow us to emerge stronger.”
The coronavirus shook the entire economy during the first quarter of the year, which ended on March 31. Most all companies saw an impact on their business as the virus took hold. But, companies in the travel and tourism industries, like Lyft, Uber, Airbnb, hotels and airlines, experienced a precipitous drop in revenue. Lyft saw its stock price drop 73% from $53 in mid-February to $14 by mid-March.