Lyft Inc. shares surged in after-hours trading today after the ride-hailing company reported higher-than-expected rider numbers despite the global COVID-19 pandemic.

For the first quarter ended March 31, Lyft reported revenue rose 23%, to $955.7 million, from the first quarter of 2019. Analysts had been predicting revenue of $893 million.

Net loss for the quarter came in at $398.1 million versus $1.1 billion a year ago. The net loss figure included $169.9 million in stock-based compensation and related payroll expenses as well as $64.7 million in costs related to the transfer of certain insurance liabilities and $58.4 million from other regulatory insurance requirements. Net loss margin in the quarter came in at 41.7% compared with 146.7% a year ago.

Adjusted net loss was a far more palatable $97.4 million versus $211.6 million a year ago. Loss per share came in at $1.31, compared with $9.02 a year ago.

Lyft’s better-than-expected numbers are thanks to a ridership increasing 3% year-over-year to 21.2 million active riders even with COVID-19 affecting the company toward the end of the quarter. Revenue per active rider increased 19%, to $45.06.

“While the COVID-19 pandemic poses a formidable challenge to our business, we are prepared to weather this crisis,” Lyft co-founder and Chief Executive Officer 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.”

Green’s reference to cuts includes Lyft laying off nearly 1,000 employees April 29 amid rapidly declining rider numbers during the coronavirus pandemic. In an earnings call, Green acknowledged that the pandemic was having a “profound impact” on its business, saying that rides were down 75% in April and still down 70% last week.

“It’s clear that macro trends will continue to negatively impact our business,” Green said on the call. “Continued social distancing, altered consumer behavior and significant corporate cost-cutting will be significant headwinds for Lyft. These are the hard truths we’re facing.”

Despite the pandemic and reduced ridership, investors like what they’re seeing at Lyft, judging that its fundamentals, including potential future ridership along with its cost-cutting measures, have set the company up to come out of COVID-19 stronger.

Lyft shares rose more than 16% in after-hours trading.

Photo: skellysf/Flickr