A typo in Lyft’s earnings release sends stock soaring – briefly
By Samantha Delouya, CNN
(CNN) — A typo in Lyft’s fourth-quarter earnings report caused the rideshare company’s stock to surge and then dramatically reverse course on Tuesday.
In an earnings statement released after the bell, Lyft estimated its gross margin would expand by 500 basis points, or 5 percentage points. That sent the company’s stock shooting higher.
However, Lyft appeared to include an errant zero in its numbers: The company’s actual estimate is much lower, at 50 basis points or a half a percentage point.
On Lyft’s earnings call, held shortly after the release, the company’s chief financial officer, Erin Brewer, provided the correct estimate.
“This is actually a correction for the press release,” Brewer said.
Lyft’s stock surged to $19.70 at its post-earnings release high, after trading around $12 per share during the day, representing a gain of 62% from its close.
However, the stock dramatically reversed course after Brewer’s correction, trading around $14.13, for a gain of around 18% from the day’s close.
Overall, Lyft reported a 17% year-over-year increase in gross bookings for the quarter and revenue of $1.2 billion, a 4% year-over-year increase.
“We’ve entered 2024 with a lot of momentum and a clear focus on operational excellence, which positions the company to drive meaningful margin expansion and our first full-year of positive free cash flow,” Brewer said in a statement.
However, the rideshare company continues to burn through cash. On Tuesday, Lyft reported a net loss of $340.3 million for the full-year 2023 – a significant reduction in its full-year 2022 loss of $1.6 billion.
The-CNN-Wire
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