Lyft CEO apologizes for earnings typo, causing 60% stock surge.

The company initially forecasted 5% growth in 2024, then adjusted significantly lower.

On Tuesday, Lyft exceeded fourth-quarter profit forecasts, benefiting from increased rides to stadiums and airports, alongside substantial cost reductions.

Shares skyrocketed over 60% in after-hours trading, then dropped when Lyft’s CFO rectified a significant error in the earnings report. Initially forecasting 5% growth in 2024, the company revised it much lower to 0.5%. The stock had surged approximately 36% in 2023.

The following day, in an interview with Bloomberg, Lyft CEO David Risher admitted, “My mistake… It was a significant error, but just one zero.”

Lyft reported a growth of over 35% in rides to stadiums compared to the previous year, largely propelled by events like Taylor Swift’s Eras tour, Beyoncé’s Renaissance world tour, and various sporting events. The company highlighted enhancements in airport pickups as another factor contributing to last year’s growth, according to the CEO.

With a new CEO at the helm, the company embarked on a bold restructuring initiative last year, which involved layoffs and streamlining management layers to enhance profitability. In April, the company let go of 1,200 employees and managed to reduce costs by 12% overall.

We anticipate increasing our scale while maintaining flat costs, resulting in greater profitability,” Risher stated.

Lyft, known for its significant presence on the west coast, recently declared it would cover the shortfall if drivers earned less than 70% of riders’ payments after external fees each week. In November, Lyft and Uber agreed to a $328 million settlement with New York ride-share drivers over allegations of withholding wages and benefits.

Concerns surrounding safety, job stability, and the overarching apprehension regarding artificial intelligence have fueled a more adversarial attitude toward autonomous vehicles. Lyft, collaborating with Motional, has facilitated over 100,000 self-driving trips nationwide.

“It will require considerable time for people to embrace this technology,” remarked Risher. “We are continually engaging in discussions with major industry players to explore potential partnerships.”

Revenue for the quarter ending December 31st reached $1.22 billion, aligning with analysts’ projections. The company anticipates adjusted earnings before interest, taxes, depreciation, and amortization for the current quarter to range between $50 million and $55 million, surpassing expectations of $46.3 million.

Lyft’s adjusted core earnings in the fourth quarter reached $66.6 million, surpassing anticipated earnings of $56.2 million.