In an absolutely crazy turn of events, a typo in an earnings report caused Lyft shares to skyrocket nearly 70 percent after Tuesday's closing bell. There was an extra zero in the report that suggested a 5% margin increase in 2024, instead of a 0.5% margin. This sent investors into a tizzy, as the company has long struggled to turn a profit.
The error was even present in the Lyft slideshow, which was and an accompanying press release. The company quickly corrected the error, calling it a clerical error, but the stock surge had already begun. Lyft CFO Erin Brewer addressed the issue during an earnings call last night, causing the stock to reverse course. It's worth noting that the earnings report is still good news for Lyft even without this error, so the stock price saw a more stable increase of around 35%.
Now for the blame game. David Risher, CEO of Lyft to take responsibility for the mistake, saying “look, it was a bad mistake, and it’s my fault.” Risher added that it was “super frustrating” for everyone on the team and said he could see a colleague's “jaw drop” when they discovered the problem.
The good news? Even with this adjustment, it's the best day for Lyft since the company was founded. Yesterday's earnings report showed revenue of $1.22 billion for the quarter, an increase of 4% from last year. Bookings increased 17 percent for the quarter, representing $3.7 billion. Risher called it a “great neighborhood.”
A misplaced zero on a spreadsheet isn't the ride-hailing giant's only concern. Thousands of Lyft and Uber drivers to demand better wages and safer working conditions. The strikers are mainly grouped around ten major American airports, although they are only expected to last a few hours.
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