Lyft Stock Q4 Earnings Error: 60% Jump and Pullback - Benzinga

Lyft shares surge 60% after hours on strong earnings and guidance, but corrects adjusted EBITDA margin guidance, still up 16%.

Lyft Inc (NASDAQ:LYFT) saw a surge in after-hours trading on Tuesday, with shares initially jumping over 60% before correcting. The company's fourth-quarter financial results were released after the market closed, and while they were in line with analyst expectations, it was the strong guidance that really caught investors' attention.

The company projected gross bookings of $3.5 billion to $3.6 billion for the first quarter, along with adjusted EBITDA of $50 million to $55 million. Looking ahead to the full year 2024, Lyft anticipates mid-teens growth in rides and slightly faster growth in gross bookings. Initially, they also forecasted a 500 basis point expansion in adjusted EBITDA margin, but CFO Erin Brewer later clarified that the correct figure is actually 50 basis points.

Despite the correction, shares were still trading 16% higher, buoyed by the company's optimistic outlook for free cash flow. Lyft is aiming to achieve positive free cash flow for the first time in full-year 2024.

As of the time of writing, Lyft shares were up 16.4% after hours at $14.12. This news comes as a relief to investors, who were eagerly awaiting the company's earnings call.

Overall, Lyft's performance in after-hours trading demonstrates the market's reaction to the company's financial results and guidance. The initial surge, correction, and subsequent rise in share price highlight the volatility and uncertainty that can accompany earnings announcements. Investors will be keeping a close eye on Lyft as they navigate the road ahead.