Lyft, the popular ridesharing company, experienced a rollercoaster ride in the stock market as its shares initially surged and then plummeted after a major earnings release error was corrected by the CFO. The company’s stock rose in extended trading following the announcement of better-than-expected earnings, only to nosedive after the finance chief acknowledged the significant mistake during an earnings call.

The corrected figures revealed that Lyft had misstated its margin expansion in the initial press release, with the actual increase being 50 basis points (0.5%) instead of the previously indicated 500 basis points (5%) for 2024. This correction led to a swift drop in the stock price, resulting in a market cap decline of over $2 billion for the company.

Despite the setback, Lyft reported positive performance indicators, including adjusted earnings per share of 18 cents, surpassing the estimated 8 cents, and a revenue of $1.22 billion, in line with analyst expectations. The company also projected first-quarter bookings of $3.5 billion to $3.6 billion, exceeding analyst estimates.

Lyft’s revenue for the year increased by 4% from the previous year, reaching $1.22 billion. The company also announced plans for slightly lower capital expenditures in 2024 compared to 2023, with expectations of generating positive Free Cash Flow for the full year for the first time.

Since its IPO in 2019, Lyft has faced challenges in profitability, particularly in competing with its larger rival, Uber. Despite the recent stock market fluctuations, CEO David Risher highlighted the company’s achievement of reaching a record number of annual riders, with a 26% increase in the number of rides and a 10% rise in active riders compared to the previous year.

Overall, Lyft’s journey in the stock market reflects the volatility and challenges faced by companies in the ever-evolving ridesharing industry, as they strive to navigate financial performance and market expectations.