You can be on Entrepreneur’s cover!

Lyft Stock Skyrockets Over 60% — Because of a Typo in an Earnings Release The company issued a correction that there was a mistake in its printed 2023 earnings release.

By Emily Rella

entrepreneur daily

A one-character typo is usually not a big deal, but when it comes to reporting financials, it can have serious implications on the market and the company's stock valuation.

Such was the case for rideshare giant Lyft, which reported in a 2023 earnings release on Wednesday that the company expected its gross margin to expand by 500 basis points or 5 percentage points.

However, the report should have said 50 basis points or 0.5 percentage points.

Related: Lyft Becomes First Rideshare Company to Implement Minimum Pay For Drivers

The errant "0" sent Lyft's stock soaring over 62% before the company clarified on an earnings call shortly after the release that there was an error in the report.

"This is actually a correction from the press release," said Lyft Chief Financial Officer Erin Brewer on the call, after being asked to clarify the EBITDA margin expansion estimate.

Brewer said 50 basis points earlier on the call, though the slide for the presentation said 500 basis points. "In my prepared remarks, I referenced 50 basis points of margin expansion," she said.

Almost immediately following Brewer's comments, Lyft's stock shot back down, hovering around a 17% increase from the prior day's market close. The company also issued a corrected release.

The rideshare company did report a total of $13.8 billion in bookings for 2023 (a 14% year-over-year increase), with gross bookings in Q4 2023 resulting in a 17% year-over-year increase of $3.7 billion.

Total revenue for the company in 2023 was up 8% from the same time last year at $4.4 billion though the company did still suffer a yearly net loss of $340.3 million.

"Lyft's outstanding Q4 performance demonstrates our team's incredible work to build a solid foundation for profitable growth," Brewer said in the company's release. "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."

Related: Lyft Will Now Charge Late Fees For Tardy Passengers

The company made history earlier this month after it instated a minimum pay standard, guaranteeing that drivers will now take home a minimum of 70% of what riders pay regardless of fees or extraneous costs.

"We think hopefully it will get more drivers driving for Lyft, but also just make the whole sector stronger," Lyft CEO David Risher told Reuters earlier this month. "We have more drivers now than we've had, I think, since the middle of 2019. It's strong and I tell you what, it's getting even stronger."

Just before noon EST on Wednesday, Lyft's stock was back up 31% in a 24-hour period.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Resumes & Interviewing

Build a Better Resume with This $35 Subscription

AI Resume Builder promises to help you apply to jobs twice as fast.

Side Hustle

He Took His Side Hustle Full-Time After Being Laid Off From Meta in 2023 — Now He Earns About $200,000 a Year: 'Sweet, Sweet Irony'

When Scott Goodfriend moved from Los Angeles to New York City, he became "obsessed" with the city's culinary offerings — and saw a business opportunity.


I Got Over 225,000 Views in Just 3 Months With Short-Form Video — Here's Why It's the New Era of Marketing

Thanks to our new short-form video content strategy, we've amassed over 225,000 video views in just three months. Learn how to increase brand awareness through short-form video content.

Business News

Samsung Makes 6 Day Workweeks Mandatory for Executives as the Company Enters 'Emergency Mode'

Samsung said its performance "fell short of expectations" last year. Now executives are required to work weekends.


6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.


You Won't Have a Strong Leadership Presence Until You Master These 5 Attributes

If you are a poor leader internally, you will be a poor leader externally.