Lyft shares soared as much as 60% in after-hours trading Tuesday after its earnings release accidentally added an extra zero to a key profitability metric.
Lyft’s release said one of its profit margins expanded by 500 basis points. That margin had actually only expanded by 50 basis points, the company’s chief financial officer later clarified on a call with analysts.
The company’s stock soared as much as 60% when the release came out after the close of regular trading. While Lyft shares gave up most of their initial gains, they were still up around 19% in later after-hours trading.
The goof-up overshadowed otherwise encouraging results. The company forecast better-than-expected bookings for the current quarter and said it expects to be cash-flow positive in 2024. Simply put, that means Lyft will generate more cash than it spends during the year. Companies often point to this metric to signal a path to future profits.
