Lyft’s fourth-quarter earnings release caused quite a stir due to a significant typo, overshadowing an otherwise solid performance by the ride-hailing company. Analysts have taken notice and are becoming more optimistic about Lyft’s future.
Despite the confusion caused by the typo, Lyft reported a net loss of $26 million on revenue of $1.2 billion, surpassing analysts’ expectations. This positive news led to a 20% increase in Lyft’s stock during premarket trading on Wednesday.
One impressive highlight from the earnings report was the strong performance in gross bookings. This metric, which measures the total value of customer transactions minus tips, exceeded $3.7 billion in the fourth quarter, outperforming consensus forecasts. Moreover, Lyft’s full-year gross bookings for 2023 reached $13.8 billion, a 14% increase from the previous year.
The company attributed this growth to high-attendance stadium events such as Taylor Swift and Beyoncé concerts, the U.S. Open, and football games. These events contributed to a 35% year-over-year increase in rides to stadiums.
Despite the initial confusion caused by the earnings typo, shareholders should take note of Lyft’s robust performance in gross bookings. In fact, analysts are considering raising their outlook for the stock.
Although analysts currently rate Lyft as a Hold, they have started increasing their price targets following the earnings release. Eight brokers have already raised their targets, suggesting there may be more positive analyst action to come.
Lyft’s strong quarterly performance, bolstered by its success in gross bookings and attendance at major events, deserves recognition separate from the earnings typo debacle. Analysts are now considering taking a closer look at Lyft’s potential, and shareholders may have Taylor Swift and Beyoncé to thank for this positive momentum.