Lyft stock falls 15% on disappointing fourth-quarter results, rider numbers

In after-hours trading on Tuesday, Lyft's shares plummeted by 15% after the company revealed lackluster results for the fourth quarter. The ride-sharing giant reported a modest revenue increase of 3% compared to the previous year, which failed to meet market expectations. Bookings rose 19% year-over-year, reaching $5.07 billion, aligning with analyst forecasts. However, the net income stood at approximately $2.76 billion, translating to $6.72 per share. Looking ahead, Lyft anticipates its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will fall between $120 million and $140 million for the current quarter, a figure below the $139.8 million that analysts had predicted. The company attributed some of the downward pressure on its ride prices to recent California legislation aimed at reducing insurance costs. Lyft noted that while this could eventually enhance demand, widespread adoption by consumers is expected to be gradual, leading the firm to adjust its outlook towards the latter half of the year. In terms of ridership, the fourth quarter results were underwhelming. Lyft reported 29.2 million active riders, which was shy of the anticipated 29.5 million. Additionally, the total number of rides for the quarter was 243.5 million, falling short of the FactSet estimate of 256.6 million. In response to its financial performance, Lyft's board has also authorized up to $1 billion for further share buybacks.