Lyft CEO Risher says consumer is showing 'no softness' as stock slides 15% after earnings

David Risher, the CEO of Lyft, addressed the company's recent fourth-quarter performance during an interview with CNBC, asserting that consumer demand appears robust despite a significant 15% drop in the company’s stock. Risher emphasized, "We have record profits, generated over a billion dollars in cash, and that's a result of our customer-obsessed strategy, which just keeps working and growing the company." However, the market reacted negatively to Lyft's ridership figures, which fell short of Wall Street’s expectations. The ride-sharing platform reported 29.2 million active riders for the quarter, slightly below the anticipated 29.5 million. Additionally, the total number of rides, at 243.5 million, did not meet analysts' estimates of 256.6 million. Looking ahead, Risher pointed to Lyft’s introduction of teen accounts and its acquisition of the European taxi service FreeNow as key components for future growth. The launch of teen accounts marks a strategic move for Lyft, occurring more than two years after a similar initiative by competitor Uber. As for the first quarter, Lyft provided cautious guidance, forecasting bookings between $4.86 billion and $5 billion, which is lower than the FactSet estimate of $4.93 billion. The company also projected an adjusted EBITDA in the range of $120 million to $140 million, slightly below the consensus expectation of $139.8 million. In light of the evolving landscape of autonomous vehicles, Risher expressed confidence in Lyft's partnerships with companies like Waymo and Baidu, planning to introduce self-driving technology in cities like Nashville by 2026. Despite the stock's downturn, Lyft's fourth-quarter revenue met expectations, reporting an adjusted total of $1.76 billion and earnings per share of 16 cents, surpassing the anticipated 12 cents. Risher also highlighted a notable increase in demand during the Super Bowl, with ride volume growing by 13 to 15% year over year, accompanied by faster pickups and lower surge pricing compared to competitors.