Tesla Inc‘s TSLA Investor Relations Vice President Martin Viecha on Tuesday responded to the recent error on ride-hailing platform Lyft Inc.’s LYFT earnings release, terming it the biggest nightmare for an investor relations professional.
What Happened: Viecha responded to the debacle and said, “Definitely the #1 nightmare of any IR person.” He added that the error and subsequent correction gave him “chills.”
Why It Matters: Lyft reported fourth-quarter financial results after the market closed on Tuesday. For FY24, Lyft initially said it expected adjusted EBITDA margin expansion of approximately 500 basis points year-over-year, but CFO Erin Brewer corrected this guidance on the conference call later. The reported figure was incorrect, Brewer said, as she issued corrected guidance for adjusted EBITDA margin expansion of 50 basis points.
The stock, which initially soared over 60% on Tuesday on the upbeat guidance, lost most of the gains after the correction. However, it continued to trade higher, possibly because the company said that it expects to generate positive free cash flow for the first time in FY24.
Price Action: Lyft shares closed up 35.1% on Wednesday, closing at $16.39, according to Benzinga Pro.
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