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

Core Insights - Lyft's CEO David Risher emphasized strong consumer demand and record profits, generating over $1 billion in cash, attributing this success to a customer-focused strategy [1] - Despite the positive outlook, Lyft's shares dropped 15% due to disappointing ridership numbers [1] Financial Performance - Lyft reported 29.2 million active riders for the quarter, below the expected 29.5 million, and rides totaled 243.5 million, missing estimates of 256.6 million [2] - The company's fourth-quarter revenue was adjusted to $1.76 billion, aligning with expectations, while adjusted earnings per share were 16 cents, surpassing the expected 12 cents [4] Future Growth Drivers - Risher highlighted the introduction of teen accounts and the acquisition of European taxi app FreeNow as key growth initiatives [2] - Lyft's first-quarter guidance is soft, with expected bookings between $4.86 billion and $5 billion, compared to a FactSet estimate of $4.93 billion, and projected adjusted EBITDA of $120 million to $140 million, against a consensus of $139.8 million [3] Strategic Partnerships and Innovations - Lyft is positioned well with partnerships with Waymo and Baidu, planning to introduce self-driving cars in locations like Nashville by 2026 [4] - The company noted a 13% to 15% volume growth during the Super Bowl, with improved pickup times and lower surge pricing compared to competitors [5]