Lyft Shares Plunge 16% on Q4 Earnings Miss

Lyft Inc.'s shares plunged more than 16 percent on Wednesday, marking the company's steepest one-day drop in a year, after the ride-hailing firm reported fourth-quarter results that missed Wall Street expectations and issued a cautious outlook for the first quarter.

The San Francisco-based company disclosed its earnings on Tuesday, revealing revenue of $1.59 billion for the period ended December 31, a 3 percent increase from the previous year but well below analysts' forecasts of around $1.76 billion. Lyft attributed much of the shortfall to a one-time $168 million charge related to legal, tax, and regulatory settlements, including matters over driver classification. Despite the revenue miss, the company achieved record profitability on an adjusted basis, with gross bookings reaching $5.1 billion, up 19 percent year over year and surpassing estimates of $5.06 billion.

Ride volume, a key indicator of marketplace health, grew 11.4 percent to 243.5 million trips, falling short of expectations for 17.3 percent growth and the company's own mid- to high-teens projection. Active riders expanded by 18 percent, signaling continued user engagement, though analysts noted signs of softening...