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are also watching lift shares higher in pre-market trading but of course they've pulled back significantly after soaring more than 60% on a clerical error the riling company's original release stated it was expecting profit margins to expand 500 basis points before correcting this to 50 basis points during its earnings call saying this was a clerical error well for more on these results we're joined by Dan IES wedbush Securities managing director and Senior Equity analyst good to have you on Dad so in terms of your reaction to this accidental typo and the reaction that we saw in the markets here I know you you've had some Choice words about an error like this clearly it has to pass through a lot of hands a lot of eyes get to see these things before it goes out what does this signal to you look this was a Ted Striker airplane moment I mean you know if if you look at this it's a black eye for lift and even though these were good numbers and a step in the right direction this has really been a comedy show the last few years and it's just another I think credibility issue you know that we've seen again just a shock and never see anything like it 25 years does that credibility issue impact the invest worthiness of lift from your perspective Dan I mean if a pilot lands in the wrong airplane and he lands in and then all of a sudden he lands in the wrong destination do you question that team I mean that look that's the fundamental issue and then at the same point you have Uber just another Flex the muscles moment look at what's happening there I mean now obviously a buyback Li continues to be the little brother of uber and so Dan with that in mind obviously Lyft still pushing back on expanding in the way that Uber has in terms of expanding its services staying this this really this Pure Play what do you think is going to be the key then to become perhaps a bigger brother than it already is especially when you look at things like some of the Partnerships it has yeah I mean look Partnerships I mean you look at autonomous you look at some expansion into some other areas but but the fundamental problem is is that they have to expand margins obviously not 500 bips 50 bips I mean it definitely feels like they're in that direction they got to prove it this can just be a one step forward two steps back they have to execute it definitely was a step but look this is also overshadowed by almost a historical error you know in terms of what we saw so this is going to be another PR me but at for now they're going to be at the little kids table at Thanksgiving and so all of these things considered I mean we're taking a look at at some of the moves here over a more extended period of time as you kind of consider the Outlook and how consumers are continuing to engage with both of these companies is there anything that you can extrapolate from one about how how they're engaging differently with this current consumer and retaining market share as well as perhaps stealing some away yeah but I think that's I mean Uber has actually been gaining market share Peak rides gaining market share from a driver perspective profitability increasing I mean it's a clinic this has been a comeback story obviously Zuckerberg and meta comeback story for the ages but this is kind of onea you know if you look at what they've done lift confined right domestic you don't have food delivery you know so there there's just not that many levers they pull and you got to show profitability they've had a lot of you know turnaround in terms of changes to management team and now you have a you know we'll call it a clerical error for the ages and then they do still have forecasts of better than expected bookings they expect to be cash flow positive in 2024 what is the base case that's going to get them there well I think it's more profitability but you know you're starting to see some cuts that they've done payoff promotions ride sharing over has been a massive Talent we've seen that with Uber but this this can't just be the boy that cried wolf right in other words like you need to actually execute and that's been the issue here one step forward two steps back so investors you'll see obviously you know strong move today which they deserve but to really start to see long-term traction they have to execute and they're in the shadow of uber with another momes like performance and you know now a buyback they just announced yeah exactly and so Dan for Lyft I mean David richer he's been in this role for less than a year at this point how much time how much of the turnaround strategy do you think investors are are going to be continuing to kind of give that that leeway that uh you know ultimate amount of time for them to see a turnaround yeah I think by the end of 24 if not then then the alarm bells ring right and I think look he's done a good job coming out of the gate but you have a year here but also it's our view we're in the midst of a new tech bull market that we see going on through the end of 2025 so you live sitting there in a minivan going 35 miles in the right lane and then the left lane you have you know not just Uber but the rest of tech led by AI Godfather of AI Jensen Vinnie and others so I think that's the issue is that you know there's time is not endless here Dan just just quickly what does Lyft need to do to make sure that they don't miss out on that next tech bull market well I mean look they've already made a lot of strategic mistakes I think for I think right now they have to expand from food delivery they have to go after autonomous partnership strategic a lot of options on the table here but you can have Hubers Dan great to speak with you as always thanks so much for joining us this morning good to see you
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