Last night’s Lyft $LYFT earnings included an extra zero where there wasn’t one and the market reaction was wild! Turns out there’s a big difference between 500 basis points and 50!

What are basis points? How do they differ from percentage points? We help you understand margins, and why thinking in basis points is an upgrade over percentages.

(Shares of Lyft $LYFT soared more than 60 per cent on Tuesday before falling back sharply, after an error in the ride-hailing company’s quarterly earnings release exaggerated the outlook for margin growth in 2024 by 10 times. The company reported that it would improve adjusted earnings margins by 500 basis points, or 5 percentage points, in 2024 compared with the previous year)

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E14 (Bonus): Lyft's earnings & what the heck are basis points anyway?