Ride-sharing company Lyft (NASDAQ:LYFT) announced the appointment of Erin Brewer as its new CFO, replacing Elaine Paul, who is leaving the company on May 19. Chief accounting officer Lisa Blackwood-Kapral will serve as the interim CFO until Brewer assumes her position effective July 10. The move comes as Lyft issued a weak Q2 guidance recently and is struggling to compete with larger peer Uber (NYSE:UBER).
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Paul, who has been Lyft’s CFO since January 2022, will serve as an advisor until November 30, 2023.
Brewer has previously served as the managing director of enterprise finance at Charles Schwab & Co. (SCHW) for almost two and a half years and the head of strategy and finance at software firm Atlassian (TEAM) between September 2018 and April 2020. She also worked in several leadership roles in the 13 years spent at McKesson (MCK).
Commenting on Brewer’s appointment, Lyft CEO David Risher said, “She’s led high-growth businesses; she knows how to operate efficiently at scale; and she puts customers at the center of her work.”
Lyft has experienced notable C-suite overhaul this year. Lyft co-founders Logan Green and John Zimmer announced in March that they would step back from their management roles. Risher, a former Amazon (AMZN) executive, replaced Green as the new CEO of the company in April. Under Risher’s leadership, the company announced 26% layoffs as part of its cost reduction efforts.
In the press release announcing Brewer’s appointment, Lyft reaffirmed its previously announced Q2 outlook. The company expects Q2 revenue in the range of $1 billion to $1.02 billion, reflecting a year-over-year growth of 1% to 3%. Revenue increased 14% to $1 billion in the first quarter.
Is Lyft a Good Stock to Buy?
Wall Street is sidelined on Lyft stock, with a Hold consensus rating based on five Buys, 17 Holds, and one Sell. The average price target of $11.43 implies nearly 39% upside. Shares have plunged more than 25% so far in 2023.