Lyft, Inc. (Nasdaq:LYFT) today announced financial results for its
first quarter ended March 31, 2020.
First Quarter 2020 Financial Highlights
- Lyft reported Q1 revenue of $955.7 million versus $776.0
million in the first quarter of 2019, an increase of 23 percent
year-over-year.
- Net loss for Q1 2020 was $398.1 million versus a net loss of
$1.1 billion in the same period of 2019. Net loss for Q1 includes
$169.9 million of stock-based compensation and related payroll tax
expenses, as well as $64.7 million of costs related to the transfer
of certain legacy auto insurance liabilities and $58.4 million
related to changes to the liabilities for insurance required by
regulatory agencies attributable to historical periods. Net loss
margin for Q1 was 41.7 percent compared to 146.7 percent in the
first quarter of 2019.
- Adjusted net loss for Q1 2020 was $97.4 million versus an
adjusted net loss of $211.5 million in the first quarter of 2019.
Adjusted net loss is adjusted for amortization of intangible
assets, stock-based compensation expense, payroll tax expense
related to stock-based compensation, changes to the liabilities for
insurance required by regulatory agencies attributable to
historical periods, costs related to the transfer of certain legacy
auto insurance liabilities and expenses related to
acquisitions.
- Lyft reported Contribution for Q1 2020 of $547.4 million versus
$384.9 million in the first quarter of 2019, up 42 percent
year-over-year. Contribution Margin for Q1 increased to 57.3
percent from 49.6 percent in the first quarter of 2019.
- Adjusted EBITDA Loss for Q1 2020 was $85.2 million versus
$216.0 million in the first quarter of 2019. Adjusted EBITDA Loss
Margin for Q1 was 8.9 percent versus 27.8 percent in the first
quarter of 2019.
- Lyft reported $2.7 billion of unrestricted cash, cash
equivalents and short-term investments at the end of the first
quarter of 2020.
|
|
|
|
|
Fiscal 2019 |
Fiscal 2020 |
year-over-year |
|
Q1 |
Q1 |
change |
Active Riders (in
thousands) |
20,503 |
21,211 |
3% |
Revenue per Active Rider |
$37.86 |
$45.06 |
19% |
Revenue (in millions) |
$776.0 |
$955.7 |
23% |
|
|
|
|
“While the COVID-19 pandemic poses a formidable challenge to our
business, we are prepared to weather this crisis,” said
Logan Green, co-founder and chief executive
officer of Lyft. “We are responding to the pandemic with an
aggressive cost reduction plan that will give us an even leaner
expense structure and allow us to emerge stronger. Our competitive
resilience and commitment to our culture and values will put Lyft
in the best position to deliver on our mission of improving
people’s lives with the world’s best transportation.”
"Our first quarter results underscore the remarkable progress we
have made since our IPO, particularly on our path to profitability
as we reduced our Adjusted EBITDA loss to $85 million from $216
million in the year ago period and $131 million in the fourth
quarter of 2019,” said Brian Roberts, chief
financial officer of Lyft. “In these uncertain times, we are
building on that progress by taking decisive action to reduce costs
and further improve our operating efficiency. We expect to remove
approximately $300 million from our annual expense run-rate by the
fourth quarter of 2020 relative to our original expectations for
2020.”
For more information regarding the non-GAAP financial measures
discussed in this earnings release, please see "GAAP to non-GAAP
Reconciliations" below.
WebcastLyft will host a webcast today at 1:30
p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss these
financial results and business highlights. To listen to a live
audio webcast, please visit the Company’s Investor Relations page
at https://investor.lyft.com/. The archived webcast will be
available on the Company’s Investor Relations page shortly after
the call.
About LyftLyft was founded in 2012 and is one
of the largest transportation networks in the United States and
Canada. As the world shifts away from car ownership to
transportation-as-a-service, Lyft is at the forefront of this
massive societal change. Our transportation network brings together
rideshare, bikes, scooters, car rentals and transit all in one app.
We are singularly driven by our mission: to improve people’s lives
with the world’s best transportation.
Available Information Lyft intends to use its
filings with the Securities and Exchange Commission, press
releases, public conference calls, webcasts, the investor relations
section of its website (investor.lyft.com), its blog
(blog.lyft.com) and its Twitter account (@lyft) as a means of
disclosing material non-public information and for complying with
its disclosure obligations under Regulation FD.
Forward Looking Statements This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking
statements generally relate to future events or Lyft's future
financial or operating performance. In some cases, you can identify
forward looking statements because they contain words such as
"may," "will," "should," "expects," "plans," "anticipates,” “going
to,” "could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential" or "continue" or
the negative of these words or other similar terms or expressions
that concern Lyft's expectations, strategy, priorities, plans or
intentions. Forward-looking statements in this release include, but
are not limited to, statements regarding Lyft’s future financial
and operating performance, including the effect of the COVID-19
pandemic and related impact on Lyft’s business, Lyft’s future
profitability and Lyft’s cost reductions and expected expenses for
2020. Lyft’s expectations and beliefs regarding these matters may
not materialize, and actual results in future periods are subject
to risks and uncertainties that could cause actual results to
differ materially from those projected, including risks related to
the impact of the COVID-19 pandemic on our business and operations,
including business and government responses thereto, and risks
regarding our ability to forecast our performance due to our
limited operating history and the COVID-19 pandemic. The
forward-looking statements contained in this release are also
subject to other risks and uncertainties, including those more
fully described in Lyft's filings with the Securities and Exchange
Commission (“SEC”), including in our Annual Report on Form 10-K
that was filed with the SEC on February 28, 2020 and in our
Quarterly Report on Form 10-Q that will be filed following this
earnings release. The forward-looking statements in this release
are based on information available to Lyft as of the date hereof,
and Lyft disclaims any obligation to update any forward-looking
statements, except as required by law.
A Note About Metrics Lyft defines Active Riders
as all riders who take at least one ride during a quarter where the
Lyft Platform processes the transaction. An Active Rider is
identified by a unique phone number. If a rider has two mobile
phone numbers or changed their phone number and such rider took
rides using both phone numbers during the quarter, that person
would count as two Active Riders. If a rider has a personal and
business profile tied to the same mobile phone number, that person
would be considered a single Active Rider. If a ride has been
requested by an organization using our Concierge offering for the
benefit of a rider, we exclude this rider in the calculation of
Active Riders.
Non-GAAP Financial Measures To supplement
Lyft's financial information presented in accordance with generally
accepted accounting principles in the United States of America, or
GAAP, Lyft considers certain financial measures that are not
prepared in accordance with GAAP, including adjusted net loss,
Contribution, Contribution Margin, Adjusted EBITDA and Adjusted
EBITDA Margin. Lyft defines adjusted net loss as net loss adjusted
for amortization of intangible assets, stock-based compensation
expense, payroll tax expense related to stock-based compensation,
changes to the liabilities for insurance required by regulatory
agencies attributable to historical periods, costs related to the
transfer of certain legacy auto insurance liabilities and cost
related to acquisitions; Lyft defines Contribution as revenue less
cost of revenue, adjusted to exclude the following items from cost
of revenue: amortization of intangible assets, stock-based
compensation expense, payroll tax expense related to stock-based
compensation, changes to the liabilities for insurance required by
regulatory agencies attributable to historical periods, and costs
related to the transfer of certain legacy auto insurance
liabilities; Lyft defines Contribution Margin for a period as
Contribution for the period divided by Revenue for the same period.
Lyft defines Adjusted EBITDA as net loss adjusted to exclude
interest income, other income (expense), net, provision for income
taxes, depreciation and amortization, costs related to
acquisitions, stock-based compensation expense, payroll tax expense
related to stock-based compensation, changes to the liabilities for
insurance required by regulatory agencies attributable to
historical periods, and costs related to the transfer of certain
legacy auto insurance liabilities. Adjusted EBITDA Margin is
calculated by dividing Adjusted EBITDA for a period by revenue for
the same period.
Lyft records historical changes to liabilities for insurance
required by regulatory agencies for financial reporting purposes in
the quarter of positive or adverse development even though such
development may be related to claims that occurred in prior
periods. For example, if in the first quarter of a given year, the
cost of claims or our estimates for our cost of claims grew by $1
million for claims related to the prior fiscal year or earlier, the
expense would be recorded for GAAP purposes within the first
quarter instead of in the results of the prior period. Lyft
believes these prior period changes to insurance liabilities do not
illustrate the current period performance of Lyft’s ongoing
operations since these prior period changes relate to claims that
could potentially date back years. Lyft has limited ability to
influence the ultimate development of historical claims.
Accordingly, including the prior period changes would not
illustrate the performance of Lyft’s ongoing operations or how the
business is run or managed by Lyft. For consistency, Lyft does not
adjust the calculation of adjusted net loss, Contribution and
Adjusted EBITDA for any prior period based on any positive or
adverse development that occurs subsequent to the quarter end. Lyft
believes the adjustment to exclude the historical changes to
liabilities for insurance required by regulatory agencies from
adjusted net loss, Contribution and Adjusted EBITDA is useful to
investors by enabling them to better assess Lyft’s operating
performance in the context of current period results.
Lyft uses adjusted net loss, Contribution, Contribution Margin,
Adjusted EBITDA and Adjusted EBITDA Margin in conjunction with GAAP
measures as part of Lyft’s overall assessment of its performance,
including the preparation of Lyft’s annual operating budget and
quarterly forecasts, to evaluate the effectiveness of Lyft’s
business strategies, and to communicate with Lyft’s board of
directors concerning Lyft’s financial performance. Adjusted net
loss, Contribution and Contribution Margin are measures used by our
management to understand and evaluate our operating performance and
trends. Lyft believes Contribution and Contribution Margin are key
measures of Lyft’s ability to achieve profitability and increase it
over time. Adjusted net loss, Adjusted EBITDA and Adjusted EBITDA
Margin are key performance measures that Lyft’s management uses to
assess Lyft’s operating performance and the operating leverage in
Lyft’s business. Because Adjusted EBITDA and Adjusted EBITDA Margin
facilitate internal comparisons of our historical operating
performance on a more consistent basis, Lyft uses these measures
for business planning purposes.
Lyft’s definitions may differ from the definitions used by other
companies and therefore comparability may be limited. In addition,
other companies may not publish these or similar metrics.
Furthermore, these metrics have certain limitations in that they do
not include the impact of certain expenses that are reflected in
our consolidated statement of operations that are necessary to run
our business. Thus, adjusted net loss, Contribution, Contribution
Margin, Adjusted EBITDA and Adjusted EBITDA Margin should be
considered in addition to, not as substitutes for, or in isolation
from, measures prepared in accordance with GAAP.
Contacts |
|
Shawn Woodhull |
Adrian Durbin / Alexandra
LaManna |
investor@lyft.com |
press@lyft.com |
Lyft, Inc. Condensed
Consolidated Balance Sheets (in thousands, except for
share and per share data) (unaudited)
|
March 31, 2020 |
|
December 31, 2019 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
597,889 |
|
|
$ |
358,319 |
|
Short-term investments |
2,071,991 |
|
|
2,491,805 |
|
Prepaid expenses and other current assets |
474,874 |
|
|
397,239 |
|
Total current assets |
3,144,754 |
|
|
3,247,363 |
|
Restricted cash and cash
equivalents |
529,091 |
|
|
204,976 |
|
Restricted investments |
940,827 |
|
|
1,361,045 |
|
Other investments |
10,000 |
|
|
— |
|
Property and equipment,
net |
360,546 |
|
|
188,603 |
|
Operating lease right-of-use
assets |
307,774 |
|
|
441,258 |
|
Intangible assets, net |
88,744 |
|
|
82,919 |
|
Goodwill |
180,590 |
|
|
158,725 |
|
Other assets |
9,432 |
|
|
6,494 |
|
Total assets |
$ |
5,571,758 |
|
|
$ |
5,691,383 |
|
Liabilities,
Redeemable Convertible Preferred Stock and Stockholders’
Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
540,495 |
|
|
$ |
38,839 |
|
Insurance reserves |
975,132 |
|
|
1,378,462 |
|
Accrued and other current liabilities |
991,386 |
|
|
939,865 |
|
Operating lease liabilities — current |
44,127 |
|
|
94,199 |
|
Total current liabilities |
2,551,140 |
|
|
2,451,365 |
|
Operating lease
liabilities |
305,851 |
|
|
382,077 |
|
Long-term debt, net of current
portion |
82,141 |
|
|
— |
|
Other liabilities |
25,137 |
|
|
3,857 |
|
Total liabilities |
2,964,269 |
|
|
2,837,299 |
|
Commitments and contingencies
(Note 7) |
|
|
|
Stockholders’ equity |
|
|
|
Preferred stock, $0.00001 par value; 1,000,000,000 shares
authorized as of March 31, 2020 and December 31, 2019; no shares
issued and outstanding as of March 31, 2020 and December 31,
2019 |
— |
|
|
— |
|
Common stock, $0.00001 par value; 18,000,000,000 Class A shares
authorized as of March 31, 2020 and December 31, 2019; 297,989,705
and 293,793,151 Class A shares issued and outstanding, as of March
31, 2020 and December 31, 2019, respectively; 100,000,000 Class B
shares authorized, 8,802,629 Class B shares issued and outstanding,
as of March 31, 2020 and December 31, 2019 |
3 |
|
|
3 |
|
Additional paid-in capital |
8,554,471 |
|
|
8,398,927 |
|
Accumulated other comprehensive income (loss) |
(1,341 |
) |
|
2,725 |
|
Accumulated deficit |
(5,945,644 |
) |
|
(5,547,571 |
) |
Total stockholders’ equity |
2,607,489 |
|
|
2,854,084 |
|
Total liabilities and stockholders’ equity |
$ |
5,571,758 |
|
|
$ |
5,691,383 |
|
Lyft, Inc. Condensed
Consolidated Statements of Operations (in thousands,
except for per share data)(unaudited)
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
Revenue |
$ |
955,712 |
|
|
$ |
776,027 |
|
Costs and expenses |
|
|
|
Cost of revenue |
542,419 |
|
|
462,857 |
|
Operations and support |
133,782 |
|
|
187,235 |
|
Research and development |
258,739 |
|
|
630,960 |
|
Sales and marketing |
196,437 |
|
|
275,129 |
|
General and administrative |
238,440 |
|
|
376,736 |
|
Total costs and expenses |
1,369,817 |
|
|
1,932,917 |
|
Loss from operations |
(414,105 |
) |
|
(1,156,890 |
) |
Interest income |
21,327 |
|
|
19,654 |
|
Other income (expense),
net |
(3,665 |
) |
|
146 |
|
Loss before income taxes |
(396,443 |
) |
|
(1,137,090 |
) |
Provision for income
taxes |
1,630 |
|
|
1,383 |
|
Net loss |
$ |
(398,073 |
) |
|
$ |
(1,138,473 |
) |
Net loss per share, basic and
diluted |
$ |
(1.31 |
) |
|
$ |
(48.53 |
) |
Weighted-average number of
shares outstanding used to compute net loss per share, basic and
diluted |
304,502 |
|
|
23,459 |
|
Stock-based
compensation included in costs and expenses: |
|
|
|
Cost of revenue |
$ |
9,724 |
|
|
$ |
41,489 |
|
Operations and support |
4,133 |
|
|
51,404 |
|
Research and development |
95,548 |
|
|
506,206 |
|
Sales and marketing |
4,750 |
|
|
45,111 |
|
General and administrative |
45,823 |
|
|
215,276 |
|
|
|
|
|
|
|
Lyft, Inc. Condensed
Consolidated Statements of Cash Flows (in
thousands)(unaudited)
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(398,073 |
) |
|
$ |
(1,138,473 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities |
|
|
|
Depreciation and amortization |
35,474 |
|
|
23,135 |
|
Stock-based compensation |
159,978 |
|
|
859,486 |
|
Amortization of premium on marketable securities |
486 |
|
|
24 |
|
Accretion of discount on marketable securities |
(7,826 |
) |
|
(10,081 |
) |
Loss on disposal of assets |
3,228 |
|
|
— |
|
Other |
87 |
|
|
103 |
|
Changes in operating assets and liabilities |
|
|
|
Prepaid expenses and other assets |
(83,653 |
) |
|
(46,307 |
) |
Operating lease right-of-use assets |
20,257 |
|
|
19,518 |
|
Accounts payable |
500,004 |
|
|
1,161 |
|
Insurance reserves |
(403,330 |
) |
|
126,711 |
|
Accrued and other liabilities |
(25,338 |
) |
|
94,238 |
|
Lease liabilities |
(8,220 |
) |
|
(14,342 |
) |
Net cash used in operating activities |
(206,926 |
) |
|
(84,827 |
) |
Cash flows from
investing activities |
|
|
|
Purchases of marketable
securities |
(1,179,343 |
) |
|
(607,190 |
) |
Purchase of non-marketable
security |
(10,000 |
) |
|
— |
|
Purchases of term
deposits |
(75,000 |
) |
|
— |
|
Proceeds from sales of
marketable securities |
406,508 |
|
|
466,174 |
|
Proceeds from maturities of
marketable securities |
1,661,458 |
|
|
838,177 |
|
Proceeds from maturity of term
deposit |
30,000 |
|
|
— |
|
Purchases of property and
equipment and scooter fleet |
(34,476 |
) |
|
(25,126 |
) |
Cash paid for acquisitions,
net of cash acquired |
(12,440 |
) |
|
(1,711 |
) |
Other investing
activities |
960 |
|
|
— |
|
Net cash provided by investing activities |
787,667 |
|
|
670,324 |
|
Cash flows from
financing activities |
|
|
|
Repayment of loans |
(6,087 |
) |
|
— |
|
Proceeds from exercise of
stock options and other common stock issuances |
2,372 |
|
|
1,601 |
|
Payment of deferred offering
costs |
— |
|
|
(5,044 |
) |
Taxes paid related to net
share settlement of equity awards |
(6,762 |
) |
|
(784,724 |
) |
Principal payments on finance
lease obligations |
(6,167 |
) |
|
— |
|
Net cash used in financing activities |
(16,644 |
) |
|
(788,167 |
) |
Effect of foreign exchange on cash, cash equivalents and restricted
cash and cash equivalents |
(120 |
) |
|
102 |
|
Net increase (decrease) in cash, cash equivalents and restricted
cash and cash equivalents |
563,977 |
|
|
(202,568 |
) |
Cash, cash equivalents
and restricted cash and cash equivalents |
|
|
|
Beginning of period |
564,465 |
|
|
706,486 |
|
End of period |
$ |
1,128,442 |
|
|
$ |
503,918 |
|
Reconciliation of
cash, cash equivalents and restricted cash and cash equivalents to
the consolidated balance sheets |
|
|
|
Cash and cash equivalents |
$ |
597,889 |
|
|
$ |
329,515 |
|
Restricted cash and cash
equivalents |
529,091 |
|
|
172,506 |
|
Restricted cash, included in
prepaid expenses and other current assets |
1,462 |
|
|
1,897 |
|
Total cash, cash
equivalents and restricted cash and cash equivalents |
$ |
1,128,442 |
|
|
$ |
503,918 |
|
Lyft, Inc. Condensed
Consolidated Statements of Cash Flows (in thousands)
(unaudited)
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
Non-cash investing and
financing activities |
|
|
|
Purchases of property and equipment, and scooter fleet not yet
settled |
$ |
7,585 |
|
|
$ |
16,612 |
|
Deferred offering costs
accrued, unpaid |
— |
|
|
2,240 |
|
Right-of-use assets acquired
under operating leases |
19,861 |
|
|
38,488 |
|
Purchases of property and
equipment financed by seller |
3,464 |
|
|
— |
|
Settlement of pre-existing
right-of-use assets under operating leases in connection with
acquisition of Flexdrive |
133,088 |
|
|
— |
|
Settlement of pre-existing
lease liabilities under operating leases in connection with
acquisition of Flexdrive |
130,089 |
|
|
— |
|
Lyft, Inc. Calculations
of Key Metrics andGAAP to Non-GAAP
Reconciliations(in millions) (unaudited)
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
Contribution |
|
|
|
|
|
|
|
Revenue |
$ |
955.7 |
|
|
$ |
776.0 |
|
Less cost of revenue |
(542.4 |
) |
|
(462.9 |
) |
Adjusted to exclude the
following (as related to cost of revenue): |
|
|
|
Amortization of intangible assets |
2.8 |
|
|
5.3 |
|
Stock-based compensation expense |
9.7 |
|
|
41.5 |
|
Payroll tax expense related to stock-based compensation |
0.7 |
|
|
1.2 |
|
Changes to the liabilities for insurance required by regulatory
agencies attributable to historical periods |
58.4 |
|
|
23.8 |
|
Transfer of certain legacy auto insurance liabilities |
62.5 |
|
|
— |
|
Contribution |
$ |
547.4 |
|
|
$ |
384.9 |
|
Contribution Margin |
57.3 |
% |
|
49.6 |
% |
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
Adjusted
EBITDA |
|
|
|
|
|
|
|
Net loss |
$ |
(398.1 |
) |
|
$ |
(1,138.5 |
) |
Adjusted to exclude the
following: |
|
|
|
Interest income |
(21.3 |
) |
|
(19.7 |
) |
Other income, net |
3.7 |
|
|
(0.1 |
) |
Provision for income taxes |
1.6 |
|
|
1.4 |
|
Depreciation and amortization |
35.5 |
|
|
23.1 |
|
Stock-based compensation expense |
160.0 |
|
|
859.5 |
|
Payroll tax expense related to stock-based compensation |
9.9 |
|
|
34.5 |
|
Changes to the liabilities for insurance required by regulatory
agencies attributable to historical periods |
58.4 |
|
|
23.8 |
|
Costs related to acquisitions |
0.4 |
|
|
— |
|
Transfer of certain legacy auto insurance liabilities |
64.7 |
|
|
— |
|
Adjusted
EBITDA |
$ |
(85.2 |
) |
|
$ |
(216.0 |
) |
Adjusted EBITDA Margin |
(8.9 |
%) |
|
(27.8 |
%) |
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
Adjusted Net
Loss |
|
|
|
|
|
|
|
Net loss |
$ |
(398.1 |
) |
|
$ |
(1,138.5 |
) |
Adjusted to exclude the
following: |
|
|
|
Amortization of intangible assets |
7.3 |
|
|
9.2 |
|
Stock-based compensation expense |
160.0 |
|
|
859.5 |
|
Payroll tax expense related to stock-based compensation |
9.9 |
|
|
34.5 |
|
Changes to the liabilities for insurance required by regulatory
agencies attributable to historical periods |
58.4 |
|
|
23.8 |
|
Costs related to acquisitions |
0.4 |
|
|
— |
|
Transfer of certain legacy auto insurance liabilities |
64.7 |
|
|
— |
|
Adjusted Net
Loss |
$ |
(97.4 |
) |
|
$ |
(211.5 |
) |
Lyft (NASDAQ:LYFT)
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Lyft (NASDAQ:LYFT)
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From Apr 2023 to Apr 2024