First quarter revenue of $609.0 million grew 7%
quarter-over-quarter Strong Q1 results reflect ongoing recovery
& exceeded outlook
Lyft, Inc. (Nasdaq:LYFT) today announced financial results for
its first quarter ended March 31, 2021.
“The improvements we’ve made over the last year are paying off -
we’ve built a much stronger business. As the recovery continues, we
are confident that we will be able to deliver strong financial
results” said Logan Green, co-founder and chief executive
officer of Lyft. “We expect to build a significantly larger company
by attacking the trillion dollar plus market opportunity in front
of us.”
“We had an exceptionally strong Q1 as more people started moving
again. Our results meaningfully exceeded our outlook driven by
elevated demand across our network,” said Brian Roberts,
chief financial officer of Lyft.
“With the pending sale of our Level 5 self-driving division,
Lyft is set up to win the transition to autonomous through our
hybrid network of human drivers and AVs, advanced marketplace tech,
and leading fleet management capabilities,” said John
Zimmer, co-founder and president of Lyft.
First Quarter 2021 Financial Highlights
- Lyft reported Q1 revenue of $609.0 million versus $955.7
million in the first quarter of 2020, a decrease of 36 percent
year-over-year, but an increase of 7 percent from $569.9 million in
the fourth quarter of 2020.
- Net loss for Q1 2021 was $427.3 million versus a net loss of
$398.1 million in the same period of 2020. Net loss for Q1 includes
$180.7 million of stock-based compensation and related payroll tax
expenses and $128.0 million related to changes to the liabilities
for insurance required by regulatory agencies attributable to
historical periods. Net loss margin for Q1 was 70.2 percent
compared to 41.7 percent in the first quarter of 2020.
- Adjusted net loss for Q1 2021 was $114.1 million versus an
adjusted net loss of $97.4 million in the first quarter of
2020.
- Lyft reported Contribution for Q1 2021 of $337.3 million versus
$547.4 million in the first quarter of 2020, down 38 percent
year-over-year but up 7 percent from $316.0 million in Q4 2020.
Contribution Margin for Q1 2021 was 55.4 percent, which was down by
1.9 percentage points year-over-year but down by just 10 basis
points quarter-over-quarter. Contribution Margin for Q1 2021
exceeded the Company's outlook of 51 to 51.5 percent1.
- Adjusted EBITDA loss for Q1 2021 was $73.0 million, an
improvement of $12.2 million compared to the first quarter of 2020
and an improvement of $77.0 million compared to the fourth quarter
of 2020. The Adjusted EBITDA loss for Q1 2021 was approximately $62
million better than the Company's most recent outlook for its
Adjusted EBITDA loss2. Adjusted EBITDA loss margin for Q1 2021 was
12.0 percent versus 8.9 percent in the first quarter of 2020 and
versus 26.3 percent in the fourth quarter of 2020.
- Lyft reported $2.2 billion of unrestricted cash, cash
equivalents and short-term investments at the end of the first
quarter of 2021.
1 Company outlook for Contribution Margin for the first quarter
of 2021 as reported during the fourth quarter 2020 Financial
Results Earnings Call on February 9, 2021. 2 Company outlook for
Adjusted EBITDA loss for the first quarter of 2021 was $135 million
as reported on Form 8-K filed March 2, 2021.
Active Riders
Revenue per Active
Rider
2021
2020
YoY Growth Rate
2021
2020
YoY Growth Rate
(in thousands, except for dollar
amounts and percentages)
Three Months Ended March 31
13,494
21,211
(36.4)%
$45.13
$45.06
0.2%
Three Months Ended June 30
8,688
$39.06
Three Months Ended September 30
12,513
$39.94
Three Months Ended December 31
12,552
$45.40
Webcast Lyft 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 Lyft Lyft 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 announces material information
to the public about Lyft, its products and services and other
matters through a variety of means, including filings with the
Securities and Exchange Commission, press releases, public
conference calls, webcasts, the investor relations section of its
website (investor.lyft.com), its Twitter accounts (@lyft and
@Lyft_Comms), and its blogs (including: lyft.com/blog,
lyft.com/hub, eng.lyft.com, medium.com/lyftself-driving,
medium.com/sharing-the-ride-with-lyft and medium.com/@johnzimmer)
in order to achieve broad, non-exclusionary distribution of
information to the public 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, Lyft’s beliefs regarding its financial position
and operating performance, including the effect of the COVID-19
pandemic and the timing of recovery, and the related impact on
Lyft’s business, financial position and Lyft’s future profitability
and timing for achievement of profitability, as well as Lyft’s
proposed sale of its Level 5 self-driving division and strategic
objectives. 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 for
the full year 2020 and in our Quarterly Report on Form 10-Q that
will be filed with the SEC by May 10, 2021. 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, unless the ride is
accessible in the Lyft App.
Beginning in the fourth quarter of 2020, some riders were able
to access their Concierge rides in the Lyft App if they already had
a Lyft account. Accordingly, Lyft updated the definition of Active
Riders to include Concierge riders if the rider’s phone number
matches that of a verified Lyft account, allowing the rider to
access their ride in the Lyft App. This update resulted in a 0.01%
increase, or an additional 927 Active Riders in the fourth quarter
of 2020. Prior to the fourth quarter of 2020, all Concierge riders
were excluded from the calculation of Active Riders as Concierge
rides could not be matched with verified rider accounts.
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 (net of any benefit), payroll tax
expense related to stock-based compensation, changes to the
liabilities for insurance required by regulatory agencies
attributable to historical periods, and restructuring charges, as
well as, if applicable, 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 restructuring charges, as
well as, if applicable, 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 expense, other income (expense), net, provision
for income taxes, depreciation and amortization, 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, as well as,
if applicable, restructuring charges, costs related to acquisitions
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.
In April 2020 and November 2020, we announced restructuring
efforts to reduce operating expenses and adjust cash flows in light
of the ongoing economic challenges resulting from the COVID-19
pandemic and its impact on our business. We believe the costs
associated with the restructuring do not reflect performance of our
ongoing operations. We believe the adjustment to exclude the costs
related to restructuring from Contribution, Adjusted EBITDA and
Adjusted Net Loss is useful to investors by enabling them to better
assess our ongoing operating performance and provide for better
comparability with our historically disclosed Contribution,
Adjusted EBITDA and Adjusted Net Loss amounts.
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.
Lyft, Inc.
Condensed Consolidated Balance
Sheets
(in thousands, except for share
and per share data)
(unaudited)
March 31,
December 31,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
312,230
$
319,734
Short-term investments
1,925,090
1,931,334
Prepaid expenses and other current
assets
343,666
343,070
Total current assets
2,580,986
2,594,138
Restricted cash and cash equivalents
183,556
118,559
Restricted investments
940,415
1,101,712
Other investments
10,700
10,000
Property and equipment, net
308,405
313,297
Operating lease right-of-use assets
260,877
275,756
Intangible assets, net
61,282
65,845
Goodwill
182,693
182,687
Other assets
16,930
16,970
Total assets
$
4,545,844
$
4,678,964
Liabilities, Redeemable Convertible
Preferred Stock and Stockholders’ Equity
Current liabilities
Accounts payable
$
69,861
$
84,108
Insurance reserves
1,058,416
987,064
Accrued and other current liabilities
1,038,369
954,008
Operating lease liabilities — current
54,203
49,291
Total current liabilities
2,220,849
2,074,471
Operating lease liabilities
252,026
265,803
Long-term debt, net of current portion
651,637
644,236
Other liabilities
12,470
18,291
Total liabilities
3,136,982
3,002,801
Stockholders’ equity
Preferred stock, $0.00001 par value;
1,000,000,000 shares authorized as of March 31, 2021 and December
31, 2020; no shares issued and outstanding as of March 31, 2021 and
December 31, 2020
—
—
Common stock, $0.00001 par value;
18,000,000,000 Class A shares authorized as of March 31, 2021 and
December 31, 2020; 320,510,647 and 314,934,487 Class A shares
issued and outstanding, as of March 31, 2021 and December 31, 2020,
respectively; 100,000,000 Class B shares authorized, 8,802,629
Class B shares issued and outstanding, as of March 31, 2021 and
December 31, 2020
3
3
Additional paid-in capital
9,136,881
8,977,061
Accumulated other comprehensive income
(loss)
(255
)
(473
)
Accumulated deficit
(7,727,767
)
(7,300,428
)
Total stockholders’ equity
1,408,862
1,676,163
Total liabilities and stockholders’
equity
$
4,545,844
$
4,678,964
Lyft, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except for per
share data)
(unaudited)
Three Months Ended March
31,
2021
2020
Revenue
$
608,960
$
955,712
Costs and expenses
Cost of revenue
412,039
542,419
Operations and support
88,931
133,782
Research and development
238,218
258,739
Sales and marketing
78,620
196,437
General and administrative
207,594
238,440
Total costs and expenses
1,025,402
1,369,817
Loss from operations
(416,442
)
(414,105
)
Interest expense
(12,568
)
(1,507
)
Other income, net
3,605
19,169
Loss before income taxes
(425,405
)
(396,443
)
Provision for income taxes
1,934
1,630
Net loss
$
(427,339
)
$
(398,073
)
Net loss per share, basic and diluted
$
(1.31
)
$
(1.31
)
Weighted-average number of shares
outstanding used to compute net loss per share, basic and
diluted
326,165
304,502
Stock-based compensation included in
costs and expenses:
Cost of revenue
$
8,450
$
9,724
Operations and support
4,888
4,133
Research and development
95,590
95,548
Sales and marketing
7,963
4,750
General and administrative
47,338
45,823
Lyft, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended March
31,
2021
2020
Cash flows from operating
activities
Net loss
$
(427,339
)
$
(398,073
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
34,449
35,474
Stock-based compensation
164,229
159,978
Amortization of premium on marketable
securities
1,542
486
Accretion of discount on marketable
securities
(361
)
(7,826
)
Amortization of debt discount and issuance
costs
8,471
—
Loss on sale and disposal of assets,
net
289
3,228
Other
2,881
87
Changes in operating assets and
liabilities, net effects of acquisition
Prepaid expenses and other assets
242
(83,653
)
Operating lease right-of-use assets
14,966
20,257
Accounts payable
(11,123
)
500,004
Insurance reserves
71,352
(403,330
)
Accrued and other liabilities
71,391
(25,338
)
Lease liabilities
(10,453
)
(8,220
)
Net cash used in operating activities
(79,464
)
(206,926
)
Cash flows from investing
activities
Purchases of marketable securities
(981,743
)
(1,179,343
)
Purchase of non-marketable security
—
(10,000
)
Purchases of term deposits
(75,000
)
(75,000
)
Proceeds from sales of marketable
securities
17,099
406,508
Proceeds from maturities of marketable
securities
1,169,796
1,661,458
Proceeds from maturity of term deposit
36,000
30,000
Purchases of property and equipment and
scooter fleet
(10,685
)
(34,476
)
Cash paid for acquisitions, net of cash
acquired
3
(12,440
)
Sales of property and equipment
5,653
960
Net cash provided by (used in) investing
activities
161,123
787,667
Cash flows from financing
activities
Repayment of loans
(9,984
)
(6,087
)
Proceeds from exercise of stock options
and other common stock issuances
3,244
2,372
Taxes paid related to net share settlement
of equity awards
(7,652
)
(6,762
)
Principal payments on finance lease
obligations
(9,894
)
(6,167
)
Net cash provided by financing
activities
(24,286
)
(16,644
)
Effect of foreign exchange on cash, cash
equivalents and restricted cash and cash equivalents
34
(120
)
Net increase (decrease) in cash, cash
equivalents and restricted cash and cash equivalents
57,407
563,977
Cash, cash equivalents and restricted
cash and cash equivalents
Beginning of period
438,485
564,465
End of period
$
495,892
$
1,128,442
Lyft, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended March
31,
2021
2020
Reconciliation of cash, cash
equivalents and restricted cash and cash equivalents to the
consolidated balance sheets
Cash and cash equivalents
$
312,230
$
597,889
Restricted cash and cash equivalents
183,556
529,091
Restricted cash, included in prepaid
expenses and other current assets
106
1,462
Total cash, cash equivalents and
restricted cash and cash equivalents
$
495,892
$
1,128,442
Non-cash investing and financing
activities
Purchases of property and equipment, and
scooter fleet not yet settled
$
26,616
$
11,049
Right-of-use assets acquired under finance
leases
1,824
—
Right-of-use assets acquired under
operating leases
3,177
19,861
Remeasurement of finance and operating
lease right of use assets for lease modification
(3,582
)
—
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
and
GAAP to Non-GAAP
Reconciliations
(in millions)
(unaudited)
Three Months Ended March
31,
2021
2020
Contribution
Revenue
$
609.0
$
955.7
Less cost of revenue
(412.0
)
(542.4
)
Adjusted to exclude the following (as
related to cost of revenue):
Amortization of intangible assets
2.8
2.8
Stock based compensation expense
8.4
9.7
Payroll tax expense related to stock-based
compensation
1.1
0.7
Changes to the liabilities for insurance
required by regulatory agencies attributable to historical
periods
128.0
58.4
Transfer of certain legacy auto insurance
liabilities
—
62.5
Contribution
$
337.3
$
547.4
Contribution Margin
55.4
%
57.3
%
Three Months Ended March
31,
2021
2020
Adjusted EBITDA
Net Loss
$
(427.3
)
$
(398.1
)
Adjusted to exclude the following:
Interest expense(1)
12.9
1.5
Other income (expense), net(2)
(3.6
)
(19.1
)
Provision for income taxes
1.9
1.6
Depreciation and amortization
34.4
35.5
Stock-based compensation expense
164.2
160.0
Payroll tax expense related to stock-based
compensation
16.5
9.9
Changes to the liabilities for insurance
required by regulatory agencies attributable to historical
periods
128.0
58.4
Costs related to acquisitions
—
0.4
Transfer of certain legacy auto insurance
liabilities
—
64.7
Adjusted EBITDA
$
(73.0
)
$
(85.2
)
Adjusted EBITDA Margin
(12.0
%)
(8.9
%)
(1) Includes interest expense for
Flexdrive vehicles and the convertible senior notes and $0.3
million related to the interest component of vehicle related
finance leases.
(2) Includes interest income which was
reported as a separate line item on the condensed consolidated
statement of operations in periods prior to the second quarter of
2020.
Three Months Ended March
31,
2021
2020
Adjusted Net Loss
Net Loss
$
(427.3
)
$
(398.1
)
Adjusted to exclude the following:
Amortization of intangible assets
4.5
7.3
Stock-based compensation expense
164.2
160.0
Payroll tax expense related to stock-based
compensation
16.5
9.9
Changes to the liabilities for insurance
required by regulatory agencies attributable to historical
periods
128.0
58.4
Costs related to acquisitions
—
0.4
Transfer of certain legacy auto insurance
liabilities
—
64.7
Adjusted Net Loss
$
(114.1
)
$
(97.4
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210504006127/en/
Sonya Banerjee investor@lyft.com
Media press@lyft.com
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