8-K
Lyft, Inc. (LYFT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2023
Lyft, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-38846 | 20-8809830 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
185 Berry Street, Suite 400
San Francisco, California 94107
(Address of principal executive offices, including zip code)
(844) 250-2773
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol | Name of each exchange<br>on which registered |
|---|---|---|
| Class A Common Stock, par value of $0.00001 per share | LYFT | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On August 8, 2023, Lyft, Inc. (the “Company” or “Lyft”) issued a press release announcing its financial results for the quarter ended June 30, 2023. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
Item 7.01 Regulation FD Disclosure
On August 8, 2023, Lyft posted supplemental investor materials on its investor.lyft.com website. 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 @davidrisher), and its blogs (including: lyft.com/blog, lyft.com/hub, and eng.lyft.com) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.
The information in this current report on Form 8-K and the exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
| Exhibit<br>No. | Exhibit Description |
|---|---|
| 99.1 | Press Release, dated August 8, 2023 |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LYFT, INC. | ||
|---|---|---|
| Date: | August 8, 2023 | /s/ Erin Brewer |
| Erin Brewer | ||
| Chief Financial Officer |
Document
Exhibit 99.1
Lyft Announces Results for Second Quarter 2023
SAN FRANCISCO, CA, August 8, 2023 - Lyft, Inc. (Nasdaq:LYFT) today announced financial results for its second quarter ended June 30, 2023.
“Our customer obsession is paying off for riders, drivers, and our business,” said CEO David Risher. “Between summer travel and return-to-office commuting, folks are getting out more every day and loving the Lyft rideshare experience. Standard rides have reached their second-highest level ever. Our advice: download Lyft now and give us a try. We think you’ll like what you see.”
“The rideshare market is growing. We had a solid second quarter and we have strong ride momentum going into Q3 and the back half of the year,” said Erin Brewer, chief financial officer of Lyft. “The team is unified and focused on delivering great experiences for drivers and riders. We’ve got lots more to do to build on our progress.”
Second Quarter 2023 Financial Highlights
•Revenue of $1.021 billion was up 3% year-over-year, reflecting strong growth in rideshare rides, up 18% year-over-year.
•Net loss of $114.3 million compares with $187.6 million in Q1’23 and $377.2 million in Q2’22. Net loss includes $116.6 million of stock-based compensation and related payroll tax expenses. Net loss margin of 11.2% compares with 18.8% in Q1’23 and 38.1% in Q2’22.
•Adjusted EBITDA1 was $41.0 million. This compares with $22.7 million in Q1’23 and $(196.3) million in Q2’22. Adjusted EBITDA Margin1 was 4.0%. This compares with 2.3% in Q1’23 and (19.8)% in Q2’22.
Outlook
For Q3’23, we anticipate:
•Revenue of approximately $1.130 billion to $1.150 billion
•Adjusted EBITDA between $75 million and $85 million, with an Adjusted EBITDA Margin of approximately 7%
We have not provided the forward-looking GAAP equivalent to our Adjusted EBITDA outlook or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and income tax. Accordingly, a reconciliation of this non-GAAP guidance metric to its corresponding GAAP equivalent is not available without unreasonable effort. However, it is important to note that the reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this release. For more information regarding the non-GAAP financial measures discussed in this earnings release, please see "GAAP to non-GAAP Reconciliations" below.
Key Metrics
| Active Riders | Revenue per Active Rider | ||||
|---|---|---|---|---|---|
| 2023 | 2022 | Growth Rate | 2023 | 2022 | |
| (in thousands, except for dollar amounts and percentages) | |||||
| Three Months Ended March 31 | 19,552 | 17,804 | 9.8% | $51.17 | 49.18 |
| Three Months Ended June 30 | 21,487 | 19,860 | 8.2% | $47.51 | 49.89 |
| Three Months Ended September 30 | 20,312 | 51.88 | |||
| Three Months Ended December 31 | 20,358 | 57.72 |
All values are in US Dollars.
1 Beginning in the fourth quarter of 2022, Lyft’s non-GAAP financial measures have been updated to no longer adjust for “Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods” and prior period information has been revised to conform to the current period presentation.
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 our Investor Relations page at https://investor.lyft.com/. The archived webcast will be available on our 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 to transportation-as-a-service, Lyft is at the forefront of this massive societal change. Our transportation network brings together rideshare, bikes, scooters 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 @davidrisher), and its blogs (including: lyft.com/blog, lyft.com/hub, and eng.lyft.com) 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 guidance and outlook, Lyft’s expectations regarding rideshare market growth and Lyft’s beliefs regarding its future goals. 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 macroeconomic environment and impact of the COVID-19 pandemic, and risks regarding our ability to forecast our performance due to our limited operating history and the macroeconomic environment. 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 Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023 that was filed with the SEC on May 8, 2023 and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 that will be filed with the SEC by August 9, 2023. 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.
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 Income (Loss), Contribution, Contribution Margin, Adjusted EBITDA and Adjusted EBITDA Margin. Lyft defines Adjusted Net Income (Loss) as net loss adjusted for amortization of intangible assets, stock-based compensation expense (net of any benefit), and payroll tax expense related to stock-based compensation, as well as, if applicable, restructuring charges and transaction costs related to certain legacy auto insurance liabilities and cost related to acquisitions and divestitures. 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, and payroll tax expense related to stock-based compensation, as well as, if applicable, restructuring charges and transaction costs related to 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 for interest expense, other income (expense), net, provision for (benefit from) income taxes, depreciation and amortization, stock-based compensation expense, payroll tax expense related to stock-based compensation and sublease income, as well as, if applicable, restructuring charges, costs related to acquisitions and divestitures and costs from transactions related to certain legacy auto insurance liabilities. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.
During the second quarter of 2021, Lyft entered into a Quota Share Reinsurance Agreement (the “Reinsurance Agreement”) for the reinsurance of legacy auto insurance liabilities between October 1, 2018 to October 1, 2020, based on the reserves in place as of March 31, 2021. During the first quarter of 2020, Lyft entered into a Novation Agreement for the transfer of certain legacy auto insurance liabilities between October 1, 2015 and September 30, 2018.
Losses ceded under the Reinsurance Agreement that exceed the combined funds withheld liability balance and collateralized amount established by DARAG for the benefit of PVIC, which was $346.5 million at the execution of the Reinsurance Agreement, but are below the aggregate limit of $434.5 million may result in the recognition of a deferred gain liability. The deferred gain liability is amortized and recognized as a benefit to the statement of operations over the settlement period of the ceded reserves. The settlement period of the ceded reserves is based on the life-to-date cumulative losses collected and likely extends over periods longer than a quarter. The amount of the deferral is recalculated each period based on loss payments and updated estimates of the portfolio’s total losses. Consequently, cumulative reserve adjustments for claims ceded under the Reinsurance Agreement in subsequent periods may result in significant losses to the statement of operations unless a deferred gain is also recognized in the same period to offset said losses. Lyft believes that the net amount recognized on the statement of operations associated with claims ceded under the Reinsurance Agreement, including any reserve adjustments and any benefit recognized for the related deferred gains, should be excluded to show the ultimate economic benefit of the Reinsurance Agreement. This adjustment will help investors understand the economic benefit of our Reinsurance Agreement on future trends in our operations, as they improve over the settlement period of any deferred gains. Therefore, in the event that the net amount of any reserve adjustments and any benefits from deferred gains related to claims ceded under the Reinsurance Agreement is recognized on the statement of operations in a subsequent period, those amounts will be excluded from the calculation of Contribution, Adjusted EBITDA and Adjusted Net Income (Loss) through the exclusion of “Net amount from claims ceded under the Reinsurance Agreement”. As of June 30, 2023, we have no deferred gain related to losses ceded under the Reinsurance Agreement.
During the second quarter of 2022, we completed a transaction which effectively commuted and settled the Reinsurance Agreement. The commutation transaction resulted in a $36.8 million gain recorded to cost of revenue on the condensed consolidated statement of operations. We believe the adjustment to exclude this gain associated with the commutation of the Reinsurance Agreement from Contribution, Adjusted EBITDA and Adjusted Net Income (Loss) is useful to investors by enabling them to better assess our operating performance in the context of current period results and provide for better comparability with our historically disclosed Contribution, Adjusted EBITDA and Adjusted Net Income (Loss) amounts. The gain associated with this commutation transaction, which commuted and settled the Reinsurance Agreement, will be excluded from the calculation of Contribution, Adjusted EBITDA and Adjusted Net Income (Loss) through the exclusion of the "Net amount from claims ceded under the Reinsurance Agreement."
Lyft subleases certain office space and earns sublease income. Sublease income is included within other income, net on the condensed consolidated statement of operations, while the related lease expense is included within operating expenses and loss from operations. Lyft believes the adjustment to include sublease income in Adjusted EBITDA is useful to investors by enabling them to better assess Lyft’s operating performance, including the benefits of recent transactions, by presenting sublease income as a contra-expense to the related lease charges that are part of operating expenses.
In November 2022 and April 2023, Lyft committed to plans of termination as part of efforts to reduce operating expenses. Lyft believes the costs associated with these restructuring efforts do not reflect performance of Lyft’s ongoing operations. Lyft believes the adjustment to exclude the costs related to restructuring from Contribution, Adjusted EBITDA and Adjusted Net Income (Loss) is useful to investors by enabling them to better assess Lyft’s ongoing operating performance and provide for better comparability with Lyft’s historically disclosed Contribution, Adjusted EBITDA and Adjusted Net Income (Loss) amounts.
Lyft uses Adjusted Net Income (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 Income (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 Income (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 Income (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 | |
|---|---|
| Sonya Banerjee | Media |
| investor@lyft.com | press@lyft.com |
Lyft, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except for share and per share data)
(unaudited)
| June 30,<br>2023 | December 31,<br>2022 | |||
|---|---|---|---|---|
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ | 638,434 | $ | 281,090 |
| Short-term investments | 1,059,730 | 1,515,702 | ||
| Prepaid expenses and other current assets | 781,154 | 786,067 | ||
| Total current assets | 2,479,318 | 2,582,859 | ||
| Restricted cash and cash equivalents | 365,849 | 109,368 | ||
| Restricted investments | 632,497 | 1,027,506 | ||
| Other investments | 39,870 | 26,390 | ||
| Property and equipment, net | 472,416 | 313,402 | ||
| Operating lease right of use assets | 105,818 | 135,213 | ||
| Intangible assets, net | 68,294 | 76,208 | ||
| Goodwill | 260,810 | 261,582 | ||
| Other assets | 21,361 | 23,903 | ||
| Total assets | $ | 4,446,233 | $ | 4,556,431 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities | ||||
| Accounts payable | $ | 62,235 | $ | 107,801 |
| Insurance reserves | 1,309,517 | 1,417,350 | ||
| Accrued and other current liabilities | 1,606,572 | 1,561,609 | ||
| Operating lease liabilities — current | 42,115 | 45,803 | ||
| Total current liabilities | 3,020,439 | 3,132,563 | ||
| Operating lease liabilities | 154,381 | 176,356 | ||
| Long-term debt, net of current portion | 808,060 | 803,207 | ||
| Other liabilities | 76,310 | 55,637 | ||
| Total liabilities | 4,059,190 | 4,167,763 | ||
| Stockholders’ equity | ||||
| Preferred stock, $0.00001 par value; 1,000,000,000 shares authorized as of June 30, 2023 and December 31, 2022; no shares issued and outstanding as of June 30, 2023 and December 31, 2022 | — | — | ||
| Common stock, $0.00001 par value; 18,000,000,000 Class A shares authorized as of June 30, 2023 and December 31, 2022; 377,634,274 and 361,552,359 Class A shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively; 100,000,000 Class B shares authorized as of June 30, 2023 and December 31, 2022; 8,602,629 Class B shares issued and outstanding as of June 30, 2023 and December 31, 2022. | 4 | 4 | ||
| Additional paid-in capital | 10,633,368 | 10,335,013 | ||
| Accumulated other comprehensive income (loss) | (3,823) | (5,754) | ||
| Accumulated deficit | (10,242,506) | (9,940,595) | ||
| Total stockholders’ equity | 387,043 | 388,668 | ||
| Total liabilities and stockholders’ equity | $ | 4,446,233 | $ | 4,556,431 |
Lyft, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except for per share data)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||
| Revenue | $ | 1,020,906 | $ | 990,748 | $ | 2,021,454 | $ | 1,866,323 |
| Costs and expenses | ||||||||
| Cost of revenue | 606,599 | 650,356 | 1,155,591 | 1,090,650 | ||||
| Operations and support | 107,649 | 105,314 | 206,575 | 203,914 | ||||
| Research and development | 154,612 | 201,768 | 351,516 | 394,522 | ||||
| Sales and marketing | 109,167 | 140,754 | 225,108 | 267,083 | ||||
| General and administrative | 201,398 | 265,731 | 457,938 | 482,672 | ||||
| Total costs and expenses | 1,179,425 | 1,363,923 | 2,396,728 | 2,438,841 | ||||
| Loss from operations | (158,519) | (373,175) | (375,274) | (572,518) | ||||
| Interest expense | (6,151) | (4,960) | (11,584) | (9,509) | ||||
| Other income (expense), net | 53,075 | 953 | 90,290 | 10,716 | ||||
| Loss before income taxes | (111,595) | (377,182) | (296,568) | (571,311) | ||||
| Provision for (benefit from) income taxes | 2,667 | 64 | 5,343 | 2,867 | ||||
| Net loss | $ | (114,262) | $ | (377,246) | $ | (301,911) | $ | (574,178) |
| Net loss per share, basic and diluted | $ | (0.30) | $ | (1.08) | $ | (0.80) | $ | (1.65) |
| Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted | 381,884 | 350,526 | 377,828 | 348,553 | ||||
| Stock-based compensation included in costs and expenses: | ||||||||
| Cost of revenue | $ | 7,503 | $ | 10,085 | $ | 18,272 | $ | 20,007 |
| Operations and support | 3,981 | 6,306 | 9,909 | 11,896 | ||||
| Research and development | 49,351 | 91,148 | 142,856 | 171,913 | ||||
| Sales and marketing | 7,953 | 12,008 | 19,637 | 22,580 | ||||
| General and administrative | 45,138 | 57,097 | 103,635 | 103,991 |
Lyft, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Six Months Ended June 30, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Cash flows from operating activities | ||||
| Net loss | $ | (301,911) | $ | (574,178) |
| Adjustments to reconcile net loss to net cash used in operating activities | ||||
| Depreciation and amortization | 55,841 | 60,907 | ||
| Stock-based compensation | 294,309 | 330,387 | ||
| Amortization of premium on marketable securities | 87 | 1,908 | ||
| Accretion of discount on marketable securities | (28,386) | (3,727) | ||
| Amortization of debt discount and issuance costs | 1,374 | 1,347 | ||
| Gain on sale and disposal of assets, net | (8,902) | (31,866) | ||
| Other | (8,391) | 313 | ||
| Changes in operating assets and liabilities, net effects of acquisition | ||||
| Prepaid expenses and other assets | 18,978 | (124,520) | ||
| Operating lease right-of-use assets | 17,646 | 27,113 | ||
| Accounts payable | (49,404) | (35,783) | ||
| Insurance reserves | (107,833) | 166,275 | ||
| Accrued and other liabilities | (19,091) | 33,547 | ||
| Lease liabilities | (8,330) | (29,254) | ||
| Net cash used in operating activities | (144,013) | (177,531) | ||
| Cash flows from investing activities | ||||
| Purchases of marketable securities | (1,192,689) | (1,262,318) | ||
| Purchases of term deposits | — | (10,046) | ||
| Proceeds from sales of marketable securities | 294,115 | 357,788 | ||
| Proceeds from maturities of marketable securities | 1,772,926 | 713,593 | ||
| Proceeds from maturities of term deposits | 5,000 | 380,046 | ||
| Purchases of property and equipment and scooter fleet | (88,975) | (53,310) | ||
| Cash paid for acquisitions, net of cash acquired | 1,630 | (146,334) | ||
| Sales of property and equipment | 48,843 | 43,704 | ||
| Net cash provided by (used in) investing activities | 840,850 | 23,123 | ||
| Cash flows from financing activities | ||||
| Repayment of loans | (48,451) | (26,680) | ||
| Proceeds from exercise of stock options and other common stock issuances | 5,873 | 12,349 | ||
| Taxes paid related to net share settlement of equity awards | (1,827) | (3,549) | ||
| Principal payments on finance lease obligations | (24,852) | (15,728) | ||
| Contingent consideration paid | (14,100) | — | ||
| Net cash used in financing activities | (83,357) | (33,608) | ||
| Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents | 345 | (121) | ||
| Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | 613,825 | (188,137) | ||
| Cash, cash equivalents and restricted cash and cash equivalents | ||||
| Beginning of period | 391,822 | 531,193 | ||
| End of period | $ | 1,005,647 | $ | 343,056 |
Lyft, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Six Months Ended June 30, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the consolidated balance sheets | ||||
| Cash and cash equivalents | $ | 638,434 | $ | 239,299 |
| Restricted cash and cash equivalents | 365,849 | 102,099 | ||
| Restricted cash, included in prepaid expenses and other current assets | 1,364 | 1,658 | ||
| Total cash, cash equivalents and restricted cash and cash equivalents | $ | 1,005,647 | $ | 343,056 |
| Non-cash investing and financing activities | ||||
| Financed vehicles acquired, net of principal payments | $ | 119,645 | $ | 63,030 |
| Purchases of property and equipment, and scooter fleet not yet settled | 13,362 | 14,604 | ||
| Contingent consideration | — | 14,100 | ||
| Right-of-use assets acquired under finance leases | 34,729 | 8,916 | ||
| Right-of-use assets acquired under operating leases | 3,100 | 327 | ||
| Remeasurement of finance and operating lease right of use assets | (2,242) | 225 |
Lyft, Inc.
GAAP to Non-GAAP Reconciliations
(in millions)
(unaudited)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 30,<br>2023 | March 31,<br>2023 | June 30,<br>2022 | |||||||
| Contribution(1) | |||||||||
| Revenue | $ | 1,020.9 | $ | 1,000.5 | $ | 990.7 | |||
| Less cost of revenue | (606.6) | (549.0) | (650.4) | ||||||
| Gross profit | 414.3 | 451.6 | 340.4 | ||||||
| Gross profit margin | 40.6 | % | 45.1 | % | 34.4 | % | |||
| Adjusted to exclude the following (as related to cost of revenue): | |||||||||
| Amortization of intangible assets | 1.2 | 1.2 | 1.2 | ||||||
| Stock-based compensation expense | 7.5 | 10.8 | 10.1 | ||||||
| Payroll tax expense related to stock-based compensation | 0.2 | 0.4 | 0.2 | ||||||
| Net amount from claims ceded under the Reinsurance Agreement(2) | — | — | (36.8) | ||||||
| Restructuring charges(3)(4) | 3.1 | 1.1 | — | ||||||
| Contribution(1) | $ | 426.4 | $ | 465.1 | $ | 315.1 | |||
| Contribution Margin(1) | 41.8 | % | 46.5 | % | 31.8 | % |
_______________
(1) Beginning in the fourth quarter of 2022, Lyft’s non-GAAP financial measures have been updated to no longer adjust for “Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods” and prior period information has been revised to conform to the current period presentation.
(2) In the second quarter of 2022, we recorded a $36.8 million gain under cost of revenue on the condensed consolidated statement of operations related to a transaction which effectively commuted and settled the Reinsurance Agreement.
(3) In the second quarter of 2023, we incurred restructuring charges of $3.1 million of severance and other employee costs due to the restructuring plan announced in April 2023. Restructuring related charges for stock-based compensation of $0.7 million and payroll tax expense related to stock-based compensation of $0.1 million are included on their respective line items.
(4) In the first quarter of 2023, we incurred restructuring charges of $1.1 million of severance and other employee costs due to ongoing transformational initiatives announced in November 2022 restructuring plan.
Note: Due to rounding, numbers presented may not add up precisely to the totals provided.
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 30,<br>2023 | March 31,<br>2023 | June 30,<br>2022 | |||||||
| Adjusted EBITDA(1) | |||||||||
| Net loss | $ | (114.3) | $ | (187.6) | $ | (377.2) | |||
| Adjusted to exclude the following: | |||||||||
| Interest expense(2) | 6.9 | 5.9 | 5.2 | ||||||
| Other (income) expense, net | (53.1) | (37.2) | (1.0) | ||||||
| Provision for (benefit from) income taxes | 2.7 | 2.7 | 0.1 | ||||||
| Depreciation and amortization | 28.6 | 27.2 | 29.1 | ||||||
| Stock-based compensation | 113.9 | 180.4 | 176.6 | ||||||
| Payroll tax expense related to stock-based compensation | 2.7 | 6.2 | 2.5 | ||||||
| Net amount from claims ceded under the Reinsurance Agreement(3) | — | — | (36.8) | ||||||
| Sublease income(4) | 1.3 | 1.3 | 3.8 | ||||||
| Costs related to acquisitions and divestitures(5) | — | — | 1.4 | ||||||
| Restructuring charges(6)(7) | 52.3 | 23.9 | — | ||||||
| Adjusted EBITDA(1) | $ | 41.0 | $ | 22.7 | $ | (196.3) | |||
| Adjusted EBITDA Margin(1) | 4.0 | % | 2.3 | % | (19.8 | %) |
_______________
(1) Beginning in the fourth quarter of 2022, Lyft’s non-GAAP financial measures have been updated to no longer adjust for “Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods” and prior period information has been revised to conform to the current period presentation.
(2) Includes interest expense for Flexdrive vehicles and the 2025 Notes and $0.7 million, $0.4 million and $0.2 million related to the interest component of vehicle related finance leases in the three months ended June 30, 2023, March 31, 2023 and June 30, 2022, respectively.
(3) In the second quarter of 2022, we recorded a $36.8 million gain under cost of revenue on the condensed consolidated statement of operations related to a transaction which effectively commuted and settled the Reinsurance Agreement.
(4) Includes sublease income from subleases entered into as part of our transaction with Woven Planet in the third quarter of 2021.
(5) Includes third-party costs incurred related to our acquisition of PBSC Urban Solutions (“PBSC”), which closed on May 17, 2022.
(6) In the second quarter of 2023, we incurred restructuring charges of $46.6 million of severance and other employee costs and $5.7 million in impairment charges, fixed asset write-offs and other costs. Restructuring related charges for stock-based compensation of $9.7 million, accelerated depreciation of $0.7 million and payroll tax expense related to stock-based compensation of $0.6 million are included on their respective line items. These charges were related to the restructuring plan announced in April 2023.
(7) In the first quarter of 2023, we incurred restructuring charges of $4.3 million of severance and other employee costs and $19.6 million related to right-of-use-asset impairments and other costs due to ongoing transformational initiatives. Restructuring related charges for stock-based compensation of $0.2 million and accelerated depreciation of $0.3 million are included on their respective line items. These charges were related to the restructuring plan announced in November 2022.
Note: Due to rounding, numbers presented may not add up precisely to the totals provided.
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| June 30,<br>2023 | March 31,<br>2023 | June 30,<br>2022 | ||||
| Adjusted Net Income (Loss)(1) | ||||||
| Net Loss | $ | (114.3) | $ | (187.6) | $ | (377.2) |
| Adjusted for the following: | ||||||
| Amortization of intangible assets | 4.2 | 4.5 | 4.5 | |||
| Stock-based compensation expense | 113.9 | 180.4 | 176.6 | |||
| Payroll tax expense related to stock-based compensation | 2.7 | 6.2 | 2.5 | |||
| Net amount from claims ceded under the Reinsurance Agreement(2) | — | — | (36.8) | |||
| Costs related to acquisitions and divestitures(3) | — | — | 1.4 | |||
| Restructuring charges(4)(5) | 52.9 | 24.2 | — | |||
| Adjusted Net Income (Loss)(1) | $ | 59.5 | $ | 27.7 | $ | (229.1) |
_______________
(1) Beginning in the fourth quarter of 2022, Lyft’s non-GAAP financial measures have been updated to no longer adjust for “Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods” and prior period information has been revised to conform to the current period presentation.
(2) In the second quarter of 2022, we recorded a $36.8 million gain under cost of revenue on the condensed consolidated statement of operations related to a transaction which effectively commuted and settled the Reinsurance Agreement.
(3) Includes third-party costs incurred related to our acquisition of PBSC, which closed on May 17, 2022.
(4) In the second quarter of 2023, we incurred restructuring charges of $46.6 million of severance and other employee costs, $5.7 million in impairment charges, fixed asset write-offs and other costs and $0.7 million of accelerated depreciation. Restructuring related charges for stock-based compensation of $9.7 million and payroll tax expense related to stock-based compensation of $0.6 million are included on their respective line items. These charges were related to the restructuring plan announced in April 2023.
(5) In the first quarter of 2023, we incurred restructuring charges of $4.3 million of severance and other employee costs, $19.6 million related to right-of-use asset impairments and other costs and $0.3 million related to accelerated depreciation of certain fixed assets due to ongoing transformational initiatives. In addition, restructuring related charges for the stock-based compensation of $0.2 million are included on their respective line items. These charges were related to the restructuring plan announced in November 2022.
Note: Due to rounding, numbers presented may not add up precisely to the totals provided.