Lyft Announces Third Quarter Results
Results reflect ongoing recovery, with third quarter revenue up 47% quarter-over-quarter
Ended quarter with
“Lyft’s third quarter results reflect our focused execution and business resilience,” said
Third Quarter 2020 Financial Highlights
Lyft reported Q3 revenue of$499.7 million versus$955.6 million in the third quarter of 2019, a decrease of 48 percent year-over-year, but an increase of 47 percent from$339.3 million in the second quarter of 2020.- Net loss for Q3 2020 was
$459.5 million versus a net loss of$463.5 million in the same period of 2019. Net loss for Q3 includes$170.7 million of stock-based compensation and related payroll tax expenses and$0.7 million related to changes to the liabilities for insurance required by regulatory agencies attributable to historical periods. Net loss margin for Q3 was 92.0 percent compared to 48.5 percent in the third quarter of 2019. - Adjusted net loss for Q3 2020 was
$280.4 million versus an adjusted net loss of$121.6 million in the third 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, and 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. Lyft reported Contribution for Q3 2020 of$248.8 million versus$479.2 million in the third quarter of 2019, down 48 percent year-over-year. Contribution Margin for Q3 2020 was 49.8 percent, which was relatively flat year-over-year and up 15 absolute percentage points versus the second quarter of 2020. Contribution Margin for Q3 2020 exceeded the Company's most recent outlook of 45 percent1.- Adjusted EBITDA loss for Q3 2020 was
$239.7 million , an increase of$111.6 million compared to Adjusted EBITDA loss of$128.1 million in the third quarter of 2019. The Adjusted EBITDA loss for Q3 2020 was approximately $25 million better than the Company's most recent outlook for Adjusted EBITDA loss2. Adjusted EBITDA loss Margin for Q3 2020 was 48.0 percent versus 13.4 percent in the third quarter of 2019. Lyft reported$2.5 billion of unrestricted cash, cash equivalents and short-term investments atSeptember 30, 2020 .
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1 Company outlook for Contribution Margin for the third quarter of 2020 as reported during the Second Quarter 2020 Financial Results Earnings Call on
2 Company outlook for Adjusted EBITDA for the third quarter of 2020 was
Fiscal 2020 | Fiscal 2020 | Fiscal 2019 | year-over-year | qtr-over-qtr | ||||||
Q3 | Q2 | Q3 | change | change | ||||||
Active Riders (in thousands) | 12,513 | 8,688 | 22,314 | (44)% | 44% | |||||
Revenue per Active Rider | (7)% | 2% | ||||||||
Revenue (in millions) | (48)% | 47% |
“Our Q3 revenue grew by 47% quarter-over-quarter driven by a meaningful recovery in Active Riders, and we successfully limited our Adjusted EBITDA loss, outperforming our most recent outlook by
“As we look to the future, the win on Proposition 22 in
For more information regarding the non-GAAP financial measures discussed in this earnings release, please see "GAAP to non-GAAP Reconciliations" below.
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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
A Note About Metrics
Non-GAAP Financial Measures
To supplement
In
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 | |
Investor Relations | Media |
investor@lyft.com | press@lyft.com |
Condensed Consolidated Balance Sheets
(in thousands, except for share and per share data)
(unaudited)
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 424,806 | $ | 358,319 | |||||
Short-term investments | 2,028,643 | 2,491,805 | |||||||
Prepaid expenses and other current assets | 299,605 | 397,239 | |||||||
Total current assets | 2,753,054 | 3,247,363 | |||||||
Restricted cash and cash equivalents | 115,229 | 204,976 | |||||||
Restricted investments | 1,199,833 | 1,361,045 | |||||||
Other investments | 10,000 | — | |||||||
Property and equipment, net | 335,738 | 188,603 | |||||||
Operating lease right-of-use assets | 283,990 | 441,258 | |||||||
Intangible assets, net | 71,792 | 82,919 | |||||||
182,725 | 158,725 | ||||||||
Other assets | 15,970 | 6,494 | |||||||
Total assets | $ | 4,968,331 | $ | 5,691,383 | |||||
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 26,020 | $ | 38,839 | |||||
Insurance reserves | 922,628 | 1,378,462 | |||||||
Accrued and other current liabilities | 1,047,548 | 939,865 | |||||||
Operating lease liabilities — current | 48,979 | 94,199 | |||||||
Total current liabilities | 2,045,175 | 2,451,365 | |||||||
Operating lease liabilities | 278,773 | 382,077 | |||||||
Long-term debt, net of current portion | 622,684 | — | |||||||
Other liabilities | 18,606 | 3,857 | |||||||
Total liabilities | 2,965,238 | 2,837,299 | |||||||
Commitments and contingencies (Note 7) | |||||||||
Stockholders’ equity | |||||||||
Preferred stock, |
— | — | |||||||
Common stock, |
3 | 3 | |||||||
Additional paid-in capital | 8,838,023 | 8,398,927 | |||||||
Accumulated other comprehensive income | 7,340 | 2,725 | |||||||
Accumulated deficit | (6,842,273 | ) | (5,547,571 | ) | |||||
Total stockholders’ equity | 2,003,093 | 2,854,084 | |||||||
Total liabilities and stockholders’ equity | $ | 4,968,331 | $ | 5,691,383 |
Condensed Consolidated Statements of Operations
(in thousands, except for per share data)
(unaudited)
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Revenue | $ | 499,744 | $ | 955,598 | $ | 1,794,801 | $ | 2,598,890 | |||||||||||
Costs and expenses | |||||||||||||||||||
Cost of revenue | 261,614 | 580,714 | 1,055,388 | 1,673,707 | |||||||||||||||
Operations and support | 123,136 | 149,794 | 355,528 | 489,004 | |||||||||||||||
Research and development | 232,106 | 288,272 | 693,946 | 1,229,065 | |||||||||||||||
Sales and marketing | 78,548 | 163,858 | 326,807 | 619,938 | |||||||||||||||
General and administrative | 257,693 | 263,820 | 718,087 | 907,842 | |||||||||||||||
Total costs and expenses | 953,097 | 1,446,458 | 3,149,756 | 4,919,556 | |||||||||||||||
Loss from operations | (453,353 | ) | (490,860 | ) | (1,354,955 | ) | (2,320,666 | ) | |||||||||||
Interest expense | (12,529 | ) | — | (20,573 | ) | — | |||||||||||||
Other income (expense), net | 7,474 | 29,292 | 38,766 | 78,760 | |||||||||||||||
Loss before income taxes | (458,408 | ) | (461,568 | ) | (1,336,762 | ) | (2,241,906 | ) | |||||||||||
Provision (benefit) for income taxes | 1,109 | 1,909 | (42,060 | ) | 4,283 | ||||||||||||||
Net loss | $ | (459,517 | ) | $ | (463,477 | ) | $ | (1,294,702 | ) | $ | (2,246,189 | ) | |||||||
Net loss per share, basic and diluted | $ | (1.46 | ) | $ | (1.57 | ) | $ | (4.18 | ) | $ | (11.05 | ) | |||||||
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted | 314,530 | 294,784 | 309,433 | 203,199 | |||||||||||||||
Stock-based compensation included in costs and expenses: | |||||||||||||||||||
Cost of revenue | $ | 7,021 | $ | 12,078 | $ | 21,201 | $ | 68,625 | |||||||||||
Operations and support | 5,310 | 8,553 | 10,942 | 68,178 | |||||||||||||||
Research and development | 96,212 | 153,830 | 243,993 | 842,954 | |||||||||||||||
Sales and marketing | 6,910 | 7,969 | 16,115 | 65,213 | |||||||||||||||
General and administrative | 51,264 | 59,746 | 140,247 | 349,930 |
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended |
|||||||||
2020 | 2019 | ||||||||
Cash flows from operating activities | |||||||||
Net loss | $ | (1,294,702 | ) | $ | (2,246,189 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||
Depreciation and amortization | 121,650 | 84,352 | |||||||
Stock-based compensation | 432,498 | 1,394,900 | |||||||
Amortization of premium on marketable securities | 4,083 | 342 | |||||||
Accretion of discount on marketable securities | (13,434 | ) | (31,209 | ) | |||||
Amortization of debt discount and issuance costs | 12,501 | — | |||||||
Deferred income tax | (46,324 | ) | — | ||||||
Loss on disposal of assets | 28,074 | 24,332 | |||||||
Gain on sale of assets | (9,895 | ) | — | ||||||
Other | 6,332 | 801 | |||||||
Changes in operating assets and liabilities | |||||||||
Prepaid expenses and other assets | 84,789 | (141,401 | ) | ||||||
Operating lease right-of-use assets | 47,476 | 70,551 | |||||||
Accounts payable | (15,153 | ) | (733 | ) | |||||
Insurance reserves | (455,834 | ) | 564,663 | ||||||
Accrued and other liabilities | 16,359 | 283,902 | |||||||
Lease liabilities | (32,706 | ) | (63,822 | ) | |||||
Net cash used in operating activities | (1,114,286 | ) | (59,511 | ) | |||||
Cash flows from investing activities | |||||||||
Purchases of marketable securities | (3,368,614 | ) | (4,836,182 | ) | |||||
Purchase of non-marketable security | (10,000 | ) | — | ||||||
Purchases of term deposits | (718,811 | ) | (105,000 | ) | |||||
Proceeds from sales of marketable securities | 476,196 | 893,429 | |||||||
Proceeds from maturities of marketable securities | 4,011,701 | 2,656,249 | |||||||
Proceeds from maturity of term deposit | 232,811 | — | |||||||
Purchases of property and equipment and scooter fleet | (70,844 | ) | (128,431 | ) | |||||
Sales of property and equipment and held for sale assets | 14,945 | 4,007 | |||||||
Cash paid for acquisitions, net of cash acquired | (12,376 | ) | (1,801 | ) | |||||
Net cash provided by (used in) investing activities | 555,008 | (1,517,729 | ) | ||||||
Cash flows from financing activities | |||||||||
Proceeds from issuance of common stock in initial public offering, net of underwriting commissions, offering costs and reimbursements | — | 2,484,101 | |||||||
Repayment of loans | (35,592 | ) | — | ||||||
Proceeds from issuance of convertible senior notes | 734,065 | — | |||||||
Payment of debt issuance costs | (824 | ) | — | ||||||
Purchase of capped call | (132,681 | ) | — | ||||||
Proceeds from exercise of stock options and other common stock issuances | 14,610 | 14,914 | |||||||
Taxes paid related to net share settlement of equity awards | (14,515 | ) | (942,780 | ) | |||||
Principal payments on finance lease obligations | (29,042 | ) | — | ||||||
Net cash provided by financing activities | 536,021 | 1,556,235 | |||||||
Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents | (286 | ) | 196 | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | (23,543 | ) | (20,809 | ) | |||||
Cash, cash equivalents and restricted cash and cash equivalents | |||||||||
Beginning of period | 564,465 | 706,486 | |||||||
End of period | $ | 540,922 | $ | 685,677 |
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended |
|||||||
2020 | 2019 | ||||||
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 424,806 | $ | 543,871 | |||
Restricted cash and cash equivalents | 115,229 | 139,440 | |||||
Restricted cash, included in prepaid expenses and other current assets | 887 | 2,366 | |||||
Total cash, cash equivalents and restricted cash and cash equivalents | $ | 540,922 | $ | 685,677 | |||
Non-cash investing and financing activities | |||||||
Purchases of property and equipment, and scooter fleet not yet settled | $ | 45,291 | $ | 9,316 | |||
Deferred offering costs accrued, unpaid | — | 72 | |||||
Right-of-use assets acquired under finance and operating leases | 29,499 | 196,730 | |||||
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering | — | 5,152,047 | |||||
Reclassification of deferred offering costs to additional paid-in capital upon initial public offering | — | 7,690 | |||||
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 | — |
Calculations of Key Metrics and
GAAP to Non-GAAP Reconciliations
(in millions)
(unaudited)
Three Months Ended |
|||||||||
2020 | 2019 | ||||||||
Contribution | |||||||||
Revenue | $ | 499.7 | $ | 955.6 | |||||
Less cost of revenue | (261.6 | ) | (580.7 | ) | |||||
Adjusted to exclude the following (as related to cost of revenue): | |||||||||
Amortization of intangible assets | 2.8 | 5.3 | |||||||
Stock based compensation expense | 7.0 | 12.1 | |||||||
Payroll tax expense related to stock-based compensation | 0.2 | 0.3 | |||||||
Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods | 0.7 | 86.6 | |||||||
Contribution | $ | 248.8 | $ | 479.2 | |||||
Contribution Margin | 49.8 | % | 50.1 | % |
Three Months Ended |
|||||||||
2020 | 2019 | ||||||||
Adjusted EBITDA | |||||||||
Net Loss | $ | (459.5 | ) | $ | (463.5 | ) | |||
Adjusted to exclude the following: | |||||||||
Interest expense(1) | 13.1 | — | |||||||
Other income (expense), net(2) | (7.5 | ) | (29.3 | ) | |||||
Provision for income taxes | 1.1 | 1.9 | |||||||
Depreciation and amortization | 41.7 | 30.1 | |||||||
Stock-based compensation expense | 166.7 | 242.2 | |||||||
Payroll tax expense related to stock-based compensation | 4.0 | 3.9 | |||||||
Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods | 0.7 | 86.6 | |||||||
Adjusted EBITDA | $ | (239.7 | ) | $ | (128.1 | ) | |||
Adjusted EBITDA Margin | (48.0 | %) | (13.4 | %) |
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(1) Includes interest expense for Flexdrive vehicles and the convertible senior notes and
(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 |
|||||||||
2020 | 2019 | ||||||||
Adjusted Net Loss | |||||||||
Net Loss | $ | (459.5 | ) | $ | (463.5 | ) | |||
Adjusted to exclude the following: | |||||||||
Amortization of intangible assets | 7.7 | 9.2 | |||||||
Stock-based compensation expense | 166.7 | 242.2 | |||||||
Payroll tax expense related to stock-based compensation | 4.0 | 3.9 | |||||||
Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods | 0.7 | 86.6 | |||||||
Adjusted Net Loss | $ | (280.4 | ) | $ | (121.6 | ) |
Source: Lyft, Inc.