lyft-10q_20190331.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to          

Commission File Number: 001-38846

 

Lyft, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

Delaware

 

20-8809830

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

 

 

185 Berry Street, Suite 5000

San Francisco, California 94107

 

(Address of registrant’s principal executive offices)

 

(844) 250-2773

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

Large accelerated filer

  

Accelerated filer

 

 

 

 

Non-accelerated filer

  

Smaller reporting company

 

 

 

 

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Class A common stock,
par value of $0.00001 per share

 

LYFT

 

Nasdaq Global Select Market

 

As of April 30, 2019, the number of shares of the registrant’s Class A common stock outstanding was 277,828,438 and the number of shares of the registrant’s Class B common stock outstanding was 12,779,709.

 

 

 

 


Table of Contents

 

 

 

Page

PART I

FINANCIAL INFORMATION

3

Item 1.

Financial Statements (unaudited)

3

 

Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018

3

 

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2019 and 2018

4

 

Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2019 and 2018

5

 

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Deficit for the Three Months Ended March 31, 2019 and 2018

6

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018

7

 

Notes to Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4.

Controls and Procedures

36

 

 

 

PART II

OTHER INFORMATION

37

Item 1.

Legal Proceedings

37

Item 1A.

Risk Factors

38

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

72

Item 3.

Defaults Upon Senior Securities

72

Item 4.

Mine Safety Disclosures

73

Item 5.

Other Information

73

Item 6.

Exhibits

73

 

Signatures

75

 

 

 

 


Draft

 

 

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include statements about:

 

our future financial performance, including our expectations regarding our revenue, cost of revenue, operating expenses, including capital expenditures related to asset-intensive offerings, our ability to determine insurance, legal and other reserves and our ability to achieve and maintain future profitability;

 

the sufficiency of our cash, cash equivalents and short-term investments to meet our liquidity needs;

 

the demand for our platform or for Transportation-as-a-Service networks in general;

 

our ability to attract and retain drivers and riders;

 

our ability to develop new offerings and bring them to market in a timely manner and make enhancements to our platform;

 

our ability to compete with existing and new competitors in existing and new markets and offerings;

 

our expectations regarding outstanding litigation, including with respect to the classification of drivers on our platform;

 

our expectations regarding the effects of existing and developing laws and regulations, including with respect to taxation and privacy and data protection;

 

our ability to manage and insure auto-related and operations-related risks associated with our Transportation-as-a-Service network;

 

our expectations regarding new and evolving markets and our efforts to address these markets, including autonomous vehicles and bikes and scooters as well as vehicle service centers;

 

our ability to develop and protect our brand;

 

our ability to maintain the security and availability of our platform;

 

our expectations and management of future growth;

 

our expectations concerning relationships with third parties;

 

our ability to maintain, protect and enhance our intellectual property;

 

our ability to successfully acquire and integrate companies and assets; and

 

the increased expenses associated with being a public company.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

1


The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

 

2


PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Lyft, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except for share and per share data)

(unaudited)

 

 

 

March 31,

2019

 

 

December 31,

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

329,515

 

 

$

517,690

 

Short-term investments

 

 

705,371

 

 

 

1,520,180

 

Prepaid expenses and other current assets

 

 

345,526

 

 

 

282,572

 

Total current assets

 

 

1,380,412

 

 

 

2,320,442

 

Restricted cash and cash equivalents

 

 

172,506

 

 

 

187,374

 

Restricted investments

 

 

993,335

 

 

 

863,713

 

Property and equipment, net

 

 

120,473

 

 

 

109,257

 

Operating lease right of use assets

 

 

304,605

 

 

 

 

Intangible assets, net

 

 

108,572

 

 

 

117,733

 

Goodwill

 

 

150,650

 

 

 

152,085

 

Other assets

 

 

10,354

 

 

 

9,439

 

Total assets

 

$

3,240,907

 

 

$

3,760,043

 

Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

39,394

 

 

$

32,343

 

Insurance reserves

 

 

936,984

 

 

 

810,273

 

Accrued and other current liabilities

 

 

702,009

 

 

 

606,203

 

Operating lease liabilities — current

 

 

73,676

 

 

 

 

Total current liabilities

 

 

1,752,063

 

 

 

1,448,819

 

Operating lease liabilities

 

 

263,755

 

 

 

 

Other liabilities

 

 

4,660

 

 

 

30,458

 

Total liabilities

 

 

2,020,478

 

 

 

1,479,277

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

Redeemable convertible preferred stock, $0.00001 par value, 227,328,900 shares authorized as of March 31, 2019 and December 31, 2018; 219,175,709 issued and outstanding as of March 31, 2019 and December 31, 2018

 

 

5,152,047

 

 

 

5,152,047

 

Stockholders’ deficit

 

 

 

 

 

 

 

 

Common stock, $0.00001 par value, 340,000,000 shares authorized as of March 31, 2019 and December 31, 2018; 35,831,684 and 22,438,472 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

149,999

 

 

 

73,916

 

Accumulated other comprehensive income

 

 

2,186

 

 

 

133

 

Accumulated deficit

 

 

(4,083,803

)

 

 

(2,945,330

)

Total stockholders’ deficit

 

 

(3,931,618

)

 

 

(2,871,281

)

Total liabilities, redeemable convertible preferred stock and stockholders’ deficit

 

$

3,240,907

 

 

$

3,760,043

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

3


 

Lyft, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except for per share data)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Revenue

 

$

776,027

 

 

$

397,188

 

Costs and expenses

 

 

 

 

 

 

 

 

Cost of revenue

 

 

462,857

 

 

 

260,609

 

Operations and support

 

 

187,235

 

 

 

59,905

 

Research and development

 

 

630,960

 

 

 

63,192

 

Sales and marketing

 

 

275,129

 

 

 

168,707

 

General and administrative

 

 

376,736

 

 

 

90,154

 

Total costs and expenses

 

 

1,932,917

 

 

 

642,567

 

Loss from operations

 

 

(1,156,890

)

 

 

(245,379

)

Interest income

 

 

19,654

 

 

 

11,501

 

Other income (expense)

 

 

146

 

 

 

(55

)

Loss before income taxes

 

 

(1,137,090

)

 

 

(233,933

)

Provision for income taxes

 

 

1,383

 

 

 

406

 

Net loss

 

$

(1,138,473

)

 

$

(234,339

)

Net loss per share, basic and diluted

 

$

(48.53

)

 

$

(11.69

)

Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted

 

 

23,459

 

 

 

20,039

 

Stock-based compensation included in costs and expenses:

 

 

 

 

 

 

 

 

Cost of revenue

 

$

41,489

 

 

$

105

 

Operations and support

 

 

51,404

 

 

 

51

 

Research and development

 

 

506,206

 

 

 

728

 

Sales and marketing

 

 

45,111

 

 

 

127

 

General and administrative

 

 

215,276

 

 

 

985

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


 

Lyft, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Net loss

 

$

(1,138,473

)

 

$

(234,339

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

247

 

 

 

49

 

Unrealized gain (loss) on marketable securities, net of taxes

 

 

1,806

 

 

 

(1,062

)

Other comprehensive income (loss)

 

 

2,053

 

 

 

(1,013

)

Comprehensive loss

 

$

(1,136,420

)

 

$

(235,352

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

5


 

Lyft, Inc.

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Deficit

(in thousands)

(unaudited)

 

 

 

Three Months Ended March 31, 2018

 

 

 

Redeemable

Convertible

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Deficit

 

Balances as of December 31, 2017

 

 

199,815

 

 

$

4,284,049

 

 

 

19,916

 

 

$

 

 

$

55,568

 

 

$

(2,033,995

)

 

$

(1,011

)

 

$

(1,979,438

)

Issuance of Series H redeemable convertible preferred stock, net of issuance cost

 

 

1,364

 

 

 

54,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

335

 

 

 

 

 

 

1,169

 

 

 

 

 

 

 

 

 

1,169

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

 

 

 

 

 

 

13

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,996

 

 

 

 

 

 

 

 

 

1,996

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,013

)

 

 

(1,013

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(234,339

)

 

 

 

 

 

(234,339

)

Balances as of March 31, 2018

 

 

201,179

 

 

$

4,338,242

 

 

 

20,251

 

 

$

 

 

$

58,746

 

 

$

(2,268,334

)

 

$

(2,024

)

 

$

(2,211,612

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

 

Redeemable Convertible

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Deficit

 

Balances as of December 31, 2018

 

 

219,176

 

 

$

5,152,047

 

 

 

22,438

 

 

$

 

 

$

73,916

 

 

$

(2,945,330

)

 

$

133

 

 

$

(2,871,281

)

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

7,121

 

 

 

 

 

 

1,599

 

 

 

 

 

 

 

 

 

1,599

 

Issuance of common stock upon settlement of RSUs

 

 

 

 

 

 

 

 

17,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld related to net share settlement

 

 

 

 

 

 

 

 

(11,415

)

 

 

 

 

 

(785,004

)

 

 

 

 

 

 

 

 

(785,004

)

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

859,486

 

 

 

 

 

 

 

 

 

859,486

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,053

 

 

 

2,053

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,138,473

)

 

 

 

 

 

(1,138,473

)

Balances as of March 31, 2019

 

 

219,176

 

 

$

5,152,047

 

 

 

35,832

 

 

$

 

 

$

149,999

 

 

$

(4,083,803

)

 

$

2,186

 

 

$

(3,931,618

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

6


 

Lyft, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(1,138,473

)

 

$

(234,339

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

23,135

 

 

 

1,138

 

Stock-based compensation

 

 

859,486

 

 

 

1,996

 

Amortization of premium on marketable securities

 

 

24

 

 

 

213

 

Accretion of discount on marketable securities

 

 

(10,081

)

 

 

(3,753

)

Other

 

 

103

 

 

 

10

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

(46,307

)

 

 

(7,272

)

Operating lease right-of-use assets

 

 

19,518

 

 

 

 

Accounts payable

 

 

1,161

 

 

 

(13,270

)

Insurance reserves

 

 

126,711

 

 

 

89,730

 

Accrued and other liabilities

 

 

94,238

 

 

 

85,924

 

Lease liabilities

 

 

(14,342

)

 

 

 

Net cash used in operating activities

 

 

(84,827

)

 

 

(79,623

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of marketable securities

 

 

(607,190

)

 

 

(1,198,192

)

Proceeds from sales of marketable securities

 

 

466,174

 

 

 

181,648

 

Proceeds from maturities of marketable securities

 

 

838,177

 

 

 

200,499

 

Purchases of property and equipment and scooter fleet

 

 

(25,126

)

 

 

(3,088

)

Cash paid for acquisitions, net of cash acquired

 

 

(1,711

)

 

 

 

Net cash provided by (used in) investing activities

 

 

670,324

 

 

 

(819,133

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs

 

 

 

 

 

54,196

 

Proceeds from exercise of stock options and other common stock issuances

 

 

1,601

 

 

 

1,346

 

Taxes paid related to net share settlement of equity awards

 

 

(784,724

)

 

 

 

Payment of deferred offering costs

 

 

(5,044

)

 

 

 

Net cash provided by (used in) financing activities

 

 

(788,167

)

 

 

55,542

 

Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents

 

 

102

 

 

 

(46

)

Net decrease in cash, cash equivalents and restricted cash and cash equivalents

 

 

(202,568

)

 

 

(843,260

)

Cash, cash equivalents and restricted cash and cash equivalents

 

 

 

 

 

 

 

 

Beginning of period

 

 

706,486

 

 

 

1,178,919

 

End of period

 

$

503,918

 

 

$

335,659

 

Reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the condensed consolidated balance sheets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

329,515

 

 

$

263,229

 

Restricted cash and cash equivalents

 

 

172,506

 

 

 

72,430

 

Restricted cash, included in prepaid expenses and other current assets

 

 

1,897

 

 

 

 

Total cash, cash equivalents and restricted cash and cash equivalents

 

$

503,918

 

 

$

335,659

 

Non-cash investing and financing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment, and scooter fleet not yet settled

 

$

16,612

 

 

$

10,472

 

Right of use assets acquired under operating leases

 

 

38,488

 

 

 

 

Deferred offering costs in accounts payable and accrued liabilities

 

 

2,240

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

7


 

1.

Description of Business and Basis of Presentation

Organization and Description of Business

Lyft, Inc. (the “Company” or “Lyft”) is incorporated in Delaware with headquarters in San Francisco, California. Lyft operates multimodal transportation networks in the United States and Canada that offer access to a variety of transportation options through the Company’s platform and mobile-based applications.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, comprehensive loss, redeemable convertible preferred stock and stockholders’ deficit, and cash flows for the periods presented, but are not necessarily indicative of the results of operations to be anticipated for any future annual or interim period.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes included in the prospectus dated March 28, 2019, as filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (File No. 333-229996) (the “Prospectus”).

Initial Public Offering

 

The Company’s registration statement on Form S-1 (the “IPO Registration Statement”) related to its initial public offering (“IPO”) was declared effective on March 28, 2019, and the Company’s Class A common stock began trading on the Nasdaq Global Select Market on March 29, 2019. On April 2, 2019, after the quarter end, the Company completed its IPO, in which the Company sold 32,500,000 shares of Class A common stock at price to the public of $72.00 per share. On April 9, 2019, the Company sold an additional 2,996,845 shares of Class A common stock at a price to the public of $72.00 per share pursuant to the exercise of the underwriters’ option to purchase additional shares. The Company received aggregate net proceeds of $2.5 billion after deducting underwriting discounts and commissions of $70.3 million and offering expenses of $7.7 million subject to certain cost reimbursements.

 

Immediately prior to the completion of the IPO, 219,175,709 shares of redeemable convertible preferred stock then outstanding converted into an equivalent number of shares of common stock. Immediately prior to the completion of the IPO, the Company filed its Amended and Restated Certificate of Incorporation, which authorizes a total of 18,000,000,000 shares of Class A common stock, 100,000,000 shares of Class B common stock, and 1,000,000,000 shares of preferred stock. Upon the filing of the Amended and Restated Certificate of Incorporation, 255,007,393 shares of the Company’s common stock then outstanding were automatically reclassified into an equivalent number of shares of the Company’s Class A common stock. Immediately after the reclassification and prior to the completion of the IPO, a total of 12,779,709 shares of Class A common stock held by Logan Green, John Zimmer and their respective affiliated trusts were exchanged for an equivalent number of shares of Class B common stock pursuant to the terms of certain exchange agreements. As a result, following the completion of the IPO, the Company has two classes of authorized and outstanding common stock: Class A common stock and Class B common stock.

 

8


 

The unaudited pro forma condensed consolidated balance sheet data is presented as if the IPO was completed on March 31, 2019, by applying adjustments to the Company’s historical condensed consolidated balance sheet. It reflects (1) the issuance of 35,496,845 shares of Class A common stock for estimated net proceeds of $2.5 billion (of which $7.7 million of offering costs were already included in the March 31, 2019 noncurrent asset balance), (2) the conversion and reclassification of all redeemable convertible preferred stock into an aggregate of 219,175,709 shares of Class A common stock, and (3) the exchange of 12,779,709 shares of Class A common stock held by Logan Green and John Zimmer (the “Co-Founders”) into Class B common stock.

 

 

 

Actual

March 31, 2019

 

 

Pro Forma

Adjustments

 

 

Pro Forma

March 31, 2019

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

$

1,380,412

 

 

$

2,489,638

 

 

$

3,870,050

 

Total noncurrent assets

 

 

1,860,495

 

 

 

(7,690

)

 

 

1,852,805

 

Total assets

 

$

3,240,907

 

 

$

2,481,948

 

 

$

5,722,855

 

Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

2,020,478

 

 

$

(2,240

)

 

$

2,018,238

 

Redeemable convertible preferred stock

 

 

5,152,047

 

 

 

(5,152,047

)

 

 

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock

 

 

 

2

 

 

 

2

 

Class B common stock

 

 

 

 

 

 

 

Additional paid-in capital

 

 

149,999

 

 

 

7,636,233

 

 

 

7,786,232

 

Accumulated other comprehensive income

 

 

2,186

 

 

 

 

 

2,186

 

Accumulated deficit

 

 

(4,083,803

)

 

 

 

 

(4,083,803

)

Total stockholders’ equity (deficit)

 

 

(3,931,618

)

 

 

7,636,235

 

 

 

3,704,617

 

Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)

 

$

3,240,907

 

 

$

2,481,948

 

 

$

5,722,855

 

 

2.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on various factors and information which may include, but are not limited to, history and prior experience, expected future results, new related events and economic conditions, which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates.

Significant items subject to estimates and assumptions include those related to fair value of financial instruments, goodwill and identifiable intangible assets, leases, losses resulting from insurance claims, indirect tax obligations, legal contingencies, valuation allowance for deferred income taxes, valuation of stock-based compensation, and valuation of common stock.

 

Revenue Recognition

The Company generates substantially all of its revenue from its ridesharing marketplace that connects drivers and passengers. The Company also generates revenue from its network of shared bikes and scooters, and its Express Drive program. Beginning in 2018, the Company generated revenue from subscription fees and single-use ride fees paid by riders of shared bikes and scooters to access its network of shared bikes and scooters. Subscription fees are recognized on a straight-line basis over the subscription period. Single-use ride fees are recognized upon completion of each related ride. Revenue from the network of shared bikes and scooters was not material and nil for the three months ended March 31, 2019 and 2018, respectively. For its Express Drive program, the Company primarily generates revenue from lease income earned under an arrangement with one of its third-party Express Drive partners.

The Company recognizes revenue for its rideshare marketplace in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), “Revenue from Contracts with Customers.”

9


 

Rideshare Marketplace

The Company generates revenue from service fees and commissions (collectively, “fees”) paid by drivers for use of the Company’s proprietary technology platform (the “Lyft Platform”) and related activities to connect drivers with passengers to facilitate and successfully complete rides via the Lyft mobile application (the “App”) where Lyft operates as a Transportation Network Company (“TNC”). The Company recognizes revenue upon completion of each ride. Under the Terms of Service (“ToS”), drivers agree that the Company retains the applicable fee as consideration for their use of the Lyft Platform and related activities from the fare and related charges it collects from passengers on behalf of drivers.

Principal vs. Agent Considerations: The Company evaluates the presentation of revenue on a gross vs. net basis based on whether it acts as a principal by controlling the transportation service provided to the passenger or whether it acts as an agent by arranging for third parties to provide the service to the passenger. The Company facilitates the provision of a transportation service by a driver to a passenger (the driver’s customer) in order for the driver to fulfill their contractual promise to the passenger. The driver fulfills their promise to provide a transportation service to their customer through use of the Lyft Platform. While the Company facilitates setting the price for transportation services, the drivers and passengers have the discretion in accepting the transaction price through the platform. The Company is not responsible for fulfilling transportation services being provided to the passenger nor does the Company have inventory risk related to these services. The Company is acting as an agent in facilitating the ability for a driver to provide a transportation service to a passenger. The Company reports revenue on a net basis, reflecting the fee owed to the Company from the driver as revenue, and not the gross amount collected from the passenger. The Company determined that it is not primarily responsible for the services since it does not promise the transportation services, does not contract with drivers to provide transportation services on the Company’s behalf, does not control whether the driver accepts or declines the transportation request via the Lyft Platform, and does not control the provision of transportation services by drivers to passengers at any point in time either before, during or after the ride.

The Company applied the following steps to achieve the core principle of ASC 606:

1. Identification of the Contract, or Contracts, with a Customer: The Company considered the ToS and its customary business practices in identifying the contracts under ASC 606. Drivers accept the ToS with Lyft to use the App. The ToS defines the fees the Company charges drivers for each transaction, each party’s rights and obligations regarding the services to be transferred and payment terms. The driver agrees to perform the transportation service as requested by the passenger upon acceptance of a passenger’s request for a ride via the App. As the Company’s customary business practice, a contract exists between the driver and the Company when the driver’s ability to cancel the ride lapses, which typically is upon pickup of the passenger. The duration of a contract with a customer is typically equal to the duration of a single ride. The Company does not earn any fees from the passengers to access the App and the Company has no obligation to the passengers to provide the ride. The Company collects the fare and related charges from passengers on behalf of drivers using the passenger’s pre-authorized credit card and retains its fees before making the remaining disbursement to drivers; thus the driver’s ability and intent to pay is not subject to significant judgment.

2. Identification of the Performance Obligations in the Contract: The Company provides a service to drivers to complete a successful transportation service for passengers. The service includes on-demand lead generation that assists drivers to find, receive and fulfill on-demand requests from passengers seeking transportation services and related collection activities using the Lyft Platform. These activities are not distinct from each other and are not separate performance obligations. As a result, the Company’s single performance obligation in the transaction is to connect drivers with passengers to facilitate the completion of a successful transportation service for passengers.

3. Determination of the Transaction Price: The Company earns fees from the drivers either as the difference between an amount paid by a passenger based on an up-front quoted fare and the amount earned by a driver based on actual time and distance for the ride or as a fixed percentage of the fare charged to the passenger. In an up-front quoted fare arrangement, as the Company does not control the driver’s actions at any point in the transaction to limit the time and distance for the ride, the Company takes on risks related to the driver’s actions which may not be fully mitigated. The Company earns a variable amount from the drivers and may record a loss from a transaction, which is recorded as a reduction to revenue, in instances where an up-front quoted fare offered to a passenger is less than the amount the Company is committed to pay the driver. The Company records certain payments to drivers, such as refunds and ride incentives, as variable consideration which results in a reduction to the fee earned by the Company at the time such payments are earned by the driver. Taxes, municipal and airport fees assessed by governmental authorities that are both imposed on and are concurrent with specific revenue producing transactions, and collected from drivers and passengers, are excluded from the transaction price. Such amounts are not included as a component of revenue or cost of revenue.

10


 

4. Allocation of the Transaction Price to the Performance Obligations in the Contract: The Company’s single performance obligation in the transaction is to connect drivers with passengers to facilitate the completion of a successful transportation service for passengers and, as a result, there is no allocation of the transaction price.

5. Recognition of Revenue when, or as, the Company Satisfies a Performance Obligation: Revenue is recognized at the time the performance obligation is satisfied by transferring the control of the promised service to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for the service. The Company recognizes revenue upon completion of a ride as its performance obligation is satisfied upon the completion of the ride. The Company does not have contract assets or contract liabilities as the payment of the transaction price is concurrent with the fulfillment of the services. At the time of ride completion, the Company has the right to receive payment for the services rendered. Accordingly, there are no partially satisfied or unsatisfied performance obligations for the three months ended March 31, 2019 and 2018.

As part of the adoption of ASC 606, the Company evaluated the use of practical expedients as required under the standard. New driver referral bonuses paid are contingent upon a new driver completing a certain number of rides and represent the incremental cost of obtaining a contract with a customer. The Company applied the practical expedient under ASC 606-10-45-1 and expenses new driver referral bonuses as sales and marketing expense when the referral bonuses are earned because the amortization period would be one year or less. The Company has no significant financing components with customers and did not utilize the practical expedient under ASC 606-10-32-18.

Express Drive Program Revenue

Under the Express Drive program, the Company connects drivers who need access to a car with third-party rental car companies. The Company facilitates the car rental transactions between car rental companies and drivers. During 2018, the Company expanded its Express Drive program with an Express Drive partner, a third-party rental car provider (the “Select Express Drive Partner”). Under the Company’s agreement with the Select Express Drive Partner (the “head lease”), the Company is required to pay fleet operating costs over periods ranging from two to three years for vehicles that the Company has committed will remain in a dedicated fleet to be ready to be rented by drivers using the Lyft Platform. Fleet operating costs include monthly fixed payments and other vehicle operating costs. Such payments are required to be made regardless of whether the vehicles are rented by drivers using the Lyft Platform. Drivers who rent vehicles through the arrangement with the Select Express Drive Partner are charged rental fees for which the Company collects from the driver. The Company collects rental fees by deducting such amounts from the driver’s earnings on the Lyft Platform, or through charging the driver’s credit card.

The Company is a principal in car rental transactions involving the Select Express Drive Partner as the Company becomes a lessee for each vehicle prior to its rental by a driver and is committed to the payment of fixed monthly amounts and other fleet operating costs. The Company subleases the vehicles to drivers when they are rented by drivers and, as a result, the Company considers itself to be the accounting sublessor in its arrangements with drivers. Vehicle leases with the Select Express Drive Partner are classified as operating leases and, accordingly, each sublease representing a car rental transaction with a driver is also an operating lease. Sublease income (revenue) and head lease expense for the Company’s transactions involving the Select Express Drive Partner are recognized on a gross basis in the condensed consolidated financial statements. The revenue recognized under the Select Express Drive Partner program was $17.5 million and $2.6 million for the three months ended March 31, 2019 and 2018, respectively.

Incentive Programs

The Company offers incentives to attract drivers, passengers and riders of shared bikes and scooters (“Light Vehicle renters”) to use the Lyft Platform. Drivers generally receive cash incentives while passengers and Light Vehicle renters generally receive free or discounted rides under such incentive programs. Incentives provided to drivers and Light Vehicle renters, the customers of the Company, are accounted for as a reduction of the transaction price. As the passengers are not the Company’s customers, incentives provided to passengers are generally recognized as sales and marketing expense except for certain pricing programs described below.

Driver Incentives

The Company offers various incentive programs to drivers, including minimum guaranteed payments, volume-based discounts and performance-based bonus payments. These driver incentives are similar to retrospective volume-based rebates and represent variable consideration that is typically settled within a week. The Company reduces the transaction price by the estimated amount of the incentives expected to be paid upon completion of the performance criteria by applying the most likely outcome method. Therefore, such driver incentives are recorded as a reduction to revenue. Driver incentives are recorded as a reduction to revenue if the Company does not receive a distinct good or service in exchange for the payment or cannot reasonably estimate the fair value of the good or service received. Driver incentives for referring new drivers or passengers are accounted for as sales and marketing expense. The amount recorded as an expense is the lesser of the amount of the payment or the established fair value of the benefit received. The fair value of the benefit is established using amounts paid to third parties for similar services.

11


 

Passenger Incentives

The Company has several passenger incentive programs, which are offered to encourage passenger activity on the Lyft Platform. Generally, the passenger incentive programs are as follows:

 

(i)

Market-wide marketing promotions and discounts on shared rides. Market-wide promotions reduce the fare charged by drivers to passengers for all or substantially all rides in a specific market. This type of incentive effectively reduces the overall pricing of the service provided by drivers for that specific market and the gross fare charged by the driver to the passenger, and thereby results in a lower fee earned by the Company. In addition, discounted pricing on shared rides may result in a reduced fee earned by the Company. Accordingly, the Company records these types of incentives as a reduction to revenue at the date it records the corresponding revenue transaction.

 

(ii)

Targeted marketing promotions. Targeted marketing promotions are used in newly launched markets but may also be used in mature markets from time to time. An example is a promotion where the Company offers a number of discounted rides (capped at a given number of rides) which are valid only during a limited period of time to a targeted group of occasional passengers. The Company believes that the incentives that provide consideration to passengers to be applied to a limited number of rides are similar to marketing coupons. These incentives differ from the market-wide marketing promotions because they do not reduce the overall pricing from the service provided by drivers for a specific market. The intent of these incentives is to promote the use of the Lyft Platform to the targeted group of passengers.

During the promotion period, passengers not utilizing an incentive would be charged the full fare. These incentives represent marketing costs. When a passenger redeems the incentive, the Company recognizes revenue equal to the transaction price and the cost of the incentive is recorded as sales and marketing expense.

 

(iii)

Passenger referral programs. Under the passenger referral program, the referring passenger (the referrer) earns referral coupons when a new passenger (the referee) completes their first ride on the Lyft Platform. The Company records the incentive as a liability at the time the incentive is earned by the referrer with the corresponding charge recorded to sales and marketing expense. Referral coupons typically expire within one year. The Company estimates breakage using its historical experience. As of March 31, 2019 and 2018 the passenger referral coupon liability was not material.

Light Vehicle Renter Incentives

Incentives offered to Light Vehicle renters to access the Company’s network of shared bikes and scooters were not material for the three months ended March 31, 2019 and 2018.

For the three months ended March 31, 2019 and 2018, in relation to the driver, passenger and Light Vehicle renter incentive programs, the Company recorded $139.6 million and $133.5 million as a reduction to revenue and $120.9 million and $61.0 million as sales and marketing expense, respectively.

 

Stock-Based Compensation

The Company estimates the fair value of stock options granted to employees and directors using the Black-Scholes option-pricing model. The fair value of stock options that is expected to vest is recognized as compensation expense on a straight-line basis over the requisite service period. The fair value of restricted stock units (“RSUs”) is estimated based on the fair market value of the Company’s common stock on the date of grant, which subsequent to the IPO will be determined based on the closing price of the Company’s Class A common stock as reported on the date of grant. Prior to the IPO, the Company granted RSUs which vest upon the satisfaction of both a service condition and a performance condition.

The stock-based compensation expense is based on awards ultimately expected to vest and reflects estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates.

 

Compensation expense for RSUs with service and performance conditions is amortized on a graded basis over the requisite service period as long as the performance condition in the form of a specified liquidity event is probable to occur. The liquidity event condition was satisfied upon the effectiveness of the IPO Registration Statement on March 28, 2019. On that date the Company recorded a cumulative stock-based compensation expense of $857.2 million using the accelerated attribution method for the RSUs for which the service condition was satisfied as of March 28, 2019. The remaining unrecognized stock-based compensation expense related to these RSUs will be recorded over their remaining requisite service periods.

 

12


 

Insurance Reserves

The Company utilizes both a wholly owned captive insurance subsidiary and third-party insurance, which may include deductibles and self-insured retentions, to insure or reinsure costs including auto liability, uninsured and underinsured motorist, auto physical damage and general business liabilities up to certain limits. The recorded liabilities reflect the estimated ultimate cost for claims incurred but not paid and claims that have been incurred but not yet reported and any estimable administrative run-out expenses related to the processing of these outstanding claim payments. Liabilities are evaluated for appropriateness with claims reserve valuations provided by an independent third-party actuary on a quarterly basis. To limit exposure to some risks, the Company maintains additional insurance coverage with varying limits and retentions. The Company cannot predict whether this insurance will be adequate to cover all potential hazards incidental to its business.

Liability insurance claims may take several years to completely settle, and the Company has limited historical loss experience. Because of the limited operational history, the Company makes certain assumptions based on currently available information and industry statistics and utilizes actuarial models and techniques to estimate the reserves. A number of factors can affect the actual cost of a claim, including the length of time the claim remains open, economic and healthcare cost trends and the results of related litigation. Furthermore, claims may emerge in future years for events that occurred in a prior year at a rate that differs from previous actuarial projections. Accordingly, actual losses may vary significantly from the estimated amounts reported in the financial statements. Reserves are continually reviewed and adjusted as necessary as experience develops or new information becomes known. However, ultimate results may differ from the Company’s estimates, which could result in losses over the Company’s reserved amounts. Such adjustments are recorded in cost of revenue or general and administrative expenses depending on the nature of the reserves.

 

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The new guidance amended guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For available for sale debt securities, credit losses will be presented as an allowance rather than as a write-down. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities. The Company is currently assessing the impact of adopting this standard on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs incurred in a hosting arrangement that is a service contract should be presented as a prepaid asset in the balance sheet and expensed over the term of the hosting arrangement to the same line item in the statement of operations as the costs related to the hosting fees. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities including adoption in any interim period. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after adoption. The Company is currently assessing the impact of adopting this standard on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820).” This standard modifies disclosure requirements related to fair value measurement and is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. The standard also allows for early adoption of any removed or modified disclosures upon issuance while delaying adoption of the additional disclosures until their effective date. The Company is currently assessing the impact of adopting this standard on its condensed consolidated financial statements.

Recently Adopted Accounting Pronouncements

In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The Company adopted this ASU as of January 1, 2019, which did not have a material impact on its condensed consolidated financial statements.

13


 

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842). This ASU and subsequently issued amendments require a lessee to recognize leases with the term greater than 12 months on the balance sheet. The standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-11, “Targeted ImprovementsLeases (Topic 842).” This update provides an optional transition method that allows entities to elect to apply the standard using the modified retrospective approach at its effective date, versus recasting the prior years presented. If elected, an entity would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. The Company adopted the new standard as of January 1, 2019 using the transition method that provides for a cumulative-effect adjustment to retained earnings upon adoption. There was no impact on the Company’s accumulated deficit as of January 1, 2019 as a result of the adoption of this standard. The condensed consolidated financial statements for the quarter ended March 31, 2019 are presented under the new standard, while the comparative period presented is not adjusted and continues to be reported in accordance with the Company’s historical accounting policy. The adoption of the new lease standard resulted in the recognition of operating lease right-of-use assets of $285.6 million and operating lease liabilities, including operating lease liabilities current, of $314.1 million as of January 1, 2019. In connection with the adoption of this standard, deferred rent of $28.5 million, which was previously recorded in accrued and other current liabilities and in other long-term liabilities on the consolidated balance sheet as of December 31, 2018, was derecognized. See Note 5, “Leases,” for more information.

In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This standard clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The Company adopted this ASU on a retrospective basis as of January 1, 2019, which did not have any impact on its condensed consolidated financial statements.

 

 

3.

Supplemental Financial Statement Information

Cash Equivalents and Short-Term Investments

The following tables summarize the cost or amortized cost, gross unrealized gain, gross unrealized loss and fair value of the Company’s cash equivalents and short-term investments as of the dates indicated (in thousands):

 

 

 

March 31, 2019

 

 

 

Cost or

Amortized

 

 

Unrealized

 

 

Estimated

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Unrestricted Balances (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

1,406

 

 

$

 

 

$

 

 

$

1,406

 

Certificates of deposit

 

 

168,700

 

 

 

203

 

 

 

 

 

 

168,903

 

Commercial paper

 

 

441,803

 

 

 

190

 

 

 

(32

)

 

 

441,961

 

Corporate bonds

 

 

94,415

 

 

 

93

 

 

 

(1

)

 

 

94,507

 

Total unrestricted cash equivalents and short-term investments

 

 

706,324

 

 

 

486

 

 

 

(33

)

 

 

706,777

 

Restricted Balances (2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

2,822

 

 

 

 

 

 

 

 

 

2,822

 

Certificates of deposit

 

 

348,007

 

 

 

364

 

 

 

(2

)

 

 

348,369

 

Commercial paper

 

 

696,251

 

 

 

176

 

 

 

(90

)

 

 

696,337

 

Corporate bonds

 

 

62,204

 

 

 

58

 

 

 

(8

)

 

 

62,254

 

Total restricted cash equivalents and investments

 

 

1,109,284

 

 

 

598

 

 

 

(100

)

 

 

1,109,782

 

Total unrestricted and restricted cash equivalents and investments

 

$

1,815,608

 

 

$

1,084

 

 

$

(133

)

 

$

1,816,559

 

 

(1)

Included in cash and cash equivalents and short-term investments in the Company’s condensed consolidated balance sheet as of March 31, 2019 in addition to $328.1 million of cash.

(2)

Included in restricted cash and cash equivalents and restricted investments in the Company’s condensed consolidated balance sheet as of March 31, 2019 in addition to $58.0 million of restricted cash.

(3)

Included in prepaid expenses and other current assets in the Company’s condensed consolidated balance sheet as of March 31, 2019 is $1.9 million of restricted cash.

14


 

 

 

 

December 31, 2018

 

 

 

Cost or

Amortized

 

 

Unrealized

 

 

Estimated

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Unrestricted Balances (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

38,528

 

 

$

 

 

$

 

 

$

38,528

 

Certificates of deposit

 

 

497,748

 

 

 

19

 

 

 

(213

)

 

 

497,554

 

Commercial paper