8-K
false 0001759509 0001759509 2020-02-07 2020-02-07

 

 

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): February 7, 2020

 

Lyft, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-38846

 

20-8809830

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer
Identification No.)

185 Berry Street, Suite 5000

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

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

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 February 11, 2020, Lyft, Inc. (the “Company” or “Lyft”) issued a press release announcing its financial results for the quarter and fiscal year ended December 31, 2019. 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 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

In connection with consummation of the acquisition (the “Acquisition”) of all of the outstanding membership interests of Flexdrive Services, LLC (“Flexdrive”) by Lyft, on February 7, 2020 for approximately $20 million, pursuant to which Flexdrive became a wholly-owned subsidiary of Lyft, Flexdrive remained responsible for obligations under Flexdrive’s Loan and Security Agreement, as amended, with Hyundai Capital America (“Lender”) (the “HCA Agreement”). Further, in connection with the Acquisition, Lyft agreed to guarantee the obligations of Flexdrive under (i) the Vehicle Lease Agreement, dated as of October 31, 2017, as amended, by and between Flexdrive and Automotive Rentals, Inc. (“ARI”) (the “ARI Lease Agreement”), (ii) the Master Vehicle Acquisition Financing and Security Agreement, dated as of February 7, 2020, as amended, by and between Flexdrive and ARI (the “ARI Loan Agreement”), and (iii) the Vehicle Procurement Agreement, dated as of February 7, 2020, by and between Flexdrive and ARI (the “Procurement Agreement”).

HCA Agreement

Pursuant to the HCA Agreement, Lender has previously and will continue to advance loans to Flexdrive in an amount up to the total line of credit to purchase new Hyundai and Kia vehicles. At the time of the Acquisition, the HCA Agreement consisted of a line of credit of $300 million, of which approximately $104 million was outstanding, which amounts are secured by all equipment and inventory financed under the HCA Agreement, as well as certain other rights and agreements related to such equipment and inventory (the “HCA Loan”). Interest on the HCA Loan is set with respect to each advance made under the HCA Agreement. Interest and principal payments are due monthly for the term specified in the advance, but must be paid in full no later than 48 months from the date of the advance. In addition, principal amounts outstanding under the HCA Loan may be fully or partially prepaid at the option of Flexdrive and must be prepaid under certain circumstances.

The HCA Agreement also contains customary affirmative and negative covenants that, among other things, limit Flexdrive’s ability to enter into certain acquisitions or consolidations or engage in certain asset dispositions. Upon the occurrence of certain events of default, including bankruptcy and insolvency events with respect to Flexdrive or Lyft, all amounts due under the HCA Agreement may become immediately due and payable, among other remedies.

ARI Lease Agreement, ARI Loan Agreement and Procurement Agreement

Under the ARI Lease Agreement, ARI will continue to procure and lease to Flexdrive such vehicles as Flexdrive may request. Each lease issued pursuant to the ARI Lease Agreement is subject to a separate motor vehicle lease agreement, without a pre-set aggregate lease value cap. At the time of the Acquisition, the net book value of all vehicles leased pursuant to the ARI Lease Agreement was approximately $106 million. In Lyft’s Registration Statement on Form S-1 effective March 28, 2019 and Lyft’s Quarterly Reports on Form 10-Q filed on May 14, 2019, August 13, 2019 and November 4, 2019, Flexdrive is identified as the Select Express Drive Partner. Flexdrive rentals are reflected in Lyft’s financial results as operating leases, and revenue and lease expenses have been recognized on a gross basis in Lyft’s income statement.

Each loan issued pursuant to the ARI Loan Agreement is subject to a separate motor vehicle loan agreement, without a pre-set aggregate loan cap. At the time of the Acquisition, approximately $76 million in vehicle loans was outstanding pursuant to the ARI Loan Agreement.

Under the Procurement Agreement, ARI provides certain procurement services and fleet management services to Flexdrive.

The obligations of Flexdrive under the ARI Lease Agreement, the ARI Loan Agreement and the Procurement Agreement are guaranteed by Lyft.


Item 7.01 Regulation FD Disclosure

On February 11, 2020, 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 blog (blog.lyft.com) and its Twitter account (@lyft) 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 Item 2.02 and Item 7.01 of 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 (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits:

Exhibit

    No.    

   

Exhibit Description

         
 

99.1

   

Press Release, dated February 11, 2020

         
 

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: February 11, 2020

 

 

 

/s/ Brian Roberts

 

 

 

Brian Roberts

 

 

 

Chief Financial Officer

EX-99.1

Exhibit 99.1

 

LOGO

Lyft Announces Record Fourth Quarter and Fiscal Year Results

Surpasses $1 billion in quarterly revenue, up 52% year-over-year

Fiscal 2019 revenue of $3.6 billion up 68% year-over-year

Issues outlook for fiscal 2020

SAN FRANCISCO, CA, February 11, 2020 - Lyft, Inc. (Nasdaq:LYFT) today announced financial results for its fourth quarter and fiscal year ended December 31, 2019.

Fourth Quarter 2019 Financial Highlights

 

 

Lyft reported Q4 2019 revenue of $1,017.1 million versus $669.5 million in the fourth quarter of 2018, an increase of 52 percent year-over-year.

 

 

Net loss for Q4 2019 was $356.0 million versus a net loss of $248.9 million in the same period of 2018. Net loss for Q4 includes $207.3 million of stock-based compensation and related payroll tax expenses, as well as $18.8 million related to changes to the liabilities for insurance required by regulatory agencies attributable to historical periods. Net loss margin for Q4 was 35.0 percent and 37.2 percent in the fourth quarter of 2018.

 

 

Adjusted net loss for Q4 2019 was $121.4 million versus an adjusted net loss of $238.5 million in the fourth quarter of 2018. Adjusted net loss is adjusted for amortization of intangible assets, stock-based compensation expense, payroll tax expense related to stock-based compensation, changes to the liabilities for insurance required by regulatory agencies attributable to historical periods, and expenses related to acquisitions.

 

 

Lyft reported Contribution for Q4 2019 of $549.5 million versus $304.7 million in the fourth quarter of 2018, up 80 percent year-over-year. Contribution Margin for Q4 increased to 54.0 percent from 45.5 percent in the fourth quarter of 2018.

 

 

Adjusted EBITDA Loss for Q4 2019 was $130.7 million versus $251.1 million in the fourth quarter of 2018. Adjusted EBITDA Loss Margin for Q4 was 12.9 percent versus 37.5 percent in the fourth quarter of 2018.

Fiscal Year 2019 Financial Highlights

 

 

Lyft reported fiscal year 2019 revenue of $3.6 billion versus $2.2 billion in fiscal year 2018, an increase of 68 percent year-over-year.

 

 

Net loss for fiscal year 2019 was $2.6 billion versus a net loss of $0.9 billion in fiscal year 2018. Net loss for fiscal year 2019 includes $1.6 billion of stock-based compensation and related payroll tax expenses, as well as $270.3 million related to changes to the liabilities for insurance required by regulatory agencies attributable to historical periods. Net loss margin for fiscal year 2019 was 72.0 percent and 42.3 percent in fiscal year 2018.

 

 

Adjusted net loss for fiscal year 2019 was $651.8 million versus an adjusted net loss of $888.7 million in fiscal year 2018. Adjusted net loss is adjusted for amortization of intangible assets, stock-based compensation expense, payroll tax expense related to stock-based compensation, changes to the liabilities for insurance required by regulatory agencies attributable to historical periods, and expenses related to acquisitions.

 

 

Lyft reported Contribution for fiscal year 2019 of $1.8 billion versus $0.9 billion in fiscal year 2018, up 97 percent year-over-year. Contribution Margin for fiscal year 2019 increased to 50.1 percent from 42.7 percent versus fiscal year 2018.

 

 

Adjusted EBITDA Loss for fiscal year 2019 was $678.9 million versus $943.5 million in fiscal year 2018. Adjusted EBITDA Loss Margin for fiscal year 2019 was 18.8 percent versus 43.7 percent in fiscal year 2018.

 

    

Fiscal 2018

Q4

  

Fiscal 2019

Q4

  

year-over-year

change

Active Riders (in thousands)

   18,586    22,905    23%

Revenue per Active Rider

   $36.02    $44.40    23%
  

 

  

 

  

 

Revenue (in millions)

   $669.5    $1,017.1    52%


“Fiscal 2019 was an exceptional year across the board. We significantly improved our path to profitability while simultaneously reaching critical milestones toward our long-term strategy.” said Logan Green, co-founder and chief executive officer of Lyft. “Continued strength in core rideshare drove our industry-leading growth, led by product innovation and operational excellence on every facet of our robust transportation platform. With the Lyft transportation network, we are already helping over 22 million consumers get around in a much more simple and economical way. Today, people can go to the Lyft app and choose their preferred mode of transportation, including cars, bikes, scooters, and public transit - all in one place.”

“During the year, we focused on profitable growth and consistently improved adjusted EBITDA margin in each of the last four consecutive quarters, outperforming our outlook,” said Brian Roberts, chief financial officer of Lyft. “We grew annual revenues by 68 percent year-over-year and demonstrated operating leverage that delivered over 50 percent improvement in annual adjusted EBITDA margin. Our consistent outperformance has been driven by our core values, operational excellence, and focused execution. As we begin 2020, we remain dedicated to delivering on our commitments to all of our stakeholders.”

Outlook:

For Q1, we anticipate:

 

 

Revenue to be between $1,055 million and $1,060 million

 

 

Q1 revenue growth to be between 36% and 37% year-over-year

 

 

Adjusted EBITDA loss to be between $140 million and $145 million

For FY 2020, we anticipate:

 

 

Revenue to be between $4,575 million and $4,650 million

 

 

Annual revenue growth rate to be between 27% and 29%

 

 

Adjusted EBITDA loss to be between $450 million and $490 million

For more information regarding the non-GAAP financial measures discussed in this earnings release, please see “GAAP to non-GAAP Reconciliations” below. Guidance for Adjusted EBITDA loss excludes interest income, other income (expense), provision for income taxes, depreciation and amortization, costs related to acquisitions, 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. We have not reconciled Adjusted EBITDA guidance to GAAP net income (loss) because we do not provide guidance on GAAP net income (loss) or the reconciling items between Adjusted EBITDA and GAAP net income (loss) as a result of the uncertainty regarding, and the potential variability of, certain of these items, such as stock-based compensation expense. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort. A reconciliation of historical Adjusted EBITDA is below.


Webcast

Lyft will host a webcast today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss these financial results and business highlights. To listen to a live audio webcast, please visit the Company’s Investor Relations page at https://investor.lyft.com/. The archived webcast will be available on the Company’s Investor Relations page shortly after the call.

About Lyft

Lyft was founded in 2012 and provides millions of rides daily as one of the largest and fastest-growing transportation networks in the United States and Canada. As the world shifts away from car ownership to transportation-as-a-service, Lyft is at the forefront of this massive societal change. Our transportation network brings together rideshare, bikes, scooters, car rentals and transit all in one app. We are singularly driven by our mission: to improve people’s lives with the world’s best transportation.

Available Information

Lyft intends to use its filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, the investor relations section of its website (investor.lyft.com), its blog (blog.lyft.com) and its Twitter account (@lyft) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Lyft’s future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “going to,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern Lyft’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Lyft’s future profitability and timing for profitability, Lyft’s future financial and operating performance, including its outlook and guidance for the first quarter of 2020 and full year 2020, demand for Lyft’s products and services and the markets in which Lyft operates and the future of Transportation-as-a-Service. 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 regarding our ability to forecast our business due to our limited operating history, our competition, fluctuations in the ridesharing market, our ability to attract and retain drivers and riders and our partner relationships. 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 Lyft’s prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on March 29, 2019, in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and September 30, 2019, and in our Annual Report on Form 10-K for the full year 2019 that will be filed with the SEC by March 30, 2020. 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.


In the fourth quarter of 2019, Lyft updated the definition of Active Riders to include riders who have migrated from the legacy Motivate platform to the Lyft platform, which resulted in a 0.01% increase or an additional 1,167 Active Riders in the fourth quarter. Prior to the fourth quarter of 2019, for Motivate, only riders that had taken a ride or rented a bike or scooter through the Lyft App during the quarter were counted as an Active Rider. This change had no impact on the Active Riders disclosed in any of the prior periods presented.

Non-GAAP Financial Measures

To supplement Lyft’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Lyft considers certain financial measures that are not prepared in accordance with GAAP, including adjusted net loss, adjusted net loss per share, Contribution, Contribution Margin, Adjusted EBITDA and Adjusted EBITDA Margin. Lyft defines adjusted net loss as net loss adjusted for amortization of intangible assets, stock-based compensation expense, payroll tax expense related to stock-based compensation, changes to the liabilities for insurance required by regulatory agencies attributable to historical periods, and cost related to acquisitions; Lyft defines adjusted net loss per share by dividing adjusted net loss by weighted-average shares outstanding; Lyft defines Contribution as revenue less cost of revenue, adjusted to exclude the following items from cost of revenue: amortization of intangible assets, stock-based compensation expense, payroll tax expense related to stock-based compensation, and changes to the liabilities for insurance required by regulatory agencies attributable to historical periods; Lyft defines Contribution Margin for a period as Contribution for the period divided by Revenue for the same period. Lyft defines Adjusted EBITDA as net loss adjusted to exclude interest income, other income (expense), net, provision for income taxes, depreciation and amortization, costs related to acquisitions, stock-based compensation expense, payroll tax expense related to stock-based compensation, and changes to the liabilities for insurance required by regulatory agencies attributable to historical periods. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.

Lyft records historical changes to liabilities for insurance required by regulatory agencies for financial reporting purposes in the quarter of positive or adverse development even though such development may be related to claims that occurred in prior periods. For example, if in the first quarter of a given year, the cost of claims or our estimates for our cost of claims grew by $1 million for claims related to the prior fiscal year or earlier, the expense would be recorded for GAAP purposes within the first quarter instead of in the results of the prior period. Lyft believes these prior period changes to insurance liabilities do not illustrate the current period performance of Lyft’s ongoing operations since these prior period changes relate to claims that could potentially date back years. Lyft has limited ability to influence the ultimate development of historical claims. Accordingly, including the prior period changes would not illustrate the performance of Lyft’s ongoing operations or how the business is run or managed by Lyft. For consistency, Lyft does not adjust the calculation of adjusted net loss, adjusted net loss per share, Contribution and Adjusted EBITDA for any prior period based on any positive or adverse development that occurs subsequent to the quarter end. Lyft believes the adjustment to exclude the historical changes to liabilities for insurance required by regulatory agencies from adjusted net loss, adjusted net loss per share, Contribution and Adjusted EBITDA is useful to investors by enabling them to better assess Lyft’s operating performance in the context of current period results.

Lyft uses adjusted net loss, adjusted net loss per share, Contribution, Contribution Margin, Adjusted EBITDA and Adjusted EBITDA Margin in conjunction with GAAP measures as part of Lyft’s overall assessment of its performance, including the preparation of Lyft’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of Lyft’s business strategies, and to communicate with Lyft’s board of directors concerning Lyft’s financial performance. Adjusted net loss, adjusted net loss per share, Contribution and Contribution Margin are measures used by our management to understand and evaluate our operating performance and trends. Lyft believes Contribution and Contribution Margin are key measures of Lyft’s ability to achieve profitability and increase it over time. Adjusted net loss, adjusted net loss per share, Adjusted EBITDA and Adjusted EBITDA Margin are key performance measures that Lyft’s management uses to assess Lyft’s operating performance and the operating leverage in Lyft’s business. Because Adjusted EBITDA and Adjusted EBITDA Margin facilitate internal comparisons of our historical operating performance on a more consistent basis, Lyft uses these measures for business planning purposes.


Lyft’s definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, adjusted net loss, adjusted net loss per share, 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   
Catherine Buan / Shawn Woodhull    Adrian Durbin / Alexandra LaManna
investor@lyft.com    press@lyft.com


LYFT, INC.

Consolidated Balance Sheets

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

(unaudited)

 

     December 31,  
     2019     2018  
Assets     

Current assets

    

Cash and cash equivalents

   $ 358,319   $ 517,690

Short-term investments

     2,491,805     1,520,180

Prepaid expenses and other current assets

     397,239     282,572
  

 

 

   

 

 

 

Total current assets

     3,247,363     2,320,442

Restricted cash and cash equivalents

     204,976     187,374

Restricted investments

     1,361,045     863,713

Property and equipment, net

     188,603     109,257

Operating lease right of use assets

     441,258     —    

Intangible assets, net

     82,919     117,733

Goodwill

     158,725     152,085

Other assets

     6,494     9,439
  

 

 

   

 

 

 

Total assets

   $ 5,691,383   $ 3,760,043
  

 

 

   

 

 

 

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

    

Current liabilities

    

Accounts payable

   $ 38,839   $ 32,343

Insurance reserves

     1,378,462     810,273

Accrued and other current liabilities

     939,865     606,203

Operating lease liabilities — current

     94,199     —    
  

 

 

   

 

 

 

Total current liabilities

     2,451,365     1,448,819

Operating lease liabilities

     382,077     —    

Other liabilities

     3,857     30,458
  

 

 

   

 

 

 

Total liabilities

     2,837,299     1,479,277
  

 

 

   

 

 

 

Commitments and contingencies (Note 8)

    

Redeemable convertible preferred stock, $0.00001 par value; no and 227,328,900 shares authorized as of December 31, 2019 and December 31, 2018, respectively; no and 219,175,709 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively

     —         5,152,047
  

 

 

   

 

 

 

Stockholders’ equity (deficit)

    

Preferred stock, $0.00001 par value; 1,000,000,000 and no shares authorized as of December 31, 2019 and December 31, 2018, respectively; no shares issued and outstanding as of December 31, 2019 and December 31, 2018

     —         —    

Common stock, $0.00001 par value; 18,000,000,000 Class A shares and 340,000,000 shares authorized, 293,793,151 Class A shares and 22,438,472 shares issued and outstanding, as of December 31, 2019 and December 31, 2018, respectively; 100,000,000 and no Class B shares authorized, 8,802,629 and no Class B shares issued and outstanding, as of December 31, 2019 and December 31, 2018, respectively

     3     —    

Additional paid-in capital

     8,398,927     73,916

Accumulated other comprehensive income

     2,725     133

Accumulated deficit

     (5,547,571     (2,945,330
  

 

 

   

 

 

 

Total stockholders’ equity (deficit)

     2,854,084     (2,871,281
  

 

 

   

 

 

 

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

   $ 5,691,383   $ 3,760,043
  

 

 

   

 

 

 


LYFT, INC.

Consolidated Statements of Operations

(in thousands, except for per share data)

(unaudited)

 

     Year Ended December 31,  
     2019     2018     2017  

Revenue

   $ 3,615,960   $ 2,156,616   $ 1,059,881
  

 

 

   

 

 

   

 

 

 

Costs and expenses

      

Cost of revenue

     2,176,469     1,243,400     659,533

Operations and support

     636,116     338,402     183,513

Research and development

     1,505,640     300,836     136,646

Sales and marketing

     814,122     803,751     567,015

General and administrative

     1,186,093     447,938     221,446
  

 

 

   

 

 

   

 

 

 

Total costs and expenses

     6,318,440     3,134,327     1,768,153
  

 

 

   

 

 

   

 

 

 

Loss from operations

     (2,702,480     (977,711     (708,272

Interest income

     102,506     66,462     20,243

Other income, net

     89     652     284
  

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (2,599,885     (910,597     (687,745

Provision for income taxes

     2,356     738     556
  

 

 

   

 

 

   

 

 

 

Net loss

   $ (2,602,241   $ (911,335   $ (688,301
  

 

 

   

 

 

   

 

 

 

Net loss per share, basic and diluted

   $ (11.44   $ (43.04   $ (35.53
  

 

 

   

 

 

   

 

 

 

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

     227,498     21,176     19,371
  

 

 

   

 

 

   

 

 

 

Stock-based compensation included in costs and expenses:

      

Cost of revenue

   $ 81,321   $ 501   $ 464

Operations and support

     75,212     177     2,549

Research and development

     971,941     4,107     2,379

Sales and marketing

     72,046     261     415

General and administrative

     398,791     3,531     3,739


LYFT, INC.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

     Year Ended December 31,  
     2019     2018     2017  

Cash flows from operating activities

      

Net loss

   $ (2,602,241   $ (911,335   $ (688,301

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

      

Depreciation and amortization

     108,429     18,752     2,611

Stock-based compensation

     1,599,311     8,577     9,546

Amortization of premium on marketable securities

     597     473     948

Accretion of discount on marketable securities

     (39,285     (23,605     (5,542

Loss on disposal of assets

     36,541     —         —    

Other

     (875     989     —    

Changes in operating assets and liabilities

      

Prepaid expenses and other assets

     (119,453     (75,640     (111,772

Operating lease right-of-use assets

     108,600     —         —    

Accounts payable

     5,067     (40,811     21,384

Insurance reserves

     568,190     433,735     244,587

Accrued and other liabilities

     332,363     308,192     133,013

Lease liabilities

     (102,946     —         —    
  

 

 

   

 

 

   

 

 

 

Net cash used in operating activities

     (105,702     (280,673     (393,526
  

 

 

   

 

 

   

 

 

 

Cash flows from investing activities

      

Purchases of marketable securities

     (6,448,895     (5,454,118     (2,559,423

Purchase of term deposit

     (142,811     —         —    

Proceeds from sales of marketable securities

     1,092,978     900,361     872,298

Proceeds from maturities of marketable securities

     4,071,165     3,838,464     707,722

Purchases of property and equipment and scooter fleet

     (178,088     (68,668     (7,537

Purchases of other intangible assets

     —         (2,200     (4,486

Cash paid for acquisitions, net of cash acquired

     (12,323     (257,591     —    

Other investing activities

     7,131     —         —    
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (1,610,843     (1,043,752     (991,426
  

 

 

   

 

 

   

 

 

 

Cash flows from financing activities

      

Proceeds from issuance of common stock in initial public offering, net of underwriting commissions, offering costs and reimbursements

     2,484,029     —         —    

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

     —         842,658     2,045,279

Proceeds from exercise of stock options and other common stock issuances

     33,062     9,986     3,672

Payment of deferred offering costs

     —         (406     —    

Taxes paid related to net share settlement of equity awards

     (942,895     —         —    
  

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     1,574,196     852,238     2,048,951
  

 

 

   

 

 

   

 

 

 

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

     328     (246     —    

Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

     (142,021     (472,433     663,999

Cash, cash equivalents and restricted cash and cash equivalents

      

Beginning of period

     706,486     1,178,919     514,920
  

 

 

   

 

 

   

 

 

 

End of period

   $ 564,465   $ 706,486   $ 1,178,919
  

 

 

   

 

 

   

 

 

 

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

      

Cash and cash equivalents

   $ 358,319   $ 517,690   $ 1,106,102

Restricted cash and cash equivalents

     204,976     187,374     72,817

Restricted cash, included in prepaid expenses and other current assets

     1,170     1,422     —    
  

 

 

   

 

 

   

 

 

 

Total cash, cash equivalents and restricted cash and cash equivalents

   $ 564,465   $ 706,486   $ 1,178,919
  

 

 

   

 

 

   

 

 

 


LYFT, INC.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

     Year Ended December 31,  
     2019      2018      2017  

Non-cash investing and financing activities

        

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

     13,070    $ 8,154    $ 704

Deferred offering costs accrued, unpaid

     —          1,689      —    

Right of use assets acquired under operating leases

     264,076      —          —    

Redeemable convertible preferred stock issued as part of a business combination

     —          25,340      —    

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      —          —    

Decrease in goodwill from measurement period adjustments related to business combinations

     3,240      —          —    


LYFT, INC.

Calculations of Key Metrics and

GAAP to Non-GAAP Reconciliations

(in millions)

(unaudited)

 

     Three Months Ended December 31,  
     2019     2018  

Contribution

    

Revenue

   $ 1,017.1     $ 669.5

Less cost of revenue

     (502.8     (367.0

Adjusted to exclude the following (as related to cost of revenue):

    

Amortization of intangible assets

     3.6       2.1

Stock-based compensation expense

     12.7       0.1

Payroll tax expense related to stock-based compensation

     0.1       —    

Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods

     18.8       —    
  

 

 

   

 

 

 

Contribution

   $ 549.5     $ 304.7
  

 

 

   

 

 

 

Contribution Margin

     54.0     45.5
     Three Months Ended December 31,  
     2019     2018  

Adjusted EBITDA

    

Net loss

   $ (356.0   $ (248.9

Adjusted to exclude the following:

    

Interest income

     (24.1     (20.1

Other (income) expense, net

     0.3     (0.7

Provision for income taxes

     (2.0     (0.4

Depreciation and amortization

     24.0     13.3

Costs related to acquisitions

     1.0     3.5

Stock-based compensation

     204.4     2.2

Payroll tax expense related to stock-based compensation

     2.9     —    

Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods

     18.8     —    
  

 

 

   

 

 

 

Adjusted EBITDA

   $ (130.7   $ (251.1
  

 

 

   

 

 

 

Adjusted EBITDA Margin

     (12.9 %)      (37.5 %) 
     Three Months Ended December 31,  
     2019     2018  

Adjusted Net Loss

    

Net loss

   $ (356.0   $ (248.9

Adjusted to exclude the following:

    

Amortization of intangible assets

     7.5     4.7

Stock-based compensation

     204.4     2.2

Payroll tax expense related to stock-based compensation

     2.9     —    

Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods

     18.8     —    

Costs related to acquisitions

     1.0     3.5
  

 

 

   

 

 

 

Adjusted Net Loss

   $ (121.4   $ (238.5
  

 

 

   

 

 

 


     Year Ended December 31,  
     2019     2018  

Contribution

    

Revenue

   $ 3,616.0   $ 2,156.6

Less cost of revenue

     (2,176.5     (1,243.4

Adjusted to exclude the following (as related to cost of revenue):

    

Amortization of intangible assets

     19.5     3.7

Stock-based compensation expense

     81.4     0.5

Payroll tax expense related to stock-based compensation

     1.8     —    

Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods

     270.3     3.4
  

 

 

   

 

 

 

Contribution

   $ 1,812.5   $ 920.8
  

 

 

   

 

 

 

Contribution Margin

     50.1     42.7
     Year Ended December 31,  
     2019     2018  

Adjusted EBITDA

    

Net loss

   $ (2,602.2   $ (911.3

Adjusted to exclude the following:

    

Interest income

     (102.5     (66.5

Other (income) expense, net

     (0.1     (0.7

Provision for income taxes

     2.3     0.7

Depreciation and amortization

     108.3     18.8

Costs related to acquisitions

     1.0     3.5

Stock-based compensation

     1,599.3     8.6

Payroll tax expense related to stock-based compensation

     44.7     —    

Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods

     270.3     3.4
  

 

 

   

 

 

 

Adjusted EBITDA

   $ (678.9   $ (943.5
  

 

 

   

 

 

 

Adjusted EBITDA Margin

     (18.8 %)      (43.7 %) 
     Year Ended December 31,  
     2019     2018  

Adjusted Net Loss

    

Net loss

   $ (2,602.2   $ (911.3

Adjusted to exclude the following:

    

Amortization of intangible assets

     35.1     7.1

Stock-based compensation

     1,599.3     8.6

Payroll tax expense related to stock-based compensation

     44.7     —    

Changes to the liabilities for insurance required by regulatory agencies attributable to historical periods

     270.3     3.4

Costs related to acquisitions

     1.0     3.5
  

 

 

   

 

 

 

Adjusted Net Loss

   $ (651.8   $ (888.7