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Lyft Exceeds Revenue Expectations

May 7, 2020

Lyft reported financial results for its first quarter ended March 31, 2020. The firm had a loss per share of $1.32 with revenue of $955.7 million. But, the investment community anticipated an adjusted loss of $1.31 cents per share and revenue of $893 million.

“While the COVID-19 pandemic poses a formidable challenge to our business, we are prepared to weather this crisis,” said Logan Green, co-founder and chief executive officer of Lyft. “We are responding to the pandemic with an aggressive cost reduction plan that will give us an even leaner expense structure and allow us to emerge stronger. Our competitive resilience and commitment to our culture and values will put Lyft in the best position to deliver on our mission of improving people’s lives with the world’s best transportation.”

"Our first quarter results underscore the remarkable progress we have made since our IPO, particularly on our path to profitability as we reduced our Adjusted EBITDA loss to $85 million from $216 million in the year ago period and $131 million in the fourth quarter of 2019,” said Brian Roberts, chief financial officer of Lyft. “In these uncertain times, we are building on that progress by taking decisive action to reduce costs and further improve our operating efficiency. We expect to remove approximately $300 million from our annual expense run-rate by the fourth quarter of 2020 relative to our original expectations for 2020.”

First Quarter 2020 Financial Highlights

  • Lyft reported Q1 revenue of $955.7 million versus $776.0 million in the first quarter of 2019, an increase of 23 percent year-over-year. 
  • Net loss for Q1 2020 was $398.1 million versus a net loss of $1.1 billion in the same period of 2019. Net loss for Q1 includes $169.9 million of stock-based compensation and related payroll tax expenses, as well as $64.7 million of costs related to the transfer of certain legacy auto insurance liabilities and $58.4 million related to changes to the liabilities for insurance required by regulatory agencies attributable to historical periods. Net loss margin for Q1 was 41.7 percent compared to 146.7 percent in the first quarter of 2019.
  • Adjusted net loss for Q1 2020 was $97.4 million versus an adjusted net loss of $211.5 million in the first quarter of 2019. Adjusted net loss is adjusted for amortization of intangible assets, stock-based compensation expense, payroll tax expense related to stock-based compensation, changes to the liabilities for insurance required by regulatory agencies attributable to historical periods, costs related to the transfer of certain legacy auto insurance liabilities and expenses related to acquisitions. 
  • Lyft reported Contribution for Q1 2020 of $547.4 million versus $384.9 million in the first quarter of 2019, up 42 percent year-over-year. Contribution Margin for Q1 increased to 57.3 percent from 49.6 percent in the first quarter of 2019.
  • Adjusted EBITDA Loss for Q1 2020 was $85.2 million versus $216.0 million in the first quarter of 2019. Adjusted EBITDA Loss Margin for Q1 was 8.9 percent versus 27.8 percent in the first quarter of 2019. 
  • Lyft reported $2.7 billion of unrestricted cash, cash equivalents and short-term investments at the end of the first quarter of 2020.

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