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LYFT - Lyft Inc
$8.38
0.24(2.95%)8:00:00 PM 5/26/2023
Lyft, Inc. develops, markets, and operates a mobile app, offering vehicles for hire, motorized scooters, a bicycle-sharing system, and food delivery. The company is based in San Francisco, California and operates in 644 cities in the United States and 12 cities in Canada. With a 30% market share, Lyft is the second-largest ridesharing company in the United States after Uber.

Financials

Quarterly financials
(USD)Mar 2023Q/Q
Revenue952.7MM-14%
Gross Profit403.7MM-
Cost Of Revenue549MM-29%
Operating Income-216.8MM-64%
Operating Expenses620.5MM-
Net Income-187.6MM-68%
R&D196.9MM-16%
G&A256.5MM-50%
Marketing115.9MM-11%
Interest Expense5.4MM+4%

Highlights of Management Discussion and Risk Factors in 10-K/10-Q filling

Positive
1.
In 2021, we saw some recovery from the onset of the COVID-19 pandemic as vaccines were more widely distributed and more communities fully reopened, which resulted in improved performance compared to 2020.
2.
In 2022, while we saw decreased demand in the first quarter driven by an increase in cases due to variants of the virus, we saw sequential quarterly improvements in demand and overall marketplace health.
3.
However, lower prices can help stimulate demand over time, and with more demand and better supply - and a healthier marketplace overall - we can build a much larger business.
4.
These increases to Active Riders and Revenue per Active Rider reflect the improvement in demand on the Company’s platform and improving marketplace health in 2022 as compared to the same periods in 2021 during which the COVID-19 pandemic had a stronger impact.
5.
Revenue also benefited from revenues from licensing and data access agreements, beginning in the second quarter of 2021.
6.
We expect to continue to see improved marketplace balance as increasing driver supply better meets demand, which will reduce the absolute dollar amount earned from high value rides during peak hours.
7.
We expect Adjusted EBITDA and Adjusted EBITDA Margin will increase over the long term as we continue to scale our business and achieve greater efficiencies in our operating expenses.
8.
In each of the three month periods ended March 31, June 30, September 30, and December 31, 2022, Active Riders and Revenue per Active Rider increased compared to the same period in 2021 primarily due to improvements to demand on our platform as we continue to recover from the impacts of COVID-19.
9.
In the fourth quarter of 2022, we had the highest numbers of Active Riders in nearly three years.
10.
The acquisition was treated as a business combination and increases our scale in micromobility by leveraging PBSC’s deep sales experience and customer relationships.
11.
This improvement was most significant for Active Riders in the first half of 2022 as compared to the earlier stages of the COVID-19 recovery in the first half of 2021.
12.
Revenue per Active Rider reached all-time highs in the consecutive periods during the three months ended September 30, 2022 and December 31, 2022 primarily driven by an increase in ride frequency as well as a shift toward higher revenue rides such as airport rides, reflecting increased travel in the second half of 2022 across the United States.
13.
For full-year 2022, we generated revenue of $4.1 billion, the highest since our inception.
14.
Although there has been an improvement in overall demand and our marketplace health, demand for our platform has not returned to pre-pandemic levels in all markets and the timing of demand and supply improvements has not always aligned.
15.
In the fourth quarter of 2022, we strengthened our insurance reserves and accrued and other current liabilities by $375 million to mitigate exposure to these fluctuations.
16.
This update resulted in a 0.01% increase, or an additional 927 Active Riders in the fourth quarter of 2020.
17.
We believe Contribution and Contribution Margin are key measures of our ability to achieve profitability.
18.
Active Riders increased 31.9%, 15.9%, 7.2%, and 8.7% for the quarters ended March 31, 2022, June 30, 2022, September 30, 2022 and December 31, 2022, 61respectively, as compared to the same quarters in the prior year and Revenue per Active Rider increased 9.0%, 11.8%, 13.7% and 11.5% for the quarters ended March 31, 2022, June 30, 2022, September 30, 2022 and December 31, 2022, respectively, as compared to the same quarters in the prior year.
19.
The amortization of these deferred gains provided a benefit to the cost of revenue over multiple periods equal to the excess benefits received.
20.
While conditions have improved, these impacts are ongoing.
21.
The amortization of these deferred gains provided a benefit to cost of revenue over multiple periods equal to the excess benefits received.
22.
We provide a service to drivers to complete a successful transportation service for riders.
23.
This adjustment will help investors understand the economic benefit of our Reinsurance Agreement on future trends in our operations, as they improve over the settlement period of any deferred gains.
Negative
1.
In the near term, we expect to see revenue headwinds due to the current competitive environment, which have resulted in reductions in pricing.
2.
Near-term, we expect lower prices - which are the result of strong supply tailwinds and competitive dynamics - will adversely impact our revenue and profitability.
3.
Components of Results of Operations As noted above, we expect the ongoing impacts of the COVID-19 pandemic to continue to suppress demand for our platform.
4.
In the first quarter of 2023, we also expect headwinds as a result of seasonality in both ridesharing and our network of Light Vehicles during the winter months.
5.
In addition, we cannot predict the impact of the COVID-19 pandemic or the impact a deteriorating macroeconomic environment on lifestyle trends or consumer behavior, and these factors may harm future growth and profits.
6.
Beginning in March 2020, the pandemic and responses thereto contributed to a severe decrease in the number of rides on our platform and revenue which had a significant effect on our cash flows from operations.
7.
We may see cost of revenue headwinds to insurance costs driven by uncertainties of recent economic factors including the high inflationary environment.
8.
Lastly, we cannot predict the impact of the COVID-19 pandemic and its impact on work, travel and lifestyle trends, or the impact a deteriorating macroeconomic environment will have on consumer behavior, and these factors could affect future revenue.
9.
This consisted primarily of a net loss of $1.6 billion.
10.
As a result, in the first quarter of 2023, the Company expects to record lease termination penalties and additional impairment charges related to the cease use of certain facilities to real estate operating lease right-of-use assets.
11.
We also experienced volatility in the overall marketplace health on our platform during this period, including fluctuations in driver supply and service levels.
The management discussion contents above are extracted from this specific SEC Edgar 10-K filling, with report date as 2022-12-31 and filed on 2023-02-27. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.
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Stock news

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    Gov. Tim Walz on Thursday vetoed a bill that would have mandated higher pay and job security for Lyft and Uber drivers in Minnesota, saying the legislation wasn't ready to become law. “Rideshare drivers deserve fair wages and safe working conditions," Walz said in a statement announcing his first veto ever in his five-plus years as governor. Uber threatened to offer only premium-priced service in the Minneapolis-St. Paul area and cut off service altogether in the rest of Minnesota if Walz sign...

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    05/23/2023LYFT
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    05/22/2023LYFT
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    05/18/2023LYFT
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    05/16/2023LYFT
    Lyft says CFO Paul to step down, appoints replacement

    The company said Paul, who has served as Lyft CFO since January 2022, was leaving on May 19, and announced Brewer's expected joining on July 10. Chief Accounting Officer Lisa Blackwood-Kapral will serve as finance chief in the interim. The changes come after Lyft forecast a dull second quarter earlier this month, as price cuts in its race with bigger rival Uber Technologies Inc to add more riders take a toll on margins.

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