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August 13, 2020

Lyft revenues down 61% in Q2

Rideshare firm Lyft has announced financial results for its second quarter ended June 30, 2020 which show revenues down 61%. It also posted a hefty quarterly operating loss as the pandemic hit rideshare volumes, but said that there were signs of recovery in July. 

By Sam Duke

Rideshare firm Lyft has announced financial results for its second quarter ended June 30, 2020 which show revenues down 61%. It also posted a hefty quarterly operating loss as the pandemic hit rideshare volumes, but said that there were signs of recovery in July. 

“While rideshare rides in the quarter were down significantly year-over-year, we are encouraged by the recovery trends we are beginning to see, with monthly rideshare rides in July up 78% compared to April,” said Logan Green, co-founder and chief executive officer of Lyft .  “Lyft ‘s second quarter results reflect an operating environment that was not only challenging for our core ridesharing business, but also for our valued riders and drivers and the communities we serve. Our performance reinforces our belief that Lyft is taking on the critical work necessary to emerge from the crisis as a stronger company.”

Second Quarter 2020 Financial Highlights

  • Lyft reported Q2 revenue of $339.3 million versus $867.3 million in the second quarter of 2019, a decrease of 61 percent year-over-year.  
  • In April 2020, Lyft announced a restructuring effort to reduce operating expenses and adjust cash flows.  Our restructuring charges in the second quarter of 2020 included $32.1 million of severance and related employee benefit costs and $3.1 million of lease terminations and other costs. Lyft also incurred a stock-based compensation benefit primarily related to the reversal of previously recognized stock-based compensation expenses for unvested awards of $49.8 million, resulting in a net restructuring benefit of $14.5 million. 
  • Net loss for Q2 2020 was $437.1 million versus a net loss of $644.2 million in the same period of 2019. Net loss for Q2 includes $110.8 million of stock-based compensation and related payroll tax expenses (inclusive of the restructuring benefit described in the above bullet), $17.4 million related to changes to the liabilities for insurance required by regulatory agencies attributable to historical periods, and the net restructuring benefit noted above. Net loss margin for Q2 was 128.8 percent compared to 74.3 percent in the second quarter of 2019.
  • Adjusted net loss for Q2 2020 was $265.8 million versus an adjusted net loss of $197.3 million in the second 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, expenses related to acquisitions, and restructuring charges. 
  • Lyft reported Contribution for Q2 2020 of $117.3 million versus $398.9 million in the second quarter of 2019, down 71 percent year-over-year. Contribution Margin for Q2 decreased to 34.6 percent from 46.0 percent in the second quarter of 2019.
  • Adjusted EBITDA loss for Q2 2020 was $280.3 million, an increase of $76.2 million compared to Adjusted EBITDA loss of $204.1 million in the second quarter of 2019, but an improvement of $44.7 million compared to the Company’s prior outlook for Adjusted EBITDA loss of $325 million for the second quarter of 20201. Adjusted EBITDA loss Margin for Q2 2020 was 82.6 percent versus 23.5 percent in the second quarter of 2019. 
  • Lyft reported $2.8 billion of unrestricted cash, cash equivalents and short-term investments at the end of the second quarter of 2020.
  • In May 2020, Lyft issued $747.5 million aggregate principal amount of 1.50% convertible senior notes due 2025. The net proceeds from this offering were approximately $733.2 million, after deducting the discounts and commissions and debt issuance costs. In connection with the issuance of the convertible senior notes, Lyft entered into privately negotiated capped call transactions at a cost of approximately $132.7 million.   

“In Q2, we successfully limited our Adjusted EBITDA loss, outperforming the outlook we shared on our Q1 call by more than 20%.  We continued to take aggressive actions to reduce costs and increase our underlying unit economics in the quarter, which has put Lyft on track to achieve $300 million of annualized fixed cost savings by the end of the year,” said Brian Roberts, chief financial officer of Lyft . “These steps position the Company to achieve adjusted EBITDA profitability with 20 – 25% fewer rides than originally contemplated in our fourth quarter 2021 target.”

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