Lyft, Inc. [LYFT] Filings

10-Q 1 lyft-20240930.htm 10-Q lyft-20240930

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 September 30, 2024


☐			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 400

San Francisco, California 94107

(Address of registrant’s principal executive offices, including zip code)

(844) 250-2773

(Registrant’s telephone number, including area code)

_________________________________________________________________

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: (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, a 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 ☒

As of November 4, 2024, the number of shares of the registrant’s Class A common stock outstanding was 406,286,219 and the number of shares of the registrant’s Class B common stock outstanding was 8,530,629.

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		Page
PART I	FINANCIAL INFORMATION	3
Item 1.	Condensed Consolidated Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	4
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023	5
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023	6
	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2024 and 2023	7
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023	9
	Notes to Condensed Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	54
Item 4.	Controls and Procedures	55

PART II	OTHER INFORMATION	56
Item 1.	Legal Proceedings	56
Item 1A.	Risk Factors	56
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	97
Item 3.	Defaults Upon Senior Securities	97
Item 4.	Mine Safety Disclosures	97
Item 5.	Other Information	97
Item 6.	Exhibits	98
	Signatures	99

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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, capital expenditures, our ability to determine insurance, legal and other reserves and our ability to achieve and maintain profitability and positive free cash flows;

•our restructuring actions, including the costs of such actions and the impact of such actions on our business and financial performance;

•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 prices and pricing methodologies and our expectations for the impact of pricing on our competitive position and our financial results;

•our expectations regarding outstanding and potential 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 the classification of drivers on our platform, taxation, privacy and data protection;

•our ability to manage and insure risks associated with our Transportation-as-a-Service network, including auto-related and operations-related risks, and our expectations regarding insurance costs and estimated insurance reserves;

•our expectations regarding new and evolving markets and our efforts to address these markets;

•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 and business operations;

•our expectations concerning relationships with third-parties;

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

•our expectations concerning macroeconomic conditions, including the impact of inflation, uncertainty in the global banking and financial services markets and public health crises;

•our ability to service our existing debt; and

•our ability to successfully acquire and integrate companies and assets.

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

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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.

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.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

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Lyft, Inc.

Condensed Consolidated Balance Sheets

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

(unaudited)


	September 30, 2024		December 31, 2023

Assets
Current assets
Cash and cash equivalents	$	770,298	$	558,636
Short-term investments	1,156,735		1,126,548
Prepaid expenses and other current assets	940,335		892,235
Total current assets	2,867,368		2,577,419
Restricted cash and cash equivalents	270,248		211,786
Restricted investments	1,196,837		837,291
Other investments	42,982		39,870
Property and equipment, net	483,861		465,844
Operating lease right of use assets	83,866		98,202
Intangible assets, net	48,242		59,515
Goodwill	256,393		257,791
Other assets	13,358		16,749
Total assets	$	5,263,155	$	4,564,467
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	109,336	$	72,282
Insurance reserves	1,592,564		1,337,868
Accrued and other current liabilities	1,715,181		1,508,855
Operating lease liabilities — current	41,752		42,556
Convertible senior notes, current	389,773		—
Total current liabilities	3,848,606		2,961,561
Operating lease liabilities	103,779		134,102
Long-term debt, net of current portion	574,475		839,362
Other liabilities	80,516		87,924
Total liabilities	4,607,376		4,022,949
Commitments and contingencies (Note 6)
Stockholders’ equity
Preferred stock, $0.00001 par value; 1,000,000,000 shares authorized as of September 30, 2024 and December 31, 2023; no shares issued and outstanding as of September 30, 2024 and December 31, 2023	—		—
Common stock, $0.00001 par value; 18,000,000,000 Class A shares authorized as of September 30, 2024 and December 31, 2023; 406,280,530 and 391,239,046 Class A shares issued and outstanding, as of September 30, 2024 and December 31, 2023, respectively; 100,000,000 Class B shares authorized as of September 30, 2024 and December 31, 2023; 8,530,629 and 8,566,629 Class B shares issued and outstanding, as of September 30, 2024 and December 31, 2023	4		4
Additional paid-in capital	10,978,966		10,827,378
Accumulated other comprehensive loss	(3,329)		(4,949)
Accumulated deficit	(10,319,862)		(10,280,915)
Total stockholders’ equity	655,779		541,518
Total liabilities and stockholders’ equity	$	5,263,155	$	4,564,467

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

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Lyft, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except for per share data)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

Revenue	$	1,522,692	$	1,157,550	$	4,235,739	$	3,179,004
Costs and expenses
Cost of revenue	888,255		644,500		2,463,135		1,800,091
Operations and support	117,462		118,763		336,238		325,338
Research and development	104,447		109,229		303,277		460,745
Sales and marketing	215,779		129,947		537,621		355,055
General and administrative	253,436		195,290		742,332		653,228
Total costs and expenses	1,579,379		1,197,729		4,382,603		3,594,457
Loss from operations	(56,687)		(40,179)		(146,864)		(415,453)
Interest expense	(7,362)		(6,209)		(22,262)		(17,793)
Other income (expense), net	50,941		34,399		133,941		124,689
Loss before income taxes	(13,108)		(11,989)		(35,185)		(308,557)
Provision for (benefit from) income taxes	(682)		111		3,762		5,454
Net loss	$	(12,426)	$	(12,100)	$	(38,947)	$	(314,011)
Net loss per share
Basic	$	(0.03)	$	(0.03)	$	(0.10)	$	(0.82)
Diluted	$	(0.03)	$	(0.03)	$	(0.10)	$	(0.82)
Weighted-average number of shares outstanding used to compute net loss per share
Basic	412,229		389,307		406,785		381,697
Diluted	412,229		389,307		406,785		381,697
Stock-based compensation included in costs and expenses:
Cost of revenue	$	6,789	$	5,553	$	18,564	$	23,825
Operations and support	2,310		2,818		6,299		12,727
Research and development	32,036		40,699		89,208		183,555
Sales and marketing	4,822		5,723		13,257		25,360
General and administrative	42,999		43,750		127,464		147,385

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

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Lyft, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

Net loss	$	(12,426)	$	(12,100)	$	(38,947)	$	(314,011)
Other comprehensive income (loss)
Foreign currency translation adjustment	1,176		(6,039)		671		(5,494)
Unrealized gain on marketable securities, net of taxes	3,268		576		949		1,962
Other comprehensive income (loss)	4,444		(5,463)		1,620		(3,532)
Comprehensive loss	$	(7,982)	$	(17,563)	$	(37,327)	$	(317,543)

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

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Lyft, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

(unaudited)


	Nine Months Ended September 30, 2023
	Class A and Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balances as of December 31, 2022	370,155	$	4	$	10,335,013	$	(9,940,595)	$	(5,754)	$	388,668
Issuance of common stock upon exercise of stock options	82	—		297		—		—		297
Issuance of common stock upon settlement of restricted stock units	7,985	—		—		—		—		—
Shares withheld related to net share settlement	(103)	—		(1,166)		—		—		(1,166)
Stock-based compensation	—	—		180,383		—		—		180,383
Other comprehensive income (loss)	—	—		—		—		1,463		1,463
Net loss	—	—		—		(187,649)		—		(187,649)
Balances as of March 31, 2023	378,119	$	4	$	10,514,527	$	(10,128,244)	$	(4,291)	$	381,996
Issuance of common stock upon exercise of stock options	2	—		7		—		—		7
Issuance of common stock upon settlement of restricted stock units	7,431	—		—		—		—		—
Shares withheld related to net share settlement	(82)	—		(661)		—		—		(661)
Issuance of common stock under employee stock purchase plan	767	—		5,569		—		—		5,569
Stock-based compensation	—	—		113,926		—		—		113,926
Other comprehensive income (loss)	—	—		—		—		468		468
Net loss	—	—		—		(114,262)		—		(114,262)
Balance as of June 30, 2023	386,237	$	4	$	10,633,368	$	(10,242,506)	$	(3,823)	$	387,043
Issuance of common stock upon exercise of stock options	107	—		825		—		—		825
Issuance of common stock upon settlement of restricted stock units	6,676	—		—		—		—		—
Shares withheld related to net share settlement	(35)	—		(383)		—		—		(383)
Stock-based compensation	—	—		98,543		—		—		98,543
Other comprehensive income (loss)	—	—		—		—		(5,463)		(5,463)
Net loss	—	—		—		(12,100)		—		(12,100)
Other	—	—		(139)		—		—		(139)
Balance as of September 30, 2023	392,985	$	4	$	10,732,214	$	(10,254,606)	$	(9,286)	$	468,326

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	Nine Months Ended September 30, 2024
	Class A and Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balances as of December 31, 2023	399,806	$	4	$	10,827,378	$	(10,280,915)	$	(4,949)	$	541,518
Issuance of common stock upon exercise of stock options	257	—		1,924		—		—		1,924
Issuance of common stock upon settlement of restricted stock units	6,280	—		—		—		—		—
Shares withheld related to net share settlement	(82)	—		(1,463)		—		—		(1,463)
Repurchase and retirement of common stock	(3,143)	—		(50,000)		—		—		(50,000)
Purchase of capped call	—	—		(47,886)		—		—		(47,886)
Stock-based compensation	—	—		80,098		—		—		80,098
Other comprehensive income (loss)	—	—		—		—		(1,324)		(1,324)
Net loss	—	—		—		(31,535)		—		(31,535)
Balances as of March 31, 2024	403,118	$	4	$	10,810,051	$	(10,312,450)	$	(6,273)	$	491,332
Issuance of common stock upon exercise of stock options	81	—		262		—		—		262
Issuance of common stock upon settlement of restricted stock units	6,842	—		—		—		—		—
Shares withheld related to net share settlement	(456)	—		(7,436)		—		—		(7,436)
Issuance of common stock under employee stock purchase plan	566	—		4,217		—		—		4,217
Stock-based compensation	—	—		85,739		—		—		85,739
Other comprehensive income (loss)	—	—		—		—		(1,500)		(1,500)
Net income	—	—		—		5,014		—		5,014
Balance as of June 30, 2024	410,151	$	4	$	10,892,833	$	(10,307,436)	$	(7,773)	$	577,628
Issuance of common stock upon exercise of stock options	239	—		769		—		—		769
Issuance of common stock upon settlement of restricted stock units	4,731	—		—		—		—		—
Shares withheld related to net share settlement	(310)	—		(3,592)		—		—		(3,592)
Stock-based compensation	—	—		88,956		—		—		88,956
Other comprehensive income (loss)	—	—		—		—		4,444		4,444
Net loss	—	—		—		(12,426)		—		(12,426)
Balance as of September 30, 2024	414,811	$	4	$	10,978,966	$	(10,319,862)	$	(3,329)	$	655,779

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

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Lyft, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Nine Months Ended September 30,
	2024		2023

Cash flows from operating activities
Net loss	$	(38,947)	$	(314,011)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation and amortization	115,189		85,350
Stock-based compensation	254,793		392,852
Amortization of premium on marketable securities	236		93
Accretion of discount on marketable securities	(66,220)		(46,581)
Amortization of debt discount and issuance costs	2,744		2,124
(Gain) loss on sale and disposal of assets, net	8,180		(9,471)
Other	(2,556)		2,173
Changes in operating assets and liabilities, net effects of acquisition
Prepaid expenses and other assets	(39,631)		(35,354)
Operating lease right-of-use assets	19,971		21,769
Accounts payable	34,711		(52,988)
Insurance reserves	254,696		(94,580)
Accrued and other liabilities	189,903		(77,919)
Lease liabilities	(36,698)		(15,209)
Net cash (used in) provided by operating activities	696,371		(141,752)
Cash flows from investing activities
Purchases of marketable securities	(2,976,674)		(2,354,598)
Purchases of term deposits	(2,194)		—
Proceeds from sales of marketable securities	155,181		345,422
Proceeds from maturities of marketable securities	2,497,355		2,751,529
Proceeds from maturities of term deposits	3,539		5,000
Purchases of property and equipment and scooter fleet	(70,055)		(121,250)
Cash paid for acquisitions, net of cash acquired	—		1,630
Sales of property and equipment	67,856		79,033
Other	1,113		—
Net cash (used in) provided by investing activities	(323,879)		706,766
Cash flows from financing activities
Repayment of loans	(61,807)		(60,519)
Proceeds from issuance of convertible senior notes	460,000		—
Payment of debt issuance costs	(11,888)		—
Purchase of capped call	(47,886)		—
Repurchase of Class A common stock	(50,000)		—
Payment for settlement of convertible senior notes due 2025	(350,000)		—
Proceeds from exercise of stock options and other common stock issuances	7,173		6,697
Taxes paid related to net share settlement of equity awards	(12,490)		(2,208)
Principal payments on finance lease obligations	(35,403)		(35,935)
Contingent consideration paid	—		(14,100)
Net cash used in financing activities	(102,301)		(106,065)
Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents	(67)		(68)
Net increase in cash, cash equivalents and restricted cash and cash equivalents	270,124		458,881
Cash, cash equivalents and restricted cash and cash equivalents
Beginning of period	771,786		391,822
End of period	$	1,041,910	$	850,703

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

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Lyft, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Nine Months Ended September 30,
	2024		2023

Reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the consolidated balance sheets
Cash and cash equivalents	$	770,298	$	590,541
Restricted cash and cash equivalents	270,248		258,798
Restricted cash, included in prepaid expenses and other current assets	1,364		1,364
Total cash, cash equivalents and restricted cash and cash equivalents	$	1,041,910	$	850,703

Non-cash investing and financing activities
Financed vehicles acquired	$	90,918	$	130,891
Purchases of property and equipment and scooter fleet not yet settled	7,144		10,998
Right-of-use assets acquired under finance leases	39,845		63,706
Right-of-use assets acquired under operating leases	4,336		3,760
Remeasurement of finance and operating lease right of use assets	(9,505)		(12,729)

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

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Lyft, Inc.

Notes to the Condensed Consolidated Financial Statements

(unaudited)

1. Description of Business and Basis of Presentation

Organization and Description of Business

Lyft, Inc. (the “Company” or “Lyft”) is incorporated in Delaware with its headquarters in San Francisco, California. The Company 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. This network enables multiple modes of transportation including the facilitation of peer-to-peer ridesharing by connecting drivers who have a vehicle with riders who need a ride. The Lyft Platform provides a marketplace where drivers can be matched with riders via the Lyft App where the Company operates as a transportation network company (“TNC”).

Transportation options through the Company’s platform and mobile-based applications are substantially comprised of its ridesharing marketplace that connects drivers and riders in cities across the United States and in select cities in Canada, Lyft’s network of bikes and scooters (“Light Vehicles”), and the Express Drive program, where drivers can enter into short-term rental agreements with the Company’s wholly-owned subsidiary, Flexdrive Services, LLC (“Flexdrive”), or a third party for vehicles that may be used to provide ridesharing services on the Lyft Platform. In addition, the Company makes the ridesharing marketplace available to organizations through Lyft Business offerings, such as the Concierge and Lyft Pass programs, and generates revenue from licensing and data access agreements associated with the data from the Company's platform, subscription fees, revenue from bikes and bike station hardware and software sales and revenue from arrangements to provide advertising services.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and the U.S. Securities and Exchange Commission (“SEC”) rules and regulations for interim reporting and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2023, included in our Annual Report on Form 10-K.

The Company uses the U.S. dollar predominantly as the functional currency of its foreign subsidiaries. For foreign subsidiaries where the U.S. dollar is the functional currency, gains and losses from remeasurement of foreign currency balances into U.S. dollars are included on the condensed consolidated statements of operations. For the foreign subsidiary where the local currency is the functional currency, translation adjustments of foreign currency financial statements into U.S. dollars are recorded to a separate component of accumulated other comprehensive loss.

The consolidated balance sheet as of December 31, 2023 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 audited 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, stockholders’ equity, 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.

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 losses resulting from insurance claims inclusive of insurance related accruals, fair value of financial assets and liabilities, goodwill and identifiable intangible assets, leases, indirect tax obligations, legal contingencies, valuation allowance for deferred income taxes and the valuation of stock-based compensation.

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Revenue Recognition

The Company generates its revenue from its multimodal transportation networks that offer access to a variety of transportation options through the Lyft Platform and mobile-based applications. Substantially all, or approximately 85% or more, of the Company’s revenue is generated from its ridesharing marketplace that connects drivers and riders and is recognized in accordance with Accounting Standards Codification Topic 606 (“ASC 606”). In addition, the Company generates revenue in accordance with ASC 606 from licensing and data access, subscription fees, revenue from bikes and bike station hardware and software sales and revenue from arrangements to provide advertising services to third parties, which are not significant components of the Company's condensed consolidated revenues. The Company also generates rental revenue from Flexdrive and its network of Light Vehicles which is recognized in accordance with Accounting Standards Codification Topic 842 (“ASC 842”).

The table below presents the Company’s revenues as included on the condensed consolidated statements of operations (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue from contracts with customers (ASC 606)	$	1,387,825	$	1,069,939	$	3,919,393	$	2,963,594
Rental revenue (ASC 842)	134,867		87,611		316,346		215,410
Total revenue	$	1,522,692	$	1,157,550	$	4,235,739	$	3,179,004

Revenue from Contracts with Customers (ASC 606)

The Company recognizes revenue for its rideshare marketplace in accordance with ASC 606. The Company generates revenue from service fees and commissions (collectively, “fees”) paid by drivers for use of the Lyft Platform and related activities to connect drivers with riders to facilitate and successfully complete rides via the Lyft App where the Company operates as a TNC. The Company recognizes revenue upon completion of each ride. Drivers enter into terms of service (“ToS”) with the Company in order to use the Lyft Driver App. Under the 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 riders on behalf of drivers. The Company is acting as an agent in facilitating the ability of a driver to provide a transportation service to a rider. The Company reports revenue on a net basis, reflecting the fee owed to the Company from a driver as revenue, and not the gross amount collected from the rider.

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 rider. The Company’s single performance obligation in the transaction is to connect drivers with riders to facilitate the completion of a successful transportation service for riders. The Company recognizes revenue upon completion of a ride as its performance obligation is satisfied upon the completion of the ride. The Company collects the fare and related charges from riders on behalf of drivers using the rider’s pre-authorized credit card or other payment mechanism 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.

The Company recognizes revenue from subscription fees paid to access transportation options through the Lyft Platform and mobile-based applications over the applicable subscription period in accordance with ASC 606. The Company also recognizes revenue from bikes, bike station hardware and software sales when control is transferred to the customer in accordance with ASC 606.

The Company generates revenue from licensing and data access agreements. The Company is primarily responsible for fulfilling its promise to provide rideshare data and access to Flexdrive vehicles and bears the fulfillment risk, and the responsibility of providing the data, over the license period. The Company is acting as a principal in delivering the data and access licenses and presents revenue on a gross basis. Consideration allocated to each performance obligation, the data delivery and vehicle access, is determined by assigning the relative fair value, which approximates the stand alone selling price, to each of the performance obligations. Revenue is recorded upon delivery of the rideshare data and ratably over the quarter for access to fleet vehicles as the Company’s respective performance obligation is satisfied upon the delivery of each. These revenues are not significant to the Company's consolidated revenue.

The Company has arrangements to provide advertising services to third parties that are interested in reaching users of the Company's platform. These arrangements generally require the Company to provide advertising services over a fixed period of time for which revenue is recognized ratably over the contractual period. These revenues are not significant to the Company's consolidated revenue.

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Rental Revenue (ASC 842)

The Company generates rental revenues primarily from Flexdrive and its network of Light Vehicles. Rental revenues are recognized for rental and rental related activities where an identified asset is transferred to the customer and the customer has the ability to control that asset in accordance with ASC 842.

The Company operates a fleet of rental vehicles through its independently managed subsidiary, Flexdrive, comprised of both owned vehicles and vehicles leased from third-party leasing companies. The Company either leases or subleases vehicles to drivers, and as a result, the Company considers itself to be the accounting lessor or sublessor, as applicable, in these arrangements in accordance with ASC 842. Fleet operating costs include monthly fixed lease payments and other vehicle operating or ownership costs, as applicable. For vehicles that are subleased, sublease income and head lease expense for these transactions are recognized on a gross basis on the condensed consolidated financial statements. Drivers who rent vehicles are charged rental fees, which the Company collects from the driver by deducting such amounts from the driver’s earnings on the Lyft Platform.

The Company owns and operates its Light Vehicles in some cities and operates city-owned Light Vehicles in other cities. Though the specific terms of arrangements with cities vary, the Company earns operations fees from cities or shares revenue generated by the systems with cities. Light Vehicle revenue is accounted for under ASC 842 for single-use rides. A single-use ride allows the user to select a specific Light Vehicle at the time the arrangement is entered into and provides the user the right to control the selected Light Vehicle for the desired term of the arrangement.

Due to the short-term nature of the Flexdrive and Light Vehicle transactions, the Company classifies these rentals as operating leases. Revenue generated from single-use ride fees paid by Light Vehicle riders is recognized upon completion of each related ride. Revenue generated from Flexdrive is recognized evenly over the rental period, which is typically seven days or less.

Enterprise and Trade Receivables

The Company collects any fees owed for completed transactions on the Lyft Platform primarily from the rider’s authorized payment method. Uncollected fees are included in prepaid expenses and other current assets on the condensed consolidated balance sheets and represent receivables from (i) participants in the Company’s enterprise programs (“Enterprise Users”), where the transactions have been completed and the amounts owed from the Enterprise Users have either been invoiced or are unbilled as of the reporting date; and (ii) riders where the authorized payment method is a credit card but the fare amounts have not yet settled with third-party payment processors. Under the 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 riders on behalf of drivers. Accordingly, the Company has no trade receivables from drivers. The portion of the fare receivable to be remitted to drivers is included in accrued and other current liabilities on the condensed consolidated balance sheets.

The Company records an allowance for credit losses for fees owed for completed transactions that may never settle or be collected in accordance with Accounting Standards Update No. 2016-13 “Financial Instruments—Credit Losses”. The allowance for credit losses reflects the Company’s current estimate of expected credit losses inherent in the enterprise and trade receivables balance. In determining the expected credit losses, the Company considers its historical loss experience, the aging of its receivable balance, current economic and business conditions, and anticipated future economic events that may impact collectability. The Company reviews its allowance for credit losses periodically and as needed, and amounts are written off when determined to be uncollectible.

The Company’s receivable balance, which consists primarily of amounts due from Enterprise Users and Light Vehicle partners, was $318.8 million and $315.0 million as of September 30, 2024 and December 31, 2023, respectively. The Company’s allowance for credit losses was $12.5 million and $9.8 million as of September 30, 2024 and December 31, 2023, respectively.

Incentive Programs

The Company offers incentives to attract drivers, riders and Light Vehicle riders to use the Lyft Platform. Drivers generally receive cash incentives while riders and Light Vehicle riders generally receive free or discounted rides under such incentive programs. Incentives provided to drivers and Light Vehicle riders, the customers of the Company, are accounted for as a reduction of the transaction price. As the riders are not the Company’s customers, incentives provided to riders 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

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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 riders 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.

Rideshare Rider Incentives

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

(i)Market-wide marketing promotions. Market-wide promotions reduce the fare charged by drivers to riders 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 rider, and thereby results in a lower fee earned by the Company. Accordingly, the Company records this type of incentive as a reduction to revenue at the date it records the corresponding revenue transaction.

(ii)Targeted marketing promotions. Targeted marketing promotions are used to promote the use of the Lyft Platform to a targeted group of riders. 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 riders. The Company believes that the incentives that provide consideration to riders 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 of the service provided by drivers for a specific market. During the promotion period, riders not utilizing an incentive would be charged the full fare. These incentives represent marketing costs. When a rider 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)Rider referral programs. Under the rider referral program, the referring rider (the referrer) earns referral coupons when a new rider (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 September 30, 2024 and December 31, 2023, the rider referral coupon liability was not material.

Light Vehicle Rider Incentives

Incentives offered to Light Vehicle riders were not material for the three and nine months ended September 30, 2024 and 2023.

For the three and nine months ended September 30, 2024, in relation to the driver, rider and Light Vehicle rider incentive programs, the Company recorded $162.1 million and $571.3 million as a reduction to revenue, respectively, and $112.2 million and $264.0 million as sales and marketing expense, respectively. For the three and nine months ended September 30, 2023, in relation to the driver, rider and Light Vehicle riders incentive programs, the Company recorded $241.2 million and $854.8 million as a reduction to revenue, respectively, and $43.1 million and $90.0 million as sales and marketing expense, respectively.

Investments

Debt Securities

The Company’s accounting for its investments in debt securities is based on the legal form of the security, the Company’s intended holding period for the security, and the nature of the transaction. Investments in debt securities include commercial paper, certificates of deposit, corporate bonds, and U.S. government and agency securities. Investments in debt securities are classified as available-for-sale and are recorded at fair value.

The Company considers an available-for-sale debt security to be impaired if the fair value of the investment is less than its amortized cost basis. The entire difference between the amortized cost basis and the fair value of the Company’s available-for-sale debt securities is recognized on the condensed consolidated statements of operations as an impairment if, (i) the fair value of the security is below its amortized cost and (ii) the Company intends to sell or is more likely than not required to sell the security before recovery of its amortized cost basis. If neither criterion is met, the Company evaluates whether the decline in fair value is due to credit losses or other factors. In making this assessment, the Company considers the extent to which the security’s fair value is less than amortized cost, changes to the rating of the security by third-party rating agencies,

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and adverse conditions specific to the security, among other factors. If the Company’s assessment indicates that a credit loss exists, the credit loss is measured based on the Company’s best estimate of the cash flows expected to be collected. When developing its estimate of cash flows expected to be collected, the Company considers all available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable forecasts.

Credit loss impairments are recognized through an allowance for credit losses adjustment to the amortized cost basis of the debt securities on the balance sheet with an offsetting credit loss expense on the condensed consolidated statements of operations. Impairments related to factors other than credit losses are recognized as an adjustment to the amortized cost basis of the security and an offsetting amount in accumulated other comprehensive income (loss), net of tax. As of September 30, 2024, the Company had not recorded any credit impairments. The Company determines realized gains or losses on the sale of debt securities on a specific identification method.

The Company’s investments in debt securities include:

(i)Cash and cash equivalents. Cash equivalents include certificates of deposits, commercial paper and corporate bonds that have an original maturity of 90 days or less and are readily convertible to known amounts of cash.

(ii)Short-term investments. Short-term investments are comprised of commercial paper, certificates of deposit, and corporate bonds, which mature in twelve months or less. As a result, the Company classifies these investments as current assets in the accompanying condensed consolidated balance sheets.

(iii)Restricted investments. Restricted investments are comprised of debt security investments in commercial paper, certificates of deposit, corporate bonds and U.S. government and agency securities which are held in trust accounts at third-party financial institutions pursuant to certain contracts with insurance providers.

Non-marketable Equity Securities

The Company has elected to measure its investments in non-marketable equity securities at cost, with remeasurements to fair value only upon the occurrence of observable transactions for identical or similar investments of the same issuer or impairment. The Company qualitatively assesses whether indicators of impairment exist. Factors considered in this assessment include the investees’ financial and liquidity position, access to capital resources, and macroeconomic conditions, among others. If an impairment exists, the Company estimates the fair value of the investment by using the best information available, which may include cash flow projections or other available market data, and recognizes a loss for the amount by which the carrying value exceeds the fair value of the investment on the condensed consolidated statements of operations.

Fair Value Measurements

The Company measures assets and liabilities at fair value based on an expected exit price, which represents the amount that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis, whereby inputs used in valuation techniques are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:

Level 1Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying values of the Company’s accounts payable and accrued and other liabilities approximate their respective fair values due to the short period of time to payment.

Insurance Reserves and Insurance-related Accruals

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, first party injury coverages including personal injury protection under state law and general business liabilities up to certain limits. The recorded liabilities reflect the estimated 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 determined on a quarterly basis by internal actuaries through an analysis of historical trends, and changes in claims experience, including consideration of new information and application of loss development factors, and frequency and severity assumptions, among other inputs and assumptions for the insurance reserves

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and insurance-related accruals. On an annual basis or more frequently as determined by management, an independent third-party actuary will evaluate the liabilities for appropriateness with claims reserve valuations.

Insurance claims may take years to completely settle, and the Company has available limited historical loss experience because of the limited operational history. The Company makes certain assumptions based on currently available information and industry statistics, with the loss development factors as the most significant assumption related to the insurance reserves and the frequency and severity assumptions as the most significant assumptions related to insurance-related accruals, 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. The impact of these factors on ultimate costs for insurance is difficult to estimate and could be material. However, while the Company believes that the insurance reserve and insurance-related accrual amounts are adequate, the ultimate liabilities may be in excess of, or less than, the amounts provided. As a result, the net amounts that will ultimately be paid to settle the liabilities and when amounts will be paid may significantly vary from the estimated amounts provided for on the condensed consolidated balance sheets. For example, disruptive factors may distort data, metrics and patterns and result in rapid increases in insurance cost and reserve deficiency. These disruptive factors can include recent economic conditions and ongoing global events such as the high inflationary environment, increased litigation, higher than expected losses across the commercial auto industry and trends in markets in which the Company operates, including the potential insolvency of other insurance providers covering drivers in the market. The Company continues to review its insurance estimates in a regular, ongoing process as historical loss experience develops, additional claims are reported and settled, and the legal, regulatory and economic environment evolves.

Leases

In accordance with ASC 842, the Company determines if an arrangement is or contains a lease at contract inception by assessing whether the arrangement contains an identified asset and whether the lessee has the right to control such asset. The Company determines the classification and measurement of its leases upon lease commencement. The Company enters into certain agreements as a lessor and either leases or subleases the underlying asset in the agreement to customers. The Company also enters into certain agreements as a lessee. If any of the following criteria are met, the Company classifies the lease as a financing lease (as a lessee) or as a direct financing or sales-type lease (both as a lessor):

•The lease transfers ownership of the underlying asset to the lessee by the end of the lease term;

•The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise;

•The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset;

•The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or

•The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

Leases that do not meet any of the above criteria are accounted for as operating leases.

Lessor

The Company’s lease arrangements include vehicle rentals to drivers or renters under the Flexdrive program and Light Vehicle rentals to single-use riders. Due to the short-term nature of these arrangements, the Company classifies these leases as operating leases. The Company does not separate lease and non-lease components, such as insurance or roadside assistance provided to the lessee, in its lessor lease arrangements. Lease payments are primarily fixed and are recognized as revenue in the period over which the lease arrangement occurs. Taxes or other fees assessed by governmental authorities that are both imposed on and concurrent with each lease revenue-producing transaction and collected by the Company from the lessee are excluded from the consideration in its lease arrangements. The Company mitigates residual value risk of its leased assets by performing regular maintenance and repairs, as necessary, and through periodic reviews of asset depreciation rates based on the Company's ongoing assessment of present and estimated future market conditions.

Lessee

The Company’s leases include real estate property to support its operations and Flexdrive vehicles that may be used by drivers to provide ridesharing services on the Lyft Platform. For leases with a term greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of lease payments over the term. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options.

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The Company does not separate lease and non-lease components of contracts for real estate property leases, but has elected to do so for vehicle leases when non-lease components exist in these arrangements. For certain leases, the Company also applies a portfolio approach to account for right-of-use assets and lease liabilities that are similar in nature and have nearly identical contract provisions.

The Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company determines its incremental borrowing rate based on the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment.

Lease payments may be fixed or variable; however, only fixed payments are included in the Company’s lease liability calculation. Operating leases are included in operating lease right-of-use assets, operating lease liabilities — current and operating lease liabilities on the condensed consolidated balance sheets. Lease costs for the Company's operating leases are recognized on a straight-line basis primarily within operating expenses over the lease term. Finance leases are included in property and equipment, net, accrued and other current liabilities, and other liabilities on the condensed consolidated balance sheets. Finance lease assets are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term in cost of revenue on the condensed consolidated statements of operations. The interest component of finance leases is included in cost of revenue on the condensed consolidated statements of operations and recognized using the effective interest method over the lease term. Variable lease payments are recognized primarily in operating expenses in the period in which the obligation for those payments is incurred.

Similar to other long-lived assets discussed below, the Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets are not recoverable, the impairment recognized is measured as the amount by which the carrying value of the asset exceeds its fair value. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease. The Company committed to a decision to exit and sublease or cease use of certain facilities to align with the Company’s anticipated operating needs and incurred impairment charges related to real estate operating right-of-use assets of $2.5 million and $13.0 million during the three and nine months ended September 30, 2023, respectively. There was no such charge during the three and nine months ended September 30, 2024. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for further information.

Variable Interest Entities

In accordance with Accounting Standards Codification Topic 810, Consolidation (“ASC 810”), the Company evaluates its ownership, contractual and other interests in entities to assess whether it has a variable interest in entities in which it has a financial relationship and, if so, whether or not those entities are variable interest entities (“VIEs”). These evaluations are complex, involving judgment and the use of estimates and assumptions based on available historical and prospective information, among other factors. For an entity to qualify as a VIE, ASC 810 requires the Company to determine if the Company is the primary beneficiary of the VIE, and, if so, to consolidate such entity into its condensed consolidated financial statements.

The Company consolidates VIEs in which it has a controlling financial interest and is therefore deemed the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance; and (b) the obligation to absorb the VIE losses and the right to receive benefits that are significant to the VIE. Periodically, the Company reevaluates its ownership, contractual and other interests in entities to determine whether any changes in its interest or relationship with an entity impacts the determination of whether it is still the primary beneficiary of such entity. The Company has determined that it was the primary beneficiary of one VIE as of September 30, 2024.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In June 2022, the FASB issued Accounting Standards Update ("ASU") No. 2022-03, "Fair Value Measurement (Topic 820) Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions", which clarifies guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security to contractual restrictions that prohibit the sale of an equity security and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. Effective on January 1, 2024, the Company adopted this standard, which did not have a material impact on the condensed consolidated financial statements and related disclosures.

Recent Accounting Pronouncements Not Yet Adopted

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In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which amends and enhances the disclosure requirements for reportable segments. All disclosure requirements under this standard will also be required for public entities with a single reportable segment. The new standard will be effective for the Company for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact of adopting this standard on the consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures", which requires companies to provide disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The new requirements will be effective for public business entities for fiscal periods beginning after December 15, 2024. The Company is currently assessing the impact of adopting this standard on the consolidated financial statements.

In March 2024, the SEC adopted final rules under SEC Release No. 33-11275, "The Enhancement and Standardization of Climate-Related Disclosures for Investors", which requires registrants to provide certain climate-related information in their registration statements and annual reports. As it pertains to the financial statements, the final rules require the financial statement footnotes to include certain disclosures regarding the amounts of expenses (or capitalized costs) incurred that relate to severe weather events and other natural conditions, as well as other disclosures regarding the material impact on financial estimates and assumptions of severe weather events and other natural conditions or disclosed targets or transition plans. It also requires disclosure of financial statement amounts related to carbon offsets and renewable energy credits. In April 2024, the SEC issued an order staying these rules pending the completion of judicial review of litigation challenging the validity of the rules. The disclosures will be required at the earliest in the Company's annual financial statements for the year ended December 31, 2025. The Company is currently evaluating the impact of this on its 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):


	September 30, 2024
	Cost or Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
Unrestricted Balances(1)
Money market funds	$	178,967	$	—	$	—	$	178,967
Money market deposit accounts	296,084		—		—		296,084
Certificates of deposit	111,149		299		(141)		111,307
Commercial paper	815,799		1,109		(754)		816,154
Corporate bonds	102,812		108		(8)		102,912
U.S. government and agency securities	270,474		356		(1)		270,829
Total unrestricted cash equivalents and short-term investments	1,775,285		1,872		(904)		1,776,253
Restricted Balances
Money market funds	42,957		—		—		42,957
Term deposits	2,194		—		—		2,194
Certificates of deposit	115,921		294		(171)		116,044
Commercial paper	841,855		973		(622)		842,206
Corporate bonds	78,107		77		(7)		78,177
U.S. government and agency securities	385,053		451		(2)		385,502
Total restricted cash equivalents and investments	1,466,087		1,795		(802)		1,467,080
Total unrestricted and restricted cash equivalents and investments	$	3,241,372	$	3,667	$	(1,706)	$	3,243,333

_______________

(1)Excludes $150.8 million of cash, which is included within the $1.9 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets.

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	December 31, 2023
	Cost or Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
Unrestricted Balances(1)
Money market funds	$	28,351	$	—	$	—	$	28,351
Money market deposit accounts	117,626		—		—		117,626
Certificates of deposit	179,607		200		(4)		179,803
Commercial paper	918,278		584		(331)		918,531
Corporate bonds	29,171		6		(5)		29,172
U.S. government securities	231,926		82		—		232,008
Total unrestricted cash equivalents and short-term investments	1,504,959		872		(340)		1,505,491
Restricted Balances(2)
Money market funds	44,241		—		—		44,241
Term deposits	3,539		—		—		3,539
Certificates of deposit	144,935		175		(1)		145,109
Commercial paper	618,854		366		(146)		619,074
Corporate bonds	12,409		3		(1)		12,411
U.S. government securities	224,635		84		—		224,719
Total restricted cash equivalents and investments	1,048,613		628		(148)		1,049,093
Total unrestricted and restricted cash equivalents and investments	$	2,553,572	$	1,500	$	(488)	$	2,554,584

_______________

(1)Excludes $179.7 million of cash, which is included within the $1.7 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets.

(2)Excludes $1.4 million of restricted cash, which is included within the $1.0 billion of restricted cash and cash equivalents and restricted short-term investments on the condensed consolidated balance sheets.

The following table summarizes a reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the condensed consolidated balance sheets (in thousands):


	September 30, 2024		December 31, 2023

Cash and cash equivalents	$	770,298	$	558,636
Restricted cash and cash equivalents	270,248		211,786
Restricted cash, included in prepaid expenses and other current assets	1,364		1,364
Total cash, cash equivalents and restricted cash and cash equivalents	$	1,041,910	$	771,786

The Company’s short-term investments consist of available-for-sale debt securities and term deposits. The term deposits are at cost, which approximates fair value.

The remaining maturity of the Company’s investment portfolio was less than one year as of the periods presented. No individual security incurred continuous unrealized losses for greater than 12 months.

The Company purchases investment grade marketable debt securities which are rated by nationally recognized statistical credit rating organizations in accordance with its investment policy. This policy is designed to minimize the Company's exposure to credit losses. As of September 30, 2024, the credit-quality of the Company’s marketable available-for-sale debt securities had remained stable. The unrealized losses recognized on marketable available-for-sale debt securities as of September 30, 2024 were primarily related to the continued market volatility associated with uncertain economic outlook. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. The Company is not aware of any specific event or circumstance that would require the Company to change its quarterly assessment of credit losses for any marketable available-for-sale debt security as of September 30, 2024. These estimates may change, as new events occur and additional information is obtained, and will be recognized on the condensed consolidated financial statements as soon as they become known. No credit losses were recognized as of September 30, 2024 for the Company’s marketable and non-marketable debt securities.

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The following table summarizes the Company’s available-for-sale debt securities in an unrealized loss position for which no allowance for credit losses was recorded, aggregated by major security type (in thousands):


	September 30, 2024
	Estimated Fair Value		Unrealized Losses
Certificates of deposit	$	27,968	$	(312)
Corporate bonds	47,859		(15)
Commercial paper	97,592		(1,376)
U.S. government securities	9,938		(1)
Total available-for-sale debt securities in an unrealized loss position	$	183,357	$	(1,704)

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following as of the dates indicated (in thousands):


	September 30, 2024		December 31, 2023
Insurance-related accruals(1)	$	721,760	$	643,147
Legal and tax related accruals	366,786		296,336
Ride-related accruals	229,717		212,114
Insurance claims payable and related fees	66,137		52,609
Long-term debt, current(2)	40,151		25,798
Other	290,630		278,851
Accrued and other current liabilities	$	1,715,181	$	1,508,855

_______________

(1)Refer to Note 2 "Summary of Significant Accounting Policies" above for more information on these insurance-related accruals.

(2)Represents current portion of long-term debt primarily related to the Non-revolving Loan and Master Vehicle Loan. Refer to Note 7 "Debt" for more information.

Other Income (Expense), Net

The following table sets forth the primary components of other income (expense), net as reported on the condensed consolidated statements of operations (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Interest income	$	44,247	$	36,869	$	122,878	$	105,429
Gain (loss) on sale of securities, net	(49)		(6)		(96)		(201)
Sublease income	911		1,183		3,027		3,737
Gain on equity method investment(1)	—		—		—		12,926
Foreign currency exchange gains (losses), net	1,469		(2,484)		(1,717)		294
Other, net(2)	4,363		(1,163)		9,849		2,504
Other income (expense), net	$	50,941	$	34,399	$	133,941	$	124,689

_______________

(1)In the quarter ended June 30, 2023, the Company acquired non-marketable equity securities of a privately held company. Refer to Note 13 “Variable Interest Entities” for more information on this transaction.

(2)In the quarter ended September 30, 2024, the Company recorded a gain of $3.2 million in other income (expense), net related to a change in fair value of a non-marketable equity security. In the quarter ended March 31, 2024, the Company recorded a gain on extinguishment of $5.1 million in other income (expense), net related to the repurchase of the 2025 Notes. Refer to Note 7 "Debt" for more information on this transaction.

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4. Fair Value Measurements

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables set forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated by level within the fair value hierarchy (in thousands):


	September 30, 2024
	Level 1		Level 2		Level 3		Total
Assets
Unrestricted cash equivalents and investments(1)
Money market funds	$	178,967	$	—	$	—	$	178,967
Certificates of deposit	—		111,307		—		111,307
Commercial paper	—		816,154		—		816,154
Corporate bonds	—		102,912		—		102,912
U.S. government and agency securities	—		270,829		—		270,829
Total unrestricted cash equivalents and short-term investments	178,967		1,301,202		—		1,480,169
Restricted cash equivalents and investments(2)
Money market funds	42,957		—		—		42,957
Certificates of deposit	—		116,044		—		116,044
Commercial paper	—		842,206		—		842,206
Corporate bonds	—		78,177		—		78,177
U.S. government and agency securities	—		385,502		—		385,502
Total restricted cash equivalents and investments	42,957		1,421,929		—		1,464,886
Total financial assets	$	221,924	$	2,723,131	$	—	$	2,945,055

_______________

(1)$150.8 million of cash and $296.1 million of money market deposit accounts are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $1.9 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets.

(2)$2.2 million of restricted term deposits are not subject to recurring fair value measurement and therefore excluded from this table. However, this balance is included within the $1.5 billion of restricted cash and cash equivalents and restricted short-term investments on the condensed consolidated balance sheets.


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets
Unrestricted cash equivalents and investments(1)
Money market funds	$	28,351	$	—	$	—	$	28,351
Certificates of deposit	—		179,803		—		179,803
Commercial paper	—		918,531		—		918,531
Corporate bonds	—		29,172		—		29,172
U.S. government securities	—		232,008		—		232,008
Total unrestricted cash equivalents and short-term investments	28,351		1,359,514		—		1,387,865
Restricted cash equivalents and investments(2)
Money market funds	44,241		—		—		44,241
Certificates of deposit	—		145,109		—		145,109
Commercial paper	—		619,074		—		619,074
Corporate bonds	—		12,411		—		12,411
U.S. government securities	—		224,719		—		224,719
Total restricted cash equivalents and investments	44,241		1,001,313		—		1,045,554
Total financial assets	$	72,592	$	2,360,827	$	—	$	2,433,419

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_______________

(1)$179.7 million of cash, $117.6 million of money market deposit accounts and $3.5 million of term deposits are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $1.7 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets.

(2)$1.4 million of restricted cash is not subject to recurring fair value measurement and therefore excluded from this table. However, this balance is included within the $1.0 billion of restricted cash and cash equivalents and restricted short-term investments on the condensed consolidated balance sheets.

During the nine months ended September 30, 2024, the Company did not make any transfers between the levels of the fair value hierarchy.

Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Company’s non-marketable equity securities are investments in privately held companies without readily determinable fair values and the carrying value of these non-marketable equity securities are remeasured to fair value based on price changes from observable transactions of identical or similar securities of the same issuer (referred to as the measurement alternative) or for impairment. Any changes in carrying value are recorded within other income (expense), net in the condensed consolidated statements of operations.

There were $9.1 million and $5.9 million of financial instruments measured at fair value on a non-recurring basis within other investments on the condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023, respectively.

5. Leases

Real Estate Operating Leases

The Company leases real estate property at approximately 66 locations as of September 30, 2024. These leases are classified as operating leases. As of September 30, 2024, the remaining lease terms vary from approximately two months to six years. For certain leases the Company has options to extend the lease term for periods varying from one month to ten years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. For leases with an initial term of 12 months or longer, the Company has recorded a right-of-use asset and lease liability representing the fixed component of the lease payment. Any fixed payments related to non-lease components, such as common area maintenance or other services provided by the landlord, are accounted for as a component of the lease payment and therefore, a part of the total lease cost.

Flexdrive Program

The Company operates a fleet of rental vehicles through its independently managed subsidiary, a portion of which are leased from third-party vehicle leasing companies. These leases are classified as finance leases and are included in property and equipment, net on the condensed consolidated balance sheets. As of September 30, 2024, the remaining lease terms vary between three months to four years. These leases generally do not contain any non-lease components and, as such, all payments due under these arrangements are allocated to the respective lease component.

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Lease Position as of September 30, 2024

The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheets (in thousands, except for remaining lease terms and percentages):


	September 30, 2024		December 31, 2023
Operating Leases
Assets
Operating lease right-of-use assets	$	83,866	$	98,202
Liabilities
Operating lease liabilities, current	$	41,752	$	42,556
Operating lease liabilities, non-current	103,779		134,102

Lyft, Inc. [LYFT] Filings
10-Q	[2024-11-07]
10-Q	[2024-08-07]
10-Q	[2024-05-09]
10-K	[2024-02-20]
10-Q	[2023-11-09]
10-Q	[2023-08-09]
10-Q	[2023-05-08]
10-K	[2023-02-27]
10-Q	[2022-11-08]
10-Q	[2022-08-05]
10-Q	[2022-05-10]
10-K	[2022-02-28]
10-Q	[2021-11-04]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-03-01]
10-Q	[2020-11-12]
10-Q	[2020-08-13]
10-Q	[2020-05-08]
10-K	[2020-02-28]
10-Q	[2019-11-04]
10-Q	[2019-08-13]
10-Q	[2019-05-14]
S-1	[2019-03-01]