LYFT Q4 2020 Earnings

Call Details

• Call Title: Lyft, Inc. Q4 2020 Earnings Call
• Date: February 9, 2021 9:30 PM UTC
• Management Team:
  • Sean Woodhull (Head of Investor Relations)
  • Logan Green (Co-founder and Chief Executive Officer)
  • John Zimmer (Co-founder and President)
  • Brian Roberts (Chief Financial Officer)

Call Summary

Financial Performance

• Rideshare rides declined 49.6% year-over-year in Q4 versus a 51.8% decline in Q3.
• Monthly rideshare declines were down 47% in October, down 50% in November, and down 52% in December year-over-year.
• Q4 revenue was $570 million, which was up 14% sequentially from $500 million in Q3 and toward the top end of the initial outlook range of $555 to $575 million.
• Active riders totaled 12.6 million in Q4, which increased roughly 30 basis points versus Q3.
• Revenue per active rider was $45.40 in Q4, which increased 14% sequentially from $39.94 and was up $1 versus the prior-year quarter.
• Q4 contribution was $316 million, up 27% sequentially from $249 million in Q3, and contribution margin was 55.5%, up over 500 basis points from 49.8% in Q3 and above the outlook range of 51.5% to 52.5%.
• The Q4 contribution margin included a $15 million reduction in driver acquisition/engagement spend in December and a $6.7 million net benefit from remarketing flex-drive vehicles that management described as one-time benefits.
• Adjusted EBITDA loss was $150 million in Q4, which was 19% better than the $185 million outlook and improved by nearly $90 million sequentially.
• Unrestricted cash, cash equivalents, and short-term investments totaled $2.3 billion at quarter end.
• Q4 CapEx was $23 million and total 2020 CapEx was approximately $94 million.

Guidance

• January rideshare rides were down 51% year-over-year, with month-over-month ride growth of 4% in January and positive week-on-week growth excluding MLK week.
• Lyft expects Q1 rideshare rides to be flat or slightly down versus Q4, implying a Q1 year-over-year decline of 45% to 46% versus a 49.6% decline in Q4.
• Q1 reported revenue is expected to be down at least $15 to $25 million relative to Q4, inclusive of a $10 to $20 million headwind from planned driver supply investments.
• Lyft estimates Q1 revenue will decline 42% to 43% year-over-year versus a 44% decline in Q4.
• Q1 adjusted EBITDA loss is expected to be between $145 million and $150 million, inclusive of a $10 million payroll tax headwind, a $5 million bike/scooter incremental loss, and $10 to $20 million of driver supply investment.
• Q1 contribution margin is expected to be approximately 51% to 51.5%, and contribution margin will be reduced by up to $20 million of driver supply investment and by weaker remarketing profits and seasonal bike/scooter trends.
• Lyft expects Q2 to mark a major inflection point with rides increasing quarter-over-quarter and year-over-year, and the company expects exceptional year-over-year revenue growth in Q2 followed by significant organic growth in Q3 and Q4.
• Lyft reiterated a goal to achieve adjusted EBITDA profitability in 2021, with a stated possibility of achieving profitability in Q3 contingent on a strong summer rebound and specific volume scenarios.