Item 7.01 Regulation FD Disclosure
On September 8, 2020, Lyft, Inc. (the "Company" or "Lyft"), provided an update
on business trends for the month of August 2020 and on its Adjusted EBITDA
outlook for the third quarter ended September 30, 2020 relative to updates
provided on the Company's second quarter earnings call on August 12, 2020.
In the first two months of the third quarter, rides on Lyft's rideshare platform
were down 53.6% versus the same period a year ago. Rideshare rides in the month
of August 2020 increased 7.3% versus July 2020 and were down 53.0% versus the
same period a year ago. In the week ended September 6, 2020, rideshare rides
reached a new high since April as the change in rideshare rides recovered to
less than a 50% year-over-year decline.
While local recovery trends continue to vary significantly across Lyft's
marketplace, the Company's rideshare operations in Canada have been recovering
more quickly than in the United States. For example, in the week ended September
6, 2020, rideshare rides were down less than 20% year-over-year in Toronto,
while weekly rides in Vancouver reached a record all-time high.
In August, the Company used a lower amount of driver incentives than originally
anticipated as more drivers returned to the platform, improving supply
conditions on the Company's rideshare marketplace. While trends in driver supply
vary significantly between individual cities, the Company expects that lower
driver incentives spend will result in a more favorable relationship between
revenue and rideshare rides in the third quarter than previously expected. Based
on this improved outlook, the Company now expects that the year-over-year change
in revenue will modestly outperform the year-over-year change in rideshare rides
in the third quarter if driver incentives spend remains at August 2020 levels in
September 2020.
On September 4, 2020, the Company along with key coalition partners, each funded
an additional $17.5 million investment to support "Yes on 22 - Save App-Based
Jobs & Services" in California.
Given the stronger performance in August 2020 versus July 2020, the Company
continues to expect that it can manage its Adjusted EBITDA loss for the third
quarter below $265 million if driver incentives spend and average daily
rideshare ride volume in September 2020 are unchanged versus August 2020 levels.
This expectation includes the incremental investment related to supporting the
passage of Proposition 22 in California.
Lyft expects to release financial results for the third quarter ended September
30, 2020 in November.
Disclosure Information
Lyft announces material information to the public about Lyft, its products and
services and other matters through a variety of means, including filings with
the Securities and Exchange Commission, press releases, public conference calls,
webcasts, the investor relations section of its website (investor.lyft.com), its
Twitter account (@lyft), and its blogs (including: lyft.com/blog, lyft.com/hub,
eng.lyft.com, medium.com/@LyftLevel5, medium.com/sharing-the-ride-with-lyft and
medium.com/@johnzimmer) in order to achieve broad, non-exclusionary distribution
of information to the public and for complying with its disclosure obligations
under Regulation FD.
Forward Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements generally relate to future events or Lyft's future financial or
operating performance. In some cases, you can identify forward looking
statements because they contain words such as "may," "will," "should,"
"expects," "plans," "anticipates," "going to," "could," "intends," "target,"
"projects," "contemplates," "believes," "estimates," "predicts," "potential" or
"continue" or the negative of these words or other similar terms or expressions
that concern Lyft's expectations, strategy, priorities, plans or intentions.
Forward-looking statements in this Current Report on Form 8-K include, but are
not limited to, statements regarding trends in Lyft's business and the related
impact of COVID-19, and Lyft's future financial and operating performance,
including its outlook for Adjusted EBITDA and expectations regarding revenue and
rideshare rides. Lyft's expectations and beliefs regarding these matters may not
materialize, and actual results in future periods are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected, including risks related to the impact of the COVID-19 pandemic and
individual, business and government responses thereto, on our business,
operations and the economy,

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and risks regarding our ability to forecast our performance due to our limited
operating history and the COVID-19 pandemic. The forward-looking statements
contained in this Current Report on Form 8-K are also subject to other risks and
uncertainties, including those more fully described in Lyft's filings with the
Securities and Exchange Commission ("SEC"), including Lyft's Annual Report on
Form 10-K for the fiscal year ended December 31, 2019, Quarterly Report on Form
10-Q for the fiscal quarter ended March 31, 2020 and Quarterly Report on Form
10-Q for the fiscal quarter ended June 30, 2020 as filed with the SEC. The
forward-looking statements in this Current Report on Form 8-K are based on
information available to Lyft as of the date hereof, and Lyft disclaims any
obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
Guidance for Adjusted EBITDA loss excludes interest expense, other income
(expense), net, provision for income taxes, depreciation and amortization, costs
related to acquisitions, stock-based compensation expense, payroll tax expense
related to stock-based compensation, and changes to the liabilities for
insurance required by regulatory agencies attributable to historical periods,
restructuring and related charges, and costs related to the transfer of certain
legacy auto insurance liabilities. We have not reconciled Adjusted EBITDA
guidance to GAAP net income (loss) because we do not provide guidance on GAAP
net income (loss) or the reconciling items between Adjusted EBITDA and GAAP net
income (loss) as a result of the uncertainty regarding, and the potential
variability of, certain of these items, such as stock-based compensation
expense. Accordingly, a reconciliation of the non-GAAP financial measure
guidance to the corresponding GAAP measure is not available without unreasonable
effort.
Lyft records historical changes to liabilities for insurance required by
regulatory agencies for financial reporting purposes in the quarter of positive
or adverse development even though such development may be related to claims
that occurred in prior periods. For example, if in the first quarter of a given
year, the cost of claims or our estimates for our cost of claims grew by $1
million for claims related to the prior fiscal year or earlier, the expense
would be recorded for GAAP purposes within the first quarter instead of in the
results of the prior period. Lyft believes these prior period changes to
insurance liabilities do not illustrate the current period performance of Lyft's
ongoing operations since these prior period changes relate to claims that could
potentially date back years. Lyft has limited ability to influence the ultimate
development of historical claims. Accordingly, including the prior period
changes would not illustrate the performance of Lyft's ongoing operations or how
the business is run or managed by Lyft. For consistency, Lyft does not adjust
the calculation of Adjusted EBITDA for any prior period based on any positive or
adverse development that occurs subsequent to the quarter end. Lyft believes the
adjustment to exclude the historical changes to liabilities for insurance
required by regulatory agencies from Adjusted EBITDA is useful to investors by
enabling them to better assess Lyft's operating performance in the context of
current period results.
Lyft uses Adjusted EBITDA, in conjunction with GAAP measures as part of Lyft's
overall assessment of its performance, including the preparation of Lyft's
annual operating budget and quarterly forecasts, to evaluate the effectiveness
of Lyft's business strategies, and to communicate with Lyft's board of directors
concerning Lyft's financial performance. Adjusted EBITDA is a key performance
measure that Lyft's management uses to assess Lyft's operating performance and
the operating leverage in Lyft's business. Because Adjusted EBITDA facilitates
internal comparisons of our historical operating performance on a more
consistent basis, Lyft uses Adjusted EBITDA for business planning purposes.
Lyft's definitions may differ from the definitions used by other companies and
therefore comparability may be limited. In addition, other companies may not
publish these or similar metrics. Furthermore, these metrics have certain
limitations in that they do not include the impact of certain expenses that are
reflected in our consolidated statement of operations that are necessary to run
our business. Thus, Adjusted EBITDA should be considered in addition to, not as
a substitute for, or in isolation from, measures prepared in accordance with
GAAP.
The information in this Form 8-K is being furnished under Item 7.01 and shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability
of such section, nor shall it be deemed incorporated by reference in any filing
of the Company under the Securities Act of 1933, as amended, or the Exchange
Act, regardless of any general incorporation language in such filing, unless
expressly incorporated by specific reference in such filing.

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