Lyft Inc

Previous wording

Lyft, Inc. (the “Company” or “Lyft”) started a movement to revolutionize transportation. In 2012, we launched our peer-to-peer marketplace for on-demand ridesharing and have continued to pioneer innovations. Today, Lyft is one of the largest multimodal transportation networks in the United States and Canada. We have an important purpose, which is to get riders out into the world so they can live their lives together, and to provide drivers a way to work that gives them control over their time and money.

Current wording

Lyft, Inc. (the “Company” or “Lyft”) started a movement to revolutionize transportation. In 2012, we launched our peer-to-peer marketplace for on-demand ridesharing and have continued to pioneer innovations. Today, Lyft is one of the largest multimodal transportation networks in the United States and Canada. We have an important purpose, which is to serve and connect. We strive to get riders out into the world so they can live their lives together, and to provide drivers a way to work that gives them control over their time and money.

Previous wording

Riders and drivers want and value choice, and we believe there remains an opportunity for growth in our marketplace. In September 2023, we launched Women+ Connect, a new feature that offers women and nonbinary drivers the option to turn on a preference within the Lyft App to prioritize matches with nearby women and nonbinary riders. In February 2024, we made the commitment to drivers that after external fees are subtracted, their guaranteed share of rider payments will be 70% or more each week. We are focused on delivering a great rideshare experience and will continue to innovate for drivers and riders, creating an increasingly differentiated service over time. We are committed to building a durable, healthy and profitable business for riders, drivers and shareholders. In the second quarter of 2024, we achieved net income for the first time in our operating history.

Current wording

Riders and drivers want and value choice, and we believe there remains an opportunity for growth in our marketplace. In July 2024, we launched price lock, a new subscription offering that caps the price of a rider's regular and scheduled rides during the rider's chosen pickup time. In February 2024, we made the commitment to drivers that after external fees are subtracted, their guaranteed share of rider payments will be 70% or more each week. In September 2023, we launched Women+ Connect, a new feature that offers women and nonbinary drivers the option to turn on a preference within the Lyft App to prioritize matches with nearby women and nonbinary riders and in 2024, we extended Women+ Connect nationwide. We are focused on delivering a great rideshare experience and will continue to innovate for drivers and riders, creating an increasingly differentiated service over time. We are committed to building a durable, healthy and profitable business for riders, drivers and shareholders. In the second quarter of 2024, we achieved net income for the first time in our operating history.

Previous wording

In February 2024, we completed an offering of $460 million aggregate principal amount of the 2029 Notes in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. We used the net proceeds of the offering to (1) repurchase a portion of our 2025 Notes concurrently with the pricing of the offering in separate and privately negotiated transactions with certain holders of its 2025 Notes, (2) pay the cost of the 2029 Capped Calls and (3) purchase approximately $50 million of the Class A common stock from institutional investors through one of the initial purchasers of the 2029 Notes or its affiliate, acting as Lyft’s agent, at a price per share equal to the last reported sale price of the Class A common stock on the Nasdaq Global Select Market on the date of the pricing of the 2029 Notes. Refer to Note 7 “Debt” and Note 8 "Common Stock" to the condensed consolidated financial statements for information regarding these transactions.

Current wording

In February 2024, we completed an offering of $460 million aggregate principal amount of the 2029 Notes in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. We used the net proceeds of the offering to (1) repurchase a portion of our 2025 Notes concurrently with the pricing of the offering in separate and privately negotiated transactions with certain holders of the 2025 Notes, (2) pay the cost of the 2029 Capped Calls and (3) purchase approximately $50 million of the Class A common stock from institutional investors through one of the initial purchasers of the 2029 Notes or its affiliate, acting as Lyft’s agent, at a price per share equal to the last reported sale price of the Class A common stock on the Nasdaq Global Select Market on the date of the pricing of the 2029 Notes. Refer to Note 7 “Debt” and Note 8 "Common Stock" to the condensed consolidated financial statements for information regarding these transactions.

Previous wording

The increase in the number of Active Riders in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 was due primarily to our focus on rider engagement and improved retention.

Current wording

The increase in the number of Active Riders in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 was due primarily to our focus on rider engagement, improved retention and overall marketplace health.

Previous wording

The improvements in net income (loss) as a percentage of Gross Bookings and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 were due primarily to Rides growth as well as our cost-restructuring efforts initiated in previous years which helped us to partially offset the impact of increasing insurance costs to net income (loss) and Adjusted EBITDA.

Current wording

Net loss as a percentage of Gross Bookings and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 were relatively flat due primarily to Rides growth as well as our cost-restructuring efforts initiated in previous years which helped us to partially offset the impact of higher variable costs, including certain insurance costs, investments in rider engagement and higher legal expenses to net loss and Adjusted EBITDA.

Previous wording

Cost of revenue primarily consists of costs directly related to revenue generating transactions through our multimodal platform which primarily includes insurance costs, payment processing charges, and other costs. Insurance costs consist of insurance generally required under TNC and city regulations for ridesharing, and bike and scooter rentals and also includes occupational hazard insurance for drivers in California. Payment processing charges include merchant fees, chargebacks and failed charges. Other costs included in cost of revenue are hosting and platform-related technology costs, personnel-related compensation costs, depreciation, amortization of technology-related intangible assets, asset write-off charges and costs related to Flexdrive, which include vehicle lease expenses and remarketing gains and losses related to the sale of vehicles. Gross profit is defined as revenue less cost of revenue.

Current wording

Cost of revenue primarily consists of costs directly related to revenue generating transactions through our multimodal platform which primarily includes insurance costs, payment processing charges, and other costs. Insurance costs consist of insurance generally required under TNC and city regulations for ridesharing, and bike and scooter rentals and also includes occupational hazard insurance for drivers. Payment processing charges include merchant fees, chargebacks and failed charges. Other costs included in cost of revenue are hosting and platform-related technology costs, personnel-related compensation costs, depreciation, amortization of technology-related intangible assets, asset write-off charges and costs related to Flexdrive, which include vehicle lease expenses and remarketing gains and losses related to the sale of vehicles. Gross profit is defined as revenue less cost of revenue.

Previous wording

Operations and support expenses primarily consist of personnel-related compensation costs of local operations teams and teams who provide phone, email and chat support to users, Light Vehicle fleet operations support costs, driver background checks and onboarding costs, fees paid to third-parties providing operations support, facility costs and certain car rental fleet support costs. Light Vehicle fleet operations support costs include general repairs and maintenance, and other customer support activities related to repositioning bikes and scooters for rider convenience, cleaning and safety checks.

Current wording

Operations and support expenses primarily consist of personnel-related compensation costs of local operations teams and teams who provide phone, email and chat support to users, Light Vehicle fleet operations support costs, driver background checks and onboarding costs, fees paid to third-parties providing operations support, facilities costs and certain car rental fleet support costs. Light Vehicle fleet operations support costs include general repairs and maintenance, and other customer support activities related to repositioning bikes and scooters for rider convenience, cleaning and safety checks.

Previous wording

General and administrative expenses primarily consist of personnel-related compensation costs, professional services fees, certain insurance costs that are generally not required under TNC regulations, certain loss contingency expenses including legal accruals and settlements, insurance claims administrative fees, policy spend, depreciation, facility costs and other corporate costs. General and administrative expenses are expensed as incurred.

Current wording

General and administrative expenses primarily consist of personnel-related compensation costs, professional services fees, certain insurance costs that are generally not required under TNC regulations, certain loss contingency expenses including legal accruals and settlements, insurance claims administrative fees, policy spend, depreciation, facilities costs and other corporate costs. General and administrative expenses are expensed as incurred.

Previous wording

Our provision for income taxes consists of federal and state taxes in the U.S. and foreign taxes in jurisdictions in which we conduct business. As we expand the scale of our international business activities, any changes in the U.S. and foreign taxation of such activities may increase our overall provision for income taxes in the future.

Current wording

Our provision for (benefit from) income taxes consists of federal and state taxes in the U.S. and foreign taxes in jurisdictions in which we conduct business. As we expand the scale of our international business activities, any changes in the U.S. and foreign taxation of such activities may increase our overall provision for (benefit from) income taxes in the future.

Previous wording

Comparison of the three and six months ended June 30, 2024 to the three and six months ended June 30, 2023

Current wording

Comparison of the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2023

Previous wording

Revenue increased $414.9 million, or 41%, in the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, due primarily to an increase of 15% in Rides and 10% in Active Riders as we benefited from increased ride frequency, which is demonstrated by Rides growth exceeding Active Riders growth, and continued improvements in marketplace health. Investments in driver supply, which are recorded as a reduction to revenue, decreased by $126.0 million for the quarter ended June 30, 2024 as compared to the same quarter in the prior year as driver supply on the platform benefited from organic growth and drivers spending more time on the platform.

Current wording

Revenue increased $365.1 million, or 32%, in the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, due primarily to an increase of 16% in Rides and 9% in Active Riders as we benefited from increased ride frequency, which is demonstrated by Rides growth exceeding Active Riders growth, and continued improvements in marketplace health. Investments in driver supply, which are recorded as a reduction to revenue, decreased by $79.1 million for the quarter ended September 30, 2024 as compared to the same quarter in the prior year as driver supply on the platform benefited from organic growth and drivers spending more time on the platform.

Previous wording

Revenue increased $691.6 million, or 34%, in the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, due primarily to an increase of 19% in Rides as we benefited from continued improvements in marketplace health. Investments in driver supply, which are recorded as a reduction to revenue, decreased by $204.4 million for the six months ended June 30, 2024 as compared to the same period in the prior year.

Current wording

Revenue increased $1.1 billion, or 33%, in the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, due primarily to an increase of 18% in Rides as we benefited from continued improvements in marketplace health. Investments in driver supply, which are recorded as a reduction to revenue, decreased by $283.5 million for the nine months ended September 30, 2024 as compared to the same period in the prior year.

Previous wording

Cost of revenue increased $419.3 million, or 36%, in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was due primarily to a $384.4 million increase in insurance costs driven by recent economic factors including the high inflationary environment, increased litigation, and higher than expected paid losses across the commercial auto industry as well as an increase in ride volume. There was also an increase of $37.8 million in transaction fees driven by higher ride volume.

Current wording

Cost of revenue increased $243.8 million, or 38%, in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was due primarily to a $187.0 million increase in insurance costs driven by recent economic factors including the high inflationary environment, increased litigation, and higher than expected paid losses across the commercial auto industry as well as an increase in ride volume. There was also a $34.2 million increase in restructuring costs related to the restructuring events in the third quarter of 2024, consisting of (i) $13.4 million in fixed asset disposals, (ii) $10.8 million in other current assets disposals and other costs and (iii) $10.0 million in accelerated depreciation of fixed assets, and a $24.0 million increase in transaction fees driven by higher ride volume.

Previous wording

Cost of revenue increased $212.9 million, or 35%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was due primarily to a $189.9 million increase in insurance costs driven by recent economic factors including the high inflationary environment, increased litigation, and higher than expected paid losses across the commercial auto industry as well as an increase in ride volume. There was also an increase of $16.6 million in transaction fees driven by higher ride volume.

Current wording

Cost of revenue increased $663.0 million, or 37%, in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was due primarily to a $571.4 million increase in insurance costs driven by recent economic factors including the high inflationary environment, increased litigation, and higher than expected paid losses across the commercial auto industry as well as an increase in ride volume. There was also a $61.8 million increase in transaction fees driven by higher ride volume and a $29.2 million increase in restructuring costs in 2024 compared to 2023.

Previous wording

Operations and support expenses increased $8.1 million, or 8%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was due primarily to increases of $6.8 million in Light Vehicle fleet operations support costs, $6.5 million in driver onboarding costs and rider and driver support costs and $4.4 million Flexdrive related costs. These increases were offset by a $3.6 million decrease in facilities costs, a $3.5 million decrease in depreciation, a $2.3 million decrease in personnel-related costs and a $2.1 million decrease in stock-based compensation driven by restructuring events initiated in prior years, which included reductions in headcount and the cease use of certain facilities.

Current wording

Operations and support expenses increased $10.9 million, or 3%, in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was due primarily to increases of $16.9 million in driver onboarding costs and rider and driver support costs, $13.2 million in Light Vehicle fleet operations support costs and $10.3 million Flexdrive related costs. These increases were partially offset by a $19.7 million decrease in facilities costs, a $6.4 million decrease in stock-based compensation, a $4.2 million decrease in personnel-related costs and a $3.9 million decrease in depreciation driven by restructuring events initiated in prior years, which included reductions in headcount and the cease use of certain facilities.

Previous wording

Research and development expenses decreased $152.7 million, or 43%, in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The decrease was primarily due to a $85.7 million decrease in stock-based compensation and a $61.8 million decrease in personnel-related costs driven by a reduction in headcount after the restructuring events initiated in prior years.

Current wording

Research and development expenses decreased $157.5 million, or 34%, in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The decrease was primarily due to a $94.3 million decrease in stock-based compensation and a $60.7 million decrease in personnel-related costs driven by a reduction in headcount after the restructuring events initiated in prior years.

Previous wording

Sales and marketing expenses increased $96.7 million, or 43%, in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was primarily due to a $104.9 million increase in rider, driver and Light Vehicle rider incentive programs. This increase was partially offset by decreases of $12.3 million in personnel-related costs and $11.2 million in stock-based compensation driven by a reduction in headcount after the restructuring events initiated in prior years.

Current wording

Sales and marketing expenses increased $85.8 million, or 66%, in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily due to a $69.1 million increase in rider, driver and Light Vehicle rider incentive programs due to investments in rider engagement and a $9.7 million increase in advertising expenses related to brand and other marketing.

Previous wording

Sales and marketing expenses increased $67.2 million, or 62%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was primarily due to a $60.2 million increase in rider, driver and Light Vehicle rider incentive programs. This increase was partially offset by decreases of $6.8 million in personnel-related costs and $3.7 million in stock-based compensation driven by a reduction in headcount after the restructuring events initiated in prior years.

Current wording

Sales and marketing expenses increased $182.6 million, or 51%, in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily due to a $174.0 million increase in rider, driver and Light Vehicle rider incentive programs and a $15.3 million increase in advertising expenses related to brand and other marketing. These increases were partially offset by decreases of $12.9 million in personnel-related costs and $12.1 million in stock-based compensation driven by a reduction in headcount after the restructuring events initiated in prior years.

Previous wording

General and administrative expenses increased $51.2 million, or 25%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The increase was primarily due to increases of $42.5 million in certain loss contingencies including legal and tax accruals and settlements, $8.2 million in consulting and advisory costs and $7.7 million in an accrual for self-retained general business liabilities. These increases were partially offset by a decrease of $18.0 million in personnel-related costs driven by a reduction in headcount after the restructuring events initiated in prior years.

Current wording

General and administrative expenses increased $58.1 million, or 30%, in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily due to a net increase of $29.9 million in certain loss contingencies including legal and tax accruals and settlements inclusive of a $14.2 million tax accrual release in the third quarter of 2024, $27.4 million in an accrual for self-retained general business liabilities and $5.1 million in consulting and advisory costs.

Previous wording

General and administrative expenses increased $31.0 million, or 7%, in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The increase was primarily due to increases of $38.3 million in certain loss contingencies including legal and tax accruals and settlements, $23.0 million in an accrual for self-retained general business liabilities, $9.8 million in bad debt expense and $6.7 million in claims administration fees. These increases were partially offset by a decrease of $28.7 million in personnel-related costs and $19.2 million in stock-based compensation driven by a reduction in headcount after the restructuring events initiated in prior years.

Current wording

General and administrative expenses increased $89.1 million, or 14%, in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily due to increases of $68.3 million in certain loss contingencies including legal and tax accruals and settlements, $50.5 million in an accrual for self-retained general business liabilities, $8.2 million in bad debt expense and $5.4 million in claims administration fees. These increases were partially offset by decreases of $27.0 million in personnel-related costs and $19.9 million in stock-based compensation driven by a reduction in headcount after the restructuring events initiated in prior years.

Previous wording

Other income (expense), net decreased $11.1 million, or 21%, in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. The decrease was primarily due to a $12.9 million gain on an equity method investment incurred in the second quarter of 2023 and a $2.9 million decrease due to foreign currency exchange. These decreases were partially offset by a $5.6 million increase in interest income in the second quarter of 2024 compared to the same period in 2023 due to higher returns on investments related to the Federal Reserve's increases in interest rates.

Current wording

Other income (expense), net increased $16.5 million, or 48%, in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily due to a $7.4 million increase in interest income in the third quarter of 2024 compared to the same period in 2023 due to higher returns on investments. There was also a $4.0 million increase due to foreign currency exchange.

Previous wording

Other income (expense), net decreased $7.3 million, or 8%, in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. The decrease was primarily due to a $12.9 million gain on an equity method investment incurred in the second quarter of 2023 and a $6.0 million decrease due to foreign currency exchange. These decreases were partially offset by a $10.1 million increase in interest income in the first half of 2024 compared to the same period in 2023 due to higher returns on investments related to the Federal Reserve's increases in interest rates and a $5.1 million gain on extinguishment related to the repurchase of 2025 Notes.

Current wording

Other income (expense), net increased $9.3 million, or 7%, in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. The increase was primarily due to a $17.4 million increase in interest income in the nine months ended September 30, 2024 compared to the same period in 2023 due to higher returns on investments and a $5.1 million gain on extinguishment related to the repurchase of 2025 Notes. These increases were partially offset by a $12.9 million gain on an equity method investment incurred in the second quarter of 2023 and a $2.0 million decrease due to foreign currency exchange.

Previous wording

(1)Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment and scooter fleet.

Current wording

(2)Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment and scooter fleet.

Previous wording

Adjusted EBITDA is a key performance measure and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is a key metric, both of which our management uses to assess our operating performance and the operating leverage in our business. Because Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. Net income (loss) is the most directly comparable financial measure to Adjusted EBITDA. We calculate Adjusted EBITDA as GAAP net income (loss), adjusted for:

Current wording

Adjusted EBITDA is a key performance measure and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is a key metric, both of which our management uses to assess our operating performance and the operating leverage in our business. Because Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. Net loss is the most directly comparable financial measure to Adjusted EBITDA.

Previous wording

We calculate Adjusted EBITDA as net income (loss), adjusted for:

Current wording

We calculate Adjusted EBITDA as net loss, adjusted for:

Previous wording

We announced restructuring plans in the fourth quarter of 2022 and second quarter of 2023 to reduce operating expenses. We believe the costs associated with the restructurings are distinguishable from ongoing operating costs and do not reflect current or expected performance of our ongoing operations. We believe the adjustment to exclude the costs related to restructuring from Adjusted EBITDA is useful to investors by enabling them to better assess our ongoing operating performance and provide for better comparability with our historically disclosed Adjusted EBITDA amounts. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for information regarding these restructuring plans.

Current wording

We announced restructuring plans in the fourth quarter of 2022, second quarter of 2023 and third quarter of 2024 to reduce operating expenses and align strategic priorities. We believe the costs associated with the restructurings are distinguishable from ongoing operating costs and do not reflect current or expected performance of our ongoing operations. We believe the adjustment to exclude the costs related to restructuring from Adjusted EBITDA is useful to investors by enabling them to better assess our ongoing operating performance and provide for better comparability with our historically disclosed Adjusted EBITDA amounts. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for information regarding these restructuring plans.

Previous wording

For more information regarding the limitations of Adjusted EBITDA, Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) and a reconciliation of net income (loss) to Adjusted EBITDA, see the section titled “Reconciliation of Non-GAAP Financial Measures”.

Current wording

For more information regarding the limitations of Adjusted EBITDA, Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) and a reconciliation of net loss to Adjusted EBITDA, see the section titled “Reconciliation of Non-GAAP Financial Measures”.

Previous wording

Adjusted Net Income (Loss) is a measure used by our management to understand and evaluate our operating performance and trends. Net income (loss) is the most directly comparable financial measure to Adjusted Net Income (Loss).

Current wording

Adjusted Net Income (Loss) is a measure used by our management to understand and evaluate our operating performance and trends. Net loss is the most directly comparable financial measure to Adjusted Net Income (Loss).

Previous wording

We define Adjusted Net Income (Loss) as net income (loss) adjusted for:

Current wording

We define Adjusted Net Income (Loss) as net loss adjusted for:

Previous wording

Net income (loss) is the most directly comparable financial measure to Adjusted EBITDA. The following table provides a reconciliation of net income (loss) to Adjusted EBITDA (in millions):

Current wording

Net loss is the most directly comparable financial measure to Adjusted EBITDA. The following table provides a reconciliation of net loss to Adjusted EBITDA (in millions):

Previous wording

(1)Includes $1.5 million and $2.9 million related to the interest component of vehicle-related finance leases in the three and six months ended June 30, 2024, respectively. Includes $0.7 million and $1.1 million related to the interest component of vehicle-related finance leases in the three and six months ended June 30, 2023. Refer to Note 5 “Leases” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for information regarding the interest component of vehicle-related finance leases.

Current wording

(1)Includes $1.5 million and $4.4 million related to the interest component of vehicle-related finance leases in the three and nine months ended September 30, 2024, respectively. Includes $1.1 million and $2.2 million related to the interest component of vehicle-related finance leases in the three and nine months ended September 30, 2023. Refer to Note 5 “Leases” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for information regarding the interest component of vehicle-related finance leases.

Previous wording

(3)In the six months ended June 30, 2023, we incurred restructuring charges of $50.9 million of severance and other employee costs and $25.3 million related to right-of-use-asset impairments and other costs related to the restructuring plans announced in April 2023 and November 2022. Restructuring related charges for stock-based compensation of $9.9 million, accelerated depreciation of $1.0 million and payroll tax expense related to stock-based compensation of $0.6 million incurred in the nine months ended September 30, 2023 are included on their respective line items. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for information regarding the restructuring plans announced in November 2022 and April 2023.

Current wording

(3)In the nine months ended September 30, 2023, we incurred restructuring charges of $50.9 million of severance and other employee costs and $25.3 million related to right-of-use-asset impairments and other costs related to the restructuring plans announced in April 2023 and November 2022. Restructuring related charges for stock-based compensation of $9.9 million, accelerated depreciation of $1.0 million and payroll tax expense related to stock-based compensation of $0.6 million incurred in the nine months ended September 30, 2023 are included on their respective line items. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for information regarding the restructuring plans announced in November 2022 and April 2023.

Previous wording

Net income (loss) is the most directly comparable financial measure to Adjusted Net Income (Loss). The following table provides a reconciliation of net income (loss) to Adjusted Net Income (Loss) (in millions):

Current wording

Net loss is the most directly comparable financial measure to Adjusted Net Income (Loss). The following table provides a reconciliation of net loss to Adjusted Net Income (Loss) (in millions):

Previous wording

(2)In the six months ended June 30, 2023, we incurred restructuring charges of $50.9 million of severance and other employee costs, $25.3 million related to right-of-use-asset impairments and other costs and $1.0 million of accelerated depreciation related to the restructuring plans announced in April 2023 and November 2022. Restructuring related charges for stock-based compensation of $9.9 million and payroll tax expense related to stock-based compensation of $0.6 million incurred in the nine months ended September 30, 2023 are included on their respective line items. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for information regarding the restructuring plan announced in November 2022.

Current wording

(2)In the nine months ended September 30, 2023, we incurred restructuring charges of $50.9 million of severance and other employee costs, $25.3 million related to right-of-use-asset impairments and other costs and $1.0 million of accelerated depreciation related to the restructuring plans announced in April 2023 and November 2022. Restructuring related charges for stock-based compensation of $9.9 million and payroll tax expense related to stock-based compensation of $0.6 million incurred in the nine months ended September 30, 2023 are included on their respective line items. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for information regarding the restructuring plan announced in November 2022.

Previous wording

Cash provided by operating activities was $432.4 million for the six months ended June 30, 2024, which consisted of a net loss of $(26.5) million primarily offset by changes in working capital of $267.7 million. The year over year improvement to net loss for the six months ended June 30, 2024, from $(301.9) million to $(26.5) million was a result of increase in our revenues and the actions we have taken to reduce our operating expenses, which culminated in the achievement of quarterly net income for the three months ended June 30, 2024 for the first time in our operating history. Net income (loss) was also offset by non-cash adjustments for stock-based compensation expense of $165.8 million, which decreased year over year due to a reduction in headcount driven by the restructuring activities initiated in prior years, and depreciation and amortization expense of $70.1 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in our insurance reserves due to a rise in commercial auto insurance rates on a per mile basis compared to the prior year and an increase in ride volume in the first half of 2024 compared to previous periods, (ii) an increase in accounts payable which was primarily due to the timing of insurance claim payments and (iii) an increase in insurance-related accruals.

Current wording

Cash provided by operating activities was $696.4 million for the nine months ended September 30, 2024, which consisted of a net loss of $(38.9) million primarily offset by changes in working capital of $423.0 million. The year over year improvement to net loss for the nine months ended September 30, 2024, from $(314.0) million to $(38.9) million was a result of increase in our revenues and the actions we have taken to reduce our operating expenses. Net loss was also offset by non-cash adjustments for stock-based compensation expense of $254.8 million, which decreased year over year due to a reduction in headcount driven by the restructuring activities initiated in prior years, and depreciation and amortization expense of $115.2 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in our insurance reserves due to a rise in commercial auto insurance rates on a per mile basis compared to the prior year, an increase in ride volume in 2024 compared to previous periods and strategic risk management decisions to retain additional risk in certain markets, (ii) an increase in accounts payable which was primarily due to the timing of insurance claim payments and (iii) an increase in insurance-related accruals. There was also an increase in certain loss contingencies including legal and tax accruals. These were partially offset by (i) increases to prepaid expenses for deposits related to our annual insurance renewals and (ii) a decrease to our operating lease liabilities related to ordinary payments for our real estate operating leases.

Previous wording

Cash used in operating activities was $144.0 million for the six months ended June 30, 2023 which consisted of a net loss of $(301.9) million and changes in working capital of ($148.0) million. Net income (loss) was offset by non-cash stock-based compensation expense of $294.3 million and depreciation and amortization expense of $55.8 million. The changes in working capital were primarily driven by (i) a decrease in our insurance reserves as insurance payments outpaced accruals in the period, which was offset by (ii) impairments of operating lease right-of-use assets as part of the restructuring activities initiated in the fourth quarter of 2022.

Current wording

Cash used in operating activities was $141.8 million for the nine months ended September 30, 2023. This consisted primarily of a net loss of $314.0 million. This was offset by non-cash stock-based compensation expense of $392.9 million and depreciation and amortization expense of $85.4 million. The changes in working capital were primarily driven by (i) a decrease in our insurance reserves as insurance payments outpaced accruals in the period and (ii) increases to prepaid expenses for deposits related to our annual insurance renewals. These were offset by impairments of operating lease right-of-use assets as part of the restructuring activities initiated in the fourth quarter of 2022.

Previous wording

Cash used in investing activities was $317.2 million for the six months ended June 30, 2024, which primarily consisted of purchases of marketable securities of $2.1 billion partially offset by proceeds from sales and maturities of marketable securities of $1.8 billion.

Current wording

Cash used in investing activities was $323.9 million for the nine months ended September 30, 2024, which primarily consisted of purchases of marketable securities of $3.0 billion partially offset by proceeds from sales and maturities of marketable securities of $2.7 billion.

Previous wording

Cash provided by investing activities was $840.9 million for the six months ended June 30, 2023, which primarily consisted of proceeds from sales and maturities of marketable securities of $2.1 billion. This was partially offset by purchases of marketable securities of $1.2 billion.

Current wording

Cash provided by investing activities was $706.8 million for the nine months ended September 30, 2023, which primarily consisted of proceeds from sales and maturities of marketable securities of $3.1 billion. This was partially offset by purchases of marketable securities of $2.4 billion.

Previous wording

Cash used in financing activities was $66.9 million for the six months ended June 30, 2024, which primarily consisted of repayment of loans of $41.0 million and principal payments on finance lease obligations of $23.6 million. This also included a net cash inflow of $0.2 million related to transactions related to the issuance of our 2029 Notes which included $460.0 million in proceeds from the issuance of the 2029 Notes and expenditures of $350.0 million related to the settlement of the 2025 Notes, $50.0 million related to the repurchase of Class A Common Stock, $47.9 million related to the purchase of capped calls and $11.9 million in payments of debt issuance costs.

Current wording

Cash used in financing activities was $102.3 million for the nine months ended September 30, 2024, which primarily consisted of repayment of loans of $61.8 million and principal payments on finance lease obligations of $35.4 million. This also included a net cash inflow of $0.2 million related to transactions related to the issuance of our 2029 Notes which included $460.0 million in proceeds from the issuance of the 2029 Notes and expenditures of $350.0 million related to the settlement of the 2025 Notes, $50.0 million related to the repurchase of Class A common stock, $47.9 million related to the purchase of capped calls and $11.9 million in payments of debt issuance costs.

Previous wording

Cash used in financing activities was $83.4 million for the six months ended June 30, 2023, which primarily consisted of repayment of loans of $48.5 million and principal payments on finance lease obligations of $24.9 million.

Current wording

Cash used in financing activities was $106.1 million for the nine months ended September 30, 2023, which primarily consisted of repayment of loans of $60.5 million and principal payments on finance lease obligations of $35.9 million.