Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 05, 2024 | |
Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38846 | |
Entity Registrant Name | Lyft, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8809830 | |
Entity Address, Address Line One | 185 Berry Street | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94107 | |
City Area Code | 844 | |
Local Phone Number | 250-2773 | |
Title of each class | Class A common stock, par value of $0.00001 per share | |
Trading Symbol(s) | LYFT | |
Name of each exchange on which registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001759509 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Entity Information | ||
Entity Common Stock, Shares Outstanding | 401,626,774 | |
Class B Common Stock | ||
Entity Information | ||
Entity Common Stock, Shares Outstanding | 8,530,629 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 604,357 | $ 558,636 |
Short-term investments | 1,195,970 | 1,126,548 |
Prepaid expenses and other current assets | 879,606 | 892,235 |
Total current assets | 2,679,933 | 2,577,419 |
Restricted cash and cash equivalents | 213,903 | 211,786 |
Restricted investments | 1,125,027 | 837,291 |
Other investments | 39,704 | 39,870 |
Property and equipment, net | 528,233 | 465,844 |
Operating lease right of use assets | 88,959 | 98,202 |
Intangible assets, net | 51,299 | 59,515 |
Goodwill | 255,391 | 257,791 |
Other assets | 14,635 | 16,749 |
Total assets | 4,997,084 | 4,564,467 |
Current liabilities | ||
Accounts payable | 116,070 | 72,282 |
Insurance reserves | 1,489,577 | 1,337,868 |
Accrued and other current liabilities | 1,602,588 | 1,508,855 |
Operating lease liabilities — current | 43,229 | 42,556 |
Convertible senior notes, current | 389,374 | 0 |
Total current liabilities | 3,640,838 | 2,961,561 |
Operating lease liabilities | 113,102 | 134,102 |
Long-term debt, net of current portion | 578,334 | 839,362 |
Other liabilities | 87,182 | 87,924 |
Total liabilities | 4,419,456 | 4,022,949 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity | ||
Preferred stock, $0.00001 par value; 1,000,000,000 shares authorized as of June 30, 2024 and December 31, 2023; no shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.00001 par value; 18,000,000,000 Class A shares authorized as of June 30, 2024 and December 31, 2023; 401,620,478 and 391,239,046 Class A shares issued and outstanding, as of June 30, 2024 and December 31, 2023, respectively; 100,000,000 Class B shares authorized as of June 30, 2024 and December 31, 2023; 8,530,629 and 8,566,629 Class B shares issued and outstanding, as of June 30, 2024 and December 31, 2023 | 4 | 4 |
Additional paid-in capital | 10,892,833 | 10,827,378 |
Accumulated other comprehensive income (loss) | (7,773) | (4,949) |
Accumulated deficit | (10,307,436) | (10,280,915) |
Total stockholders’ equity | 577,628 | 541,518 |
Total liabilities and stockholders’ equity | $ 4,997,084 | $ 4,564,467 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Preferred stock par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock shares authorized (in shares) | 18,000,000,000 | 18,000,000,000 |
Common stock shares issued (in shares) | 401,620,478 | 391,239,046 |
Common stock shares outstanding (in shares) | 401,620,478 | 391,239,046 |
Class B Common Stock | ||
Common stock par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 8,530,629 | 8,566,629 |
Common stock shares outstanding (in shares) | 8,530,629 | 8,566,629 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | $ 1,435,846 | $ 1,020,906 | $ 2,713,047 | $ 2,021,454 |
Costs and expenses | ||||
Cost of revenue | 819,518 | 606,599 | 1,574,880 | 1,155,591 |
Operations and support | 115,734 | 107,649 | 218,776 | 206,575 |
Research and development | 98,807 | 154,612 | 198,830 | 351,516 |
Sales and marketing | 176,370 | 109,167 | 321,842 | 225,108 |
General and administrative | 252,643 | 201,398 | 488,896 | 457,938 |
Total costs and expenses | 1,463,072 | 1,179,425 | 2,803,224 | 2,396,728 |
Loss from operations | (27,226) | (158,519) | (90,177) | (375,274) |
Interest expense | (7,852) | (6,151) | (14,900) | (11,584) |
Other income (expense), net | 41,943 | 53,075 | 83,000 | 90,290 |
Income (loss) before income taxes | 6,865 | (111,595) | (22,077) | (296,568) |
Provision for (benefit from) income taxes | 1,851 | 2,667 | 4,444 | 5,343 |
Net income (loss) | $ 5,014 | $ (114,262) | $ (26,521) | $ (301,911) |
Net income (loss) per share, basic (in dollars per share) | $ 0.01 | $ (0.30) | $ (0.07) | $ (0.80) |
Net income (loss) per share, diluted (in dollars per share) | $ 0.01 | $ (0.30) | $ (0.07) | $ (0.80) |
Weighted-average number of shares outstanding used to compute net income (loss) per share, basic (in shares) | 406,512 | 381,884 | 404,033 | 377,828 |
Weighted-average number of shares outstanding used to compute net income (loss) per share, diluted (in shares) | 411,969 | 381,884 | 404,033 | 377,828 |
Cost of revenue | ||||
Stock-based compensation included in costs and expenses: | ||||
Stock-based compensation expense | $ 5,759 | $ 7,503 | $ 11,775 | $ 18,272 |
Operations and support | ||||
Stock-based compensation included in costs and expenses: | ||||
Stock-based compensation expense | 1,895 | 3,981 | 3,989 | 9,909 |
Research and development | ||||
Stock-based compensation included in costs and expenses: | ||||
Stock-based compensation expense | 27,340 | 49,351 | 57,172 | 142,856 |
Sales and marketing | ||||
Stock-based compensation included in costs and expenses: | ||||
Stock-based compensation expense | 4,231 | 7,953 | 8,435 | 19,637 |
General and administrative | ||||
Stock-based compensation included in costs and expenses: | ||||
Stock-based compensation expense | $ 46,513 | $ 45,138 | $ 84,465 | $ 103,635 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 5,014 | $ (114,262) | $ (26,521) | $ (301,911) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | (1,012) | 496 | (505) | 545 |
Unrealized (loss) gain on marketable securities, net of taxes | (488) | (28) | (2,319) | 1,386 |
Other comprehensive income (loss) | (1,500) | 468 | (2,824) | 1,931 |
Comprehensive income (loss) | $ 3,514 | $ (113,794) | $ (29,345) | $ (299,980) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A and Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2022 | $ 388,668 | $ 4 | $ 10,335,013 | $ (9,940,595) | $ (5,754) |
Beginning balance (in shares) at Dec. 31, 2022 | 370,155 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options | 297 | 297 | |||
Issuance of common stock upon exercise of stock options (in shares) | 82 | ||||
Issuance of common stock upon settlement of restricted stock units (in shares) | 7,985 | ||||
Shares withheld related to net share settlement | (1,166) | (1,166) | |||
Shares withheld related to net share settlement (in shares) | (103) | ||||
Stock-based compensation | 180,383 | 180,383 | |||
Other comprehensive income (loss) | 1,463 | 1,463 | |||
Net income (loss) | (187,649) | (187,649) | |||
Ending balance at Mar. 31, 2023 | 381,996 | $ 4 | 10,514,527 | (10,128,244) | (4,291) |
Ending balance (in shares) at Mar. 31, 2023 | 378,119 | ||||
Beginning balance at Dec. 31, 2022 | 388,668 | $ 4 | 10,335,013 | (9,940,595) | (5,754) |
Beginning balance (in shares) at Dec. 31, 2022 | 370,155 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Other comprehensive income (loss) | 1,931 | ||||
Net income (loss) | (301,911) | ||||
Ending balance at Jun. 30, 2023 | 387,043 | $ 4 | 10,633,368 | (10,242,506) | (3,823) |
Ending balance (in shares) at Jun. 30, 2023 | 386,237 | ||||
Beginning balance at Mar. 31, 2023 | 381,996 | $ 4 | 10,514,527 | (10,128,244) | (4,291) |
Beginning balance (in shares) at Mar. 31, 2023 | 378,119 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options | 7 | 7 | |||
Issuance of common stock upon exercise of stock options (in shares) | 2 | ||||
Issuance of common stock upon settlement of restricted stock units (in shares) | 7,431 | ||||
Shares withheld related to net share settlement | (661) | (661) | |||
Shares withheld related to net share settlement (in shares) | (82) | ||||
Issuance of common stock under employee stock purchase plan | 5,569 | 5,569 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 767 | ||||
Stock-based compensation | 113,926 | 113,926 | |||
Other comprehensive income (loss) | 468 | 468 | |||
Net income (loss) | (114,262) | (114,262) | |||
Ending balance at Jun. 30, 2023 | 387,043 | $ 4 | 10,633,368 | (10,242,506) | (3,823) |
Ending balance (in shares) at Jun. 30, 2023 | 386,237 | ||||
Beginning balance at Dec. 31, 2023 | 541,518 | $ 4 | 10,827,378 | (10,280,915) | (4,949) |
Beginning balance (in shares) at Dec. 31, 2023 | 399,806 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options | 1,924 | 1,924 | |||
Issuance of common stock upon exercise of stock options (in shares) | 257 | ||||
Issuance of common stock upon settlement of restricted stock units (in shares) | 6,280 | ||||
Shares withheld related to net share settlement | (1,463) | (1,463) | |||
Shares withheld related to net share settlement (in shares) | (82) | ||||
Repurchase and retirement of common stock | (50,000) | (50,000) | |||
Repurchase and retirement of common stock (in shares) | (3,143) | ||||
Purchase of capped call | (47,886) | (47,886) | |||
Stock-based compensation | 80,098 | 80,098 | |||
Other comprehensive income (loss) | (1,324) | (1,324) | |||
Net income (loss) | (31,535) | (31,535) | |||
Ending balance at Mar. 31, 2024 | 491,332 | $ 4 | 10,810,051 | (10,312,450) | (6,273) |
Ending balance (in shares) at Mar. 31, 2024 | 403,118 | ||||
Beginning balance at Dec. 31, 2023 | 541,518 | $ 4 | 10,827,378 | (10,280,915) | (4,949) |
Beginning balance (in shares) at Dec. 31, 2023 | 399,806 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Other comprehensive income (loss) | (2,824) | ||||
Net income (loss) | (26,521) | ||||
Ending balance at Jun. 30, 2024 | 577,628 | $ 4 | 10,892,833 | (10,307,436) | (7,773) |
Ending balance (in shares) at Jun. 30, 2024 | 410,151 | ||||
Beginning balance at Mar. 31, 2024 | 491,332 | $ 4 | 10,810,051 | (10,312,450) | (6,273) |
Beginning balance (in shares) at Mar. 31, 2024 | 403,118 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options | 262 | 262 | |||
Issuance of common stock upon exercise of stock options (in shares) | 81 | ||||
Issuance of common stock upon settlement of restricted stock units (in shares) | 6,842 | ||||
Shares withheld related to net share settlement | (7,436) | (7,436) | |||
Shares withheld related to net share settlement (in shares) | (456) | ||||
Issuance of common stock under employee stock purchase plan | 4,217 | 4,217 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 566 | ||||
Stock-based compensation | 85,739 | 85,739 | |||
Other comprehensive income (loss) | (1,500) | (1,500) | |||
Net income (loss) | 5,014 | 5,014 | |||
Ending balance at Jun. 30, 2024 | $ 577,628 | $ 4 | $ 10,892,833 | $ (10,307,436) | $ (7,773) |
Ending balance (in shares) at Jun. 30, 2024 | 410,151 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income (loss) | $ (26,521) | $ (301,911) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 70,071 | 55,841 |
Stock-based compensation | 165,837 | 294,309 |
Amortization of premium on marketable securities | 157 | 87 |
Accretion of discount on marketable securities | (43,319) | (28,386) |
Amortization of debt discount and issuance costs | 1,755 | 1,374 |
Gain on sale and disposal of assets, net | (4,514) | (8,902) |
Other | 1,185 | (8,391) |
Changes in operating assets and liabilities, net effects of acquisition | ||
Prepaid expenses and other assets | 12,146 | 18,978 |
Operating lease right-of-use assets | 13,124 | 17,646 |
Accounts payable | 39,854 | (49,404) |
Insurance reserves | 151,709 | (107,833) |
Accrued and other liabilities | 75,047 | (19,091) |
Lease liabilities | (24,152) | (8,330) |
Net cash provided by (used in) operating activities | 432,379 | (144,013) |
Cash flows from investing activities | ||
Purchases of marketable securities | (2,102,390) | (1,192,689) |
Purchases of term deposits | (2,194) | 0 |
Proceeds from sales of marketable securities | 91,712 | 294,115 |
Proceeds from maturities of marketable securities | 1,693,080 | 1,772,926 |
Proceeds from maturities of term deposits | 3,539 | 5,000 |
Purchases of property and equipment and scooter fleet | (48,905) | (88,975) |
Cash paid for acquisitions, net of cash acquired | 0 | 1,630 |
Sales of property and equipment | 46,888 | 48,843 |
Other | 1,113 | 0 |
Net cash (used in) provided by investing activities | (317,157) | 840,850 |
Cash flows from financing activities | ||
Repayment of loans | (40,985) | (48,451) |
Proceeds from issuance of convertible senior notes | 460,000 | 0 |
Payment of debt issuance costs | (11,888) | 0 |
Purchase of capped call | (47,886) | 0 |
Repurchase of Class A Common Stock | (50,000) | 0 |
Payment for settlement of convertible senior notes due 2025 | (350,000) | 0 |
Proceeds from exercise of stock options and other common stock issuances | 6,403 | 5,873 |
Taxes paid related to net share settlement of equity awards | (8,898) | (1,827) |
Principal payments on finance lease obligations | (23,629) | (24,852) |
Contingent consideration paid | 0 | (14,100) |
Net cash used in financing activities | (66,883) | (83,357) |
Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents | (501) | 345 |
Net (decrease) increase in cash, cash equivalents and restricted cash and cash equivalents | 47,838 | 613,825 |
Beginning of period | 771,786 | 391,822 |
End of period | 819,624 | 1,005,647 |
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the consolidated balance sheets | ||
Cash and cash equivalents | 604,357 | 638,434 |
Restricted cash and cash equivalents | 213,903 | 365,849 |
Restricted cash, included in prepaid expenses and other current assets | 1,364 | 1,364 |
Total cash, cash equivalents and restricted cash and cash equivalents | 819,624 | 1,005,647 |
Non-cash investing and financing activities | ||
Financed vehicles acquired | 84,418 | 119,645 |
Purchases of property and equipment and scooter fleet not yet settled | 12,195 | 13,362 |
Right-of-use assets acquired under finance leases | 32,775 | 34,729 |
Right-of-use assets acquired under operating leases | 3,407 | 3,100 |
Remeasurement of finance and operating lease right of use assets | $ (7,600) | $ (2,242) |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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. 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue from contracts with customers (ASC 606) $ 1,321,830 $ 940,958 $ 2,531,568 $ 1,893,655 Rental revenue (ASC 842) 114,016 79,948 181,479 127,799 Total revenue $ 1,435,846 $ 1,020,906 $ 2,713,047 $ 2,021,454 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. 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 $294.7 million and $315.0 million as of June 30, 2024 and December 31, 2023, respectively. The Company’s allowance for credit losses was $10.9 million and $9.8 million as of June 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 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 June 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 six months ended June 30, 2024 and 2023. For the three and six months ended June 30, 2024, in relation to the driver, rider and Light Vehicle rider incentive programs, the Company recorded $184.0 million and $409.2 million as a reduction to revenue, respectively, and $83.8 million and $151.8 million as sales and marketing expense, respectively. For the three and six months ended June 30, 2023, in relation to the driver, rider and Light Vehicle rider incentive programs, the Company recorded $310.0 million and $613.6 million as a reduction to revenue, respectively, and $23.6 million and $46.9 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 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, 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 June 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 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 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs 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 3 Unobservable 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 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, and higher than expected losses across the commercial auto industry. 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. 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 six months ended June 30, 2023, respectively. There was no such charge during the three and six months ended June 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 June 30, 2024. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2022, the FASB issued Accounting Standards Update ("ASU") No. 202 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 6 Months Ended |
Jun. 30, 2024 | |
Additional Financial Information Disclosure [Abstract] | |
Supplemental Financial Statement Information | 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): June 30, 2024 Cost or Unrealized Estimated Gains Losses Unrestricted Balances (1) Money market funds $ 195,386 $ — $ — $ 195,386 Money market deposit accounts 200,188 — — 200,188 Certificates of deposit 150,255 38 (76) 150,217 Commercial paper 817,638 43 (609) 817,072 Corporate bonds 86,724 7 (40) 86,691 U.S. government securities 255,174 9 (104) 255,079 Total unrestricted cash equivalents and short-term investments 1,705,365 97 (829) 1,704,633 Restricted Balances Money market funds 34,730 — — 34,730 Term deposits 2,194 — — 2,194 Certificates of deposit 152,802 34 (70) 152,766 Commercial paper 813,301 38 (492) 812,847 Corporate bonds 55,015 5 (15) 55,005 U.S. government securities 281,458 8 (83) 281,383 Total restricted cash equivalents and investments 1,339,500 85 (660) 1,338,925 Total unrestricted and restricted cash equivalents and investments $ 3,044,865 $ 182 $ (1,489) $ 3,043,558 _______________ (1) Excludes $95.7 million of cash, which is included within the $1.8 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets. December 31, 2023 Cost or Unrealized Estimated 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): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 604,357 $ 558,636 Restricted cash and cash equivalents 213,903 211,786 Restricted cash, included in prepaid expenses and other current assets 1,364 1,364 Total cash, cash equivalents and restricted cash and cash equivalents $ 819,624 $ 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 June 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 June 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 June 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 June 30, 2024 for the Company’s marketable and non-marketable debt securities. 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): June 30, 2024 Estimated Fair Value Unrealized Losses Certificates of deposit $ 102,550 $ (146) Corporate bonds 70,754 (55) Commercial paper 1,035,366 (1,094) U.S. government securities 367,805 (187) Total available-for-sale debt securities in an unrealized loss position $ 1,576,475 $ (1,482) Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following as of the dates indicated (in thousands): June 30, 2024 December 31, 2023 Insurance-related accruals (1) $ 683,366 $ 643,147 Legal and tax related accruals 305,845 296,336 Ride-related accruals 221,485 212,114 Insurance claims payable and related fees 51,050 52,609 Long-term debt, current (2) 39,832 25,798 Other 301,010 278,851 Accrued and other current liabilities $ 1,602,588 $ 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest income $ 40,079 $ 34,469 $ 78,631 $ 68,560 Gain (loss) on sale of securities, net 3 (80) (47) (195) Sublease income 1,039 1,264 2,116 2,554 Gain on equity method investment (1) — 12,926 — 12,926 Foreign currency exchange gains (losses), net (997) 1,919 (3,186) 2,778 Other, net (2) 1,819 2,577 5,486 3,667 Other income (expense), net $ 41,943 $ 53,075 $ 83,000 $ 90,290 _______________ (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 February 2024, the Company recorded a gain on extinguishment of $5.1 million in other income (expense) related to the repurchase of 2025 Notes. Refer to Note 7 "Debt" for more information on this transaction. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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): June 30, 2024 Level 1 Level 2 Level 3 Total Assets Unrestricted cash equivalents and investments (1) Money market funds $ 195,386 $ — $ — $ 195,386 Certificates of deposit — 150,217 — 150,217 Commercial paper — 817,072 — 817,072 Corporate bonds — 86,691 — 86,691 U.S. government securities — 255,079 — 255,079 Total unrestricted cash equivalents and short-term investments 195,386 1,309,059 — 1,504,445 Restricted cash equivalents and investments (2) Money market funds 34,730 — — 34,730 Certificates of deposit — 152,766 — 152,766 Commercial paper — 812,847 — 812,847 Corporate bonds — 55,005 — 55,005 U.S. government securities — 281,383 — 281,383 Total restricted cash equivalents and investments 34,730 1,302,001 — 1,336,731 Total financial assets $ 230,116 $ 2,611,060 $ — $ 2,841,176 _______________ (1) $95.7 million of cash and $200.2 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 $1.8 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 $1.3 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 _______________ (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 six months ended June 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. The following table provides a reconciliation of the Company's financial assets measured at fair value on a non-recurring basis within other investments on the condensed consolidated balance sheets (in thousands): Six Months Ended June 30, 2024 2023 Balance at beginning of period $ 5,884 $ 5,903 Additions — — Change in fair value — (19) Balance at end of period $ 5,884 $ 5,884 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases Real Estate Operating Leases The Company leases real estate property at approximately 67 locations as of June 30, 2024. These leases are classified as operating leases. As of June 30, 2024, the remaining lease terms vary from approximately one month 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 June 30, 2024, the remaining lease terms vary between six 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. Lease Position as of June 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): June 30, 2024 December 31, 2023 Operating Leases Assets Operating lease right-of-use assets $ 88,959 $ 98,202 Liabilities Operating lease liabilities, current $ 43,229 $ 42,556 Operating lease liabilities, non-current 113,102 134,102 Total operating lease liabilities $ 156,331 $ 176,658 Finance Leases Assets Finance lease right-of-use assets (1) $ 90,630 $ 80,933 Liabilities Finance lease liabilities, current (2) 30,930 25,193 Finance lease liabilities, non-current (3) 65,145 61,321 Total finance lease liabilities $ 96,075 $ 86,514 Weighted-average remaining lease term (years) Operating leases 4.2 4.5 Finance leases 3.0 3.4 Weighted-average discount rate Operating leases 6.8 % 6.7 % Finance leases 6.5 % 6.7 % _______________ (1) This balance is included within property and equipment, net on the condensed consolidated balance sheets and is primarily related to Flexdrive. (2) This balance is included within other current liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive. (3) This balance is included within other liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive. Lease Costs The table below presents certain information related to the costs for operating leases and finance leases for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating Leases Operating lease cost $ 9,481 $ 9,931 $ 19,485 $ 21,489 Finance Leases Amortization of right-of-use assets 6,897 4,790 13,203 8,622 Interest on lease liabilities 1,516 653 2,862 1,061 Other Lease Costs Short-term lease cost 925 968 1,870 1,946 Variable lease cost (1) 2,578 2,852 5,170 5,090 Total lease cost $ 21,397 $ 19,194 $ 42,590 $ 38,208 _______________ (1) Consists primarily of common area maintenance and taxes and utilities for real estate leases. Sublease income was $1.0 million and $2.1 million for the three and six months ended June 30, 2024, respectively, and $1.3 million and $2.6 million for the three and six months ended June 30, 2023, respectively. Sublease income is included within other income, net on the condensed consolidated statement of operations. The related lease expense for these leases is included within operating expenses on the condensed consolidated statement of operations. The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the condensed consolidated statements of cash flows (in thousands): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 30,496 $ 29,756 Operating cash flows from finance leases 2,609 1,212 Financing cash flows from finance leases 23,629 24,852 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2024 (in thousands): Operating Leases Finance Leases Total Leases Remainder of 2024 $ 23,498 $ 18,367 $ 41,865 2025 49,099 34,837 83,936 2026 34,843 30,295 65,138 2027 29,880 13,350 43,230 2028 19,853 10,203 30,056 Thereafter 23,700 — 23,700 Total minimum lease payments 180,873 107,052 287,925 Less: amount of lease payments representing interest (24,542) (10,977) (35,519) Present value of future lease payments 156,331 96,075 252,406 Less: current obligations under leases (43,229) (30,930) (74,159) Long-term lease obligations $ 113,102 $ 65,145 $ 178,247 Future lease payments receivable in car rental transactions under the Flexdrive Program are not material since the lease term is less than a month. |
Leases | Leases Real Estate Operating Leases The Company leases real estate property at approximately 67 locations as of June 30, 2024. These leases are classified as operating leases. As of June 30, 2024, the remaining lease terms vary from approximately one month 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 June 30, 2024, the remaining lease terms vary between six 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. Lease Position as of June 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): June 30, 2024 December 31, 2023 Operating Leases Assets Operating lease right-of-use assets $ 88,959 $ 98,202 Liabilities Operating lease liabilities, current $ 43,229 $ 42,556 Operating lease liabilities, non-current 113,102 134,102 Total operating lease liabilities $ 156,331 $ 176,658 Finance Leases Assets Finance lease right-of-use assets (1) $ 90,630 $ 80,933 Liabilities Finance lease liabilities, current (2) 30,930 25,193 Finance lease liabilities, non-current (3) 65,145 61,321 Total finance lease liabilities $ 96,075 $ 86,514 Weighted-average remaining lease term (years) Operating leases 4.2 4.5 Finance leases 3.0 3.4 Weighted-average discount rate Operating leases 6.8 % 6.7 % Finance leases 6.5 % 6.7 % _______________ (1) This balance is included within property and equipment, net on the condensed consolidated balance sheets and is primarily related to Flexdrive. (2) This balance is included within other current liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive. (3) This balance is included within other liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive. Lease Costs The table below presents certain information related to the costs for operating leases and finance leases for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating Leases Operating lease cost $ 9,481 $ 9,931 $ 19,485 $ 21,489 Finance Leases Amortization of right-of-use assets 6,897 4,790 13,203 8,622 Interest on lease liabilities 1,516 653 2,862 1,061 Other Lease Costs Short-term lease cost 925 968 1,870 1,946 Variable lease cost (1) 2,578 2,852 5,170 5,090 Total lease cost $ 21,397 $ 19,194 $ 42,590 $ 38,208 _______________ (1) Consists primarily of common area maintenance and taxes and utilities for real estate leases. Sublease income was $1.0 million and $2.1 million for the three and six months ended June 30, 2024, respectively, and $1.3 million and $2.6 million for the three and six months ended June 30, 2023, respectively. Sublease income is included within other income, net on the condensed consolidated statement of operations. The related lease expense for these leases is included within operating expenses on the condensed consolidated statement of operations. The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the condensed consolidated statements of cash flows (in thousands): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 30,496 $ 29,756 Operating cash flows from finance leases 2,609 1,212 Financing cash flows from finance leases 23,629 24,852 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2024 (in thousands): Operating Leases Finance Leases Total Leases Remainder of 2024 $ 23,498 $ 18,367 $ 41,865 2025 49,099 34,837 83,936 2026 34,843 30,295 65,138 2027 29,880 13,350 43,230 2028 19,853 10,203 30,056 Thereafter 23,700 — 23,700 Total minimum lease payments 180,873 107,052 287,925 Less: amount of lease payments representing interest (24,542) (10,977) (35,519) Present value of future lease payments 156,331 96,075 252,406 Less: current obligations under leases (43,229) (30,930) (74,159) Long-term lease obligations $ 113,102 $ 65,145 $ 178,247 Future lease payments receivable in car rental transactions under the Flexdrive Program are not material since the lease term is less than a month. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Noncancellable Purchase Commitments In March 2018, the Company entered into a noncancellable arrangement with Amazon Web Services (“AWS”), a web-hosting services provider, under which the Company had an obligation to purchase a minimum amount of services from this vendor through June 2021. The parties modified the aggregate commitment amounts and timing in January 2019, May 2020 and February 2022. Under the most recent amended arrangement, the Company committed to spend an aggregate of at least $350 million between February 2022 and January 2026, with a minimum amount of $80 million in each of the four contractual periods, on services with AWS. As of June 30, 2024, the Company has made payments of $293.7 million under the amended arrangement. In May 2019, the Company entered into a noncancellable arrangement with the City of Chicago, with respect to the Divvy bike share program, under which the Company has an obligation to pay approximately $7.5 million per year to the City of Chicago through January 2028 and to spend a minimum of $50 million on capital equipment for the bike share program through January 2028. The parties modified the commitment amounts and timing in April 2023 to reduce the Company's total payment obligation by $12 million and to supply a maximum of $12 million on capital equipment for the bike share program through 2024. As of June 30, 2024, the Company has made payments totaling $30.0 million and capital equipment investments totaling $59.2 million under the arrangement. Letters of Credit The Company maintains certain stand-by letters of credit from third-party financial institutions in the ordinary course of business to guarantee certain performance obligations related to leases, insurance policies and other various contractual arrangements. None of the outstanding letters of credit are collateralized by cash. As of June 30, 2024 and December 31, 2023, the Company had letters of credit outstanding of $72.9 million and $60.2 million, respectively. Indemnification The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including certain business partners, investors, contractors, parties to certain acquisition or divestiture transactions and the Company’s officers, directors, and certain employees. The Company has agreed to indemnify and defend the indemnified party’s claims and related losses suffered or incurred by the indemnified party resulting from actual or threatened third-party claims because of the Company’s activities or, in some cases, non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded on the condensed consolidated statements of operations in connection with the indemnification provisions have not been material. Legal Proceedings The Company is currently involved in, and may in the future be involved in, legal proceedings, claims, and regulatory and governmental inquiries and investigations in the ordinary course of business, including suits by drivers, riders, renters, third parties and governmental entities (individually or as class actions) alleging, among other things, various wage and expense related claims, violations of state or federal laws, improper disclosure of the Company’s fees, rules or policies, that such fees, rules or policies violate applicable law, or that the Company has not acted in conformity with such fees, rules or policies, as well as proceedings related to product liability, antitrust, its acquisitions, securities issuances or business practices, or public disclosures about the Company or the Company's business. In addition, the Company has been, and is currently, named as a defendant in a number of litigation matters related to allegations of accidents or other trust and safety incidents involving drivers or riders using the Lyft Platform. The outcomes of the Company’s legal proceedings are inherently unpredictable and subject to significant uncertainties. For certain matters for which a material loss is reasonably possible, an estimate of the amount of loss or range of losses is not possible nor is the Company able to estimate the loss or range of losses that could potentially result from the application of nonmonetary remedies. For matters where the Company has recorded a probable and estimable loss, until the final resolution of the matter, there may be exposure to a material loss in excess of the amount recorded. Independent Contractor Classification Matters With regard to independent contractor classification of drivers on the Lyft Platform, the Company is regularly subject to claims, lawsuits, arbitration proceedings, administrative actions, government investigations and other legal and regulatory proceedings at the federal, state and municipal levels challenging the classification of these drivers as independent contractors, and claims that, by the alleged misclassification, the Company has violated various labor and other laws that would apply to driver employees. Laws and regulations that govern the status and classification of independent contractors are subject to change and divergent interpretations by various authorities, which can create uncertainty and unpredictability for the Company. For example, California Assembly Bill 5 (now codified in part at Cal. Labor Code sec. 2775) codified and extended an employment classification test set forth by the California Supreme Court that established a new standard for determining employee or independent contractor status. The passage of this bill led to additional challenges to the independent contractor classification of drivers using the Lyft Platform. For example, on May 5, 2020, the California Attorney General and the City Attorneys of Los Angeles, San Diego and San Francisco filed a lawsuit against the Company and Uber for allegedly misclassifying drivers on the companies’ respective platforms as independent contractors in violation of Assembly Bill 5 and California’s Unfair Competition Law, and on August 5, 2020, the California Labor Commissioner filed lawsuits against the Company and Uber for allegedly misclassifying drivers on the companies’ respective platforms as independent contractors, seeking injunctive relief and material damages and penalties. On August 10, 2020, the court granted a motion for a preliminary injunction, forcing the Company and Uber to reclassify drivers in California as employees until the end of the lawsuit. Subsequently, voters in California approved Proposition 22, a state ballot initiative that provided a framework for drivers utilizing platforms like Lyft to maintain their status as independent contractors under California law. Proposition 22 went into effect on December 16, 2020. On April 20, 2021, the court granted the parties’ joint request to dissolve the preliminary injunction in light of the passage of Proposition 22. On May 5, 2021, the California Labor Commissioner filed a petition to coordinate its lawsuit with the Attorney General lawsuit and three other cases against the Company and Uber. The coordination petition was granted and the coordinated cases have been assigned to a judge in San Francisco Superior Court. On December 19, 2022, the California Attorney General’s and California Labor Commissioner’s cases were stayed in San Francisco Superior Court pending the appeal of a Superior Court order denying Lyft’s and Uber’s motions to compel arbitration. On September 28, 2023, the California Court of Appeal issued a decision upholding the trial court’s order denying Lyft’s and Uber’s motions to compel arbitration. On November 7, 2023, Lyft filed a petition requesting that the California Supreme Court review the Court of Appeal’s decision; the petition was denied on January 17, 2024, and the case was remitted to San Francisco Superior Court on January 29, 2024, and the stay was lifted on July 2, 2024. On January 12, 2021, a group of petitioners led by labor union SEIU filed a separate lawsuit in the California Supreme Court against the State of California alleging that Proposition 22 is unconstitutional under the California Constitution. The California Supreme Court denied review on February 3, 2021. SEIU then filed a similar lawsuit in Alameda County Superior Court on February 11, 2021. Protect App-Based Drivers & Services (PADS) -- the coalition that established and operated the official ballot measure committee that successfully advocated for the passage of Proposition 22 -- intervened in the Alameda lawsuit. On August 20, 2021, after a merits hearing, the Alameda Superior Court issued an order finding that Proposition 22 is unenforceable. Both the California Attorney General and PADS filed appeals to the California Court of Appeal. On March 13, 2023, the California Court of Appeal upheld Proposition 22 as constitutional, while severing two provisions that relate to future amendments of Proposition 22. On April 21, 2023, SEIU filed a petition for review to the California Supreme Court. On June 28, 2023, the California Supreme Court granted SEIU’s petition for review, and briefing was completed on June 3, 2024. The California Supreme Court held oral argument on May 21, 2024 and ordered the matter submitted for decision on June 3, 2024. On July 25, 2024, the California Supreme Court affirmed the decision of the Court of Appeal and unanimously upheld Proposition 22 as constitutional. Certain adverse outcomes of such actions would have a material impact on the Company’s business, financial condition and results of operations, including damages, penalties and potential suspension of operations in impacted jurisdictions, including California. The Company’s chances of success on the merits are still uncertain and any possible loss or range of loss cannot be reasonably estimated. Such regulatory scrutiny or action may create different or conflicting obligations from one jurisdiction to another. Separately, on July 14, 2020, the Massachusetts Attorney General filed a lawsuit against the Company and Uber for allegedly misclassifying drivers as independent contractors under Massachusetts law, and seeking declaratory and injunctive relief. Trial took place from May 13, 2024 to June 3, 2024. On June 27, 2024, the parties reached a resolution to dismiss the litigation with prejudice and Massachusetts drivers will receive new benefits and maintain their flexibility as independent contractors. The amount accrued for these matters is recorded within accrued and other current liabilities on the condensed consolidated balance sheet as of June 30, 2024. The Company is currently involved in a number of putative class actions, thousands of individual claims, including those brought in arbitration or compelled pursuant to the Company's Terms of Service to arbitration, matters brought, in whole or in part, as representative actions under California’s Private Attorneys General Act, Labor Code Section 2698, et seq., alleging that the Company misclassified drivers as independent contractors and other matters challenging the classification of drivers on the Company’s platform as independent contractors. The Company is currently defending allegations in a number of lawsuits that the Company has failed to properly classify drivers and provide those drivers with sick leave and related benefits during the COVID-19 pandemic. The Company’s chances of success on the merits are still uncertain and any possible loss or range of loss cannot be reasonably estimated. The Company disputes any allegations of wrongdoing and intends to continue to defend itself vigorously in these matters. However, results of litigation, arbitration and regulatory actions are inherently unpredictable and legal proceedings related to these driver claims, individually or in the aggregate, could have a material impact on the Company’s business, financial condition and results of operations. Regardless of the outcome, litigation and arbitration of these matters can have an adverse impact on the Company because of defense and settlement costs individually and in the aggregate, diversion of management resources and other factors. Unemployment Insurance Assessment The Company is involved in administrative audits with various state employment agencies, including audits related to driver classification, in California, Oregon, Wisconsin, Illinois, New York, Pennsylvania and New Jersey. The Company believes that drivers are properly classified as independent contractors and plans to vigorously contest any adverse assessment or determination. The Company’s chances of success on the merits are still uncertain. The Company accrues for liabilities that may result from assessments by, or any negotiated agreements with, these employment agencies when a loss is probable and reasonably estimable, and the expense is recorded to general and administrative expenses. In 2018, the New Jersey Department of Labor & Workforce Development (“NJDOL”) opened an audit reviewing whether drivers were independent contractors or employees for purposes of determining whether unemployment insurance regulations apply from 2014 through March 31, 2018. The NJDOL issued an assessment on June 4, 2019 and subsequently issued an updated assessment on March 31, 2021. The assessment was calculated through April 30, 2019, but only calculated the alleged contributions, penalties, and interests owed from 2014 through 2017. The Company filed a petition to challenge the assessment, and are awaiting a hearing. The Company has also submitted payment for the principal revised amount of the assessment to stop interest from accruing on this amount. While the ultimate resolution of this matter is uncertain, the Company recorded an accrual for this matter reflected within accrued and other current liabilities on the condensed consolidated balance sheet as of June 30, 2024. In 2021, the New York State Department of Labor (“NYSDOL”) opened an audit reviewing whether drivers were independent contractors or employees for purposes of determining whether unemployment insurance regulations apply for 2019. The NYSDOL subsequently extended the audit back to 2016. On December 22, 2022, the Company received an assessment for the 2016 to 2019 time period and on December 27, 2023, the Company received a revised assessment covering 2016 to 2020. The Company has appealed these assessments. While the ultimate resolution of this matter is uncertain, the Company recorded an accrual for this matter reflected within accrued and other current liabilities on the condensed consolidated balance sheet as of June 30, 2024. In June 2022, the California Employment Development Department ("EDD") opened an audit reviewing whether drivers were independent contractors or employees for purposes of determining whether unemployment insurance regulations apply from 2018 to 2020. The EDD issued an assessment on June 9, 2023 and subsequently issued an updated assessment on June 27, 2023. The Company filed a petition to challenge the assessment. While the ultimate resolution of this matter is uncertain, the Company recorded an accrual for this matter reflected within accrued and other current liabilities on the condensed consolidated balance sheet as of June 30, 2024. Indirect Taxes The Company is under audit by various domestic tax authorities with regard to indirect tax matters. The subject matter of indirect tax audits primarily arises from disputes on tax treatment and tax rates applied to the sale of the Company’s services in these jurisdictions. The Company accrues indirect taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable and the expense is recorded to general and administrative expenses. Patent Litigation The Company is currently involved in legal proceedings related to alleged infringement of patents and other intellectual property and, in the ordinary course of business, the Company receives correspondence from other purported holders of patents and other intellectual property offering to sell or license such property and/or asserting infringement of such property. The Company disputes any allegation of wrongdoing and intends to defend itself vigorously in these matters. The Company’s chances of success on the merits are still uncertain and any possible loss or range of loss cannot be reasonably estimated. Other Class Actions and Consumer Matters From time to time, the Company becomes involved in putative class actions alleging violations of consumer protection, civil rights, and other laws; antitrust and unfair competition laws such as California’s Cartwright Act, Unfair Practices Act and Unfair Competition Law; and the Americans with Disabilities Act, or the ADA, among others. In 2021, the Company received a favorable outcome in a case in the Northern District of California alleging ADA violations with respect to Lyft’s wheelchair accessible vehicle (“WAV”) offerings in three Bay Area counties, Independent Living Resource Center San Francisco (“ILRC”) v. Lyft, Inc. After hearing evidence at a 5-day bench trial, the court ruled that plaintiffs failed their burden to prove that Lyft violates the ADA. The plaintiffs did not appeal the ruling. Lyft is facing a similar ADA lawsuit seeking injunctive and other relief in the Southern District of New York, Lowell v. Lyft, Inc. On March 24, 2023, the court certified three classes encompassing regions where Lyft does not currently offer WAV service (Westchester County, NY; New York State except New York City; and all other “non-WAV” regions in the U.S.). A bench trial took place from July 8 to July 11, 2024 and a decision is expected in the coming weeks. The Company disputes any allegations of wrongdoing and intends to continue to defend itself vigorously in these matters. The Company’s chances of success on the merits are still uncertain and any possible loss or range of loss cannot be reasonably estimated. The Federal Trade Commission (“FTC”) has alleged violations of Section 5 of the FTC Act in connection with certain advertising claims to drivers. The Company is cooperating with the FTC while seeking to resolve the matter. The Company disputes any allegations of wrongdoing. While the ultimate resolution of this matter is uncertain, the Company recorded an accrual for this matter reflected within accrued and other current liabilities on the condensed consolidated balance sheet as of June 30, 2024. Personal Injury and Other Safety Matters In the ordinary course of the Company’s business, various parties have from time to time claimed, and may claim in the future, that the Company is liable for damages related to accidents or other incidents involving drivers, riders or renters using or who have used services offered on the Lyft Platform, as well as from third parties. The Company is currently named as a defendant in a number of matters related to accidents or other incidents involving drivers, riders, renters and third parties. The Company believes it has meritorious defenses, disputes the allegations of wrongdoing and intends to defend itself vigorously in these matters. There is no pending or threatened claim that has arisen from these accidents or incidents that individually, in the Company’s opinion, is likely to have a material impact on its business, financial condition or results of operations; however, results of litigation and claims are inherently unpredictable and legal proceedings related to such accidents or incidents, in the aggregate, could have a material impact on the Company’s business, financial condition and results of operations. For example, on January 17, 2020, the Superior Court of California, County of Los Angeles, granted the petition of multiple plaintiffs to coordinate their claims relating to alleged sexual assault or harassment by drivers on the Lyft Platform, and a Judicial Council Coordinated Proceeding has been created before the Superior Court of California, County of San Francisco, where the claims of multiple plaintiffs are currently pending. Regardless of the outcome of these or other matters, litigation can have an adverse impact on the Company because of defense and settlement costs individually and in the aggregate, diversion of management resources and other factors. Although the Company intends to vigorously defend against these lawsuits, its chances of success on the merits are still uncertain as these matters are at various stages of litigation and present a wide range of potential outcomes. The Company accrues for losses that may result from these matters when a loss is probable and reasonably estimable. Securities Litigation Beginning in April 2019, multiple putative class actions and derivative actions were filed in state and federal courts against the Company, its directors, certain of its officers, and certain of the underwriters named in the registration statement relating to the Company’s initial public offering (“IPO”) alleging violation of securities laws, breach of fiduciary duties, and other causes of action in connection with the IPO. All of these matters are now resolved except for the derivative actions, which were consolidated into one action in federal court in California and a proposed settlement filed on July 23, 2024 in that action is before the court for consideration. On February 13, 2024, the Company published a press release announcing our financial results for the fourth quarter and fiscal year 2023 that was furnished with our Current Report on Form 8-K filed that same day. The press release contained a clerical error relating to the Company's forward-looking, non-GAAP directional commentary for fiscal year 2024 (the “Clerical Error”). The Clerical Error was promptly corrected on the Company's earnings call and in an updated press release, and the Company filed an amended 8-K. The U.S. Securities and Exchange Commission ("SEC") has requested information relating to the Clerical Error. The Company is responding voluntarily to the requests. On March 5, 2024, a putative class action, captioned Chen v. Lyft, Inc., et al. , Case No.: 3:24-cv-1330, was filed against the Company, our principal executive officer, and principal financial officer, in the United States District Court for the Northern District of California. The putative class action alleges violations of the federal securities laws relating to the Clerical Error. Although the Company believes the consolidated derivative action and putative class action are without merit and intends to vigorously defend against them, its chances of success on the merits are still uncertain and these matters present a wide range of potential outcomes. The Company accrues for losses that may result from these matters when a loss is probable and reasonably estimable and such accruals are recorded within accrued and other current liabilities on the condensed consolidated balance sheets. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Outstanding debt obligations as of June 30, 2024 were as follows (in thousands): Maturities Interest Rates as of June 30, 2024 June 30, 2024 December 31, 2023 Convertible senior notes due 2025 (the "2025 Notes") May 2025 1.50% $ 389,374 $ 743,486 Convertible senior notes due 2029 (the "2029 Notes") March 2029 0.625% 448,900 — Non-revolving Loan 2026 7.61% 1,217 3,115 Master Vehicle Loan 2024 - 2027 2.60% - 7.10% 168,049 118,559 Total long-term debt, including current maturities $ 1,007,540 $ 865,160 Less: Convertible senior notes, current (1) 389,374 — Less: Long-term debt, current (2) 39,832 25,798 Total long-term debt $ 578,334 $ 839,362 _______________ (1) This balance is included within convertible senior notes, current on the condensed consolidated balance sheets. (2) This balance is included within accrued and other current liabilities on the condensed consolidated balance sheets and is primarily related to vehicles. The following table sets forth the primary components of interest expense as reported on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2024 2023 2024 2023 Contractual interest expense related to the 2025 Notes and 2029 Notes $ 2,184 $ 2,803 $ 4,797 $ 5,606 Amortization of debt discount and issuance costs related to the 2025 Notes and 2029 Notes 951 866 1,755 1,690 Vehicle loans and other interest expense 4,717 2,482 8,348 4,288 Interest expense $ 7,852 $ 6,151 $ 14,900 $ 11,584 Convertible Senior Notes due 2025 In May 2020, the Company issued $747.5 million aggregate principal amount of 1.50% convertible senior notes due 2025 (the "2025 Notes") pursuant to an indenture, dated May 15, 2020 (the “ 2025 Note Indenture ” ), between the Company and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee. The 2025 Notes mature on May 15, 2025, unless earlier converted, redeemed or repurchased. The 2025 Notes are senior unsecured obligations of the Company with interest payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2020, at a rate of 1.50% per year. The net proceeds from this offering were approximately $733.2 million, after deducting the initial purchasers’ discounts and commissions and debt issuance costs. The initial conversion rate for the 2025 Notes is 26.0491 shares of the Company's Class A common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $38.39 per share of the Class A common stock. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the 2025 Note Indenture. The 2025 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding February 15, 2025, only under the following circumstances: • during any fiscal quarter (and only during such fiscal quarter), if the last reported sale price of the Company’s Class A common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five • if the Company calls such 2025 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. On or after February 15, 2025, the 2025 Notes will be convertible at the option of the holder until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of the Company's Class A common stock or a combination of cash and shares of the Company's Class A common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the 2025 Note Indenture. Holders of the 2025 Notes who convert their 2025 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the 2025 Note Indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally in the event of a corporate event constituting a fundamental change (as defined in the 2025 Note Indenture), holders of the 2025 Notes may require the Company to repurchase all or a portion of their 2025 Notes at a repurchase price equal to 100% of the principal amount of the 2025 Notes being repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date. In February 2024, the Company, through privately negotiated agreements in connection with the issuance of the 2029 Notes (as defined below), repurchased approximately $356.8 million in aggregate principal amount of 2025 Notes for an aggregate repurchase price of approximately $350.0 million. The Company recognized this repurchase as an extinguishment of debt and recorded a gain on extinguishment of $5.1 million in other income (expense), net on the condensed consolidated statement of operations. Debt issuance costs related to the 2025 Notes totaled $14.3 million at inception and were comprised of discounts and commissions payable to the initial purchasers and third-party offering costs and will be amortized to interest expense using the effective interest method over the contractual term. As of June 30, 2024 , the unamortized debt discount and debt issuance cost of the 2025 Notes was $1.3 million on the condensed consolidated balance sheets. The effective interest rate during the quarter ended June 30, 2024 was 1.9%. During the quarter ended June 30, 2024 , the 2025 Notes did not meet any of the circumstances that would allow for a conversion. Based on the last reported sale price of the Company's Class A common stock on June 30, 2024 , the if-converted value of the 2025 Notes was $143.5 million, which would not exceed the outstanding principal amount. Convertible Senior Notes due 2029 In February 2024, the Company issued $460.0 million aggregate principal amount of 0.625% convertible senior notes due 2029 (the "2029 Notes" together with the 2025 Notes, the "Notes") pursuant to an indenture, dated February 27, 2024 (the “2029 Notes Indenture”) between the Company and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes mature on March 1, 2029, unless earlier converted, redeemed or repurchased. The 2029 Notes are senior unsecured obligations of the Company with interest payable semiannually in arrears on March 1 and September 1 of each year, beginning on September 1, 2024, at a rate of 0.625% per year. The net proceeds from this offering were approximately $448.2 million, after deducting the initial purchasers’ discounts and commissions and debt issuance costs. The 2029 Notes were not issued at a substantial premium, therefore, the Company did not recognize an equity component at issuance. The initial conversion rate for the 2029 Notes is 47.4366 shares of the Company’s Class A common stock per $1,000 principal amount of 2029 Notes, which is equivalent to an initial conversion price of approximately $21.08 per share of the Class A common stock. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the 2029 Notes Indenture. The 2029 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding December 1, 2028 only under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ending June 30, 2024 (and only during such fiscal quarter), if the last reported sale price of the Company’s Class A common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five • if the Company calls such 2029 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events. On or after December 1, 2028, the 2029 Notes will be convertible at the option of the holder until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company will satisfy its conversion obligation by paying cash up to the aggregate principal amount of the 2029 Notes to be converted and by paying and/or delivering, as the case may be, cash, shares of the Company’s Class A common stock or a combination of cash and shares of the Company’s Class A common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the 2029 Notes Indenture. Holders of the 2029 Notes who convert their 2029 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the 2029 Notes Indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally in the event of a corporate event constituting a fundamental change (as defined in the 2029 Notes Indenture), holders of the 2029 Notes may require the Company to repurchase all or a portion of their 2029 Notes at a repurchase price equal to 100% of the principal amount of the 2029 Notes being repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date. Debt issuance costs related to the 2029 Notes totaled $11.8 million at inception and were comprised of discounts and commissions payable to the initial purchasers and third-party offering costs and will be amortized to interest expense using the effective interest method over the contractual term. As of June 30, 2024 , the unamortized debt discount and debt issuance cost of the 2029 Notes was $11.1 million on the condensed consolidated balance sheets. The effective interest rate during the quarter ended June 30, 2024 was 1.16%. During the quarter ended June 30, 2024, the 2029 Notes did not meet any of the circumstances that would allow for a conversion. Based on the last reported sale price of the Company’s Class A common stock on June 30, 2024, the if-converted value of the 2029 Notes was $307.7 million, which would not exceed the outstanding principal amount. The net carrying amounts of the Notes were as follows (in thousands): June 30, 2024 December 31, 2023 2025 Notes Principal $ 390,719 $ 747,498 Unamortized debt discount and debt issuance costs (1,345) (4,012) Net carrying amount of liability component $ 389,374 $ 743,486 2029 Notes Principal $ 460,000 $ — Unamortized debt discount and debt issuance costs (11,100) — Net carrying amount of liability component $ 448,900 $ — As of June 30, 2024 , the total estimated fair values (which represents a Level 2 valuation) of the 2025 Notes and the 2029 Notes were approximately $375.6 million and $456.6 million, respectively. The estimated fair value of the Notes were determined based on a market approach which was determined based on the actual bids and offers of the Notes in an over-the-counter market on the last trading day of the period. The Notes are unsecured and do not contain any financial covenants, restrictions on dividends, incurrence of senior debt or other indebtedness, or restrictions on the issuance or repurchase of securities by the Company. Capped Calls In connection with the issuance of the 2025 Notes, the Company entered into privately negotiated capped call transactions (the “2025 Capped Calls”) with certain of the initial purchasers or their respective affiliates at a cost of approximately $132.7 million. The 2025 Capped Calls cover, subject to anti-dilution adjustments, the number of shares of Class A common stock underlying the 2025 Notes sold in the offering. By entering into the 2025 Capped Calls, the Company expects to reduce the potential dilution to its Class A common stock (or, in the event a conversion of the 2025 Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2025 Notes the trading price of the Company's Class A common stock price exceeds the conversion price of the 2025 Notes. The cap price of the 2025 Capped Calls is initially $73.83 per share and is subject to certain adjustments under the terms of the 2025 Capped Calls. In connection with the issuance of the 2029 Notes, the Company entered into privately negotiated capped call transactions (the “2029 Capped Calls” and together with the 2025 Capped Calls, the “Capped Calls”) with certain financial institutions at a cost of approximately $47.9 million. The 2029 Capped Calls cover, subject to anti-dilution adjustments, the number of shares of Class A common stock underlying the 2029 Notes sold in the offering. By entering into the 2029 Capped Calls, the Company expects to reduce the potential dilution to its Class A common stock (or, in the event a conversion of the 2029 Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2029 Notes the trading price of the Company’s Class A common stock price exceeds the conversion price of the 2029 Notes. The cap price of the 2029 Capped Calls is initially $31.82 per share and is subject to certain adjustments under the terms of the 2029 Capped Calls. The 2025 Capped Calls and the 2029 Capped Calls meet the criteria for classification in equity, are not remeasured each reporting period and are included as a reduction to additional paid-in-capital within shareholders’ equity. Non-revolving Loan Following the acquisition of Flexdrive by the Company on February 7, 2020, Flexdrive remained responsible for its obligations under a Loan and Security Agreement dated March 11, 2019, as amended (the “Non-revolving Loan”) with a third-party lender. On September 20, 2023, the Non-revolving Loan was amended, extending the Company's ability to draw through September 30, 2024 and reducing the borrowing capacity to $50.0 million though, as amended on June 21, 2021 and most recently on September 27, 2022, Flexdrive may request an extension of credit in the form of advances up to a maximum principal amount of $130 million to purchase new Hyundai and Kia vehicles, or for other purposes, subject to approval by the lender. Advances paid or prepaid under the Non-revolving Loan may not be reborrowed. Repayment terms for each advance include equal monthly installments sufficient to fully amortize the advances over the term, with an option for the final installment to be greater than the others. The repayment term for each advance ranges from 24 months to 48 months. Interest is payable monthly in arrears at a fixed interest rate equal to the two-year U.S. Treasury note yield plus a spread of 3.4% for a 24-month term, the three-year U.S. Treasury note yield plus a spread of 3.4% for a 36 month term, and the average of the three and five-year U.S. Treasury note yields plus a spread of 3.4% for a 48 month term. The Non-revolving Loan is secured by all vehicles financed under the Non-revolving Loan. As of June 30, 2024, $5.2 million had been drawn under the Non-revolving Loan and $44.8 million is remaining under the facility. The Non-revolving Loan also contains customary affirmative and negative covenants that, among other things, limit Flexdrive’s ability to enter into certain acquisitions or consolidations or engage in certain asset dispositions. Upon the occurrence of certain events of default, including bankruptcy and insolvency events with respect to Flexdrive or the Company, all amounts due under the Non-revolving Loan may become immediately due and payable, among other remedies. As of June 30, 2024, the Company was in compliance with all covenants related to the Non-revolving Loan in all material aspects. Further, the Company continued to guarantee the payments of Flexdrive for any amounts borrowed. Master Vehicle Loan Following the acquisition of Flexdrive by the Company on February 7, 2020, Flexdrive remained responsible for its obligations under a Master Vehicle Acquisition Financing and Security Agreement, dated February 7, 2020 as amended (the “Master Vehicle Loan”) with a third-party lender. Pursuant to the term of the Master Vehicle Loan, Flexdrive may request loans up to a maximum principal amount of $50 million to purchase vehicles and additional capacity may be requested. Repayment terms for each loan include equal monthly installments sufficient to amortize the loan over the term, with an option for the final installment to be greater than the others and is typically equal to the residual value guarantee the Company provides to the lender. The repayment term for each loan ranges from 12 months to 48 months. Interest is payable monthly in advance at a fixed interest rate equal to the three-year swap rate plus a spread of 2.10% on the date of the loan. Principal amounts outstanding related to the Master Vehicle Loan may be fully or partially prepaid at the option of Flexdrive and must be prepaid under certain circumstances. However, if a loan is terminated for any reason prior to the last day of the minimum loan term Flexdrive will be obligated to pay to the lender, an early termination fee in an amount which is equal to the interest which would otherwise be payable by Flexdrive to lender for the remainder of the minimum loan term for that loan. The Master Vehicle Loan is secured by all vehicles financed under the Master Vehicle Loan as well as certain amounts held in escrow for the benefit of the lender. Amounts held in escrow are recorded as restricted cash on the condensed consolidated balance sheets. The Master Vehicle Loan contains customary affirmative and negative covenants that, among other things, limit Flexdrive’s ability to enter into certain acquisitions or consolidations or engage in certain asset dispositions. Upon the occurrence of certain events of default, including bankruptcy and insolvency events with respect to Flexdrive or the Company, all amounts due under the Master Vehicle Loan may become immediately due and payable, among other remedies. As of June 30, 2024, Flexdrive was in compliance with all covenants related to the Master Vehicle Loan in all material respects. Further, the Company continued to guarantee the payments of Flexdrive for any amounts borrowed following the acquisition. The fair values of the Non-revolving Loan and Master Vehicle Loan were $1.2 million and $170.9 million, respectively, as of June 30, 2024 and were determined based on quoted prices in markets that are not active, which are considered a Level 2 valuation input. As of June 30, 2024, the Company made repayments of $41.0 million on these loans. Maturities of long-term debt outstanding, including current maturities, as of June 30, 2024 were as follows (in thousands): Remainder of 2024 $ 16,665 2025 430,376 2026 70,106 2027 41,493 2028 — Thereafter 448,900 Total long-term debt outstanding $ 1,007,540 Vehicle Procurement Agreement Following the acquisition of Flexdrive by the Company on February 7, 2020, Flexdrive remained responsible for its obligations under a Vehicle Procurement Agreement (“VPA”), as amended, with a third-party (the “Procurement Provider”). Procurement services under the VPA include purchasing and upfitting certain motor vehicles as specified by Flexdrive, interim financing, providing certain fleet management services, including without limitation vehicle titling, registration and tracking services on behalf of Flexdrive. Pursuant to the terms of the VPA, Flexdrive will make the applicable payments to the Procurement Provider for the procurement services either directly or through an advance made by the Master Vehicle Loan or the Non-revolving Loan. Interest on interim financing under the VPA is based on the prime rate. The Procurement Provider has a security interest in vehicles purchased until the full specified payment has been indefeasibly paid. The VPA contains customary affirmative and negative covenants restricting certain activities by Flexdrive. As of June 30, 2024, the Company was in compliance with all covenants of the VPA. As of June 30, 2024, the outstanding borrowings from the interim financing under the VPA was $31.0 million which is included within accrued and other current liabilities on the condensed consolidated balance sheets. On March 11, 2019, the Procurement Provider entered into a $95.0 million revolving credit facility with a third-party lender to finance the acquisition of motor vehicles on behalf of Flexdrive under the VPA. On September 17, 2020, the revolving credit facility was amended, extending the stated maturity date to December 31, 2021 and reducing the borrowing capacity to $50.0 million. On March 11, 2019, Flexdrive entered into a Limited Non-Recourse Secured Continuing Guaranty and Subordination Agreement with the third-party lender to guarantee the Procurement Provider’s performance for any amount borrowed under the revolving credit facility. As of June 30, 2024, there was no exposure to loss under the terms of the guarantee. Revolving Credit Facility & Other Financings On November 3, 2022, Lyft, Inc. entered into a revolving credit agreement (the “Revolving Credit Agreement”) by and among the Company, as the borrower, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto from time to time. The Company amended the Revolving Credit Agreement on December 12, 2023, and on February 21, 2024, entered into Amendment No. 2 to Revolving Credit Agreement to, among other things: (a) solely for the purposes of the financial covenant test, replace total leverage with total net leverage, which allows the Company to subtract the lesser of (i)(x) to the extent free cash flow for the most recently ended trailing four quarters is greater than $100.0 million, $300.0 million and (y) otherwise, $200.0 million and (ii) the amount of unrestricted cash and cash equivalents (as defined in Amendment No. 2 to the Revolving Credit Agreement) on its condensed consolidated balance sheets as of the calculation date and (b) permit the Company to repurchase up to a specified amount of the Company’s common stock with the proceeds of a convertible note offering. The Revolving Credit Agreement provides the Company with a senior secured revolving credit facility (the “Revolving Credit Facility”) in an aggregate principal amount of $420.0 million that matures on the earlier of (i) November 3, 2027 and (ii) February 13, 2025, if, as of such date, the Company’s Liquidity (as defined in the Revolving Credit Agreement) minus the aggregate principal amount of the Company’s 2025 Convertible Notes (as defined in the Revolving Credit Agreement) outstanding on such date is less than $1.25 billion. Subject to certain conditions precedent, the Revolving Credit Agreement also grants the Company the option to increase the commitment under the Revolving Credit Facility by or obtain incremental term loans in an aggregate principal amount of up to $300.0 million, plus, after June 30, 2024, an unlimited amount so long as the senior secured leverage ratio does not exceed 2.50:1.00. The Revolving Credit Facility provides for borrowings up to the amount of the facility, with a sublimit of $168 million for the issuance of letters of credit. Under the Revolving Credit Agreement, loans bear interest, at the Company’s option, at an annual rate equal to either (i) the sum of (x) the Adjusted Term SOFR Rate (as defined in the Revolving Credit Agreement) plus (y) a variable rate based on the Company’s total leverage ratio, ranging from 1.50% to 2.25% or (ii) the sum of (x) the highest of (A) the rate of interest last quoted by The Wall Street Journal as the prime rate in effect in the United States, (B) the greater of the rate calculated by the Federal Reserve Bank of New York as the federal funds effective rate or the rate that is published by the Federal Reserve Bank of New York as the overnight bank funding rate, in either case, plus 0.50%, and (C) the one-month Adjusted Term SOFR Rate plus 1.00% and (y) a variable rate based on the Company’s total leverage ratio, ranging from 0.05% to 1.25%. The Company is required to pay a commitment fee between 0.225% and 0.375%, depending on the Company’s total leverage ratio, per annum on the undrawn portion available under the Revolving Credit Facility. The Revolving Credit Agreement contains customary affirmative and negative covenants and restrictions typical for a financing of this type that, among other things, restrict the Company and its restricted subsidiaries’ ability to incur additional indebtedness, create liens, merge or consolidate or make certain dispositions, pay dividends and make distributions or other restricted payments, engage in transactions with affiliates, and make certain investments and acquisitions. The Revolving Credit Agreement also contains financial covenants that require the Company to maintain (a) a minimum liquidity amount of at least $1.5 billion, tested on a quarterly basis, commencing with the quarter ending December 31, 2022 through the quarter ending June 30, 2024, (b) a total net leverage ratio not to exceed 3.50:1.00 commencing with the quarter ending September 30, 2024 through the quarter ending December 31, 2024 and commencing with the quarter ending March 31, 2025, a ratio not to exceed 3.00:1.00 (with an increase to 3.50:1.00 if the Company has an acquisition for cash consideration greater than $75 million for the fiscal quarter during which such acquisition takes place and the three fiscal quarters immediately following such acquisition), and (c) a fixed charge coverage ratio of at least 1.25:1.00, commencing with the quarter ending September 30, 2024. The Revolving Credit Agreement contains customary events of default relating to, among other things, payment defaults, breach of representation or warranty or covenants, cross default to material indebtedness, bankruptcy-related defaults, judgment defaults, and the occurrence of certain change of control events. Non-compliance with one or more of the covenants and restrictions or the occurrence of an event of default could result in the full or partial principal balance of the Revolving Credit Agreement becoming immediately due and payable and termination of the commitments. The Company’s obligations under the Revolving Credit Agreement are guaranteed by certain of the Company’s present and future material domestic subsidiaries. The Company’s obligations under, and each guarantor’s obligations under its guaranty of, the Revolving Credit Agreement are secured by a first priority interest on substantially all of the Company’s or such guarantor’s respective assets. As of June 30, 2024, the Company was in compliance with all covenants related to the Revolving Credit Agreement and no amounts had been drawn under the Revolving Credit Agreement. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Common Stock | Common Stock Restricted Stock Units The summary of restricted stock unit ("RSU") activity is as follows (in thousands, except per share data): Number of Weighted- Aggregate Nonvested units as of December 31, 2023 30,091 $ 9.40 $ 449,994 Granted 18,514 15.65 Vested (13,122) 10.89 Canceled (1,621) 12.54 Nonvested units as of June 30, 2024 33,862 $ 12.10 $ 475,836 Included in the grants for the six months ended June 30, 2024 are 1,577,671 performance based restricted stock units (“PSUs”). These PSUs are divided into individual performance milestones and vesting tranches tied to the Company’s stock performance. On the grant date, the Company valued these PSUs using a Monte Carlo valuation model to determine for each milestone (i) the fair value to expense for such tranche and (ii) the requisite service period when the milestone for such tranche is expected to be achieved. The Monte Carlo valuation model considers several variables and assumptions in estimating the fair value of stock-based awards including the Company's stock price on grant date, expected term, expected volatility, and risk-free interest rate. The resulting fair value is amortized beginning on the grant date over the requisite service periods of each individual tranche. All PSUs are subject to a continuous service condition in addition to certain performance criteria. The fair value as of the respective vesting dates of RSUs that vested during the six months ended June 30, 2024 and 2023 was $215.1 million and $150.6 million, respectively. In connection with RSUs that vested in the six months ended June 30, 2024, the Company withheld 538,359 shares and remitted cash payments of $9.3 million on behalf of the RSU holders to the relevant tax authorities. As of June 30, 2024, the total unrecognized compensation cost was $312.6 million. The Company expects to recognize this expense over the remaining weighted-average period of 1.2 years. Generally, RSUs granted after March 28, 2019 vest on the satisfaction of a service-based condition only. The Company recognizes compensation expense for such RSUs upon a straight-line basis over their requisite service periods. Common Stock Repurchase In connection with the issuance of the 2029 Notes in February 2024, the Company repurchased 3,142,678 shares of its Class A common stock from investors in privately negotiated transactions for an aggregate repurchase price of approximately $50.0 million. The shares were repurchased at fair value and the entire repurchase price was allocated to the repurchase of the shares. The par value of the shares retired is charged against common stock and the remaining repurchase price is allocated to additional paid-in capital on the condensed consolidated balance sheets. The Company retired the shares upon repurchase. 2019 Employee Stock Purchase Plan In March 2019, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2019 Employee Stock Purchase Plan (the “ESPP”). The initial ESPP went into effect on March 27, 2019 and was amended on July 26, 2021 and July 18, 2022. Subject to any limitations contained therein, the ESPP allows eligible employees to contribute, through payroll deductions, up to 15% of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. The ESPP provides for consecutive, overlapping 12-month offering periods, subject to certain reset provisions as defined in the plan. A total of 6,000,000 shares of Class A common stock were initially reserved for issuance under the ESPP. As of December 31, 2023, 13,414,259 additional shares of Class A common stock were reserved for issuance under the ESPP. On January 1, 2024, an additional 3,998,056 shares of Class A common stock were reserved for issuance under the ESPP. As of June 30, 2024, 5,717,872 shares of Class A common stock have been purchased under the 2019 ESPP. The number of shares reserved under the 2019 ESPP automatically increases on the first day of each calendar year beginning on January 1, 2020 in a number of shares equal to the least of (i) 7,000,000 shares of Class A common stock, (ii) one percent of the outstanding shares of all classes of the Company’s common stock on the last day of the immediately preceding fiscal year, or (iii) an amount determined by the administrator of the 2019 ESPP. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The Company's tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The Company's provision for income taxes has not been historically significant to the business as the Company has incurred operating losses to date. The provision for income taxes consists of federal and state taxes in the U.S. and foreign taxes in jurisdictions in which the Company conducts business. The Company recorded income tax expense of $1.9 million and $4.4 million in the three and six months ended June 30, 2024, respectively, and $2.7 million and $5.3 million in the three and six months ended June 30, 2023, respectively. The effective tax rate was 26.96% and (20.13)% for the three and six months ended June 30, 2024, respectively, and (2.39)% and (1.80)% for the three and six months ended June 30, 2023, respectively. The effective tax rate differs from the U.S. statutory tax rate primarily due to the valuation allowances on the Company's deferred tax assets as it is more likely than not that some or all of the Company's deferred tax assets will not be realized. The Company’s policy is to recognize interest and penalties associated with uncertain tax benefits as part of the income tax provision and include accrued interest and penalties with the related income tax liability on the Company’s condensed consolidated balance sheets. To date, the Company has not recognized any interest and penalties in its condensed consolidated statements of operations, nor has it accrued for or made payments for interest and penalties. The Company has no unrecognized tax benefits as of June 30, 2024 and December 31, 2023. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. The diluted net income (loss) per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For diluted net income (loss) per share, the dilutive effect of outstanding awards is reflected by application of the treasury stock method and convertible securities by application of the if-converted method, as applicable. For purposes of this calculation, stock options, RSUs, PSUs, the 2029 Notes, the 2025 Notes, and stock purchase rights granted under the Company’s ESPP are considered to be common stock equivalents but are excluded from the calculation of diluted net income (loss) per share when including them has an anti-dilutive effect. Basic and diluted net income (loss) per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic net income (loss) per share Net income (loss) $ 5,014 $ (114,262) $ (26,521) $ (301,911) Weighted-average shares used in computing basic net income (loss) per share 406,512 381,884 404,033 377,828 Basic net income (loss) per share $ 0.01 $ (0.30) $ (0.07) $ (0.80) Diluted net income (loss) per share Numerator Net income (loss) $ 5,014 $ (114,262) $ (26,521) $ (301,911) Denominator Weighted-average shares used in computing basic net income (loss) per share 406,512 381,884 404,033 377,828 Effect of potentially dilutive common stock equivalents 5,457 — — — Weighted-average shares used in computing dilutive net income (loss) per share 411,969 381,884 404,033 377,828 Diluted net income (loss) per share $ 0.01 $ (0.30) $ (0.07) $ (0.80) The following potentially dilutive outstanding shares were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have had an anti-dilutive effect, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Restricted stock units 13,712 28,208 19,032 28,208 2025 Notes (1) 10,178 19,471 10,178 19,471 2029 Notes (1) 21,821 — 21,821 — Performance based restricted stock units 13,709 13,391 14,829 13,391 ESPP 1,269 200 1,332 200 Stock options — 903 442 903 Total 60,689 62,173 67,634 62,173 _______________ (1) In connection with the issuance of the Notes, the Company entered into the Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to reduce the potential dilution to the Company's Class A common stock (or, in the event a conversion of the Notes are settled in cash, to reduce the cash payment obligation) in the event that at the time of conversion of the Notes the Company's Class A common stock price exceeds the conversion price of the Notes. Refer to Note 7 “Debt” to the condensed consolidated financial statements for further information. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company's transactions with related parties were immaterial for the three and six months ended June 30, 2024 and 2023. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring April 2023 Restructuring Plan In April 2023, the Company announced a restructuring plan as part of its efforts to reduce operating costs. The plan involved the termination of approximately 1,072 employees, representing 26% of the Company's employees. As a result of the restructuring plan, in the second quarter of 2023, the Company recorded $47.2 million in employee severance and other employee costs and $9.7 million in net stock-based compensation expense related to equity compensation for employees impacted by the plan of termination. The Company also recorded $6.3 million in impairment charges, fixed asset write-offs, accelerated depreciation and other costs to real estate operating lease right-of-use assets, which was primarily related to the cease use of certain facilities. As a result of the above, the Company incurred net restructuring charges of $63.3 million in the quarter ended June 30, 2023. The restructuring plan has been completed and no future costs related to this plan are expected. The following table summarizes the above restructuring related charges by line item within the Company’s condensed consolidated statements of operations where they were recorded in the quarter ended June 30, 2023 (in thousands): Stock-Based Compensation Severance and Other Employee Costs Right-of-Use Asset Impairments and Other Costs Accelerated Depreciation Total Cost of revenue $ 667 $ 3,204 $ — $ — $ 3,871 Operation and support 259 3,054 5,268 669 9,250 Research and development 4,539 21,254 — — 25,793 Sales and marketing 1,045 5,191 — — 6,236 General and administrative 3,213 14,535 400 — 18,148 Total $ 9,723 $ 47,238 $ 5,668 $ 669 $ 63,298 November 2022 Restructuring Plan In November 2022, the Company announced a restructuring plan to reduce operating expenses. As a result of the restructuring plan, in the fourth quarter of 2022, the Company recorded $29.5 million in employee severance and other employee costs and $9.5 million in net stock-based compensation expense related to equity compensation for employees impacted by the plan of termination. The Company’s plan of termination also included restructuring charges related to a decision to exit and sublease or cease use of certain facilities to align with the Company’s anticipated operating needs. The Company reassessed its real estate asset groups and estimated the fair value of the space to be subleased using current market conditions. Where the carrying value of the individual asset groups exceeded their fair value, an impairment charge was recognized for the difference. During the year ended December 31, 2022, this included $55.3 million in impairment charges related to real estate operating lease right-of-use assets, $23.9 million in accelerated depreciation of certain fixed assets and $2.1 million in write-off fixed assets not yet placed into service. As a result of the above, the Company incurred net restructuring charges of $120.3 million in the year ended December 31, 2022. In the first quarter of 2023, the Company finalized the exit of certain leases as part of the plan of termination and the Company completed a transaction for the divestiture of certain assets related to the Company’s first party vehicle services business. As a result, the Company recorded $10.5 million in impairment charges related to the cease use of certain facilities to real estate operating lease right-of-use assets and other costs, which included $9.1 million of future payments associated with exiting certain facilities. The Company also incurred employee related charges, which include employee severance, benefits and stock-based compensation in the first quarter of 2023. As a result of the above, the Company incurred net restructuring charges of $24.4 million in the quarter ended March 31, 2023. The restructuring plan has been completed and no future costs related to this plan are expected. The following table summarizes the above restructuring related charges by line item within the Company’s condensed consolidated statements of operations where they were recorded in the quarter ended March 31, 2023 (in thousands): Stock-Based Compensation Severance and Other Employee Costs Right-of-Use Asset Impairments and Other Costs Accelerated Depreciation Total Cost of revenue $ — $ 1,101 $ — $ — $ 1,101 Operation and support 205 3,127 9,453 305 13,090 Research and development — 20 2,534 — 2,554 Sales and marketing — 14 — — 14 General and administrative — 64 7,604 16 7,684 Total $ 205 $ 4,326 $ 19,591 $ 321 $ 24,443 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Variable Interest Entities | Variable Interest Entities VIEs Related to Light Vehicles As part of its acquisition of PBSC, the Company acquired several joint ventures (“JVs”) which were deemed to be variable interest entities (“VIEs”) in accordance with ASC 810 Consolidation on the acquisition date. The Company determined that PBSC is the primary beneficiary of one of the acquired VIEs, in which it owns an 80% equity interest, as PBSC has the power to direct the majority of the activities of the VIE that most significantly impact its economic performance, the obligation to absorb losses and the right to receive benefits. As PBSC is the primary beneficiary of the VIE, the assets, liabilities, non-controlling interest, revenues and operating results are included in the condensed consolidated financial statements. Subsequent to the acquisition, PBSC entered into additional joint ventures deemed to be VIEs which were accounted for under the equity method which were immaterial. The acquisition date fair value of the VIEs acquired as part of the PBSC acquisition was $22.2 million, which exceeds the carrying value and is recorded within other investments in the condensed consolidated balance sheets. Other than the VIE of which PBSC owns an 80% equity interest, the Company has determined that PBSC does not direct the activities that would significantly affect the economic performance of these VIEs. Therefore, the Company is not the primary beneficiary of these VIEs. As a result, the Company accounts for its investment in these VIEs under the equity method, and they are not consolidated into the Company’s condensed consolidated financial statements. In addition, the Company recognizes its proportionate share of the reported profits or losses of these VIEs in other income (expense), net in the condensed consolidated statements of operations, and as an adjustment to its investment in VIEs in the condensed consolidated balance sheets. The profits and losses of these unconsolidated VIEs were not material to the condensed consolidated statements of operations for the quarter ended June 30, 2024. The maximum potential financial statement loss the Company would incur if these VIEs were to default on all their obligations would be the loss of the carrying value of these investments as well as any current or future investments, if any, PBSC were to make which was immaterial as of June 30, 2024. Other VIEs During the second quarter of 2023, the Company contributed a business to a privately held company in exchange for an equity interest and a seat on the board of directors of such company. This privately held company was determined to be a VIE for which the Company lacks the power to direct the activities that most significantly impact the entity's economic performance. As the Company is not the primary beneficiary, it does not consolidate the VIE. However, due to the Company's ability to exercise significant influence, the investment will be accounted for under the equity method. The investment was recorded at its initial fair value of $12.9 million and represents the Company's maximum exposure to the VIE. During the quarter ended June 30, 2024, the Company recognized an immaterial amount of equity earnings and there was no impairment of the investment. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income (loss) | $ 5,014 | $ (31,535) | $ (114,262) | $ (187,649) | $ (26,521) | $ (301,911) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 31, 2024, John Zimmer, the current Vice Chair of our board of directors, and The Zimmer 2014 Irrevocable Trust dated June 16, 2014 (the “Trust”), adopted a Rule 10b5-1 trading arrangement (the “2024 Plan”) providing for the sale from time to time of an aggregate of up to (i) 456,000 shares of Class A common stock held by Mr. Zimmer plus a portion of any additional shares of Class A Common Stock issued upon the vesting and settlement of RSUs granted to Mr. Zimmer for his service on our board of directors in June 2024; and (ii) 150,000 shares of Class A common stock issuable upon the conversion of shares of Class B common stock held by the Trust. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The current Rule 10b5-1 Plan entered into by Mr. Zimmer and the Trust on May 31, 2023 will terminate by its terms prior to the effective date of the 2024 Plan. The duration of the trading arrangement is until September 15, 2025, or earlier if all transactions under the trading arrangement are completed. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
John Zimmer [Member] | ||
Trading Arrangements, by Individual | ||
Name | John Zimmer | |
Title | Vice Chair of our board of directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 31, 2024 | |
Arrangement Duration | 472 days | |
The Zimmer 2014 Irrevocable Trust [Member] | ||
Trading Arrangements, by Individual | ||
Name | John Zimmer | |
Title | The Zimmer 2014 Irrevocable Trust | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 31, 2024 | |
Expiration Date | September 15, 2025 | |
Arrangement Duration | 472 days | |
John Zimmer 2024 Plan, Class A Common Stock [Member] | John Zimmer [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 456,000 | 456,000 |
John Zimmer Trading Arrangement, Shares Issuable Upon Conversion Of Class B Shares [Member] | John Zimmer [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 150,000 | 150,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. |
Use of Estimates | 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. |
Revenue Recognition and Incentive Programs | Revenue Recognition 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. 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. 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 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 June 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 six months ended June 30, 2024 and 2023. For the three and six months ended June 30, 2024, in relation to the driver, rider and Light Vehicle rider incentive programs, the Company recorded $184.0 million and $409.2 million as a reduction to revenue, respectively, and $83.8 million and $151.8 million as sales and marketing expense, respectively. For the three and six months ended June 30, 2023, in relation to the driver, rider and Light Vehicle rider incentive programs, the Company recorded $310.0 million and $613.6 million as a reduction to revenue, respectively, and $23.6 million and $46.9 million as sales and marketing expense, respectively. |
Enterprise and Trade Receivables | 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. |
Investments | 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 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, 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 June 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 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 | 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 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs 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 3 Unobservable 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 | 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 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, and higher than expected losses across the commercial auto industry. 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 | 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. 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 six months ended June 30, 2023, respectively. There was no such charge during the three and six months ended June 30, 2024. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for further information. |
Leases | 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. 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 six months ended June 30, 2023, respectively. There was no such charge during the three and six months ended June 30, 2024. Refer to Note 12 “Restructuring” to the condensed consolidated financial statements for further information. |
Variable Interest Entities | 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 June 30, 2024. |
Recently Accounting Pronouncements | 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 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 statements 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 annual financial statements for the year ended December 31, 2025. The Company is currently evaluating the impact of this on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Revenues | The table below presents the Company’s revenues as included on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue from contracts with customers (ASC 606) $ 1,321,830 $ 940,958 $ 2,531,568 $ 1,893,655 Rental revenue (ASC 842) 114,016 79,948 181,479 127,799 Total revenue $ 1,435,846 $ 1,020,906 $ 2,713,047 $ 2,021,454 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Additional Financial Information Disclosure [Abstract] | |
Schedule of 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): June 30, 2024 Cost or Unrealized Estimated Gains Losses Unrestricted Balances (1) Money market funds $ 195,386 $ — $ — $ 195,386 Money market deposit accounts 200,188 — — 200,188 Certificates of deposit 150,255 38 (76) 150,217 Commercial paper 817,638 43 (609) 817,072 Corporate bonds 86,724 7 (40) 86,691 U.S. government securities 255,174 9 (104) 255,079 Total unrestricted cash equivalents and short-term investments 1,705,365 97 (829) 1,704,633 Restricted Balances Money market funds 34,730 — — 34,730 Term deposits 2,194 — — 2,194 Certificates of deposit 152,802 34 (70) 152,766 Commercial paper 813,301 38 (492) 812,847 Corporate bonds 55,015 5 (15) 55,005 U.S. government securities 281,458 8 (83) 281,383 Total restricted cash equivalents and investments 1,339,500 85 (660) 1,338,925 Total unrestricted and restricted cash equivalents and investments $ 3,044,865 $ 182 $ (1,489) $ 3,043,558 _______________ (1) Excludes $95.7 million of cash, which is included within the $1.8 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets. December 31, 2023 Cost or Unrealized Estimated 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. |
Schedule of Cash and Cash Equivalents | The following table summarizes a reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the condensed consolidated balance sheets (in thousands): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 604,357 $ 558,636 Restricted cash and cash equivalents 213,903 211,786 Restricted cash, included in prepaid expenses and other current assets 1,364 1,364 Total cash, cash equivalents and restricted cash and cash equivalents $ 819,624 $ 771,786 |
Restrictions on Cash and Cash Equivalents | The following table summarizes a reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the condensed consolidated balance sheets (in thousands): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 604,357 $ 558,636 Restricted cash and cash equivalents 213,903 211,786 Restricted cash, included in prepaid expenses and other current assets 1,364 1,364 Total cash, cash equivalents and restricted cash and cash equivalents $ 819,624 $ 771,786 |
Schedule of AFS Debt Securities | 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): June 30, 2024 Estimated Fair Value Unrealized Losses Certificates of deposit $ 102,550 $ (146) Corporate bonds 70,754 (55) Commercial paper 1,035,366 (1,094) U.S. government securities 367,805 (187) Total available-for-sale debt securities in an unrealized loss position $ 1,576,475 $ (1,482) |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following as of the dates indicated (in thousands): June 30, 2024 December 31, 2023 Insurance-related accruals (1) $ 683,366 $ 643,147 Legal and tax related accruals 305,845 296,336 Ride-related accruals 221,485 212,114 Insurance claims payable and related fees 51,050 52,609 Long-term debt, current (2) 39,832 25,798 Other 301,010 278,851 Accrued and other current liabilities $ 1,602,588 $ 1,508,855 _______________ (1) Refer to Note 2 "Summary of Significant Accounting Policies" above for more information on these insurance-related accruals. (2) |
Schedule of 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest income $ 40,079 $ 34,469 $ 78,631 $ 68,560 Gain (loss) on sale of securities, net 3 (80) (47) (195) Sublease income 1,039 1,264 2,116 2,554 Gain on equity method investment (1) — 12,926 — 12,926 Foreign currency exchange gains (losses), net (997) 1,919 (3,186) 2,778 Other, net (2) 1,819 2,577 5,486 3,667 Other income (expense), net $ 41,943 $ 53,075 $ 83,000 $ 90,290 _______________ (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 February 2024, the Company recorded a gain on extinguishment of $5.1 million in other income (expense) related to the repurchase of 2025 Notes. Refer to Note 7 "Debt" for more information on this transaction. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value on 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): June 30, 2024 Level 1 Level 2 Level 3 Total Assets Unrestricted cash equivalents and investments (1) Money market funds $ 195,386 $ — $ — $ 195,386 Certificates of deposit — 150,217 — 150,217 Commercial paper — 817,072 — 817,072 Corporate bonds — 86,691 — 86,691 U.S. government securities — 255,079 — 255,079 Total unrestricted cash equivalents and short-term investments 195,386 1,309,059 — 1,504,445 Restricted cash equivalents and investments (2) Money market funds 34,730 — — 34,730 Certificates of deposit — 152,766 — 152,766 Commercial paper — 812,847 — 812,847 Corporate bonds — 55,005 — 55,005 U.S. government securities — 281,383 — 281,383 Total restricted cash equivalents and investments 34,730 1,302,001 — 1,336,731 Total financial assets $ 230,116 $ 2,611,060 $ — $ 2,841,176 _______________ (1) $95.7 million of cash and $200.2 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 $1.8 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 $1.3 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 _______________ (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. |
Summary of Fair Value of Assets Measured on a Non Recurring Basis | The following table provides a reconciliation of the Company's financial assets measured at fair value on a non-recurring basis within other investments on the condensed consolidated balance sheets (in thousands): Six Months Ended June 30, 2024 2023 Balance at beginning of period $ 5,884 $ 5,903 Additions — — Change in fair value — (19) Balance at end of period $ 5,884 $ 5,884 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease Position | 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): June 30, 2024 December 31, 2023 Operating Leases Assets Operating lease right-of-use assets $ 88,959 $ 98,202 Liabilities Operating lease liabilities, current $ 43,229 $ 42,556 Operating lease liabilities, non-current 113,102 134,102 Total operating lease liabilities $ 156,331 $ 176,658 Finance Leases Assets Finance lease right-of-use assets (1) $ 90,630 $ 80,933 Liabilities Finance lease liabilities, current (2) 30,930 25,193 Finance lease liabilities, non-current (3) 65,145 61,321 Total finance lease liabilities $ 96,075 $ 86,514 Weighted-average remaining lease term (years) Operating leases 4.2 4.5 Finance leases 3.0 3.4 Weighted-average discount rate Operating leases 6.8 % 6.7 % Finance leases 6.5 % 6.7 % _______________ (1) This balance is included within property and equipment, net on the condensed consolidated balance sheets and is primarily related to Flexdrive. (2) This balance is included within other current liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive. (3) This balance is included within other liabilities on the condensed consolidated balance sheets and is primarily related to Flexdrive. |
Schedule of Lease Costs and Supplemental Cash Flow Information | The table below presents certain information related to the costs for operating leases and finance leases for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating Leases Operating lease cost $ 9,481 $ 9,931 $ 19,485 $ 21,489 Finance Leases Amortization of right-of-use assets 6,897 4,790 13,203 8,622 Interest on lease liabilities 1,516 653 2,862 1,061 Other Lease Costs Short-term lease cost 925 968 1,870 1,946 Variable lease cost (1) 2,578 2,852 5,170 5,090 Total lease cost $ 21,397 $ 19,194 $ 42,590 $ 38,208 _______________ (1) Consists primarily of common area maintenance and taxes and utilities for real estate leases. The table below presents certain supplemental information related to the cash flows for operating and finance leases recorded on the condensed consolidated statements of cash flows (in thousands): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 30,496 $ 29,756 Operating cash flows from finance leases 2,609 1,212 Financing cash flows from finance leases 23,629 24,852 |
Schedule of Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2024 (in thousands): Operating Leases Finance Leases Total Leases Remainder of 2024 $ 23,498 $ 18,367 $ 41,865 2025 49,099 34,837 83,936 2026 34,843 30,295 65,138 2027 29,880 13,350 43,230 2028 19,853 10,203 30,056 Thereafter 23,700 — 23,700 Total minimum lease payments 180,873 107,052 287,925 Less: amount of lease payments representing interest (24,542) (10,977) (35,519) Present value of future lease payments 156,331 96,075 252,406 Less: current obligations under leases (43,229) (30,930) (74,159) Long-term lease obligations $ 113,102 $ 65,145 $ 178,247 |
Schedule of Finance Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2024 (in thousands): Operating Leases Finance Leases Total Leases Remainder of 2024 $ 23,498 $ 18,367 $ 41,865 2025 49,099 34,837 83,936 2026 34,843 30,295 65,138 2027 29,880 13,350 43,230 2028 19,853 10,203 30,056 Thereafter 23,700 — 23,700 Total minimum lease payments 180,873 107,052 287,925 Less: amount of lease payments representing interest (24,542) (10,977) (35,519) Present value of future lease payments 156,331 96,075 252,406 Less: current obligations under leases (43,229) (30,930) (74,159) Long-term lease obligations $ 113,102 $ 65,145 $ 178,247 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt Obligations and Interest Expense Related to Convertible Debt | Outstanding debt obligations as of June 30, 2024 were as follows (in thousands): Maturities Interest Rates as of June 30, 2024 June 30, 2024 December 31, 2023 Convertible senior notes due 2025 (the "2025 Notes") May 2025 1.50% $ 389,374 $ 743,486 Convertible senior notes due 2029 (the "2029 Notes") March 2029 0.625% 448,900 — Non-revolving Loan 2026 7.61% 1,217 3,115 Master Vehicle Loan 2024 - 2027 2.60% - 7.10% 168,049 118,559 Total long-term debt, including current maturities $ 1,007,540 $ 865,160 Less: Convertible senior notes, current (1) 389,374 — Less: Long-term debt, current (2) 39,832 25,798 Total long-term debt $ 578,334 $ 839,362 _______________ (1) This balance is included within convertible senior notes, current on the condensed consolidated balance sheets. (2) This balance is included within accrued and other current liabilities on the condensed consolidated balance sheets and is primarily related to vehicles. The following table sets forth the primary components of interest expense as reported on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2024 2023 2024 2023 Contractual interest expense related to the 2025 Notes and 2029 Notes $ 2,184 $ 2,803 $ 4,797 $ 5,606 Amortization of debt discount and issuance costs related to the 2025 Notes and 2029 Notes 951 866 1,755 1,690 Vehicle loans and other interest expense 4,717 2,482 8,348 4,288 Interest expense $ 7,852 $ 6,151 $ 14,900 $ 11,584 |
Schedule of Convertible Notes | The net carrying amounts of the Notes were as follows (in thousands): June 30, 2024 December 31, 2023 2025 Notes Principal $ 390,719 $ 747,498 Unamortized debt discount and debt issuance costs (1,345) (4,012) Net carrying amount of liability component $ 389,374 $ 743,486 2029 Notes Principal $ 460,000 $ — Unamortized debt discount and debt issuance costs (11,100) — Net carrying amount of liability component $ 448,900 $ — |
Schedule of Maturities of Long-Term Debt Outstanding | Maturities of long-term debt outstanding, including current maturities, as of June 30, 2024 were as follows (in thousands): Remainder of 2024 $ 16,665 2025 430,376 2026 70,106 2027 41,493 2028 — Thereafter 448,900 Total long-term debt outstanding $ 1,007,540 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Unit Activity | The summary of restricted stock unit ("RSU") activity is as follows (in thousands, except per share data): Number of Weighted- Aggregate Nonvested units as of December 31, 2023 30,091 $ 9.40 $ 449,994 Granted 18,514 15.65 Vested (13,122) 10.89 Canceled (1,621) 12.54 Nonvested units as of June 30, 2024 33,862 $ 12.10 $ 475,836 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic net income (loss) per share Net income (loss) $ 5,014 $ (114,262) $ (26,521) $ (301,911) Weighted-average shares used in computing basic net income (loss) per share 406,512 381,884 404,033 377,828 Basic net income (loss) per share $ 0.01 $ (0.30) $ (0.07) $ (0.80) Diluted net income (loss) per share Numerator Net income (loss) $ 5,014 $ (114,262) $ (26,521) $ (301,911) Denominator Weighted-average shares used in computing basic net income (loss) per share 406,512 381,884 404,033 377,828 Effect of potentially dilutive common stock equivalents 5,457 — — — Weighted-average shares used in computing dilutive net income (loss) per share 411,969 381,884 404,033 377,828 Diluted net income (loss) per share $ 0.01 $ (0.30) $ (0.07) $ (0.80) |
Schedule of Outstanding Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss Per Share | The following potentially dilutive outstanding shares were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have had an anti-dilutive effect, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Restricted stock units 13,712 28,208 19,032 28,208 2025 Notes (1) 10,178 19,471 10,178 19,471 2029 Notes (1) 21,821 — 21,821 — Performance based restricted stock units 13,709 13,391 14,829 13,391 ESPP 1,269 200 1,332 200 Stock options — 903 442 903 Total 60,689 62,173 67,634 62,173 _______________ (1) In connection with the issuance of the Notes, the Company entered into the Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to reduce the potential dilution to the Company's Class A common stock (or, in the event a conversion of the Notes are settled in cash, to reduce the cash payment obligation) in the event that at the time of conversion of the Notes the Company's Class A common stock price exceeds the conversion price of the Notes. Refer to Note 7 “Debt” to the condensed consolidated financial statements for further information. |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring related charges (benefits) | The following table summarizes the above restructuring related charges by line item within the Company’s condensed consolidated statements of operations where they were recorded in the quarter ended June 30, 2023 (in thousands): Stock-Based Compensation Severance and Other Employee Costs Right-of-Use Asset Impairments and Other Costs Accelerated Depreciation Total Cost of revenue $ 667 $ 3,204 $ — $ — $ 3,871 Operation and support 259 3,054 5,268 669 9,250 Research and development 4,539 21,254 — — 25,793 Sales and marketing 1,045 5,191 — — 6,236 General and administrative 3,213 14,535 400 — 18,148 Total $ 9,723 $ 47,238 $ 5,668 $ 669 $ 63,298 The following table summarizes the above restructuring related charges by line item within the Company’s condensed consolidated statements of operations where they were recorded in the quarter ended March 31, 2023 (in thousands): Stock-Based Compensation Severance and Other Employee Costs Right-of-Use Asset Impairments and Other Costs Accelerated Depreciation Total Cost of revenue $ — $ 1,101 $ — $ — $ 1,101 Operation and support 205 3,127 9,453 305 13,090 Research and development — 20 2,534 — 2,554 Sales and marketing — 14 — — 14 General and administrative — 64 7,604 16 7,684 Total $ 205 $ 4,326 $ 19,591 $ 321 $ 24,443 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 USD ($) vie | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) vie | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Significant Accounting Policies | ||||||
Accounts receivable | $ 294,700,000 | $ 294,700,000 | $ 315,000,000 | |||
Allowance for credit loss | 10,900,000 | 10,900,000 | $ 9,800,000 | |||
Revenue | 1,435,846,000 | $ 1,020,906,000 | 2,713,047,000 | $ 2,021,454,000 | ||
Sales and marketing | 176,370,000 | 109,167,000 | 321,842,000 | 225,108,000 | ||
Operating lease, impairment loss | $ 0 | 2,500,000 | $ 10,500,000 | $ 0 | 13,000,000 | |
Number of variable interest entities (vie) | vie | 1 | 1 | ||||
Ride Share | Revenue, Product and Service Benchmark | Product Concentration Risk | ||||||
Significant Accounting Policies | ||||||
Concentration risk (as a percent) | 85% | |||||
Driver, Rider and Light Vehicle Riders Incentive Programs | ||||||
Significant Accounting Policies | ||||||
Sales and marketing | $ 83,800,000 | 23,600,000 | $ 151,800,000 | 46,900,000 | ||
Driver, Rider and Light Vehicle Riders Incentive Programs | Adjustment | ||||||
Significant Accounting Policies | ||||||
Revenue | $ (184,000,000) | $ (310,000,000) | $ (409,200,000) | $ (613,600,000) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Revenue from contracts with customers (ASC 606) | $ 1,321,830 | $ 940,958 | $ 2,531,568 | $ 1,893,655 |
Rental revenue (ASC 842) | 114,016 | 79,948 | 181,479 | 127,799 |
Total revenue | $ 1,435,846 | $ 1,020,906 | $ 2,713,047 | $ 2,021,454 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Schedule of Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Cash Equivalents And Short Term Investments | ||
Unrestricted cash equivalents and investments, Cost or Amortized Cost | $ 1,705,365 | $ 1,504,959 |
Unrestricted cash equivalents and investments, Unrealized Gains | 97 | 872 |
Unrestricted cash equivalents and investments, Unrealized Losses | (829) | (340) |
Unrestricted cash equivalents and investments, Estimated Fair Value | 1,704,633 | 1,505,491 |
Restricted cash equivalents and investments, Cost or Amortized Cost | 1,339,500 | 1,048,613 |
Restricted cash equivalents and investments, Unrealized Gains | 85 | 628 |
Restricted cash equivalents and investments, Unrealized Losses | (660) | (148) |
Restricted cash equivalents and investments, Estimated Fair Value | 1,338,925 | 1,049,093 |
Unrestricted and restricted cash equivalents and investments, Cost or Amortized Cost | 3,044,865 | 2,553,572 |
Unrestricted and restricted cash equivalents and investments, Unrealized Gains | 182 | 1,500 |
Unrestricted and restricted cash equivalents and investments, Unrealized Losses | (1,489) | (488) |
Total financial assets | 3,043,558 | 2,554,584 |
Cash | 95,700 | 179,700 |
Cash and cash equivalents and short-term investments | 1,800,000 | 1,700,000 |
Restricted cash | 1,400 | |
Restricted cash and cash equivalents and restricted short-term investments | 1,300,000 | 1,000,000 |
Money market funds | ||
Cash Equivalents And Short Term Investments | ||
Unrestricted cash equivalents and investments, Cost or Amortized Cost | 195,386 | 28,351 |
Unrestricted cash equivalents and investments, Unrealized Gains | 0 | 0 |
Unrestricted cash equivalents and investments, Unrealized Losses | 0 | 0 |
Unrestricted cash equivalents and investments, Estimated Fair Value | 195,386 | 28,351 |
Restricted cash equivalents and investments, Cost or Amortized Cost | 34,730 | 44,241 |
Restricted cash equivalents and investments, Unrealized Gains | 0 | 0 |
Restricted cash equivalents and investments, Unrealized Losses | 0 | 0 |
Restricted cash equivalents and investments, Estimated Fair Value | 34,730 | 44,241 |
Money market deposit accounts | ||
Cash Equivalents And Short Term Investments | ||
Unrestricted cash equivalents and investments, Cost or Amortized Cost | 200,188 | 117,626 |
Unrestricted cash equivalents and investments, Unrealized Gains | 0 | 0 |
Unrestricted cash equivalents and investments, Unrealized Losses | 0 | 0 |
Unrestricted cash equivalents and investments, Estimated Fair Value | 200,188 | 117,626 |
Term deposits | ||
Cash Equivalents And Short Term Investments | ||
Restricted cash equivalents and investments, Cost or Amortized Cost | 2,194 | 3,539 |
Restricted cash equivalents and investments, Unrealized Gains | 0 | 0 |
Restricted cash equivalents and investments, Unrealized Losses | 0 | 0 |
Restricted cash equivalents and investments, Estimated Fair Value | 2,194 | 3,539 |
Certificates of deposit | ||
Cash Equivalents And Short Term Investments | ||
Unrestricted cash equivalents and investments, Cost or Amortized Cost | 150,255 | 179,607 |
Unrestricted cash equivalents and investments, Unrealized Gains | 38 | 200 |
Unrestricted cash equivalents and investments, Unrealized Losses | (76) | (4) |
Unrestricted cash equivalents and investments, Estimated Fair Value | 150,217 | 179,803 |
Restricted cash equivalents and investments, Cost or Amortized Cost | 152,802 | 144,935 |
Restricted cash equivalents and investments, Unrealized Gains | 34 | 175 |
Restricted cash equivalents and investments, Unrealized Losses | (70) | (1) |
Restricted cash equivalents and investments, Estimated Fair Value | 152,766 | 145,109 |
Commercial paper | ||
Cash Equivalents And Short Term Investments | ||
Unrestricted cash equivalents and investments, Cost or Amortized Cost | 817,638 | 918,278 |
Unrestricted cash equivalents and investments, Unrealized Gains | 43 | 584 |
Unrestricted cash equivalents and investments, Unrealized Losses | (609) | (331) |
Unrestricted cash equivalents and investments, Estimated Fair Value | 817,072 | 918,531 |
Restricted cash equivalents and investments, Cost or Amortized Cost | 813,301 | 618,854 |
Restricted cash equivalents and investments, Unrealized Gains | 38 | 366 |
Restricted cash equivalents and investments, Unrealized Losses | (492) | (146) |
Restricted cash equivalents and investments, Estimated Fair Value | 812,847 | 619,074 |
Corporate bonds | ||
Cash Equivalents And Short Term Investments | ||
Unrestricted cash equivalents and investments, Cost or Amortized Cost | 86,724 | 29,171 |
Unrestricted cash equivalents and investments, Unrealized Gains | 7 | 6 |
Unrestricted cash equivalents and investments, Unrealized Losses | (40) | (5) |
Unrestricted cash equivalents and investments, Estimated Fair Value | 86,691 | 29,172 |
Restricted cash equivalents and investments, Cost or Amortized Cost | 55,015 | 12,409 |
Restricted cash equivalents and investments, Unrealized Gains | 5 | 3 |
Restricted cash equivalents and investments, Unrealized Losses | (15) | (1) |
Restricted cash equivalents and investments, Estimated Fair Value | 55,005 | 12,411 |
U.S. government securities | ||
Cash Equivalents And Short Term Investments | ||
Unrestricted cash equivalents and investments, Cost or Amortized Cost | 255,174 | 231,926 |
Unrestricted cash equivalents and investments, Unrealized Gains | 9 | 82 |
Unrestricted cash equivalents and investments, Unrealized Losses | (104) | 0 |
Unrestricted cash equivalents and investments, Estimated Fair Value | 255,079 | 232,008 |
Restricted cash equivalents and investments, Cost or Amortized Cost | 281,458 | 224,635 |
Restricted cash equivalents and investments, Unrealized Gains | 8 | 84 |
Restricted cash equivalents and investments, Unrealized Losses | (83) | 0 |
Restricted cash equivalents and investments, Estimated Fair Value | $ 281,383 | $ 224,719 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Schedule of Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Restructuring and Related Activities [Abstract] | ||||
Cash and cash equivalents | $ 604,357 | $ 558,636 | $ 638,434 | |
Restricted cash and cash equivalents | 213,903 | 211,786 | 365,849 | |
Restricted cash, included in prepaid expenses and other current assets | 1,364 | 1,364 | 1,364 | |
Total cash, cash equivalents and restricted cash and cash equivalents | $ 819,624 | $ 771,786 | $ 1,005,647 | $ 391,822 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Additional Information (Details) | Jun. 30, 2024 USD ($) |
Additional Financial Information Disclosure [Abstract] | |
Allowance for credit loss on marketable and non-marketable available for sale debt securities | $ 0 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Schedule of AFS Debt Securities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Securities, Available-for-sale | |
Estimated Fair Value | $ 1,576,475 |
Unrealized Losses | (1,482) |
Certificates of deposit | |
Debt Securities, Available-for-sale | |
Estimated Fair Value | 102,550 |
Unrealized Losses | (146) |
Corporate bonds | |
Debt Securities, Available-for-sale | |
Estimated Fair Value | 70,754 |
Unrealized Losses | (55) |
Commercial paper | |
Debt Securities, Available-for-sale | |
Estimated Fair Value | 1,035,366 |
Unrealized Losses | (1,094) |
U.S. government securities | |
Debt Securities, Available-for-sale | |
Estimated Fair Value | 367,805 |
Unrealized Losses | $ (187) |
Supplemental Financial Statem_7
Supplemental Financial Statement Information - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued and Other Liabilities | ||
Insurance-related accruals | $ 683,366 | $ 643,147 |
Legal and tax related accruals | 305,845 | 296,336 |
Ride-related accruals | 221,485 | 212,114 |
Insurance claims payable and related fees | 51,050 | 52,609 |
Less: Long-term debt, current | 39,832 | 25,798 |
Other | 301,010 | 278,851 |
Accrued and other current liabilities | $ 1,602,588 | $ 1,508,855 |
Supplemental Financial Statem_8
Supplemental Financial Statement Information - Schedule of Other Income, Net (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Additional Financial Information Disclosure [Abstract] | |||||
Interest income | $ 40,079 | $ 34,469 | $ 78,631 | $ 68,560 | |
Gain (loss) on sale of securities, net | 3 | (80) | (47) | (195) | |
Sublease income | 1,039 | 1,264 | 2,116 | 2,554 | |
Gain on equity method investment | 0 | 12,926 | 0 | 12,926 | |
Foreign currency exchange gains (losses), net | (997) | 1,919 | (3,186) | 2,778 | |
Other, net | 1,819 | 2,577 | 5,486 | 3,667 | |
Other income (expense), net | $ 41,943 | $ 53,075 | $ 83,000 | $ 90,290 | |
Gain (loss) on extinguishment of debt | $ 5,100 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash | $ 95,700 | $ 179,700 |
Short-term investments | 1,195,970 | 1,126,548 |
Cash and cash equivalents and short-term investments | 1,800,000 | 1,700,000 |
Restricted cash | 1,400 | |
Restricted cash and cash equivalents and restricted short-term investments | 1,300,000 | 1,000,000 |
Fair Value Measurements on a Recurring Basis | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 1,504,445 | 1,387,865 |
Total restricted cash equivalents and investments | 1,336,731 | 1,045,554 |
Total financial assets | 2,841,176 | 2,433,419 |
Fair Value Measurements on a Recurring Basis | Level 1 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 195,386 | 28,351 |
Total restricted cash equivalents and investments | 34,730 | 44,241 |
Total financial assets | 230,116 | 72,592 |
Fair Value Measurements on a Recurring Basis | Level 2 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 1,309,059 | 1,359,514 |
Total restricted cash equivalents and investments | 1,302,001 | 1,001,313 |
Total financial assets | 2,611,060 | 2,360,827 |
Fair Value Measurements on a Recurring Basis | Level 3 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Total financial assets | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Money market funds | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 195,386 | 28,351 |
Total restricted cash equivalents and investments | 34,730 | 44,241 |
Fair Value Measurements on a Recurring Basis | Money market funds | Level 1 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 195,386 | 28,351 |
Total restricted cash equivalents and investments | 34,730 | 44,241 |
Fair Value Measurements on a Recurring Basis | Money market funds | Level 2 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Money market funds | Level 3 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Certificates of deposit | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 150,217 | 179,803 |
Total restricted cash equivalents and investments | 152,766 | 145,109 |
Fair Value Measurements on a Recurring Basis | Certificates of deposit | Level 1 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Certificates of deposit | Level 2 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 150,217 | 179,803 |
Total restricted cash equivalents and investments | 152,766 | 145,109 |
Fair Value Measurements on a Recurring Basis | Certificates of deposit | Level 3 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Commercial paper | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 817,072 | 918,531 |
Total restricted cash equivalents and investments | 812,847 | 619,074 |
Fair Value Measurements on a Recurring Basis | Commercial paper | Level 1 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Commercial paper | Level 2 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 817,072 | 918,531 |
Total restricted cash equivalents and investments | 812,847 | 619,074 |
Fair Value Measurements on a Recurring Basis | Commercial paper | Level 3 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Corporate bonds | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 86,691 | 29,172 |
Total restricted cash equivalents and investments | 55,005 | 12,411 |
Fair Value Measurements on a Recurring Basis | Corporate bonds | Level 1 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Corporate bonds | Level 2 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 86,691 | 29,172 |
Total restricted cash equivalents and investments | 55,005 | 12,411 |
Fair Value Measurements on a Recurring Basis | Corporate bonds | Level 3 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | U.S. government securities | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 255,079 | 232,008 |
Total restricted cash equivalents and investments | 281,383 | 224,719 |
Fair Value Measurements on a Recurring Basis | U.S. government securities | Level 1 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | U.S. government securities | Level 2 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 255,079 | 232,008 |
Total restricted cash equivalents and investments | 281,383 | 224,719 |
Fair Value Measurements on a Recurring Basis | U.S. government securities | Level 3 | ||
Assets | ||
Total unrestricted cash equivalents and short-term investments | 0 | 0 |
Total restricted cash equivalents and investments | 0 | 0 |
Fair Value Measurements on Nonrecurring Basis | ||
Assets | ||
Restricted cash | 1,400 | |
Fair Value Measurements on Nonrecurring Basis | Cash and Cash Equivalents and Short-Term Investments | ||
Assets | ||
Cash | 95,700 | 179,700 |
Term deposits | 2,200 | 3,500 |
Fair Value Measurements on Nonrecurring Basis | Cash and Cash Equivalents and Short-Term Investments | Money market funds | ||
Assets | ||
Short-term investments | $ 200,200 | $ 117,600 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of financial assets measured at fair value on a non-recurring basis (Details) - Fair Value Measurements on Nonrecurring Basis - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Balance at beginning of period | $ 5,884 | $ 5,903 |
Additions | 0 | 0 |
Change in fair value | 0 | (19) |
Balance at end of period | $ 5,884 | $ 5,884 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) location | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) location | Jun. 30, 2023 USD ($) | |
Lessee, Lease, Description | ||||
Sublease income | $ | $ 1,039 | $ 1,264 | $ 2,116 | $ 2,554 |
Real Estate Leases | ||||
Lessee, Lease, Description | ||||
Number of locations | location | 67 | 67 | ||
Real Estate Leases | Minimum | ||||
Lessee, Lease, Description | ||||
Lessee, operating lease, term of contract (in years) | 1 month | 1 month | ||
Lessee, operating lease, option to extend term (in years) | 1 month | |||
Real Estate Leases | Maximum | ||||
Lessee, Lease, Description | ||||
Lessee, operating lease, term of contract (in years) | 6 years | 6 years | ||
Lessee, operating lease, option to extend term (in years) | 10 years | |||
Vehicles | Minimum | ||||
Lessee, Lease, Description | ||||
Finance lease term of contract (in years) | 6 months | |||
Vehicles | Maximum | ||||
Lessee, Lease, Description | ||||
Finance lease term of contract (in years) | 4 years |
Leases - Schedule of Lease Posi
Leases - Schedule of Lease Position (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Operating lease right-of-use assets | $ 88,959 | $ 98,202 |
Operating lease liabilities, current | 43,229 | 42,556 |
Operating lease liabilities, non-current | 113,102 | 134,102 |
Total operating lease liabilities | 156,331 | 176,658 |
Assets | ||
Finance lease right-of-use assets | 90,630 | 80,933 |
Liabilities | ||
Finance lease liabilities, current | 30,930 | 25,193 |
Finance lease liabilities, non-current | 65,145 | 61,321 |
Total finance lease liabilities | $ 96,075 | $ 86,514 |
Finance lease, liability, current, statement of financial position | Accrued and other current liabilities | Accrued and other current liabilities |
Finance lease, liability, noncurrent, statement of financial position | Other liabilities | Other liabilities |
Weighted-average remaining lease term (years) | ||
Operating lease, weighted-average remaining lease term (in years) | 4 years 2 months 12 days | 4 years 6 months |
Finance lease, weighted-average remaining lease term (in years) | 3 years | 3 years 4 months 24 days |
Weighted-average discount rate | ||
Operating leases | 6.80% | 6.70% |
Finance leases | 6.50% | 6.70% |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Leases | ||||
Operating lease cost | $ 9,481 | $ 9,931 | $ 19,485 | $ 21,489 |
Finance Leases | ||||
Amortization of right-of-use assets | 6,897 | 4,790 | 13,203 | 8,622 |
Interest on lease liabilities | 1,516 | 653 | 2,862 | 1,061 |
Other Lease Costs | ||||
Short-term lease cost | 925 | 968 | 1,870 | 1,946 |
Variable lease cost | 2,578 | 2,852 | 5,170 | 5,090 |
Total lease cost | $ 21,397 | $ 19,194 | $ 42,590 | $ 38,208 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 30,496 | $ 29,756 |
Operating cash flows from finance leases | 2,609 | 1,212 |
Financing cash flows from finance leases | $ 23,629 | $ 24,852 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 23,498 | |
2025 | 49,099 | |
2026 | 34,843 | |
2027 | 29,880 | |
2028 | 19,853 | |
Thereafter | 23,700 | |
Total minimum lease payments | 180,873 | |
Less: amount of lease payments representing interest | (24,542) | |
Total operating lease liabilities | 156,331 | $ 176,658 |
Less: current obligations under leases | (43,229) | (42,556) |
Long-term lease obligations | 113,102 | 134,102 |
Finance Leases | ||
Remainder of 2024 | 18,367 | |
2025 | 34,837 | |
2026 | 30,295 | |
2027 | 13,350 | |
2028 | 10,203 | |
Thereafter | 0 | |
Total minimum lease payments | 107,052 | |
Less: amount of lease payments representing interest | (10,977) | |
Total finance lease liabilities | 96,075 | 86,514 |
Less: current obligations under leases | (30,930) | (25,193) |
Long-term lease obligations | 65,145 | $ 61,321 |
Total Leases | ||
Remainder of 2024 | 41,865 | |
2025 | 83,936 | |
2026 | 65,138 | |
2027 | 43,230 | |
2028 | 30,056 | |
Thereafter | 23,700 | |
Total minimum lease payments | 287,925 | |
Less: amount of lease payments representing interest | (35,519) | |
Present value of future lease payments | 252,406 | |
Less: current obligations under leases | (74,159) | |
Long-term lease obligations | $ 178,247 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Apr. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) loan | Dec. 31, 2023 USD ($) loan | Feb. 28, 2022 USD ($) | May 31, 2019 USD ($) |
Commitments and Contingencies | |||||
Outstanding letters of credit collateralized by cash (loan) | loan | 0 | 0 | |||
Letters of credit outstanding | $ 72,900,000 | $ 60,200,000 | |||
Web-Hosting Service Providers | |||||
Commitments and Contingencies | |||||
Cumulative payment for arrangement | 293,700,000 | ||||
Web-Hosting Service Providers | Minimum | |||||
Commitments and Contingencies | |||||
Contractual obligation | $ 350,000,000 | ||||
Minimum amount due in next year | 80,000,000 | ||||
Minimum amount due in second year | 80,000,000 | ||||
Minimum amount due in third year | 80,000,000 | ||||
Minimum amount due in fourth year | $ 80,000,000 | ||||
Bikeshare Program | City Of Chicago | |||||
Commitments and Contingencies | |||||
Annual contractual obligation | $ 7,500,000 | ||||
Future obligation to purchase equipment | $ 12,000,000 | $ 50,000,000 | |||
Reduction in company's obligation | $ 12,000,000 | ||||
Accumulated payments for amended arrangements | 30,000,000 | ||||
Payments to acquire equipment under purchase obligations | $ 59,200,000 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument | ||
Total long-term debt outstanding | $ 1,007,540 | $ 865,160 |
Convertible senior notes, current | 389,374 | 0 |
Less: Long-term debt, current | 39,832 | 25,798 |
Total long-term debt | $ 578,334 | 839,362 |
Convertible senior notes due 2025 (the "2025 Notes") | ||
Debt Instrument | ||
Interest rate (as a percent) | 1.50% | |
Total long-term debt outstanding | $ 389,374 | 743,486 |
Convertible senior notes due 2029 (the "2029 Notes") | ||
Debt Instrument | ||
Interest rate (as a percent) | 0.625% | |
Total long-term debt outstanding | $ 448,900 | 0 |
Non-revolving Loan | ||
Debt Instrument | ||
Interest rate (as a percent) | 761% | |
Total long-term debt outstanding | $ 1,217 | 3,115 |
Master Vehicle Loan | ||
Debt Instrument | ||
Total long-term debt outstanding | $ 168,049 | $ 118,559 |
Master Vehicle Loan | Minimum | ||
Debt Instrument | ||
Interest rate (as a percent) | 2.60% | |
Master Vehicle Loan | Maximum | ||
Debt Instrument | ||
Interest rate (as a percent) | 7.10% |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument | ||||
Amortization of debt discount and issuance costs | $ 1,755 | $ 1,374 | ||
Interest expense | $ 7,852 | $ 6,151 | 14,900 | 11,584 |
Convertible Debt | ||||
Debt Instrument | ||||
Interest expense | 2,184 | 2,803 | 4,797 | 5,606 |
Amortization of debt discount and issuance costs | 951 | 866 | 1,755 | 1,690 |
Vehicle loans and other interest expense | ||||
Debt Instrument | ||||
Vehicle loans and other interest expense | $ 4,717 | $ 2,482 | $ 8,348 | $ 4,288 |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes due 2025 Narratives (Details) | 1 Months Ended | 6 Months Ended | |||
May 15, 2020 USD ($) day $ / shares | Feb. 29, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument | |||||
Proceeds from issuance of convertible senior notes | $ 460,000,000 | $ 0 | |||
Repayments of debt | 40,985,000 | 48,451,000 | |||
Payment for settlement of convertible senior notes due 2025 | $ 350,000,000 | $ 0 | |||
Gain (loss) on extinguishment of debt | $ 5,100,000 | ||||
Convertible senior notes due 2025 (the "2025 Notes") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 1.50% | ||||
Convertible senior notes due 2025 (the "2025 Notes") | Convertible Debt | |||||
Debt Instrument | |||||
Aggregate principal | $ 747,500,000 | ||||
Interest rate (as a percent) | 1.50% | ||||
Proceeds from issuance of convertible senior notes | $ 733,200,000 | ||||
Initial conversion price (in dollars per share) | $ / shares | $ 38.39 | ||||
Limitation on sale of common stock, sale price threshold, number of trading days | day | 20 | ||||
Number of consecutive business days | 5 days | ||||
Redemption price percentage (as a percent) | 100% | ||||
Repayments of debt | 356,800,000 | ||||
Payment for settlement of convertible senior notes due 2025 | 350,000,000 | ||||
Gain (loss) on extinguishment of debt | $ 5,100,000 | ||||
Unamortized debt discount and debt issuance cost | $ 1,345,000 | $ 4,012,000 | |||
Effective interest rate (as a percent) | 1.90% | ||||
Fair value of debt | $ 143,500,000 | ||||
Conversation rate (as a percent) | 0.0260491 | ||||
Convertible senior notes due 2025 (the "2025 Notes") | Convertible Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument | |||||
Limitation on sale of common stock, sale price threshold, trading period | day | 30 | ||||
Threshold percentage of stock price trigger (as a percent) | 130% | ||||
Convertible senior notes due 2025 (the "2025 Notes") | Convertible Debt | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument | |||||
Limitation on sale of common stock, sale price threshold, trading period | day | 5 | ||||
Threshold percentage of stock price trigger (as a percent) | 98% |
Debt - Convertible Senior Not_2
Debt - Convertible Senior Notes due 2029 Narratives (Details) | 6 Months Ended | ||||
Feb. 27, 2024 USD ($) day $ / shares | May 15, 2020 USD ($) day $ / shares | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument | |||||
Proceeds from issuance of convertible senior notes | $ 460,000,000 | $ 0 | |||
2029 Notes | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 0.625% | ||||
2029 Notes | Convertible Debt | |||||
Debt Instrument | |||||
Aggregate principal | $ 460,000,000 | ||||
Interest rate (as a percent) | 0.625% | ||||
Proceeds from issuance of convertible senior notes | $ 448,200,000 | ||||
Initial conversion price (in dollars per share) | $ / shares | $ 21.08 | ||||
Limitation on sale of common stock, sale price threshold, number of trading days | day | 20 | ||||
Number of consecutive business days | 5 days | ||||
Redemption price percentage (as a percent) | 100% | ||||
Unamortized deferred issuance cost | $ 11,800,000 | ||||
Unamortized debt discount and debt issuance cost | $ 11,100,000 | $ 0 | |||
Effective interest rate (as a percent) | 1.16% | ||||
Fair value of debt | $ 307,700,000 | ||||
Fair value of long-term debt | $ 456,600,000 | ||||
Conversation rate (as a percent) | 0.0474366 | ||||
2029 Notes | Convertible Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument | |||||
Limitation on sale of common stock, sale price threshold, trading period | day | 30 | ||||
Threshold percentage of stock price trigger (as a percent) | 130% | ||||
2029 Notes | Convertible Debt | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument | |||||
Limitation on sale of common stock, sale price threshold, trading period | day | 5 | ||||
Threshold percentage of stock price trigger (as a percent) | 98% | ||||
Convertible senior notes due 2025 (the "2025 Notes") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 1.50% | ||||
Convertible senior notes due 2025 (the "2025 Notes") | Convertible Debt | |||||
Debt Instrument | |||||
Aggregate principal | $ 747,500,000 | ||||
Interest rate (as a percent) | 1.50% | ||||
Proceeds from issuance of convertible senior notes | $ 733,200,000 | ||||
Initial conversion price (in dollars per share) | $ / shares | $ 38.39 | ||||
Limitation on sale of common stock, sale price threshold, number of trading days | day | 20 | ||||
Number of consecutive business days | 5 days | ||||
Redemption price percentage (as a percent) | 100% | ||||
Unamortized deferred issuance cost | $ 14,300,000 | ||||
Unamortized debt discount and debt issuance cost | $ 1,345,000 | $ 4,012,000 | |||
Effective interest rate (as a percent) | 1.90% | ||||
Fair value of debt | $ 143,500,000 | ||||
Fair value of long-term debt | $ 375,600,000 | ||||
Conversation rate (as a percent) | 0.0260491 | ||||
Convertible senior notes due 2025 (the "2025 Notes") | Convertible Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument | |||||
Limitation on sale of common stock, sale price threshold, trading period | day | 30 | ||||
Threshold percentage of stock price trigger (as a percent) | 130% | ||||
Convertible senior notes due 2025 (the "2025 Notes") | Convertible Debt | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument | |||||
Limitation on sale of common stock, sale price threshold, trading period | day | 5 | ||||
Threshold percentage of stock price trigger (as a percent) | 98% |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Liability component: | ||
Total long-term debt outstanding | $ 1,007,540 | $ 865,160 |
Convertible senior notes due 2025 (the "2025 Notes") | ||
Liability component: | ||
Total long-term debt outstanding | 389,374 | 743,486 |
Convertible senior notes due 2029 (the "2029 Notes") | ||
Liability component: | ||
Total long-term debt outstanding | 448,900 | 0 |
Convertible Debt | Convertible senior notes due 2025 (the "2025 Notes") | ||
Liability component: | ||
Principal | 390,719 | 747,498 |
Unamortized debt discount and debt issuance costs | (1,345) | (4,012) |
Total long-term debt outstanding | 389,374 | 743,486 |
Convertible Debt | Convertible senior notes due 2029 (the "2029 Notes") | ||
Liability component: | ||
Principal | 460,000 | 0 |
Unamortized debt discount and debt issuance costs | (11,100) | 0 |
Total long-term debt outstanding | $ 448,900 | $ 0 |
Debt - Capped Calls Narratives
Debt - Capped Calls Narratives (Details) - Convertible Debt - USD ($) $ / shares in Units, $ in Millions | Feb. 27, 2024 | May 15, 2020 |
Convertible senior notes due 2025 (the "2025 Notes") | ||
Debt Instrument | ||
Cost of capped call transactions | $ 132.7 | |
Initial cap price (in dollars per share) | $ 73.83 | |
2029 Notes | ||
Debt Instrument | ||
Cost of capped call transactions | $ 47.9 | |
Initial cap price (in dollars per share) | $ 31.82 |
Debt - Non Revolving Loans Narr
Debt - Non Revolving Loans Narratives (Details) - Non-revolving Loan - USD ($) | Feb. 07, 2020 | Jun. 30, 2024 | Sep. 20, 2023 |
Debt Instrument | |||
Maximum borrowing capacity | $ 50,000,000 | ||
Cumulative proceeds from credit facility | $ 5,200,000 | ||
Line of credit remaining borrowing capacity | $ 44,800,000 | ||
Period One | Two Year Treasury Yield | |||
Debt Instrument | |||
Debt term | 24 months | ||
Spread on variable rate (as a percent) | 3.40% | ||
Period Two | Three Treasury Yield | |||
Debt Instrument | |||
Debt term | 36 months | ||
Spread on variable rate (as a percent) | 3.40% | ||
Period Three | Three to Five Year Treasury Yield | |||
Debt Instrument | |||
Debt term | 48 months | ||
Spread on variable rate (as a percent) | 3.40% | ||
Minimum | |||
Debt Instrument | |||
Debt term | 24 months | ||
Maximum | |||
Debt Instrument | |||
Debt term | 48 months | ||
Flexdrive Services, LLC | |||
Debt Instrument | |||
Maximum borrowing capacity | $ 130,000,000 |
Debt - Master Vehicle Loan Narr
Debt - Master Vehicle Loan Narratives (Details) - USD ($) | 6 Months Ended | |||
Feb. 07, 2020 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 20, 2023 | |
Debt Instrument | ||||
Repayments of debt | $ 40,985,000 | $ 48,451,000 | ||
Master Vehicle Loan | ||||
Debt Instrument | ||||
Interest rate swap term | 3 years | |||
Variable interest spread rate (as a percent) | 2.10% | |||
Fair value of long-term debt | 170,900,000 | |||
Master Vehicle Loan | Minimum | ||||
Debt Instrument | ||||
Debt term | 12 months | |||
Master Vehicle Loan | Maximum | ||||
Debt Instrument | ||||
Debt term | 48 months | |||
Master Vehicle Loan | Flexdrive Services, LLC | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 50,000,000 | |||
Non-revolving Loan | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 50,000,000 | |||
Fair value of long-term debt | $ 1,200,000 | |||
Non-revolving Loan | Minimum | ||||
Debt Instrument | ||||
Debt term | 24 months | |||
Non-revolving Loan | Maximum | ||||
Debt Instrument | ||||
Debt term | 48 months | |||
Non-revolving Loan | Flexdrive Services, LLC | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 130,000,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Long-term Debt, Fiscal Year Maturity | ||
Remainder of 2024 | $ 16,665 | |
2025 | 430,376 | |
2026 | 70,106 | |
2027 | 41,493 | |
2028 | 0 | |
Thereafter | 448,900 | |
Total long-term debt outstanding | $ 1,007,540 | $ 865,160 |
Debt - Vehicle Procurement Narr
Debt - Vehicle Procurement Narratives (Details) - Revolving Credit Facility - USD ($) | Jun. 30, 2024 | Sep. 17, 2020 | Mar. 11, 2019 |
Flexdrive Services, LLC | |||
Debt Instrument | |||
Maximum exposure to loss under terms of the guarantee | $ 31,000,000 | ||
Procurement Provider | |||
Debt Instrument | |||
Maximum exposure to loss under terms of the guarantee | $ 0 | ||
Maximum borrowing capacity | $ 50,000,000 | $ 95,000,000 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility & Other Financings Narratives (Details) | Nov. 03, 2022 USD ($) | Mar. 31, 2025 | Sep. 30, 2024 | Jun. 30, 2024 USD ($) | Feb. 21, 2024 USD ($) | Dec. 12, 2023 USD ($) |
Debt Instrument | ||||||
Covenant minimum liquidity requirements | $ 1,500,000,000 | |||||
Acquisition cash consideration trigger, percent | 350% | |||||
Acquisition cash consideration trigger | $ 75,000,000 | |||||
Fixed coverage ratio | 125% | |||||
Other financing outstanding amount | $ 0 | |||||
Scenario, Forecast | ||||||
Debt Instrument | ||||||
Senior secured leverage ratio | 3 | 3.50 | ||||
JPMorgan Chase Bank | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 420,000,000 | |||||
JPMorgan Chase Bank | Revolving Credit Facility | Federal Funds Rate | ||||||
Debt Instrument | ||||||
Spread on variable rate (as a percent) | 0.50% | |||||
JPMorgan Chase Bank | Revolving Credit Facility | SOFR | ||||||
Debt Instrument | ||||||
Spread on variable rate (as a percent) | 1% | |||||
JPMorgan Chase Bank | Revolving Credit Facility | Minimum | ||||||
Debt Instrument | ||||||
Covenant leverage ratio | 1.50% | |||||
Leverage ratio during the period | 0.05% | |||||
Commitment fee | 0.225% | |||||
JPMorgan Chase Bank | Revolving Credit Facility | Maximum | ||||||
Debt Instrument | ||||||
Covenant leverage ratio | 2.25% | |||||
Leverage ratio during the period | 1.25% | |||||
Commitment fee | 0.375% | |||||
JPMorgan Chase Bank | Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 168,000,000 | |||||
JPMorgan Chase Bank | Revolving Credit Facility | Convertible senior notes due 2025 (the "2025 Notes") | Convertible Debt | ||||||
Debt Instrument | ||||||
Outstanding debt trigger amount | 1,250,000,000 | |||||
JPMorgan Chase Bank | Revolving Credit Facility | Term Loan | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 300,000,000 | |||||
Senior secured leverage ratio | 2.50 | |||||
Option One | JPMorgan Chase Bank | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Debt covenant, adjustments to net leverage | $ 100,000,000 | |||||
Option Two | JPMorgan Chase Bank | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Debt covenant, adjustments to net leverage | $ 300,000,000 | |||||
Option Three | JPMorgan Chase Bank | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Debt covenant, adjustments to net leverage | $ 200,000,000 |
Common Stock - Schedule of Rest
Common Stock - Schedule of Restricted Stock Units (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Number of Shares | |
Nonvested units at beginning of period (in shares) | shares | 30,091 |
Granted (in shares) | shares | 18,514 |
Vested (in shares) | shares | (13,122) |
Canceled (in shares) | shares | (1,621) |
Nonvested units at end of period (in shares) | shares | 33,862 |
Weighted- Average Grant Date Fair Value | |
Nonvested units at beginning of period (in dollars per share) | $ / shares | $ 9.40 |
Granted (in dollars per share) | $ / shares | 15.65 |
Vested (in dollars per share) | $ / shares | 10.89 |
Canceled (in dollars per share) | $ / shares | 12.54 |
Nonvested units at end of period (in dollars per share) | $ / shares | $ 12.10 |
Aggregate Intrinsic Value | |
Nonvested units, at beginning aggregate intrinsic value | $ | $ 449,994 |
Nonvested units, at ending aggregate intrinsic value | $ | $ 475,836 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jan. 01, 2024 | Jan. 01, 2020 | Feb. 29, 2024 | Mar. 31, 2019 | Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jul. 26, 2021 | Mar. 27, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Withholding tax adjustment | $ 8,898 | $ 1,827 | ||||||||
Shares repurchased value | $ 50,000 | |||||||||
Class A Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Shares repurchased (in shares) | 3,142,678 | |||||||||
Shares repurchased value | $ 50,000 | |||||||||
2019 Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Percentage of earnings for purchase of common stock (as a percent) | 15% | |||||||||
Offering periods (in months) | 12 months | |||||||||
2019 Employee Stock Purchase Plan | Class A Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Common stock reserved for issuance (in shares) | 13,414,259 | 6,000,000 | ||||||||
Common stock, increase (decrease) to capital shares reserved for future issuance | 3,998,056 | |||||||||
Cumulative common shares purchased (in shares) | 5,717,872 | |||||||||
Increase in number of shares reserved for future issuance (in shares) | 7,000,000 | |||||||||
Percentage of common stock outstanding (as a percent) | 1% | |||||||||
Performance based restricted stock units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Granted (in shares) | 1,577,671 | |||||||||
Restricted stock units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Granted (in shares) | 18,514,000 | |||||||||
Vested in period, fair value | $ 215,100 | $ 150,600 | ||||||||
Shares withheld related to net share settlement (in shares) | 538,359 | |||||||||
Withholding tax adjustment | $ 9,300 | |||||||||
Aggregate unrecognized compensation cost | $ 312,600 | |||||||||
Aggregate grant-date fair value, weighted average period | 1 year 2 months 12 days |
Income Tax (Details)
Income Tax (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 1,851,000 | $ 2,667,000 | $ 4,444,000 | $ 5,343,000 | |
Effective tax rate | 26.96% | (2.39%) | (20.13%) | (1.80%) | |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic net income (loss) per share | ||||||
Net income (loss) | $ 5,014 | $ (31,535) | $ (114,262) | $ (187,649) | $ (26,521) | $ (301,911) |
Weighted-average shares used in computing basic net income (loss) per share (in shares) | 406,512 | 381,884 | 404,033 | 377,828 | ||
Basic net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.30) | $ (0.07) | $ (0.80) | ||
Numerator | ||||||
Net income (loss) | $ 5,014 | $ (31,535) | $ (114,262) | $ (187,649) | $ (26,521) | $ (301,911) |
Denominator | ||||||
Weighted-average shares used in computing basic net income (loss) per share (in shares) | 406,512 | 381,884 | 404,033 | 377,828 | ||
Effect of potentially dilutive common stock equivalents (in shares) | 5,457 | 0 | 0 | 0 | ||
Weighted-average shares used in computing dilutive net income (loss) per share (in shares) | 411,969 | 381,884 | 404,033 | 377,828 | ||
Diluted net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.30) | $ (0.07) | $ (0.80) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Outstanding Shares of Common Stock Equivalents Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share, total (in shares) | 60,689 | 62,173 | 67,634 | 62,173 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share, total (in shares) | 13,712 | 28,208 | 19,032 | 28,208 |
Convertible debt securities | 2025 Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share, total (in shares) | 10,178 | 19,471 | 10,178 | 19,471 |
Convertible debt securities | 2029 Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share, total (in shares) | 21,821 | 0 | 21,821 | 0 |
Performance based restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share, total (in shares) | 13,709 | 13,391 | 14,829 | 13,391 |
ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share, total (in shares) | 1,269 | 200 | 1,332 | 200 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share, total (in shares) | 0 | 903 | 442 | 903 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 30, 2023 employee | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | |
Restructuring Cost and Reserve | |||||||||
Restructuring charges (benefits) | $ 24,400,000 | ||||||||
Operating lease, impairment loss | $ 0 | $ 2,500,000 | 10,500,000 | $ 0 | $ 13,000,000 | ||||
Restructuring related liabilities | $ 0 | $ 0 | $ 0 | ||||||
April 2023 Restructuring Plan | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges (benefits) | 63,300,000 | ||||||||
Impairment charges | $ 6,300,000 | ||||||||
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | impairment charges | ||||||||
November 2022 Restructuring Plan | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges (benefits) | $ 120,300,000 | ||||||||
Operating lease, impairment loss | 55,300,000 | ||||||||
Accelerated depreciation | 23,900,000 | ||||||||
Severance and Other Employee Costs | April 2023 Restructuring Plan | |||||||||
Restructuring Cost and Reserve | |||||||||
Number of employees terminated (employee) | employee | 1,072 | ||||||||
Employee reduction percentage (as a percent) | 26% | ||||||||
Restructuring charges (benefits) | $ 47,200,000 | ||||||||
Severance and Other Employee Costs | November 2022 Restructuring Plan | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges (benefits) | $ 29,500,000 | ||||||||
Stock-Based Compensation | April 2023 Restructuring Plan | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges (benefits) | $ 9,700,000 | ||||||||
Stock-Based Compensation | November 2022 Restructuring Plan | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges (benefits) | $ 9,500,000 | ||||||||
Fixed Assets Not Yet Placed Into Service | November 2022 Restructuring Plan | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges (benefits) | $ 2,100,000 | ||||||||
Lease Termination | |||||||||
Restructuring Cost and Reserve | |||||||||
Restructuring charges (benefits) | $ 9,100,000 |
Restructuring - Schedule of res
Restructuring - Schedule of restructuring related charges (benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | $ 63,298 | $ 24,443 |
Stock-Based Compensation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 9,723 | 205 |
Severance and Other Employee Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 47,238 | 4,326 |
Right-of-Use Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 5,668 | 19,591 |
Accelerated Depreciation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 669 | 321 |
Cost of revenue | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 3,871 | 1,101 |
Cost of revenue | Stock-Based Compensation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 667 | 0 |
Cost of revenue | Severance and Other Employee Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 3,204 | 1,101 |
Cost of revenue | Right-of-Use Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 0 | 0 |
Cost of revenue | Accelerated Depreciation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 0 | 0 |
Operation and support | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 9,250 | 13,090 |
Operation and support | Stock-Based Compensation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 259 | 205 |
Operation and support | Severance and Other Employee Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 3,054 | 3,127 |
Operation and support | Right-of-Use Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 5,268 | 9,453 |
Operation and support | Accelerated Depreciation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 669 | 305 |
Research and development | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 25,793 | 2,554 |
Research and development | Stock-Based Compensation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 4,539 | 0 |
Research and development | Severance and Other Employee Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 21,254 | 20 |
Research and development | Right-of-Use Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 0 | 2,534 |
Research and development | Accelerated Depreciation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 0 | 0 |
Sales and marketing | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 6,236 | 14 |
Sales and marketing | Stock-Based Compensation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 1,045 | 0 |
Sales and marketing | Severance and Other Employee Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 5,191 | 14 |
Sales and marketing | Right-of-Use Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 0 | 0 |
Sales and marketing | Accelerated Depreciation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 0 | 0 |
General and administrative | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 18,148 | 7,684 |
General and administrative | Stock-Based Compensation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 3,213 | 0 |
General and administrative | Severance and Other Employee Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 14,535 | 64 |
General and administrative | Right-of-Use Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | 400 | 7,604 |
General and administrative | Accelerated Depreciation | ||
Restructuring Cost and Reserve | ||
Restructuring charges (benefits) | $ 0 | $ 16 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | May 17, 2022 |
Variable Interest Entity, Not Primary Beneficiary | ||
Noncontrolling Interest | ||
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | $ 12.9 | |
PBSC Urban Solutions | ||
Noncontrolling Interest | ||
Business combination, recognized identifiable assets acquired and liabilities assumed, other investments | $ 22.2 | |
Several Joint Ventures | ||
Noncontrolling Interest | ||
Noncontrolling interest, ownership percentage | 80% |