Balance sheet analysis
Lyft ‘s total assets were $4.564 billion and $4.556 billion in 2023 and 2022, respectively.
Total current assets were $2.58 billion in 2023, accounting for 56.6% of total assets.
Total current liabilities was $2.96 billion in 2023.
The current ratio was 0.87 for 2023, which indicate that Lyft ‘s total current assets covered current liabilities 0.87 time for 2023.
Total liabilities was $4 billion as of December 31, 2023.
The debt ratio was 87.6%.
The company ‘s liquidity was insufficient and the debt ratio was very high.
We need to look at the company’s cash flow.
Net cash provided by operating activities was -$98 million, -$237 million and -$101.7 million in 2023, 2022 and 2021, respectively.
Net cash from operations has been negative in the past years.
Profitability analysis
Lyft’ s revenue was $4.4 billion, $4.1 billion and $3.2 billion in 2023, 2022 and 2021, respectively.
The revenue in 2023 was up 7.3% year-on-year.
The revenue in 2022 was up 28% year-on-year.
Lyft ‘s growth rate in 2023 was only 7.3%, which is very low.
This trend would trigger valuation in decline, and financing ability in decline.
the decline in Lyft’ s growth rate of revenue indicate that the company is difficult to make money, and that the company faces fierce competition.
Net loss was $340 million, $1.58 billion and $1.06 billion in 2023, 2022 and 2021, respectively.
Net cash provided by operating activities was -$98 million, -$237 million and -$101.7 million in 2023, 2022 and 2021, respectively.
Net cash from operations was negative, which illustrate that the company business model is not successful.
Conclusion
Lyft ‘s growth rate of revenue in 2023 was very slow.
Lyft’ s growth rate of revenue, which represent the company ‘s potential, is important for valuing a company.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Lyft, Inc. (the “Company” or “Lyft”) started a movement to revolutionize transportation. In 2012, we launched our peer-to-peer marketplace for on-demand ridesharing and have continued to pioneer innovations. Today, Lyft is one of the largest multimodal transportation networks in the United States and Canada. We have an important purpose, which is to get riders out into the world so they can live their lives together, and to provide drivers a way to work that gives them control over their time and money.
Our ridesharing marketplace connects drivers with riders via the Lyft mobile application (the “Lyft App”) in cities across the United States and in select cities in Canada. We have established a scaled network of users brought together by our robust technology platform (the “Lyft Platform”) that powers rides and connections every day. We leverage our technology platform, the scale and density of our user network and insights from a significant number of rides to improve our ridesharing marketplace efficiency and develop new offerings. We’ve also taken steps to ensure our network is well positioned to benefit from technological innovation in mobility.
Our offerings on the Lyft App include an expanded set of transportation modes in select cities, such as access to a network of shared bikes and scooters (“Light Vehicles”) for shorter rides and first-mile and last-mile legs of multimodal trips.
Substantially all of our revenue is generated from our ridesharing marketplace that connects drivers and riders. We collect service fees and commissions from drivers for their use of our ridesharing marketplace. As drivers accept more rider leads, Gross Bookings1 and Rides1 increase, driving more revenue. We also generate revenue from riders renting Light Vehicles, drivers renting vehicles through Express Drive and by making our ridesharing marketplace available to organizations through our Lyft Business offerings, such as our Concierge and Lyft Pass programs. In 2021, we began generating revenues from licensing and data access agreements. In 2022, we began generating revenues from the sale of bikes and bike station software and hardware sales substantially through our acquisition of PBSC Urban Solutions Inc (“PBSC”).
Riders and drivers want and value choice, and we believe there remains an opportunity for growth in our marketplace. In September 2023, we launched Women+ Connect, a new feature that offers women and nonbinary drivers the option to turn on a preference within the Lyft App to prioritize matches with nearby women and nonbinary riders. We are focused on delivering a great rideshare experience and will continue to innovate for drivers and riders, creating an increasingly differentiated service over time. We are committed to building a durable, healthy and profitable business for riders, drivers and shareholders.
