Lyft's IPO filing reveals nearly $1 billion in net losses in 2018

In 2018, the company's revenue totalled $2.2 billion, while it lost $911.3 million

Lyft pulled back the curtain on its business for the first time on Friday as it prepared to go public, officially starting the countdown on a horde of technology offerings that are set to bring new wealth to Silicon Valley this year.
 
By publicly unveiling the prospectus for its initial public offering, Lyft signaled its intention to meet investors in what is known as a roadshow in about two weeks, after which it will most likely start trading on the stock market in April. The ride-sharing company leads a stampede of other highly valued private tech companies that plan to go public this year, including its archrival, Uber, as well as Slack, Pinterest and Postmates.

 
But Lyft’s filing also raised questions about the financial health of the tech companies that are planning I.P.O.s. Its filing revealed that while it was growing quickly, its losses were widening. Last year, the company’s revenue totalled $2.2 billion, while it lost $911.3 million.
 

“We have a history of net losses, and we may not be able to achieve or maintain profitability in the future,” Lyft said in the filing, adding that it expects to spend more as it expands into new offerings and locations.
 
The prospectus is the first time that Lyft has made extensive details of its finances publicly available. Its public offering is being led by JPMorgan Chase, Credit Suisse and Jefferies. Lyft did not disclose the market valuation it is seeking from public investors; it was last valued at $15.1 billion by private investors during a financing round in June.

 
Lyft filed confidentially to go public in December, the same day Uber did. Both companies are duelling to hold their offerings ahead of the other, in an attempt to be the first publicly traded ride-hailing company. But the onus has mostly been on Lyft to get out first because Uber — estimated to go public at a valuation of as much as $120 billion — would potentially steamroll its much smaller rival.
 
Both companies are set to face questions about when and how they will become profitable. The ride-hailing business is inherently expensive because companies typically pay incentives to recruit drivers and offer discounts to riders. In 2018, Lyft’s revenue more than doubled to $2.2 billion from $1.1 billion in 2017, according to its filing. But losses mounted, rising to $911.3 million last year from $688.3 million in 2017, though they declined as a percentage of revenue. Total costs and expenses were $3.1 billion in 2018, up 77 percent from $1.8 billion in 2017.  

© 2019 The New York Times News Service