Investors expected a less-than-stellar balance sheet, but it was the backhanded slap in the face a company executive delivered to investors that leaves questions about the rideshare darling’s transparency.
Hey Investors, Lyft Knows What’s Best for You!
When asked about why gross booking trends weren’t included in the earnings press release, Lyft CEO Logan Green said:
“So, our historical business was virtually entirely a ride-sharing marketplace”
“We’re now aggressively investing in new areas including those where revenue equals bookings. So, we really want to try to avoid investor confusion. We believe it’s more appropriate for investors to use revenue as the best top-line growth metric since revenue drives our [profit and loss] across all initiatives.”
Don’t Assume Shareholders Need You to Dumb Down the Data
Implying that investors would be confused by the data smacks of elitism. Critics pounced on the company for not providing information on the total revenue generated that would help determine how much drivers were taking home.
In an opinion piece, a MarketWatch writer hit the nail on the head when it comes to Lyft’s logic:
“While Lyft suggested that investors’ poor little brains just couldn’t handle a separate figure outlining the actual size of its business that certainly wasn’t the case with the bottom line.”
The writer was referring to Lyft breaking down the typically complex figures for GAAP and non-GAAP net income, GAAP and non-GAAP operating income, and adjusted EBITDA, “with vast differences in all those numbers.”
MarketWatch also pointed out that:
“Lyft even offered an extremely nontraditional ‘adjusted cash’ figure in supplemental materials, so that it could add in the IPO proceeds even…