The math could be wrong. So feel free to correct me
It is based on page 8 of the earnings report https://s27.q4cdn.com/263799617/files/doc_financials/2023/q2/Lyft-Q2-2023-Earnings-Supplemental-Data.pdf
Lyft made 1020M in Q2 2023.
Lyfts total costs were 1179M. The cost of revenue was 606M.
So opex cost was 1179M-606M = 573M.
Lyft reduced headcount by 26% in Q2 2023. So Q3 2023, opex should be around (573*(1-.26)) = 424M.
Lyft guided to make 1113M with a 45% contribution margin. So lyft will make 500M in gross profit.
500M – 424M = 76M in net profit.
If the math is correct, Lyft will join Uber in becoming net profitable in Q3 2023.
Leave a Reply