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Stock impact report

Why Lyft Stock Is Cheaper Than You Think [The Motley Fool]

Lyft, Inc. - Class A (LYFT) 
Last lyft, inc. - class a earnings: 2/11 04:05 pm Check Earnings Report
Company Research Source: The Motley Fool
On the surface,Lyft(NASDAQ:LYFTExpenses overstatedFrom 07 to 09, Lyft's net loss ballooned from $688 million to $.6 billion. That looks like a terrifying trend, but the company's 09 results included a one-time $.6 billion stock-based compensation charge related to the company's IPO. That was an accounting recognition of stock awards that had previously been given to employees, not an ongoing level of stock-based compensation. Normalizing Lyft's 09 financials for this extraordinary expense means Lyft would have lost closer to $.0 billion last year instead of $.6 billion.Image source: Getty Images.That shows meaningful margin improvement. Lyft's net profit margin was negative 6% in 07, negative % in 08, and negative 8% in 09 (excluding the stock-based compensation). That trend reveals a business that is approaching break even, and the company's own adjusted net loss and adjustedEBITDAFree cash flow is also moving in the right direction. In the last three years, this figure has improved Show less Read more
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