Lyft (LYFT) 7 May 192019 Q1 Earnings call transcript

Company Profile

Participants

Catherine Buan	Vice President-Investor Relations
Logan Green	Co-Founder and Chief Executive Officer
John Zimmer	Co-Founder and President
Brian Roberts	Chief Financial Officer
Stephen Ju	Credit Suisse
Brent Thill	Jefferies
Doug Anmuth	JPMorgan
Mike Olson	Piper Jaffray
Eric Sheridan	UBS
John Blackledge	Cowen
Ron Josey	JMP Securities
Andy Hargreaves	KeyBanc
Michael Graham	Canaccord
Justin Patterson	Raymond James
Tom White	D.A. Davidson

Call transcript

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Operator

Good afternoon ladies and gentlemen, and welcome to the Lyft’s First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode to prevent any background noise. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Catherine Buan, VP of Investor Relations.

You may begin.

Catherine Buan

you. Thank welcome XX, earnings XXXX. and quarter for the March ended to afternoon call Lyft the Good I Relations at Catherine Lyft. am Buan, VP of Investor

In our particular, the filed in public before May Form in risks CEO, Investor on Officer, will expected call. those available the future and of known financial Brian to are Logan then future and These partnerships, or President, included statements launches remind XXXX with Joining are at Brian Lyft our Relations relating outlook. initial and of call, business, give XX, performance on XX-Q SEC this from March implied our Roberts. and conference making webcast Zimmer; Logan This offering will an statements take risk you final perspectives factors cause results key to risk statements those will differ the be forward-looking and and be this website products projected filed materially be update John and I’d unknown Financial today opportunity in via to uncertainties will QX during and like financial business our we and Green; to overall results, investor.lyft.com. long-term growth will actual review Chief me results expected factors and our John to prospects. and during strategy, our including subject on described included to that Co-Founder our that for our our call could discuss and XX, services, and this Co-Founder results initiatives, that XXXX.

statements events. make today them and statements on required future of except update that are assumptions applicable this as we and should forward-looking call of our All rely as no undertake to as on based You obligation by we beliefs predictions on not law. forward-looking

furnished to and should non-GAAP to of in for substitute GAAP not our will or addition non-GAAP considered financial Relations Logan? as on from X-K investor.lyft.com. now the with measures. at supplemental reconciliation in found be may today may with I today found Investor in Executive like to non-GAAP Green. our also Chief include and A our conference was These which and isolation be website to Lyft’s a release materials, would filed over results the discussions measures Officer, Our results. call GAAP Co-Founder and earnings our Form Logan turn SEC be

Logan Green

Lyft. representing before year to joining growth to point EBITDA year-over-year. to the a year-over-year representing XX% significantly thank big year and for a adjusted for a improved Catherine, in record of first same XX versus XX% with revenue, loss improvement an margins QX quarter time, a you XX% earnings absolute We Thanks, At rate. incredible call. an percentage today’s million achieved the kick-off everyone was $XXX

momentum, On the about drive excited year and back of strong investments future execution growth. our we’re this and that’ll initiatives

Our momentum three primarily factors. was by driven

was product first The innovation.

was third execution. market and was focused growth; strong Second the

magic even get improved price to few waiting allows such and new leading an This is as with is a riders margin experiences product out highlighted year Saver. been single entirely a resulting over revenue and The rollout blocks that been of better passenger cancellations shared Shared incremental real driver matching fewer walking on rides QX, for rolled service by more a Lyft few better and by In Lyft product the the first a pairing to new platform. the rides platform. factor, The or we’ve unlocking in we matches was results on every improvement. handles version The minutes. that matching working have a Lyft. This of innovation called significant,

place, alive and driver now in ask same both Saver more soon. Shared other allow For on without one three blocks a the same them This coming meet away pick corner. riders each two to both heading the are Saver Shared if additional two markets each would is detour. to with from up would riders block to example, walk are and any

high in Black Lux, rest ahead. modes, the year-over-year. Lux QX few as Those and Additionally, business to higher we’ve This further particularly Black, value XL, just grown expect as twice of of Lux these given we the from wins rides. big the is are year and exciting continue our of gains profile a fast the margin

at iceberg. a ownership to towards Transportation-as-a-service was is the tip growth. factor The to car away the overall of is ride-sharing transportation-as-a-service second grow The of beginning portion users for continued ownership as for continues growing Lyft. shift market of and the is replacing secular transportation-as-a-service population. more market turn The the world and car more from just

In Lyft all. most at car don’t fact, according economic to recent our report, XX% impact a own of users

the versus the this just still you As That of market, execution. XX% matter the John last part vehicle our review QX riders to over third it’s strong small all trend, [ph] fraction active it’s beginning. of up to traveled. turn behind now said, factor And a we it to in grow focused $XX.X I’ll size how just year. growth, million, saw miles No Lyft’s

John Zimmer

we execution our One, Logan. investing at are two, is transportation; on the fast three us singularly are three, Thanks, advantages scale. deep full in we on to competitive consumer our go has we us helping and that want build of allowed of call our that It stack community; I strategy are highlight transportation are Business. offerings. singular successfully along focused driver and we areas to on executing enterprise focus Lyft grow

For is through until programs, and including in until York of cost bikeshare example, New exclusive major span contracts XXXX, XXXX, bikeshare key run have cities, until Francisco Chicago to cities XXXX. XXXX, operating contracts San exclusive we Boston

our We are now to customers’ full experience. together transportation bring starting

in other execution the allows to ahead. to York Yorkers Just last directly expanding in transportation ability users New the app, This received best Lyft our well be New city continue focused book more bikes as Lyft us in to the we’ll weeks own for week, delivering many as unified the and access experience markets customers.

community. we of better community. investments how drivers, have one, experience tell for our investing day When we and to driver want pioneer hospitality a driver care From our are in about innovations key to deliver they riders. take I you you Next,

of tailor-made card everyday First our back each purchases debit their credit. community. new Drivers with Lyft on Lyft to are get same-day a instantly regardless and Centers. and and gas after later Direct tips driver with In pay, account and cash flexible bank plus recently programs, including more our they we program. and earnings two rental Lyft is access able Driver vehicle for Direct no-fee Drive, ride, introduced their Express QX, important groceries

card tools financial access includes the planning Additionally, features. setting goal to and

offering to Centers, money loyalty we increase on is washes. and our our save Last, opened a talk significant channel. and Next, discounts our use Business, This have great their example enterprise to of drivers car to can first scale maintenance, repairs want Lyft I how Driver Lyft. we about

these QX, major such and Our Delta, with JetBlue, partnership for we medical as employee get SouthWest healthcare with travel partners of categories. student UT patients In and in including spend financial airlines and appointments, all for as others. many saw national partnerships to university Mastercard USC for Austin, and continued travel, partnerships growth like partnerships such to categories corporate universities partnerships several and from

overall business. partnerships faster than travel even less are Specifically, for employee corporate growing

quarterly which transactions some the provide business recent Certify seen and great data the have on results to valuable vendor We report, analyzes most insights SpendSmart T&E corporate from industry. ratings expense the

is a to from preference more announced most business. work, expensed XXXX cared of enterprise a company resulted X.X will decision is XX%. are to more travelers. ride-hailing Americans. of with space. Their stars Airlines and many T&E Waymo In that issues. and according is further has we Delta of values deploy with and vehicles a our with the enterprise its up For is tied issues, This trust quarter Five almost a will that sustainability of because now strengthening the We Lyft see partner an significant Lyft average is on In in in Forbes vendor channel, Lyft five brand Certify’s to it thing indication company this momentum corporate social QX the as initiative we’re was or Lyft’s increased a environmental where will rating that important country. study Rating is There’s the more talk that advocated corporate across X% responsibility Since be employee our top-rated because and they ride-hailing business with from XX% fifth of loyal has impact key Lyft alignment be or a excited purchase the one XXXX, social This which to it, consumers service social share the in corporate most number momentum companies play supports awareness of an Star momentum. product, choose often areas spend Customer Today, for is differentiator. a expenses fourth And row, driven to about. Waymo working the indicates for to that Lyft issue environmental XXXX, System. XX% our the American to with. of by by about. significant, with particular, many our a platform. companies QX likely supports strategic and XX% In they cited social out in November, company a for

and financial QX step vehicles for With over quarter our with reached leading this important start an network. bringing to transportation to I’ll deployment by our XX self-driving in this expect signifying world-class hand technology it together We Brian results. QX that,

Brian Roberts

Thanks, John everyone. afternoon and good

revenue our year-over-year strong number attract riders by improving in Total generated the increase XX% quarterly to operating Our $XXX on execution of to the an market due million riders on initiatives driven by quarter year-over-year adoption delivering growth record first focus number $XX.X our the and our million, and XX% rider. riders. and active active retain increased demonstrate increased of results active revenue of quarter and The leverage. wider the ride-sharing to for primarily platform a to while per

number also contributed riders. publicity in the company’s surrounding that the and quarterly attention We active the to increase strong IPO believe a of

continue monetization we platform, to usage quarterly to $XX.XX. our As active of revenue XX% and increased year-over-year per rider drive

on, move stock-based of I my I exclude and the payroll Before follow that tax. measures in note million that non-GAAP remarks $XXX income compensation want related to statement

in to requirement condition found time vesting our issues condition. vesting the earnings of our met the a time-based second non-GAAP restricted A Our upon also effectiveness performance unit liquidity be may awards related stock-based the that results our expense. met GAAP stock the had a issues triggering reconciliation IPO, event our both in condition immediately have release. previously based of are compensation

period strong to first a in the in contribution insurance the growth insurance of processing This XX% our XX% as from of to periods. first margin quarter, move the under can for three decline percentage TNC calculation insurance to be excluded period historical hosting. well expenses in of as Let attributed margin year-ago increase transaction me same up TNC regulations, ago. is quarter. in of the contribution. the relative revenue revenue and the fourth XXXX. to reserves the record expenses required a as quarter reached year and change leveraging to all include in These successful all contribution cost a expense

Let’s support. move operations and to

a quarter driven and bikes, increase XX% revenue express ago. revenue or scooters and was XX% to was in First same investments by $XXX operations period percentage the a as in support million year compared drive. of The of

a P&L of operations than was a million bikes same year ago. our a ago. scooter been excluded in of the in revenue a if revenue XX% same the year the to from period percentage point, and XX% would current $XXX or in our as period data initiative Just as have period compared expense from support lower R&D was

partner. future. investments a in adjusted in includes feeling from of same reimbursement, from revenue R&D compared have platform key autonomous million period period Without and reimbursement improvements autonomous been are our codevelopment the XX% year XX% $XX The would R&D a to current Our the core our ago.

prior XX% and period year we of gain revenue was this same we are growth. improvement the a sales million of from sales down our $XXX marketing ago. first year mind scale revenue significantly million that and margin ago loss preference, significantly year-on-year improved leveraging in the marketing. XX% quarter loss the investments achieved the in or in the of to EBITDA loss improvement point $XXX company the a XX% versus quarter, percentage point million XX% compared a realize XX% XX in XX brand In EBITDA for was adjusted and and year a period. $XXX keep was to year-over-year. our As Adjusted while representing drive in percentage

extremely an cash to remain We position. strong on cash balances. in Moving

As we of basis no March XX, first from proceeds closed the of investments. pro net billion forma billion April. IPO, $X.X billion of our which cash, $X.X unrestricted for on have and over $X Lyft of at a the equivalents cash part in debt. with short-term

to moving So, guidance.

second Let is difficult a will for growth revenue. with million being $XXX This lap anticipate of XX% introduced in wide comp of to of a growth of representing for XX% XX% rate revenue revenue as billion $XXX quarter billion me start range of second we increases achieved range to we the be to the million growth of the $X.X rate XXXX, industry light strong XX%. the the annual of we will full year. $X.XXX to representing in pricing quarter XXXX, last be in year the in year-over-year. anticipate an

operating Now, moving leverage. to

in believe quarter. costs originally in the help strength We of leveraging efficiencies we’re expected. business are portion our that a we will success first initiatives even ride-sharing offset and our the strategic realizing now pleased We than larger with in

a the second in bikes EBITDA the EBITDA and in success As loss we’re year, the the we range range in adjusted of of adjusted quarter, for billion, $X.XXX full be of our investments impact includes $X.XX $XXX result $XXX the undertaking autonomous anticipate which to to million. of the be anticipate million scooters in loss driver centers. to we and will our

move XXXX business profitability as strength back our steadily now to our We’re path be in then Logan on of basis. encouraged it loss anticipate We ride-sharing. towards see remarks. by a a I’ll year profitability clear to our for we peak consolidated closing core and turn the will

Logan Green

To and Brian. great thanks, year. right. first are a All conclude, had big we quarter for excited another

excited for our financial the execution to towards and strategies new successful to days These continue industry, and results impact we’re our our innovations the scale early the are plan. company the demonstrate of market. that by Our all and our strength platform, deliver and on will discipline

the of momentum excited We’re by proud and lies ahead. more what even

inspired to want I I to Before explain move bring mission tell story our to so we’re Q&A, quick a to to life. why

patients And This across established for many and with ecosystem incredible community; able now States now, which our that the her serve kidney the healthcare her riders for United diagnosed been with on just has lift. take Lyft didn’t City. platform to old in among to she years our XX a appointments own like Operator? care are they patients has week. driver year, $XXX family partnerships the appointments and Her unique. New of of One lack country York the recently and to lives X.X failure has is questions. She it health largest healthcare best loss million story is open bad with healthcare up medical systems in a I’d have the and need. to work. many to rider impacts to Every get one not this like to is due and motivates our the every transportation, Americans missed leads outcomes billion the

Operator

question Our line comes [Operator Ju Suisse. you. from Stephen with the Instructions] of Credit first Thank

is now open. line Your

Stephen Ju

Okay. Thanks guys and congratulations.

the got asked process was questions owning IPO of and around users market using the may during lot, one ride-sharing in versus be they’ll addressable car. So, general a be the choice a of how the

talked you not XX% car. users owning think a I Lyft about of

for every go case And to now and usually before to then over have first, how from does users from to which secondarily, at started every an can Lyft them you of take Thanks. that use – then, get anything just airport with everyday and ride these perhaps day. it share long years, have cohorts observed you becomes from it the they So, about might but work.

John Zimmer

you. Thank Yes.

can share comment frequency. John. rid to car Brian in the we’re users, rider’s estimate is seeing than the the on of of year-over-year because specifically increasing cohorts other this most number that XXX,XXX Lyft. got an was on there’s trends of just recent Nothing that, Lyft So, say their

increase. we that continuing see are those trends so to And

Brian Roberts

about to and point. of I car high move that generation you trillion, the of to we instead this $X trillion And talk other own To folks you company. we’ve seen this ownership have $X.X like – a we’re is in is the Yes. the deliver businesses more can going consumer the dollar price much like of lower just often level, see $X.X alone, market spent after when you it, plus in market And can or once a in requiring transportation-as-a-service. experience over car or better product-as-a-service And cloud. trillion is transportation ride-sharing deliver industries, than a in we customer ownership. to think a at world U.S. Lyft a Netflix, at – you on trillion this opportunity it the happen have a like entertainment companies industries Spotify, a

economical flipping that is pickup for our where really of more and riders bit lives often urban a our convenient we of major is and and so most the and a today, you’re in the see And insurance choice, parking most when more largest high Lyft of cost dense within high at predominantly, city. customers. somebody looking rates, areas especially that city. and works the

remarks expand there’ll introduction we’re that point And of look wholesale car and the people to services of get switch households cars. talking come. about families trends When that we the were of we about two We’re price one Saver, of the you to further to continues seeing the Shared out and suburbs, further. going opening sort bikes the from rid be more array of talking seeing of you’re some we and to offer, lowering also think car their as households. scooters.

we’re service suit trend that to that products towards see continue an more over use going more introducing I keep of to a we think as acceleration ownership. So, cases,

Logan Green

had in quarterly quarter data down a we’ve history, of in never to just terms Lyft’s add a active riders. And point, the

And strong. growth in grew quarter-on-quarter very most XX%, $XX.X we the to the million, recent so that year-on-year, quarter, XX% is so

Stephen Ju

Thank you.

Operator

our from question Jefferies. the comes of And you. next line Thank Thill with Brent

is now open. line Your

Brent Thill

quick afternoon, lot near be talk on you’re great. bit the have in just your for a focus investments the a to There expand Good bit Logan for Brian, partnership, and are year. profitability. maybe that the been around little be could John, out Google-Waymo you a little the this and pathway maybe you rolling first, terms And will of making question of any to where if about going follow-up

said, and if losses that that’d think just could color, continue lower you those little Thank will I helpful. you to trend be believe you provide more you.

Logan Green

Great.

John Zimmer

So, mentioned on as and the would will Phoenix. Lyft Lyft Waymo their be in in Waymo QX, we partnership and vehicles launching Waymo partnership, this self-driving the new integrated into be platform public

safety So, to that of at we will vehicles end it Phoenix over XX thousands driver by the area and look serve There time. be expect be a in Metro about the these will in QX to be of vehicles. passengers

that the if this to matched app. their to is able is is vehicle. work Waymo to so And for service with be and their a vehicles though partner it first the destination, nearby enabled outside vehicles have to passenger providing ride they that own will would book opportunity Waymo the self-driving be the a Lyft in and time the service. origin of that way

Brian Roberts

of on the So, the just in to profitability. path to follow-up question terms

XX% We quarter growth. one just year-over-year trillion announced a revenue are of with opportunity. $X.X a day We market

P&L and is drives today Our strongly. core our trending ride-sharing

because believe investments the business value. strengthen we making and autonomous also long-term strategic other we’ll shareholder bikes and core create and We’re initiatives, in scooters

leveraging loss improved scooters the bikes underlying XX hie and a XX%. and XX% adjusted in profitability, and our Now, growth, costs results period core investments, the autonomous now, in only a not to a of ago. demonstrate absolute EBITDA the marketing declined XX% even first in from year-over-year XX% strong of path margin in margin as but in today percentage Non-GAAP driver from ride-sharing, to a improvements improved with world-class loss same point EBITDA XX%, investments to contribution success to from the jumped but sales year the terms and also the of improvement quarter. centers adjusted our XX%

business and core profitability to in So, see we a strength the path definitely encouraged are clear our by of core ride-sharing.

as both dedicated teams growth company year prepared XXXX have increasing we grow efficiency our steadily us cost ride-sharing that peak across levers. curves then of be initiatives We anticipate the the loss and will will And business core to my towards profitably help consolidated a I as that basis. mentioned bending finally, more by remarks, in in on profitability we move the

Brent Thill

you. Thank

Operator

Thank you.

Anmuth Our with next question JPMorgan. comes from the line Doug of

Your line now open. is

Doug Anmuth

wanted ask the Thanks taking for questions. to two. I

Just periods? first, secondly, of And a just XQ. in on margin you past you’ve lot see can they and then detail and you about that the are think some bend it How has of your percentage a the towards insurance been degree as more There over bending Can you current thinking compares of years. to you move revenue XX% us cost curves. incentive give cost and couple view discussions Brian, incentives talked promotions previous particularly the us incentives Can the give and about of you long-term? just of leverage Thanks. do about environment? contribution how curve the

Brian Roberts

Absolutely.

So, to quarter, Again, start declined year-over-year from non-GAAP first of grew sales percentage the XX% marketing while XX%. we XX% first your me and as with in a let revenue question. revenue

I success just revenue was the proof in sales XX% sales point quarter in mean marketing and XXX% as extraordinarily marketing first non-GAAP are of and XXXX and in momentum. our efficiencies. driving XX% our in in achieved pleased the just historical XX% context, brand for percentage with another preference, XXXX. of and XXXX, We a is

the of terms on competitive I current incentives rider Now, recently receded. terms has in of environment, competitive in your pressure would say question

rational. encouraged We’re headed this simply the and right is becoming by direction that the in increasingly industry

in to not of just factors on as factors. insurance. reduce reduce two have insurance the of severity drive to and insurance of initiatives making as answer changing question, both your And business variety then There’s data workflows win cost to well to the technology, a we accidents. is experience, price. costs, investments strategy And that Our science we’re frequency the

the and just because to I believe related excited when three but share may get ROI can me high I very insurance. talk about initiatives we off, cut examples. have You I’ll super insurance need quick

able in driver to are behavior monitor to heartbreaking. be We speeding assess and investing or telematics

investing predictive third-party is mitigate in insurance new And claims to the improving a to finally in moved This of settlement someone administrator we analytics The closing claim quarter, out in both first claims. itself. reduce in to help here to claims then how cycle handle terms goal We’re times, is we the claims. new fraudulent us and thereby quickly contact results.

Doug Anmuth

I appreciate you. Thank the color.

John Zimmer

Sure.

Operator

Thank you. And our next question comes with from the Jaffray. line Piper of Mike Olson

Your open. line is now

Mike Olson

Hey, good afternoon.

Just at should following on level your and the technology a maybe maybe additional partnerships the specific Could the on bit this? effort same technology with share higher earlier, think how we Waymo internal you potentially like thoughts details expect development developers external partnering of deal. Waymo while future question time, than autonomous the like you some about

John Zimmer

Yes.

our great So, autonomous team position, of to our components. in X have Level given a strategy. pieces data, talented group. amazing first platform, to we believe our build and two own we one party, is self-driving our we’re an is access which our

And technology something a the therefore those a and agnostic ETAs in important to autonomous note better are utilization where vehicles and can that’s our we to existing business benefit today system before making through investments higher from. marketplace. this mapping first-party but we’re comes that that and even there’s efficiency the

technology. part therefore and leading strategy. have And with so of a a Waymo our phenomenal AV we third-party is partner

of expect both And affect we on can part doesn’t it relationships two-pronged the developments more that you and have. sides other of strategy, that it’s that so And strategy.

Mike Olson

North on singularly think wood to you think you’re mentioned long-term focused growth market, American do a a you on really at international I focus then in is America? realize lot again, Thank chop you option but And you. transportation, there’s North North of I with to about but transportation, the $X.X America, owned expansion said least transportation Okay. trillion spent don’t for

John Zimmer

Yes.

today at have on and right international focused opportunity. any and and XXX% United a current don’t now, absolutely States the Canada on U.S. the do Canada. as focus Our but look is potential we’re plans. future We

Mike Olson

Thanks.

Operator

Thank next from you. our Eric the UBS. line And question with Sheridan of comes

now Your line is open.

Eric Sheridan

taking marketing, year-on-year obviously driver Thanks the structure improvement cost of gross biggest below so for and much Sales the question. in the margin. the

wanted and but sense bit whether better the more into much. against XXXX, think the and of way longer-term? a that Thanks get returns efficiency, dollars how little marketing higher Just seeing into potentially you’re so not channels we you’re marketing only to where marketing should about leaning factor in sales

Logan Green

me add off John some start current in market color. I’ll last my I to is then let and where I would which hand Sure. it improving. to additional maybe, answer, the competitive started say, is

a seeing incentives. of are rider reduction in We terms

is so in do headed the believe, direction. the And industry we right

on we brand generation. us, For focused are defining building the of our

John Zimmer

Yes.

look And market so been. years about just you most this the And I the the economics, and has revenue old. rational from can at the the is that as – have for now in of if been market perspective, Logan you Lyft is seven see a percent

important that’s takeaway. markets. happens, players, right? times are because players pickup major can really both that strong in provide there now as happens, a ETAs, three-minute think two three-minute And that I And

we’ve company where down always And versus this believed to so then the the reason why people that one something important. the is brand. is And other choose comes

valued have better we that I and the done than believe Something always, always industry.

adds, it app you the take And so mean place we takes within touch we don’t locally. in our the company. That brand, have that that actions and itself, build down. to care continue opportunity that sales that leverage so the line, to And biggest our we place for be every for drivers. single point gets in mean that And come takes against with and the think that us we will that can marketing products we

Eric Sheridan

Thank you.

Operator

John the from next Blackledge question our with line And you. Thank of Cowen. comes

line Your open. now is

John Blackledge

Great, thanks.

just you the revenue just that And initiative how you. is the these the in center this and percent it on you and on centers. responding been in ramping could rollout, how that Just you this how bikes or year? the update far driver perhaps second question Thank are a quarter? and out questions, you markets thus number have bikes of couple – how this centers and rolled scooters are of to incremental drivers of on bikes the from saw on scooters with driver now year was provide scooters, and then color far thus How many an a

John Zimmer

this Yes. is our and part take of our centers, broader On go of beyond driver strategy to care to above drivers.

industry of have We from over first drivers, We’ve a first were a day have Express for to weekly had for tipping which day We the all program history a we Express provided option launch to the driver drivers. Pay, pay years. So, driver which the initiatives. same with also facing preference one. which helped is Drive, the launch of rental sustain build were and leading

drivers excited service very vehicle component cost, operating that. expenses, driver our and the of big a service is top about centers, We’re

And for we’ve had get imprisoned of market do number show some we and help. get hubs, can up as a the to refer hubs of activities where of drivers sort years. them to a and so that’s their in to onboarding

So of we questions. a service to it’s at just drivers low-cost, was had basic bar for of vehicle provide, an answering sort instead cost like realized experience. type essentially What we genius opportunity really

on still anecdotal has we’re drivers that service to been and operating number this So, centers. we’ve positive. these a with we’ve early centers scale speed first driver it’ll up – And year. the focused at continue now really feedback our but from very it’s opened are days, two of driver more

and to able drivers we’re money. quickly, making on the quite help around get back So turn cars road

of number financially, make car the use to for be driver car’s your a you that on a days, shop if depend and money. that platform, can tough very because on As the in

service with speeds. So, we’ve focused high-quality record on helping

So, still anyway, it’s excited but we’re about – the initiative. early, very it’s

Logan Green

and scooters. markets scooters, bikes, And approximately with we nine then with XX bikes on have

but continue the as Lyft app. with in, We’re economic will I breaking it’s on out the first with few And city in that those we be York, actually to now, not book side. the remarks, have said to bike be something we relationships that invest going excited prepared local separately, a will New in cities. able that within customers to the we’re

John Blackledge

Thanks.

Operator

from Thank Ron And JMP you. the with line our comes Securities. question of next Josey

is now open. line Your

Ron Josey

to initiatives to here. one attract the little riders more $XX.X a and Great. the question. Thanks you million. Brian, on of taking for mentioned growth, retain folks the rider XX% bit

any and provide you programs can on Just Thank or and those more helping of you lessons you. the on the initiatives learned prescription we’re how testing while it, that’s or mentioned loyalty a details insights service? at little

Logan Green

of this in the attribute that a Yes. experiences. year. the curve; launched that That a reduces decent investment our service back growth in new unlock is Lyft and QX big just was of on portion the I’ll over platform that the initiatives we of we been cancels, into of a Logan. the couple go for working reliability rider increases matching the we’ve one

and that’s and markets lower three shared like into bikes first app. in live efficiency system. to integration provide now the talking Saver cost the driving of by able the and our about Shared scooter was a further ride in So, rollouts just John Lyft

provide So, striving those for better we and our more see are trying a to experience as afterwards we multimodal over experience customers, a time. a continually whole stack all of and reliable

Ron Josey

Great. Thank you.

Operator

with the you. And KeyBanc. comes question Andy Thank Hargreaves our next of line from

is now open. line Your

Andy Hargreaves

ask share to gain bit it of the want the and like a you seems just is share gain question on brand, persistent. Thanks. I sort

on to help us we doing that there if underlying wanted there on of and you’re might that? are those drivers what could – should benefits your milestone? reinforce insurance, there scale the So, steps on to a just just you stair get the overtime different give a hit any we smoothly see – And or follow-up thoughts then sort the

Logan Green

Great.

Just on brand the front.

advantages, One has we’ve had been a the driver market on in of preference. always the

they which and talked Lyft Uber, well ask as Direct. initiatives Lyft of Driver to of who you about the as – driving one the like this Lyft. And when Historically, latest Lyft on drivers, we prefer majority are Centers the So drivers for prefer? both drivers day, drive service

years launched actually had a same-day Pay, Express puts number is service directly on a card. after every debit of pay extremely and we And which ride been the Debit that Card driver’s ago, new Lyft Direct So, it’s money popular.

yet a addition, with lot drivers In of banking – our fees. of drivers hit a ton

adds a we think can by additional at no hospitality of providing end of account, drive And launching so of lot experience. a better And bank up the economic we all day, a fee to this the value.

in is of and take of goal in rider to driver for Lyft when the car. care the take a in Lyft the Our – the care to turn for get you driver that,

So that’s experience. our part of hospitality broader

showcase to our really Additionally, we’ve significant values. investments some made

on the platform, and So single last year, those one ride we carbon of neutral offsets. every we made of purchase became of Lyft largest offsets, the purchasers through carbon voluntary the

the and really we’ve at to of and Additionally, called to fair difference ride non-profits program, the the round program with. RoundUp with nearest the the Donate, partnered riders of can one dollar proud we’re we have RoundUp and donated a Donate. being of a handful of And through up this opt optionally end that into

over program harness we’ve finding our million a big a building the and been raised power values launching collectively, of year brand. ago, change of for number different the a causes. we’ve little over differentiated And really, to $XX the has I ways So, platform living think for of part since raised, a this

John Zimmer

Logan. Thanks,

question part Let me insurance. two around answer of your

it I opportunities. I gets about We reduced of quarters, short-term should TNC single excited as say say, a exciting opportunity, insurance development. spectrum, there’s of look so the we’ve of then five every though opportunities I me long-term adverse range is have can any cost excluding last back quarter; really the there’s is and revenue the insurance what a because percentage just initiatives when and both business

is statement. this to to for an So, try opportunity the income largest leverage of to our on really us costs continue one

Operator

line Thank Josey you. And our from with next question Securities. of comes Ron the JMP

open. now is line Your

Ron Josey

guys, me again. Hey it’s

helpful. ask I’ll us relative coming expense also where detail EBITDA you basis? That’d Thank XQ definitely I’m were I And Brian, more noticed get to that. you for give can Just be in down real an guidance, that a back on little quick, in. on just to we

Brian Roberts

Sure.

comments So, some guidance. I provide may extended on

phone. on Just want to the everyone have

your answer. – may this then with a And into I’ll go let me be expense I’ll revenue. relatively So, actually And long the start question.

So, increase quarter-on-quarter. riders publicity public in given active unprecedented as the company with some positive positive XX% quarterly for riders jumped was both major to quarter, The pleased the in of by go rider. about surprise I trends active where the QX first number mentioned first The per benefited tech we really us. active Lyft my That XXXX. believe being momentum said, from we riders do active revenue and in of remarks, a strong in we’re underscored prepared a

in of terms want we significantly This significant QX, last the of to there increased industry increase this an quarter remind was price XXXX. boosted second In – second that investors year. increase revenue quarter introduced of wide in the

data active XXX% XX% of revenue which growth annual jumped in a and as second to the revenue quarter-on-quarter a growth. point, XX% Just led last year, quarterly per revenue rider quarter

challenging comp this year. So, creates a this obviously

guides of year’s to implies growth for of $XXX exceptional million Our million QX off XX% $XXX revenue annual XX% to last revenue QX. of

So, still is up. this a for coming quarter super strong us

will revenue to seasonality. scooters first we between and that more This going active bikes continue active given we bike it’s on flat noting bike that and to anticipate especially, consolidated We of bikes anticipate revenue and QX period, may our more in the bikes trends. specifically, per a really This rider if grow look seasonality scooter with consolidated snow this expect rider fall the may decline seasonality. out QX our have More in it and QX Additionally, other our scooter is for reason. worth the as meaningful that cause positive both pronounced and revenue growth over number scooters. more from and impact be Also, we riders active per in may seasonality customers. the exhibit and and to summer we and quarter-on-quarter business, scooter new later surprise be same as year, impact from a there’s revenue revenue

let answer switch asked gears Now, expenses. me the on to you question

leverage our pleased extremely P&L efficiencies are our areas and in first than important were and larger investments our believe expenses We the quarter. in able centers driver will of strength core initiatives scooters, portion that will that the offset Notwithstanding in even autonomous now to we help of We we’re the strategic this originally expected. and expenses. we increase operating benefit, and bikes business realizing and ride-sharing

And so let spend moment just some a highlights. to provide me

a In ago, margin, the a period the in year we terms same contribution first reached we as of XX% expenses. leveraged quarter versus key XX% record

network two our we expand depreciation of percentage and shared remainder will in scooters. negatively is XXXX, contribution margin to For be points the by bikes everyone versus as I that of QX remember to impacted contribution. want three

We’re our able the leverage strategic and to of support excluding investments. new also operations efficiency

and increase remainder of expect over our XXXX, we Express bikes and the Now, Centers. scooters, investments our Drive of shared network in to Driver

an these revenue and core a from of we’re we QX to with the relative as that guidance operations efficiencies to of increase the and investments. quarter. the points baked of the remaining provided. levels is unlocking anticipate into XXXX, of ride-sharing, that in third an notwithstanding level we’ve support percentage percentage peak This will three anticipate So, non-GAAP we a quarters QX In five increase result expected as

from improvements to R&D increase multimodal percentage in percentage versus as our platform of QX fuel with the up Moving future, invest R&D points non-GAAP that QX over revenue increase R&D, as we QX two will We two points key and anticipate remainder will XXXX. and QX of QX a our percentage non-GAAP autonomous the levels.

we’ve about Now, in excited sales leverage extraordinarily terms again, delivered. are of the we marketing, and

decline the period the We of a quarter, second really to across as down XX% will for XX% marketing of remainder launched scooters as and expect shared and percentage as bikes in and hold Centers XXXX we well that there country. in the of year-ago network sales our from and as revenue expand the Driver

that said XX% and from required as Finally, approximately non-GAAP points percentage as beginning with what XXXX. and And QX We strategic remarks. leverage to end expense our G&A we we I QX in the my revenue a as increase will of can four unlock as repeating SOX percentage at in initiatives anticipate that in build QX readiness. G&A of prepared out in peak want I anticipate part just support QX new well to

just a we’ll the We see XXXX core – then and ride-sharing. be are And then baked we by said remarks the year and of steadily we strength profitability the to in we a We all move at our profitability of anticipate last path encouraged towards provided consolidated again, were business move guidance on I into peak EBITDA. really will the clear our basis.

Operator

Graham with Michael line of question Canaccord. from And the next our Thank you. comes

line now is open. Your

Michael Graham

a Thanks lot.

Just two.

just maybe, wonder more relationships spend complex as of some you bit shared about a little a to or straightforward with there it as time shared if minute key And you. landscape, you’re else look proposition. things you the what could governments? KPIs the do three-minute rides, you cement what a are talk state focused arrival Thank can as First obviously rides you and on the just on government about and then a is regulatory think and local on is

Logan Green

Yes, Logan. is this

a quality do but talk of through lot use we disclose can we rides; of We for. internal of I look level to we on sort of don’t of what a high at service. those, the So shared have the any measure KPIs that

efficiency first generated around by The the the is system overall.

on matching that window, prices. does in – based the of pickup lower So, opportunities matches what’s obvious there’s efficiency efficiency also we at for then riders. those So quality what the in times, higher type tradeoff, overlap are look And the addition and we to generate just at lets what’s the rate? What’s then matches? we rides? system? an window, the back a there longer that those our look of more Because that there’s – match can quality and the the pass of matching to And pass

two the pick and to destination to so as quickly the just So, to how what’s comes quality lastly, we’re the your find as we’re between obviously, users. on to route. how the not car of match, much detours right balance do trying of try And get sort for fast the optimize we up and the our price minimize possible. rider, time. but the the There’s you not And to always really the on tradeoff pickup just or working then a detour

level of hopefully high those those, disclose other that internally. KPIs. ride of a areas kind numbers bit the you break or out sense we But little gives again, a at don’t that So look we of shared

John Zimmer

local to some policy policy Fox, front, to Lyft; Carolina. Mayor he President North and the leave policy Charlotte, Transportation hired we also the the who used of of you at On of Secretary for Obama run Anthony was know, Department

and federal So, in understands both politics opportunities transportation. he local and

we’re and him his to continuing with served so that well. have team, us relationships local And build the

we’re the aligned We’re are interests investing locally, to we’re local taking sure officials. actions the of and make with that listening the

Michael Graham

Thanks very much.

Operator

you. with And Justin James. from next of Patterson line Raymond our the question Thank comes

Your now open. line is

Justin Patterson

some healthcare talk during Thanks. like factors quarter. What Great. need traction the On driving growth? to vertical? had success there you about you it within do enterprise, the Could continued Thanks. you do to sounds the further that get

John Zimmer

Yes.

critical So, an of past. believe is And the nine, changing thing nine they with it just first that a part things I over built transportation, healthcare the I how in did done top think has the brokers. the industry relationships team is

up, a street, then And So held best that that medical wouldn’t they sometimes. historically, the call from would was a taxi times transportation, for when that dispatcher. which in up a happen someone needing would that call into to with like have his would the rider, do they would taxi non-emergency Logan call if remarks center, it patient. and And their taxi show to other mentioned call center out show then

the able customer with in to cases and these worked book that’s an off. directly build those large other be than transportation a success the in integration – which to drop that brokers. that for a needed – basically, of broker we’ve centers, the call and us Concierge. Lyft And rides service a there’s And those some have allows so the cases web order allows And platform multiple that when are rides, pickup with it’s by and API and to the run track called to brokers deep

So, first relationships. those was establishing

to these be scale be non-emergency the and bringing will new that. of transportation laws policy technology third and in account medical some their cases, because front, to will on the this more work appointments of to didn’t ways for new building patients And form are then platform was Second transportation need adjusted.

Operator

Davidson. Thank you. from comes line our the of Tom D.A. White last And question with

open. now is line Your

Tom White

question. Great. Thanks my for taking

there. insurance So since a talking IPO. congrats follow-up you about just like maybe first on much, so Brian, the off,

ride to efficiencies a give the Waymo do related sense by just to your can three think highlighted and a drivers I’m economics You’ve insurance. partnership of it’s of of you a kind were think a you Lyft early, much – a of you Could curious Waymo the how how and out leverage magnitude us can cheaper look on roughly? XX was specific maybe grab think maybe, guys that of you XX about strategy, costs part months five today XX And how of but also big in get the that there the it to based if ride per get kind the maybe insurance split? think we where driver, to realize put go? to next we Phoenix you you per of And autonomous person announcement, then day, should can terms if years versus kind it’s for over versus maybe

Brian Roberts

Sure.

So, this is Brian.

about excited different Let The so me question. many first initiatives. tackle reason there’s insurance get the is just so I

we For goals company, for have the the different company.

so And companywide. of the insurance is reducing number goal in first actually half cost the the one

that we in list has timeline terms of three, mentioned and I probably XX could so, discuss. a each initiative of different And have unlocking What’s powerful is really we benefits. probably programs XX to different a initiatives

reserves a time for actuaries. in cetera. will to And and the so et in of be internally third-party this it’s of so actuaries going something is one, having an impact, work take then again, we it credit may stat to sig terms we loss but know give and terms with

of we one platform. of on the see, years opportunities costs have So, where terms we in this is unlocking

Logan Green

very Waymo’s on Lyft comment economics. can’t about are platform. on we them relationship, opportunity work we Waymo and the to the the again, for get the with to And excited But

Tom White

Okay, great. one. one Maybe just last

slip see? booking also aren’t I was be that us give gross you sharing don’t – going just rides maybe, you in trends about, I It’s forward? as think it that curious in. and it I’m quarterly not the guys Could why sense any Sorry, guys to – release going well. press

Logan Green

Sure. Thank you.

So, a our marketplace. ride-sharing virtually historical entirely was business

included the so and And in rate bookings take we SX.

So, investors monetization trends. the could understand

investing those aggressively equals now were including revenue bookings. in areas We’re new

top-line of investors believe and no solely it’s increased basis. growth absolutely drives take more going since a year-over-year the that our initiatives, investors quarter performance confusion for best percentage try we this believe a And on is increase avoid the to the revenue want so revenue So, a absolutely just use could metric based to this bookings. revenue to as it’s revenue just We as for Revenue really there quarter-over-quarter is across on rates positive proportion call, in first in investor relative first on of us equals analyze quarter. to metric Lyft forward. initiatives. confusion. P&L both all We appropriate for the more using important bookings the where

up In bikes time terms and understand shared milestones forward. we metric going time. of related best the will to begin business don’t is we scooters the rides, to report think ride subscriptions, as way ride lean and important from expand really into we our to our But networks

fixed in rider example, business now rider. riders amount. to in a right active offer bikes on York, for it’s For for we New access investors where a believe better revenue bike subscription understand active has unlimited based dollar our We and per to trends

Tom White

you. Thank Great.

Operator

back over turn the CEO, call and to like any for remarks. further now would Co-Founder I And Mr. you. to Green Thank Logan

Logan Green

take for All questions. right. call. forward thanks seeing to Thanks much the right, joining first for our great you very care. And look earnings so soon. All Bye. everybody all all We

Operator

This all thank you conclude have you does Ladies and program. day. Everyone in participating wonderful today’s for conference. may the And gentlemen, a disconnect.

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