LYFT - Earnings call transcript Q2 2019

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Lyft Second Quarter 2019 Earnings Call. [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 June ended to afternoon, call Lyft the Good I'm Buan, Catherine VP of Investor Relations.

to on Co-Founder Zimmer; our business today CEO, John will Brian me discuss update are and results Joining website on an Co-Founder Roberts. call and and will Brian as investor.lyft.com. then key Logan available will Logan Green; Chief results guidance. be and provide and John Relations as updated review well our via webcast give initiatives, at President, This Financial Officer, our conference Lyft's and Investor QX financial

in the described our filed our factors final in offering These I'd to our forward-looking initial strategy, XX, this public factors prospectus statements, with risk during particular, take to business, included differ included this from expected implied in on and the of like our making for March XXXX, Form relating overall risk be those SEC subject second and in first on the call, growth call, are risks quarter statements our to results, XXXX, August unknown or the to future to this XX, remind you and by financial filed including filed XX-Q of XX, materially results XXXX that Form for May the for will be XX-Q and long-term XXXX could actual quarter during uncertainties performance that opportunity we prospects. XXXX. will of statements those that projected cause our known future and

and to except any we are any of statements rely and the statements predictions events. future by All based beliefs make as update our obligation date of this that law. disclaims forward-looking hereof, on not statements, should as Lyft call forward-looking required on on assumptions You forward-looking as

financial our furnished our financial of GAAP not be isolation historical a our website non-GAAP results, Information at GAAP Relations and measures, today non-GAAP for may which regarding in considered found non-GAAP our was addition be be in a X-K with These measures SEC, to discussion filed found release, non-GAAP also as results. in Investor the from reconciliation Form to may measures. on include our and financial should our earnings investor.lyft.com. will substitute today Our or including with

I conference Lyft's would turn now and to Logan over Executive the to Green. like Officer, Co-Founder call Chief Logan?

Logan Green

drive continue progress Catherine. Good We're on call joining and pleased executing for towards strong and and report increasingly successfully to favorable, very everyone, you earnings. another conditions leverage thank today. sustainable Thanks, to afternoon, we're to operating quarter. The our be plans our market

driven in monetization Revenue XX% in Active Active grew growth exceeded was transportation our of year-over-year the market both by Rider platform. while XX.X year-over-year to per revenue leading XX% our number million, revenue per XX% Growth Active Active better Riders Rider and healthy expectations. grew The Riders demand of of and year-over-year.

As milestone our a and to operating an improving leverage. on strong was quarter line profitability. significant top our path we environment, a This result generated growth of market

rides ride time frictionlessly to we're traffic, A and of Lyft and most with past more a and For fastest and to way they keys riders B. efficient is building you modes in point transportation world of of a the from glide complete that be compare transaction. the relevant car trade Shared Lyft all becoming bigger where money rapidly your We across rush more can point that more and will Lyft. get accurate to allow part believe to and riders, hour From our bikes how our Saver affordable

quarter's are another This significant vision. towards step realizing results that long-term

product. Saver earnings about last talked our call, I During Shared our

our Saver who more short a Shared to or markets in wait distance. In we X reminder, walk affordable As are bringing option to riders QX, offers a longer launched markets. coverage to willing a total X a Shared new Saver little

we monetization. and As roll up seeing this efficiency we're system-wide out, to improvements scale

exciting the which commitment because we account public This of QX, into for the be public transit is Lyft form scooters affordable integrating Lyft's to transit trips XX% by is the now of fastest, with extend cover all transit and Lyft combined data reach collectively can bikes, the doubled app. of in of trip. legs help X different real-time our transit, to which live public down U.S. most which transportation, in often on markets, can In This is a ridesharing, the

a own in Chicago, Francisco We've our size seamless Bike networks bikeshare in Boston, fleet X in riders and our York into across Blue Lyft triple ago, in which starting together and San York and just between bike we markets, and modes, our with announced D.C. one San York, experience Citi and these Divvy now Bay and access plans leading in Wheels all our app, area. service within expand we reminder, Francisco, in bringing programs operate in the rideshare New the been New area double a As providing City, including Also, XXXX. the Bike weeks few Citi program, our Bike will New Washington, Bay to

life make progress as increase help investments lower our Active confident Scooters contribute are next-generation and costs. scooter better will are in Lyft XX on We our scooter our bottom strong of introduced bikes and live well. scooter that a network we Active has to the quarter, longer operating serviceability both line. term, top revenue In and markets. to This continue Rider. past mind and we to our Collectively, and now battery scooters bike we Riders long expect to per keep

exciting new ridesharing addition of trips world hundreds core millions physical Enabling these in the real the an our requires infrastructure. and robust In across platform. behind improve extraordinarily operations of modes, technology and and daily expand markets digital to we continue to

of experience our operations innovating our communities. continuous improve of week all in are week to Our teams product for This every our on and and to is out. engineering facet core effort ability platform, the

locations is called Fast between feature that airports team local at One Match. the recent tight operations Fast and launched new to large enable like We've markets more efficient launch in venues. several event high-volume partnership captures and Match the and pickups our faster engineering

for So, clearly overall instead pickup airports: grow the and areas, Lyft a will rides. where airport We take available Midway, LaGuardia. marked direct This help your queue of is Chicago of will passengers we area can pickup car. at driver live Portland three next up high-margin hectic often drivers you believe volume this and searching International, at us now to

up started to scheduled availability in for In advance. our a week in another riders allows platform, XL, major This price Black enhancement lock markets. and roll rides to many Lux available to in out we to and

an we're sleep can Lyft that modes of economics. knowing high-value already to got share you've in early morning Black airport. have XL, are if how attractive unit ride you've the you flight, like types Lux grow improvements continuing So to which These easier your booked and

Waymo have resulting as app. and into seen, the seamless Phoenix the first vehicles in an was integration close launched This collaboration area. we on finally, of the Waymo between you in And Lyft the may Waymo Metro vehicles teams, exciting Lyft Lyft achieved through self-driving

work to and I'll our now talk to driver enterprises. we're about for doing it turn community the over John

John Zimmer

some of this the great Logan. made I'm highlight progress excited Thanks quarter. to we

our and deliver lives experience transportation. world's to to able us riders. the with on we're for more value best delivering improve strong foster By our the enables best to drivers, community driver possible mission retention Our to people's maintain

teams the experience earn more. help constantly on to Our driver improve ways and are drivers working

X We help last up it's information X% hourly by the maximize about have years. over than drivers their driver Average when are added where to features that more earnings and drive. providing best earnings

basis. This We'll quarter, best serve we will results also driver more began of closely implementing a be the monitoring even earnings our community. as these work improvements on work that week-to-week driver we make consistent to

can Lyft can a navigating be partnership helps the complicated. is that insurance covers them auto With GEICO coverage GEICO whether buy Lyft GEICO's through and reduce rideshare on this on between insurance with or out We've For personal Lyft the drivers policy, friction. off. app that Lyft platform, rolled drivers

rideshare a $X.XX giving drivers win-win. up save with who eligible an to may Lyft mind, Both on rides. ride drivers This and receive sign addition In peace more policy is program drivers this of per money. additional

convenient centers to expanding opportunity vehicles. best the to our value provide find is order driver maintenance their increased provide and the at best driver for We're price. helping affordable, service them experience Another our in to community maintenance

days, initial it's NPS very are our scores early While industry still leading.

the to In markets We and people. addition drivers and more seeing are vehicles. as Group, to our across Express personal access to continuing increase rental utilization continue We're the helping strong with opportunities Drive Avis more grow for Drive unlock to program excited markets rental our drivers rental expand to launch we earning country to fleet. newest to across access provider, Budget we're new vehicles, with Express this quarter for their driving launched Lyft X

we I'd With our By large-scale Business, able through investments our organizations, now users Lyft product program collaborating called like to partners. to we're turn with enterprise solve complex enterprises work platform use challenges more and more leverage transportation to Business. with and cases. our across and for our Lyft

play Logan health care role can that Last exciting in Lyft the quarter, the ecosystem. mentioned

an to were people. provider to health transportation millions state following Medicaid and access and This help partners collaborate care quarter, improve we become modernize approved enrolled new Arizona, regulations. policymakers to of excited in with We're for

with service. Van already we in our our million enhance we of both values Lyft's also and expanded connected together Resort rides quarter, to becoming World plan have and Disneyland by rideshare transportation Resort. experience Minnie we presence World Resort and at Disney expand Disney Walt X experience, Aligned This work through guest overall Disney continue to Disney's Walt official hospitality at the with guests of to parks. collaboration the Together, over

U.S. transportation example agreement rideshare, be scooter and Lyft AEG the we exclusive designated partner cars, transportation across and a to another With and pickup announced venues venues, full will to can The XX of importance scooters. fans a Lyft operate In drop-off expect for work have suite providing to illustrates of smooth an solutions growing the bike experience from of AEG to creating with partnership, for events. getting bikes our of more spots the partnership and solutions. world-class

constantly important in partnership members, able year, Lyft members with they always on is great members will engage and who Hilton. way an ride a be this partnership Later these for we launched Honors credits. QX, now exciting redeem will Hilton points Finally, Hilton Honors are earn of Lyft points for travel be tens when move. millions with the of to This members Hilton has starting Ground also been Honors to to to able Lyft.

expand for further with through the to find that values brand business. them We to and and ways We relationships. differentiate rider will continue engage and service community and unlock our experience our believe continue opportunities with an strongly our travel enterprise elevated provide to our

I'll Brian. now hand to it off

Brian Roberts

everyone. good John, afternoon, and Thanks,

Riders, quarter the reflect QX and platform for product, revenue $XXX with the health results in up our XX.X growth increased QX was and Riders in We expectations. Riders XX% We by believe million year-over-year driving Revenue record increase the to driven of $XX.XX, XX% the number the operational year-over-year, Growth Both driven Active year-over-year. success majority Rider. Rider Active half XXXX. with revenue market IPO Active Active a rider was of Our both of the per Total and positively first excellence. XX% impacted of ended these Active million. growth an ongoing in organically. our publicity per exceeded of revenue surrounding Lyft's up new drivers

and growing is we the but and drove to this ridesharing the dynamics signal to Lyft's in significantly while U.S. expense. this brand back market exceptional leveraging industry. important I'll is a of later, improving come sales huge note leverage that preference growth this It marketing

which website. liabilities regulatory contribution, assets, historical of by attributable the cost and compensation adjusted move for of non-GAAP want filed and with Form available compensation Relations reconciliation stock-based release, income today I intangible historical that less to statement X-K revenue required changes to are our to and SEC in with is that indicated, defined otherwise which items. unless furnished Investor exclude and and to was insurance our amortization to stock-based all our results non-GAAP on, note before A other follow may found on Now periods. of as revenue be is select This GAAP agencies expenses exclude I measures includes earnings related

to dollars year QX on QX up on XX%, was our basis leverage. in and up a million, with our result in focus as of our The Contribution period increased quarter-over-quarter our margin Contribution was slightly given of growth XX% year-over-year. a related from expense of associated declined factor margin $XXX we the XX% contribution biggest absolute guided, as a was investments. monetization Contribution bikes network continued from for sequential while, same ago and the shared expansion scooters. costs increases

ridesharing core QX QX. our the relative we to strength on QX based However, in margin business, improve now in expect to contribution and

we may in in return anticipate that we XX% mark margin contribution QX. achieved to the fact, QX, In

contribution regulatory $XXX reminder, with development insurance as adverse periods. the this historical We auto attributable liabilities for Now adverse administrator adjustments new losses attributable to experienced The by relationship for a required historical to excludes agencies reserves insurance quarter. to claims. is our of largely third-party Travelers, changes development million for predating our in

we cost we've insurance go in been to of manage remain year terms reduce confident increase safety, foundational our leverage In and the ability investments the forward, making of platform. costs given this to accidents the Lyft in

that required the ridesharing in than third quarter be lower for percentage the as expect cost of insurance the revenue quarter. of We second in a will

to year XX% up Operations but expenses. a the and expense to $XXX ago for driver Drive. primarily than scooters; including period driver period better support relative was guidance. operations, investments by from move in year Express as and well revenue, The hubs or Let's and QX ago driven increase bikes same was increased million of local the as XX% in our operating centers;

commitment differentiator. and operations support best-in-class supporting Our delivering for drivers increasing local an is competitive to

million same period was from from guidance. or a year ago revenue, expense development and better slightly $XXX of up Research but the XX% XX% than

key fueling product, are R&D platform in autonomous investments and in Our improvements our future.

sales As beyond truly marketing second quarter in exceptional. optimistic the The was was and outperformance mentioned, our I the most forecast. leverage

market favorable. be conditions said, Logan to As continue increasingly

ago, the XX% a the and almost a from QX revenue, is as period XX% in Note sales down from in same classified was declined to XX% year points of relative nearly quarter. the marketing and that half revenue, of XX% marketing a first As of sales full the the in second and the QX. percentage XX quarter, incentives XX% percentage as

or in period of General the $XXX revenue, better and up than same XX% was year from administrative ago but expense million guidance. a XX%

outperformance to guidance. strong expense revenue combined a in beat leverage to with Our significant significant led EBITDA relative adjusted

between quarter was compared EBITDA to improvement loss the to of improved loss and EBITDA loss a ago adjusted in second million $XXX year of and representing $XXX for period in XX% prior a margins point Adjusted Our loss $XXX year-over-year. versus million a XX% the $XXX XX million. year, for million significantly the guidance percentage

June and had of debt. As XX, equivalents billion investments $X.X of unrestricted cash, no Lyft short-term over cash with

strong. have position liquidity shortly describe to a outlook, path our so believe profitability, in As we I clear we our will remains extraordinarily

summarize, an on quarter To both significantly outstanding guidance that the QX surpassed line. and our bottom top was

of Our with we're riders quarter result. results a guidance increase growth benefited from platform. our Lyft's as strong the substantial market conditions, making organic transportation exited in momentum, and and the tremendous a continued expansion in We

specifically, on incorporates live June. guidance adjustments select prices price we of adjust on modest elasticities. began select demand the and went and based routes cities towards Our that More costs end in to

further, industry We expect accelerate Lyft's an that we these changes path and reflect to adjustments these will trend. profitability, price believe

In let terms revenue. start of our with outlook, me

results, improvements our revenue healthy in dynamics are QX business. our strong market significantly core in continued on evidence of outlook monetization ridesharing our based increasing We and

quarter be anticipate XX% a the million, we XX% will in XXXX, rate to $XXX representing third range $XXX of million of year-over-year. the to revenue growth For of

XX% the and outlook billion full year billion, $XXX representing XX%. are up growth revenue be our $X.XX For will million that of by to range we annual revenue anticipate our to in increasing prior between XXXX, the guidance. relative $X.X We to

Now moving to adjusted EBITDA.

pleased half extremely with of see in leveraging the an success improving market first evidence our costs are and We of year environment. continued the

are As improving result, our EBITDA. for a significantly outlook adjusted XXXX we

range loss our will anticipate we adjusted in million million. quarter, $XXX the of $XXX third be to the EBITDA For

This $XXX or EBITDA million anticipate guidance. of $XXX in year loss XXXX top our prior we For that the versus full range demonstrating million. improvement XXXX an we strong will with $XXX now means This be smaller to a growth our be profitability. EBITDA as our path clear than of adjusted anticipate we adjusted to loss driving will line is million XX% the XXXX, balance

are With market it remarks. improving me strength business conditions. for We of by that, the turn let back encouraged Logan the to our and incredibly closing

Logan Green

this all quarter, effort Brian. incredible All about our right. across performance on built strong our We're Thanks, teams. of excited

scale. XX% Our growth rate exceptional our is at this quarter revenue

competitive We are in signs show U.S. to market continues outlook the of for environment the confident improvement. increasingly ridesharing as

We're generating business of Brian efficiency the making terrific leverage, our indicated. and on as progress improving operating

partnerships like Our Lyft scale. brands Business Disney, and team deliver is world-leading leveraging to expertise at solutions with building our technology tailored

choice Finally, we're decades platform the technology solidifying setting of our companies. ourselves for to up for as come position by self-driving

want through better because help this local from the we're XX significantly to the moment in this key transportation. over people Program. where nonprofits to rides that million seniors in We're Before program to addressing around cities problems questions, live and far it out I too stores. Lyft nonexistent flat-fare people we're facing are more which limited with near committed are We've than and this to lives a and we're on moving to rolling families best options Miami, get and affordable more and transportation. To to the is serious expanded is access healthy people's or communities future. including areas to a Through expanding to dozen low-income our with the improve Access estimated spend looking grocery Atlanta world's organizations on our stores building to It's Grocery away. U.S. grocery cities partnering program, and to to deserts, cities, to provide challenge, forward food address access in food mission,

open it And up now like we'd to Operator? questions. for

Operator

Instructions]. [Operator

of Doug comes JPMorgan. question Anmuth first Our from

Douglas Anmuth

think over about few the next ridesharing peak us relative understand that then And to just seeing talked the then you you help investments Is year. still path as in years? And also you the can give you're in loss you can the case? bikes core the profitability XXXX update and autonomous? on to about XXXX improvement loss have losses how scooters and for Brian, an us We also example. just breakeven,

Brian Roberts

Doug. Thanks, Sure.

in that of investments year. peak terms XXXX the investment So, we previously said we're have be would making, our

out changed EBITDA to guidance think smaller. our this important of for really it is have get call We to $XXX be million expect in of I adjusted that we now loss. what's XXXX terms the

our likely compare it $XXX was year million if So, loss $XXX $XXX EBITDA. last of million to terms million, you year's guidance turned last adjusted out in peak against the of

momentum and the of terms now, is that, in driving excited that smaller super we're we overall losses. the right have platform So, the

breakeven, be folks this longer-term terms later than in of terms terms we by updating points. XXXX well. adjusted of as breakeven we'll in say I XXXX In year that be our expect smaller EBITDA to model of will But

Operator

from comes Barclays. Ross the question of line next Our Sandler of

Ross Sandler

two just a Guys, quick then questions and one. maybe housekeeping

the your years last little utilization and basis the we've of XXX points your over data still about suggests seen trails competitor that up gone by two larger Some a bit. rate's

how can kind on a the changes on went going you close the comp. think movement do at we then second impact through have question Can how How about the So pricing take stock-based of mentioned and in question And stock that rate And And you gap? the June. and that changes quickly is housekeeping level that that growth that volume these financial then in would forward? might given you think just high business? about the is forward? going should talk impact you the what then

John Zimmer

comment then you question Brian, and utilization. the take on we pricing do to can want

Brian Roberts

Sure.

the into So, adjustments at very end June. of of effect that pricing, described went in terms I the price

there was in limited So, impact QX.

happened and think And strategy. QX, I the so, a our of think continuation it's really in question, I what

and valuable not Business on to that's Lyft more And growth premium to investing focused been profitable grow why at share are us. is growth, We such all we've rides, important airport driving rides as so and modes our the of costs.

efficiency shared the We increase also And as rides pricing. the of finally, the efficiency enjoy financial well improving and algorithms the were success effectiveness incentives in QX. that as we of improve power to able driver

strategic grew really Rider per drove that that Active $XX.XX. of was of initiatives year-on-year our prior terms it Again, to monetization in execution increase. XX% So, QX, revenue

adjustments adjustments demand elasticities, smallest. price adjust and markets based in prices would the routes routes would we we In is really made in on and be these And went we cost future, to demand cities where of and modest June, try the we to of live terms price began believe on trend. that select as reflect an and mentioned, the I impact what towards I say industry the pick end select

well in So, both up expect mix to expect accelerate QX. that the we Rider revenue the as per QX, as will increase shift X% price and Active that versus could QX revenue per Active and we Rider adjustments QX in in

year-on-year, to up up we and QX XX% was QX think could about So year-on-year. XX% go

and Virtually, on address Let million vesting comp IPO we'll stock valued all the me service-based stock-based RSUs answer the your IPO purposes were contained utilization granted our price. condition, or RSUs before for of granted restricted that XX and a then question. March question, GAAP units including the XX performance-based at

the a accounting accelerated expense in with For purposes, use RSUs company attribution the is to for SBC required recognize a one. service to addition performance-based method to condition

front-loaded under method, with of simple English, plain from in treatment is the SBC this service and different is a condition. the accelerated RSUs So, just attribution

majority IPO. The QX is stock-based RSUs of compensation expense the related to granted vast before our

I the As IPO before to was granted RSUs expense the front-loaded. mentioned, related

will portion go come of SBC down forward. So as we our that expense

we quarters, two by to million stock-based $XX comp roughly decline next the quarter. For expect each

Logan Green

And this is Logan.

there of that utilization, influence driver is. factors a that of terms are what In lot

influence the call, are On that matching our the some platform. Other in things business. That number across mapping that has global we our improvements last about resulted efficiencies talked in significant platform.

that road city rides, we we how experience improve well driver the ETA building. as utilization as those speeds, as So, drive all match we're at and maps,

we're So, suggestions better tools show to and make drive. building where to when on drivers

see busiest little the so and move said, that naturally across you'll changes to demand a that seasonal forth effects time, season. utilization increases. in and are driving as areas busiest there are the That the And back so, when bit drivers at number,

Operator

Thill line of Our Jefferies. next question from Brent comes of the

Brent Thill

questions on quick could if couple the items then in curious I'm a true-up would the give the Brian, it more line granularity address about QX. insurance given follow-up you costs. just helpful of be significant that. could if in And you raise,

Brian Roberts

Sure.

detailed with guidance, milestone our quarter, are have. we about was a So insurance. the and substantial before sort to with the guidance, details a jump reiterate the in business. we the just follow-up And I'll QX pleased of into our I tremendous let increase I I on performance talk on want reflects start the guidance how momentum of mean and then the

just I'll at the start top.

As previously Rider. we and flat revenue will per sequentially begin anticipate indicated And with growth had Active revenue you know, XX% We up have to drivers, We grow and X revenue Active I'll I per per that revenue in that relatively expect Rider mentioned, X in QX could as Active revenue Rider Active full QX Rider just XXXX. in year-over-year. point now by would to we QX. per accelerate be

our per increase further, will Active basis, these accelerate incorporates adjustments adjustments demand The price both changes the year-over-year cost in we based and again, industry and to adjustments are changes began Rider guidance modest modest, mentioned, trend. these on profitability. of we went on an towards and June This expect that on anticipate the price we these will to elasticities. revenue I cities live and as And we a as path price believe end that that are select routes quarter-over-quarter select prices, but adjust

QX pulled a QX forward the activation, a enjoyed we implied we've of benefit Active rider IPO. related portion maintaining the believe In we and our terms prior first targets our of for Riders, beat. in to publicity are half XXXX QX the We of notwithstanding Active Riders, so from huge

that QX I worth are think and there also it's some unique QX. impacting factors mentioning

the will XX I million described. For QX, roughly demand we some anticipate Active elasticity believe Rider from adjustments Active to We Riders QX. in price will that just headwinds growth modest grow face

For well bikes ridesharing. QX, -- -- in people mentioned to in seasonal snow don't headwinds use the as scooters we'll also previously as like face and scooters

QX, of revenue And will in which expectations. our these outlook XX.X increase for Riders is to XXXX line trends. prior Active the in $XXX and million The be million on we so is range expectations expect XX.X with based million, in

let income and to expenses non-GAAP statement otherwise other that and all everyone first items. select are So unless me and follow that SBC move exclude measures remind indicated,

in half leveraging Now as very successful I we the first environment. this market costs an see improving of year and continue mentioned, were evidence to of

that path will we're we the efficiencies in enable realizing our ridesharing expect scooters, offset our bikes to and investments and the not and us clear, the progress investments making. helping key and be our reducing to we're just are in is It's strategic profitability. make in And We momentum initiatives, momentum the driver strength core business on autonomous including to ridesharing centers.

me the of the half let the through some key a for talking spend just second moment So components of year.

scooters. As we in leverage and I execute QX and and versus key X anticipate in mentioned QX points that on we drive XX%, investments QX in contribution We to as initiatives. QX, up will margin our my improve prepared QX's bikes contribution expect to remarks, QX relative percentage notwithstanding margin return to

respectively, that for X especially QX, and margin guidance. given XX% contribution our decline with QX, In bikes QX The scooters. margin than XX% prior and point XX% is better contribution will trends, to anticipate we seasonal and

flat QX in versus despite like areas making support was scooters. revenue, of and and in bikes the we're investments operations QX XX% Our expense

is a anticipate drive QX approximately percentage Looking prior a percentage and versus ridesharing in forward, This core QX support reduction significantly down we operations XX%. that in with the as than will of to X better both leverage point and revenue QX guidance.

with the of revenue platform, of of as with invest consistent XX% strategic over prior QX We that will R&D we that we as R&D expect new percentage revenue, a in QX, is will increase be future, ramp versus core remainder XX% as and initiatives QX which point XXXX. anticipate we our percentage autonomous hiring, our guidance. X Now up

truly in The sales leverage and we marketing exceptional. QX was drove in

revenue sales as QX of year's there remember, given important is X back-to-school but QX marketing for and guidance drivers this investments in QX, nearly last a to that will For forward the increase half of seasonality points of marketing We season. that XX% percentage QX, XX%. in anticipate attract percentage is the versus realize

could decline revenue point and we versus back percentage guidance. continue we an scale leverage. QX, our prior as to and marketing of expect QX improvement to is This X percentage For XX% as sales drive a

Finally, will well QX to increase a readiness. the new as initiatives we our to QX continue relative G&A to anticipate strategic in and QX as percentage SOX that support of the expense investments revenue we're as for making with

QX guidance this QX represents approximately We QX be versus increase in to guidance. a percentage guidance anticipate to our percentage will point revenue additional anticipate to and more can in prior percentage X we for and point moderate This QX, However, a G&A updated G&A in XXXX. QX prior increase and we of unlock XX% XX%. much our that an than expect beginning expense leverage versus improvement we X point as

to business mean, summarize, the our by the of I encouraged improving market we strength environment. and incredibly are

Our significant provided updated XX the ago. outlook just we guidance increase days versus is a

We are strong while a demonstrating to profitability clear now line driving path top growth.

number parts as So information, a Hopefully, this develop to additional your helpful moving you obviously of Brent, here. you is there are models.

and new to predate insurance for largely just attributable related million There to were to ridesharing adverse adverse historical And related bikes Travelers, think I relationship million development that development. scooters. $XXX auto our components there losses to the insurance third-party touch administrator $XX of our on X claims. your with was and is question,

this far as dates back of Some XXXX. as

our happen. of also being the And of platform. accidents when product we and miles size on claims billions significantly data to to of accidents operational informed and are do the So increasing about of frequency smarter the team to we're how reduce are solutions risk Lyft respond by making changes

we to been accidents in the given our to just quarter than So forward, in the again, terms costs. manage year that will will making percentage repeating, And of foundational ridesharing quarter the safety, the go leverage lower to be of cost remain ability back of the expect in as the it's cost a insurance worth confident investments contribute increase increase reduce to insurance and of we've we contribution third this the revenue XX%. second margin and in

Operator

question next Stephen Our Suisse. from Credit Ju of comes

Stephen Ju

call. particular, up to you in color ridesharing add John, times talking Lyft more you that the increase cases the during business will So Logan, And for general? in and brought several your use I'm about the efforts around

health and given providers adopt schools New I are before. here. heavy but provider? as verticals is to but education in is other and Lyft designated know as a York City, terms one up this of live a a amount now brought focus of of Secondarily, more and we getting lot a there care service enterprises Where market, You investors in

So be of can use the the what to offset? willingness to the doing you talk consumers' may may framework state background you doing and in what market, the be about that service to particular regulatory

John Zimmer

John. Thanks Sure. the question. for This is

including $XX high mentioned, you education So overall Business, and opportunity at a billion. transportation, level first corporate we on travel addressable that at medical nonemergency is least the Lyft think between

include We not are categories. sizes business each our of breaking within relative of out which the Lyft those Business, specifically or aspect

million that fantastic in covers Some participants. allows with Arizona about we've that established we brokers that various for pipeline X.X participants, health highlights the Medicaid industry, those which care us was give provide exclusive deals out a us markets. There to better have a Arizona into of news transportation

those a So categories. momentum of in lot all great there

and We also mentioned the address partnership, market. of will partnership which portions Hilton different that Disney the expanding,

Moving New to York.

earnings thing regulations, driver highest the to policy that the policymakers that's at increasing actually congestion. is X important stated with of the today drivers and negative the on and we create specifically rules both the understand aligned new consequences have goals for believe best level, and they we for lowering actually the they're as goals, written don't do the aspects So are riders. those But that

negative with those And working consequences. the really find so without to we're goals them hard policy

point prices increase a to opportunities because trying decrease can that's there. any to we're lead less across So the work of in get and driver that rides, in

any Actually, a level of new a category. at policymakers context, as really the is our seriously. origin part phenomenal We the was take York to company market, whether Transportation, around overall high Foxx. the other it's or working business. then team to of for create Secretary nothing policy, category, a it New new Anthony adjust And of built We former with

with but will a to And has goals impact on those market. policy that policy overall positive the keep we so working address

Operator

question comes Evercore Benjamin next from Black Our ISI. of

Benjamin Black

about price face you your the excluding Rider how margin do and shaping trends talk in up ridesharing talk the wondering for contribution Active And see you if the you has engagement scooter was secondly, And you how was rest about year. progressing that I increase? the investments, could trended? of going view trends, wondering underlying of I the can bikes How if core base. that across it forward, particularly and

Brian Roberts

Yes.

comment question our we're we bikes stated have of shared large the take but The building ridesharing, again, me we scooters. investments, for network let making first. out and first So core around contribution margin a publicly company, are single-segment

contribution light and is guidance QX, in in making. in the so the QX it raise And margin, XX% XX% investments we're of on

margin very So based strong And there should in core strong as is our well ridesharing. contribution that's as market just the you environment. improving on execution that assume trend

profitable than rides terms driving not growth We're, in our the of that why in engagement, Business Active focused all But QX, that's terms so airport your rides, faster is all we've Riders. growth, premium about think modes most of of it's grow and Lyft that's created important And our share investing that I cost. are why not important. talked question at think rides growth folks I such grew that understand been on as to in rides John valuable again, equally. in and

and year-over-year of year-over-year per again, XX% indicator QX. Active of is the terms of good monetization we really by XX% in that, Active translates, in revenue grew So on trends increase a the this and -- Rider top in how Riders

Operator

of Mahaney comes question next Our Mark RBC. from

Mark Mahaney

I'll ask questions. two

this Active on revenue this Just per again -- on Rider.

second on that. talk had may like rider it et that The is like little the and about to the of looks defeat And a victory. rise? so clearly, that. the just have get snatching jaws some milestone, And here, more you It did time you well activity well of raised a and you most is then a spend that from cetera. was that? doing guidance, your of of the question the you Like person asking So how other prior about per looks the just happened quarter, Can helped you pricing engagement. for part really business

the Just expiration? So lockup why bring around color put some that. up

Brian Roberts

Sure.

to question. the I modes the And me take of share our premium grow terms let in mentioned, been So rides, valuable airport more the those and of have first we rides. as trying

very the on time of efficiency financial Logan mentioned in increasing the global QX We made platform. last on were successful Shared we rides. also the matching And progress

of the as happened in unlocks that at all as adjustments So power quarter. QX. the algorithms benefits to the is finally, before monetization able of that the And increase we're well very of then price the driver improve And in that this efficiency pricing. incentives the end and effectiveness underlying

So U.S. as the do Lyft driving core of I'm we growth the strong S-X, first to medical airport well and is and surveys it use combination in really a go drink in go to the sure up time, QX those et is it too QX -- appointment, products nice see And at think the usage progress to to much more tried discovered that but of is Lyft the U.S. we described, over look rides terms tried rides. easier how think just it's time. to in many cetera. and ridesharing. that on will really I of a percentage a prioritizing as we same or then in growth of in the that industry. see have tend for And valuable you it use they weekend, had just ridesharing as as can what ridesharing, we they have usage to a I one you population our never try Maybe and they've people the go

John Zimmer

you the question? part of other the Can repeat

Mark Mahaney

lockup Why the bring up Yes. expiration?

Brian Roberts

the mean, and was language, time I per the in pulls out just period, lockup the disclosed turned the Yes, the S-X. just agreement period it was during blackout It forward.

Operator

of comes Our from next question John Cowen. Blackledge

John Blackledge

on the the would incentives, persist leverage, marketing, may by in trend in of over position this driver rational term? more And on update and the many in And And there sales competitive the sales and could How second Lyft's to marketing in many longer U.S.? the the expect thoughts end centers. question, how quick there? given you just then decline a are of Just year? you particularly rollout be rider the discuss out your

Brian Roberts

This those of is Brian. both I'll take questions.

was should people to as as the is in a it terms sales this of call, of key takeaways it driver in revenue think at most QX, looking classified marketing, the important I and from percentage you look -- marketing, take sales generally and coupons. of known And incentives are dropped in and XX%. and Nearly as sales XX%. marketing that that if at QX, better one of

marketing QX, and revenue percentage nearly between a you XX%. sales declined If at look QX as and as classified incentives of

and we later And sales this at XX%. by that so for when marketing roughly you our QX, guide look be year, will expect

guidance. Now that's versus an improvement X% -- point prior or our percentage X

the not improved. to focused we expect has environment we're just think trying -- And support coupons. our market win So And this I and on actions that. again, environment brand we're on preference in experience,

we're executing be want just but getting Shifting will to really the driver plan probably formula on the make here. up and the XXXX. early But and to ramp to question your this centers. We we We're sure right. sites. testing, in of to do still second it we're handful in still learning, half We're of period a exact

Operator

from question is Citi. Our from next Michaeli Itay

Itay Michaeli

growth year can with Just the update internally about talk of are of love autonomous you at two in top you partners. terms hear to much an markets? as How newer some firstly well distribution. questions. relative Active I your would vehicle in on Lyft was markets of your this efforts to some just seeing hoping as And regional Rider development second, the

Brian Roberts

Sure. This of Active take is I'll question Rider. the Brian. the part first around

of most are riders. segment in warriors why this it's road don't the making revenue is exactly Lyft both So our say we platform, I on drivers of to Business. city, we're And the will realize and winning we important that's We important that we're really provide at the by but that valuable we -- the look on why focused want investments don't to it's growth.

the really more multimodal Active signal investing we good value provides transportation-as-a-service because our the really a in platform solution. complete of our population. Rider can and And addressable we're per of Active believe market we increase Rider build additionally, a Revenue

our of to in highly terms are how excited execution on those our travelers. we're we addressable really focus profitable expanding terms and really win in market business So trying of

Logan Green

And then Logan. this is

in major initiatives. that the wild terms there's And are strategy. open we platform autonomous vehicles, great now. out One partnerships of of In is a and X AV, live have our couple

excited we're So very area. we it. working the in Phoenix the about the partnership a learning Waymo We're lot really about X about The a call, Bottom from I vehicles that. both live teams that been exciting on are very and excited created, line, and talked earlier have think, the experience. together platform first from closely

also have We Vegas in live year. had That's with for a partnership great. Aptiv, over long-standing Las been a been has which

this years to course, still in the development a of safety We're process. Want the in Aptiv everybody of platform but done car. out. there's we've course, of driver is early is sure the the many the over understands those, both make well It's XX,XXX -- business, future testing Now very vehicle of a long Vegas. And rides in on it's, game. autonomous

able first Palo We'll platforms. do think of vehicles. ridesharing of fulfilled only driver. Alto. Lyft generation they're us, unique to that and will rolled critical a what aren't X on autonomous about that an Level as by trips, small platform can able driverless really out be Lyft on we vehicles is has to so in by first be to such are be These vehicle then of And be One, out center twofold. rides rest is that roll it back will autonomous engineering a opportunity down a And our served the percentage the a the

So that us advantage. gives we significant think a

exciting is into system. Lyft vehicles the our some from from the really of data own autonomous on on miles feeding cameras all second platform. tests We're data that, launching And using traveled some collected using that and of training the the Lyft

the market, the given position all we really think the play we advantage. collect can we in, that in So our can to data sit

Operator

question comes Our Eric UBS. next of from Sheridan

Eric Sheridan

can. if I questions, Maybe two

you're you've more and in of the handful a bit do might transportation understand you've that some consumer from in highlighted what behavior the to doing innovation product the what more given better choices, Wanted choice app to of consumer a stimulate as seen usage. little markets. You the

of Smart And spend the a product of sort incremental anecdotally, a users? as widely the platform be? become and and it you versus How demand to drive might widely once elasticity they're what Plan. incremental in to XX% people I'm see Savings what subscriber that do getting that they And how your in but off to does terms deployed of deployed is

Logan Green

That's Thanks. This great Yes. is a Logan. question.

of First incremental and see we of new activity. is we see a We lot of lot add little very a transportation. cannibalism as see modes incremental activity across modes, we

being want And to trade So adding mind strategic of the first off modes that's by people from different it them I is open lot often. very, a top more may app very and a think that the Lyft against, brings into app position. being important

to run, incredible subscribe On maybe subscriptions, view We we've package. you the role where analogy certain And a the across the future. of of in companies even unlimited use minutes a the think in an the an we experiments of country. of wireless play or long the sort of lot often it hundreds moving bundle will launched market We subscriptions. to

then That And into All-Access that when the of there's broadly. for of as couple you across different XX% say frequency That's users unlimited gone other month our a the off we've was lot as I a cohorts. each would that a package. Savings different terms package to user. And all a of one. Plan caters rides. type sort of pass. to variability more is our rolled Smart A we've close out One little the is $XX.XX in dig

we subscription so and of value particular provide cohort. not a activity see packages we cohort there's a these great get But that from of one-size-fits-all to them, some when that incremental hit And do kind plan.

we're So and initiatives testing rolling to new space. going in optimistic it, continue out about and we're that

Operator

next question of KeyBanc. from Our Hargreaves comes Andy

Andrew Hargreaves

room can standpoint, volume I'm the from growth you I had more and of being comment on be that sort there. how efficiency up. what just volume mentioned controversy, of it sort wanted now. just of questions where we you on a the of to driver philosophy and your could on then if on couple from pay, of all impact area evolving One, guess, sort further so lot you've a of you ABX pay, And but all are ask I'm of driver -- for driver an if guys driver right sort guys the also side. is But it's wondering there's the incentive CA a efficiency with I wondering obviously

John Zimmer

is good. of I'll John. most Sounds that. This take

years. the And a last in up the if overall, up increased investments So platform. and for side, X% the driver look of to the signing remarks, More driver interest on back demand continue are we even, prepared continued ton you the seeing make to earnings support said X year-over-year. experience are on drive to we in our the as

working think affect worker broader protections our an have ABX that while we is on create model ridesharing -- has California as certainly I platforms, a for society issues also millions societal people there's new provides and believe, of opportunity, I providing and one industry to that flexibility.

lawmakers. and labor So business care an opportunity beginning and drivers continue I has as to part take care do philosophy drivers, good been been that of from more for the business. for we always conversations policy And are deep our the for when in you with of has various us passengers, that's said, groups a big drivers. to of take And our and

improve. wanted because to the facts there's That's But important. So think of we facts earnings. to always lot are opportunity share we a coverage why there's driver about the

the people, serving that people, very that's needs we're thousands on and of thing when millions improvement small important. Now, any affects platform of

Brian Roberts

Brian. is this And

on me some in driver trends of the incentives. comment Let

As incentives in QX classified year as well contra that the ago versus revenue declined a revenue, QX percentage as are as of period.

this to so of isolation rides to high-demand take in to economics the opportunity encourage at analyzing avoid investors going periods. doing because incentives I'm However, absolute driver ignores

try of periods terms the in So valuable most driver strategy, when to are to incentives platform. on rides our we limit

time commission drivers a generally typically or a rider from and of prices. as pays earn So demand, times, between driver service during also and Lyft based to the the bonuses earns ride. our calculated incentives, higher when And higher is which lead can what distance is can peak difference benefiting rider on fee and what

subtracting to a is value of incentives, net of payments. really calculate revenue driver calculated is after rides which So clean revenue, contra the metric

Operator

will be question of JMP Securities. Ron final Our from Josey

Ronald Josey

maybe X expanding so offer to the or the quarter. we about And you're curious scooter similar your I on to given Just insurance up frame expanding details want what follow on or other about Eric's so thinking just how multimodal question usage, on And or there. GEICO benefits. more the then bikeshare markets time any heard earlier willing just just markets? on partners program? are and And partnership, a Great XX on thoughts

John Zimmer

bikes you. on expansion our growing This We're with Thank scooters part to this of very plan for and is say the that going to John. we're happy comment specific business. except not

incredibly We infrastructure, infrastructure metro scale the you're will when areas on important. is see are focused rides the areas, we largest because most do that building that the physical think especially,

as of for broader passenger, transit, see, transportation actually the a are more talked bikes -- And Lyft XX% is to ecosystem, using business way about, create are that what stat and which more more that think use our they exciting One are is for to is I and is both new we that scooters new that acquisition. -- users and that new new and scooters. needs Logan we and exciting that rider get about and that new Lyft people their they have then is find bikes rideshare scooters, then around an bikes us as

and overall, ownership goes car with people our that's from that So into away think overall of getting something transportation-as-a-service. we mission

Logan Green

right. All

for Lyft, Thanks today. was much. again forward soon. look for thanks a and So all us It joining we you milestone so quarter to seeing

John Zimmer

you. Thank

Brian Roberts

you. Thank

Operator

gentlemen, and a for our and Thank your Ladies program. participation that does you conclude wonderful day. have

time. your lines You this may disconnect at

Lyft (LYFT) 7 Aug 192019 Q2 Earnings call transcript