LYFT - Earnings call transcript Q2 2020

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Operator

Good afternoon, and welcome to the Lyft Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode to prevent any background noise. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Shawn Woodhull, Head of Investor Relations.

begin. may You

Shawn Woodhull

afternoon, for Good is to Lyft the Woodhull, Thank quarter and ended call Relations. the of This June earnings Head you. Investor welcome XX, Shawn XXXX.

be in recording are statements I’d me during share as our and Co-Founder the relating and Joining we will John expected Chief a shortly ended. and like location strategy, a factors of Form XXXX during Roberts. Form those from by and implied This risk XX our impact current then key economy. XXXX, projected an to Officer, the in action of Zimmer; regarding will review and our same known discuss in and be an well materially California, of making John XX, to Lyft’s COVID-XX take statements will and litigation, as the will will in and results and for President, well included or be and statements call, uncertainties actual the second initiatives, Logan give with as for conference the business, X, ballot and markets the Green; people forward-looking XX-Q risks our to future the today and particular, at CEO, the issued XX, this state results be motion future unknown that that outlook. the overall matters Monday, as to Co-Founder our those litigation quarter XXXX, are and and will differ prospects, Brian call. this long-term quarter Proposition to and August Logan performance the risks Financial you including on of results May the update uncertainty These guidance, pandemic, has financial by well a Brian on as outcome Relations granting some after results this of and the the Investor In regarding XX-Q call our unpredictability business for injunction opportunity QX filed business, by commentary initiative. preliminary subject to investor.lyft.com, associated our our available that growth including first statements expected could of August as website of cause decision available described call remind XXXX our at on

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

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

Logan Green

today. thank Thanks call Shawn. for our and Good afternoon, everyone, joining you

how as and effects as difficult for months The serve. economy, the for communities have our our the review riders, and past I COVID-XX have two drivers been quarter want our second own well we society for Before been results, business. acknowledge to of severe we

address persistent Black the As Americans to a country, overdue long that we face. a call received to also injustices action

part more efforts speak be up of we more there's do can our discuss We will and this but recognize to detail, in to on the we solution.

my focus our remarks I'll efforts our as to to to to path path recovery on accelerate as quarter, to-date accelerate profitability. the Turning our our well second

business. in the Let's seeing with we're recovery start our

operating QX challenging reflect Our results environment. the

While encouraging X% was the XX% significant observed riders are ridesharing been we was Revenue quarter, how recovery This North as in the rides. reduce April. time, second our rider, which lives seeing was progress. we rides also more business driven a is by quarter down rides rideshare trough This a despite in Even fiscal and revenue their of At rideshare resilient. Trends our in week overall. active year-over-year, travel for primarily reflecting have other they and in ride line, challenging the restrictions has frequency in within decline decline relatively recovered a not straight down in orders Lyft. our shelter-in-place just rideshare same across riders meaningfully America are second year-over-year use extremely the was reflected making active in though the second were changes per down from environment. reflect in the significantly

an late while remained year-over-year, what we QX, percentage during fell significantly to been saw airport rides essential XXX% down of turn rides And would traditionally the in airport by April in increasingly taken rides we riders have weekly June. over times between in to grew complete as trough trips. off-peak in the example, April increase significantly ridesharing and For and

remarkable transportation. increased bike saw prior diversified year-over-year. operations both our engagement QX. Bike our While strong helps share bikes platform to that demonstrates and tremendous from periods, still very revenue rideshare is are our in approach This value performance to quarter-over-quarter and adding the validate down significantly we in

Let seen to all XX% we of the in recent QX. headlines negative were Rideshare April. me turn greater July. even XX% of June since rides and the trend trends in despite COVID, And we've growth seen. that regarding end the saw demand July month, evidence from a than in to We this have rebound QX last now further in saw

eight on wait evolving than Over we through utilization. depend of a we've progresses, elaborate on. strategically supply, a part sides to will driver team, in More and an and order In led provide utilization driver certainly of our the John low years tools, existing over last protect although ability and to navigating to that earnings we start launched is on platform, a period our the to essential to April, that founded anticipate for in culture, new have in core right changes of and been built our And Lyft As the has created thoughtfully recovery since pandemic the any drivers our adapt will of our company environment. performance our additional imbalance experience marketplace. processes are the adapt to and for of drivers unprecedented, both introduced time, decade. relative near success changes was March current adversity demand which we industry, and the which us other help list managing fully rider deliveries, we primary leveraging challenge opportunities, and to decline In which in the marketplace.

few most was last the seen observed reverse. months, industry cities. the across to began the Over we've Rider outpace available drivers. in demand dynamic this This supply of

features we're to innovate these utilization doing markets. are John program. come at products driver or our our focusing significant back we're circumstances, earnings more platform, significant encourage the we also to Accordingly, safety on riders our nearly will capture front, Given can making, above on now continue health potential. and in we to on launch resources pre-COVID growth so progress doing all while and and to levels the on share this full work details new will our some drivers on including that reengaging we're of

to our turbulence, we're focus ahead, thanks our sheet, of recovery. to and which to we May expect there But the along balance be prepared notes. withstand robust our bumps Looking in leverage we will natural management in this senior through convertible our reinforced business, the road operating issuance first cost

share updated profitability. John, view, on over I want call the our to an handing to Before to path

unit profitability as to achieve rides, with improve announced We actions cannot this was the timing as now what we target disclosed, we make fewer results, to previously more initially While we're XX% few progress, continuing recovery projects discuss plans, Brian detail, ago last expect progress XX% top our when months cost on well on of strengthen the can will outlined our we to in EBITDA reduction assumed executing position. a we're adjusted to but we our in control financial our than economics. this year. line the

the what we've as milestone, can't there timing recovery the recovery, we predict required fourth well are levers of the XXXX. us by the hit in that to-date, of perfectly this levels ride to for as on terms reduced and quarter multiple based that While observed allow break even, to believe should of scenarios we us

about it I'll support to our Now, John, important riders we're the over to communities. and to turn talk drivers, doing work

John Zimmer

Logan. Thanks,

best ever, users' than more with mission lives health and transportation delivering on world's people's to with safety. Now improve the begins our

in work platform. know and factors to routines on COVID, focus their and protect action with that taking to most March, reopen continue riders stability help impacted the platform. our the of We meaningful health is cities that We're people earnings started our our on driver's on important we As and are adapt two it considerations critical engagement we that drivers both.

our in which Lyft. program, driving requirements, safety health safety, First, announced May, health for new and we with established riding

July, self-certify throughout part In will and We recommendations. with further of both with wear across local follow bolstered symptoms and and the COVID-XX. partitions launch of have their products and this drivers must sanitizing As CDC line drivers they guidelines, vehicle in we of designed XXX,XXX in our engineers, over support this our that health will facemasks, related by COVID-XX riders Lyft of distributed to ride, program, now CDC in-house program free country. These partitions. masks, were safety to the program,

to wide of and partitions and assembled the vehicle be makes easily shipped, a models. installed, designed team Our across range

drivers York nine Seattle of So Dallas, Phoenix, thousands partitions D.C. Baltimore, far, across made have markets, Denver, Washington, for free, including Boston, New Atlanta, to and available City, we

next regions drivers. free XX,XXX program over Over to plan to months, coming we partitions, XX expand and this to the provide

the vehicle scale as can our ability out at partitions Flexdrive acquisition of by partitions roll Our we within is Flexdrive, to install scale, enhanced, fleet. at

Now call, earnings, let we with have incremental continued which time. me drivers about doing deliveries we're expand talk last this protect our to to support drivers' essential connects program, and Since our earn. opportunities to during what

in on removing basis. days, we've to we early grow drivers still markets drivers, are been far the taking months, PPE. conditions, wait rider and it's and few steps demand includes pleased partitions continue With new for to so This very all last in providing the with, almost supply with results program. market-by-market a lists and increases improve gradual in While the

drivers result demand in increased and above now on incentives, have at/or in over platform nearly a pre-COVID levels corresponding hourly earnings increases all Lyft quarter of and the markets. are As rider driver higher average the

new historic and the driver including We flexible accident importance ballot the while Proposition California, In on insurance benefits drivers. coverage, initiative towards independence guaranteed protections, of remain to would and protecting also and and healthcare occupational unique flexibility, available focused providing protect XX supporting value work earnings. minimum we're contributions

We the working classification California. through of on litigation issue are simultaneously driver in

the California. request discussed by our the to which further Uber we August as the employees California. California to against Uber and classification. to not May in California would in force and disclosures, reclassify stayed are preliminary this force operations injunction in may stay. a On motion filed suspend Court of been of If until here in filed 'XX, we've and That As appeal lawsuit efforts successful, regarding drivers it SEC state us injunction a Monday, has ruling Lyft driver Lyft granted prior and state, would Superior

become want November. Drivers heard in voters voting California being platforms, Prop remain shown Uber and regions have to have their independent a of drivers if to lose make drivers by contractors state XX% X:X of by that to to voices California employees. access entire were margin. can XX% in yes Fortunately, they over would XX said employees on studies forced Lyft Economic the

for will to We fight drivers' continue independence.

yield forecasts as currently also our on outcome. Still, efforts Even and to our know, provide assurances demand cannot I'd you to share recovery. coupons to the continue the will the to best favorable injunction has on offerings the we timing And new assumption on platform plans like based Our all-time that update ultimate challenge and results. are lows, with rider near rider the continued side improve. support demand marketplace. of platform build on believe on that we our offerings we an

customers, with these challenges solving guests, how Pass, We the allows wrestle which around COVID, cover of businesses employees, for the organizations Lyft in can country the to of play rides; an role cost more. to effects Lyft adapt organizations. and recently transportation important to launched As patients for

Lyft back as privileges these offerings car that removes U.S., late has Recent have renters weekend customers portfolio For our Bay has including have Lyft entire address end, Lyft area global and Lyft in per to their aggregators, your new complement and in leader exact points the the before to We're many car access businesses historically create directly getaways, and top from we're the of choice integrated expedited shelter recently to premium vehicles including cars our to partner to weeks. car to Sixt transportation car integrating expanding the and outstanding built on vertically normal to this you to with vehicle upsells and suite Long Los strong the at full on their in interest pre-COVID rentals car flow riders the the reimagining so experience. and ahead with keys Lyft the service expected. announced the to in the navigate rentals, and a expand levels last this the experience initial skip lines rental riders many during year that who be to further focus our faced. and go out credit or our the Sixt ride delivering and not exact is special getting pain the Having we rentals and of existing approach Lyft improvements consumer of insurance rental program that will counter, brands known ride like a full transportation. is help been car access an their and and systems build industry traditional order been program employees pick trips from of get organizations, solutions With helps to car before rental ability place integrated the counter. the flexibility. Rentals, you model Sixt, back to pickup Angles our work experience, getting to the COVID-XX rent needs, for able recent Lyft to excited also indicate presence with customer get partnership in mandates. Lyft have safety, rental perks time. on Lyft that lot, the consumer convenience We've trends experience. markets app, launched renewed a service We a rental revenue pack into credit in unlike third-party the choose In make seamless reservation made

rolling will few Sixt and nationwide. eventually with become Our is next partnership available out over the months

of June mentioned earlier, in one bright Logan month as and bikeshare. rider rides the for in now affordable, beginning new increased open bike spot the of was out riders bikes year-over-year. activations seek QX of particularly volumes April bike Additionally, transportation. levels and the Weekly above pre-COVID efficient this as end over XXX% mode from June, of are were XX% Ride up air to

We market, in given operate exclusive are bikeshare in positioned, extremely the leadership bikeshare U.S. in right to well our some the the largest cities including of our

Bay year in Minneapolis new And launched we have excited e-bike later and to the Chicago of York expanding now which Francisco San over are Citi markets Riders with D.C., as New we're with Columbus. e-bike Washington, this Since X available Area, in as We Bay our well by to with X year. ago our this bring availability roughly more area are continuing Wheels, Bike, bikes into million e-bikes, lean these taken trips. Divi the to popular

for is environmental, these and must hand equity, more and order social I commitment gallons vehicles, to at gasoline execute of exciting access transportation, XXX% the to by drivers sustainability. of tons Lyft of This over on which billion wide our including electric of in our I work Before and to our with tens electric vehicles X An we of reduce first working next By on recent things a the the all decade. by stakeholders. issues, and reach emissions gas to published deliver In Brian, areas greenhouse report, July. we the example platform over to economic drives our metric mobility avoid to potential we highlight consumption wanted range XXXX. have millions Lyft's to governance of than mission, to end annual transition work corporate

that for and being drivers will fleet environment electric to society, fully the right save allow money. a addition In help expect us thing the to we

to is deeply strategy commitment Lyft. at this into integrated our issue Our and and clearly decision-making

driving business are Lyft toward our choice. riding obvious We future, with a sustainable where is the

report with Brian to to of is look ESG annual forward it QX share through outlook. industry, I'll Our progress With over now first results report. our the We continuing proud hand for to we and are this updates and you making. review we're to our that, the

Brian Roberts

afternoon, good and John, everyone. Thanks,

me I and our specifics QX Let share regarding into performance perspectives, outlook. before few a get

the in to our EBITDA revenue of I'm minimizing QX. Given related our COVID, significant proud in success, decline loss extremely adjusted

resulted long-term. and meaningful close actions also lows. line as helped profitable which communicated. to monthly significant pleased level publicly The strong growth well from reductions, be stronger this we positioned to have with to the with April cost execution. revenue I us in well trend, of recovery, costs ride this and decisive QX combination We Lyft's improving month-over-month the company sequential also top more I'm in broad the below attribute the our to along as our reduce loss

this will manage if June, and June. when million, early our to we share EBITDA EBITDA June increased QX from our that said more to in our EBITDA May I of than every revenue million. decline loss million, dollar less by loss volumes, if $XXX put and QX could adjusted $XXX we volumes $X.XX, manage $XX we QX, the but will outlook demonstrate we it perspective, for ride $XXX recall, held at resilient could updated our how June which improvement in loss adjusted In announced specifics model persisted QX update. April helps came our adjusted versus As our we business to in QX, you ride under early of shortly, To loss under million May an indicated is.

similar crisis savings bright light on Finally, three catalyst as to to every line a continue this efficiencies. we ago, to perspective a treat to shine and months incremental expense our drive

However, that in growth continuing will we long-term we returns. be invest expect are shareholder clear, initiatives let very and to attractive drive me

was noting to Let It's per ago in year-over-year, increased our declined on quarter turn versus from the decline given achieved positive revenue QX this that me decrease results. business rides. impact significant worth the share bike of year our our than XX% benefited now growth. XX.X% ride COVID ridesharing Revenue marketplace. the second ride less period revenue and year-over-year revenue

frequency. a million. As by Active extremely decline per the is public. QX in encouraging our in rider only ride from challenging in we Revenue put rides the decreased in To rideshare the Logan Active environment, it riders, both which ride ago greater driven $XX.XX, X.X resilience primarily rider the went Active decline reflecting period year-over-year $X.X mentioned, this revenue QX quarter improved in was was was X% down perspective, revenue of to in per XXXX, XX% year QX in and per despite than

less XX% furnished revenue, a includes reduction, This expenses margin our adjusted Many which defined found from this we've cost periods. in restructuring of regulatory QX today with historical workforce ago to Now, exclude indicated, compensation we down compensation-related are adjusted assets, non-GAAP caused the as April. announced and before is our amortization and of both changes on of other year and and the contribution was the was and note decline insurance may our follow income Relations to intangible with items. want Investor reconciliation majority In historical non-GAAP contribution I that restructuring filed filings. quarter. which select same exclude for release, results stock-based by exclude the call Both discussed, and otherwise liabilities and that statement QX, also last EBITDA of X-K XX%, unless measures to million stock-based previously attributable adjusted contribution, unique. in on, all move website The charges to Form SEC. the I GAAP earnings of were SEC on available to to A revenue factors that be and that contribution XX% in required to relates the period these are in $XXX agencies charges was is

margin were rides in contribution evidenced, As September. increase points if expect levels XX at we to will and August QX percentage remain July

in cost The margin certain reflects Now, in let as revenue walk such to lower the effect, expense sequential and fixed fully in beginning of place based the of Separately, in greater mileage, personnel QX, decline ride. allocated led is insurance driver depreciation. we in while included variable cost per decline through revenue, nature virtually expense idle me took on margin. depreciation which of miles shelter Remember, QX. conjunction significant is at in experienced utilization, costs the contribution orders contribution as with expenses and insurance more included

that current the utilization Given driver of insurance per cost trends, in QX expect we lower be QX. than ride will

hosting by a margin to headwind reserved AWS QX, limited adjust is Finally, quickly costs our in hosting were of instances. ability as usage contribution also our costs to our

reminder, a QX of regulatory historical insurance for changes contribution by experienced to to million We as the in attributable liabilities $XX agencies Now historical required periods. claims. development related adverse to excludes

restructuring costs our contribution. Finally, of excluded from $X.X million related is to

of increased expense period QX and support XXX within cost as XX% a support, and a operating in expense quarter-over-quarter, costs restructuring. for management same XX% and QX revenue percentage support operations ago, as reflects million, fixed of down recent certain expense a with low from and reached impact our and percentage decline revenue the was of an basis and R&D marketing significant expenses. of to XX%. year-over-year improved facilities. down $XXX was Sales all-time the as such reflecting quarter-over-quarter. year million, down points $XX a move Operations Operations Let's XX% revenue which

down revenue. improved $XX quarter-over-quarter. million and was or rider in QX notable $XXX XX% million $XXX QX, management absolutes, year-over-year classified between and cost QX million and QX XX% million, million G&A to from legal $XX sales settlements A our In in XX% sales key roughly and only a is increase in decline expense terms G&A declined of and just discipline was XX% as offset Total sequential than driver down to on QX. incentives. our million costs down to expense sales leverage The $XXX of related in QX. between as marketing marketing X.X% $X and from incentives more marketing was

payroll discussed As our settlements half call, postponement of were unrestricted million, was XX. quarter, in we our investments, which related billion to million of and QX and for in $XXX the related tax on less of $XX $XXX approximately cash, was hearings. over quarter We lower-than-expected short-term was million, $XX legal preserving of the accruals mediations quarter ended we March cash of than benefit expense increase reduction. from to focus an Stock-based due equivalents and with included a approximately which $X.X CapEx compensation first and the net our million outlook as cash. workforce the

use as and from Our convertible million call the $XX as debt ending related issuance that approximately the April. innovation corresponding of disclosed net million insurance cash transactions, cash transaction we proceeds in closed cap the $XXX balance reflects our of well previously both to

to track We earnings fixed we outlook. on outlined basis on this now achieve remain $XXX me year. million savings an by last call, cost on Let QX of turn the that our our annualized to

in made savings. $XXX million can million, progress call, call, we plan. on Since we million. We our from of we cash additional now that On In CapEx CapEx the beat important to reduction our of of the our $XXX are CapEx reducing expect our million roughly resulting our addition, $XX full XXXX last to to underlying outlined original $XXX goal an tracking across initiatives we've unit to company improve year also plan economics. lower QX

on information the at the the will the to-date IPO. But of upside, time in there our suggests more we year. to We is share target, that outlined first progress margin initiatives, later these long-term

We mentioned. adjusted will EBITDA as back rides, now profitability fewer I with come we to this. also can believe, achieve Logan

of contain it us of given the any with recommendations orders predict, In terms care spread for the third near-term and certainty, is to COVID-XX, quarter. with our for fluidity, the outlook, impossible results our health government to associated

to similar on with quarter, an loss, such, EBITDA estimate we adjusted As the are volumes. ride of based providing second investors July

describe April, July point, the was down, for but rides April since ending was platform. As the remained me down, down, May reached year-over-year. June was XX%, Xth comps let a down was XX%. a ride week down, starting new our XX%. XX%. on August XX%. Rideshare high rideshare

ride stronger evaluating when month, year-over-year these July that trends. much back mind August keep in contributing is a in comps Now, was than which to XXXX,

vote Uber, support of months. the Alongside, and drivers in to will as the continue Prop XX winning XX initiative. thousands policy-related John In $XX by approximately policy organizations, ballot on of investment large, key Before including a I of leading want spend, increase other million in Prop and given the to $XX that million, well campaign the be Instacart of as be the coalition our QX increasing policy-related coalition coming community I policy a on spend in XXXX, California, yes quarterly results, versus year. partners, beginning discuss the of DoorDash tens of as the of third in quarter everyone focused at our share was as cash. to of of QX, in initiatives by majority QX incremental mentioned it we relates so well timing in are states. which important loss, spend, first remind Most use back with Lyft, this the will recorded California, expenditures, A as our described, will of we not pre-funded very

would to million, $XXX in incremental large adjusted be would be loss, investing remain But QX million, are weren't QX. QX September, if purposes, And improvement EBITDA. Now, to investing reflected rides one and expect an would EBITDA and QX our spend, a were XX% will August our this policy spend. adjusted relative expect policy in in for EBITDA $XX at adjusted we we increase quarter September, comparison in this we July we levels,

So spike, we July inclusive this rides manage the of expect if a levels. spike, remain to $XXX rideshare business at to

in levels. change year-over-year we rides, the invest for to guidance providing service rideshare revenue more improve While will not do is QX, the expect track growth we company as closely

Let's now discuss milestone. beyond QX. important move an And

expect EBITDA we achieve QX of We by XXXX. adjusted can profitability, that

to While multiple milestone. to this require rides see achieve and this does continue recover, scenarios we to levers,

October reduce given As increase was adjusted with we XXXX. to XX% than that fewer a actions profitability QX improvement further announced, Logan achieve to back target, what rides, EBITDA when quarter. XX% costs unit XXXX indicated, our from is we required, and to are This now the XX% our economics, first last in put positioned out we to of XX%

quarterly we platform profitability, to now of context, rides above XXXX. the reach QX XX% can rideshare For our, on expect achieved approximately we when adjusted achieve X% level EBITDA in

while by operations So and for time, impacted should this milestone COVID-XX our us that QX expect some that will are next again scenarios year. believe by there to multiple of be allow we hit we levers

Our self-fund adjusted strength to focused of on to profitability growth EBITDA allow leadership our team future achieving our and the model. is business demonstrate

fact, will expect margins. we that in In long-term lead terms of industry we our

and and matters, focus, we critical have to both footprint. importance of yes, business scale While model what's is scale, understand geographic the

well include American we will margins our for that look forward, the of a the us geographies. expect exceed pure-play conglomerate network businesses and lower-margin that transportation focus North positions rebound. We as models Also,

from revenue we transportation growth tailwinds will year-over-year strong focus. Lyft's business enjoyed We our sole given have favorable portion in No expect organic of XXXX, COVID.

expected So well as in a positioned the Lyft is pure-play recovery.

priority the also operating and the availability we in company footprint. profitable vaccines long initiatives stronger and expect test, of sooner and the decisions challenging aimed more economic was may and faced the the of In in to long-term be progress faster In operate in quarter in will believe limit solely margin environment resilience to an access and able U.S. and to nearly the essential able accelerated We treatments therapeutics. rebound were platform facilitate the terms Canada, limit a the model wider making we in gaining help is direct and our and were in improve profile, thanks while on government term. $XX and broader reach at we geographic to our our plays impact closing, the U.S. team's second of to made critical vaccines to that operating select transportation. key profitability the we role our of downturn, the drive execution, We're and business the directing focus, COVID we our position billion our to volumes of QX

with and strategic to the strength Finally, investments, unrestricted achieve billion objectives. have cash, of equivalents our cash we financial short-term runway $X.X and

that, with me turn Logan. it So to back let

Logan Green

Brian. Thanks,

second by was for we're fronts. the their driver quarter extremely business shareholders stronger to for in our to on other team the that We're the rider work date, encouraged on and necessary community, business many we're challenging our the for dedication. recovery emerge and and on confident continued critical partners, The We're support side. members grateful taking and

strengthen facing we're as that company. will won't headwinds moment overnight, we'll temporary the disappear While back a defining look we the this on they prove believe and

we long-term ahead navigate So on capturing while enormous opportunity our of this crisis, focused team us. remains leadership

positioned bikes, that We continue more scooters, platform. pure-play shareholders. to the single choice to the networks a people believe car rentals, believe We're ever that company to be North all only of onto than and better has for riders to transportation drivers, ever will And networks pandemic. value outstanding transportation Lyft that rideshare, deliver on like America platform integrated and in we're transit rely post than we

Before injustice an in few point have the I many past want us, before. we created inflection Black unlike for of ever America. questions, acknowledge anything we months seen Recent acts have to that against been have take Americans of

support our we to become the to guided to communities a seek by and company we lead where been empowered our serve. allies have feels As actions commitment our do the team true same, long-standing

to fulfilling eliminate the And across take best is now within transportation to questions. ready inclusion ensuring five to that powerful communities. help starts doubled and providing to our Black to part around on barrier partner to promotion. mission access of for and starts be million in with country My our work a accessible a network especially of upward an Our mobility we'll scooter essential the important to roughly world's Alongside internal organizations to and regards with black Where Alliance, that, services work X.X National we're and rides down power and there, access our Keeper the and as From own Urban hiring access years. the harnessing This League communities free efforts to the over Brothers of is transportation to we've car, by including next we're walls. discounted all. bike our diversity, platform enable partners, resources NAACP, within

Operator

Black first comes Benjamin Our line ISI. Instruction] [Operator of question the from of Evercore

question please. Your

Benjamin Black

thank the question. the for profitability. for timeline thanks you And Hey, to update on the

get shining million on think help gave levers know I an mentioned the we also the give the on then that us an fourth all would you you think update quarter when the you we you will you us costs, should update get I full profitability several there? reduction. million one us $XXX of could when XXXX. of several benefit -- understand a And maybe in -- light I costs. you on you on should see us which see cost But Could scenarios

do So still are Thank wood we chop? now? to have Or done with you you. more the rationalization

Brian Roberts

is Brian. This Ben. Thanks, Sure.

because the So it's for again think model. just growth. And investors repeat strength self-funding just our to that catalyst is so important I let just breakeven us really it's the demonstrate why important to us me to of start us to for future

we this So to are target. committed

mentioned, we that As to give milestone. are does confidence this reach require ride factors in ability There recovery. our us several it

our costs this success point First, reduction rides unit in leading reducing generate improving terms as it's profitability. and a you number And to achieve the is out, to economics. need to of in we of

with and date XX% now first between we quarter mentioned, rights to the across second to percentage are levers To points. to We X% achieve X%. improvement XX% to the progress the scenarios now, try as can committed milestone. is to are we Basically, of specific we on which required back and achieve so profitability your based is go P&L. And to this reduction, the an question, and X refer this or

So as execute well. goal well both on to help levers top that this bottom affect line as line as

the the you have make success. difficult once you terms decisions. costs our success of In out those hard really in decisions, of really, fixed cost, fixed business But requires cutting of very high probability

for And to plan the as forget, last million I And question? against do the $XXX run was expect original of what said achieve call, your the this savings QX, so on rate and year. we we our is by full

Benjamin Black

that on business. right sign life a -- using a You the signing a to you're in mentioned all pandemic costs

was I cost you rationalizations have more wondering savings the more on are front that if there. So some so there any Thank you.

Brian Roberts

Yes.

in energy So very higher unit the the company we've we're and that as I incremental taken we've spending economics. -- good feel mentioned, time terms driving costs across fixed out. of But we

projects of it's terms we both help in as more rides have and revenue increase reduce to revenue And a costs. number just initiatives so that what is and means, that as of per initiatives this us And driving more so well then ride.

incremental and creating improvements, can transaction our our computing So, believe structural in costs. in model that or funding believe reduce Again, lasting success this mentioned our margins we forward insurance safety these given reductions of excess discussed on the the the executing to IPO. the processing, we unit one the to unlocking increasing the at we in our the and long-term projects to everything fixed we base we we're that time on our reduce on on efficiencies, business. that improvements is from on remarks, these savings things long on initiatives driving prepared economics, now now success -- generate of improve cost of in And our

in that. we'll on So, year be planning investors to early next update

Benjamin Black

you. Thank Great.

Logan Green

Sure.

Operator

Thank you.

from comes Our Doug next JPMorgan. question of Anmuth

please. question Your

Doug Anmuth

two. for the taking Thanks Great. I questions. have

about extended-stay John, the if XXth. operations suspending on California, don't talked in you First, August you get potentially

big hoping is Brian, the opportunity that And Curious there remind of on just potential could could revenue? October. curious certain XX% a that Is you California that transfer can along you this you adjust your planning temporary further risk as risk you would us talk to could to COVID October? understand help rides And the insurance, impact does just in far as to year. how went and is percentage adjust this know along insurance I the then, markets how about how Just And model or where service and levels? go work? you to maybe shift path. us if Thanks. just about last move how later

John Zimmer

Thanks John. Doug. This is

the with a environment, is injunction injunction not in drivers many which Lyft to if longer question, in operations state would case, would to self-employed And of as add times. of first impossible. forced the granted, court, normal outside suspend go in of the switch, California. to California. August at then comply we'd reclassifying a jobs need that model a and XXst And we would the on rideshare full-time not in to effect such would the pandemic the into be So, in that majority flip for the to explained and on trial work of remind significant schedules of platform them everyone business a be be as have the thing Lyft cannot its to thousands would forces we platform on tens challenge One nearly the injunction transform of preliminary current drivers constraints the the Lyft is

as to timing, it's So, mentioned. you difficult predict

we later -- and be at be are would of time. XX Crop need in on is focus a Our to confident outside forward. that moving that Anything assessed

business makes within rides. XX% total up around the of currently California, of terms impact In California

So there. that should address your question

Brian Roberts

Brian. is this And

say weakest our terms on West of just little of is let a in So, rebound. would the I more give me one California. color Coast regions

over you look of month-to-date California in year-over-year, So, total percentage of at a XX% August, as rides. John if the rides mentioned, points full five total down percentage as was out

were in XX% notwithstanding week, of recent Jose. most and in July, terms the San In in were country both down data Francisco down rides the points, Francisco, San Diego, XX% San San the parts rideshare of XX% in specific year-over-year. And recovery and in other in Jose XX% San

your so year of as part second September are around insurance the it transfer, of as terms on a risk relates question we recall, fiscal policies. you In to

related six regards September the next which to we transferred a day primary ends here, actually in states X majority auto. to RFP policy And right live October our our XX, with which for year, this of QX. for current risk now begins first in policy so of a We're

there's us, key from risk. For transferring benefits two

live RFP in First, insurance right between night second, at The our because reduces it us is now. and And partners. our sleep helps me aligns financials. it incentives volatility

So, amongst been has us can factors I by progress the that can market. business the I to to-date important for to received policy well too we're by is but year. auto have upcoming And leading super details insurers share, it demand that the because safety don't pricing. this I many into say initiatives pleased And on our our

negotiations awarded, October on So that we upcoming the has option continuing. for expect X. would risk begin are but to additional been the that have Nothing policy transfer we will

Doug Anmuth

you, Thank bet. you

Operator

Our Ju of comes Suisse. Credit question next from Stephen

open. line Your is

Stephen Ju

Thank much. you very

the on this you next the John, next and to So months the some way morning rides. will cases airport the now And be Lyft over home. takes XX that permanent to afternoon people you decline puts are perhaps be use a down and commute years? as as are may Clearly, Logan of right five use can the and talk touched work the and degree, about the there case possibility some but from

terms is with just Brian, you perhaps in rides degree of improved provide like the So of as doctor's us visits, can granularity related? as California, of efforts regional outside the in of among especially wondering activity to if with from your it other on cases some on could country you April new more use you put trough. the significantly touched going directions context parts pretty seems cases? Overall, to seem that I'm work Thanks. like well. But different be things, this in into that as expand some to not

Brian Roberts

interesting Stephen. I'll couple on touch of Yes, Thanks a trends.

transit of ridesharing lot they offer. of And tough budgetary across the a cetera. affordable broadly consistent the And cities seeing A we're back sort lot that trips has to our more are sort case been of to turn a of interesting forced between have to It more And and XX% alternative public country has seeing a in et the We of really transit safe usage amount service to QX? nationally. of fairly essential roughly and rides, trips. trends, doctor been and people makes as there. seeing appointments, stores, seeing conditions up a but total fallen shift reliable, couple of commute really QX essential cut grocery actually

just launched a Lyft business, things exciting a we've allows launched employee, find product the of for launched Pass a called flexible patient, safe One provide the And that Lyft to part of July. rides on and Lyft an new product that convenient is that Pass, we we in a front of for cetera. customer, a et a new -- And a cost option. that organizations cover guest, as

time location organization the can works and can pass. and So, recurring custom set lift that the a up cover, buy onetime an rules of way an it right it set or of that the organization, a great around restrictions the it's And more. type day used,

a ways to reopen. So One build personal to to really cities we support vehicle other on and obviously, environment. environment going products people side to transportation but is just challenging on we're expect really a We excited believe more pandemic. support comment other on the are a and more for that about we'll to ownership. And critical other most Lyft reliable side to look I that going very to I of Affordable continue the of deal depend on Lyft folks Pass, challenging be bit there economic think and the economic with. to as in they before, folks shift pandemic, navigating the little it and talked and want thing, be, about Lyft more

of but type they costs because from burden. beginning can't go it up long-term out folks and the the adopting car want So, at afford opt with a early towards type and service ownership along still or don't to still that product. we obviously, And fixed car, away think days, shift sign owners considering as very either a a think might we're car we a car for that ownership owning they of the secular long-term of broader transportation it's high

specific of as cities, on Brian, far in So as some weigh those trends? you can

Brian Roberts

Sure. Thanks, Logan.

our as on touch QX ride for total QX rideshare weekend of absolute weekend rides, the of last of cities. week rides rights total. talk bottom, weakened What's then if XX% then about at to rides total. So have I'll XX% let weakened quickly rides total interesting us, percent now me of the XX% and look July, just and you In year, in were mix, a last rides. of drop COVID XX% reached At of maybe the

So then and to and ride X.X%. QX a mix, we're they've rides airport dropped rights percent And to were April, seeing in rebound. we last to airport a beginning year as of July, more mentioned, they're rides. rebound as the rideshare In now and doubled X.X% of Logan month rights time, X%. airport X.X% up last total reported of there. In than And QX of as are

in last direction. from right down QX, still but definitely QX, it's So the trending

represent I the you're across In investors what U.S. to a hometown think of cities and of is for really necessarily seeing doesn't points. terms happening realize unique in aggregate important collection your look, What is it's data in the regions, U.S. that

a And weaker. recovered mentioned, particular, I But Coast, other regions the to are so to rise have recovered as in degree. much in West stronger already much a

top July point For were example, at different is the cities month, XX% year-over-year. understand rates. of key other in our And recover or down each XX cities less XX% to

faster and positive see areas Miami, in Los even finally, in month-over-month, media month-over-month, month-over-month XX% cities case had high with of then growth city And COVID jumped XX like we of grew as so top system-wide, XX grow month-over-month. our mentioned, while July rides lots XX% Angeles we over XX% than counts And and really July. and attention, rideshare one XX top Logan did

Stephen Ju

you. Thank

Brian Roberts

you. Thank

Operator

you. Thank

question Mahaney Mark of from next Our comes RBC.

please. question Your

Mark Mahaney

Thanks. Two questions, please.

challenges are then put surge in because but was describe wait First, in existing? there driver like seemed You you a the why drivers, think it it could you reversed. early on list supply

factors thoughts I volume rides you declines than your talk or but at why will think going Thank here, challenges? we've you. could declines why on match closely closely about then more or more forward last there are probably what Rides the match And Brian, play quarter in driver revenue supply will two? macro experiencing you're revenue secondly, seen

Logan Green

participation can Thanks, platform. first the take I the Mark. in one driver around

important to considerations factors wheel whether most they drivers our two and earnings the the health want stability. behind So for now, considering when get right

more consideration to very within but macro, health to taking protection seriously that safety improve health is of can lot the and that on point, everything the your and doing so platform. we're And we a side

providing options for choose they the the marketplace to we're mentioned, to important communicating as themselves, and So continue back was all we've they tens on, on those drivers fact, come because thousands we of that early kind forth going platform. we're the different in-house and the sure created example, partitions shipped make and partition, at/or that it's communicate units and back protect keep there to of to now of PPE levels. On those have if to we the are earnings safe above that earnings driver pre-COVID now

around we've drivers that for comfortable communication time. so really increased at that this are those And driving our

Brian Roberts

me then on -- second Mark, your little part on And and of more transition I'll a to to touch just context give question. let going the your QX, I'm QX.

are So increased as roughly as contra revenue in but a quarter quarter, progressed. classified of the incentives year-over-year, second that were revenue as flat percentage the

marketplace had of start utilization, the mentioned driver was we as that But the And waitlists. progressed, quarter QX, low the to began supply. so at so as really so John created demand outstrip much these

to from equilibrium used drivers our on demand. that help very comments the supply we platform, So the and incentives we quickly attract incentives use marketplace to competitor last similar week back the reach to terms help in more of

rides of will terms revenue to levels by improve on the QX, ridesharing we invest as growth in track we change service drivers bringing back year-over-year expect In the that likely platform.

act. demand invest as to right to in outstrip to And from the versus back reopens, really this really supply is city that will earned a impact. In a in on platform, has region-by-region increase rideshare revenue actually we think long-term benefit. drivers general, a change And why we strategically track the year-over-year move the expect Now slight a invest QX we is revenue supply. where in GAAP tends balancing and growth it's rides liquidity bring a QX And contra perspective, this this we QX.

or factored incentives this federal as this will more time, to QX of especially adjusted relative unemployment back we And create below Now more is beyond into in as of historical to really on platform, believe or drive the signing estimate. can terms expire believe benefits people course, all levels QX, up benefit over will decline and QX, And reduced. further that levels. markets a future typical our EBITDA are unemployment high-end to trends we lead reach equilibrium that

Mark Mahaney

much. Okay. very you Thank

Operator

you. Thank

go Our comes Eric from ahead. Please UBS. next question of Sheridan

Eric Sheridan

side come how generally acquisition so And in Maybe the side in environment? seen and those been there's question. so see degree on the Mark's of to marketing for recover, initiatives holistically? than secondly, between be behavior to as Thanks question. market, on a about you to competitive any In versus Thanks you opposed sort a how in where where approaching you're you to you the initiatives demand way recovery then the snapback of equation the the much new much. either as two in last think of competitor of healthy demand might following one your that. terms seeing market markets of the the that the Have we much greater in answers upon taking markets And organically some lean you more customer equation? should and the supply Steven and main recovery following answer, a of allowing changes you of of or to

Logan Green

Sure. seeing, the Brian maybe I specifics. in -- can of we're some and can on macro trends I'll some hit weigh

stable. So fairly competition has been nationally

company, focus better and And our competitive providing dramatic a changes. our putting riders as differentiating -- to drivers. nothing our a innovation experience no on So platform we're to

we we've of consistent side, handle. lows. what some can with we be where, generally, down the more course, that record of on we have And significantly at than a markets, really look in to And third-party coupons you place in demand If cut data. that we're we run the from to programs seen rider have seems

we So on really back pulled are side. that

strong supply, ramp the On again, driver demand. wait last had into started the against the balance seen leaning removed and are drivers rider we marketplace as demand we've to the incentives few -- the we on faster We've side. the we using months, over list than acquiring

So ultimately, weigh deliver our position in on the focus is recovers. the couple on of market putting a growth best can to possible strong specifics. in Maybe, ourselves Brian, as

Brian Roberts

Eric. for Thanks I so Sure. I powerful. because it repeat again to question, it's have think just the Look,

classified preference, on as experience and to the look using as we on win sales saw reduced If brand the we incentives progressed at XX% time, coupons. as a quarter not QX Logan from same marketing at customer meaningful levels. we But want innovation, product you second and quarter, rebound without coupons. mentioned, the Again,

product the We in our ROI these experience can And advantages innovation captured than competitive is which and customer competitive line. so game. investment investments real much zero-sum can into stronger true turn and a have of in -- believe R&D create coupons,

that will expense So we sales percentage of a expect be revenue as and marketing COVID. permanently us, post lower for

terms this United the a really of act. it should than States. unique; hard cost measure. a my really what we've so just is, back to cutting seen across in balancing short-term generalize is city comment, more And different then that you It's states. add So just away take is city-by-city It to to in like is each

Operator

you. Thank

Edward from question at comes Yruma last Our KeyBanc.

Your open. line is

Edward Yruma

leaned and And on you. over wait I they for how and -- specifically some And products may just quarter, introduced ones. two initial you delivery. observations me. just Thanks any of I guess squeezing these save new performed. quick during know in the businesses scale how time. Thank kind

Logan Green

Sure.

really what we've wait seen and excited about we're So from save.

lot that at people sort the to the a was affordable and really thing it which country And shared away But So is bit transit is a who think, more flexible demand option we wait most for from into particularly, experience. you the for option pandemic, can minutes, to we pure was can because a across providing we looking get way, going the affordable customers, -- had moment - schedule. rides few going wait out kind ultimately, can little our their And driver And of public of Lyft I as cost less price significantly are minutes it do. - drives switching a days our and in options. took from of great difficult paused save do first the of on on XX not better for send marketplace it a lower if is we a you can their wait efficiency and utilization. of driver to increase folks X right than

on can, out any to able kind or with we're So anything not safe. it's delivery. But needs and we're John, metrics innovation excited unlock specific comment performing that pleased yes, and when market it. breaking wait you the how right Maybe, be type disclosing of of to kind of on

John Zimmer

Yes, sure.

delivery, consumer-facing the So as losses not continued for delivery growing of we clarity, delivery -- -- despite in that essentials program. in delivery, on the well aware launched we an service. doing We're those We're well space. growth a

monitor we're deliveries, look just built happy programs. on looking for It's for with current to there. at really has drivers days, focused we're can the Lyft product. deliver team So speed our early which and we've essential opportunities that additional items been we're working but organizations with that the and In continuing help so really essential

Logan Green

everybody that staying our talk time, We everybody healthy joining we'll to next is for All and quarter. call everybody, today. this during safe and hope right. thanks again With

John Zimmer

you. Thank

Operator

Ladies and today's conference participating. Thank you call. gentlemen, for this concludes

You may now disconnect.

Lyft (LYFT) 12 Aug 202020 Q2 Earnings call transcript