LYFT - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to the Lyft Third 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 Sonya Banerjee, Investor Relations.

begin. may You

Sonya Banerjee

afternoon, for Good to Lyft the Thank quarter and ended call the September earnings you. welcome XXth, XXXX.

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

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

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

Logan Green

And Thanks, thank for afternoon, our everyone. call today. Sonya. Good joining you

XXXX acknowledge financial on been challenging fronts. our I Before I review many to that results, want has

have and for we to the will opportunities of on the thousands like path week, pass economic with And maintain the It's will for believe as what made on stood a in and in drivers Last make riders. our execution. landmark the voters the remain we to support proud who that achievement XX. California's its we riders, history good team's It's are of rides, ridesharing, industry and Prop of We to XX, California, drivers good continue for ours. focused Prop platforms to can recovery highlight earnings access for independence. outcome to accelerate will flexibility I is their better a have our who will access profitability. to drivers, outcome recovery, hundreds residents win-win-win. to it's want flexible of and controlling also to We good our California continue even because for

we're solution that provide for voters California, model can policymakers a Beyond continuing California to policy that and the engage other states. chose country, across with the believe

our Turning let's with quarter, saw our we trends in third to start the business.

quarter-over-quarter. the ridesharing strong Rentals Drive, Centers. As was growth revenue which saw ongoing. in other XX% down quarter-over-quarter. was year-over-year, in we which quarter in We by Revenue The performance expected, XX% our bikes, improvement was fleet, includes third areas, scooters up Active Driver our Express recovery such as but for primarily in increased driven Lyft improvements and sequential XX% and Riders,

activities. ridesharing to turned they Even to As we the levels, in the April. daily still Active an ride improvement more communities Riders X% week are of though quarter-over-quarter, have their rides per go pre-COVID rideshare from reflecting trough recovered about reopened, meaningfully down Revenue in second people observed up from was frequency.

vary of last were April's rideshare that trends to In XXX% week October, rides responses low. locally differences in America, fact, North COVID-XX. noting across for the reflecting recovery up It's worth over from

maintaining become will While wider some re-openings, to platform as our the cautious other restrictions. to return a recovery continue more cities are people to approach cities be re-imposing more vaccines We active, available. or through by taken confident remain enabling have sustained have we approved and that and progress demand

vehicle business, operations engagement also Express QX. we bikeshare in our car While our in Rentals, rental Lyft and improved uptake we saw in in fleet the recovery our scooter and Drive of utilization consumer saw experience. best-in-class strong ridesharing continued, strong Likewise,

the to book been and Early road positive. riders skipping have That revenue car-related September, business app first complete, car the party SIXT record have And during been and trips trends in way. exact using the travel Our embraced have as pandemic. Lyft the a counter means Lyft our the selecting car customers now with pickup. achieved across at country SIXT rental our integration

unlimited we in help ownership, Pink of members Since significant for even launched solution through And Lyft Pink. now members. our late We integrated can the of as has car be to accessed from member a Grubhub+ to and replace Every of delivery Grubhub. XXX, ways with new America XXX from Pink be to year, through scale extend and free North to favorite more crowded a to Lyft excited the nearly in program. pioneer has that Grubhub+ which continued that out selection and unlock access built which value only food be to are thrilled stands we're look company the Lyft last I'm partnership the Seamless+. key category to restaurants to all Grubhub their delivery seamless, across all of highlight markets, our benefits able can we've

and rideshare, to bike and receive on out offerings the our our the are So free riders exclusive benefits they members plus further whether in, ways platform. Pink Lyft pricing one-of-a-kind going they for access on to and value love. scooter to Lyft continue look delight enhance or from new of Pink We'll restaurants rewards staying preferred to delivery

with marketplace seeing balance and we Since seeing been to was has that we've been discussed supply were we ridesharing. outpacing as we rider XX.X% in improving our demand in pronounced, drivers. rebound the an pleased recent turn marketplace. imbalance our now rides have me in trends the the then, down were Let On less issue of in the year-over-year. become in call this available October August, last

our turbulence, continue be expense balance there operating we we're thanks leverage along recovery, the a in to our road sheet natural business, while the withstand will to bumps and prepared to expect discipline. robust ahead, this Looking to

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

position. the While on continuing we cannot actions cost control to progress earlier year in the outlined the trajectory results, line recovery make of to this strong our we're timing financial or our strengthen top we

we addition, slower XXXX achieving recovery. with taking approach profitability increase extremely approach leverage. our disciplined QX EBITDA XXXX by an focused on a operating we In as to are budgeting, even We're adjusted

we with XXXX plans positioned now in XXXX. target originally approximately what last what EBITDA and are was is fewer we from than further context, adjusted required current For our issued XX% QX our quarter. a October improvement achieve rides shared to profitability profitability This we with execution, when

and of I'll work results doing the reviews to XX serve. drivers, over turn support we been Brian communities important the Prop to we've outlook, and performance and our Before the of some talk riders, John about financial to it

John Zimmer

Logan. Thanks

is heard a experience watershed elsewhere, research so to it our and attracted stop guarantee. this with new Voters and for want has a as backed benefits, can minimum that drivers. believe will recognize that community. continue is of The providing federal desires on clearly wanted protect the have industry, drivers our California subsidy, week, drivers proud agreed. I As to to their accident and one conversations at business the our to policymakers as that of we've always I while found insurance, California way working and their thing in many all experience Logan makes the well also for important a And our voices while jobs want. consistent, operate start the as often as XX. drivers challenge that states allow wherever, with now From ensures has we to mentioned, voters level. you and earning a and long a new Proposition independence, really last Lyft a It is California drivers drivers believe win-win in victory see drivers, priorities This a we've look few time. you of Very state. This solution We other for on because solve continuing broader to independence. to pioneered healthcare that also the I'm the from successful talking policy major with policymakers our made as providing opportunities. the strongly platform. every California was level keep ultimately forward that occupational is been earnings voters model that to or voters normal whenever, a moment sense. campaign all as done, reflected what a

we engage and Now on and focused finding communities serve. riders, support more are we drivers, than the ways to with ever,

continued designed Clean start Let's process Science recommended part this Tennessee considerations Ride collaboration University out vehicle cleaning in and program. mind professional and process October, our the products new health drivers. and of We roll to as for Health with drivers, returning specifically services top we've fight to Center. our In introduced with cleaning developed Guide, safety new Health we of COVID-XX. and of a P&G remain

to increased the few their road. opportunities earnings our Drivers to or sanitized stability. driver one earnings can end, also now can service disinfection centers drivers our over in evolving is to make their of select to them demand have patents. we've look of addition, maximize them months, on pre-mobile is communication they available cars on their leverage critical time To stay that last speed rider that help up the to drivers help visit our for the Giving with drivers In markets. most

In QX. increased we initially drivers launched with improve we update incentives translates by QX, which expected like the addition, loyalty efforts on to our the to marketplace, pleased to pandemic. drive during retention when to We've lead efforts are incremental reduced incremental and percentage to drivers an giving I'd in revenue our versus also essential drivers to Lyft classified earn of Rewards times. expanded more provide our service they deliveries during increase in busy connect conversion. with been contra usage also our as These QX opportunities levels on should as which to revenue a drive These program, platform to delivery. of pilot,

path. that local need. spent expensive And incentives space expanded we've local they've to white are retailers differentiated platforms working to early and delivery including progress the program, but strengths, B, continue they've other their obtained help A and on that someone opportunity step models goods current our them and about existing with they to does creates to them not updating businesses time retailers. their fulfill not commissions are talking we for emphasized their organically them, their use full point traffic. our look and we point want very businesses is It significant As forward that exploring the to us but one what businesses days, from a delivery partner, told help between customers. in delivery making as not you between technology. This This plays aligned These this move retailers and to overall individual of our to model and we've

demand key our to side Next, I'd related the few a of highlight to like marketplace. points

rides increased spot As further our to Bike did their along bright a validating roughly revenue, XX% diversified Logan during scooters pandemic, and transportation. with the increasing collectively, mentioned, scooter as reflecting were popularity up seasonal was approach during quarter, favorable and the bikes trends. quarter-over-quarter, which

nine across our with electric to now including provider, e-bike markets, fleets and this is pay inroads Portland, Lyft Portland. which major we Santa off. We doing San including New are by Across make the turn we also I'll seeing fleet, cities, Business. in two continue available all work are to new Francisco in are and and we now York, exclusive the Chicago, bikeshare Monica strategy

or QX, retailers, as an more adopted alternative reopened, public operations-focused airlines, hospitals supplement communities and major During to Pass as transit, organizations including businesses. Lyft

Nike, also our our new for leaned saw facilitate like as help T-Mobile companies Starbucks strong and We on use products business cases brands solutions and voting access. to

will continue We products rebound. the positioned support we to look are believe for like businesses the we well navigate With to they Lyft ways to Pass, corporate as capture recovery. travel

is integration, of majority in this country's directly through records, a October, to book patients making with health helping system leading are We will record health Lyft able hospitals. announced that In rides Epic, non-emergency top-ranked their Lyft for inroads good used a significant the electronic their health to system systems care. health Through worked also nearly be a medical the programs. because integration that's we transportation market staff new transportation the represents the never by for our We US use view opportunity. medical with as transportation Epic, a healthcare. ensure non-emergency XX% have to many aggregate, In in yet barrier not a opportunity, multibillion-dollar that of this health

two provided nearly critical rights talk who our and expanded Jobs and the bikes they with long-standing the million long-term to We've Lyft to can Access proud mean bike for than and employment support XX is are Through Brian. meals program And scooters, I'd opportunities, Goodwill major in about cities, intrinsic designed need LyftUp to Mastercard, addition Program job and individuals able the doing XXX,XXX we in Finally, which society help is is serve. like the This opportunities. and be [ph] with also more communities with difference and our rideshare. partners, across successful scooter transportation between now between we're reliable, business. company Across it have and delivered what get and to to the to to good Way. workers. United is includes Access the to this to help partnership we we of the lost transportation to I'll hand eligible volatility provide access to to communities. now over economic affordable to

Brian Roberts

afternoon, good and John, Thanks, everyone.

rules, we've back activity governments life, in seen on As and an update local come our and increase state cities platform. slowly to

and In down In on of down share XX%, was was XX%, July of the and the terms down April, August shape ride quarter, recovery in the in XX% rise a in June. year-over-year down May September XX%. were third XX% XX% was basis

revenue third as up third active of frequency pleased million, $XX.X the we riders in increase we from per metrics, remain XX.X increased number down quarter, million large REITs this number in active to ride sequential across $X.XX from million the riders, year-over-year, of increased up to the in that to led The strong in QX. significantly XX% $XX.XX quarter. in quarter. third active trends key QX, Despite realized increase per in While combination of active growth revenue were $XXX up the $XXX to the the second these The in relative XX% X.X second the from rider million quarter. quarter second increased writer, to a in quarter,

second points defined quarter. statement Now, million to non-GAAP unless cost at $XXX items. in revenue, in amortization SEC. prior this This today XX.X% X-K measures compensation and before contribution, the Relations furnished revenue, contribution from absolute website intangible XX%. non-GAAP margin the with by compensation note, historical increase, in XX reconciliation release, is represents available I All changes In was This on of up that stock-based select move second filed liabilities earnings that of from maybe regulatory adjusted includes increased related XX.X% as on. stock-based required and attributable outlook which to is QX, Investor agencies well for our of less otherwise exclude to the $XXX I which was XXX% above in found are GAAP assets, exclude other with want our historical and to to Contribution million, indicated. to percentage A expenses results insurance, is quarter. and periods. QX, income Form follow which our

margin QX In year fact, substantially flat contribution in was with roughly a lower ago with revenue. even level,

As volume returns, expect to we leverage. generate additional

insurance reminder In to be third required to by agencies, adverse attributable a as Now, periods. exact. liabilities developments, historical for to excludes changes million the than there quarter, were the XXX,XXX contribution one less of regulatory

go periods volatility XXst insurance agreement both, auto Mutual. that March taking October future We innovation risk effectively of XXXX. and historical expanded all subsidiaries into basis. reduce to proceeding the Xst to related October reducing liabilities, program, have are Liberty actively insurance of of been amount eliminate us include to of Lyft the nearly On entered retains. we forward Lyft Lyft primary On and Allstate Further, rideshare it's to steps

partnerships transfer existing required is XXXX. XXth with total September our agencies than deepen to risk, US the slight months transferred also regulatory insurance and amount by Lyft ended XXth. during Progressive, more for year ride during September sharing of AXA-XL expects We the This prior the Travelers. ended XX double majority a

as near XX.X%, in to lows. revenue and as down QX, a of Sales QX we Operations incentives to maintain in was expense expenses. support QX XX.X% down as in QX from Operations QX, from flat a with million, percentage QX. million, R&D in R&D XX% $XXX of roughly to historical a expense operating XX.X% $XXX XX.X% marketing revenue, for declined XXXX. move in was and as declined expense expense percentage and was QX, rider XXXX. year-over-year. revenue percentage Let's QX of of support XX.X% down of

million of was million $XX on $XX million up just $XXX but year classified revenue. QX period, was and or down X% sales and sales QX, QX in $XX absolute, of validates marketing million as only of spend, of from towards expect marketing into ago end a In XXXX. Incentives a XX% increase in outcome QX QX, to especially declined XX% $XXX approximately with in QX year-over-year from as basis in expense a in and $XX million, roughly million G&A QX the flat a spent closer recognized this Proposition Please election. and intentionally we current quarter. the portion The quarter, of note, the spend shift XX was of to be to California be portion shifted from decision to Prop originally that to XX. policy of spend support third to the terms our

of and the bottom $XXX.X tax our related $XXX was compensation terms loss of expense million. EBITDA better million loss outlook. line, XX% QX $XXX approximately Stock-based than was our adjusted In million payroll

the X.X a net a We had approximately $XX to short-term of cash prior related with million. our billion the investments. again CapEx, We unrestricted reduction. As reminder, benefit which $XX ended at quarter of in quarter disciplined came were and equivalents, cash, workforce million on

CapEx prior down XX% I'm CapEx million, rideshare implies to lowered our quarter now were our our which from million to cash reduce XXXX annual each outlook. forecast year. of In savings expect an year-over-year. annual October, from we have pleased rides million XX.X% report, roughly $XX $XXX We $XXX this of additional original to plan

was indicator on profit it's monetization strategy to was month in year-over-year early One less the highlighting growth. basis. rides decline growth per for unit beginning the bookings Now our October, decline that of this October, in worth drive than increased ride that focus a we of the in versus on

re-openings the government contain the provide QX, guidance healthcare COVID-XX. and we fluidity with cities to of of and cannot resurgence and spread associated terms given In orders among variability and formal recommendations

benchmark. prevent first COVID, unique from growth that to the has as also quarter using addition us the month, fluctuations seasonal fourth In a

During of December more or rides occurred in impact relative prior given in fourth the October, month ride seasonal the than holidays. quarters, November either of

face EBITDA also unique Finally, revenue this quarter. fourth and we adjusted in headwinds to

in quarter-on-quarter given to related the seasonality. in a revenue, QX absolute revenue of expect and rental terms decline bikes In we scooters

to continuing car impacts which of to take use we're vehicles addition, market fleet In strong revenue. older advantage the sell

revenue scooter are to but revenue tailwind expected $XX bike, between greater our QX offerings fleet QX, between million than nearly context, and QX. provided and and a for $XX to QX a cause Now headwind million growth

along on headwinds will impact the fourth the in our revenue summary, total continued in COVID-XX quarter. So pressure sequential of these company growth with marketplace

I investors In to in terms expect a consider. further headwinds EBITDA, we to that want of achieve highlight adjusted but few should improvements QX,

to call three In seasonality me up aforementioned addition let the factors. headwinds,

salary First, reductions, recall that $X of August. million which savings approximately related QX in expired from temporary benefited to the

As QX, were salary a $X our April. reductions benefit we a effect, reminder, headwind. which layoffs is an so In realized implemented not conjunction it in QX with announced repeating in the in creates million

the basis are million in we of fixed the our cost by an we've while be impact outlined we will that on because QX all to quarter these on $XXX earnings achieve QX Second, already cost sequential track savings muted, of first realized this year, annualized call, virtually on savings.

from Finally, QX as I in will QX mentioned, related and down intentionally in and million the believe revenue pronounced We factors spend will QX. less expected. be more in and these QX $XX spending spent delayed impact between EBITDA to policy and than we million alone. October than step adjusted $XX We QX originally

guidance, we can OpEx assuming behavior. to round hold QX counts and quarter-on-quarter. can on adjusted that driver incremental driving grow our given of estimate expect the drive clear. revenue $X.XX that we're flat add case We QX, growth XX% currently growth as that focused of we're nearly quarter-over-quarter, we lead shutdowns or contribution. profitable doesn't to growth, dollar revenue the new or change XX% roughly $X.XX may to of COVID rider We anticipate make strategy revenue will headwinds revenue to to providing each to in we aforementioned While In further strategy profitable not resurgence want EBITDA expenses. Including is formal we a sure and leverage our

$XXX improvement. So can loss on that million we high-end, million, of $XX which in represents we bottom line estimate the a to terms quarter-over-quarter EBITDA manage our the adjusted QX

outlook. Let me to XXXX turn our

We're achieving have update profitability. our ride profitability year, focused of even QX below on if volume an EBITDA path by we adjusted As of to next remains QX absolutely XXXX. shared, Logan

approach taking by planning, mindset. an With current such, profitability, can now disciplined and with we adjusted to our zero-based ride execution, plans As achieve XXXX budgeting expect EBITDA we're we a extremely to using level ride would quarter, which in X% we last 'XX. XX% need below prior QX X% approximately of XX% of the assumed 'XX. volume volume comparison just This to QX our above outlook, a

addition, below In under levers to if by have next reach year, this we is QX ride believe we different level. volume multiple still scenarios even profitability of

end three key Let me with takeaways.

For executing a key fixed XXXX guidance. XXXX original initiatives, to help $XXX navigate the challenges to of million our of relative COVID, including annualized eliminating costs

Second, COVID-XX. impacted while remain next year. operations to these to quarterly that QX confident will of by be continue by positioned We profitability reach we're

for addition to positioned improving sole in transportation XXXX focus. recovery, pure our as expected strong revenue Finally, well play Lyft in margins, growth given organic a in the is

than same closing, it that remains going per and other COVID more was ride I'm side structurally actions profitable our in. in So our emerge of are the on mission confident clear. Lyft will the

adjusted long-term next margin our target revisit will We EBITDA year.

to As last we believe lead the we that will we continue said quarter, industry.

Finally, notwithstanding positioning the foundation drive shareholder growth to even recovery, company slower a continuing build a to we're value. that and to profitability strong reach long-term with we're

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

Logan Green

now to with and to improved. similar that thrilled future and country earnings company by enable moment I'd of that the with we're why. our like the on the have driver protect position legislators Brian. share outlook it the across and to you, regulatory like opportunity speak outcome Thank to opportunities. creates take Prop We'll solutions. One, a independence is our on I'd to work but more reflect reiterate confident calls, our to we're greatly business the for on XX

network are people's and the to the a Our and our by up with that this than rental riders are to driver rider North be ongoing is pull ready in dedication. transit, we transportation. we choice shareholders rideshare, to that pure better platform and ourselves integrated scooters, for a platform recovery to-date deliver in We're world's outstanding are We're their we encouraged single We're to and play and has of only team partners, transportation ever onto best drivers improve value confident to the now support and the period America all shareholders. believe and take and And with bikes, mission great for we positioned lives company questions. that for stronger. continued members, community, to we're that, business setting exit cars,

Operator

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

Your open. line is

Stephen Ju

much. Okay. Thank you very

So, Logan a there a for there Lyft out pandemic, think of that unlock bit have we is market shrunk perception or TAM be John, time dollar that the addressable I at of to as might out potentially level same come least the or may little stretched.

Brian, might So, what as this existing at is And where wondering most the thinking you for use your as margin heading to as lower? now XX%. your of contribution cases driven about be like you optimization the by that use think about, response higher rideshare of be be might pricing versus to being cases sounds costs. new is opposed environment insurance especially seems be in going to an it we're your Presumably,

quarters. through So new with your ripple subsequent agreement which, I should guess, to

well as less guess, I OpEx XX% guidance. with Thanks. So, other as, that this get you factors versus talk about profitability to original your us the to units

Logan Green

All right. to want Brian, with you start profitability?

Brian Roberts

Sure.

Stephen, to that. So answer maybe,

Let counts been cannot seen, as me to-date. which will a stair speaking, obviously, largely been our We've we're which with not recovery must in give operations of positive reversed COVID by depend there accurately case has extent predicted. simple increase. highly you straight-line But thinking and uncertain a steps. temporally generally small are regions Obviously, this to future And The disclaimer. I have developments, little color be will be that have the terms QX. on impacted about how start,

recently, week, rideshare down this so have the November rides know, the most normalize Election of to would XX% we X, around in been you would XX%. April, most terms XX.X% monthly down XX% in the year-over-year and, to to the as XX% we've XX% XX% starting to XX.X% gone from week probably In boost, folks to ended down recent be Day were October. And to In XX% growth, if year-over-year.

say, barring increase we have modest. riders to restrictions expect really forecast that to million. the a in to in that see of will difficult active XXX,XXX during active X quarter-on-quarter may QX I we rider riders change guess COVID we in And Now, active behaviour, I riders QX, be us increase more for between it's will but would an COVID. or significant estimate But in growth

to given and absolute rate focus ride Now, the frequency revenue that active QX. QX we relative growth as increase will expect the on of well percentage as relative our the I QX, in per change rider monetization to stable terms both mentioned, in

So sequential between XX% riders overall, in active somewhere between will we to be we grow expect and quarterly that per growth revenue quarter-on-quarter. rider QX, XX% again balanced expect active revenue will more generally and total the

EBITDA Now, XX.X% a obviously, assumes change guidance count rider the XXX points would to contribution imply basis realize strong in to QX, so incremental margin that this COVID doesn't that XXX estimate QX, a leverage can XX.X%. in a adjusted increase by growth. range driven contribution to this We question we and cause expect is or case new address of your behaviour. profitability, increasing of To formal none round on shutdowns

incremental growth contribution absolute to possible to of it's below And the about $X.XX expect XX% of grow that X% revenue probably also In We terms contribution, for versus we then on believe dollar revenue financial leverage. high-end additional of growth. XX%. quarter-on-quarter, of the generate we to will impact, anticipate show OpEx every

should decline. a OpEx of percentage revenue So as

increase invest the quarter-on-quarter. OpEx we approximately million hold trying improving. want of now OpEx, supply within dollars, total are And that we're of in $X absolute terms modestly an to In marketing levels sales and to to

between expect that and we reduce XX%, revenue marketing including anticipate but And sales percentage level we XX% below marketing. of So other fully marketing G&A areas and as QX and will a XXXX. can be we in the which offset in will of and the sales we sales to OpEx nearly hold can increase,

increases leverage. recovery, key create strong the tailwind given one as our OpEx that, ride here to should contribution So takeaway this is profitability volume for path post and

to sequential it EBITDA achieve our I contribution. we and $XX can think estimate, improvement fueled adjusted by expect as of relates high-end at growth a the loss we million QX,

XX% at improvement our very quarter-on-quarter EBITDA in a imply So this basically the adjusted high-end would of outlook. again

now to about, that being from profitability answer to original ride was fewer think rides question able forecast XX% our necessary. achieve your with I

that parts. in answer really me two Let

costs achieve run XXX with to savings on we've First, million and by reduced are our second restructuring QX. in of the fixed the track we the significantly rate quarter,

second reduce initiatives more part by a third-party part as key making revenue driving is opportunities variety ride. on budgeting both significant revenue a slow we're finding XXXX zero-based as spend per to generating budgeting, of The mindset and decisions we're well rides Separately, we're more to of so hiring. progress with as increase and

reduce And and So this And to initiatives processing what's the driving to then transaction of unlocks include hosting opportunities more leverage also our product drive just safety incremental from on would cost costs. funding we a efficiencies revenue. as insurance marketplace. on as cost continuing side, see we're variable percentage

long-term in maybe slower we model create improvements close, structural if ride our time there's lasting IPO a of believe generate term, achieve EBITDA these as discussed recovery. quarterly can near result, excess and the So adjusted to And even business. profitability of to expect our XXXX, we margins more the will in at a we that actions

Logan Green

the Thanks, of we focused Brian. question, To have take one since other part day and that. we laser after going the been transportation market. consumer have And on been going after $X.X the trillion are

And been market I been service forces will just Today's today of for based companies interact with were that's as elements to basics just that keep the XX to recovery ownership have continue of talk of you're this out. are owning each they has as A these retail And still a all pre-pandemic, and a a fractured. ownership second. on paying from ecosystem all typical one think about transportation the as up is we true full prices. think with that as car play car different in be to consumer extremely car. shifting structural to play the we at to same see step,

build with network of prices. a every handle So high that can you have transportation is our a to needs. bad very vision transportation And customers' single one disjointed experience our

down incredible XX the customer to network to experience one. our deliver So those we scale create completely taking value customers. can of companies imagine a to and different And frictionless our leverage

the our TAM. vision. So That's that's

service trends force, a all the it's think transportation are I And from I as think at at ownership people to play. of secular moving unchanged. still

If hit when interested world And now less a is a those you've you you look our ends our a is the right in to at elements with deliver we after industry, zero, we will navigating our being priority combination. as generation out. experience, getting seen moves can And They're at industry as CDs owning their what car. up with while think happened that less cost to first ensuring structural And generations. recovery it license. top our next younger and RP streaming, the service the something DVDs in lower profitability. powerful always a continue of to all and really playing a better really, think I interested is Each in

seizing on all-inclusive an We that network this to TAM. will vision trillion double of continue down transportation building $X.X and

Stephen Ju

Thank you.

Operator

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

Your question please.

Doug Anmuth

the Or business you the something maybe on business second, just taking side? to XXXX late the your the moving for Logan incremental view Is specifically adjusted There's XX% John, just where but of in terms there? or are on Brian, the was parts, the clarify could that savings volumes, Thanks. of year? more lot consumer. clarify delivery I anything on is questions. hoping food EBITDA over plans clarify in your can And next you're for just profit and of you part there about of Thanks talk a biggest and when you getting seeing corporate there. comments the considering you then just that

Brian Roberts

Sure.

let first take part. Doug, the me So,

ago, than spoke year conference, it feels John Street and only longer when Logan was know the at You that. which a digital Wall

forecast Logan that had You said, lower QX thought achieve a next XX% we profitability what of built year conference. what know, what year it's to by than and ago a we've we ride need, at we relative now that know, you

to than now XX% rides rides to we work just more ago days needed X% of of second. which EBITDA X% we adjusted to We lot profitability. a through in ago cover fewer I'll XX% XX a need achieve XX to days today, terms In where were QX of and XXXX,

folks cost of made, we're we of but our structure cost aware changes think terms fixed not letting the are I well up. in

next a as with this x year, you mindset, get spent look budgets get could zero-based doesn't you for year, just plus budgeting mean so which And x because y lower a you mean much you z, number. at is it next year,

having more we savings. what improvement cost And COVID, spend, on really just think side is expected We're more ride. fixed per try team going structurally I really profitable function, first gets of the justify margin unit dollar our But exciting can so just to by because emerge each other unlock and contribution economics. the

so expenses. And as as variable all per ride well is key this monetization the

terms and You excited recovery, very oxygen need translate we we're in in and know just leverage terms ride of building I'm line. it bottom and the the back to some to of drop will come

John Zimmer

happy I'm John. the take. take to happy is Doug, to This question. I'm delivery

impact did this being existing of that to see did opportunities. drivers we as in that a elements restaurants, the were need more two, a earning started with start we at kind for pilot program organic lot those social retailers the mentioned we we our of work arm And of technology certain So connect while And delivery during and really us we're it and existing traffic. delivering back, perfect how the meals for of pandemic. to pandemic helped around doing one logistics proud

like of what's when a to think lose restaurants in revenue favorite that happening York on sell And they platform. So platform, Uber they Doug you the one about charged you Dinosaur if the - of like Eats, if time area restaurants east an take New XX%, is about their to restaurant coast, XX% to my you're XX% get all that and on in care this, you Bar-B-Que. think food they XX% the example, I to

platform, And not so during capabilities, restaurants partner delivery they provide. can the to XX% you to what plus to we XX% to we're drivers have especially which and have the these retailers, be, they million going pandemic know, hearing just the that's X we but want the want is from someone on obviously taking

consumer we So not approach, interested organization you level going platform, is other of in and can we we're differentiated, not which a BXB step unlike customer hey, kind to platforms. and think in more where between your a of interested say

Doug Anmuth

Okay. Thank both. you,

Operator

Thank you.

Our of from comes Mahaney next Mark question RBC.

open. is line Your

Mark Mahaney

Can I XX. about Prop ask Okay. questions two

that being - Do your think pass you or you plans evidence to Prop then with along? that what federally some of materially XX you Prop of been First, terms the whatever expenses you there about California. talk the about either impacted you'll those are costs, you Thank what can absorbing that benefits guarantees other extra for talked you've implications legislation states? drivers. implemented minimum there XX - possibility those that of And how are associated Can plus extent wage beyond that very think in the seen similar is much. changes absorb,

John Zimmer

is Thanks. This Thanks, John Mark. again.

independence, nearly seeing having So support this doing democrat, across republican Prop in and we're XX% that support measure, result with a the very so from happy and state progressive XX, that one meaningful. very very voters was

certified, on. as occupational accident better is are few that things then will every a and of that the XX, covered like next insurance once picture is happen be will XX of are quarters cost, terms have later XX. something over effect into the we'll There that will than In which and election go the that no certain December December the driver results deadline Prop

terms eligible. ultimately of depend subsidy, In drivers care health on how costs the other like it'll many become

So better that a as in have I a few sense quarters. mentioned, we'll of

independent There and a working that In that country, point along with is terms that a other this that, what has states turning means a quite benefits, look distinct conversation. the for think win is now of I decisive to. contractors has across can model the it's clear

a and to across this engaged country. so And been policymakers relevant across do where to replicate best so model and do with in conversation country we continue take have to will the the our

Mark Mahaney

Okay. Thank you, John.

Operator

Thank you.

Our Sheridan UBS. of next comes from question Eric

please. question Your

Eric Sheridan

the been users behaving who have a on you the levels subscription of Pink platform your saw for bigger then go taking behaviour behind of might elements you're the with where any much. to Thanks picture so and update you're investment sense more the us compared that subscribers Lyft making Maybe of rider efforts? your of efforts aligned is you very the sort from And Thanks much autonomous couple sit can how give two, cohorts, months? can strategy recovery you autonomous an contrast over question, seeing to questions. as your last or basis market curious and rest how broader of of of on what someone

Logan Green

Yeah, sure.

launched that own of launched - that terms we with a don't Grubhub GrubHub+ very in recently any about, in Grubhub. and actually But of metrics kind we're we breakout their called partnership program So Pink has membership performance. focus terms members excited talk about and just we thousands something Lyft but of their for we our of is an pink us Seamless+, Lyft to each both unlimited on way we businesses delivery and both now get Seamless+ and best. access which to do benefit GrubHub+ to And restaurants. of think offers we a grow what great incredible

account experience, a a been tabs. intended. couple And that's I a benefit. my up. seamless connect no really your linked great it's So pun you account, extremely It's great, can popular. And

benefit we hit on But of the that of your terms folks in may that's less sharing that So them terms at we that right this and specific Pink, for who can can in that, steps, something using autonomous other ride that I vehicles. kind work out our It applies gives of not pandemic. question during moment. be think about a now quite are with nice excited break

be as So take is It transportation and to biggest AV going service. future it time, is will of happens to our to the I fundamental eventually. think absolutely the some thing that particularly but obviously a transportation industry

a is of matter energy about. it So is, the it's that important. we incredibly no and lot something obviously thinking timeline time we think spend And what

dual as a strategy. about we've have have we so talked So - we before,

to deployments largest there. partner We've our the We we are in an So self-driving we done testing done those Motional. one self-driving and partner also doing we're program paid Waymo, some the Motional. Vegas. between have And the out who rides with And with we've open pilot platform, This Honda folks in have XXX,XXX have of commercials, over a where together. industry now they're actually used is with JV be Aptiv rides is best-in-class. we Aptiv, where

great to lean to the who progress continue So - are into industry. we others making in will

not In our put is our something talked think proved of out are tied investments. into necessarily to terms we how in own before that proud dollars of ways about efficient program. with really has we've the progress and we've is many I investment, And been

which pretty making to made with Alto. use incredible ability of Francisco. self-driving see it approach We to some cars learn in And think out ultimately testing in to train the from we to system. data rolling our been out collect we be outfitting restarted We're San actual made fleet, testing really great progress progress. to and excited recently think Palo terms really I progress that of system San initial And the we're think building ridesharing is going quickly our proving cameras some we've important data Francisco, really done that's sensors one and distinct early from all and and also and our cars. scaled our specialized to to self-driving how rapidly the we've And in advantages.

a other on ourselves we In flexible and with terms work very pride being of great also and partner we partnership, how folks.

that this looking And had of for partners, co-funded for in together. other always we So we example, in Level invest more move partnership X efficiently we can lot with and of together. two-year a we're conversations Magna, great the development faster where with and a ways

bottom vehicles. is, that I think of eventual rollout autonomous positioned well of for line the extremely kind we're the think I So

no provide vehicles cover XXX% and second the of can platforms be ridesharing the app autonomous monetizing, will that an to that first generation And cover to be open able for vehicles. geographies, And ride they on we able to of provide best not XXX% generation early the networks, question want And the to able up get scale the out there. And a can that. we rides third generation, time. the of entire there's they I autonomous does. up not riders ridesharing way will be will think

the that's And playing in So, see position. the our we kind we of ourselves ultimate like role, ecosystem.

Eric Sheridan

All right.

Operator

you. Thank

Benjamin from comes of ISI. next Black Our question Evercore

is line open. Your

Benjamin Black

two. taking have my for questions. Thanks Hey. I

subway data we've seems trips TNC York. has over XX%. New about like only So, in ridership some rideshare at And looked are done here it And down XX.

how do are? next you. what And you shifts competitive these be update XX of the drivers moment? public transit have So, to reopened, or seeing environments? out, so. at terms do shifts these you it'd And over or in months see think great durable, secondly, in playing When Thank seeing an incentives you are how then share the for from cities And trends you are of on riders? the terms what have

Logan Green

Yeah, absolutely.

that can first Brian the So, maybe I'll take and of take second. part the

forms are I transportation. think In terms data the in you further than So other public transportation. of public down of most seeing we're same general, is transportation,

people As get from to some And for alternatives. of groups other people. large look, space look

So, there. a type to of vehicle. great versus and kind to often power we and different a average offer who seeing great with of bikes think commute programs, Pass above been transit. alternative open to Lyft to their working of uptake our able air for we've folks scooters some as move even for pickup looking also seeing prefer the We're in travel folks, services, employers transportation are from public We're with

of what really terms doesn't, and say. to in what So, sticks it's hard

habits. to to migrate a in a once I do think And here I will quickly out back second there, old stick little part? there. vaccine and think bits will Brian, you take want probably general, folks there's pretty

Brian Roberts

And then, with Sure. I'll about ride the talk And maybe some competitive let just some me environment. start trends.

We As what represent changes. happening in overall US across aggregate hometown you're the and is doesn't necessarily I time, what report said in seeing your last Canada.

Coast weakest region. studies York. showing And stronger West much New the some are generally is would say The to-date, including recoveries I

the were example, XX% Francisco. rideshare of recovery rides the notwithstanding October down in For year-over-year other San parts country in in

Now, faster. other recovering regions much been have

months been New cities than for XX% - now in City XX% in a figure example, our to year-over-year, top roughly I less XX were to New down this three about X.X quarter in had York row. of than cities XX%. than less has July, down recovered XX time is and a York And our top less want October, For down at call be doubled the up now of

the of competitive that just I financials our use Now, in terms environment, I would the helpful. sometimes think most

For sales as million these in data two million incentives or XX% we've These and just terms so maintained a think below revenue, XX%. year-over-year of marketing further are I current to quarter a sales reduced the classified percentage we've points row points. in by and the marketing from just two $XX of revenue of data $XX second telling telling environment. And X%

Benjamin Black

Great. Thank you.

Brian Roberts

Sure.

Operator

you. Thank

Our Truist next Squali question comes from the line of Youssef of Securities.

line is Your open.

Youssef Squali

you quantify can guidance maybe And guidance Great. or the just XX. earlier for - maybe QX, - just for Mark's or about states second it Thank to Thank make any now, Prop just around up question California plan rest out. Prop number pushed the is QX. the what the Two quick by you or does for country of XX can me. you basically follow to other maybe meaning XX that the QX. gets on California, Prop that actual very breakeven than extended questions speak on assumptions if to of was XXXX any the the expectation then you. policy that gets Brian, Does assume One, spent much. extension And

Logan Green

Sure.

So let me first about talk Prop XX.

Prop John pass expect as XX the additional law so once in And through we mentioned, becomes to costs. California,

we're because a obviously. marketplace know, You

adopt concerned what more will analyzing conservative you if overly much think definitely our to overly change drive I and third but day So vary few not similar - still city necessary we're is time how not margins and way, outlook. would not a of we're on this in increase this we're can terms of marketplace. so states by know, again our It by

we of will the QX expected down you less terms expected. and pronounced I be In between QX highlight, to know, because step than spend. policy originally try

If you October over QX, look increased to And we've and at spent QX down alone. it our by and $X.X QX, between between public million, $XX only QX in going million step $XX million. it's spend, and for about policy already

XXXX from we expect than there leverage so, in that. more would that And be

Youssef Squali

you. Got it. Thank

Logan Green

And you safe and time hope our All staying everybody call talking look we and Well, next for during to with healthy forward thank everybody everybody's quarter. today. right. joining this

Operator

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

disconnect. may You now

Lyft (LYFT) 10 Nov 202020 Q3 Earnings call transcript