LYFT - Earnings call transcript Q2 2021

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Operator

Good afternoon and welcome to the Lyft Second Quarter 2021 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. to Investor conference Relations. like Banerjee, to now of Head would turn over the Sonya I

You begin. may

Sonya Banerjee

Thank you. Welcome the quarter to the Lyft June XXXX. earnings XX, ended call for

to call initiatives statements. Lyft's like Joining be to President, to available the you call Relations A John prospects. future has statements Financial Investor long-term Logan results I'd business, recording continuing are opportunity ended. Chief take will financial and our remind of the our website and to future that on strategy, shortly Brian and this Green; me our Co-Founder growth we COVID-XX Co-Founder discuss results after call, and at be relating will performance key guidance, pandemic, Officer, today Zimmer; expected of overall of during This the CEO, and impact conference making this the business forward-looking investor.lyft.com Roberts. this includes and

are regarding business, results We known our and to filed as the our statements actual particular, current in for or first will from risks also differ of cause our quarter markets X, as and implied make well These May materially regulatory in will call, factors economy. those risk subject uncertainties could August those the in XXXX, this our quarter and unknown XX-Q XX-Q Form be included projected to X, and uncertainty that during statements described XXXX, that the unpredictability matters. and for XXXX on XXXX Form of second the filed in by and

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

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

Logan Green

Sonya. every beat Good momentum. had QX our Thanks, discuss metric, everyone, I'm across our call We afternoon, excited our we joining results. outlook and have for We quarter. great thank to and growing you today. a

of This quarter, odds we to becoming navigating crossed the hurdles and the big member had rides, more. list. American in our our strong milestone thanks adjusted special Lyft extend a shared we've hard inception, deep the quite and and peer-to-peer EBITDA achieving and launching transportation, to to from we bets our sights want scaling Today, every consistently time. Since to to pioneering for largest I with made belief the We've to worked a this regulatory that North profitability bikeshare mission. We've we've add each on track operator, community. a innovated to record. built some defy

reach year our of peer-to-peer ago, that it's business work how mainstream to milestone made hard than took to It's years dedication XX so ridesharing industry. now sight Lyft exist. in million didn't XXXX, Less significant possible. Ridesharing and changed. a Your much and a for has this for X is rides. it and easy launched our lose

This come profitability incredibly and ambitious team how our reach was to had XXXX, Now think EBITDA fall of we target, has we far millions the hundreds facilitate I I'm In out. the announced rides cut XXXX. accomplished, of and our adjusted about how every of of plan year. work an proud. When much we in we've QX

that in than and company. DNA. at the now and more of built EBITDA $X same the adjusted the against Proposition odds billion. and in out pushing fact of once-in-a-century million. evidence more announced been we business recovery, California, while And global to X every early EBITDA our we've this to had playing achieved pandemic clear the initially core expected Then I hard markets. to we in our quarters achieved was profitability that this back John in invest around largest of a a this is the of we business the is rebuilt Innovating than year, to a travel, our for we and together. context, hit all commitment, imagine an We decade. this halted For stronger. industry stronger time, quarter And full $XXX growth. literally loss relatively assessed XX for aspect adjusted The a backdrop. But We challenging It's close fiscal our for the loss continuing was mission, have rallied milestone in fact. one team earlier prior fighting much

expect adjusted Going maintain profitability. to EBITDA forward, we

letter We're it's a said IPO, $X and I'm attacking trillion we larger incredibly balance build lean especially growth, going with continue from us. front road early by strategically growth As significantly to into about the investments our in going still deliberately market to opportunity of to map. profitability excited company since our our in our we're in original founder's days.

but it's quarter beginning. marks the milestone, just important an This

from again. as communities we'll continued by moving Airport specific and get what lives outperforming the the were the to year more the operate in, midpoint to June Rider across than for rides the in QX of QX. nearly growth Our doubled XX% a ago. particularly reopened markets were in XX%. this were nearly mission in year-over-year, than more and year-over-year. and what to people's I'd quarter-over-quarter strengthen January fact grew our quadruple on a working continue by with quarter double second we deliver is want and transportation, world's goal. to Revenue in million QX June. they few Active increased like XXX% best Demand outlook they X.X Riders were to now people from more improve highlights turn Active that reflects to than

Given in investments up made at increased in the faster than than significant XX% The drivers driver more ended demand, of QX throughout in supply a we quarter rate quarter. number strengthening and the year-over-year. QX

QX. the earnings elevated While across hourly prices, drove high demand Drivers' higher average than ever an more drivers before. U.S., in reached all-time earned

use to Turning continue to The using rebounding. June, platform Lyft and versus drivers we the of nights out grew number July. cases weekend and see

improved rider back Shared rides select extra We'll our safety. bringing conditions and additional reintroduced shared Brian balance also our with our most rides performance. capacity updates. can provide over to marketplace. these But cities as contribute financial continue to and expand health call key drives since We will help he in does, driver before option as review the in business to allow an in John I'll our to affordable precautions promote markets turn

Brian Roberts

afternoon, an Thanks, Logan, We and was exceptional. revenue everyone. good truly generated growth, profitability. time, year-over-year quarter, truly, and for XXX% exceptional adjusted first QX EBITDA the

The rides profitability, level achieved business in as of the we second XXXX. well rideshare still transformation validation provides quarter reached of below with adjusted QX EBITDA our powerful

values. passionate details, to embrace helping members the Lyft attracted through our our I always our milestone possible. for this my who about make want team walk mission talented has I before and to are Now extend gratitude individuals

and list challenges. a will onset responded vision. resilience inspiring a expansion. of tenacious COVID, our faced the built our growth long-term Together, focus With of They healthier our with continued we've long stronger support that financially team and on and a business

a is of business and work. reflection Our hard their commitment

it's that that while important and In use achieved in always addition, QX, note important in create business X, invest intentionally driver we It is for from we have day known our our driver-centric. opportunities them critically rate. to been effective reduced to take compelling our to results we We've community Lyft.

In generated investments to increased As on strengthening help hourly in sign-on Logan us drivers and incentives drivers from retain platform. mentioned, second grow we demand. the earnings hours significantly to meet record our bonuses quarter, and attract, our

to classified the year the revenue, business Lyft still Since EBITDA XX% encouraged above increase skeptics why fact, contra adjusted makes with to events some revenue over the as and achieving sequential going transportation in our network as increased question sense. $XXX ridesharing the million, debated In incentives the XX% well have deeper past quarter-over-quarter model, inception, over profitability.

demonstrated now value tremendous of focus. have our the We transportation

fuel Going forward, investments growth. we expect to to long-term increase remain adjusted as EBITDA-profitable we

the to I filed non-GAAP move are found is want with indicated, that I website otherwise on, exclude and is other Investor our GAAP Relations and results on follow X-K select note be available Before and earnings non-GAAP today all furnished to reconciliation which with release, unless Form our historical may in measures that of SEC. compensation income items. A our stock-based statement

the details. move to Let's

rebounded rideshare in slightly decreased beginning we In increased growth reported, March. and nearly of previously QX, number accelerated as ride XX% elevated Active million million. X.X May, XXX% more quarter-over-quarter states June the including to volume reopened, in growth. Riders average represents by year-over-year volume Despite then in prices, to rideshare and daily quarter-over-quarter This further relative As April XX.X over ride California.

revenue the our Rider we of $XX a the Rider quarter-over-quarter. which combination this to the to help to in per revenue riders year-over-year was increased $XXX of as accelerate revenue from to $XXX especially dilutive our and on million in in quarter or revenue. of beneficial trends, the addition activations contribution our near relatively nearly increase $XXX XXXX. Rider X% increased pricing of our are $XX had million contribution month-over-month to revenue margin. example, by substantially EBITDA new the Argo a XX.X%, nearly record like Active which autonomous X% above the quarter-over-quarter vehicles. activations decreased Similar million $X.XX June. exceeded was of metrics of an QX XX% and data margin development the activations, was Rider $XXX to headwind quarter, to to and since QX on over Active quarter Contribution began since rideshare up than or price XX.X% of XXXX. outlook relative profitability As revenue QX prior The from to XX% margin less strong recognition contribution fixed rider of drove to offset per from adjusted certain depreciation margin per rides, outlook This Active million the for the to typically costs quarter contribution from second less benefited to million, million. $XX.XX. sequential these time costs. impact The of of XX.X% related drive led outlook in of in states X.X outperformance million there's more level to reopen, end revenue increased QX to in Helping led We first Xx a generated Revenue further quarters generate in by is record correlated increased well XX%. over ride, revenue which QX all-time second elevated return the midpoint midpoint to of which as slightly Riders, $XXX a May of licensing exceeded the million. helped are of well outlook and was rideshare computing and

For $X.XX. each dollar incremental contribution by of increased over growth, revenue

by As required agencies insurance reminder, changes excludes a periods. to contribution attributable to historical liabilities for the regulatory

discussed, we've As development the results, entity of volatility reinsure this insurance quarter, net periods. no signed was historical financial April help we reinsurance in previously to recoverables XX, policy. In on reduce for from adverse our an select there second to captive agreement our

QX expenses. operating decrease XX.X% flat R&D a to roughly and for revenue the million, million, expense to as XX.X% in down was support $XXX Let's was Operations with expense in from percentage X% and Operations of declined $XX in level support expense QX. QX. QX year-over-year. in of move a QX,

expense in As of was $XX declined in million. from revenue, sales percentage down XX% and QX, a QX. QX R&D to marketing XX.X%

down flat marketing roughly revenue. QX, X.X% quarter-over-quarter. quarter-over-quarter. ago and down expense represents of $XXX revenue only As period. and Within basis a XX% from the sales of QX's G&A XX.X%. $XX with million, percentage incentives sales X% revenue, year million a or This G&A marketing, expense a of as XX% were was was in XXX of XX.X%, was QX points decline over in percentage

better In noting It's our of $XX line, QX terms to of items. QX million our and loss of worth the included outlook $XX million $XX than $XX of related $XX midpoint the million EBITDA X adjusted between profit that adjusted benefits million bottom million. EBITDA of over was

adjusted to outstanding EBITDA Rental totaling long quarter-over-quarter cash these captured were Separately, able exited QX cars. gains our settle we the increased Hertz gains Unrestricted First, billion. to Without a from bankruptcy. investments profit slightly and ultimately million. $XX million, strong remarketing vehicles Flexdrive $X.X the market receivables cash, of and as short-term was given used for equivalents we've Lyft $X

in to in equivalents QX short-term of unrestricted X, cash, sale Level with increase investments cash the We and expect July. closed which again

to is not with QX move emerging while in case I our in that of QX to a in our Before counts COVID rebound outlook, the pandemic a declining fueled remind I markets. yet and want variants over, certain especially return business, investors restrictions

on among rapidly Future an and volatility cities. new our keeping developments can expect and eye cautiously continued change variability are may We conditions impact outlook. and

in of COVID March recent rideshare best average our month Now case the daily was since terms of in counts, trends, despite July ride XXXX. growth

levels riders with been they providing impacting have focused relatively avoid are rider to less-than-ideal and faced To a service Now are date, best our users on industry-wide. with long-term experience. loyalty, patient we since the possible prices

of demand demand from and limit this to will expected, temporarily it second the that It's QX quarter adjusted recur by tailwinds in operating rider the EBITDA service especially ready not growth also the federal expected of is to in will expected and stronger are drivers which trends. degree, and incrementally to revenue elevated ride, We plan levels we the of unique This decision, profitability. line, rideshare our inflection contribute add important new to ahead recovery. be additional rides. positively satisfaction levels current caused the elevated and to leverage. more understand quarter dampen per drivers potential supply expect we we environment recovery believe top maintain pricing to expiration unemployment to of and increase than though We in investments same certain increase a improve The strategy right plan were in given benefits, sign-on want to even demand adjusted is the EBITDA. upside and factors the second quarter-over-quarter X% QX revenue prices impacted Although revenue leverage

elevated prices decline for a on will maintaining are as we supply sequential investments community. lower our mentioned, to revenue rideshare help And expect ride we I As rider in a QX result, basis. per

Now closed in July our $XX X, expect which QX. roughly to QX relative of XX. close, sale to With a the benefit we costs will from on Level mid-July results remove QX financial of million related

We also licensing agreements. generate the to related commercial to expect

the elevated X sale. cost driver in with supply savings However, the impact the QX, of investments, will along exceed of lower prices, Level the quarterly

decline landscape XX% embeds expect XX% implies revenue In terms of we quarter-over-quarter. to lower growth to driver increase due to XX% $XXX million if in elevated is million investment. between This $XX XX% bonuses estimated sign-on we to operating supply our and million to incentives. expect outlook outlook, $XX new demand between and COVID, barring million. an a repeat, of the And combined prices, material with impact and $XXX This to between growth year-over-year of our from stronger,

between pricing and margin $XX of million XXX adjusted QX evaluating headwind from of to gains. expect terms the trends, expense uplift contribution net we be investments. growth as QX supply we generate XX.X% was basis is which for to contribution described, margin to just XX.X% I offsets million quarter-over-quarter remarketing In leverage profitability, lower $XX the When point from volume the environment that the XX%

This EBITDA is the In $XX terms the the of relative and in million bottom of QX excluding expect of and will from inclusive line, lower supply $X and million, EBITDA the $XX Hertz of the remarketing. $XX investments million from we prices. between impact be adjusted benefits to million adjusted that QX,

based X% implies EBITDA beyond milestone. anticipated Lyft adjusted the of XXXX, the we X%. additional and This The repeat and basis that in service full compares recovery, million realize second given to adjusted my with a momentum to between QX excluding of we extent half benefits. QX, plan $XX in Separately, outlook important our another levels our will is demand incremental expect profitability earlier we on range, in EBITDA on industry-wide X% margin and recovery year which achieve supply now the target trends. expected comment, leverage Just to reinvest

X in closing, key to So want I emphasize points.

First, much business. a stronger we've built

and the the we've changes of Our clear are lasting. exceptional made, improvements extent quarter to designed be into provides visibility second these

continue ride the structurally more pandemic side We efficient emerge in. other of to than per on expect to and were we the profitable going more

avoid a interest Second, for an to demonstrate on of growth Lyft too the is profitability profitability our it milestone company. we and of over-rotating early. the the Achieving model, are we maintain to At plan we adjusted best profitability in EBITDA important forward. strength same time, to is shareholders going believe

the large front untapped in we market Beyond recovery, us. opportunity have of a

to our long discussing Lyft expand in are core runway. the growth look TAM which These of excess new in plan forward reinvest profitability initiatives, competencies a quarters. ecosystem. have growth $X our coming of in EBITDA of we strategic assets on a a or monetize trillion, the We provides that and investments portion which adjusted We to part underpin

As Logan pure as significantly in to shared, massive a larger of expect company front as we transportation-focused the opportunity play. market a we us attack build

forward, in and these profitability more thoughtfully considerations deliberately leaning will towards Going in we days. especially early growth, balance growth investments while

financial how Star shareholder is is value. We to most North generate this maximize with share. cash the believe growth long-term Our free long-term per to metric aligned flow

So our on updates to the provide and turn to with key strategy. over me business that, it John let

John Zimmer

the Thanks, profitability We by possible. as making drive our Brian. I'm the initiatives will ahead QX for maintaining of and self-fund shareholder that Again, quarters we energized performance forward long-term this value. for Lyft community want thank look I us. excited to to

fundamentally know service, we've That's I'm for experience. than and demand Let and conditions is came improve the talk overall initially stronger our a good service Industry-wide, me hard working ideal for prices faster going anticipated. QX core have to in start depend riders. we on and progress Great hospitality Demand and levels about been excellent people seen are back us We brand. made. to we've less marketplace to supply, outpace with dynamics. thing. than near-term and the

Our in efforts To driver supply to delivering critical riders. on end, this usage investments drivers new in improve our we to drivers that QX. welcomed wait times to and for by QX more versus riders and grow are and XX% ramped

In have driver busiest more. time than on quarterly have pre-COVID. It's of and driver earnings growth hour This ridesharing saw have also In we compelling average drivers online that as for markets, versus clear earning other more a with been includes activations. record a earnings to an $XX remained all continued believe Drivers drivers on fact, new may one our meet We some achieved in serve flexibility, we time. more post-COVID over demand. will been earning ongoing tailwind elevated opportunity, app-based July, which platforms. remains highly exceptional an earned

structures access the more most to to engaged, rideshare of out app-based it the include Lyft the to we receive costs keep versus are maintenance build work difficult, with experiment comparisons priority while also make to ride rewards forms higher drivers that can the our their to exact Lyft earnings with incentive other supply new benefits as even request. and addition, progresses. platform. available be may In use that them working to active rewarding opportunities Ultimately, are reduce for to recovery can help continue We'll help program drivers

other going participation more better also in drivers applicant that reasons that make have can people that seek the earning federal weddings our flexibility. as back ending. July, roll-off personal we growth better. activities. of the may majority we in We've save driver to a work. cadence. engineering redesign out since income. out a a of resume to nearly supplemental Likewise, the the app roll program In tailwind, opportunities investing households QX, experience to vacations, for been to driver In opted And to and school generate of continue year in launched we states vaccines hopeful technology expect incremental life was an major give early, their of and use more uplift more product normal We ahead can Kids to of saw are out, Lyft of the especially

an while more line term. and intuitive managed impact new a an marketplace actions off-line now one strategic our and it both marketplace, identify in dynamics confident to we've for similar hours or The we've immediate and the The for bottom we're as of both decade is Just easily very our rides. made idle. rollout much driver drivers in earning taking the are long on increase had interface for short example, resulting opportunities in

power Let than has Rideshare scooters, and that robust is me transportation powers make optimized the and all switch and gears every is and demand, marketplace network available decade. the last This and of the is rideshare, a rentals every built options we many about that. platform Lyft network other more talk of across Lyft the transit broadly. as ride as bikes, is network the things. been but critical, technology among well The over the culmination our match dispatch, platform technology what more

We far continue significant will future. and the to today best technology as invest returns in generate can investments into these building the

drop-off bring millions overall adding marketplace. own in-house For margin the Lyft, years, the building better of investing few maps drivers, are example, be promote to been and the Lyft, these can for our recommend of last specifically year. each our By for network. our transportation dollars like better to to we experience risk, to can reduce multiple optimize to improve ones able Enhancements each our insurance technology up of over routes building pickup that mapping working additional safety, reliability in by we've and ride, cents

We belt navigation miles are markets today million already. over in select testing have our our own X.X experience and under

As this the to experience continue through possible. working iterating launch navigation dedicated progress best year, we and we'll

will riders from we Lyft to are the transportation use value new them on likely And as TAM, from these the Our be Transportation-as-a-Service. attract network, to spend less Lyft to riders. more able turn increasingly help they riders of by The more Lyft we our unlock receive believe establishing network. to Ultimately, Lyft, to but on goal likely are often more is transition like pass overall trusted the riders and to the riders. to savings achieve their to should onto we initiatives transportation more ourselves more more

the delivered our content, also Lyft. bikes, value vehicle only available are exclusive car and with scooters, rentals significant We meaning services to that users with through

the service the done reflect scores centers' to vehicle work auto high experience. Our care customer we've satisfaction reimagine

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Ford building partnerships to their announced fact, and ultimate We to network. unique forward partnership performance this help of welcoming the autonomous recently advance these safety In on the Lyft and Argo our play to network role partners our with new and can to and reinforces look commercialization. vehicles

moving valid is the a election. of with initiative Massachusetts for the that workers we're forward coalition companies part on petitions Finally, like before take a Q&A, moment the This we week, ballot initiative. for XXXX November move and a to of I'd to

solution the While benefits. advocate the our opportunities vast platform to plus to priority efforts part find a drivers our new this in flexible majority what Massachusetts, provides, of of legislative is our want: is continued earning

we the are legislative now pursuing with take solution. We're closely work the them ballot legislature we questions. to engaged with continuing potential on ready are and a also While to option, state Massachusetts are

Operator

first question from is And JPMorgan. Doug [Operator Instructions]. Anmuth our of

Douglas Anmuth

a driver you relative it just just demand, couple and And incentives. a for to fully XQ? there's $XXX understand could if Just for terms million a us XXX% with about roughly marketplace. coming looking of are driver just you're percentage second, relative where supply hoping on much current I at supply to you the XQ of incentives way how in help talk you of maybe like can in off then targeting balanced was

Brian Roberts

Doug, is this Sure. Brian.

take me Let reverse order. that in

driver talk just about then me QX, about supply. Let and overall I'll talk

investments in plan prepare just third increase current supply the and quarter, demand given our just help for conditions to So we marketplace additional to recovery.

do exceed QX million. we So expect $XXX to contra-revenue

Now the expected John impact driver strategy out, given quarter-over-quarter. this XX% QX investments, the jumped QX growth pointed as and new in from

improve in to decline We expect -- supply service QX prices sorry, we as the or conditions.

financial the decline So prices million. is impact bonuses $XX while and $XX elevated to incentives of driver new at maintaining estimated million

And to outlook incremental extent look again, of in those maintain it. million and further $XXX So prepare to right of this right that to and third the you sort for quarter, to our we additional achieved to plan into to It's grow have leverage we EBITDA just the realize we And million. really now combined. the to at just thing expect in call growth to supply reinvest do again adjusted And activation. profitability out after driver built of is $XXX this is demand.

front, In terms of number the important the drivers. of you in just just recovery overall, the it's to can't measure driver that of terms understand

of the -- number pre-COVID of per number terms well. versus increase or per the have hours rides measure at You periods. seen driver to number looking driver a we have as rides And in of of

drivers. And average the onboard we this of of of data second was point new the in as QX rides than as number year, drivers the per a so is quarter number driver more also of And than XXXX. greater increasing XX%

than supply paying and already looking to forward, efforts we again, service we're So invest increased in building quarter-on-quarter off. activations driver improve to And to in more are XX% QX. going by continue levels, these

we as Just new point, an increased in data driver month-on-month. July, activations XX% additional

Operator

Our Ygal is Securities. Arounian next from question Wedbush of

Ygal Arounian

quarters maybe want Anything coming second, over on that rider I normalizes? months early incentives. business our backwards-moving any your variant to -- for kind spiking. significant the on how of Obviously, you're incentives. right And and demand. ask Delta is cutting now, you seeing specifically, kind the What's update there outlook that on and rider momentum? back And travel you Are too? then seeing there, expectations any given you're of

Brian Roberts

Sure.

Logan Green

Brian. ahead, Go

Brian Roberts

Well, marketing start sales and the on let me comment there. and

-- you sales this at had we quarter incentives and and just right? X.X% at at kept of we QX, is and X.X%. the a fifth were mean percentage marketing I you in XX%, our as if QX, we look marketing QX, a revenue, now when quarter look where at row in in And we In just below sales a were So X.X%.

terms we so in And on really about where feel the again, demand side. of we good are

As X.X if jumped riders on million are And XXX% Lyft, for jumped out, year-over-year the QX. these so at new Riders QX. time in rider those Active pointed in over activation, look first you

that. brand to on it’s trying experience, innovation, win we about stuff customer But think terms of to to it’s preference, I John It’s the stress So we're feel the it’s great what coupon. product we want our in not the describing. was long-term just strategy, repeat that innovation,

competitive investments have here So advantages. got lever to we believe that right the R&D create the

post as term, periods rebounds. future absolute likely sales obviously sales so increase than will percentage as and revenue as expense and lower a But of pre-COVID. it in marketing marketing revenue be expect And longer we will was COVID

Logan Green

Yes.

rides. use the was rides, travel. out QX stood -- on of I travel area personal airport well say, really one that I they And as would that there's consumer the one stood that terms airport obviously corporate think did, out In case historically, in as business side,

of to terms overall In see we airport did strengthening the rides. the in results, just impact

as is had in rideshare of the Xx we frankly, the XXXX. bottom rides April was X.X% airport approaching from of which at a it's total in in rides X.X%, quite X.X% XXXX. December And so the And up percent

a And terms so I think in think cases this expect that in is all of I combination, post we return. use to recovery,

should we We the next accelerate strengthen the business year, really as to expect office this accelerate travelers return then time same more that to to commute rides begin companies around year. expect increase, and and

Operator

question Stephen Ju Credit next is Your from Suisse. of

Stephen Ju

interconnected kind of I have question guess the I incentives. an on

I So or maybe for guess John Logan.

quarter, third in competitor probably similar your driver increase of you respond incentives as So payouts a will presumably, the way. in the

billion what So XXXX. which over been reach you're in about spending incentive spend going year, it looks this is of had $X like you Xx to

and take, thing and and I So you this the on making more an between doing the that money versus And earn to rideshare other elevated worry for side to is matter you're drivers if using guess they be of that I rider guess, I about just guess ASPs the to riders at a irresistible of else prices be some the danger doing? and something attractive, steps of can of things X high of things, things we switching that about, if remain is too they perhaps the an one the especially are off the the of your option. level, as have

anything terms are seems or growth switching like it riders regardless there off here. of But So coming back among is churning maybe you're the sequential of seeing existing users, off? given in activity the size

Logan Green

question. Thanks for This the is Logan.

And and other chocks drivers impacted and we've COVID large whole the the sent So market businesses. is well at pool. out -- us most other taking the the players host and we've labor looking market that at the broad, first it on only as always of through looked obviously, driver whole the there view, broad significantly labor for viewed a side, has as of

really we're of and just driver as is labor the running market. And incentives, move what with sort for What's in business our we at to day along dynamic. look pack, that it's It is of And on the with city? of to stay the at of right? so unique. It it us driver they blend that price job time is top as

service more always to driver pay the we're just paying -- drivers as pay come as the And more the pulling platform. And competitively we're looking from levels. and best it's increases, so It's onto ensure from we drivers competitor. our broadly. provide closest pulling And market not

in kind kind that's We of look long our view. sense. at So I'm would don't narrow color of if more really be it Brian, a helpful. wondering

Brian Roberts

Yes.

something let say me in. to John think and is chime going then I

John Zimmer

numbers Yes. we deeply been point everything one Brian make in to of X the -- that I'd One years the say, underpins other and is almost some that we've about just the recently you thing really do. marketplace technology talked I last, over is want see has invested

with XXX and XXX in a you an those where you we like with cases could example, rides drivers -- period complete and in complete technology, not are can you actual bit your XXX if rides routing which about, drivers. are of X-hour XXX There a say, prior the XXX, drivers. more same talked now, with as So pool that But mapping have numbers. these region, improving to

they it's and it's Drivers for providers. for that's good good business, and more, And downtime. drivers. the Now earn less have good

are hope investments a reports show So really the but will we more to making report the to under we've this X the come, like because that years the often the earnings been and it's lot an hopefully hood. invisible customer last in over of in earnings

Brian Roberts

just in new add, being drivers your your during on the let have pivot general, Stephen, stopped I'll maybe welcoming drivers both and and to companies question. driving would back part focused me onboarding say, then just of second who I may pandemic.

appear to does to and with the so structure rational investments. design of third-party And industry generally data, according supply continue

So here change expire, think terms we And as competition. vantage, our federal unemployment we it. And to tailwinds. maintain adjusted just see supply plan a benefit I EBITDA we achieved strategic and from the benefits QX, beyond from believe we in of will organic profitability don't

expect just delivery to of slows we economy, king. tends may be gig see also communities remember, And once We influx as an drivers delivery fully reopen. that rideshare

the which tailwind. difficult, on greater we organic studies, believe does based provide earning are While comparisons opportunities again in some are rideshare historical exact

satisfaction, we new up again X.X tailwinds, brand nearly XXX% of people increased these we would with we activations, of prices demand. demand. patient year-over-year. since look, supply-constrained was riders -- industry so rider do And right which much I is Active these terms say, for of new again, the in XXX% ready as though additional think Riders, alternatives And part improve Lyft there's your given year-over-year, mind, have the again, in But be keep now, up of of I they're just expect less-than-ideal riders, levels ahead service in second added over faced million and want QX, been just to in to riders, some industry-wide. question date, rider are XX% quarter-over-quarter. relatively your terms to And again

Rider So will again, we expect And we our marketplace rebalance. our peak. fully eventually, Active prior to exceed

Operator

Our ISI. of is next from question Mark Mahaney

Mark Mahaney

Can about new over talk guess, of created And in data? with new potentially Could throwing you that that -- incremental I use say I reached Lyft ridesharing concerns have over kind new margin for lower about that's profitability remember. still can't you the that, for seen patterns, And if you may then secondly, taxis see cases? clearly at you've much whether transportation, use your you goal cases the and demand. profitability safety public over the that have margins? into long-term noticed the pandemic And

at a long-term think your out the world away. time you laid I IPO, and of some margins, that's

you or case in now what at what very year thought can ago? we So terms you've able environment are thinking of X be to given generate what term, a the obviously, scale, business all than been of in margins kind the now long different a accomplish, would

Logan Green

start. I'll is This Mark. Thanks, Logan.

Save for Wait the start with. to that the was the can And our most, we until of a wait nearby up And product In some a we and we a we're we I hit pandemic sort captures at of of at within we match driver terms sunset off we & think, use that great the them time cases, Shared efficiency something the the riders another of innovations of It still And Save. a beginning as one give unlocks. that's option wanted specified trading money. exciting what arrival little have of rides calling is window. riders Wait longer scaled having pandemic, & of

Shared started just couple So rides. a reintroducing we of weeks ago

learn to and together. those side going of we're both side and of work by how what folks prefer sort those have So

In terms of riders who the there's of good use chunk as transit from definitely sort of moved kind public hit. changes, over our case of a pandemic

a saw ride know and we a join sticks. So network type imagine exactly it's will increase And stick. to the We good of sort chunk new of there. how frequency much tough rider

back go little has Transit a overall. depressed And it's transit. bit, picked ridership but sure, I'm some, to will still kind of up

seen bikes and the is double just on scooter business. volume We've Another year-over-year. front almost

So clearly, there's outdoor preference a real transportation. for

there. things car take we of of terms still interesting to and transportation, for some broader we're I driveway. of a a exciting and in fleet regular know vehicles. the of lot seeing business riders a their going think And manage their to Lyft in in as And do on with company us chunk there's things side of people on good we So view where park Lyft helping the kind personal the a have users

more more looking can help so them. And we we're and at ways that

to want on know make healthy we the So speaking, we don't economics? broadly. to the some expect continue did Brian, recovery, rideshare growing broadly of more the and business long-term but in a you we full to timing, weigh expect market the

Brian Roberts

Sure.

Mark, pandemic over. So obviously, the isn't

X years only this And of little ago. X-quarter where time. so public we over continued we're just And a are, we a terms outlook uncertainty, at in went providing look, given

progress today could So to And volumes QX it's But on still we're what progress. our our date. not relatively results speculate am reach. on our to speak frame early, but about margins going pleased again, I incredibly ultimate

Operator

is KeyBanc question Ed Next of Capital. from Yruma

Ed Yruma

response of that consumer governing Shared rollout the update What I the onboard into know rides? what's a think first, any has Pink? far? what agreement And see of customers the thus product? follow-up JPMorgan then Pink is retention to that And as question, guess, on sunsetted. And the those I you been I

Logan Green

Shared On Sure. we're learning. rides,

with we and way. better picked the number product, provide underlying systems haven't we've we how up, in so of experience sunset in while the year we a So lot was of riders how real done reliability, number better it the to think a rebuild a world. took to to great quickly we the reroutes of destination tested in the And experiences going a both product of of of can that and on work or along maximum it's sort terms but -- they're bottom, terms get to to of they're stocks going sort get to quickly that top of lot

it's Obviously, is that like. performs in see bringing product the what with how riders. reception other the rider to multiple where one And see and we're car to so you're it back

very learn, for So adjust the dictate Right It part we second Lyft it's small sort learn looks Pink? area volume. roll-up us like. low on of we question? of of we'll just the from the And repeat what you want see to to sort reception as your was now, and Can been there. at

Ed Yruma

to program? of get customers wanted kind just I free a had stayed you maybe maybe agreement on sense where the year an I to customers X-year that how pre, got the those the sunsetted. on Pink as I that JPMorgan And their generally. with Any think, believe of update many

John Zimmer

think this on this reasons for to JPMorgan Sure. Chase's piece, then we've I members credit -- and the been back partner. supported it even gives higher-level about year be is co-branded to continuing continue piece include We card of this a to really on Lyft. even we're our to work Chase and been through Xx excited take John, attractive. Pink. for this the more extended thoughts Chase the travel Logan actually And all Overall, the millions And promotion pass program. rides universal across we to partnership vaccine the with Chase, can pleased the the They've us recovery access point Obviously, use partnership board, great to on benefits rebound, as continues card we with program. the with members. will come

Logan Green

the Yes. And just has not to sunset. program be clear,

for free the was additional participated. X still Sapphire and an who extended designed those year -- market, all as a always in out months was in for it fact, folks That's new it So for all all for members. there

So benefits. that and very new continuing excited and around kind metrics still It's program any about disclosing investing unique of in We're adding still a not active we're Pink. is live.

you're car, have into delivery member. We, of Grubhub+ if of a have book Grubhub, get now rental program. course, a Rentals -- Pink the to we you So partnership leaning you When part will Lyft unlimited we rental, book free Lyft as Pink SIXT upgrade a free used members great with free are a upgrades. where a a get

the as all right? of it's moment, Pink So we're and future in now, our right for supply But Pink side big far Lyft of supply. the been leaning we've as our keep a So holding on valuable the into making But about play marketing focus role will more as this riders. more kind back market, to going of company. at we Pink,

are driver the leaning have we on to and a to onto great waiting we bring drivers dimensions so road drivers in rider. all And for engage every existing and new make sure

Operator

of question Our next is from Brent Thill Jefferies.

Brent Thill

don't reason left In month. past In it trailing think last for maybe you the kind out releases, time? this a monthly why this release, on I you you put have July of Any update that. color and

Brian Roberts

And maybe too we -- quickly. I probably spoke

if look our was rides, March and month-over-month, daily We average July rideshare at month XXXX. So of best you it an saw since high. growth was all-time

Operator

Next question Bernstein. is from Nikhil Devnani of

Nikhil Devnani

A couple, I may. if

question, retention reactivating of to you in that you Or that roll funding driver applications. drivers maybe side, are again, on they are around? to kind Are then capture On the incentives? and to rates second start what federal front, are mentioned reactivating, with some the states off engagement better sticking reactivated for programs the drivers of these seeing? certain driver the shorter where is And seeing driver

like versus looks benefit that other what states? quantify to way any Just

Brian Roberts

This Brian. Hey, Nikhil. is

on think and part let X part -- come X. start will just I to with me I back

saw on So too. X, part last we this summer,

again, Because remember, here. see a have you we did In drove When hours drivers, XX% less points jump. drivers of week. initially than to XXXX, couple per data unemployment we of benefits it's federal So XX last summer, expired income. supplemental most leads have

you are benefits, to again, enough Lyft income. may have using just when that benefits. the have need solve So It generate it you may for better that unemployment

saw We saw leads in we last the it it benefits so states jumped. that summer. And early sunset the that

benefits does say, we'll covering maybe place. excited platform whatever because in and then have or supplemental I were that that has record remember But on in the state sorry, who the will so driving that the we're are I And increase And income were retention earning government I drivers needs at mean, the enough on the activating, to program folks first hourly think environment. again, think, will phenomenal earning September the Lyft -- drivers they where full I right top benefits directionally, from and were the -- they you a it some from been all-time sunset. of -- see, needed are federal X why general, We're on in this terms now. leads earnings

So it's very lucrative to drive.

imagine, And in so platform you environment, a time. onboard great it's it's if this and can a you great

seeing mentioned, of And too, -- very that in saw activations. And again, strong strong. QX. month in July, growth has XX% quarter-over-quarter mentioned, month-over-month in been I in driver growth John just new the we're XX% we retention activation growth So as as

Operator

question is Brian from Wells of Fitzgerald Fargo. next Our

Brian Fitzgerald

routes amp want Or about, I guys drivers. Maybe is go also as these predicated to and get guys, you comment was just do optimization X that up road your talked that that? faster, And other? ample you can is quick And out onboarding to get you can How follow-ups, it supply each easier -- optimizing properly just X impact drivers of certain on and flywheels of on so the ilks it's of have then traffic? that the to technology, -- volumes on do does is driving you tech and guy you're back is a ones? it onboard X X drivers just mapping existing the get marketplace versus new as take yields this overweighing there. much And those from those flywheel? that do to doesn't left that route, or so you marketplace experience And are experience levels more a -- momentum of drivers

Logan Green

second you volume first. of flywheel by the I'd with say the I'll maybe, take question, the broadly. part improved the if start Brian, is

we volume the and routes more learn. safest the have to the And of productive like look we what more the the opportunities characteristics most drivers learn learn So are, we what the safest we more broadly. platform, on have

volume have we driving is our can learnings. data learn all of that historical obviously We for important So from.

we the the your another crux kind of gets the kind we're kind versus data reactivation question. Brian, real-time volume extremely want factor. of sort if of new not have, to at you of So to driver if talk that of activation. kind But of we're layers to real-time of -- sensitive data on is the not

Brian Roberts

Absolutely.

I Because platform. -- not -- is on can So and, right the are just sorry, redesigned as start on right? day, on driver think has now, hour I which the been fantastic. amazing we activate an either turn it almost immediately, almost to So time or, new it's which bringing an And mentioned, it's drivers. new it's the of you can you earning we any and at an

as mentioned, really So I is drivers retention of looking new strong.

drove terms deep are just of of -- the In ton COVID, call onset they maybe drivers who a what platform. resurrection, And feel I'll our we then with it, these didn't safe. on maybe,

of as are folks to think regions, have cetera, Delta, et nation some those will we'll back. the we get which through certain potentially get vaccinated, come to we I going impact see

ecosystem As to allow historical the gig based I tended tends to of earn of -- mentioned, in has sort more. the on economy, rideshare studies, to folks

the independents folks see work you'll gig that do rideshares. to who we the like expect to And from back so come

it's So or. -- really it's and not an an

Operator

Itay of our question And is last Michaeli Citi. from

Itay Michaeli

Just me. X for ones quick

First, just on the financials.

expense, the at quarter. support XX% this and On operations you like were it looks

you'll recovers? being the how -- range. to announcement with I what Motional? you're fairly XX%, kind agreement any than different think recently. we that secondly, see Kind any to about Argo touch Or similar are they much hoping of doing there deployments? talk in think then on think Maybe were as should of XX% you going just pre-pandemic, leverage the you just revenue curious forward And

Brian Roberts

Sure.

and off then to let So hand I'll X maybe me take part John.

is and expenses, expense slightly background do QX. as checks we an So hits support I probably up that we Within support, and in checks think operations expect tick have to for that. this operations driving area and record it

sometimes an driver And So bikes see and to growth you'll scooters. activations, just on correlated as we increase up ride there. then it's drive the

little I under. And probably go -- bit, so around think in we're we'll I would we probably think I do XX% probably a expect XX.X% QX, up or say,

that we're likely which setting and again, I will tied primarily is the a I in our for of think filling fact But it's and very activating drivers QX beyond. the it good funnel, more up think terms marketplace to up go bit. up little So

John Zimmer

it's deal a commercial the self-driving agreements on third technology. Lyft of their focused affiliates major a and Argo and deal, automakers in On string between

Motional, and through the we're be we've network And cars to to goes the the the cars more Ford the the these think commercializing fully self-driving drivers quarter. suppliers point be with plus technology. Riders can at marketplace all better affordable So our is the as this autonomous as hood about more Lyft successful. their that starting demonstrating deploy network. made you it we've mentioned, X AV made in we're working return rides, to get to back cars, of We time first more scale network, great software on really AV have on vehicles successful, the all I Argo XXXX. is under that and leading pieces, a because are Lyft help what investments the path

the to pick they routes. deal make that Argo-Ford and sure technology data right the we fleet right to bring an also the had of help service partnership markets part other is to The and the right anonymized them

Logan Green

and everybody, to one. right. All great right. for for everybody talking thank this All next you, joining, forward look quarter. with exciting With for here a being we milestone, that, Have

Lyft (LYFT) 4 Aug 212021 Q2 Earnings call transcript