LYFT - Earnings call transcript Q3 2021

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Operator

Good afternoon and welcome to the Lyft's Third 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 is being recorded. I would now like to turn the conference over to Sonya Banerjee, Head of Investor Relations.

begin. may You

Sonya Banerjee

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

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

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

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

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

Logan Green

Sonya. in Good Thanks, QX. and great for Demand outlook received We We on of far. a profitability. EBITDA you and afternoon every quarter beat drivers our everyone, reported so and our joining remained thank metric, second strong material improvement had consecutive adjusted a a call.

positioned solid we're to continued our now and about scale for are excited the recovery We built continue foundation business. we've to

riders to prior more quarter. Lyft. me turn a and highlights as XX% better $X Revenue year-over-year our million outlook. new nearly started use increased versus and few QX Active for and cases Riders the was by grew Let by resumed riders than returned using

still move. trends regionally, recovery on local clear it's that are vary Although riders the

in QX. During [ph] year-over-year of each rideshare picked airport new [ph] the out from quarter use rides. Nights up pandemic rides nearly and cases saw the and we revenue weekend month tripled

Active In to driver region. has total gears, Switching roughly value is It this been we installed XX% available valuable rides example made one all increasing by saw the of materially improved rides bikes of Bike for an QX in increased our York addition, the up bike in QX Citi deliver are time we to made In scooters look is strategically XX% year. to the strong ride Citi with quarter. content demand exclusive and just the in strong. as and volume from Drivers high Lyft New in Bike supplies and hitting retention base. past

clear, we've of some have the hour. the rides number new driver give they been but and drivers New in in in September is And be unemployment an sunset of level COVID enhanced for just the number versus since benefits found time. with XXXX mind drivers Keep year-over-year. so activations giving federal the of XX% began matters, was driver growth the robust more rides to up highest

in drivers gave more QX more consistently of The than low just and engine is rate and markets. did Ultimately optimize to good for in the hours reached field When innovations city account unemployment XXXX on they on hourly QX do a fact, requirements the support drivers, against busy, vary our the they In all XX% our This a before can pandemic is riders this business. demand. tightening from We rider rides lot our Driver marketplace higher earnings. city. and of playing earnings earning are backdrop multi-decade in major hit. level. drivers

have factors. the to same competitors Our navigate

As the demonstrated on confident our in to We've year. ability our a business. offset. pricing adjusts I'm our and elevated, an while as dynamic leverage marketplace, build automatically improving play conditions momentum dynamically change, this remained seen driver earnings We've have and out this in when even

to rideshare to people quarter with be especially about due Turning the this, the is are more summer typically seasonality. early movable been and positive. around or holidays. and This for rides month fourth trends will winter October Brian QX, to in bikes but scooters. case less strongest in happens in have more the the talk

rideshare turn provide as the continues optimistic recovery will that Looking he we drive continue before to our John cases I'll does to further its use the call key to fuel over create additional business updates, pandemic and operating growth. but as are and the performance. review ahead, although Brian will uncertainties, well financial

Brian Roberts

Thanks Logan. Good afternoon everyone.

an me update let numbers, with the through walk supply. on I Before start

improving outperform and financial are versus In position first the we impacts known volume levels The of the trends. growth year. QX entered and delivered enabled to to we revenue quarter-over-quarter. jumped determined in we to on given a million. the growing demand tripled of $XX strength activations year-over-year We nearly driver growth new in over hopefully nearly and adjusted XX% shared, EBITDA activations In quarter XX% this this investments. supply growth the increased increased outlook, which quarter-over-quarter basis supply our improve number XXX% significant our that drivers with to XX% QX contributed quarter service drivers Logan in active [ph] quarter-over-quarter results extremely us of As pleased

We keep mind record revenue margin contribution And the that generated also COVID achieved in delayed results return to we for despite these companies. Rider. many the which Active and per of variants impact office

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

unit to increasing growth fueled growth. This of COVID to the case the XX% sequential QX sequential ride rate. accelerated volume over growth move had the is details. by counts, QX cities. Let's by strong relative and rideshare across strength Despite QX broad jumped

terms ride of positive in sequential top QX. generated rideshare In specifics, XX XXX of growth our cites

the given Hurricane was outlier sole Orleans Ida. New

Additionally, rideshare volume ride each increased in average daily month QX.

year-over-year quarter-over-quarter million. in the increased Beyond rides by growth XX% $XX.X XX% riders. Active of number we saw to healthy In QX Riders and unique

of of Rider It an per The New year-over-year to million increased X% rider quarter provided in all-time partially our attributed $XX million led outlook million to million. bikes Active sequential million to which benefited was Revenue XX% in trends a increase Rider Revenue seasonal $XX from the million activations year-over-year. scooters these per third frequency, improving sequential Active by service record increase noting $XX combination worth a revenues which increase to levels. of of ride roughly increased of revenue $XX.XX. XX% we that above $XXX $XXX $XXX is their strength. given and by

level. quarter revenue third quarter XXXX. our margin in contribution increase QX outlook our was million. we contribution row a XX% strong point XX.X% nearly a to For the new XX XX.X% which second the contribution The from of margins outlook of QX outperformance record of of relative in and to helped achieved $XXX percentage representing Contribution margin exceeded

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

third required periods. excludes there In the liabilities positive to was As recoverables. a reinsurance insurance reminder, agencies historical contribution net for no regulatory or of changes by development to adverse quarter attributable

$XXX support was year-over-year. in as self-driving QX from well XX% revenue activity background operating million, down XX% XX.X% growth as to Operations X was of decrease to checks division R&D expenses. closed expense of of quarter-over-quarter Level July. a move in and which in and percentage slightly sale a up in expense Let's the as from onboarding. and QX, rental support was million, Operations QX primarily scooter expense related resulting million QX, for is from driver approximately bikes our $XXX in which $XX

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

less $XXX marketing expense XX.X%, Within and sales and QX of revenue basis of revenue. X% than sales flat G&A expense of decrease decrease quarter-over-quarter. points million, incentives a of marketing, a G&A XX.X%, percentage a revenue was QX of from was percentage As as year-over-year. a were XX% was XX XX.X%. roughly in

in our noting $XX million QX million It triple of line, achieved to and between of In that QX. our worth of the the adjusted bottom $XX profit related items. is two million was million of EBITDA adjusted included outlook terms $XX EBITDA QX $XX above nearly million $XX benefits and

of we $X selling to additional vehicles. Flexdrive million gains First, related captured

these combined equivalents that $XX matter $XX total cash to investments million Second, million $XX settle QX EBITDA gains a billion. to quarter-over-quarter expense. and provided short-term we $X.X benefit adjusted legal were profit and G&A cash, able Unrestricted Without million. to was increased accrual a our released

want not outlook. what conditions Future Before over. rapidly let is QX share I to impact the yet me move may that that, outlook, our can With I remind can. to I pandemic change investors our and

tailwinds, In supply, new in and the plan in our drivers taper expected QX, fourth onboarding investments quarter. terms supply success to given of we

and drivers to we when pricing will dynamic it's additional course extra extra Of help platform. retain to attract the busy incentives use to fund on

rides straight growth our volume. ride In of of month in rideshare in achieved daily October sixth average we terms

the As in a both XXXX holiday and of though, was December America the rideshare faces quarter so rideshare of of during as COVID as reminder October peak fourth in month and rides. in November given impact well headwinds seasonal in terms the pre-COVID XXXX, demand North

the same trend expect We this year.

Additionally full activities. population there pre-COVID drivers range their who revealed not of a yet is of have

vary. over line our were ride In reasons QX down and The still increased circumstances to XX% summer. about from Moving peak. we the

are are about parents concerned waiting counts those the factors. mandate time recent vaccinated. certain activities a combination are boosters. these surge setting of until their case And who first are are in most preventing for for people mask and awaiting Some There in remember it’s kids

XXXX, of summer true rideshare QX quarterly point return case rides San less to more versus COVID city by counts, office ago. were the meaning especially were in QX. a two and than San until rise in with companies than XX% in recovered down XX% data This QX Francisco like Secondly, rides many Francisco is rideshare postponed years from San Francisco

additional recovery delayed to Given and contributing in to is factors, a and the likely Francisco. office is the ridesharing West first half more San cases XXXX use event, return Key like other City especially tied

year. tailwind next when, matter if. We volume hoping have It the typically is we're a this on of not

For year rate is these revenue XXXX. growth exceed reasons, full XXXX to the for for year-over-year expected

of the and terms is $XXX between expect outlook, and XX% achieved XX% versus year-over-year rideshare in our So we revenue of the This $XXX typical seasonality This QX. reopening of QX in implies outlook and between includes acceleration. XX% growth million. the delayed QX in

and to North that for quarter-over-quarter in our is expected scooter bike Micro-Mobility In by peak included seasonal in fourth is addition, $XX QX also quarter is revenue America. up the outlook. to million which decline In the remember

revenue of the contribution margin factors. The other implies the to seasonality margins terms record including level the with impact of all our contribution be XXXX. midpoint given for XX% and time expect of outlook in among QX QX profitability, In for contribution we the around

than of expect be ride pre-COVID. post-COVID We continue with to per basis a was greater contribution it

in revenue, million bottom of EBITDA pre-COVID million and pressure QX. In our we in trends. face will exclude between Similar QX we expect QX QX pressures obscured undertook QX of QX seasonal well EBITDA Last be trend. benefits. typical we between and adjusted in matter the line versus terms EBITDA the to and that increased the adjusted our that $XX $XX XXXX as $XX can million year QX and layoffs loss in $XX In million for to so adjusted that

basis EBITDA Separately, achieve in X.X% adjusted XXXX adjusted the sequentially QX full in adjusted made X.X% to expect the EBITDA $XX or to profitability momentum, speaks that structure. to in implies of Lyft despite EBITDA to will X%. QX fact we increase compared an the to QX our without of profitability cost approximately expect headwinds improvements million This important that based our our The we've benefits. which the on year milestone. continue on margins outlook So is

already outlook year-to-date XXXX which generated In $XXX Lyft has nearly an positive of adjusted roughly million. through EBITDA QX, $XX comprised $XX our midpoint million fact, annual improvement EBITDA of cumulative approximately of year-over-year. [ph] represents The of million adjusted

inception Through exception. strategy. let the challenges by and formidable no our close. execution we've overcome me focused number So remaining a on is The pandemic and resilient of

the EBITDA achieved ahead and transformed adjusted operating Over our model, expectations, past months XX demonstrating have leverage. of are we now improving profitability

forward from given stronger We a the as same growth, recovery, plan as into of natural business tailwinds company ahead growing to to solutions to expand we that are larger leverage. massive emerge unlock on expecting expect we deliver market to positioned from time Looking opportunities the significantly opportunity pandemic, addressable a exciting we building serve with the us. scale, and our leverage. At the we greater see business market. our lean be We attack

can So even expect profitability. that opportunities growth we we improvements these are to as generate we fund overall

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

John Zimmer

opportunity momentum and the balance, our This even significant about our our technology and the makes navigating on and term market market we're excited riders. strengthening through optimize focused to business Near in recovery. advancing network which drivers ahead. I'm Brian. the Thanks, relentlessly our better for real-time includes by

we side, delivers the possible on to driver’s user innovation experience. the continuing On best that deep dive are

pay, granular been that visibility drivers roughly our fantastic. in driving. increase X% drove. having been of hours one with The and number early volume, before the prime-time the interface As incremental gives technology number been support can times, pickup pricing increase engaged a of times conditions market more to same We ride refinements XX% our example, start increase app into they results have they improve saw new we've a at higher an in almost all a driver and dynamic app testing the drivers time. our Likewise,

result continue marketplace will can dollars this since focus and engagements enhancements We in every ultimately these our millions of diligent in higher tens year. work, of better leverage, retention, driver on dynamics, types of and

riders It providing give advancements new that less transportation deliver our with to side, one On along Lyft us like such longer as options network. benefits usage scooters valuable a the wait as to help our rider And The more Lyft's transportation riders cases like overall more These value of today them and the more scaled and for infrastructure use They different us future, rider’s little and Rentals, the bikes allows most the services to maximize built and few driver we demand will pay competencies or prepare and them for to what's our value our optimize on transportation. The core consumers. the real-time to example. help the value become to helps in also usage and and with Lyft network. levels allows more further our network decade the we by investments on options distribute of apparent that we and are nearly differentiation. is focus modes classic next moment, a is specific also more perpetually approach pick engineering a A years. giving delivered deepen time. your utilization product our the efficiency The a of achieving the and with less functionalities over of of tremendous also versus new mode riders competitive increasingly marketplace. Wait add ability little at to prioritize while a value to ride Save, that up us the mode most a price and of important way expensive

we runway see riders and we very to capture continue more transportation. our both on a look forward, As their to spend long of individual

and XX Every just in EV around critical own. getting addressing offer significant the and and These scooters, on have product the to options X profitability we've and value become up trillion-dollar turned can this for work Our transportation U.S., years digital bikes, the we transportation us and year quarters hit milestones lifetime green is use eligible express Lyft drive value. ahead. first opportunity market in through the well million their have started year and like people set preferences, cohorts

get half arrive well access discounted to to funded the or a go than will more to execution us to as university transportation students end, first focus rides to can these solutions students. currently that partner. Lyft we Through allow work more establish potentially partners partnerships, directly and for as Our than XXX our as time. the million scooters, college bikes for To develop transportation with fully and for

this can to get you know Lyft. For riders, low-risk these period trial a be

our For us, in with to routines cement it's them grow their become ingrained relationships an with daily overtime. opportunity these and riders

X to We're A, for historically to Before regulatory an give we’ll highly are we take It's support steam of QX important and update now on let X its Independent their independent, both drivers. successful keep also that margin me them the by with for legislative Massachusetts. to reached noting it worth more in benefits Massachusetts fronts in ballot overwhelmingly move We're ready the ballot initiative. certification an Coalition securing to now independence, the model questions. be Q full The establishing drivers milestone because in measure and while an benefits. ahead optimistic ballot allows solution and on Work

Operator

is first our Doug line open. [Operator Morgan. instructions] Anmuth we For JP from have, question Doug your

Doug Anmuth

Great, driver the supply. just questions. thanks on taking first, for Maybe

last trends and talked about supply strong new You versus driver XX% of year.

around Citi of Citi there? any more Bike. -- heard how can what demand, you tapering you add trends, regular else correctly, talk you into you Lyft then customers be users? said see can secondly, kind more talked but in think characteristics If about those region of help bit a rider you can the can you are means core current I versus if add between York you And Thanks. New acquisition city I rideshare? you on that what XQ, acquisition just anything color to investments you're that's just percentage driving perhaps mean, versus what And and rides related just the you kind of kind users kind might of frame there's on I of XX% bike Bike, and of little So explain recovered of and

Brian Roberts

Brian. is this Doug, Hey Sure.

And acting a times, to feel the year, this. further The are the Lyft grew impact. understand, year-over-year. XX% week XX% drivers, majority are income. contributing factors: it's off and and so sunsetting jumped and our the federal on September, because played being start third I'm it's significant We in for a activations, hand doesn't XX% as of improve we returning these. me who driver see driver XX drivers, early three And platform. me pointed would But out, of long-term to October. And Let to supplemental and levels. sunsetting the Logan benefits, drivers going on let drivers and tailwind. per service these as if these each touch federal less we're hours at activation, supply and this of market quarter, than and in unemployment potential in the understand then platform John. invest benefits using Last platform tell productivity, QX month-over-month be drove offense new full of just to increased of drivers definitely more we Look, tapering is would new in important be drivers there's increase believe I they're at you more of again, look so rides. giving also enhanced there's It's to pool unemployment the enhanced the cautious, too to And

is the if added, federal after And tailwinds. whatever organic the drivers it some from $XXX income state purposes. so, some And week in drive jump the getting government per the really really for providing eliminated to enhanced supplemental the new need again, benefits for you're expired plus folks

Logan Second, as on increased out, platform. pointed productivity has the

how the don't driver supply, analyzing also number it's have the look per you new increase but And versus to just just of per pre-COVID. driver. so And of many understanding seen drivers, rides rides we've number at when

drive, XX% there mentioned, there's resumed QX, as sorry, XXXX. the then or driving than So was of number who QX finally, in Logan people per of riders more and are different driver the -- of some number greater apply than reasons. have yet conscious rides not And to

most about all others boosters. drive have and for have recent to don't waiting wearing a the Some surge to and who a want There are preference kids their wait are mask. until vaccinated, day concerns parents are just

And to based happens, shift people to we so, this I as months. coming be on delivery conditions improve expected tend expect where the from studies. over are think to higher historical to rideshare, And earnings see

John Zimmer

is John. This

on touch around Before want drivers. I just question, zoom the question Citi also Bike on to out the

labor from of One Statistics. we Labor looked at to points call you kind data the And could what comparable Bureau we markets. look the of of was

we combined of and say the the through that you you X And the the And sectors. at hospitality And that of January hospitality would is turn pace retail I the one earnings flexibility provided a in want. saw because from than looked so faster industry. retail an that we Active with off industry can in on and reasons whenever Drivers app platform and recovery the at the main by grew combined the our and times September what leisure is

we out workers that the that come of COVID, type one strongly of we want. is model people offer As feel

Moving Citi Bike. on to

and ride you we asked we like You're And kind crossover type right, the volume a a into see while get total that the that bikes. we're up only transportation. we you New options think riders been potential higher, between time category on number the exclusivity our in long-term and around transportation much for even of XX% did versus many the do stat about each saying crossover, Citi New And with of to year. valuable. program strategically York, quarters, contractual rideshare first it's Citi Bike other they incredible XXX% is up consumers, made People, is drill the their last can how of of question spend And with of rideshare Bike up our tried we've the XXX%. nearly that for is and think acquisition and rides place in nearly as compare Citi back Bike. They Year-to-date, the York. bikes bikeshare against them

Brian Roberts

actually didn't question I'm preempt to you of in one going I driver revenue just to the related of a ask, answer investments I'm QX. but made that in expect some terms to going we contra

incentives So classified revenue quarter-over-quarter $XX basis by a on million. contra as increased

GAAP driver we we adjusted on revenue, revenue the to to to metric prices. levels, a As is and focused margin service and the this to exceed funding shared, revenue, and believe extent net be more more the EBITDA. pleased we're supply that incentives, outlook we worth herring, we're for plan and previously could It's driver the quarter busy improve we're especially we elevated also expected, in required on that if investors. of higher isolation reinvest do contribution the funding need was stronger is When than prices Contra into from able saying incentives our are drivers, it's which red cleanest extra the incentives. still

the better and growth forward, general, basis investments a not not net this In relationship. but QX. taper which, incentives, given GAAP We're And true looking we're volume peak and revenue quarter, focused quarter for improving supply realize the the tailwinds revenue in was just supply. to the on on clearest revenue, second revenue, it. the on QX. in impact GAAP amount service We're contra the given to the per-ride again, that the focused of actual continue So we course, too we're of is third, contra to levels, keep plan just to expected mind report measure metric going EBITDA. is feeling on much And overall of of in

Doug Anmuth

Thank you, Brain.

Operator

For our Sheridan next Eric question, Sachs. your from Eric, is open. we line have Goldman

Eric Sheridan

so questions hope up you what I there. wanted much taking with well question, said you to follow and the first is my Thank on the team. all I just for Brian,

elements the incentive gap calendar guys the versus so side much demand about earnings Rider getting come on levels curious pre-pandemic Active lean at normalizing Active but side, And consumer how the Riders levels that drive and you of some pockets driver the have around as on look used right comments where driver striking early out in demand take XXXX? you the the XXXX and growth time you might in not platform -- drivers being about demand think do think much. Thanks you we of have of of think the turn how I'm back and for drivers some possibly out back, be also supply-demand well? you had incentives needs Active the and incenting there you we between into about think to normalizing, the the pricing that as energy in come and the to on just also to prices, inflationary that's to on do how elements guys supply as right between to balance As company to during periods of where think there the versus lean imbalance balance pandemic? and you about are of or incent when you of call just gotten striking philosophically elements supply maybe Riders

Brian Roberts

Sure.

confident look, be And lower the greater. So from longer business have levers pandemic, we're prices to and fully that pricing right the obviously emerge as we be drive strong to regardless expect we we term, to the volumes the environment of results.

QX from peak. still down I think than were rideshare repeating, in QX the XX% worth more rides XXXX it's

unlock us and contribution we should an as then finally, help will us we help savings help revenue, from will Also certain recover, we help as extent emerge COVID, will increase example. us of this billing definitely costs increase, to marketplace And to a monetization, as we hosting. to which frequency leverage volume things within fixed related So cost expect ride and like efficiencies depreciation, expect too. aggregated

So the in we expect general, pandemic exit in. continue going than profitable to we were more to structurally per ride

of revenue quarter around just disciplined sales about very of sales marketing. was good for just we've straight Sales marketing percentage below the of X.X% and and Active marketing Riders, position. as the terms feel revenue, I been incentives classified sixth competitive XX% and and on were and a In our we mean comments as

stronger risk I maybe our And on on than the not brand just innovation, competitive think, win just and coupons. preference, product believe and of long-term advantages at create that we repeating, experience changed. coupons. We customer So strategy R&D have investments want can hasn't to ROI

So periods as expect and will increase absolute rebounds. marketing in that we sales revenue future

be as was percentage We expect lower likely a COVID it revenue will of pre-COVID. that expense sales and marketing post than

a of I us, who single become time. the every in new just something X to U.S. a year think to people just it's And that's year. going for constant every age of inflow back matter So there's ridesharing million and heard, use single you then just

there here driving that are riders. growth active up trends of structural again, in terms So

Eric Sheridan

color, Thanks for Brian. the

Brian Roberts

Sure.

Operator

Suisse. your For the have we Stephen next Credit Ju question, is from Stephen, line open.

Stephen Ju

so Okay, you much. thank

back. John, or and mobility I in knock continue you have to improve cities. wood, on continues certain Logan shared come driver And rides to back, So supplies brought believe,

time, cost the done Brian, widely pandemic, a support. whether time to lot demand rider talk you of the -- that in think ops more uptick I think at you since and onset out across to it's levels can seeing the about were I roll right And it's size the your and So base there relative the to country? the particularly

unit do normalize? you. So demand, resources to place the things back up as to you the begin in you think growth Thank spool have

Logan Green

Logan. is This Thanks.

fulfilled on the a we Shared & a launched save need. a is, a in Philly. ride. we lot sort as market, Wait experiment of ways, riders to pandemic service sunset similar market did wait level, where So few in we into one came and extra Save, Shared launching which rides a bit -- slightly have We place, in with of It's lower every little minutes

scaling any paused guidance. sort have on waiting up, further We of CDC

further front. there's So planned Shared nothing eminently the on

We will re-launch turn don't on Shared Brian. yet. then over to And eventually, I'll but it a have date we that

Brian Roberts

Yes.

and this bike operations in growth. can on impacted line volatile, be by be it especially QX scooter because can So and support,

operations support points. scooters, Given QX about of should seasonality by basis expense XXX for revenue bikes percentage a and decline and as

our feel we to terms So in good up of scale ability there.

Stephen Ju

you. Thank

Operator

open. is ISI. Mahaney Evercore Mark have Mark, we line question, next the from your For

Mark Mahaney

to lot may therefore, need that pricing delivery rise -- and if the on there's I'm for proposition the some opportunities, ask we for high-level drivers so financial and a been think a alternative impact less especially found but COVID. there value subsidies. of I about -- and But service simplistic of that for the in -- for a and such question power, rider need have a I talking incentives question, increase compelling riders maybe there's is there's really I'm want driver wondering miles, incentives. of about what lot see the driving I And post the rider structural has a structural driver changes you may and pre-

lot. more to business with just less Thanks and and drivers? more about So power on is then with of driver could just that change incentives -- neutral having model and because shown comment environment some future maybe brought could that, all be whether you've the COVID, in that that a now competitive you the by driver riders pricing the Lyft just you're rider less the more

Brian Roberts

Sure.

let side side. me I'll take to So the and first, rider driver transition the

we as probably our our just was the we long-term, to of and before with sixth IPO, that quarter And XX.X%. of said And and below closer sales in IPO, we year It marketing time XX% XX% and between reminder, XX%, reported XX%. again, the quarter, straight the a just was expected revenue. a it so XX% at

than rather a the better competition. taking So that's I think good riders validation. innovation care drive pretty through growth and would We of

than we I existed expect you, the And as in pre-COVID. ever a I power think realized term, anyone with be So that was of longer than is agree pricing lower there industry. think marketing and percentage generally I more will again, it revenue sales

if earnings higher terms In versus more large of looking -- many number again, of delivery, there's there's at studies, you of drivers, to buckets look -- for -- terms of rideshare qualifications. you're king in at be if just to earnings because be tends tend rideshare a historical the there's

drive. to check You have a pass background to

that and so You a to earnings car qualifies tend be higher. need

right want think there and they about being may reasons the have their elevated are people surge, are now. I Earnings again sideline some so recent the yet are because concerns booster. why And people some cautious are still there there they on

a We're And and to think for I of mean don't drop. I be a if will that they have driving folks now of a and a is that mask. requirement. there folks, CDC guidelines waiting until want expect think are kids in. lot to vaccinated. we their for to And ridesharing following requirement kids are wear lot you they're then I drivers for have Some more right just -- coming

earlier, manage et -- different I low good to this levers have going a navigating high I in price, I can just what we've a back price, to and think We cetera. P&L. pretty we So of the said job manage done volumes, lot think growth really

now. So position we about feel right good our very

Mark Mahaney

Okay, Brian. thank you

Operator

line Sandler. have With question, is Potter we the open. Alex your Piper from Alex, next

Alex Potter

thanks Great, high-level another question. Maybe guys.

As pretty any used it's to pretty to of buy hard car. buy you're a kind Generally car. speaking, right aware, now car. tough a buy hard probably It's it's new to

wondering So you're model. comfortable do benefit try ditching you and primary all mode any mobility an should I'm second to a extent sort transportation equal, as regard this embracing as of you that capitalize the just opportunities trying whether have to opportunity car consumers with to potentially that? get environment, that which else Thanks. ride-hailing this on to it and of to

John Zimmer

mean, riders. it hey, focused do fleet I counter that that been car so a for of see good drivers, it's I a building Yes. backstop doing on kind a and and primarily, business on spent of think We've now opportunities asking of, like what multiple provides to get was years kind that. and now going pandemic and to out we've out the go to everyone for to a during we pressure everyone is

with as vehicles Rentals launched first-party Lyft as So third-party well we've vehicles.

having offer bike just it you that approach provide broad further scooter, transportation, do and and party to think where and you I can best and offer focused first we experience, the cetera. vehicle, So supports rental a a et can we our rideshare a

there we opportunity to yes, want the transportation it's the limitations market, of when market in are shifts so when there cover in again, been an are spends will with every transportation. continue the the And aspect on we've vehicles. size to increase someone reduce what but and pay about. on off. spend something on Lyft, pandemic to focused stayed We consistent to their overall on of in that's And But transportation

Alex Potter

one Obviously, Hertz maybe Thanks. last one, regard helpful. quick to any has Okay, strategy electrification the and be topical great. electrification. Tesla And additional recently, just news been then would with on comments this on

John Zimmer

business, business. I of this part fleet couple Well, a of we building out that, was the can Sure. again, similar spent of say I what saying, to years our kind

the have EVs. independently our asset our and unique ownership subsidiary on advantage massive We strategic Flexdrive, a a of all through as this which vehicles is platform to managed convert us gives we

XXX% brought needed. from having us commit that You control. our Flexdrive offer for company, available about having for Drive with that very and to ability partners transition We've EVs first the We're actually planet. up that thing excited if were had rideshare providers a vehicles suit others it years leading great feel gives the Express to about through follow by Seeing XXXX. ultimate the by multiple we good transition. to We But company EVs. electric is and

Alex Potter

Great, nice quarter. Thanks guys.

John Zimmer

Thanks.

Operator

have we your open. question, KeyBanc. from Ed, Ed Yruma line next the With is

Ed Yruma

on you micro-mobility have to of segment, there interesting I Really the that the on of the term, And tenders guys as just out the Bike. particularly Thanks. longevity in? open kind importance look question. hear made for growth? other you're I tough the be any them? of precipitate the are strategic Can of that guess, medium people the you guess Citi get that calling given kind update pretty can you I improvements devices municipalities taking know you've greater for density Thanks the municipalities over that in

Logan Green

question. the for Thanks Yes.

we City In Chicago Bike. what Citi of already we to have the Divvy, York a do and markets, terms in similar relationship with in New

a have the Area similarly Bay we have and well as few as Boston, in others. We in

the we So quite about. good cities, major all feel

share, -- those are relationships we We typically are have and exclusive. majority a

So paying to and off. we're with really I'm happy strategy happy that see it

of terms handled. and tank those devices, built can way the of in streets largest be York and all fact way bikes York, actual the In think is New and the and of market weather New kind changes bikes our being the the for a those York New that like the

the tested. that battle been is we to of learnings our and model all news for at bikes scooters. great look total cost So devices. take they've a continue you the ownership The And from

to delivers ground-up advantages showing is our really to of per a just it So for serve buy that Lyft look bike, piece hardware ride we just not in launched, costs bit more the so it actually deliver or what of but terms early cost in in ride. massive the little what kind of bike testing E-bike, it first we longer. And the invest might to takes that at we

that look the we We have We the repairs repairs. fix needed, at they parts a don't bigger need parts or all battery. harden and can the so

and the great we So position done team has as strategic key an those markets. job, a in our phenomenal about feel provider exclusive

Logan Green

typically done time, membership Lyft national We market, of program. how It's I on in rolled program. membership bikeshare you recently doing It's so that, also we -- program. something to first that we're And seeing addition to we're for that another bike every call unlimited access and Pink with just an local great a Pink, example the scooter businesses uptake together basis. we offering want sell together. our out And Lyft our some in -- membership gets a the from leverage to can into that we network. annual

John Zimmer

the you talking you content, as And like Netflix. similar can a York our show, could in think Games think was Logan about, on as about, about key to bikes New exclusive Squid

make any occasionally, going provider, but to Lyft your are to through if even so or access you sense for access New content. through Pink exclusive and it's of you in transportation membership rideshare join want you to Citi the to get use And you with that York because Bike

Ed Yruma

color and Pink. it giving thanks the on for for explanation and Got

Operator

Research. next our have For question, Wolfe Deepak from Mathivanan we

open. is Your line

Deepak Mathivanan

Brian, few trends is know of Great, unit those market a thanks to call second change levels questions. of right about been would use Do you shifts volumes currently? in can currently? can on Thank recovery taking the where an terms some you about time lagging. and any can some line provide how the or talk of we market there's on are You great. this Any think that the And you see any basis XXXX be for question, lagging right so strategic share now? in update or for still they're the cases are much you think on out update can you approach then your share you. a what

Brian Roberts

Sure.

let of talk sort about competitive rides, use So talk talk I'll just trends. QX about and I'll me about cases. then

So in cases, is use of obviously terms here. still COVID look

precise provide to So at this time difficult a view. it's

think, in I general, to cases, looking use them we at return. of all expect

commute two an I'd we more beginning return to of become more XXXX. expect more companies to companies travel, reached the of ago, back rideshare data of rides but you airport early. office. One expect total QX we're is it's in office. to strengthen if rides as And that this QX. go were X.X% years interesting X.X% airport rides total uptick the will see business point to in And rides say rides that in We return as pronounced

believe strong, beginning has leisure we these of is while So some rides of been the actually travel. corporate airport

is can can QX, quickly. COVID at what learned change Looking we've say I

to that start with caveat. me So it's always important for

month data mentioned, in month, was Logan week week last October for peak since rideshare We've the QX. of points, and April was our as rides. October XXXX terms through seasonality. best talked our In best the is

this counts, In I the is case as rise shared, to the San terms QX. explained. these, Francisco is many we pronounced a office of of recovered. a city XX% return companies Francisco And until result in COVID summer the some in postponed like only San as

right Francisco San now, I'm you glory P&L and its And about sort XX% regain when here. of financials bet recovered. to willing former only our think so we're will our

do a help as if. really mentioned, be this It's will year. not of when drive volume that tailwind to so matter anticipate next a we've And we

for you so exceed actually if comments, expected missed is revenue And XXXX rate year for expect to do full our it the earlier that growth on we for XXXX.

terms given In for we our ride with uncertainty the COVID, outlook of growth scenarios. QX, see multiple

to Our to of outlook expect rideshare revenue that XX% year-over-year. scenario obviously our growth we XX% midpoint, grow outlook single quarter-over-quarter. the tied rights revenue to a implies not At is

any have we volume we general, of in trends, the pre-COVID And competitive at of major terms industry-wide. of see versus we growth really to think really QX. in believe share overall, Lyft-specific terms pleased sort were strong We where haven't versus are I trends, today, there's -- is In accelerate in seen which demand, if we really QX changes. you look

mentioned, The sequential XX% the terms rate rate QX sequential XX%. ride growth increased I in growth As growth to of relative the units increased rate.

Deepak Mathivanan

Brian. Okay, thanks

Brian Roberts

Sure.

Operator

For line open. is our Cowen. from your next question, we have John John Blackledge

John Blackledge

thank Great, Two you. questions.

service activations or there ride geos were rider any geos any just better number question, First, supply if driver new second was pre-COVID levels? that on supply, volumes the you. were in levels so, above the into activation? strong, at new where driver those And was or And Thank drove particular cohorts really markets? rider the

Brian Roberts

which were -- We've profitability to QX, in the QX. to in of offense. we going to we we wanted decided big in actually Yes. offense play play milestone, a general, say, beat industry did would and I is sort we

of pleased very we invest. terms -- position see can of were QX. I now to that the think able to going in the And we're in our you it results terms So supply

see you data, down earlier. sooner. in in In think, markets. third-party at federal can those were there general, states unemployment with I that supply more some you relatively if general, back sunset came look Prices came

quickly. pretty generally, pretty is that's probably balance think early It indications. efficient. I But I the will mean market

can categories as coming volume airport seeing to So of sort share I think we commute, increase. all hours, we're rides late night Everything cases rides, in terms that's back. party which probably like all of the of use is refer it's of off-peak are of those most the what rides, -- I

John Blackledge

rider on And the...? activations, the

Brian Roberts

Yes?

John Blackledge

Yes.

Brian Roberts

Look, were Yes. on rider in No. of we the very activation. terms -- happy

for and up terms again, of So jumped in it X% year-over-year. riders, -- new XX% quarter-over-quarter

discounted typically, And by by do think into these either paid we points or John lean university. I as fully out, university university heavily the are programs. programs

just that's platform. on to someone Lyft the habituate great a way So

scooters, entry to Lyft. this of into But the age those And just and we there's to ridesharing use who Lyft that So bikes goes going become in fact digital it's the million to who then new notion that are people have we on point point, another X it love again, year. ecosystem. all natives John's each

John Zimmer

that to repeat other a a And numbers is that an ago, Brian see executing as he travel, that direction, to business Lyft well. couple cohort we're of minutes airport the just nice bring which have that move the important we And is segment. in continuing team the those brought whole given in I'd up And just of provided around cohort, user. business return

Brian Roberts

travel just reports And prices for were. thing We've think allegedly about mean clarifying as of versus trying to that of a studies ride, and out airport lot I lot by cities John seen folks. are worth a of and talked one where is I there's where figure they want to average calculate the prices. it's magnitude that the can rides mix of changes change, since to impact distance price change. and of is can and average details impossible say, And time and modes can precisely what the I ride also business

airport in rides longer. as Airport example, they're for of expensive So mentioned continued a be total to more rides QX, because they rideshare tend to increase. rides percentage

people these So clearly are like in Separately, -- their rise. look of credit more looking data -- normal a – first, resume as card be at lives, longer shift you're you returning. terms traffic rides if will higher have is price that

it's terms into expensive going compare exact minutes, and January, longer that same that if is prices. be to, more and say, because ride even minutes the it was So you take a ride of in a length ride you to factor

reduced lowest-price the important, traffic. rides, a imagine cities weighted it's pricing bigger X be price, Shared offered who so QX then XXXX, a just really to studies. with You look of X if it's And rides average option, doing Miami rides attempted and same different. shift, And now, useful on is of right and a only years data in these were you will represented trying rides that approximately John in mix point touched as Philadelphia. of the versus remember, average XX% which have for can calculation because do folks are market, in on Shared only and comparisons back Shared ago, single cities, this, to artificially to COVID our tend in

John Blackledge

Thanks That’s so much. helpful.

Operator

have next from Citi. For we Itay Michaeli the question,

open. Your line is

Itay Michaeli

everybody. thanks Great,

me. from Just ones two quick

are in to First, vehicles remaining going in with asset where maybe, now back Brian, kind secondly, the can third to levels And relative you EVs years your have asset-light? the for Lyft's are are service many more fleet terms how on and XXX% then managing XXXX, several about thinking to target willing and comment you intensity right relative targets? electric by of next partnering parties owned you how to internal of

Brian Roberts

Yes.

there's So definitely do in be some. – mentioned, service as terms delivery. people levels, now and do historical again, There's of on versus probably the more look, right tend not more I to looking who, get of a as we make drivers rides group cautious more back expect, studies, want today doing But we delivery the are to you more rideshare, at money side. more again, giving -- some all again,

to continue service levels. improve that will So this new of influx And we we drivers do I see expect that think will again.

big well a lowering as QX, really and was in there we average us, in For terms of pickup improving on price both focus feel as the good times. impact

an we always get and want to And so focus, area there. better that's we continue to

John Zimmer

that types important of really fleet party. gives the On us way EVs, running third feel strongly I business There's a the again, edge. two we're kind of

do You well, a could operations third-party not could financing right middle to to get fees. have kind partners. us pay and important you have and like person is to super to extra The operators, of third-party

burden about better getting third exploring parties, I the operationally, different to and of at, right when in a that lots coverage ways do way win I through to that first the do better doing national to it talk party. But And then think in to finance first-party parties, to doesn't so I key so believe we're get which markets third with There's that's of lots we smart and mean what going way it that EVs, to us. transition we're options then it. is

Brian Roberts

we is than other for it add, be we And The would the now I lower thing this XXXX, Brian. as only look at will only -- expect CapEx XXXX. total sorry,

Itay Michaeli

very It’s thanks. Lower, helpful. it. Got

Operator

open. Brent For question, Jefferies. our your Thill we from Brent is line have next

Brent Thill

Thanks.

a quarters? couple you've on pricing how shorter Just you down. out know times pricing. that stand play sense of expect trying been in the get to to give question us investing of and around I that general where just you Can you a next just and ride

Brian Roberts

were off sort why you -- I do just really reasons where of at many shared it's QX what's you I look difficult at we is if there's look average why again, think, price. interesting when at to revenue you in than XX% look I XX% our revenue, peak. our it's our more at actually in look we're if all-time think with only our peak. around our X% rides high from And outlook, off QX, quarterly down

in we're job -- really in doing good terms rideshare. matters general, So in of monetization. a volume it's again, But really

in so depreciation our put within extra And it us at include this within recovery different of leverage volume category. Unlike maybe the of cost that we helps repeating cost of expected we risk fixed revenue. the costs a competitor, myself, They revenue.

certainly and once It's And there's -- every And costs so lot is we're volume. one send billing your areas of then credit where receipt -- we're to ability hours. a volume. card one we've it time, if of is processing. industry not that decided of a transaction significant Lyft, we're with see leverage us. around billing, your doing one XX leverage you also each on aggregated does we and the hosting Hosting for we're this, with And leading use provide significant one-for-one relationship the ride there's you'll actually the but where programs,

party, use of then so And contribution. preeminent comes teams, it terms and have some office, to the don't think there. then the industry. you using round these a they'll up, marketplace definite people if talk is Lyft They're up. ride volume there coming There home. ticks finally, a they're in And we coming they're and so I when team that most ride our And they're the on and enough, to ridesharing, across as trips provides we just when back, going they're this home. frequency of add preeminent is one lot the not about And most look going leverage

in in of driving revenue costs, both they're help contribution. on terms driving also what monetization, terms should of variable so down and And improvement

we than So we expect more as exit in. provide I to pandemic the said, going profitable were structurally

Brent Thill

Brian. thanks Great,

Operator

Steven Fox Advisors. have we Fox question, line Steven, your next our For is open. from

Steven Fox

afternoon. Good Thanks.

increasing ratio mean and that longer thinking Does point. a you're you of then growth. that just said obvious One, had question, question. on you leverage And be for leverage your and a every saying then next on. Just I of clear, was options Thanks. you like dropped year leverage into dollar drop-down does pull year. can $X.XX that, And clarification follow-up term? into to curious, mix I a lot a can then out of improve? next just that just you down EBITDA that last a revenue Where said you factor maybe for laid about

Brian Roberts

Sure.

and and leverage, then when rate So QX, hand let to mix. look expect I our me off may contribution talk talk about we we leverage. generate at But about to take increase

of which this an for revenue, in of each gains, $X.XX on be headwind our if QX. $X.XX. sequential time, scooter the the the outlook was implies on quarterly all from out, probably the remarketing is So And decline absolute obviously And record, creates revenue. leverage dollars And $XX you in contribution QX. in in inclusive to this will which calling despite is million all-time a increase QX incremental dollar margin the and QX bike an despite midpoint contribution. will it's worth of expect contribution headwind, seasonality, $X.XX reach we is normalize nearly QX, dollar leverage

And on point, -- again, we outlook next I be at have changes And throughout we're to not for expect product always as back our XXXX -- we all day, week, just do providing month the and the time right user. John's throughout to right of sure modes at of terms want In travel. we an throughout as we're this right to make but think, a a the point, year. it folks a we again,

really because, so really for increase and attract the other And again, these modes we're us us. help excited market of addressable some again,

Steven Fox

that’s Great, helpful. really

Logan Green

Thanks is with everybody talking great so right. evening. next That much, to All Have look a we you. forward quarter. Thank and time, everybody.

Operator

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

disconnect. may now You

Lyft (LYFT) 3 Nov 212021 Q3 Earnings call transcript