LYFT - Earnings call transcript Q1 2022

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Operator

Good afternoon and welcome to the Lyft First Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Sonya Banerjee, Head of Investor Relations.

You may begin.

Sonya Banerjee

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

the results overall May Form risk economy. regarding statements could quarter known will unknown also those risks as year XX-K/A for for future on and to take and XXXX and and business, available after subject and be Lyft's call our are; me filed conference the this XX, of the investor.lyft.com call, Elaine discuss Joining today and shortly described of recording forward-looking results XX, I'd unpredictability by Investor and has to opportunity during XXXX, those in statements during regulatory will particular our growth Financial like you and this this continuing included matters. actual COVID-XX uncertainty in differ includes may prospects. Relations that Logan expected Paul. call, remind This at to and A of pandemic, Zimmer; statements we as are projected Form be or markets the the will our results financial strategy, CEO, key and current impact our Green; XX-Q making XXXX filed to in and future the XXXX this make to that John statements. Co-Founder long-term be our that to our the in April President, call Chief uncertainties performance full Officer, on Co-Founder implied ended. relating factors business, initiatives business guidance, our first of materially website from well We These cause in

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

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

Logan Green

Thanks, Sonya. celebrate proud Good XXth Lyft and afternoon, will incredibly you our our thank joining month. that I'm this everyone, anniversary for call.

initially two peer-to-peer Looking industry, and scale establish first chapter shared pioneered In first important We did into we anticipated. the to adjusted on back, In two, odds chapter we during the rides. industry were decade made a divided regulatory being the milestone, chapters. profitable first our the the overcame create achieve rideshare, business and it can earlier global we and pandemic. EBITDA an this we launch to in new one, a and basis than be category our

impactful most Now we more. Lyft about yet. network, the three, plan chapter talk to modern we're will to the chapter exciting John page In into turning get which most our transportation

transportation. improve as serve to people's world's with continues mission Star. to our North best Our the We lives want

front incredibly us, our We work of much larger and Lyft excited lot company. to in build a into of a about roadmap have I'm

QX. to Turning

in rides and ride our outlook. were volumes were but versus rebounded soft Omicron, exceeded January up January March. further daily and due demand February XX% in Average March. to results sharply grew February rideshare Our in

drivers active marketplace for recovery, rides has high. were a our up what activations in last year-over-year, new XX% Consistent in And of driver ride quarter QX average Given were the reached COVID versus more than were in XX% in healthier. the up first strong we gave rideshare been year. QX new and ETAs XX% Total QX the saw by did last with and year, in last better average more drivers QX XXXX, getting on average year. than first than rides they quarter on

as Even up gas earnings driver in March, prices increased were average year-over-year.

includes drivers per active We're Net that doing all than average, in ride of taken and surcharge average prices app-based have shows on at eye gas drivers ended for hour fuel they things, tips spent $X.XX instituted had hour January. And been Our time, of did an help end a we to platforms. may these offset earning per last keep analysis than We clear, increase, which nationally in time using costs. the gas didn't on is per QX. a effect more this continuing average excludes than close to other we end into including of clear, XX. at March $XX online fuel earnings other most March discussed Lyft drivers of more benefit and hourly earned just surcharge, want the until in this I from year. which go on March, I including figure of $X.XX be have markets this be the March to with bonuses. any more To drivers steps on

able with June. on to who available back on Lyft card to gas cash the are Direct drivers. savings to partnership the top driver discounts through our get gives In And Upside addition, gas with X% end up use drivers highest debit the Lyft of

talk me let Now QX. about

service for levels as marketplace growth. healthier, been we Even our preparation continue getting has further to want in improving

continued We expect rideshare of demand our the us, the in only experience around we're Francisco, rides We Shared that use COVID less possible remain cautiously full the year and versus expected recovered will order to San we through And was particularly of XXXX versus still which users. best deliver believe markets growth than versus year this the to XXXX. second return QX hit XXXX XX% is like XXXX. Lyft XX% a of QX high, in for more more we So in key optimistic progress in accelerate Keep cases, help demand. we for which see half of significant also ride drive to mind recovered runway ahead volumes, as new strategically revenue year. is level. in invest The QX QX

call let turn to Now Elaine. me the over

Elaine Paul

a enters good be are Thanks, Logan, reaching and chapter. drive Logan for as I'm on This long turn very third focused this afternoon, echo in our what to XXth in marketplace, its company will which includes part said, and excited scale the business everybody, term. the anniversary. team congratulations we leverage. and Lyft building I'd to on Lyft's healthy operating of investing

to Friday. filed our XXXX Before filings business. I by increase does in million. this financial Please have our revenue, GAAP clear, reflect restated an impact our refer year or turn was be SEC and of coverage for to XX-K to change the our correct periods. may adjustment QX on any reflected underlying seen also non-GAAP restatement financial to any statements related This that caused a X-K our not not XXXX and X% accounting loss net performance period. cash did how To results detail. our or in It $XX.X more amended to We in those technical issue reinsurance results, QX we you full in an our balances

than Rideshare Now we anticipated. let's QX. rides stronger were talk about

Given in down we And would versus January volumes that and meaningfully the slightly March. Omicron demand rebounded was QX on January, even demand in had anticipated impact QX. ride that though February soft, be in

and up rideshare a result, quarter-over-quarter in reached total a were high. COVID rides QX As new

XX% We and riders revenues at had as up bikes reported represents than of reflects On XX% seasonality up increase we as as drivers had exceeding the in year-over-year, with of than use of on bike rideshare the which in impact supply Relative bikes rides. and reduced XX%. were to reflects end Logan were both side, sequential last of riders riders. active $XXX mix X.X QX. XX% Active of active QX by basis, with million more ended QX, less we a first XX.X million. well scooter new returning we Omicron and a of to the total drivers This of up active usage. range QX were quarter versus and and our QX revenue versus more of Accordingly, down mentioned, $XXX This XX%. X% QX, more than million and month last new drivers Omicron rides and of guidance year by includes On our and or shorter the year, scooter reflecting scooters. $XXX the up million declined and people an million, impact QX headwinds the

February in In the increased XX% recovery, in March. worth riders month-over-month of active noting terms that and another it's X%

per XXXX. those dilutive to Remember second was March. that up there quarter New XX% the at rider I active active was were rider of typically per activations it's QX QX X% frequency, short benefited ride revenue of offset with versus trends the lower just rider more XXXX the in roughly by and in increase than while in in riders rides. revenue end highest set are line revenue sequential the up less $XX.XX, per or in Even X% is ever month-over-month earlier. the mentioned $X activations time from so, active peak this for rider QX rider per Even through been since revenue take to ride a seasonal

indicated, otherwise stock-based of income on, A QX detailed may today versus with Before sequential exceeding our margin The measures our want contribution to our helped points, and margin to exclude XX.X%. be all shift release. and a declined a earnings first was and are margin approximately relative XXX release, basis drive note with our QX. the of on outperformance our Contribution our on available website unless million. in contribution in statement select results historical guidance that GAAP furnished the mix strong guidance compensation our non-GAAP and found I of quarter revenue by revenue I earnings in is which was X-K filed in other XX.X%, reflecting Relations contribution On Investor $XXX SEC. basis, Form non-GAAP items as move to reconciliation

XXX of our against for year, Let's $XX QX leverage of R&D move and reflecting support expense million, expense roughly Level more XX% Operations versus $XXX division of X revenue, than was up the in year-over-year, was with last QX sale $XX reflecting That points down basis growth. XXXX. to million, self-driving year-over-year. represents approximately QX expenses. but QX QX million XX% down flat in operating topline

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

X% Relative up XX%, on of X% and in revenue higher referrals from XXX roughly driver XXXX. expense in As of versus last points down QX sales was addition G&A incentives QX XXXX, revenue, declined a a QX sales better were of The spend. incremental was a $XXX XX%. a in of was expense a top million, incentive. year percentage policy leverage line. marketing, revenue, basis percentage services to and mix to is versus decline G&A XX% marketing and Within professional of rider XX% QX XXXX. reflection as expense reduced and is of reflects G&A of which

line, We QX the of cash than of of ended better was short-term by with top and equivalents XXXX bottom outperformance of was million terms cash, $X unrestricted billion. In million our $X.X EBITDA adjusted $XX and strength between savings. $XX.X line investments our expense million. outlook This and QX profit driven of

like COVID impossible me that factors and context. Before to can providing inflation start it's note move Future predict results. that, to our I any conditions and certainty. other us dynamics with are With by affect important some macro to rapidly change outlook, our for geopolitical let important and

recovery service Even we by marketplace encouraged January. the continue demand if levels since in for has getting to further are been improving We preparation in healthier, our want growth.

we we Omicron, best balance. demand two make achieve evolving create when these into will to further healthy take driver want can QX pandemic-related stimulants in the shifts our typical of to it term trends to experience. to invest marketplace have supply more past conditions we're factors ensure years, a environment. balance Federal in difficult to long and supply riders move more variable. driver the and as possible have dynamics COVID care supply. in the that with us more up Together, to drivers of rapid out served everything Coming in compared doing other near-term headwinds and made for set This Over a and highly demand

support to health will leverage. growth also significant impact business to to ride We in achieve our initiatives continued service more to marketplace will allow expect levels. will in to as key this allow to continues able show time, operating our improve, Over have of company. on the volumes us turn leverage with This invest These us QX. we investments the better are in an support

QX Now, our let me provide outlook.

to represent We which $X of X% expect revenue of would $XXX billion, XX%. million between quarter-over-quarter to growth

terms our opportunity year leverage. margin will In profitability, the expect to QX XX%, Post the on we next growth we which be behind investments quarter feel the invest worst this is impact us, an of and of reflects contribution kick-starting is approximately growth. of in coming Omicron,

a We will do overall additional marketplace some focus so brand drivers, marketing. with on and the

As adjusted QX. a result, EBITDA $XX $XX we for million expect between of million to

EBITDA it With year turn to and a in basis, full revenues remain we profitable. business, our in XXXX. remain XX% optimistic over the as let adjusted achieved provide faster invest to our strategy. than will that on to updates we On John cautiously me we For that, key grow we the being XXXX, committed go-forward even business

John Zimmer

I'm Elaine. network. impactful chapter and into the next our transportation ready excited modern scale Lyft Thanks, to for most

Let what means going and me how we talk this are to there. about get

transportation phone a First, through to with can't personal become completing deal brings future, other of a much modern of without go Lyft's to you channels XX together be and network, a mobile to maximize our about Lyft connecting different transportation even rentals, for connecting different it unified wireless their and one using the In scooters, will to XX fragmented same transit in services value big today's to a attaching ground together it one into the chapter stitch of people of customer transportation the Today, experience. use third vehicles all and the set have way, imagine bikes, transportation networks, companies network without not-too-distant to will modes car rideshare, customers. impossible needs. network.

us strengthen experiences on focus build elevated prepare simple transportation beyond to enables deeper vehicles yet big the is transportation rental status autonomous that within advantage. a future. singular today Take network go quo us in ecosystem and help experiences It today's These the Our go competitive mode. programs. to every commercialize to our the car into

we Express marketplace critical of capabilities and reminder, keep to Both and program. more allow exact driver-facing for building the which Rentals, we fleet Lyft fleet our technology skill that They Drive, to uptime cases. and are is a As operating a customers' we maximize drive contribute our also returns overall partners. consumer-facing; efficiency rental and have our into which foundation us experience hands-on as give is us use data support vehicle to management These and platforms the and need lower maximum future, costs. sets our AV of

Now, provide and products, new focus expand areas include: and in year. cars of strategic services; These our including two, vehicle update me stack. core; on three scooter, accelerate one, this an our rental key our our three, and let invest emerging bike, innovation for

Let me start with accelerating our core.

One and we even Even riders, will it and service use to last We we riders levels, we've is riders our us delivers cases. efficient seen Priority usage. grow Pickup, which gives access and that rolling improve to out also pickup. our more making also mode to allow example that great meaningful rideshare mode partnerships faster while our innovations rider as continue deliver value preference. This understanding by began repeat better year, high to network an is

this through and we scale Priority working to are to markets progress year. cases, as use Pickup more We

transportation card rides In to issuer with card with us great program who preferred our Lyft increase the use gives Chase allowing results, terms of more partnership those largest to to This relationship in members for produced even continue of meaningfully spend partnerships, States. will years. three The ride Lyft. we points receive card Chase card Chase, recently Lyft. the members renewed millions United on with next members' credit initial the reason the

bringing of QX, Next, how on achieve is going Drive been of to our our by We've emerging vehicles part drivers working work In our I'm we we've electric to and our number available network This vehicles consumer grew Rentals ever talk new existing more on in commitment program with expanding footprint, customers. in activity can we experience about XX% to real XXXX. and investments best-in-class Chicago California. these In of our new saw XXX% the building been rental to markets, to Lyft products. more before, rental than Diego, than to we electric also QX, through Express San versus And our QX. first-party our including optimize expand by more estate growth regions.

this mobility We've partnered diversify we've their and through partnership, riders today operations. available micro systems Let to the doing more nationwide. This in select ultimately were spend been moment Through network. available to can mobility micro a cities our available compounding what These deliver Lyft Lyft options integration our XX we make entry is scale markets. with an expand on to value me app. additional Spin as scooters point and to to make US

we acquisition Turning April, to to into our significant Urban complements PBSC excited business. Solutions, our a global and because software. equipment it leading bikes hardware In entered PBSC footprint our will an and of bikeshare model. XX We're systems. agreement expands and bikeshare an markets this in supplier bring bikeshare about a to has XXXXX incremental own acquire

PBSC QX, The build established and these to the the excited expand subject operators cities support to has world are transaction to to systems. strong expected closing is and around with customer close in conditions. We relationships on

innovation advance network. investments refers Finally, the This let are me the to highlight that we're technology stack. to underpins we R&D some our in making of our doing the

airport pickups like by specifically to adapt detect we at to be use significant adjust volume our as to our at on as shifts the particular a given has of service in arrivals quickly our rides. time. airport these systems can Demand optimize across depending network changes and the our sudden and We enables to feedback and demand. pricing can and systems enabling capture value This rides. technology, sudden to And advance more for airports cases continue for levels our that departures variable highly mechanism possible,

We events deliver like to driver these can we're our approach are line. questions. unique and that applying enable increase top now to Innovations shifts from better supply-demand and take address improve earnings experience, address a other result traffic patterns. Operator, rider a ready to rides, us similar more

Operator

Anmuth [Operator the line of Doug Instructions] Our first comes JPMorgan. question from of

Your now open. line is

You may ask question. your

Doug Anmuth

comments up the follow taking wanted Thanks the supply. around of some for just to driver in question. the I investments on

year-over-year XXXX. drivers up You and year-end up sequentially about talked being from then XX%

can with you understand higher just why hoping to what's how more that can might Just you us in supply And prices help invest then and be around quantifying going in need quarters? spend now. in you. on drivers you upcoming terms much of feel us gas much the help Thank driver there

John Zimmer

This Doug. is John,

context, come we like of when actually, the the QX, growth organic multiple what's of a more a largest reporting for way the out we're of back and one it spikes, large to COVID obviously, to service importance large these spike change about, and typically, Just in levels quickly went And change. happening pandemic. getting of organic is less of much was or marketplace, you the there's part spike marketplace, we're managing large in or here. cases through the when a but thing think on And

rest underlying we're we're investment just would with fact that it's And Omnicom. which foundational of year's those -- no There's QX, we growth. I feel quarter, want there the is to And So about talking to right about to kickstarting -- that the we guidance, fundamental QX, make. concerns. comments tie the that the this was

surcharge. was year gas in we and last to compared that up, average $XX, earnings about are driver fact, put before $X.XX the In

Logan Green

Yes.

off. moving very on the So of saw was, back adjustments demand continued drivers as can important Titanic. a change to about out like dime that. to that kind to signed turned the moves one obviously, of coming Omicron whereas what organically, the dime. right? platform. demand think And and only I that we what on things are is It's rejoin of supply the up, And very, marketplace more a saw, slow, we modest and can went shot are And impact marketplace drivers there down, then we thing do So is demand that most understand

So again, the we're the and across it confident the role where we we're is handle role, look to we comfortable invest happening organically policies of And to put we this confident in. look have And important the is the when But demand turned and an of can are is ROI US, our COVID. ready are at we – time we're The that are we marketplace. pandemic. for we feel what most ensuring in opportunities accelerate the confident it can. And much best investment people that our that across right at trend providing very living when that very we look there getting positive in a to adjusting. with extra little service behind the the levels world, page we're

So the we we will the in where are making off ROI have positive investments and pay they that that for shareholders. confidence business long-term high – for

Doug Anmuth

add just Thank you can you. more any around quantification? And

Elaine Paul

Hi, our little it's context can add Elaine. on more I investments. a

addition we're in drivers, we anticipate as in in and investing to continued the So on marketplace of bit drivers, as demand. this comeback focused a in well really marketing investing

demand are marketing in And flywheel more point initiatives we're to believe healthier half. impacting back last QX drives that revenue the in our what that growth other of R&D, QX. QX see and sales in that top cost rides, for we're and G&A drivers our ultimately what of quarter marketplace, more leverage. the in drives margin terms these we really and our are And We this line, you going terms of and off good one supporting investments feel projecting categories the versus about pay this seeing which that percentage and as about of below that's In quarter, percent of increase cost revenue, quarter. versus a

Operator

you. Thank

Eric We from line of Sheridan have comes the the next of Goldman question Sachs.

Your line is open. now

the You may ask question.

Eric Sheridan

sense the are us in concentration And room you some geographic still levels. still business pockets – Can skew, for much within business In calls, you've the market taking so from return that or either are of business standpoint, the to versus there airports, of where a you couple elements pre-pandemic understand bit of if over that you're well-below can Thank itself then work, a a long product the short-duration for seeing talked fair of driving or give could us you still think of about of the in help a recovery SKUs questions. be quarters. terms you so where type Thank I pre-pandemic ride of recovering next prior broadly? much. rides,

Logan Green

Yes. ton of our on see the things. Yes, for and growth particularly couple always a has We Coast, a West West of on share markets. headroom Lyft over-indexed Coast

just So XX% I like business some us think nationally, provides that is the recovers. the Francisco still upside for average whereas Cities San are XX% recovered, real as about recovered.

of a feel great there's headroom we like there. So lot

area an excited who of there's known. but But a are think in and those to our back in markets the and part Shared rides where in product. Shared two rides. very other of I very launch the business for Lyft lot rides headroom Miami. Shared again, And is The Shared known rides. business, Philly were you where were And we live of on they was We quite meaningful the a about today, area in for live remember, XXXX, have opportunity we

imagine and light business of that end we're year. that, make the meaningful a will excited again of up that up so to by the part And the

Elaine Paul

QX, in with of bullish in that And stayed were about we feel of that QX, it X%. airport the this forward question. and rides, relatively the We rebound were flat in rides rides, pleased travel. terms mentioned at airport in going Thanks X% we Yes. for

of total rides cases as throughout not rest that of with think That's where And pre-pandemic. us the still below for on all see also year, In addition, we headroom percent increasing use the are beyond the we one. airport was the tailwinds a it that out.

to with there's for big opportunity with work. travel. related a also return and to we I that's think headroom us. see And travel within we work, business more addition, In headroom mean to return

Operator

you. Thank

Ju Suisse. line of Credit the from Stephen comes question Next of

Your is open. line now

You question. may the ask

Stephen Ju

Okay. Thank you.

in mobility So may about benefits those can you the PBSC the expanded in business of with think rates have I you general appropriate cities either last talk maps have for I about micro guess, you or where those can a you And Lyft case. usage use transform invest we that's a about think to into retention yet offering footprint? the don't desire perhaps that quarter, you purpose help how can to frequency design usage bike transportation see the markets versus where so product also talked more,

can progress has start products? share some been start to what you you when So we Thanks. seeing and can your ship guys there

John Zimmer

can the I'll Sure. talk John. the device to is This Logan and talk maps.

City, mentioned, So the the riders seeing what communa XXth on as you of and to -- scooters. States. York current PBSC. transit platform In were our In and New consider get Bike. towards than than got, There's we the talk big you more XX first-time if greater then United I X.X other the system, Bike, acquisition. the XXXX, We're bikes with rides our around about Citi Citi Lyft-operated we XX% in can largest is U.S. , by are how working acquiring Excited PBSC. some million try presence across stats kind of

great. we partnership positive city the bikes that well had this we're than we launched, which to many with the building it as And is dock-based success So acquisition, better seeing by really on fleet. cost really when exclusive across have model doing more double be lowered and kind of which we into ground. spread that more where had just cost we with footprint number a relationship more R&D of geographies. city. is doing done -- E-bike, it's when well, done the we're able this globally. have the going PBSC -- helps this of that's R&D our Double And operations to double

much base side, revenue sell cities. larger the can of hardware On we into a that

the And become so, and acquisition, and dense affordable loyal users. excited people transit get Lyft excited about to bike way a about for business rides very as to that environments in urban

Logan Green

we're how a couple mapping on or the mapping then our just on work. give a One, color approaching of And things. little front, mapping investment more

project. major the are on is is open-source couple Meta a a larger who Open we're of long-standing you success. lot building First invested being ones, of and a have map, which Street And Amazon a heavily top it making companies, and that of in

lot the has quite project years the has of So gotten number over good. accelerated last a and

energy of have been -- foundation have a that data putting our the of the as the company. Lyft that's capturing a we we unique of And map. So lot into

to speeds. of create about all traffic all to a cars, tens a And of have on of feed capture already to And that we're We road that evident to cetera. times, capture able thousands of at et cars We thousands We the the layers data. in to of value-add unique lot capturing map. today. improvements us safety in see cases, that of and closures, product sending you back and, hundreds road work some edits is the map the data, back

on of few a further a we we've than So has to get physically shot closer you accurately a street a around that are seconds that's driver without lot physically traffic longer more away, who's street but stuck faster actually in or of may navigated a driver for closure a breakthroughs traffic. identify there that a straight driver little the sort gets those mean because them

that So show those fundamental dispatch. improvements of some the in more are up

NAV the the really navigation a completed have had just With our product, XX millionth where Lyft we milestone ride stack. we on exciting

good. it's it on larger this the but experience where that targeting, and So we're course hit something of really the see should in you iterating year. really, to to still the levels that over much get make up a we're scale sure this starting And of we sort scaling up way is

Operator

you. Thank

of of next the Mahaney have line Mark Evercore. comes the question from We

line Your open. now is

You may your question. ask

Mark Mahaney

Great. incentives that what of A color to your provided please. post-COVID recover When revenue. a think year? And this is questions growth then, versus Is kind on assumed guidance will as do in levels? rides for rider of accelerating couple percentage you year -- that revenue you last some of

you about guidance as what What incentives? you happen with you assume going which looks it's gave was lines. going like are some that with assuming on of much. a a as quarter And to to percentage is I then How next revenue is had percent? X%, what the incentives driver OpEx think look it the you've -- for the in very should What consistent. of pretty Thank driver past? we did

Elaine Paul

Sure.

All contra. important Let's start QX believe as that QX, that driver they balance working in a still that's on invest to incentives, up incentives backwards million, quarter-on-quarter we peaked I'm was that we while were talk incentives $XXX continuing XXXX incentives about X% peak and made are achieve per being our classified marketplace. ride and in our and let's your about questions. and in and -- contract to said, In lever

was I think your that other around parts do repeating -- question your to question? before you mind the two

Mark Mahaney

Thank -- for on Well, give you to rides when that item higher -- were that And us pre-COVID, those is contra expect year? we pre-COVID? should you. June then, be any you above want guidance assumed guidance to for particular And but in the to the quarter? than back the where

Elaine Paul

Yes.

full I year-on-year means full year revenue year the XX% ride, and up about growth. will quantity optimism the terms comment than than so to revenue of between revenue exact by year, faster growth saw our we per we the believe and want on. be The get average don't there last which we higher rides In of do

think rides. now. think a don't still But when we that talk will headroom I you said, at want ton there's therefore, as so about and to we're of hit And like we that XX% that there pre-COVID

side lots So the on get headroom of to there. quantity

Operator

Research. of Deepak Mathivanan we of question the Next line have from Wolfe

open. Your now line is

may your ask You question.

Deepak Mathivanan

little Thanks of it consumer of of Previously, or of around largely last tied build like -- large a prices the the coming characterization? Thank I of part Yes you. side, to sounds need we on incentives you've for like question. the or the that was are by supply and should question. supply? earnings it these the going in on paid kind investments driver had to expand funded your Is build side what It How when Or of kind higher kind think kind to incentives just want type P&L. is from order taking still drivers. prices? be right actually, bit about my to these to this are to some driver time and higher us

Elaine Paul

Yes.

drivers. the the the in And investments drivers, see in terms come premiums straight that fund of So pricing. from in in some investments of that we funding can time does prime

to investments quarter both QX what a and in our benefiting that's marketplace, in our margin. impacting of margin marketplace, this what's EBITDA what overall riders, R&D mode. doing that's and our in in impacting invest second order Those Some we're see the drivers you healthy which invest outlook on and ultimately investments,

Deepak Mathivanan

one I if Maybe can Okay. more. ask

Or Thank there be contribution be should aware we there You're the quarter-to-quarter. Were guiding we one-time that margin should that of of? things in guide? aware XQ is for be anything any to you. down

John Zimmer

say onetime? that Sorry, any again,

Deepak Mathivanan

In margin the outlook contribution for XQ?

Elaine Paul

in onetime nothing contribution QX. impacting margin our There's

Operator

you. Thank

of the have We from of comes line question Arounian Ygal Wedbush. next

open. Your is line

the ask question. may You

Ygal Arounian

Good guys. afternoon,

on Just and guidance the guidance. revenue XQ the

kind You if how April? your talked as or about were from there's any people they trends the not for is you your of Just that little talk built into around can give pace? improving. Can much? into you expectations about on inflation what's number? built February-March reopening color on and going and kind factors macro bit out Or that any expectations seeing perhaps what's you the XQ, of Are in the a doing going

Elaine Paul

Absolutely. Yes.

the dip demand impact So we rebound as we and took Logan then of Omicron. February March. saw comments, his big obviously, as a in in to a saw January in alluded And

and QX. first see at consistent exit versus ride typically the weekly that guidance. second single-digit Our our QX growth rides quarter week quarter, with projecting terms in low end seasonality average rate we in by guidance of informed of that's low is informing our QX ride single-digit is the in That the per growth we're

And sort outlook feel so that's QX. we prudent like of for a

like our something that's inflation that, or In not terms revenue impacting of guidance.

outlook to driven is $X really rides, by driving and what's guidance the revenue million that's $XXX Our our on billion.

Ygal Arounian

where Thanks. normalize, the what on give looking getting by the means? ratio? about bit And that understand that detail to levels there a where then and continue now could just that in color with? service and any more want just that just What more us Are you back come we of back you're service end Thanks. a or that, detail we sort not around investing rides get maybe can levels little little to on of metrics for, about Or you're rider are specific you more help that the bit when talk driver it is year? happy

John Zimmer

Yes.

-- the good we keep of need The metrics One that. ride supply is ETAs. to in XX% But that they demand we QX, to like like is get for ready we increasing, news side by at expect and improved to again, year-over-year. the supply look average

that's main so of along demand And we metrics one of sections look quantity with the driver at, the side. and price hours and on

Operator

you. Thank

comes John next the We Blackledge Cowen. the of have line of from

line now open. is Your

You may question. ask your

John Blackledge

Thanks. questions. Great. Two

XQ in Philly rest rides. kind Shared in a then on for the cadence what's other question. How XXXX? of the and did Miami the longer-term bit First year? of Shared of second, opening in And markets perform a And they up little rides

If you EV points in infrastructure Thank you. Lyft investments the as could XXXX discuss for goal. drivers to

Logan Green

Yes. Great.

of new initial based success cadence Philly go So kind markets April, Shared on were roughly of early The X% launches will rides Miami. reopening we and in in total see for rides sort that. and be rideshare how of of

were course be that what question fully of on second So, it end you to of the this want you fairly give year. to electric to but the expect the expect year, by looking be probably the Do vehicles. question ask again ramped And can we then for? over you --

John Blackledge

stations there making update The you -- competitors? drivers, country, might from kind for in any any investments that that the of charging differentiate across you're the

John Zimmer

I'd we say is the that differentiation Flexdrive have biggest program. the

for which They've for So have charging. from been Actually, available external Flexdrive, years. we our today, through EVs drivers free drive, name, our EVs. had the is is drivers can EVs which independent subsidiary, managed includes rent test which it call

management that, with and so have directly on our we're advantage partnerships we've these to we charging scale, EVs at is these the made fleet capabilities distribute And structural to along able side drivers. the

John Blackledge

you. Thank

John Zimmer

Yes.

other made of or, things that financial a exciting than with good the the decision driver some in saw cases, financial we the as better engines. time for equation combustion EVs, One for first EVs

Logan Green

had a but we EV, prices of up, drivers Yes. not up. do. And that every started in access gas to as One saw both basically prices interesting in quantity, shoot gas a kind saw and an and number the is giving number that of rides have we that as fact EV EV the large jumped car driver gas-powered sort of a who EV shot

roughly to turning in can a where cost is for going our the we years couple structure have of premium, is consistent think EVs of they see now, been tip point much the incentives, more historically, layer time. right breakeven, over And at in we whereas next provide a So being you when but drivers. sort of all it there kind that

can to of remove in so that. And think, really And business I we our what our we're interested can so those going doing years. next barriers to majority drivers several obviously, they for the become untap the it's in

Operator

Thank you.

of from RBC. the have next Erickson the of question line comes Brad We

now Your open. is line

You may question. your ask

Brad Erickson

it's higher the margin. Elaine, secondarily, of the couple quarter-over-quarter, a talked baked there? give you've being In then the And portion the I on Just guide, here. goal. contribution contra XX% think past, might able on assuming the into to any about incentives follow-ups magnitude be you the

you look we versus of these 'XX XX%. to as or thing you little going quarter 'XX these back Thanks. maybe this think some that's And driver if it is near-term any investments something look that a at dropped I the a of incentives? to sense to incentive Is a thing about maybe shorter-lived? intensity get beyond be now

Elaine Paul

share. But performance. cash much flow free GAAP-profitable And committed seeing On delivering per top And hard ROI-positive equity. John it's to to that. is but demand very use the important This line maximizing think marketplace profitability, said, that reaches When remain Omicron. investment through healthier goal we're year demand. on supply, line time. full lens would Logan we're EBITDA is growth of with and we of I something the reaching coming on decisions to ocean predict. a the over sort of are that driver look, we that with the made something And -- of be to all hard incentives, quarter our investment said it's to reiterate, signs reiterating balance adjusted And in reiterate an think great we're earlier, get liner out of drivers to bullish

a to of other So we things we doing very in kick the clear start long-term not at we're that growth to but health across terms that quarter QX, the future, our the still brand. initiatives for our of marketplace and wanted looking in in and be invest drivers, to are only it's just investment the

Operator

line Benjamin Black Thank Bank. you. of question The the comes of from next Deutsche

Your line is now open.

ask question. your may You

Benjamin Black

on supply. struck Thanks have a San Francisco. with for also Uber deals questions. the follow-up New I York in taxis and

you're you term? strategy environment costs supply understand associated give organically new regulation, regulatory broadly on similar conversations saw sort you sort independent your Washington And grow one then, pertains the of the to the could us incremental with update of us work on curious, as it Just an classification? And more if ruling. we of longer the state? what's to State Can model the contractor Thank in you. incentives, and beyond in help sort

John Zimmer

Cool.

and is this I taxies John, working supply. not But it's then, talk -- to taxis, none think of that are on supply similar important we environment. the anything exclusive. the planning organic there. deals say, to note are regulatory Let's is what And Uber thoughts on about On the Yes. I'll

we plan the So it to and do track monitor work.

with platform a making the of of you unique definition, in I taxis taxi a couple of, platform, on years. we've of they street of interest business, most any about street hand. is to when the closer and time over think successful structural more burden sort street the a a traditionally, to hail a to the of they by time and on And is the this e-hailing that studied get that from But challenges their it's an try ride primarily hail-based closely cancel, there driver's best combine e-hail sort big in most are the really what's business hails. get

sort see levels very poor you of And traditionally of reliability. so

different involved. parties any hard, of You that a extremely in adds think, that also around it see a value pricing regulatory makes the for taxis I incorporate really structure to way

we will moment. do think we have We so, on. it, but continue any So, we a to not watch the definitely – take challenge at it's to plans

had another question. You

Logan Green

levels referral the some there to incentive like ways going that. on not About constantly which that be based But have, a is the the that in to that the challenge chance ensure been we the we around growth ground on and the we on and in an supply do to like some ways we new that has after provide quarter is service wanting pandemic people can the we're what these grow other in investing all great The -- cases, that's managing drivers. users organic have seeing largest these have services. to spike We're thing win channel helpful, organic organic, concerns COVID all ways that. biggest we from in potential generally, over

think So And organically, regulatory, the on be from we supply continue our biggest distance few is channel pandemic. On going is a the getting to main to change see the It side. different I trends. questions. positive

Washington interested Let the involved specific end forward the of and that was of March, model, a it The a organizations law law contractor me preferred that milestone independent mentioned, at in the new labor the highest drivers. -- having which protects pushing you latest at or start signed by that landmark the level. organization, piece were IC is Teamsters model. there The labor is

perspective. going even we the want, protect California. to And as independent Not you cost year So protecting going as to we Prop concerning that prior a talking contractor labor. want about we And been with voters XX support getting is see ago, that California, from action I've drivers into what great -- it's see in great state to about just the progress moving in the amongst support did popular of legislation the of years out a of couple the model. but a labor models, progress to law nothing the like coming had model We stated cost. asked saw Washington a like forward IC and comment in overall, the

Operator

Thank you.

line Steven the Advisors. of We have of question Fox comes the Fox next from

open. line now Your is

may your question. You ask

Steven Fox

could. much. questions, if Thanks I very Two

be the that can you of volatility any it acquisition between more And QX secondly, given investment for difference quickly to just the that PBSC and how always in around terms Thanks. thinking margins always period seasonal being of have a EBITDA the and sort this you around on is there and then of quarter. in all, shouldn't more we First and of could again about on the the for scale drivers revenues? the rides the closing and drivers revenues broadly provide Why company just QX? trends incremental add

Logan Green

Yes.

really last I think years two terms the in of is seasonality, COVID-driven.

Januarys, impact threw were sort think to of it's So a COVID continue to in the and last we that required have expect the the if type back of don't huge But to bit of little had. you two spikes there QX. off market certainly investment additional that

a pattern been last We be expect do to forward. of the case there So I think has the that there going years. not couple

the we're expect sort sort seeing don't way same very sort of much another the of think of sort sort a live-with-it in round, that have face adopting think seasonal to the of trends future on of I market. demand the variant are shift I even approach spikes making the I impact of where people to

years. that sort last as seasonal it read up two trend though the shown not a of even would I for permanent has So

John Zimmer

question, you PBSC maybe specific repeat second your was And could to acquisition?

Steven Fox

after financial expect it line closes? help or you the the you on little to it us the Can and give business of bottom sort on color a bit top more how impact Thanks.

Elaine Paul

Thanks for that. Yes.

providing related to to specifically our the not any We are guidance -- acquisition.

commenting not this on at we're that unfortunately, So time.

John Zimmer

are it and of there making against and customer revenue supply cost number can investments overall, savings diversifies stated, the by that great and bikes by product, R&D we -- real more their think already been has It concentration that drive diversifies opportunities mix. that leverage And our than bikes we're for scooters. doubling doubling. specific the geographic we as chain. Strategically, streamlining Yes. And

Operator

you. Thank

We of of comes the question line the next from UBS. have Lloyd Walmsley

now is line open. Your

You question. may ask your

Lloyd Walmsley

if Thanks. I Two, can.

you Any market overall? on on and think the trends then that would kind seeing share. aside offerings should call a trends, feel subscription maybe do subscriber kind are you of And about your you about then basis, in positive Pink about? you we market to with do feel how How other geographic market? your that, First, negative, to that offering just of compares big market from on Lyft how And the out renewing share share? any changes mix related deal Chase or

Logan Green

Great. Yes.

on So where track, competitive both based consistent tracking well, and sure market And data the market third-party broadly, is on pre-COVID. as remained first was pickup share. we environment stable. as the with it our that are service you're time, we price see I'm has well. all roughly our competitive And and share And levels,

of kind forward that upside. is share rest on the to look overindexes West less So, of our which areas One recovered big country. of we think see I the is two versus broadly Coast, recovery, we as the the

we talking upside on there's lot think earlier. of were which Shared I great So and a rides, about there

part business. larger the year and the So a if those see are in recovers Coast of rides relaunch of become of upside we factors the two big and kind the remainder the as West Shared

So feel confident market. in competitive very the bottom line, in our we position

of terms driver Lyft and are business. it In committed membership, long-term program, very our growth as membership see the to Pink, Pink, we a for

food smaller delivery. of of UberOne, is Ridesharing and clearly terms Uber's very product, food component that. on is focused a In

business Pink of kind have a to and other on excited overtime. to don't of any see it very So the steps broader we share become to than part committed larger it we're Lyft

Operator

last you remarks? Thank be that will have you. Presenters, question. any do closing the And

Logan Green

talking quarter. everything. we to you today. forward look all with the call next Thank That's for And everybody joining

John Zimmer

Thank you.

Elaine Paul

Thank you.

Operator

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

You now may disconnect.

Lyft (LYFT) 4 May 222022 Q1 Earnings call transcript