LYFT - Earnings call transcript Q4 2024

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Operator

Good afternoon, and welcome to the Lyft Fourth Quarter and Full Year 2024 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to Aurelien Nolf, Vice President, FP&A and Investor Relations.

You may begin.

Aurelien Nolf

you. Thank Lyft XXXX. the the Full Quarter Call of Year Earnings to Fourth for and Welcome

call we the CFO, On today, Erin and David Brewer. our Risher; have our CEO,

our financial in and results, implied statements call on These We'll and our operating and and cause differ to statements our filings. make future relating are trends materially projected forward-looking subject to described partnerships, performance, or business marketplace today's to risks guidance. and our in factors strategy and from These results during earnings actual could call. recent that uncertainties this materials our are those SEC risks

All of any except as as make beliefs of today's the today, required and by forward-looking call statements, law. any we update on are we based to our statements forward-looking on disclaim that obligation

discuss Additionally, we going today, are customers. to

For The car. both. is driver's in customer. rideshare, We the driver is customers are about rider there customer and the every care two Lyft's

also measures, be on found of website. earnings discussion to IR can our results include Reconciliations Our which are non-GAAP materials, non-GAAP historical results. not will which a in for GAAP financial our today GAAP our substitute available are our

Toronto weeks. San be the will the York Lastly, few team Francisco, New next and in Boston, over

please us. like to So do me with out would to connect reach if you

And with that, I'll pass David. the to call

John Risher

for us. thank joining Thank Aurelien. you everyone, afternoon, you, and Good

incredible an was year XXXX Lyft. industry of and for reinvention leadership

made highs strongest rides, our even and our that super we're position spectacularly, driver have to executing in and industry-leading. levels hours. in we in I are all-time ever. share We service proud riders reached We am

obsession results highest was driven XXXX, our profitable all and been of consequence, to ever. thesis: our a growth. market As best the since end customer at our the prove it's are goes It has January year this the share financial

in amount part In history. and driver are commitment. $X in collectively on due than from highest thanks had retention platform driver earnings. in highest our This any of Lyft's earned quarter combined record of earnings improved improvements Lyft the our benefited XXXX, at their the we earnings nearly Drivers XX% driver like and to Drivers was choosing innovations QX, rates. billion in number hours ever, to

also before, average, number team of active I can up in of riders the the we commitment the technical our picked a in win, minute industry. and the a from From that QX ETA fastest industry. marketplace had accomplishment massive see, both and best service big offering our to a QX, ETAs were average we want huge In That's in faster In were our repeat to faster newer became record underscores Lyft's average than breakthroughs on and QX, riders. competitor almost what the our that. a meant year than entrants. X in series legacy

Another our reliability, in in improvement rider time, reductions or prime we're win super surge price continued which thanks proud call pricing, of PT. we is to

significantly you PT I As in down XXXX. we hope know, brought

riders. which we'd In fact, is even great than for planned, faster

In total, savings. saved result million not Aside a XXXX from in riders time. done. as we're prime real that lower translates than stability, much more price And into greater $XXX of

regular riders Price high-frequency just it. it of clock we in a much in a system, their the last last feature the at that small launching riders so Lock, bug pay as prime approximately seeing of rides. look Price fee better. rideshare Many price And passes can Lock allowed year, them are getting Lock It want week, riders loyal last Lyft, to continue fall, month. a lock month we're Since the to and of are We after time to so Price XX% now where introduced feature. who announced thanks whenever to keeps riders purchase pause this around they we to

and by earnings expanding which, our now promise, never is Connect at way, our like launching was innovation the requested supported feature, has highly products dividends. commitment, and Between This XXXX of Women+ pickup launching rides, Lock it's the driver and on-time like year work, Price stress-reducing customer over before. our paying improving obsession XX million and

gold our In and Or from survey, ahead riders competitor, takes XX your every prior a quarter. in high-frequency for year-on-year someone a satisfaction. the the points have basis Go ask years. the rider preference the higher year, up average look grown was Lyft, we rider Lyft percentage with frequency, for XX driver. number driver on in Exiting in It's the standard X QX the Lyft of rideshare rides most than at largest quarter and XXXX.

of will into free obsess get over first When our XXXX profitably, the at profitability work just initial customers, this that. Erin positive in including extraordinary details, year simple year financial in flow, of we of performance. ever plan. resulted cash but in as GAAP the as first full of the Lyft multiyear our the Looking our grows year all and milestones,

on XXXX. Now to

and You've this want to purpose look connect, say year. serve our to heard that talk like I that will more and is me about what

is set simply to for quite industry. a goal new service Our of standard the

this they on us. riders. differentiator to be to we're more our the but drivers, recognizing attention share for going and service We'll For turning to soon, rewarding it's further provide a amazing have

to SUV And a unlock from special to by more being small for retain we'll them journey, in Extra for and partnerships continue meaningful but black introduce expect to ways or by rewarded their value loyalty. more on in and every whether it's ride their we And them. rely want or Comfort riders as for way feeling riders, great

an is Our example. DoorDash partnership

This QX, helped record nearly DoorDash to we quarterly reach of all-time number partnership margin. higher longer X us supported tend also As rides. scheduled which of rides, and million be

are very the to keep and the impact with the quarters So pleased far, will we're results are of in partnership we seeing the growing come. confident

expand customer-obsessed margin to to we plan continue in same time, our ways. the At in XXXX,

Also, ran had continue just We've one in-app ads. Samsung success take this Lyft saw made their Galaxy weekend to with that's to Riders Lyft day, our over you sure promote with the see vertical Lyft product. past making millions I can ad video with Map mouthful. them times full-screen and ad a Media regular capabilities. You'll app the Media we're grow, connect open will as we've authentic, each ways. marketers new have the It's thanks to of latest hope soon a valuable in phones.

higher-end expanding we're actions X in offerings. aimed by XXXX way XXXX. deliberate improving SUV Black This result customer-obsessed mix. Another changing our grew Lyft XX% of our rides in at Lyft and was the margins is year-on-year ride

experience and black ensure car to more exclusive for consistent riders. eligibility vehicle fine-tuned we First, a

and significantly more our making car now launched to we adding we increased by across XX drivers supply this markets mode Second, in available onto total Black the way. finally, with U.S. black platform. new more markets, the Lyft Canada, many on And

offerings, have see prices win, these We enthusiastically carry improved which Lyft riders margins. how responded and It's a to to are thrilled higher win, win.

is but right for Black Day. hear listen your your later up, item action schedule to more SUV Lyft You'll year, now, this Valentine's

to AV see of with to Finally, today. you'll life in come the Atlanta, May expand rides is XXXX, in partner, Lyft players only will one autonomous vehicles. This providing our X include the which Mobility to the public platform

of the They'll our with number chain, early than starting Lyft the will AV technology other through fleet you the announced Flexdrive with many XXXX follow. goal partners. we The They're annual to first deploying thousands on value share Dallas to Mobileye, I'll combination time, unique management a scene. platform the our partner's, behind vehicles other their Lyft-ready use to be across more Lyft fleet access cities in advanced have riders. as million of future for our over with Marubeni. expertise including partnership subsidiary to discussions more players in of yesterday, the XX that, soon. with and with Beyond AV of network emerging from to of several as We're a our derived coming

As I've transformational rideshare AVs, The more AVs a and will said the before, the expands, marketplace. Lyft to better market more does. addition the be

you message there Now to have a you are out it. who crushed members closing team listening Lyft in, all

the improved riders levels. months, drivers industry-leading you've and service dramatically For XX past to to

You And to and for need, up codes highs and riders, you've broke in introduced the fires you devastating customer-obsessed every number in appreciate helped us energy I a ounce hours. L.A., when rides the disaster. provide of and that, of kind over products, in crazy you those driver XX,XXX beyond second out reach Lyft. of ride this highest stepped into ever every for put all-time

got position, to accomplished thanks never and can't we've much I a you, all we We wait opportunity been for XXXX. together ahead. so in stronger have in

Over Erin. to you,

Erin Brewer

you everyone, joining for us. Thanks, afternoon, David. Good thank and

we frequency year provided our in efficiencies against XXXX Lyft. and cost It active and was we and was a dilution plan, target for year over-delivered Day, multiyear riders Investor on targets. our our the every first remarkable at progress to from

enhanced detail, position performance the ever significantly strength. now drivers for record in making in from more our directly full and financial it resulted which discussed of The we we are than our year. more line David for As service, is bottom operating riders, a reliable

Our for to foundation improved financial years health lays the come.

and our bookings pricing frequency notably you riders, Driven in year-over-year. our So now year growth billion, same prime been let's rate a interconnected inputs: walk of continued with if and year-over-year. marketplace, bookings overall to the help the have XX% rides with gross our was for to financial a up prior by year-over-year, in is key happened XXXX in $XX.X would of occurrences time function engagement from the riders. the market as reliable bit with bookings time decrease, drivers. health engagement the X progress substantial savings driving that XX% of prime drivers, growth year, XXXX. matching highlights roughly Gross and at To of Gross more through some pricing, real the and put perspective,

decreasing an on see given in have the can the of growth time it's marketplace. did results, our prime you margin not health our reinvested from As record impact

of also made significantly we incentives We the XX%. substantial per-ride a goal delivered XXXX, customer year-over-year, cost on in efficiency discipline. basis efficiency our on of our deployment In progress XX% outpacing and

delivered our profitability of focus discipline cost basis X.X%. flow cash exceeded And of the first was adjusted fixed outlook finally, considering million. cost even our EBITDA than bookings margin to This we gross full continuing percentage of more for we of improve to when This of free year increasing. and achieved original as insurance In led $XXX the XXX of GAAP year. on unit profit our cost addition, a with leverage full points our economics

All right.

that With same year lower into resulting prices started marketplace growth. trends get At over fourth and also in rides record-breaking a which in healthy I'll with dynamics strong we've let's overall We've business. late the in Now very a fourth market, had quarter the the the quarter. go backdrop, seen the in results. our more time, Lyft recent to new U.S.

We adjusted that and $X.XX delivered in EBITDA insurance product in Adjusted from partnerships. year-over-year growth XX% QX bookings strong we bend our and these our delivered in on did and our healthy prior of of through the the the as leading through our billion, QX the indicators both X.X% demand and bookings margin exceptionally to expanded and a curve progress quarter, grew were of fourth innovations, year-over-year. our of on underscore the initiatives X.X% XX% the We cost operating this marketplace. cost percentage our rides foundation results deep of nearly gross execution, growth safety discipline, XX% active XXXX. up EBITDA to quality In technology riders, We gross platform. continued year XX% durability

another delivered of of and $XXX cash strong free GAAP flow profitability also quarter We million.

factors inform to and trends We're Now looking QX the expecting QX our outlook. to following ahead guidance.

rides in in and levels year-over-year marketplace support demand, and service durable frequency. growth market-leading First, riders, by healthy growth growth will strong our driven active

continue We with competitively other while dynamics. balancing reliably will and price this seasonal to

approximately general in have our will less XXXX growth weather point North in rides against X more in XXXX QX of of and rides to encourages is year, the and percentage marketplace to and duration across be a is at that balanced very slowest ride; and the strength shorter staying holidays local. parts leap which is bookings everyone Further, bike year-over-year quarter as growth. due to seasonal tend including some in our other a taking of The many and traditionally the or, discourages and least, headwind factors, our QX is gross America the day X from health recovering

dynamics pricing quarter-to-date. the that as And lastly, persisted lower I earlier, in mentioned fourth have late started quarter

or XX% bookings adjusted year-over-year year-over-year and growth billion that, we percentage approximately to $X.X X.X% industry-leading approximately margin EBITDA of levels the as growth million gross the Given first $X.XX for XX% of expect an of gross X.X%. to quarter, rides approximately in to and driven to million mid-teens EBITDA billion approximately engagement, by driver strong service of bookings a $XX $XX adjusted and with rider

announcement Separately, to given means end put X, in that with give for Delta the color for further that on you partnership will perspective April Lyft. I recent help that what our to want

We percentage will in points, growth QX our bookings X by this and impact in gross approximately XXXX. X expect rise respectively, starting year-over-year

impact assumes partnerships continued plans ones. and this our plan and confident in not driven our long to mid- change the further to growth adding long-range by in by and that. come. partnership strategy, offset remain announcement More existing Our the does our term We penetrating new

efficiently. never advantage the business market, our our We to the believe durability positioned strength the take to and growth ability our massive the better opportunity ahead. been of of run in We've of

Given robust free to I to have the flow our share. performance, shareholder XXXX to in our to deliver and maximize outstanding our two conviction cash commitment continue business value, updates

our million share a First, authorized has buyback board $XXX program.

growth Our consideration with previously buyback objective, systematic is with in allocation capital will and thoughtful our announced stock-based combined our with of offset dilution long-term our net from priorities be to compensation. share the pacing aligned The the and settlement, strategy.

our we to on due of combination, providing with notes the leverage reduce May our cash convertible in repaying flexibility the foundation In these strength balance XXXX, solid Second, by highlight sheet. and plan our actions balance to sheet, a support our growth. overall

store future about and for what's beyond. in next this and year in excited our confident We're

And with prepared ready we're to our take will operator, questions. now I conclude And that, remarks.

Operator

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

Bryan Smilek

on versus gross it recent deeper pressure the Is Doug. you pricing downward environment, Smilek or as recent a broadly provide framed moderating Bryan outlook? factors more more just just on the years? weighing XQ into color can bit what's increases for on It's I guess and just bookings digging more just in

John Risher

will give more then maybe specifically talk Bryan, and on it's the a I just that perspective little David. you can general, and start pricing in about with Erin impact.

just is price So and it everyone competitively simple and reliably. super have we a to strategy, knows, so pricing

doing quite responsive it's and So at couple of important, exactly have years that. very it's well, something it what and of years like, it's rallying sounds of adopted well. for of competitive and ago means worked quite kind we're adjusting we well-built a it. And couple sort very now a good of it and with We we're and

on And that's interesting then reliable a is also super lot. because something we've also worked

coming we've course, tailwinds they Price heard what about huge, pricing. because little a that's riders the us little time And are this dramatic your time again, give prime are know decreases You've separately. talk of lot in to about but is then just like of you we And I rides, Lock, for reliable context, prime question, like, a products a talked which introduced bit wasn't these down. center right,

context. of sort the that's So

that that, at that dynamic look marketplace. suggests a you when So we're in

they sometimes down bit, expect sort well and Again, little that. of little up a sometimes of dealing a that. for would prices we're bit, pop go kind with built we're You

turn I'll to kind And and can about we've recent Erin so seen. little over she more of talk a bit now things the it

Erin Brewer

that of I Yes. some some I'm important in think Bryan. your was just at so provide a details your bear to in Thanks, context with There me because getting going lot minute and question, for are some a points.

with So me start context let overall. first some

insurance, it's seen of increases steady. the pretty Those think but time. of in underlying So stable. increases steady been It's are happen speaking, sort that generally gradual for the XXXX, about, generally relatively marketplace, been been if structural our result in stable. pricing Lyft price example, has I We've over

we've recent So that's what the in history. seen

that's per of only scooters important bikes one but in know bookings We obviously an mix, I ride, business. of I but that, think visible the our rideshare, result everyone remind is that inclusive modes, and not metrics to different more is right? a also it's gross of have context it's

per will time. mix over gross that impact bookings So ride

and base question when on prices talk it all any in average, circling basis, is base really on markets and moment, is of would so define know, leverage it's the I'll pricing we're a charge per-mile basis. market. mentioned, as and time So We that David then the means because about. which, this let to we in on a exclude across what as our we daily that coupons, And make you competitive we a about into goal, talking core competitive just look marketing then what fall what use sales line. pricing, price all our And comparisons. When we reference into at rideshare, given around competitively sources. And observed multiple is our me pricing we the

that think I is context important.

been remarks me talked the what here across dynamics, saw fourth we've now recently. of kind generally that So some in to U.S. in the it about move lower I prices pricing let new prepared seeing my quarter, we late

you our As always to competitively. is strategy price know,

lowered some the marketplace base to results. last proud expectations. that our We prices prices. of our of At few and and keep we delivered good We our balanced couponing growth competitive. above the obviously, same year profitability did time, rides So at or was in additional really the weeks we're

a forward QX, we're today what and me give let January. context to communicating flash little on around you So around real-time just

We how is teens. rides growth we've backbone high out? fundamental active in in growth in frequency. in And see play continued continue riders, to the and example, foundational for growth really the that seen that the continued strength, does And So strong business. January, growth of

our is competitive, you was at lowest basis, in I'll foundations those on last the strong. X quarters. the really end At with been really, it's at time, the are So remain per-mile point January, of a same price the what to share

sense you the a gives point comparison that some So trends. of for

answer what and And strongest that long in. the started is position your operationally, are reiterate I with, question, the But strong. here details takeaway, to been important. the David I in think and ever the we're sitting So but financially, incredibly context we've I'll think is foundation today,

Operator

next comes question of Your from McGovern of line Michael America. the Bank of

Michael McGovern

your in the areas had their competitor think U.S. kind entrants market, volume bookings talked largest the new growth of Waymo I in or in particular. about in that

trajectory just for to the seem So with the you environment rates in prices, pricing and fourth be lower seeing least? positively the anything San give Francisco, would deliver you you're margins, just able the like of change in those despite the if then which lower us at take recent I lines, confident trend confident was to for gross from in curious be in still are you And quarter, to how here along trending to example. what continue with going XXXX How pricing? improvement in are

John Risher

on Michael, can the take maybe super just Sure. and the kind it's David. question second, and briefly up of first from there. then first pick I'll touch Erin

So quite on market yes, entrants, it's interesting.

extent; San see If is driving pretty well; Phoenix really little around. amazing a Waymos little to you've Waymo extent, been in you'll Diego, L.A., And is. San lot of a lesser Francisco; lesser as to tech, it

You a remarkable. pretty that can't seeing no driving is with deny driver car

when Now done what it's our interesting. you business, it's to quite at look

it and before flat. is remains I San in said our our Francisco, and true, share roughly So share, this

taking or that so but share they're from what increasing it us. that is either rides, market suggest? else. not And course, does But That they're taking they're suggests suggests from that what somebody delivering of -- the so

expand enter they'll that's great self-driving market. the for suggests, cars would average, on expect, as that is, what a because which saying actually we we've while marketplace, the So been

product quite a it's different maybe Now in bit little In little it a of mean Phoenix, a dynamic. San bit seeing be Waymo premium. a we're XX% I of higher. Actually, is premium-priced Francisco. could here

that's is is seeing Phoenix, another controlled Phoenix. cars, well, growth aggressively by our what AV in share, in which our quite actually sort faster So of market you're is

So this is strange.

faster is growth than is the country. across it Phoenix in Our

have there. faster mid-teens seeing In Phoenix, growth. So actually it across the we're we country,

fine So that's share is right? again, there. also very And our interesting,

somebody some again, So again, maybe taking demand, these Waymo maybe you've they're that new suggests in, what else. new they're got is unlocking coming that from share cars

see we kind what of there. So like we

small. are These relatively

we're And and Here, so remember, cities' operation what talking so even Waymos geographies. of highways forth relatively calling ODs, just part districts, of on. so of you'll we're and so those on the a about don't go sort small

lot the sort So smallish the it's a and interesting taking suggests But them again, to but bit liking of are that it trends a them, thing. then people rideshare. a of very little time, because, of continuing at are same take

say taken more is churn a will basis they've I Lyft rate our X-day a on words, taking actually than. after other Waymo. than regularly after In back better people come that

people So else. it of that's kind checking there out something are are lot of interesting. then doing It's who maybe suggesting and a

that's we're Okay. about I'm more That what was we'll yes. a very separately, sure long answer, saying, talk AVs but

just yes. But And business On say of it and can mix to about is we maybe of jump of kind here there in our different little And lines or tools the of of a talk if mix. we there. margins, different talked will are flexibility we tag-team lot more kind comes have. answer confident briefly, can of some to. us then lot that We a segments We're I'll about need Erin that a give we early. when briefly

Erin Brewer

our of that the nothing plan, the has Day plan line standpoint and North which in to. Why bottom Star. Investor never would that? Hands say remains a at down, and Star. And our we foundations healthier, What give is the happy been has even is in the financial an changed. June confidence fact, platform both detailed our growth on indication, levers. more is The our any drivers North if, 'XX standpoint. us And that's sure, I execution Yes, from long-range

in opportunity and of lot of ahead a has market growing it. great foremost, that First a we're

that we And our in in growing and And the growing active some when rider of are fantastic expectations than base, stronger were frequency And they ahead in. a that's core way that and the framework made in so in around all of of long-range June. underpinnings in of that's them that talked around position innovated be today behind progress we areas, have plan to just the foundations about and then, those strategy, couple strategy, remarks; in operational pillars great of XXXX; course, a we've of the his day-to-day feel mentioned prepared our the our our we areas sort that David excellence, execution, those in the about. partnership media market,

LRP And really Star. our so does remain our North

You beginning little change second about quarter. remarks XXXX. asked color to my a in of prepared Delta, the around bit That's is known some the gave transition right? a at that I going

So I wanted to to give you some progresses. percentage sustainably framing for year stays what be the low that lower, that might impact look point If gross could like. We'll a see how environment price bookings. single-digit our the

We rides also growth. would probably see higher

So see plays day, of how that the end at we'll out. the

we as mentioned, David and the levers of positioned. all our about really as really, business well profitability, of feel we model But think

focused expand to are continuing adjusted margins. We on EBITDA our

continue customer to will expansion. efficiencies achieve and get higher We leverage. mode our We'll to continue some of margin incentives. in David fixed cost highlighted

XXXX right continue our run at to grow we'll base. don't our XXXX track $XXX And in rate an at to rate Media Day. $XX about annualized with and We continue our million million. Investor partnership exited around the that fourth run quarter exit we talked And grow will on to business. forget, We of we annualized expect that

but a And of in about conviction lot all our good it's of detail, delivery feel our we areas. think that's North understand important Star. to So our those LRP as I our across

Operator

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

Eric Sheridan

think, to I come to, love the remarks. back prepared I'd

a I felt a state how talked worked and and your and improve know you're evolve this XX product two as Lyft has issue with supply density. priorities years of what driver in you in of how you've in strategic supply about drivers XXXX as relationship You accomplished been platform. over XXXX? preferences sort supply you bit parts, for on the continued and driver for look to talk increase thinking the the investments last X an or you, into maybe little Can about you to about the

John Risher

voice. that your great take I'll to Eric, to here, hear one Sure. start

my our gap now take great, brief, victory I a a us say this, said, yes, so question. let's tiny one lap but with? driving maybe for foundational. question have that So So biggest we the again, very on and remarks I'll as a preference in I it's mean, it you you prefer because And simple that's who mentioned or is between do driving XX-point competitor. right? Basically, prepared

what so how how a they in mean? rider really that and So X world we car, happen? Well, lot every and And we is, it do showing customers driver, man, make of both did matter. a then happened it in does investments the a that have

all but we price, do We've, about means quite things, the and more talked scheduled than make and breakout, There's time, forecast the earnings things We've you to, different different arrive; a these on. gets things. driver longer one ride minutes for earnings the that, what then up upfront, XX% like guarantee. wait do? would thing We way traffic of called gets but a strange lot we So so in takes than as or did basically promised soon We that. a couple it earnings a but fixed something for and we I happens, on now then technical it's the say, the as some problems. one was rides, which -- pay, commit to if

Some of are them small. quite

Some of big. them are quite

them to little Some driving. have the do with of day-to-day actually very

of lines. even mention Gosh, wanted something driver else with effectively and to I jobs. some so along take cool to when they put on other same of the building, go Anyway, America, of into a allows skill thing. that We've take of do investment has yes, drivers Merit can there's partnership to classes sort which a lot sort -- the a kind here's

AI of testing That has that problems. time drivers' the a driver right? lot time have driving. on That's not they middle is been spending problem. in money, to Remember, a to we've to problem, when now spend resolving So how of that's a time they're respond

working so a on And other AI features, we're bunch analysis just the day. of did the and we

in Just we more that AI time support drivers we'll which did of XX,XXX estimate questions. some now roll saved hours out we test in January, some handle to their based that using on we're of broadly, about because X

down exceed, bunch is platform anyway, that simple to thing, them. When So things behind drivers succeed. comes our a but whole which of want to it's succeeds. drivers we our want very understand drivers we it we're to a And

Okay.

does What two what things. mean? so Now is it means it

expect of spend less we exactly acquisition. here's bit can can on a spend could this, the maybe can have money little what to driver driver you And maybe retention. expect. We a but little to expect some future, predict on never We less to money

rewards alluded of putting kind to a kind the that, I being in to are on drivers for great reward program, platform. place them We of

financial time the the be billions an impact of will of amount I this over make spend of platform, lot drivers on enormous money, money we dollars. large. mean a So very of

And improvements a so impact. huge there even have small

our such coming can finish strategy. And for just up of they making which independent you got everyone is lot contractors, I'll they good our by provide less drivers that expensive to we just the they keep knows, thing while and back, driving and sure to experience, that have saying retain say acquire. it's again, that's than they've put they not are Lyft, energy, much And but to a service, do, it into we a employees, like great are

Operator

Black, Your comes line next Deutsche of Benjamin from question the Bank.

Benjamin Black

that did you then of your your potential And plans How how respectively? thinking you else beyond you mentioned terms you does for exclusive? highs. technical dig type Dallas economic other What quickly, into expansion breakthrough breakthroughs? a there? about it of what where technical And your ETAs talk partnership? in do models Is timing, it you also we just you industry Can see should about deeper just Can And come about? to drove in think the together? bit the Mobileye little are and Marubeni

John Risher

two Thanks Yes, Sure. Benjamin. the cool questions, question. for

but So going first. I'm a on little like expansively I'm going do yes, minute forgive go on the to think let's AVs me, anyway, casting little bit And Erin matters. this. was bit I framework But on shade, Erin, that to I'm on compliment. a thinks a because a go

the tech, have a reliable Waymo by They're obviously. but -- thing. working say, There's right? way, forth. got and is." AVs, And sort certain really easy, group, look you on so it's successful, but so how of look it I'm So think, little "Oh, does. it's tech it, well, kind Yes, narrowly at tech expensive. super AV do company to little a out bunch and did there, interesting They it's not responding safe, of it's They approach. the AV very gosh, things another a maybe to own AV this, the a very whole very what I its bit mean there's of the amazing A of and I

make autonomously we're and And using get X we deal a been they're You Lyft-ready one as Mobileye know to trying and you technology. an innovator mentioned as is, know, we have early the start ways, of tech, they've to technology last as X, you this ultimately, X. maybe cars calling to driver to in signed a year assist in umbrella leader Lyft-ready, Mobileye. them And Level their and of that as with an many world's of last under possible. in sort time around, number different AV

Okay.

of the sort background. that's So

Now what extent, financing this puts support structure of kind is right? of And operations. building, to announcement that's certain What another happened that of house yesterday? into made we're happened and, sort fleet we a an yesterday sort

got important. the value of a So AV again, end very stepping at second, you tech spectrum, one back for

And got world. Toyotas You've thing. got the financing. manufacturers Atlanta of May another OEMs, the then example, so Mobility, the right, We're using, with car in you've for that's

going value buy valuable time. expensive certain assets, own get And to cars they're they less them. and characteristics. over have Someone's these and Most things

you've so financing in these be the expert things. to And very of got

$XX huge very, trading but Japanese Marubeni, They new for number around a couple some in been one which about for AVs been market large, many has the the world. business of auto in at a is leasing do in potential I a they're billion And countries things a them. do company, looking as recently mean very they that things, they've leasing, is They're in investing a the of in particular. of years. conglomerate. And

commitment the like who have been these to the cars, for is financial company together on are Marubeni. And this came deal take way so a of we willing owning looking partners

money of rate think lines They're, as of Of course, company. business They a I different is X.X%. can have interest say, around. use move their I Japan, trading they to sort

they what do, and they So a scale. this big is do at it very anyway,

commitment the then come back. finishing I'll up just their So then -- and chain, value

the have you Then whole important and fleet of management incredibly things, again, side so underappreciated.

You've got to onboard things. these

these to insure vehicles. got You've

and point. It's been And marketing, when separate job a complex. these done, days our stuff, years. things a hours cars a pricing and that's that well over under get tens and all they're the the repaired marketplace XX subsidiary, X different XX,XXX do Anyway, We do all thousands off-boarded that different got things. over and You've very, obviously, and you ETA all with It's of piece, sure then one any and quite very of at good to obviously, the the customer-facing maintained a make they week. Flexdrive day, management charged cleaned whole thing.

Okay.

whole the chain. value that's So

sort Now be the it's now, back that announced the part in That's wonderful. level. the will car-ish for relationships. But markets that. of of certainly, to where for separately capacity This of them those less They X,XXX sign do because to gets you yet. what we're goal kind as the talk thing. scale these is and we with That a to talk Marubeni the technology. part financial time will going that It's great. about for to about is are just X And type not not the be We these of satisfying probably other are Dallas, a second. speed dating then We'll that to are other just and partnerships another part OEM more to little the They mix expect going long-term do mobilize start day. line that we're which markets. it have we up

that. that's So

maybe question, completely what I I forgot but it was. another you had think

Erin Brewer

there. It ETA was and industry breakthroughs highs around

John Risher

I Thanks. appreciate Yes. it.

share other an the our guys. is this market less Look, than is yes, amazing So accomplishment.

you that point, But smaller service expect providing that have market share, accomplished. you what a is that's that if we you have would So faster. would starting sort of, difficulty as a

a So down it seconds. for of I'll break just couple

a show of being we'll that's that's the not one so drivers, had. a have why to ever ago. and lot -- obviously, you've hours If to we've drivers. you things. before, smart. highest helps have about pick year if that's Eric's they relationship it for with And many things. up question you And a driver got we your basically, a thing, having good minute you, year-on-year It's faster That's obviously That's up a basis, so look on than many

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gives a grand time So X more that, couple that person scheme of does us gigantic that's of every the from it's not some but in predictability. months up ago. also a And things,

that's super cool. So

another that ETAs more you'll that past to Well, farther not and so example, and that a new it happens, that's I sort is the And when seen driver driver up infuriating to new match, and will will you. increases you'll get driver as you, maybe typically, that get a then matched of infuriating, just might top matched also you rider. closer. Rarely because more will on But in your cancel have of away. driver and open is it's promise driver be app right? stop, then for that and you sometimes and just I'll So a build assigned more, the

okay, So driver digits used are lower. be I the won't been the I done you to done? reduce much, in but number, we the we many tell and have give what here, exact much I've over now have you much, cancellations. We we things X to double can years

things and guys. think, XXX then it's really, up to in what allows see, lot a do us you've with an things of things, small and industry, confidence, rides one not thing these some make best team you say kind than can we team got But the the we're actually million that tech that's to got what bigger and the rides best So a these a I faster these amazing picking we X to the and all do from year, with do of million-plus small you really day, meaningful. marketplaces

Operator

Wolfe the Your next of question Khajuria, Shweta comes from line Research.

Shweta Khajuria

how magnitude commentary on then help of is two, please the XXXX. Let if contribution thinking in me year? could Lock in and impact from quantify And expect the you please. revenue, Price try of second terms XXXX about us you Any this you're advertising

Erin Brewer

Sure. I'll take that.

go there. the second first, Let's see, I'll with start and from then one we'll

the that rate for bookings million. QX a on just would with basis, which an at about And million our few run the expectation exited XXXX, we consistent an our So in exit in gross bookings. $XX in Media year annualized of goal, for rate, be approximately approximately a of the ago business, QX mentioned thinking $XXX again, Media to I XXXX, that business be is, moments annualized

relates as that's overall. hopefully, it to helpful So Media

John Risher

give I'll probably won't Lock, you you tiny financial give more but just data we bit on color. And Price here, a much

we or So product, something we launched that ago And like that. that like it. the the simple. like I the months X it X the now, about customers what it's it, mean is most was thing

as a different we've maybe came and we rides given, so mentioned that just way has And that times dislike of carried far, for fluctuating X.X almost until it given I about million so is showed number. way. years as before, prices great that sort an assumption kind I along many the it in be said very briefly, has as to really customers of a We've rideshare which

to who in the of expanded great. is week can rolling just it But week, it a out X hours it have are now couple going days still shift. night XX which over actually next means testing. last cover That's It's We is What the weeks. it's great. on that day, help a people

interesting. really It's

X right, something, to right. that's X think people to tend X, work but or not from quickly, You

people, taken feature. of we are they the X.X should who the people, million the it way, actually to for of this are care health have not morning. not extraordinary Those or early these And amount would the by I largely people that rides, incremental, otherwise that largely think We an in have right, middle were rides say night go incremental.

it by vacation when So why you to or you're you the now totality the way, maybe of pause couple that, understand look And we want the can something. you it. at a we when of also week expand ability to sort give of on

trying but and this ways as to as some give just it, on many choose financials someday, lean into not riders maybe this possible we'll really to yet. give So to

Operator

from line comes next Your of the question Stephen UBS. Ju,

Stephen Ju

think I David, be time became the might this you CEO. So from when first

hoping a with think terms that riders. you will start competitor wedge over relative time, product and you to to your in up Lyft were opening mean development I of innovation, will what

as a helping day commoditized do get no but point. consumers you longer where take you that coin the driving over in you'll a being time. flip every than but week, of versus coin service Uber do are preference the of So flip, view terms understand you I a greater Lyft think hopefully,

John Risher

Yes.

sure. I Thanks. that missed love I that Yes, Steve? Was name. question. the For

that room. take up I'll Cool. I'm yes. as getting Okay, a thumbs around the

quantify to maybe I more. it, give don't touch I how sure So know, you quite not I'm a but can

-- sure, would And amount this of right, I kind basics That's, So paying fair one. that right, I maybe some your pricing think say it getting forth way, for and at there was good. beginning say I'll so on. and is a so memory of job we right the

platform. Lock really the and sort you forth job do of is I've that; start on so Connect, until You three amount two innovate very and done. we've you done job of proud Women+ don't get to fair to which of Price Then of top so that. have a you and two, move And mentioned permission into one on. jobs

So that's good. super

yesterday." in that customers' It's understand waking going into "I'm company, right it's which more get choice, people takes not competitor better did saying, that inertia. actually a they do they while And But another a the the starting choice to choice now right morning really I'm for I people's is is to up now, something a to that and a choice, But same biggest brains thing choice. faster inertia, They our is one there's want example, a woman have to have innovative. driver, only and If a now. that's for see. woman, better they're hard a

been have we -- I'd with say the that had say pleased would I'm I success far. so we've there

be to going the is have thing thing. a start this because to things. you're little ways see to a start is think it I next People bit to be in vocal we more reminded about different these of

we've so ways. some up got new in to show And

you'll so well. know how it. us quite And as to But doing see of little that I a don't quantify

I think we're still, I journey. don't know, early that in relatively

I a lot -- people drive Lyft. I of for think

the say After what And can and of why better. Lyft. riders chose of one guys like these sometimes. reasons, I different I'm all things have ask you You to very I this, I they some I And and that's of in. say interesting pleased talk they sorts post to LinkedIn is including, drive, often, them things on to see

as don't better have to. we not hear not want to, -- hear about think that as us. don't your drivers But often chose I in I your a treat so it's they a and I I experience as I that why often cars think as message as you often want it's as forth. better, and I clear And often it

things But guys, on and like fact I do us. forth, like So like soon. more they the you'll coming we the so people, surveys use that that and other we where they but again, expect brand I are, when like

to know real got on we're a going that build So they've and people choice. really let

Operator

question the Your next from Michael of Morton, comes MoffettNathanson. line

Michael Morton

decrease relative Just cost to the Would be in can G&A outperformance Erin. drove hear love as in provide what you two, great well. I to then details would think, And revenue quarter-over-quarter for the of guide. your on

Erin Brewer

that distance sequential a guide agreements that very in sort for it there. know better. when there's to QX third-party of bit Yes. don't of you're insurance we a question. headline cost renewed of of came the on that revenue, our I Thanks, gave impacts big Trip we sort Michael, specific and revenue. right, Cost a QX,

a average, going little bit to impact that. on were So shorter, trips that's if

primarily really that's the there revenue. on So delta cost of

And through like little There's flows bit legal insurance excess primary G&A. then not a in times. of this and be in there releases, lumpy. G&A forget, accruals things about but and can our accruals our G&A, couple we've tax beyond talked that insurance, a don't auto, releases,

line half than fixed. So is of that really less

will but So would specific out two little time, I from bit of one overall, that a there. hopefully, changes quarter or gives time for call that the you be to a items Not context. there

Operator

line of comes Kulkarni question Your Rohit next of the ROTH from Capital.

Rohit Kulkarni

And to picture, booking you 'XX seeing. Just trends outlook half that very compare felt a quick or of on latest that's levels? the exceed? then just is where X-year say, if market you are ask would Perhaps that a given big to question, first versus, you you XX% achieve and does encouraging. XXXX pre-pandemic, you one since 'XX, share, how could Perhaps what's market highest comment regards X-year your that on thinking 'XX your with to growth were share outlook

John Risher

Yes.

address see if I it. can me Let

Erin and I different both I address maybe those ways. in think actually of will

price go this people of up. look, dynamic seesaw I it's are happen. going rides be little quarter-by-quarter, a at very different And seeing thing rides just fundamentals thing So We're bit more that little like We're I'll a of all that's happens. And great. little down, are maybe a demand. reality speak down, The like, sorts a XXXX, going services. They're on great that very a there." Like up, great and look what's laser-focused for we're worried. of goes the bit know go the reality, a to confident. sort is gosh, seeing bookings Like and goes This price personally so going marketplace, trends. is to on Here's "Oh, second.

this. hard to to of me It's for be built much so again, we're we're about this too a So what thing. stress It comes for what, -- that's why business It's would strange sort territory. it's built try with sort of what the for.

margins, are to haven't nonemergency run Lux won't year; your year-on-year, But business of rate million some an we're this just Now said talked liking; grown [ kind health higher-margin have some a transportation. everything leader of that our higher-margin the medical I've other as just industry care that and Media we that behind, business, and right? from said, again, we're that we that's we customers That's as about, even of That's products about really you where haven't end and a XX% $XXX the at maybe our other Erin ] and example, really business, business. as watch we're much things confident as Erin talked have getting with mentioned, much things an yet. then and

the lot But when line, both that and together, things top us I us you line look gives confidence hope, a at allows maybe, all those maybe of the bottom and and and we've look at we able what of those, to what little any you, I at bit and hope, have to one look look quarter-by-quarter, beyond a been produce. the results happens

that's sort our view. of So

Maybe, talk plan, Erin, market or then bit can little a about we long-term on the 'XX share. the

Erin Brewer

for thing Yes. that plan of bit our we previously, simple framework a I is, as the a of long-range I plan, little as only mentioned the really, very end the guess add about that day, Nothing in we set few the us, opportunity. there. can would against grounded to at changed. innovate the believe We we're that is I in and can runway rideshare. growth tons of and laser-focused there's Nothing very quickly. that changed opportunity and act that things. market market, are a large ahead One, on We of this has we has foundation

great that continuing of the times XXXX. look base, couple belief about. to mentioned the platform in continuing drive muscle, exceptionally growth other that And of a built muscle able the often that that to our operate at say, on piece I've we is expand innovate, right and consistently. growth we feel Media and growth, the muscle about David, excellent then an track. of to partnership XXXX trajectory that And that the we then And seen we that you way, foundation in we're continuing even kind And our we've be we beyond, active as to key rider our of would sometimes how built, frequency through

foundations, again, So has those changed. nothing

overall. overall maybe And feet, Obviously, a of you us, reasonable think, you XX,XXX assume as or steady a look reasonable as it's sort pricing probably environment. a on any about about back stepping basis, we for said plan, said still and that's speak assumption longer-range it, stable, to multiyear I

that's what I'd So add to that.

John Risher

Maybe then share thing And that we of Wonderful. very is these all trailing end, now. on you look a the what bit overall And as again, of see just at, know. the Typically, context on, at to of we I first, see did right indicator. like a kind you something Yes. everyone. It's share, things don't for the worked position was kind our impact.

earlier think, sort seeing we're mid-teens. I mentioned, Erin of rides fact, in up In that

up I year-on-year. think XX% week, we last saw rides

me Because doing, that. To back joined, be is know how don't the other know I'm since certainly seen, we've I've means honest, good so looked it. it data about for that but know working. is guys doing compare certainly, that know it's I haven't that that at feeling, to COVID. sure share, highest But since what to means what share -- so so not the a that's So we we're suggests hard we're doing that the probably right? the work how I in it's don't I XXXX, from

Operator

of comes question the Your Devnani, Nikhil next from Bernstein. line

Nikhil Devnani

Is seems few this more on market how taking QX? volume of a right decision-making versus around be if trying Apologies of it like or some some the sense incentives bit here have the you because just the here to decisions to as rides want share? if you see repetitive, you're flexibility pricing consumer improving. now, supply And elaborate share get to But drive prints these priority into margins. Just changes a and better side it do retain of change you letting a that tonight. important favor been a in does is Or there's front-footed bit retain to some moderates, growth? go your incentives But model all? most in could

John Risher

I and Erin one. will on again, tag-team Nikhil, this

a of true That's first, I sure. is we're see, almost it kind middle, That we supply driver -- that our is a in so retention seeing, maybe that put the at little versus bit Let's not wouldn't true. the kind to is flexibility, I say this of look tiny. businesses And as absolutely just of is scale how XXX gives car for scale start not. the the X frame us share it with make okay, we rideshare. XXX wouldn't I North frame America use And in again, said, number, private XXX Look, maybe, mean, do billion, across in tend It's rideshare billion we business. year mean, rides. let's I out total rides decisions. billion shouldn't a Erin but to billion, well. very It's of remember, it

obsession the profitable So it's growth. that drives a so scale order we first scale is customer business and gigantic our -- say so

us that. rides. good to be do It better. Everything a more thing is. be But gosh, We have is for get of and course, we'll we it and to is will just profitable,

rides. make faster You they do happier they've get money tend times. in are and more more high more up picked with to because the to Drivers utilization got

again, I those so much think things, I kind all it So thing. think, sharing don't the of of as

Lyft I as drivers platform we've think people had. experience it ever great delivering picking of and driving forth. we've on on and so so We're the platform We're the got up in-car because like service best faster.

best as interest to, the our envelope in get frankly, that as it's of within operate we many want. sort can So we rides

turn to it to over Erin. going I'm

Erin Brewer

term, to over the maintain guide the only run what's know, Yes. happening that this for think about incredibly we of would marketplace pricing to Nikhil, strategy in right? trade off all maintaining the competitively, that terms fundamentally but balance time. look our thoughtful on in in health about that's marketplace, ways, I having talked long the business is those important it's the goals. And we to and in that the will context Nothing margin if balance I year-over-year, that of has growth consideration over thing there. QX, doing add understand, of in XX% that of eye long you reliably. guess And as so is important. changed term provided our We of And at those still I margin our also you in expansion time, the real to do we balance incentives,

Operator

no Risher, that, are There for further With ahead. closing Chief time. go questions Please this final call at back the I to Executive turn remarks. over Officer, will now David

John Risher

Yes. sure. For

never I think day. every sure hope position. riders continue amazing So all. as as been XXXX, we The I and year of it lies And pretty Super serving does thank whole a millions and you are, connecting about it, what was you single and hear drivers ahead, excited a us. in too. can for a result, you team stronger we've

Thanks with guys, being this thanks, with Thank ride soon everyone, to and us, you. you, very again. on will we for you connect

Operator

ask Ladies and your you please gentlemen, concludes lines. thank and that disconnect our you for that participating, conference call. We

Lyft (LYFT) 11 Feb 252024 Q4 Earnings call transcript