Lyft (LYFT) 8 Nov 222022 Q3 Earnings call transcript

Good afternoon, and welcome to the Lyft Third Quarter 2022 Earnings Call. [Operator Instructions].

As a reminder, this conference call is being recorded. I would now like to turn the call over to Sonya Banerjee, Head of Investor Relations.

You may begin.

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

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

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

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

afternoon. good and Sonya, Thanks,

want to I'm to the mission. had for contributions of all week. thank building their towards team that all First, last say members we of I goodbye business to the the grateful and advancing

seasonality. business. focus riders, and entire our While force active rides beat and top revenues face beating the growing to drivers sets riders rideshare initiatives Thank the financial team for the scooter the outlook, of continued Airport a I'm With Then actions And highest my to bike we've reached hard take comments COVID our the the last QX business in active our a drivers, company's key taken in work reflecting care rides on deliver I'm strong recapping results. and kick of warm our to by off going all-time were QX, to trips were began, things on in $X.XXX rides accelerate in of billion which great going a adjusted in for new highest and reached weather XXXX total quarter. Demand our on in high, see. strong. history. execution, to EBITDA focus we XXXX set position of end was targets. strong all QX are reduction and a again record was level you where difficult, can XX.X% strong the uncertainty. demand we of external knowing the your us And to up and since

Lyft Additionally, organically adoption active drivers quarter-over-quarter even year. grew the drivers than our Lyft and Lyft. and number showed XX% of QX, including bookings choosing growth the strongest managed offerings, BXB in business high reached new concierge. with by And a year-over-year Pass strong more the In more of using Lyft are

at drivers organic strong tailwinds. grew faster by an helped New rate, even

fact, In organically. of half QX acquired were more than in new drivers

opportunities demand. valuable supplemental access drivers to on gives network earnings Our

We was a people service in COVID, rideshare levels keep was opportunities these average our the getting it was our in that ETA U.S., was than on network to our QX and it 'XX QX they've closer where Overall and got in looking expect conversion Across even years. for highest been see rideshare kinds the QX before in of faster several rate to more recessionary environment. better.

on which year-over-year. price prime the mile driver riders, declined time. were per per U.S. did for gave rides Active utilized reflecting Drivers in average tips they than XX% earnings this quarter XXXX. quarter-over-quarter, including in is productive $XX average incredibly average An also more were up less drivers Additionally, hour, and X% north QX. bonuses, of The

and strongest result operating $XXX expenses; insurance the anticipation All basis. real QX costs to our and taking talk that hard a rising Now This to make X we're the cost continued the done we've annualized costs, I'm all using been This action. savings reflects expected of accelerate headwinds headcount; categories: in, about resources going initiatives and go of with of estate. and includes an on initiatives since work In roughly we've sure across implementing prudent decisive the look our reduction million we've forward. taking at to been economic are returns. in QX to

the our this layers that focus to to to decision-making size Earlier count. significantly hiring. right One our hard year, manage It team it's remove reflected head was we're expenses and the of slowed and step froze management carefully new in action accelerate Last on for we business. continuation was then but First, this execution. week's a and a commitment decision, environment. confident

operating expenses. reduced particularly marketing. we to of expenses, services professional spending, inclusive and Starting related QX, Second, various limited in discretionary operating

Third, are remotely, half. footprint further greater highest go actions estate. in our with reducing our team Since real that prioritization hand efficiency speed. related and operational working initiatives continued our These approximately enjoy cutting we will estate enable office now by many streamlining the and and ROI members of real costs hand the

in also are levers our We marketplace. other using

provide fee were net Given in that the roughly uptick in to the riders help to this coverage. With gas fuel surcharge been able insurance since increased impact on March our remove moderating, so neutral. service we effect had important we've been also costs, prices has the

drivers providing and opportunities Additionally, competitive earnings we're fuel focused rewards. on

we sequential cost $XX while headwind expect our So of in renewal. revenue due an QX million and insurance to

mind, to offset XX year The Keep adjusted locked to agreements in that insurance risk in our more than on We impact began months. October X. for are EBITDA. the expect also fiscal reflecting updated transfer

costs months. ensure actions we're QX, business will long line So a changes and in in more costs insurance a Coming expect QX, will impact approach over term. to than starting take and to managing continuing the are bottom strong successful the next mileage taking volumes in we're period. to QX in reflect off entire insurance The quarter-to-quarter differences each we prudent of the we over the ride higher in the the XX our is offset typical mix,

Time confident business our even in As time difficult XXXX. long-term execution global overcome we to results. our in ability I confident pandemic. free to EBITDA on than decisions again, of quarter expected back million work cash strong said delivered ability target and we're deliver navigating deliver and adjusted to The in like billion what near-term been a set deliver we up hard and and than doing We would profitability reinforce This and and now to results. to feel business did $XXX last and today, proven in continue ability $X our of we've EBITDA XXXX, accelerate more is we our sets flow after of sooner challenges. more to our adjusted first goal October we've headwinds make us during strong

the call me to turn share our Let on the over financials. details Elaine to

rides good year-over-year. ride new ride $XX.X outlook of our up more through and the up high X% billion, delivered XX% quarter, up and to new we revenues travel strong reflecting growth. more $X.XX driven revenue reached than X% end of sustained QX. scooters increase all-time afternoon, in billion highest bikes Revenue Active Rider share QX the year-over-year. In revenues with by of associated XX% addition than per came Revenue pickup Logan, billion. and of you, high with X was Thank third year-over-year. $X.XX all-time in in total quarter-over-quarter of The per everybody. to trips $X.XX level and Active higher the towards reflects growth high million reached writers longer XX% years, rider $XX.XX, given quarter-over-quarter a the in strength

renewal align margin QX note on, outperformance with in items higher our A to in points income Before sequentially of reflecting guidance be Normalizing filed today which the GAAP line. to our a of non-GAAP Form strength. earnings accounting decreased This our was transfer $XX.X in found third time shifted Relative 'XX, X-K Investor XX%. that risk non-GAAP as earnings margin I our in QX I discrete reconciliation move available items to been Contribution million with measures was website exclude was stock-based basis that than QX in and for with SEC. Relations now with and other XXX compensation unless has on and contribution rideshare XXX release, quarter by declined XX% may all historical normal the results and basis to QX points, renewal our contribution statement furnished is otherwise want our are basis reflecting points. margin detailed by XXX indicated, in select release. the

administrator the claims especially close the a we can changes out claims is claims expensive that third XXXX adverse did longer the by regulatory expected. of close, historical third-party the more affecting the as they agencies subject insurance between inflationary to liabilities claims that $XX and This October The primarily to become, not to have specifically contribution broader when legacy and take are required to associated pressures as related quarter, attributable As for was development million. is insurance the reminder, there development effectively adverse would these XXXX, In periods. September industry. excludes with to

of that were We by legacy quickly open resolve to remaining working claims are our partner. the XX% handled

on for the Let me update months. XX that's provide in place quick insurance a structure next the

year, as the transferred did significant third-party Just of insurance risk previous partners. to a we best-in-class we've fiscal for majority

transfer of to So been agreements transfer that our believe we X, time, strategy future have of Over our all as adverse. our in. October exposure risk limit risk locked will

in revenue by quarter-over-quarter expenses In of Let's cost 'XX. a roughly percentage basis QX the XXX aggregate, as QX. points of these versus operating basis move XXX revenue to non-GAAP expenses below declined of points and

with start me operations Let and support.

from increase partial down our XX more basis QX. expense QX operations in QX of last points support absolute ride as typically but Year-over-year bike basis of a terms, The the and is QX revenue, 'XX. XXX same from points Level in was of relative million reflection QX, from the was QX. XX.X%, closed impact in expense expense terms, a revenue XX divestiture and points year, XX.X% mid-July million sequential basis was even R&D we QX. operations that QX was of At we the percentage of last of seasonality, As peaks In on points basis up down of scooter and of drivers. volumes from comparisons better leverage in to support XXX 'XX. and of reflect R&D which grew and -- absolute In X onboarded roughly roughly from achieved $XXX.X QX, for this well time, supply $XXX.X XX from in was as and basis as marketing revenue. marketing cost year. Relative points QX support. reflecting continued reflection million. Within in from was QX, rideshare-related to absolute million. and In points demand incremental 'XX, was QX of and expense Normalizing by a discipline. QX, revenue of 'XX, down discrete our In basis points in tailwinds $X marketing G&A and 'XX. expense expense $XXX.X and of and a $X.X QX and items percentage terms, of G&A increased infrastructure as a of were with R&D XX.X% by roughly XX.X% as XXX percentage to in flat up X% million million million, increased sales investment QX QX Sales incentives XXX $XXX.X G&A discretionary basis QX was absolute of organic This of terms, sales and accounting quarter-over-quarter. $XX is 'XX. revenue

$XX high adjusted bottom of came every roughly that in in for EBITDA liquidity. the $XX $X.X of 'XX In short-term QX, of end revenue our announced terms for discrete our flowed million will sequential with in Adjusting of adjusted for $XX EBITDA. million above additional line, credit to items available accounting billion. of a the of QX QX million cash outlook profit today, cash, $XX growth $X.XX unrestricted million. in we provide investments we've entered We to million into QX and equivalents with $XXX revolving ended us And facility $X

Now I'd last difficult week our but reduce like the took workforce. to responsible we address to step

in incur related of $XX we expect disclosed to we As X-K and expect be restructuring, filed we incurred the a charge to this which on in November million $XX X, QX. between million will

compensation corresponding expense charges related well to or use we exit this to decision of sublease to and stock-based team charge a to certain addition restructuring In related and members affected a as to tax record payroll facilities. as expect ceased amount,

However, at this because we're these on our price. to estimate unable time they in charges future stock depend part

these We our calculation charges metrics. will restructuring of in non-GAAP exclude

I that factors note predict macroeconomic results. to Before rapidly and outlook, affect Future with conditions it's contained our to certainty. important impossible any our to move are

outlook. Now let our QX me share

our QX high expect and the be implies We revenues quarter-over-quarter XX% and XX% to year. $X.XXX between up the of of all-time billion, clear, our low new to versus of at end $X.XXX even range, To XX% billion guidance a for last business. X%

seasonality in saw QX last in the QX rideshare wide of consistent stronger is saw QX with revenue growth than sequential what which year, we we assumes guidance Our XXXX.

share seen in what we've on me Let QX. update an so far

reach consistent and the seasonality years Rideshare rides over all-time seen than roughly the our is to For X company the an month total is October, with are which track quarter. of XXXX. home around grew high. month-over-month October versus ride bookings month in X% holidays. on past we've stronger are December strongest generally saw in share people trends trends the more mind, November we in at Keep were spending robust, while fourth what the typically time ride it's with dampened the September, and

metric in will expect in winter. since bike also the to seasonality scooter and rideshare. this captures in active QX writers and softening riders impact We addition bike This scooter

the basis of In roughly XX.X%. QX insurance of our XXX of contribution margin renewals. QX, from terms is to from $XX points we approximately roughly decline points profitability, be XXX or This reflecting expect a impact million basis

will partly be per by inclusive However, ride service revenue offset fee we headwind expect the this higher of change.

scooter below As are Within a XX%. revenue a roughly to percentage savings bike of revenue, we XXX expect majority of G&A operating roughly cost support, and would represent QX and the there and points with operations in sequential of reflected expenses will to operations between support. associated basis This XX% improvement with QX. seasonality and be XXX and

of adjusted of would $XX point to implies QX, terms adjusted margin business. EBITDA quarter-over-quarter, $XXX In expect our EBITDA, to all-time points. we increase it, high margin contribution for X sequentially EBITDA deliver Guidance which adjusted expect decline on we an percentage million X% X%. in to be by we To million to while roughly expect put margin a will will X finer an

calendar Given outlook, our revenue $X.XX billion billion, we QX XXXX. up $X.XX versus XXXX year of roughly to XX% expect

We margin contribution XX%. year full of XXXX expect approximately

of $XXX the achieved X%. be EBITDA anticipate for the million margin Finally, year a twice full of than adjusted adjusted margin. triple with and with we more to level the year $XXX of million EBITDA would last This

of EBITDA business, which seeing even free of confident our and adjusted less defined marketplace $X we and We delivering we CapEx. work, ability $XXX in over to are operating financial management, the on deliver cost product is are targets million XXXX with in billion cash between more cash our our flow, laser-focused as are our our on momentum flow

driven We marketplace by see multiple bookings and John. efficiency discipline. it paths that, to to continue to turn let With cost milestones these achieving growth, over industry work me

will that riders for the our to accelerate continuing Thanks, Elaine. company. the We're biggest impact work and have drivers,

X with me the increasing how on we overall drivers riders. of our maps, start and Let specific marketplace efficiency are examples using

rideshare Approximately than each now there's Lyft, entirely are XX% our rides more ride maps. average, of mapping in-house can And our produce powered $X.XX incremental of and by First, that Lyft's more on and for value navigation. leverages mapping technology ahead. Lyft

This riders maps leveraging and marketplace are encountered drivers helping lift optimize time us We your to ride save add our can drivers to that solve mile daily. our routing. last is This and efficiency. problems

drivers to and with Dallas complexes, can occur under can markets ride couldn't pickups public be tech. mapping up when drop-offs these apartment closed Atlanta, And requests route entry example, weekly solving For points, XX% we and like addressed in lead a to point traditional circumstances. pain to of that

improvement with result of integration the by this make most integrated in a excited have can launching scaling Android is over X better maps it the market We've overall rideshare experience. years and to have the Auto So reducing requested to leveraging past nearly million a can also routing company this This lift in meaningful given to the We're few safer CarPlay. be clutter this dashboard in X and impact. expect rides September, integration. drivers driving and and Since to continue ahead. months first driving bring

seen drivers Next, and an increase is Upfront drivers has more are a the accelerating preference. using example. where spend great initiatives In Lyft. for markets we time been uptick driver upfront our pay preference can pay available, that in we've network

and network, goal the the of all rideshare greatly improved year. the we than XX% information can Driver by balance. on a week, covering accelerating rollout our loyalty rides driver innovations rides of increase upfront on of and acquisition more of end As last are is available and marketplace organic with

time points of driver serves well X affordable X It and full a on to our & experiences. funnel increase new us continuing are we the also side ensure we balance & great as as are Save months, with management. marketplace nearly the consumers pay example, broader priority utilization. Pickup to for Priority gives riders mode as spectrum acquisition a that This new the more for XX% Wait This rider to tools provide example a The riders, and demand of both range to ride another better for price little have delivers the more can margin a In can to value experience. result of Finally, X past management premium the riders. supply strong Lyft. to improve provides riders loyalty, Save helps doing pickup, and a frequency for we a increase rider us higher ride and have were option marketplace that With to is in work to pickup. lift. revenue reinforce management. faster Wait experience is

Finally, Lyft spend. more products. demographics; set There in and take transportation to on changes; be big more positioned new are consumer well extremely X fueling to up continues long-term consumer drivers and growth: and infrastructure is

start with me demographics. Let

every the As in in we've enough X shared on old U.S. year, to own. the past, become their ridesharing million people roughly use

digital Younger and members convenience the and value first of on-demand population flexibility have of services. preference a the

infrastructure option. space as touch like frame we new how time longer plus products. get pickup. including Today, in consumer changes of finally, and airports a tailwinds. our funding. with and serves curb core important additional And infrastructure price important continue launched Consider now with This save X an people's integrated offer reinforce also took points, airports rideshare bikes rentals use to and rideshare of time a points. And just Lyft lives. that wait queuing example comfortable ride priority categories range X provide and of airport to lots, modes reinforce designated changes. We've help years XX and source case. rideshare time, new with happen ago for and is Second, allocate over ridesharing. over These many It airport the

questions. continued In of years fact, larger about this use million wallets With a time excited ready community of ahead. grateful our and of X to and very I'm product than to first expect the we people portion more road in now months year, us. and Operator, and Lyft take to bike ahead because the the scooter transportation innovation, team capture the we're for systems. consumers' Lyft

[Operator Instructions].

is line question first Your Anmuth JPMorgan. Doug of from the with

I have two.

First, just on costs. insurance

a here we want you are I walk the riders, through pads and the in multiple is get what both changes then $XX top the to neutral, that And with drivers make talk XX% be if wanted I said of sure impact saying the the out just then flow, EBITDA about that but would perhaps XQ. I also you got those cash said think you the could free surcharges? million and you roll bottom to to sense to And just also helpful. offsets clearly. on in just -- line? the Can

we that. Yes, got Sure.

the insurance go Elaine to first going take then other about to is and So X. X on the we'll

of guidance, we more $XXX quarter-over-quarter, in insurance, cost our QX than and about That versus -- headwind. expect an of million revenue. our absolute driving of an QX, increase in headwind takes, $XX margin million On in puts QX contribution $XX that's of million the reflective then in then offset offsets Sure. that the And cost revenue in increase terms insurance is revenue below insurance quarter-on-quarter. given

making QX. reduction other to all $XX OpEx total we're in to in EBITDA $XX in decline and of $XX reflective OpEx. million million in from by our partial changes to roughly together, million will increase versus QX projections driving guide in our taken that's quarter And of QX. impact That's Our force QX a our of in million what's $XXX

prices. side. the insurance about Did talk I'll on that your answer question driver

Yes, that's helpful.

Great. Okay. Yes.

on in side, Number we're X Rewards the couple is driver So investing Lift the program. of a things. doing we're

we levels is eliminated a gives the the that versus the we upside drivers to the And a with had called start on line back last not cash with below the gas a cash the year or at supply. additionally Overall, is driver the seen rewards Lyft levels. back, gold churn are We meaningful higher platinum drivers. gas, with since access along meaningfully comes now So pretty our bumped accelerated driver have benefit. so, have bumped additional impact for XXXX fuel reward debit that driver quarter, all on card September. we we company our increased to in on The active have of that that that cash has bottom up growth and which October, month-over-month for any up X% surcharge partnership and back additionally,

So we're broadly, on feel with great question like right? was your that a XXXX And in we position then drivers. targets. Is the last .

The exactly. multiple pads Yes. .

Yes.

So the in and market that billion low slows, And the operating driver the as our more then ability unemployment of where acquisition labor X recession which to stays and mid-XX% the case tight call we as been feeling more leverage we currently costs assumes EBITDA growth a One confident hit We've macro and And bookings adjusted flow. case, $X is. to main market what and market it we using $XXX was rises. if internally, see regardless that and grow year-over-year believe lower in through achieve engagement million in this cash growth free can internally is environment. we the cases.

So in focus both R&D the to on that cases, in cost helps cases, billion. we improve And to continue have the business. our spend basis a of we'll confident both $X marketplace path innovation the very

the of Stephen Credit next Ju line question Your with Suisse. from is

Okay. Thank you.

like had secondarily, longer talked a talk between driver development help product cost sit But a bunch want have of given term. insurance costs, of the cetera, in may much and revisiting the reduction supposed and measures fire lower which perspective, here et seems irons ng on we it costs of all And So the you you behavior, the we're can maki you projects I don't about to deprioritize to that some changing from greater force. use data too in telemetry had containment earlier. the sunset to about or dwell

we for benefits be the should they from So these thinking over Or time the sidelined about are basically being? term initiatives? potential longer

Yes. Great. Okay.

growth always, the slowed we So speaking, scenario to in try XXXX year. encountered hiring, I We scale we having half were to context believe growth preparing first put reduction in reduction important. of cuts then we force XXXX that these recovery. first, team to a the to And in and takes larger a help the to scenario the post-COVID the last of that it's in whether the any for force. size lean for wanted invest the bit recession started of kind in in scenario. just force about kind of at always and we to of is headcount And be prepared same equally or talk in before late on to faster 'XX, effectively increase reduction had us The we QX froze back try team a And our we focus broadly cuts velocity. would us that in

on of of increasing producing operate of the X layers focused span So areas that management, the control, we we're helping organization was faster.

on One we support how that of our the additionally energy of lot drivers. particular areas we've been spending is a

produce great lower phone a and us to experience point, through experience. both force X focus cost focused a in support have premium felt Part and through testing closing to in-person the on SMS channels seen important able online channels, our virtual the virtual we we offering had support. we and driver for of at drivers that down So so like over And last virtual on by was support we're support was double of centers. our for reduction or on today, months through the that the it support majority

significant still of we ROI to similar those logic investment made shifting work achieved just the business to the for around resources. thresholds we're to the business list that And that to us or rental of providing kind for is first-party unprofitable is have long experience. to areas vehicle be -- and And businesses ROI the real investment vehicle running Lyft up service to the that, where or the either there And sale, areas a a piece we're -- of that are slightly to scale putting dedicated process. service where highest need make. both for kind going that are last smaller lower But that note we're change sale of very Beyond wasn't are be Rentals well. we it

decided we exit those So to businesses.

strength down our doubling party our through third to partners. is be provide will able building marketplace great partners of and which still We a service that third-party we're so a drivers on -- capability customers with vehicle our

of the at asked But going higher like inflationary about costs and high insurance into result you current a rising and work costs. costs starting an I'll increased as industry of the a that at litigation and insurance issue by driven are question cost level, primarily rising used a telemetry. than are see pressures we take higher level product first, higher and medical repair, just vehicles, premiums vehicle

personal You both the across auto. see board and commercial this in

so we we cost had we've our for locked that our and likely offset, year. likely the insurance are XX believe the competition. now We're October this -- call, difference competition said and renewals and next We previously and in our months. And in that QX fully do QX a centered are on on is as in there's next early pressures timing

frequency more has the working offset do increase the we've noted, and that QX of feel upside, proud we that the that reducing been cost. we costs, additional to around on leads importantly, work QX hard in in as cost. believe accidents the did further work you of reducing and Teletry big not but So severity in team And mapping in to just also, in product

Mark Evercore next is with from question of the ISI. Mahaney Your line

healthy. December the or reasonably you of and sounded going You about The sort that into quarter X October talked insurance these cost talked macro. trends headwinds issues about

path. somewhat concerned or I that So up. where about you to just I important rider take macro about talk understand there cycle rides you've -- levels? are ridesharing kind XXXX in in and that trips, in And to concerned about called we of recovery in for the but it's But recovering kind actually frequency while, has don't volume, and certainly about is there something but just to that's whole of your length full hear it back the business. in talk October where it's usage, you as Lyft, we're the of is are know a of quarter I seen anything know know your terms the know, of since been a don't I going either there you out fourth all a that and macro, Can in for showing just I shared then late numbers. I

trends, terms not concerning of growth in Yes, macro of trends we QX. are any absolutely. No, in seeing sort

no, trying is are know going to are I'm reading to things, how we up, can put the scenario same seeing exactly flexibility all flexibility of to a have the strength at that the 'XX and that. QX. you sure We lean we But are position agility into so can't sort in in -- maximum to we that predict want of and ourselves business we we in and handle shape any

dense. because total look And but rideshare small additional or bring then rides, New in New is a markets volume, percentage very to This it back well still York to it's City, relaunched the markets to just share like a of starting works on City. we market really shared at shared right York where rides

that ride is options a give more I'd affordable as perspective we're portfolio. other our starting of to The see

so dollars. riders And X our popular minutes have has Wait And had an rides, very wait very save an again, popular. that few we first and become a as and we become among wait and save. save extra XX has option didn't shared to when to

Jefferies. question is Thill next of the from Your Brent line with

This you cases how on color is guess if could some trending. are I Brent maybe Thill. John questions. the give for on use Two

And change, average? if as how market business. You on West then terms I trending community nights you wondering in gave other Coast case, don't the are airport any on terms ride use price but maybe as trends as as know the sense the especially share well cases of of in have well

part repeat you question? your second the can of So

have versus to you West see market the if wanted the main for any how sense And of maybe changes is total related share, any recovering? your terms to Coast I that in Yes. competitor? even

Yes.

weekends and people -- continue upside nights back use come then XX.X% and case. on in on we -- mentioned, opportunity cases, of mark. all-time I as being the more airport Commute high, they're to the come seem think growth And out. around more So rides. there's think, some the use we're still use kind and static, I rides the about seeing we of of That's where XX% pretty cases

markets we're It Coast top XX% improving. markets, Coast, runway were QX West our still West U.S. more the 'XX. recovered is rideshare top volumes just ahead. QX in XX% that, On XX within the recovered. versus And

Coast Logan, to good you have West that over-indexed. on historically So feeling the want do we market share? room more where we've talk about

Yes.

the broadly driven driver market, temporarily market additional rollout incentives X% of primarily Based by third-party internal into put that our was share, share pay. on quarter-to-quarter. their with it So along drop on in data track that we competition a assessment, shows upfront market

And last So the the weeks we've be those those dried appear over market. to have longer since incentives up, meaningful market share of couple way. increase a incentives in seen no in

and on there's the take but think we line. focused share, opportunities growth we always driving So to durable bottom are

Your is Fox the Fox with Advisors. question Steven from line of next

we over And I those through getting right making improvements some How the was curious, marketplace a how $X does went the think the just of longer it margins you contribution margins into conversion detail the now. about factoring billion? on do you're term? help to or maybe

So on in of a engagement the something and work, focus is R&D continued spending past has the we've be use for to talked we're dollars the driver the high-level spend. marketplace about big the

or be a There's thing put pay you that pay the to targeted. And don't time incentives is to time component and in one most example, a note break think when more either more variable often and for a just makes the kind what there tools is as the in advance weekends that of we and we're the is could could accurate well you nights have variable to our is advance week more things at or -- like driver in time. getting demand up to are machine and the it a important always going as but there So learning fact base. getting day about doing people that

when it's paying in say I'd for quite improve side less supply marketplace And when driving to the a like of it. line. so bottom needed. efficiency bit versus that's there's you the need it the the biggest on opportunity

you think mainly of and $X we there's to it go OpEx But is you Or EBITDA? efficiency curve an think driven? about top line should do of sort billion as

what are you curve speaking What -- cost a do you about? specific mean on

in Just for general, marketplace.

how there's sounds So further. improvements. But opportunities you're the contribution targeting now do It like that getting significant much XXXX? -- some like to $X to of sounds is it a that billion for you're

of of did I part millions of this still next insurance make It's years. goal quite efficiency is, increase, bit tens the over progress say, there the but meaningful some last we of of to dollars material that. a with room in a would swallowing of the X of quarters left There's hundreds marketplace couple

with the line question Mathivanan from Deepak is Wolfe of Your next Research.

a couple of ones. Just

or the incremental with reach now? seasonality for like It to savings, little to So those higher more know I a certainly quarter-to-quarter at be quarter XXXX macro like that rides bit I maybe then a need conviction you But scooters. cost and it's of now. right you levels kind of for of do that sort factored it is $X a quarter-to-quarter. service or increase. is million color much provide the bit lot you Maybe not so see to to as those growth rate about And a of And guide of a said you what's fourth would have terms of expectations portion levels. guide, in different levers additional organic sizable impact great. an that But in, first, and the from that, long-term is raise if on the fees. billion, look can little what on $XXX sounds coming seems right the

had you the question had. first Sure, Elaine the will take question -- you

Yes.

see just of new to XX% would service a high. you partly fee QX It range growth the And revenue in to assuming that and fee rideshare last as in revenue year-on-year with revenue. and to $X.XX the terms the year the rides be XX% And it is we outlook, quarter-on-quarter rides. QX in same company and reflects in growth seasonality grow in sort that XXXX. than the implies QX With ride. bike less of offset in just reiterate, rides scooter service XX% quarter-on-quarter So we line we a to rides our X% noted, quarter-on-quarter saw is growth, are growth. growth reiterate, rideshare respect to And by

are quarter-on-quarter. So combination by it's Rides service growth, million the things, and increase bikes incremental that X those driving scooters partially of in the fee plus the offset seasonality $XXX the roughly

or have our times confidence I'd say EBITDA And target. XXXX, the adjusted on in billion cost one, are: the as material a increasing to then on the the side hit kind engagement of any tracking the pressure, which acquisition. noted growth cases is between we side and again, we've driver of on ability call, few demand engagement X the lowers rate we're the differences on this recessionary driver of $X

drive are and even those movers either biggest So the would further in direction confidence.

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

double one and the back more to Maybe financials. one on

it of I lower the give new what a Because there? priced little see continuing factors unlock you continued Is of biggest product maybe bit the adoption it In flexibility? to riders, sense rides? driving terms us Is evolve? it the as of as deepen base of just more of Is years we elements per next element couple question investors out of at from results just growth, price of even the biggest is rider think unit get lot to more ride. widen in moderate continuing the a that and type if an

that, stock-based be forward understanding across or backward that I of or color of more some the by better things retention that looking then just you industry, would we see are the where pressure think elements but How helpful. any or give And much not on just the could around price comp elements you financials, So guys, upward trends of for is continue the us stock at driven looking of hiring looking. than to generally sort is there.

super think about helpful. be color how that would on to Some

Yes.

and increasing TAM growth largest first, X we the beyond of So the in kind the opportunity, see of opportunity and of the terms reliability that is affordability. trends really demographic of areas

there's many we is too times are X we and a rider and So there first available, be are willing there today a to capturing simply can demand should there's where latent willing match. high can we that just on we that moments There at the the where be. or be. not There the price. that sort is somewhere, reliability, pay And system a price, out ride would right that who driver of do matching the are is and to driver those not not ETA we simply out in

So increasing a get can geography, any count that you situation, any reliability always on so in you cetera. can that et it ride and

opportunity. largest think, probably I the is

shared John rides. earlier, Save talking was from Secondarily, portfolio as options of our to & about Wait lower-cost

found of in or waiting known a you're at of those be there's of mean coherently pickup. maintain the But to option and service point still to terms service ride is levels where always having portfolio options room for for how go kind a ridesharing optimal organize portfolio, we customers. very a option and our maintain we think flex tightens flexing having lot may as low-cost kind experience the of the that longer little prices I think that sort up, to together I to the low-cost the create it price but a being price levels, to able dynamic up, mean market have significant and pricing powerful. that supply may you're sharing And of so

big in over So we're those broadly of time. to product-focused the demographic levers focused addition on that the sort kind of are shifts

risk on of couple comp. stock-based reduce Then in stock-based a an reducing comp Obviously, terms will stock-based of has help forward. going things comp, your the question that regarding impact

with have nexus like hiring on no in model international forward, Eastern to our focus compensation U.S. In a equity in And of addition, United stopped new markets hiring we're markets. largely the Europe. low States. the and away different going U.S. from or we Canada with to respect there's where backfills shifting

to comp as impact stock-based and our expense of on well effective impact dilution. the as comp taking moves proactively and the these we're bend So reduce

the of is from Benjamin with Bank. next Deutsche Your line question Black

mentioned levels? earlier. You should Great we it driver curious, thinking how be about incentive

Where of be perspective more your the sort debate sequentially you be for would the a per then of you and spend model sort employee great of trending ending thinking second could the quarter. fourth? on give incentives you do across quarter, or we about I the path sort And spoke us for ICs of think adopted the trip the classification. widely DOL sort if classification between Is into proposal it the of should country? being to last about up? there be third down driver new sort see How

we With to your Yes. quarter-to-quarter that's see in extent and question important point and really prime fluctuate to respect incentives remind by in the which on largely driver the that first driver they one to imbalance everyone to out, time the thing incentives, that is is marketplace. driven

that entirely that peak So ride in largely projecting increase a we funded driver sign. incentives in aggregate a do see demand project we embedded to side and healthy be which And per on giving, by prime basis, prime the as good it QX time. time increased in QX we're is to guidance seeing the by demand periods, going we're we're on to from in that and but go and driven for up things quarter-on-quarter

a pro the comment. of days the Labor. proposed a public Department of released about at asked regulation, This was XX rule surprise. you They all with not On

And and they expected business. benefits was it lift the not that important laws show to drivers for There's people X fundamentally on we as And the fact, the XX not and than the or is that a they that know, rule does to Washington administration. employees. to to quite flexibility continue similar previously took consistently was lift call drivers the And to like that independence result reclassification as drivers, our Lyft note, prefer this very most impact And will wanted not model. traditional different State, other hopefully, on app-based work. X direct which enacted determine immediate App-based gave business advocate recently to to Obama it's plus includes that what In approach in as reclassify work status. companies of did benefit. force Lyft in was drivers. -- change administration use a no day to applied employee of It does

that from will the of of law think plus broader no there I be and change So do policy. major to your point, more independence type benefits opportunities federal for

Nowak Stanley. Morgan from the is Brian question line next of Your with

platform, a first kind sort of you Maybe getting on as the think I going insurance people then the the bit. better swing with riders. coming port that of this one, us know somewhat a your weren't new into the of just help bring idea second riders, platform? lot growth new you cards say, of has little there's pre-COVID of and year the about the surprising sort to just pre-COVID to credit people the recovery on X people But an percentage to to And new think of Can the just now Lyft new been people understand levels. I right are the active back and population. on riders

path assumptions toward costs $X are now of your on the EBITDA, insurance you As and XXXX? what about between billion think

You on called the say off that thing insurance you cost last piece?

Yes.

Sorry.

your on trying Just between to now and get assumptions guide. insurance understanding an for costs the . and XXXX EBITDA Yes.

levels XXXX. it's the at broadly, And at absolute growth. look the and Quarter-over-quarter, line growth, point, broader first active QX Rider quarter-over-quarter of in X% on we look most improve. continue saw numbers, since So it you had see the with was started. about if sort back Active service look line riders talked which in We the you back we volume in we COVID ride if before, with And industry. QX, to pre-pandemic, as and was

been -- We the ETAs. in our quarter-over-quarter. retro conversion better see recent less 'XX see years. And highest we in declining over was So time prime it's rate QX

great So we feel that. about

new We and quarter-over-quarter. time. by in new grew growth new of all bring rider in -- nearly of XX% the continue to We're riders to terms in riders market QX,

So invest it's into. something lean and that in we continue to

on you and then the insurance. XXXX the assumed And what's case asked about

confident case billion And into renewal. of annual much have assumed the So forward, sight in those of baked to -- and we rates. insurance of have think line $X our on the going changes better any we in October getting we're getting we insurance

insurance to feel the quite that October. So next reiterate, again, we in path billion and want -- to confident XXXX, I $X bake in our in renewal for does

Blackledge question Cowen. is with John next from Your

questions. Two

in what into program a and lagging. then from It subscription what quarter percentage lagging like West Lyft of bookings still subs? October? and the markets any third Coast the strength drove sounds bit? on markets what are And First, second, the were Lyft on And Pink then Pink, update

Sure.

and response in on seen last to whereas see East pre-pandemic like on over quite to quick compared LA, of are markets the what New York quarters, be we kind a SF, the markets, the to Coast the those continue past, strong, markets just we've continue strength But West X to Miami just have pick similar lagging behind. start So them extremely seen up. to Coast

no we about difference quarter. So that trend, about do to last Pink? you talk talked want Logan, in which

Yes.

in now back we Pink $X.XX headline unlimited point. month and at So priority is a relaunched benefit, which pickups. It's price at new priced a April, brand-new a

the you $X priority pickup So faster standard over costs gets to of a price it $X typically and ride, pickup.

else. seeing great ahead members of You fit. cut product And sort were of market the line our everybody

per benefit of over Our $XX month. members are average, seeing, on

a Xx them, in and roughly for So we're like benefits. it's return layering other

So a assistance savings sort and think luxury a is benefit preferred we're our cancellations waiving on doing roadside lot fees unique on we rides, really than AAA. of and is better that

up, have lift same app, the truck click a the and open You tow up of you a button kind showing experience. classic

Access All bike where This membership $XXX the or been share have we Additionally, which we've month. Pink, is is programs. our a

of members sort deal taking We kind national nonmembers. to Xx bike in number of its rides So share this of compared membership. weaving incredible first is see an Pink the

we showing number about program, see And is impact. the are of a starting disclosing it we're So in to excited and we not while are it. growth subs, lot of some real very

for and you concludes gentlemen, conference Ladies thank call. This participating. today's

disconnect. now You may