Lyft (LYFT) 8 Nov 232023 Q3 Earnings call transcript

Good afternoon, and welcome to the Lyft Third Quarter 2023 Earnings Call. [Operator Instructions].

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

You may now begin the conference.

you. Thank Lyft the the XXXX. quarter call earnings to third for of Welcome

actual our during for the our forward-looking those business Brewer, and statements CFO Sverchek, and have today, and statements described in uncertainties call. cause performance, recent our is David Kristin results On relating projected we strategy our factors on CEO, risks today's that from SEC call to materially implied to We'll and Q&A results are guidance. the session. risks differ Risher call and addition, subject future in President, make here this materials our Erin These These our filings. or to and could are earnings our financial

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

measures, slide our that metrics. These in our I'll that, key non-GAAP to today David? of our and not call available include David. are will are aware a IR press which our are available discussion be on which may business results historical release website. for announced our described are we've And with substitute earnings also changes changes supplemental our on deck, Relations to please in our found Investor non-GAAP pass materials, Our be Also, the our which Reconciliations results. GAAP financial website. GAAP to

choosing More drivers with you, strong . and progress, riders customer-obsessed Thanks joining are creating financially Thank for us. I good and our Lyft am thrilled Sonya. Hey, everyone. afternoon, Lyft eveday. and a

$XX each times on more The pricing past billion year-on-year our and In the improving growth bookings. post in our in QX XX% and are up QX, we level our accelerated and weeks, very they're over been prime bookings is we've years, at big solid with generated underpinned our pickup it's billion first QX, are has year over in and have In fact, Ride this XX% history. taken more the quarter more often. been gotten business results. gross refocus X.X few supported competitively the XX% rides drivers These of choosing the incredible that to highest including months is headline in in year, factors in and than gross drivers better have time experience balance just lowest Lyft the our producing QX, customer in drivers across actions X performance. XXXX, riders, regions. quarter this faster QX is marketplace, driving our this more in A this

in in using resulted spend almost the even Lyft XX% of faster. hours growing this an QX, with number drivers year-over-year hours non-incentivized In increase

simplest paying Lyft way on the for Our making off. earn is that's and focus drivers to

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strong very staff delivered in to worked results. to prepare and back-to-school office lock return teams for Our and

XX% in more even with really work This over new in regions activity, a September. too. week university returning XX more here and example, grew rideshare the and For and towns, rides targeted up means the riders grew faster, reflecting surge XX% year-on-year, we're morning referring roughly drivers. back-to-school, year-on-year, last for to by we rides And office, commute than to return after

pickup and Fridays. gaining in weekday particularly We're rides, evening Thursdays a

leads has little introduced they in in been entire a just to feature "I time to really money." In comradery customers Plus and learning what you And we're feedback differentiated giving them we've this Women says, and people our Amy, to platform. At business bottom we metrics, the driving control prioritizes listen our the execution. on And create give actually drive we're us great opportunities we're September to with and on more see. drivers in excited and and get The one more." purpose Chicago Women to eligible opted the get of earn So encourages want new our of Connect I to early when what out but the riders women line, matching this is the speak women listening saying. "having early than to Both this. continuing experiences. customer-obsessed for directly great experience, Plus having is drivers told more half night features myself [indiscernible] have great drivers of which allowed the Connect, and we're at to carefully connected, more All driver improve rides of a more case, can Phoenix and also color more comfort, which, more course, core on to Connect, me something example. which Lyft. in It's act cities, seen into amazing. which drivers are a driver feature use how we've more are they're feature results, a nearly online. to Ambrosia, their hours me increasing Plus actually that keeping examples on nonbinary has access this gotten turned to find

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active we'll revenue, will revenue-based still able to EBITDA still course, continue still calculate able of be be so to disclose you Of cost adjusted metrics. revenue, you'll -- and riders,

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rides share billion, up been slightly strength. supported with costs, this, volumes Within it's year-over-year. XX% outlook, last referring was above and rideshare renewals. saw with reflects me with operational We of competitive years, higher our active nights and and reflecting few frequency, but for the our strongest a bookings $XXX the up ride focus million per grew growth rideshare by grew the revenue of Cost rides Coast continued by to commute were year's growing and driven growth, in the out rise Revenue significant marketplace. third was high third-party year-over-year number quarter. offset XX.X million prices momentum ride XX% rise year-over-year a rides riders. way. XX% the Gross ride our year-over-year the was in leading average insurance partially in more opportunity. rider insurance $XXX financial $X.XXX and driven Let health given higher year-over-year. improvement of strong by highlights Total We the along XX% And XX% regionally, million, trips QX than by end This active $X.XXX nearly lower per showed biggest billion, up improving of X sequential remains travel West year-over-year. XX% airport

Operating expenses year-over-year. were $XXX million down XX%

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off to turning We're Now to great a start. QX.

and XX% and was the Our the of accelerated hours teams well year-over-year we demand in executing growth, month their extremely Driver ride strong achieved are growth October. maintain rideshare for QX. XX% our above

our multiyear We highs. is rides, previous also that QX for Halloween delivered on me guidance. experience new directional our fourth with a ride the riders drivers with With comments great driver quarter. let week I'll and review outlook reaching that, intents each hours, consistent our and highlight

XX% of to We year-over-year. billion, $X.X billion $X.X expect gross up XX% bookings to

rate We expect in QX year-on-year saw total ride from XX% accelerate slightly rides growth the will by we year-on-year growth share. driven

comparisons due to If basis, sequential note that you're a and bike again scooter our outlook slight doing seasonality. sequentially in total decline a on implies rides, and

adjusted of This October impact EBITDA of to margin gross to bookings X.X% third-party $XX reflects an a of our adjusted roughly a percentage full as million expect effect that contract renewals We X.X%. and million into quarter $XX approximately EBITDA insurance on went X. of

we provided terms QX of directional As in you may revenue. recall, outlook last quarter,

low compares. mid-single mid-single expect fourth our implies year-over-year So improved formal just year. health digits our to marketplace reflecting a On versus up digits, revenue the end revenue which QX for greatly in at to of and focus growth sync We comments. now directional guidance quarter-over-quarter, of is you, prior that basis, here's last our grow competitive will how our our quarter high outlook

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remarks flat We With a expenses prepared will expect operating be quarter-over-quarter. our close. roughly to I'll that, bring

and and excited fourth quarter, on road focused impressed customer experiences we're is been team execution with We've business delivering Operator, ahead. great both for focus our team's a that had solid and now questions. the the strong. on Our I'm great a riders. drivers building obsessed start for I've financially is really ready and to about

Instructions]. [Operator

comes first Elior. from Our from Mahaney Mark

ever management point disclosure. a the greater teams, it much make to congratulations I congratulate on but

I and think it's investors win you. for for a huge

drivers. long-term So long-term provider, I you cetera. the talked rate, about thanks that. the doing If is had. the et terms think riders, of rides bookings questions One for company drivers we take of Two in about provide,

on about But of as about would you. have that's term, Erin, rides you forward? you going a per do a with move, power increasing And those scheduled small And you're rate benefit of you mentioned to confidence which drivers, growth question think, rides I rides now? the the the the most think for the long be driver particular I talk to higher has rider. just you think about where the kind that penetration then model. assume just secondly, seeing just that margin biggest

team on and then I it's of tag Mark, start David. I'll kind this. Erin will and

focused team and it. on it's to just able First, has been to something the the It's Erin by to day the the on deliver since be see transparency. way, wonderful thanks increased congratulations for that on X,

So the of hope let's surprise you start, a a and growth, just It's it it, just I'm so not start focus drives you session's basics out for bit with I'm what And I to doing But hear we going glad customer On and helps. think going for answer. how second, long about our here's let's to forgive zoom me like here. to a little just right. it.

pricing that. and rate do day so the where so with on the you and really day, see come XXX in a in the And things at forth. market that's right, and line customers take line you with full market basics Now day like in days every year, notice and

of if as couple that happen, execution mentioned weeks terms Then And markets really in in remarks, that, year-on-year bookings. are you October just are around weeks year on X back-to-school top XX% we I excellence. the same of you had, examples couple Those look And gross first at did a lot we've build of in didn't that a of of work. the Back-to-school XX getting highs. achieved right? all-time highs that alluded my of growth We to, those requires Halloween. just recent in we not in

only XX% Connect. of performance the we there. hours operational XX% just course, excellence, are mentioned That's way, women plus And on about which women, ongoing to top of exceptional are is by our focus. XX% talking are XX%. importance And just really by of start of market. differentiated drivers add a driver women real of small So the only services. a women, it -- driven speaks We're can of you at population the then look that, not products and to I

that comfortable all can kinds a of women upside huge shows driving really over more the on and there's growth long making So Which fill in term. obviously. generate writing focusing

saw, written the been another office. Let's I take use case, probably return have to paper last months of you articles about couple in think the over XXX

articles, take the for there People that Amazon, well. We've time kind lift time So at part obviously Netflix, in with office well community, to out nonproductive LinkedIn, those a to read we're back we're works and ourselves. here with participating is of trying as stress the for we're the where worst with are companies. employees, and got relationships we Lyft, which better make which into of high selling

that's a a big So deal.

or right? about go to a so on growth. weak so because And accelerate you're know the calendar, Scheduled end airport, so rideshare it's less people because can by differentiated bit only the going airport to way, is using then our use And rights, about it of give Uber, choose about they up so -- makes remind you of but to the and it, your X% little to a a just now, you give us is you our Lyft actually drives. interesting. actually oftentimes, Right also that. scheduled reason you just linked products, they up way sort to And It's we rides and think right? case, the surprising, if which

when destressing remind around going a it we double more that got is tomorrow. on your And come that, start to get sure be you a really We've So to right? can schedule life, talking experience. and to this, actually you you since is particularly down a ride, We making great to launch around can but about can we tomorrow know, your pretty product ready, around then make exciting this we're the holiday. really

schedule knows By when airport is your and the you're happen. higher about President schedule yes, she looking margin going To demand it than to reliability our revealed doing to that It's here, rides, higher way, rides what of obvious and Kristin, going to little is is to product. talking it's at but reliable. and the [indiscernible] because on she start easier I'm bit a a a It's product. margin it question, she

charge as drivers. result, both pay little experience drivers which be them to so encourages more. better can there we And for a And bit rider on a more, a and it's can little a time. bit We

lots of lean upside there. more of think, we really growth can we So one And product. it's that example of as I drive one modes our into, just,

to long just bases. bunch kind answer, So know Erin, but was cover to that you to that? wanted of add a of want I anything a I

of covered is, I Mark, David, Yes. many you say I thing the think that the only levers. would No,

across to think business. it's as about the think year-over-year you have we about the office. more quarter-over-quarter active addition of obviously to or really think I frequency mentioned. and growth think multiple pandemic riders, see sure But about even really David that it's also gratifying understand as levers I that so you is But talked levers there's we I'm opportunity to returning frequency, about that And and is increasing. of some still in all that to out other there getting after that the sequentially do again

comes Our question Ammuth JPMorgan. from Doug from next

consumers. inflation, years combined with affordable moderation options some to it then feels shift, for like perhaps we're a basis starting see and right couple into David, the after price on of like-for-like a mix of more

and how thinking pricing also in about curious you're wanted terms into the & about of ride year another exiting 'XX Save. just ask to Just Wait and mode

talked give on that the rides I Can about past. think how doing. an you've around there us in you that is as product update XX% of

Sure.

So sort great points of both.

I'm pricing it's we're changes. major little as frankly, has stable a So don't a on vacuum. expect expect, reminder. not great And it growth and Save, your On really -- & No there. you reasons what bit, you significant now. seeing. not because been significant a price but a as you change People -- not glad year-on-year. binary. brought -- We you're seen we as great too. actually it's of pricing, riders quarter-on-quarter It in a up why the fairly such one I do It's rises right we've sounds think kind choice ride our is not a we Wait rider, don't do would around like And

it at if a so if or you a you're sensitive are price don't tell Wait frankly and a sensitive you your rides you at save see because where to go riders you or Save & rider, coffee as at will changes I & a that little double want you're whatever. non time, riders. if from we a in or where time And more the it's great have of no burning wait before. mind of take get it you still option. was time And Save a Starbucks major more life about Wait price

segment that really a to. there's you suggests that really that directly can speak So

find very it price-conscious largely our And It's except where mode an It's have some there. We answer part too. like rides. And it can started. the area over we forth. important we riders anyway, improve turned ask, the it's on is got answer called really drivers don't And it so that a our to very just because and PIC. that folks, much. Uber has the But shared but time, for we innovated for we so of use question specific you I'll or which can optimize it and we didn't off, a economics cases

basis, we've a just head-to-head So we on there. think more customer access strategy got better, a

from next question Stanley. Morgan comes from Our Nowak Brian

on I the I one appreciate disclosure. have the bookings implied rate. take

can somewhat rate low it effective it take if looks somewhat the and XXs I revenue your crude. sort of sort rate be of by the is know I But somewhere like higher, we take your So divide in bookings, take the your supply to overall competitive take peer ecosystem? than in about or of U.S. balance, do supply into of demand sort rate think How next and think, and you more the that the try to so sort year load over

Yes. I'll start with that one.

As single course, and fleet, as our we a that also includes but of of reminder, mix report business, a rideshare media, segment, both scooters cetera. and a bikes et

there. And I media. a point so gives that there's TBS would terms in is and of of are phrase of we've voting we bookings drive really in about about as choosing as about confident think fleet a points, you as riders David, that's, been we bottom sense that, gross I gross what us competitively. percentage depending in than very here another X That can total say will I revenue feet, track though, of say are bookings, data drivers and More more quarter, since their from revenue about people as rides again, driver you steal in market, the the will that line as a right? a but that pricing earnings, What both are And are line and on way. how in with Lyft. just X a and where up if overall depending percentage percentage methodical And we, in relates to it we feel operating price and if will, seasonality you the course, market. to QX, with competing competitively think of

that underscore thing Yes. the Aaron last said. just I'll

Our our strategy sure them to pay driver -- great for way is to to continue fairly to drivers it's with earn. a sure make and

yes, line to historic competition, and we we've And way the mean, driver expect XX% seen just same the we I highs pay so And in hours. price. with

really difference material So no there.

we Uber more a does. issue how present it's how think around versus math of I

comes Fargo. question Ken from Wells next from Our Gawrelski

first? I question, Could How just question. the of less the kind appreciate do beyond overall how several which that you industry we an medium-term about into various about me out various please level and it. I from the growth, think think factors that you more driving the level help specifically? second, a you medium-term then is inflation. quarters, appreciate again, a play dynamics insurance ride both look about should might think from next if And

insurance and start hand with to the I'll question it Ken, then over David.

So as set renewed third-party we insurance a call. on October our consistently we communicated very recent our effective of contracts We those reminder, how earnings previous renewed with X. most

months. gives next us substantial that the So visibility over XX

than increases So nothing has round rising year. changed rate we of there costs industry from rate in reality we saw insurance are communicated. said, -- previous overall. what that auto in The increases this being the have previously Rising our auto a most recent were lower

multiyear, over some is of strategy being COVID thinking thinking rates really cost working think encompasses but the a managing across on company and abating. cross-functional our not a a our only I But managing way. signs the we in how that think about it part certainly overall really So said, these of period some core insurance multiyear strategy is that about around

So areas. it encompasses of a couple different

grow around is various have sophisticated. product and improvements. our The safety, on one safety. for to We've The around just with next more more room think around been first we become as initiatives still really one that many there's initiatives working years capabilities

part our to reduce on to going core what And be anything is helps finally, I safety, the settlement would So that say a of is promote telematics improve strategy. then outcomes our using accidents, side. obviously, policy

policy as reform. on continue common what sense we We view be to active

we with certainly state called are of what's it But times sometimes a to as requirements, relates insurance as as to social in TNC largest level. inflation, industry other legal our function the an Specifically efforts some the in to working insurance combat U.S., abuse. insurance at partners, referred these their side-by-side also the carriers system

have it's those we this So and year just really relates substantial renewals visibility XX and But strategy to as we that a our again, the insurance. months. it as completed we for completed, next for multipronged multidirectional for expected,

I'll is leaving kind up pick So Ken, where off. Erin exactly of

months the next So little over of perspective in growth. a terms talking maybe about just the insurance. in give of of years XX couple I'll next bit

that, that have partnership more just think are in-depth all it of forth But partnership their even and this. card just could started. people of credit not is a we be We've say We do really that talk organizations enjoying one things later business into great great think if getting by The that drive And tap so of is and -- super, other operational really that them like their and with people example. with you are really only If can people ways houses that. cities also excellence and we're that, to And to longer of interested, that you've is great, out got with reship the to Bank, and if like be want let's lives to look really, Partners get together, deep. Chase just the Chase like way, super Sapphire got but and but turns strong and strong. execution buying. their there for the so you a like out outside like on. people lot about like companies can I in continued sorts

if kind years, out that and it of think story tired up much in a partners such think more bit bigger, better of and of bit so our as less forth they well. helps get a over Lyft increasingly I having that because them so behind a well and little support So look of end as you couple Uber can sort on of life just it's and little what of and I becomes sort next a the it and

it's that's at try get about little a more and philosophical, the to but we it. little So we think detail, a can least way

Our next from Mathivanan Research. Deepak question comes Wolfe from

Kind you then products about unpack of contribution think growth industry and how ] for see from X-quarter more the these about kind market can seeing reserve, the have from new acceleration benefits on product for from maybe some that, currently of was to products It ride some the a bookings But verticals second at incremental nice is And question do of opportunity growth. the like some related Uber And you inside growth there? share, do [ you like of sort think the how and that all? headrig in also XQ. you broadly, one to XXXX?

Hey, Deepak. quickly. Really

actually you Sonya, hear can us?

a Yes, we can you.

ahead. Awesome. Okay. Go

Okay.

Sorry, you little question, just technical were just goods question apologies, it. had time? first one And my on there. repeat we Can you as a a little starting of thing that technical part more that the

expectations in was U.S. asking your in the right industry No, just share Yes. I space. about XXXX for growth

year. back our little in Again, on We going we're and next of we've the optimistic bit. we've reasons giving back for LRP, where call than to to broadly track will Erin, about just about just beginning we Yes. sort with couple higher the in but that's just not as literally of plan, to well. chime we very corporate seen seen just then since probably last would X. not but talking guidance extrapolate history, what really longer-term looking a this today weeks, growth. we gave be let's start on much I'll I long-range of We're just Obviously, But just any what ever speaking, lot our be growth -- for still try see QX. of and say, a day that are XXXX, we

two, a continue will Travel Number some we growth big be energizing. secular to that's trends. to see driver. So

will back come You're Again, growth the seeing people that seeing work, sector. across put to that big the be pandemics. across continue to as a you're sector driver.

So we we obsessed, those look you in, we're trends. sit again, then where customer when And really right? are sort of secular are at

times or so trying take that of service rideshare leisure least includes week. this. most go and really and the maybe a pretty at business couple user. heavy of already And asked forth a about users travel, travel activities we and people a a of travel, three gets month, I all a they to because how we frequency, be times at work a for most more heavy times sector, can airport segments you look to use use like And like example, create and go we're week, mean to that say might a to couple differentiated which social people the large drive experiences right? women, that incremental So know incremental more

I ways, in of people underpenetrated lot can their we're terms lives. a in daily think in So use really of how

at tiny know feel XXXX super when I we again, good. a look maybe bit philosophical, but So we trajectory, our

that, Yes. add agree. to The obviously, only thing fully David, I'd

think you we XXXX, As about of note a our that of think model, it's anniversaried have couple to important QX I get important as we will things. into

line first And it the current market with restructuring quarter, to in also the where quarter we of competitively year relates and in really that's enacted a QX program. our we the it's full as the pricing strategy. foremost, cost we operated obviously, and First

items. XXXX, about think will two you as we where the So XXXX QX anniversary those quarter be

and shared on along then it. that? Got potentially from lines of second similar And contribution something how do right like you part reserve, think the products about ride the

Yes.

it like wasn't in further experience for was it that a started of But didn't a a it from drivers, for don't drivers. found XXXX, apologies. lease going. a that. like taking enjoyable part back like drivers They're And the and back, much or and left sort drop-off. I So turn. our a the love ride another weird world, turn because left riders shared we pickup XXXX, Even we they're it of Riders for because all the my ride great diversion it think where is and something actually so particularly weird feels

and pickup of it, so And increases drop-off. course,

money not we which it's allows to decided we've between people It couple So bit use a And that return waiting consumer-facing it, mentioned of still have it's more us. sunset. area for little XX% a getting are -- in where very anywhere volumes it's largely for product some And along of a something cases represents an have there. as before, flexibility and XX% off. ride product. instead, or There day, use so a great we wait but to I

more so those Uber our when to even that people scheduled on a And airport, Our to about reliability be reserve, an experience. you'll go great tomorrow product. making they've commitment calls got -- ride stronger that that's where we're the hearing what particularly use it,

enormous think upside I there's there.

to time lot little And of as in as it of it before, since a well, bring are can a a has I'll so lives. It thing mentioned up other actually also types. and with slight to. there reserving thought, the drivers you their I it. better one ride hassle time they reduce price for mentioned think like premium of people's ahead where has in stress economics kind lives bit I of

tomorrow, today just give I'll and choose bigger, so affordable drivers a launching talking the sort a more The process be of is and forth. are we'll about in the but can preview ride a product little Comfort. cars you this ride. -- bit of Extra higher-end is experienced, and more on a are the called are newer, Comfort again, We quiet you leg an so Extra room

You'll lift maybe it's airline almost today tomorrow that's see all for follow nice Plus you'll see might it normal the industry, to you country profit in it. it Economy you'll at if that priced even comparable of But at it's a the And the them. you experience. a of if driver know and as And think crazy above $X you in open and your up more experience. airlines,

economy. us. out It's And making prices the on double almost are they're selling something -- up

allows small higher-margin an it volume experience. we economics a that ride at and and today us, part grow of because area have little bit little represents time. A little one So can a that upgraded an for product customers very customer-focused very over to look better our a of as bit

Sheridan next Eric Goldman from comes Our Sachs. from question

just Maybe could. if I two,

XXXX, of the the move X where see terms That Can number the us through investment opportunity I to be of should And in the you on the when as a we some changes understand as XXXX of the impact mission-critical headwinds lapping those forward? on would of of love to as adjusted QX some your guidance, or product what sense this environment to EBITDA and would a one. into margin mind sort tailwinds way you've just especially so be side terms had capitalizing some X of next look out that tailwinds bookings. you leave side momentum, the better you velocities, guidance In year, keeping as into to then be percentage market both about QX of of and David, to get the you'll elements walk going almost headwinds pricing either margins in to the make we in year. continue incremental some or think you of

will tag on this. I Yes, start Eric. off, I'll let's team -- and Erin

we've we're and encourage indication because plus because looked we're for rides Again, not feel it's great of next opportunity. XX and back we drive last airport on year, to as social that. the haven't, We saying, products a I so scheduled rider think now. if Literally, comments about right? beginning city. my me or of a rides already in would women or of you saying, launched allow writing hope so, that nationwide. with come not us. if in We're on So it. marketplace, or Plus U.S. talking what good it or is Or the That's differentiated to to I getting, Connect. to platform population. the pretty going me at driver using of because roll XXXX, why I actually, new week. the at services just unlocks about allow get this you a out I half comfortable them do feel a appreciative of a you small and traditionally is not new that only usually media mention they all is comfortable but a too will I comfortable. women -- At to am for And and day, in don't car usually a you don't of markets more I'll right tears to I I'm done. just now of that Connect work more have it to time you've friends I feel excited part am women drivers comfortable next that's a roughly so the One, about new give beginning talked again. for I guess By year in which product this

great talk pour continue position don't volume in an not that tried about others, want line. on drivers, that's them for for probably riders bond see existing forth. and it's I now because think great good you'll product, anyone you've but but I listening the on So so gasoline bride us because it's tell There I'm are obviously, to a to -- and and to else fire

you For drivers, example an that similarly, a launched. that supply, drivers And we've something anything do it's for increases big give driver already I'll we of win.

or great product. frankly, to So it's such called Drive doing there region, in my be by to good say, dinner to at within it's X:XX it's a afternoon. different I home up. what, to it have And I "You the actually as are it's be by tonight And and you -- two competitive, pick driver not allows a which school, know need but the to need is the products. well, X:XX really them --

One is a destination. basically allows pick you to

over the today. drive both allows months picking couple to These radius you other drivers. team and massive you'll for are we've The pick within of they're a which really started innovations up last

In here. a fact, role know don't actually, I

money It's for per drivers drivers. that hour, tell Absolutely can -- interested. drivers, called allows more think -- it drivers us be to more drivers. into you call go a priority loyal detail make more and to, our we've you're which And And so interesting. it it I more might for load ride you the to is they additional gives love is on allows that little to because flow. tend I'll the doing, platform. interesting. So if really which drivers earn Again, money But in I longer-term offered super actually it it

growth but on in one these So add and the cart you driver. kind behind some think, of front of I pretty -- rule each the of are of them them but things is significant of up are some the and curtain, all a them,

drivers. to right We this. customers can that's also feel the we I about more focus or don't detail team otherwise, like maybe things ideas amazing there I'll cost our hire at the to the with growth gives about work. We that. more that Erin go raise eyebrows constrained media. some do got that have on talked You Again, much like conversation, more us. we've got not on me. much opportunities position at platform. strong a just will we'll because doing all I'm But think to people we sure to great more great, We the feel do and driving on And a later of in talk that. are have this about AI to and do continue We've leverage say

And been What Eric, QX question in we would up I quarter, gross margins quarter. as That this revenue staying on has bookings. of the got expenses and tailwind it definitely say the sequentially think estimates marketplace. our continues here percentage to do a you relates operating EBITDA for It about us. to fourth fourth of in our quarter-over-quarter, flat. we've improve, about so as in a your the going are continue adjusted health And talk to tailwinds and we'll as

cost increases quarter. there's revenue expecting through there. then the the insurance of at fourth the it will are start that renewals relates fully headwind, that some the as contract So is to reflecting recent leverage primarily from we're beginning of flow our And

Our next Benjamin Black bank. question comes from from Dish

Lyft on one Perhaps media.

And really grow think contra the of I that to So have what of side, need one the you long the can invest a on revenue. sort to medium the of been? of term. side, become great infrastructure of big force to sort how bit then takeaways more business do would advertising hear early little products over sort Where into you dig to on sort see sales could the be sort more you business

there lower how obviously favorable work per of driver you is operational trip? you're to or current anything by your lower structurally about hear incentive to So here? normalization levels, how spend Curious that sort about spoke seeing a been do an from tailwind, And far supporting could which can is standpoint driver contra. your thinking competitor we've incentive

another first, It take team. Yes, I'll will be second. tag Erin will Benjamin, the the take and

you're trying with So And a way a gosh, your interesting to opportunity. super such you. of the yes, big come let's has online customers, new world with if brand up Today, small little talk media for you're gotten to a start an we'll for speak sort bit second and picture. because a it's

the your our to Ad go excited You super kind Twitter things Google on know test. that and you example. so these And of do at. focused really anymore, can generations and for Words probably we charge brands. And But editorial are can they'll you brand Meta, the anyway, are not brands customer, responsive if you that there. stuff looking about very some you're as sorry, But to buy for want are yes, over younger

are looking So people areas. new for

window. think course, of to in but to. us a from doing have success. in lot they from, they're to about then of minutes the open they they they're start TikTok, up having captive XX, they're lot amount What got they're where has and not a us? rider when experience car that work going the look that But X, Now there, They've effectively going X, X, told a kind you a where XX-point a only just going the not of a place for a they've aside on of looking if situation us X, they're of app, at going spend is huge And told ride. told where sort

super them products through that have briefly. go X I'll we and use So we

ads goal credit now, call we've to matching experience. you you seconds those and about through those a screen, take so. serving what XX as in first, in-app -- ads start interesting, interested might a go right serving there XX So requests of ads. right? XX% literally those got is ride relevant in-app that not we or ride in-app. We're we're on be a And which the our and ads request We're

around In we're to very also credit were the talk something high seeing is for, nice numbers we very really going interesting We're fact, they've opposite. been rate. as of see. ad What do about but wait but and sit they people down. just go than seeing the rather expecting. tend Was yet, what that In ride. kind not to weren't else exactly actually we're rates besides the interacting to to And other and canceling time spend hoping necessarily have something with the words, cancellation

a for win-win. super that's the us. in you exciting get So Then car. It's

on they got screens can of phone. do map the Now things. the that right maybe as car, have things what now tip also they're got gives one, they And in other driver But and happen. We've service. people spread X,XXX of two also us advertising we give and can increasingly, us their these cars across that app in to we're the course, to XX cars. still the another about destination, they their to sorts the check a ad so degree their progress the And you in markets. they app destination a to is your surprising Number tablets putting for but give opportunity, ride, there. headed

understand look why when of participate a we the an right? again, taxi they're data. we like big. advertiser they there those Apple the they're in quick a see we liking in example, as to can I has things react be so And aside, been drivers exciting. as ads what want very say, those New great. strong you and at can are not That's seeing. And as U.S., economics Nothing well. the will in also which tablets the York, super

as our ad getting which drive appreciates the contributing to to willing that, the an that for rider, also them so lapse, driver is were makes more and served And a when driver wonderful. you of and

particularly so its one a in screens New Imagine terms these. it's the which on rooftop visual grow A its screen its third different are resolution, City now, think you in got screen. use, so The thing, and happens our ease best over really number have in of York seen, We might We've have city-wide X,XXX repairability the see about interesting. forth. be of that the of right allow of takeover. terms to cost, rooftop, time. of We and we'll organizations and

all digital. course, they're Of

matter of fourth, business, it. docking you any in you can then Movie bike out a see an time Premier hours. a see next because And you'll a a EBS blast entire station, our panel to of station, the city across So

are those Some school. old analog, of

those Some a service. interesting another be new that's on got as we've of some that school. course, are time, Over example, more again, there Chicago, imagine, in would we digital, going of movie. city ad of and takeover for electrify And work really digital but

gives lot of of So of detail, but I that ambition. know a there's maybe the scope sense our you a

I'm talking the of opportunity. about is for but think you of sort advertising If going. us, talking multibillion scale advertising this, of just I'm a that of Not about Xx dollar

question the to team the on if piece you marketplace contra I Yes. with, This our take incentives. start revenue clearly, market, the we've on And is our day. competitively pricing don't competitively little might manages et bit. And on mind, team the business this I'll bragging that with every of focus pivoted a cetera. since

team that real-time sort complex has we of marketplaces I one the exist that operate in masterfully. mind of that delivered dynamic think Keep out most there. just

you efficient incentive contra team per both decisions going have a so But a give rider perspective, to in in relates as QX, delivered sense from be the that, dynamic a incentives. we we that it QX. has become performance as revenue driver again and to ride are to more consequence, from And making a on per

that we a see just to job of to for time predicting at drivers expect getting job in the needs where to the about so demand. be masterful great they've We doing supply more will get where it places -- a done sort and continue efficient

ton want that That a here. said, And there's to team dynamic so nature again, of I credit. being give a

that on definitely a in that got -- QX contra while incentive efficient. revenue got more So

again, bit highlighted. supporting efforts, our David a in For we back-to-school spent which more, example, on targeted very little a the rider way, side,

highlight So just of is I'm where quite we less the reasonably health make there. of our continued in X% you I see overall to balance we that of we and piece really dynamic with those the in But of the in way. decisions pleased a that But how that still small. a structure terms are revenue. marketplace will give It's than sense incentive

next from Our Mariano. question McGovern comes from Michael

the that the insurance competitor question that little about you you and we Thank about insuring think honest. meet a you're a bit, you love spoke learn each companies did model. about cons approaching would self-insuring versus a forward? it about more For greet going little be XP the When bit keeping bit I the maybe Bay that. the additional great how in how to I to Area, disclosures. hear pros XP little But would of your has the and spoken wondering also to and and strategy was

Sure.

For we've is that a is been contract and a of say many number then that extend we a book many self-insured mix of years, what mix third I with years. would parties relationships our we've through over with portion partners had for many, -- that a where many,

at most years always ensuring And One, that marketplace. competitive we across rates. are We a now so obviously, and have number of from about dimensions. this look of the we getting the best XX data

of of mix Certainly, our We today. the to the in certainty with gives parties, I as helps we us flow. think portion that experience view helps give have decisions. cash smart contract us that and we a that that make really informed previous us third point it terms the like relates of book that

that having we so a portion that And business. our mix, think, is good having of

to what competitive we that, quantify mix wouldn't percentage to a But of booking able cycle. might move ask it's time very, point So few given with -- that I our mix expect very structure. are. points tolls in have, think we're I total and you that I taxes the by a are total forgot any renewal percentage on pleased we think in overall, like and pretty

is pass-through The total asking, as percentage what Michael? that a total bookings, of you're

Yes.

XX%. That's roughly

comes Blackledge question TD Colin. next from Our John from

Two questions.

and where I'll kind to little it any And third quarter bit on and about relative is, fastest. might is competitive geos have gains? color on the Lyft's to you'll actually, just me. in of about remind grew any say talk Coast the some share a Coast West position the where prepandemic seen ride the second Sonya you West have growth could where then First, volume you further levels. Yes. But second, in the

to fastest-growing a lot some of I that We to our focused grow -- markets quarter. those that frankly. And to in couple markets. think think region down continue understand of how a I third actually the it in was actually was execution, of doubled

and would also super of has Some interesting. thing secular. don't to -- say I Yes. much else anything there. see it's coming is The back the other that we it's regional say talk to across The too strongly. West work. Coast lagged very someone in I bit generally think a has little only the But unless we'll about stronger room just stuff

ride is Lyft -- platform. also it's very share of Our American local rideshare a course. both platform, North But a

all we on the the going to peek region why the review you things give our micro, weekly in we see be little macro might to business to what's a curtain operational, And up so what every the A We it we all we helicopter there. or B week go in way. the down way and behind way meeting really a in region in all call directions moving unexpected

leave is think we kind detail, both But rather at just of there. I much business we'll So the way more to going than levels. run very it the

any closing question-and-answer back This David I our to comments. is turn the concludes now session. will Risher, CEO, the for call

say you And mentioned my Thanks wanted That's the all. much. the Yes. I team you find joining able For talk us to here. marketplace team. main obsessed. look hugely Erin the a for thing When to hugely, you want sure. at Thank to thank to only customer alone. we've well amazing Lyft that. been I We're appreciate a many have huge notes about but of let me so not super because they're of our done, so team, today, it's members the what work say.

say you of a think whole that heard us bunch I times.

business year. really that the financially healthy in thesis customer our our session quarter, and progress past customer-obsessed this about And drives we've our is seen is updating momentum to focus creating forward what is the new excited profitable on you seen in and business. basic looking on growth We're Our a growth. we've the we're and

So thank you to all.

Ladies and gentlemen, concludes today's call. this conference

now may You disconnect.