Lyft (LYFT) 13 Feb 242023 Q4 Earnings call transcript

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

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

Sonya, you may begin.

you. Thank Lyft the the full quarter call XXXX. year earnings to fourth for and Welcome

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

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

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

measures, non-GAAP I'll with results which be earnings Our not results. are our non-GAAP are available GAAP our our website. And call will a can to of that, for include our GAAP on pass David. materials Reconciliations the financial which to found in historical substitute discussion IR

and an accelerated afternoon, the QX million Lyft over I what up you really Thank collectively We billion am Ride good high. last bookings versus everyone. for ending More XX% of earned us. $X in gross reached more million and Lyft. year. joining than drivers proud rides XXXX. supported every XXX quarter, X all-time growth accomplished in Sonya, year Thanks, than using

and our been history IPO. in We since our ridership to ride growth also prior was had highest the strongest XXXX company's frequency the it's annual

[ we ] goals came can customer a profitable Our we growth, obsession when together for how the with team achieve them. vision set drive

are; is riders of areas share these the drivers here for foot going customer ] competing that walk obsession profitable our that pedal media of perfection [ examples and well, executing partnership-driven and reasons every our focus choose growth. We're few X growth, drives going the momentum. we're Lyft I'm and we end, to they and how XXXX, and continuous thesis year. To keeping Again, to a and innovation, we're this and to have day. entering each with we're demonstrate each. a on about prove the rideshare through it really we're lot giving great So

eligible First, using advantage Lyft and and riders differentiated on absolute on we enormous to continuous increases gives innovation. our innovation drivers great Lyft best reasons One are competitor. feedback Women+ our focus at with feature creating Since resonates experience. the is and of over and back -- have excuse preference choose people. of Connect specifically Connect X/X of launch for one me, Continuous active rideshare millions their Lyft rideshare the drivers September, Women+ been outstanding. is and riders example. lot riders has their roughly in a the using

that in increases offers has market I'll That's double-digit seen out have gone markets that in feature we company also fact, strong U.S. where product great the a live. In we're feature fit. referrals only in driver rideshare the sign this point of

City. as and over of now market L.A. thrilled New game D.C., available with drive life, United in is Women the you Chicago, So if app, prefers across news women, we're have Connect Boston, another we're woman woman ride today, announce the of a in to the or And you're to in Atlanta, [ States, your a ], if download or cities Plus that town. every who course, some including York only Lyft XXX

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pay standard is we're drivers. for innovating how Another great example new of our

there That's earn commitment not case. some earn payments fees. people each are already, rideshare designed as averages. of rider of away a driver often week But unhappy. terms after lot the about instances we've the least walk that with a riders guaranteed in but where averages, floor. drivers industry that's why at The Most talks earnings We external this a than of will have made Lyft XX% that more

Our for results sector transparency increase for reduces Lyft. to In raised That's Lyft. standard innovation preference our usage like. is rider it a the intention continuous bar higher preference dislike, shortens term, set what riders of which drivers further ETAs earnings that time, looks prime and for and and strongly in

what to call relates perfection. execute, rideshare Our way the second we focus area we

You've customer heard and about riders very talk recession. Drivers us a have standards. lot high

we'll effort and do we've rideshare perfecting even into of XXXX. the an So in enormous more experience put amount

this Let as example our promise The part product. me In how simple ride but scheduled of ambitious. our mid-November, was business. drives an it idea give launched and pickup our on-time of you kind perfection of we

to perfection to high Of growth scale, of so deliver. the and be. under X% bookings. than of we remediation Thanksgiving we these, less that a guarantee, willing than like product, high a you unreasonably X%, of rideshare pay the drive million central airport we ] during would up standard X.X week. we fallen [ riders for we The And to the following by ride to extraordinary, that schedule an cost year-on-year we of arrive more If didn't our to and ourselves the over operational the capable grew gross -- to the if you cost airport this competitor's are scheduled have and to within have $XXX, is impact XX cover XX% XX arrive results X.XX% rides testament expectation this time, to pickup of minutes no almost questions what even were have set that statistic When your asked. deliver, cover plans are of ride in [indiscernible] the launched directly those fail growth we just lift to of remember this days. can been to had took remarkable. our rides of XXXX level another excellence Outcomes profitable at half the at particularly beyond. Helped guarantee in

that of connection Last is partners. partner Finally, partnership-driven Lyft's our of ability superpower at streams when often mutually an year, organizations the one and a margins. unlock our underappreciated becomes how ways rides new they've we've attractive could very growth. clear approximately other relationships to over beneficial had and established you XX% with This with to in look revenue direct long-lasting expanded time.

and get you to in in support their do commute instance, bought to For Rewards, they're crews back coming support solution. with Airlines the can partnership also XXXX. Pass our X, Pictures launch even of but now Delta we Rider's our QX our began with Lyft flight platform more Universal where on media points. now Trolls

across these of list world-class of we've but Starbucks, class we're margin Disney, just continuous I and brands on work Amazon, partnerships deep Our financial be goes The beyond. and of on outlined, is and growth similar includes same expansion Apple, the seen rarely easy, in performance expansion and we've our Partnering innovation, perfection set those. in that focus underpin doing partnership-driven areas all world proven either. growth we and will XXXX and strong line like each rideshare top can

call important pieces over Now X to news we have before share. to of turn Erin, I the

It's free that huge achieved that our has behind first be our very expect all lead this milestone our providing to in hosting to to is on year positive we're time The Lyft doing first the event, of of And a basis the in into Lyft we going a great for incredible directional we June. XXXX The headline it. amazing the see Investor we're second, a history. company's first year. and commentary few XXXX, in generate early opportunity year as full us. cash full It's are am for and team I first weeks in is work flow Day the XXXX. performance for proud

growth. Over customer As be I to beginning, said to that leads prove we the this you, year Erin. in obsession the profitable will

everyone, David. some joining year our us today. for commentary also the our QX for directional share and Good I'm afternoon, to review well as results going XXXX. outlook. I'll Thanks, as full QX thanks

detailed select items, income our which are non-GAAP materials. a earnings otherwise As measures are statement all reminder, and indicated, unless in excludes

As David in with build that accomplishments a we QX. continued some Lyft to year mentioned, strong and XXXX was on at momentum

and in hours drivers. drivers meaningful strong This prioritizing QX. new reflects in engagement existing are Driver seeing and year-over-year excellence results. great XX% operational growth grew by We

the commute lower focus $X.X growing growth the while G&A. Operating rise year-over-year. down completed exceeded rides. We continued into ride rider rider Total of and to row we on faster. and insurance with and those $XXX the is combination X% charge offset as The XX% well strong by year improving XXX active November up reflects grew demand improving across significantly to the rideshare-only revenue quarter double prices we down to stronger same now million, performance. And average took convert ended of fourth which consistent with even competitive XX.X per with faster our increase, X. expenses nights given QX million, frequency, $X.X $XXX outlook intents financial reflecting even supported the XXXX digits as in ride Revenue billion, in strength our cases, these ETAs. in Cost year-over-year. cost supported our affected fourth So were our results, more a with exceeded our to we our XX% rides which service out. rides including accelerating quarter as year-over-year, bookings million This that provided year-over-year particularly of Rives active the use partially of healthier number factors less quarter were of earnings year-over-year, million dynamics. X% year-over-year marketplace. call riders. growth on was and of referring able are frequency along year-over-year we reflected health prime billion, time We for reserve and lap Gross year-over-year levels, rides revenue up accelerating XX% fourth grew

insurance will the we QX. roughly of quarter-over-quarter, that revenue percentage QX beginning a recent restructuring ride I gross combination reflecting expenses slightly our XX updated The rates, third-party versus was X.X%. lap improvement with were mentioned, sequentially as along to from percentage As savings along percentage higher of at by quarter. an of third of cost Adjusted just $XXX went EBITDA XX%, volumes as points fourth cost agreements into charge the of increased actions. was $XX a our with of million of the operating XXXX I which approximately from remind bookings gross effect the quarter you higher million, bookings,

savings However, around healthier, more with our these able million generated through of marketplace. offset $XX were we costs to largely efficient

the $XX.X XX% bookings, year year-over-year. XXXX, up full billion gross in we For generated

positive with adjusted and equivalents free cash cash And Our short-term as was entered generated in of time company's $XXX billion. in percentage fourth XXXX history. bookings the a of with for We investments solid a X.X%. $X.X our unrestricted second flow EBITDA position which quarter, gross was million, the cash we approximately

Now what me let first about quarter. talk in the we expect

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

total expect the revenue total slight to trends growth gross of consistent expect will we year-on-year, with increase ratio marketplace in performance rise saw in QX. the healthy XX% approximately in of January, in a total bookings We result we

As spring Day. break and quarter, particularly and plan we the execution, remainder operational key move the related St. our continued Patrick's excellence like focused of to through assumes events

bookings For X.X%. adjusted of million X.X% a the of to first $XX million we adjusted quarter, approximately EBITDA of an margin gross and to EBITDA as $XX expect percentage roughly

over is to going more seen quarters what the we're toward longer connecting the year XXXX for commentary Next, directional you and understand What commuting, to getting is around expectation and I'm we're past out and with events They're result X world are friends. with term. help that these remain people working what full a gathering provide we've and of family healthy. our continue the traveling as on to trends and rideshare seeing will backdrop them. will heading hearing, Based some

We reasons attractive Lyft. of higher we're in revenue and driver margins. As drivers great David levels result will streams riders and to working discussed, believe this more rider engagement with acquisition, retention and more work efficient give to incremental choose and

full year in XXXX, expect growth With be the year-over-year rise these to the mind mid-teens. in total for we factors

the in with ride growth of the Additionally, as we bookings continue market. per we modest competitively to operate gross ratio expect

X we also to margin growth expected faster in In rise than finally, for percentage bookings flow on XX expect milestone levels result, an of a EBITDA full continued and top excellence there adjusted plan, adjusted flow cost time. planned mostly for insurance the grow bike As line to approximately maturity expect outflows absolute and terms basis expenditures reflecting key we complete. largely since of free electrification to efficient year cost the free the now first related cash impact of a are gross for year-over-year XXXX, working upgrades discipline more change are structure the will expansion important cash capital drivers basis. The that And year operational Lyft. slightly of of This points full with to generate capital share EBITDA our our fleet of higher in the bookings our Relative positive reduced our as cash our gross X.X%. a is program. to is XXXX, support drive combination reduced

just spend point. last me more Let one on that moment

Our current is fifth were periods vast our the insurance now we risk entering trans of and largely we've where down structure self-insured. year, to its legacy majority exposure worked

give the the cash that, expect level full free I insurance-related more free accruals note flow of we encourage EBITDA for the close. bring you As full on our balanced to our now we adjusted trends free where I'll a remarks expected sense they've cash vary, the few focus I'd our are over of years. some half and prepared that payments to year. anticipate insurance-related dollars our than in flow year that a quarterly been XXXX, so result, roughly place you be cash will flow. With of to convert to will a would we cash To are past

theme. Our to team foundation to drivers It a profitable our growth. clear. priorities for focused XXXX, are last continue we're up year and excited and to adds did incredible and establish to on build riders In work innovate. all one We're strong

all you of management questions. more our look We a we're business. June. Operator, to Investor are more our I introducing at financially strong to to discussion team in-depth and Day to building ready having in forward a customer-obsessed, now take

Instructions]. [Operator

question from first Your comes the ISI. Evercore Mahaney Mark from of line

you, X scheduled be to for big had scheduled there for are about to extent are I of I big of stage talk the good about ask also time? promise, And talk But and proliferation that's push drives, about us promising, rides, think big is you to Okay. adoption on how far, questions, try will, to pickup sorry you early -- given and please. if then and think better I'd economics Because very This broader? that and want that like you product on-time that. the the what to that usually the to benefits for that learning for but think very so the know in there how that. for how do over you ad want riders help drivers you've side, testing about the you could Lyft sounds

team Mark. I'll tag this take And but on stuff, one it, not I yes, would some and I take. Aaron will probably

level, to the it's that and amazing me really we've guarantee ton. our I one And but also product. the heard it's can plus think, of excellence, to you scheduled So sort rides, in of to invested as product, XX% both the say, ride, the fact an reliability scheduled a well potential we operational speaks

upside because think airport. are There's X% economics. of proportion So office. if Great Monday to the about around, those be scheduled. This got to comes right are as minute. morning you But it rides has nice to that no rideshare on-demand you of really at you you get the reason doing to about our for only it, now, mentioned,

know can. just Bad comes to we get you you like can office. weather around, have that's the If to night you before, forecast the

you there. ride to not for upfront reason So no really schedule a

do more infrastructure because So we and we use upside drivers riders are there's a a lot also this for more. cases there then built, but for actually again, lot get see building paid of drivers on

drivers care now something about. well, that release to fact, and a wait which as really we week, last aside, quick drivers In paying is just we're did

good much opportunity, second a so it's question so much media, win-win. On on again, opportunity. So our

Lyft, their -- not what have -- sort year, are and ad. if Super out, than well I may reason I recently, a prior forth. so get is their you the course, so almost with mistaken, that ways in if And run it And on and for an with customers. connect hope of QX for our moment And think you seen which, I business new massing all asks was you a actually you ad had brands I think, use We the for this of I'm think media was hungry XXXX. sold to the bigger of have, around person if screen. Bowl for

their more XX precise, times anyway, sort and So content. in phone ad get XX check for minutes tend receptive minutes. in their to you're very XX high-quality the that to of app, people X the an you actually, there. XX at the And X then the people average more And to car, typical to They're be if like about look to [indiscernible] you're par some during minutes. open is and

And to be Disneys way, we're the out on world, so high example, as the the very, so video about particularly drivers good X,XXX has By of there. world, the the quality actually captivating, to a that ad of able to be produce tablets universals the and Apple so We've the economics unit an we going and of case, use some engaging just or [indiscernible] hope the got with the really working margin released content. computers we've closely for obviously tablets in-car to very is as with characteristics. and think which of well, world to tablet those we back in share riders on

a super excited So talk it. about to lot we're but anyway, about more here,

but Just the we've small got numbers now, aspirations. big fairly are

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

you Erin, mentioned we 'XX the for the I points. XXX margin slide the expansion? commentary just XX. well. please think as clarify But Can EBITDA directional basis Thanks say,

you between see is please? talk kind come about you clarify margin gross of And So the can but the your I leverage to at where levers most even for of if underlying just disposal, could through? that if the kind XX room assumptions the again, do it and then think OpEx it is that you XX,

Thanks, the is And Nikhil. press Erin. This actually correction from this a release. is

You're XX of correct in referenced remarks, margin my basis points expansion. prepared I

our you terms at X.X%, in look can approximately if of of full you So XXXX. that year at in our XXXX performance commentary translate directional into X.X%

and levers also to talk David stage. second them more might I was about And I'm to think your so see I happy growth for we start to And the over about but that, it question XXXX. turn set as just

your don't last why way, By team Yes, I read the week. [indiscernible] we report this Nikhil. tag on

I'm of about a for out because zoom So going to we're to second the what speak us a of anyway, big we're talk -- growth broadly speaking. it sort going. where we And going opportunity gives and picture where see we little

your the frankly, travels not industry growth. growth A look that all, much sort pretty are a reasons we've work about good and see find adopting stage, is the just again, but really to from see, can't to service of healthy line, the lot any definitely coming of there. and to just set detect that's some top great -- we at to try So we really got question, First some Back dynamics a of that the from closely super just people and worry. I fact to definitely macro thing And actually thing, of trends can't COVID all and you it. sort a worry and sector post just

think story partnership-driven course, growth, I those, again, add down go to perfection continuous I very both of individually the side. and level, and innovation each collectively the very, growth of the strong of and about sort we when on then So and talked a a really rider

Nikhil and rephrase think, a here. to blabbing of just the since been that have we've kind of been we'll of more you already question, refresh question, sort while memory, you'll hit asked we've that the over my directly. end Now I Maybe

gross Yes, as that leverage better the a for expansion how color. top XX about and I of OpEx the goes basis on? as margin trying sense to as was thinking thanks disposal the year Yes, of just you're margin to core at well David evolution the your line of points to get get of drivers kind really

will Erin Yes. now. it it. grab love Yes,

Yes. Thanks, Nikhil.

of foremost, David what So first little to and said. reiterate bit a

we the trends we well. through we I that really, And rideshare XXXX, of As et saw the really half in cetera. came health back against commute, travel building market, backdrop, with to U.S. mentioned real related executed

touched see overall. so think the and we think the about the on we And and we way of we that look some same rides that into about pillars healthy as as XXXX, backdrop growth, David

only we efficient So not bookings but we see way. growth an that see that gross in in rise growing

So with we Lyft. the on with my of on to on of And both drive to drivers the our right, marketplace. Lyft, touched we're efficiently way on like some contributes spending Lyft. things some partners choosing more seeing driver That the with side, trends efficiency, more that run hours I expanding touched remarks David the really

And to that grounded are point, then reductions we that the XXXX expense engage way. efficient in And are more And your about about creates think discipline. those operating comments then cost operating in as growth to so obviously areas as expenses, significant we really a leverage directional took you continued overall. as see continue we in our we much think an for XXXX. opportunity. And

the So the of year, a that different directional back increases quarter some visibility we the does which operating insurance to great we margins on of can the with the our levers line plan we grow contemplating able that market, but think the into expand given at side, engage guide even fourth contemplate as we beginning renewals discipline. more the months first have X retained into that we we number in in efficiently cetera, fully to last EBITDA our the are And year. have we et expense top But we've are is on the the part full contemplated year continue provided. of of

to a on wider little this going go one. I'm

just opportunities. interesting because -- of we lot So there's a

not up, actually there's priority slightly question a is -- which a that in premium X, October. slightly pickup is We Comfort So different. to or Mark pick that schedule prior [indiscernible] it, but rides, product, about significantly Extra pickup about another a another, not a -- our costs we've and higher margin priced It's of launched asked couple are call Prior a product. buck times. talked

of look mix as us So opportunity as our if And lot well partner very of media, point high-margin that's lots the for there. at back ], of a again, then, rides. a you business to originated [

lot so our really that sort focus a got growing been line financially in a which on structured a made. is opportunity way of far a strong say in on real has Erin margin [indiscernible] top very reflected just the in of efficient side, I'd So way. and the remarks that

question Your Doug from next comes from line Anmuth JPMorgan. of the

on This is Wes Doug. for

Regarding how in we here? of in the rise about mid-teens XX% think to the from growth 'XX, should of from kind deceleration pace

thanks to position -- lapping We're year a are for of And will reminder, guidance for question. XX% sequencing. the assumed growth that second the operating prior of we we So we about rise in the in just a the assumption started competitive But quarter. quarter we've that of not the rides full terms QX in fully lapping way year talked grow XX% for quarterly really the in full the our in of we've And talk as year-over-year. the about that weren't mid-teens. Wes, really provided sort approximately XXXX. also where more for

about maybe QX to of that year how you how some the we think gives So full hopefully, to in and the context for for XXXX. guided that context

seeing like driver early side of to whether tell? lot seen like to incremental rider the a you've So one result? Are if Or on is kind or ask side share gains you see. any be success Connect, of as that Great a I on Women+ kind there. the could maybe of too just that more

just just there. sort markets question. say than as everyone. year, set it's XX things of was markets. it it end first X in the was level over launched now, couple of directionally stay, last We XXX for First of Thanks the Yes. in markets just for A I'll of in at it to

sort And obviously, So perspective, an there off perspective, super soon fit on. launch frankly, like turns that for driver product the volume charts thing, if But a rate that or XX% one of small. it's many still it's no aren't have good. it fairly of acceptance from type it's off from and once a features market something example, overall you

point, And referring so indicators are types that drivers for. potential These drivers. the have sort back to speaking, higher early we the we mentioned roughly margins the density, because higher those other if the new are referring have of we potential drivers. look expansion I structure fact And now way the drivers lift of are margin to of go. of to that rides women

we're good. I in moving + very million last expect, that a we've of X that's bit obviously, far done Connect so if that we know accelerate mentioned anyway, So rides about markets. we just the just XX don't couple And now those to nationwide. months, quite in

commentary very or ask or look a sort of the think, hear So nothing media your at And frankly, I to is good specific you if wife or good response. women thing, whether life, a [indiscernible] really they probably share, but product good, fit. social good a your this market as in say, daughter I always think the very

Cowen. Blackledge comes the question from TD John line next of Your from

Two questions.

Can flow. free remind And just experience. then go we the the going to And in is XXXX kind again second you should forward? of First, that forward the XX% question customer on drivers flow expect cash rise on conversion that EBITDA 'XX? in of as conversion free it sustainable the we us perhaps rate? the Or cash is

XXXX? consumer With incremental those in experience the of further ETAs in could improving, metrics see Primetime improvements both of and we kind

turn the I'll question to John, first David. then over start Thanks and so much, with it

a cash commentary as XXXX. So for mentioned it's today, remarks, reached prepared overall our us in an for From believe we on we've flow we milestone where give point, directional company. and we free our very pleased to important sit turning

I EBITDA expansion transition of right? healthier little obviously, to and In growth program. first the what's year-over-year. driving insurance talked We've and just a then about got a terms adjusted And respect operating foremost, that, bit business, with our

claims So to works, history fully we where can time in take to were it self-insured as fully years was largely of period up for there a insurance our X resolve.

X while risk Now to at are not ago, and transfer about end fully the did tail transition legacy we structure our book. the It's we of years resolved.

meaningful there's but this that so resolution some And go. book again, to legacy progress of still year,

So say because riders XXXX. The allows capital mix think given larger on can if we've about our got we is, business. will, year-over-year. in conversion, them. that much you bike free XXXX I This think directional I last love you our of that all, us cash would expenditures that And moderating across I obviously largely is the somewhat in and touched in for our to, commentary thing e-bikes we've bike updating invested scooters of fleet first a flow

more it be Second better and us a riders. frankly, higher for that's all, ride overall an just overall of efficient, margin and allows to experience

So investment while come to some in there's XXXX. XXXX, still deployment of in happened more in most that

So additional we've conversion about from of gives line free and color flow The a and bit we're here. on very improving for the little reached you XXXX. hopefully, is, feel bottom some a again, point on focused cash that how we thinking we're turning

me speaking here. from improving of on Let that, pick up

as Primetime. and in ETA you give we've well we've what the What future. So then directionally you about mentioned seen some and I'll data maybe specifically seen as --

than in So quarter-over-quarter ETA ] QX year-over-year before. [ got actually and they've faster been

saw year-on-year. really directional saw prime share we of nice So in precise, by the reduction XX% actually about I there. time be can QX, improvement affected more Primetime, a a we rides again in

changes meaningful really both. significant So in

colleague hope, while seen something, book ] doing on are, or this And this. because things a will on-time flights is push the story. promise, sometimes is how -- really doing I finished to question an just at us there's What the you've by personal a the the scale like focus X as here with hard Expectations." I like day. I we "Unreasonable pickup X,XXX as we I are called go? on like team, by think comment a a delta X,XXX at just airline even look is reminder, rides [indiscernible] on to the is day. is a it a million we're energized I And to And I me an expectations unreasonable. other my area So recommended here very look, little further there continue much [

on in we're really But of XXX, Now at that still, large. the they're there XXX lot passenger jets. obviously, working quite shipping a scale is are people,

And to it's so just an no day. job excuse. unreasonably -- we remind it's team still have every while We our do I large, good

but word how we say to quite So on That's I we're can much expect perfection. I not a cavalierly. go, further don't focused will chose want we

question next the of Your comes from [indiscernible] Wells from Fargo. line

why I industry like healthy. trends the pay for all establish seems Two now to It extremely the that a is XX% of on commentary supply driver right guess, minimum threshold? suggests me. are time

bit increasing little with And think that past. so a the stands in contrast I

And just on timing, secondly, think, then commentary insurance. ask really on could So I any maybe be would I interesting. the if one

leveraging risk obviously, indicated advantage insurance. other the guys the direction. guess we the I there? moving towards in in is differential to shifting structural concern your a competitor captive they're correctly over U.S., mixing by I mean You any has been there how lift business business been They've can strategy in captive cost been [indiscernible]? build insurance the that going transfer, you've explain towards Uber primary that their the

Yes.

one first. I'll one start on the with we'll -- that. Let's do on

couple a mean of I there. things So

So best actually, chest I'll tide. roof old sunshining. The start your it's to an is whether replace with time

for of time, strong for I'd already. have So differentiators really the perception preference long driver we driver it's kind of a since one being been the of side. true earliest a sort Uber on and the Lyft real And of basis Lyft. that's Lyft days say

We're leaning into And that. so we're leaning into that.

report seen might have earnings scenes, grade-wise, drivers out And weeks decreasing. of a that so Uber came suggested been you sort from ago of have the that couple that behind the

period little estimated XX%. years, I they have think, over period maybe X%. X the the going ours about after up same a think Whereas was, been over I

quite So the background, just it's drivers just our working paid hard making we've technically in and for we at the again, riders been clarity, who as drivers sure that a well as the can. And they take cut. pay are

kind that's So of it. mechanics the of

some take barely you and a drivers we say, me And often where quite the what ways the anything. very started. too those and Well, add, get we it [indiscernible] have there drives do question One of like Are taking a set then cut. I points. drivers pays pain of $XX to A I consistent my since are frankly. second a might question I is address can ] communicated transparency. Why The much. minimums, the feels to we given fairness. day So is of personal rider around mechanics, in [ riders

it So a it was and part. driver. And been service top levels then say the in a and creating that margin. obviously rider our of very deliberate turn drive there a service also X can customers every ends up car. efficiency, on increase It's both to strategy marketplace on but for some levels, It's time are which period line preference in we improved if increases

of encourage quite timing, to really not to things feeling question Like to pretty it's well a it customers. you it around have over like we last Aaron. sort self-fulfilling if obsession process. And I now, There's want piece I when to your of yourself. The listening going do customer sort rather published you're one going that when? to mean than doesn't defend say everyone are So to last a back before thing would I'll week just turn to read.

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

then for active know seasonal I bringing the this audience is the about with So first, balancing side, product like trends the of future. that's over you all initiatives Maybe should about level of growth about of of David, mid-teens there how should competition, priority hit to to and think required the the sort the potentially the cost related can But to growing that importance talk to about think of then elements as into prices kind the kind the how compound we on we the portfolio medium headcount? grow service some in riders. And with think level term. you of of on users investments that, efforts run on XQ. the and top in products expand

and Deepak, then take and I'll I will second. first part -- Erin take the the will Sure. Erin

cold, you very and bit much. which sum a is good where, snow yes, see because of it's don't first the rideshare down of riders scooters, -- switch want take good definitely sort everyone bikes and you and and on about a QX in is double question there's our ground on but a to riders to understand, people a to, So alluded obviously, active something when for bikes active of

We there's rider just a to Like very, of -- easier were an than at that new [indiscernible] that because new bit. we a for the on little XX% service riders to that mentioned it. to -- get almost work it's say zoom on on efficient and It's here thing, levels. a rider single onto out I [ important ]. us, coppers the book. sort obsessing our every time look over last that acquire the a bit of very hold going But broadly ride way and switch a So rider over work we our existing year. little more We I here's speaking, of we to

again, [indiscernible]. first every is to What quarters that of couple making you come when our at [indiscernible] increase higher see all going if fans, meaningful and your the or not and high-frequency particularly shapes riders, last take we incredibly telling the our has biggest of are And are we're We rider, we work look business of really over so also that good existing, positively sure to frequency. really because your be care. translates ] been order in you a a frequency sorts to riders, responding it's focus riders at indicator that leading a the biggest actually you new sizes time But high-frequency there think our critics on you've has that's [ all And get there. good in segments. look done,

And a product every is so we initiatives like more these we through time, expect to as riders that user do, new effectively because single we heavier those right, acquisition, of rider it on means rider that more them even energy things us, on over of other one in Women+ comes focus of Connect, some be for Lyft. a profitable

customer working increasing we sort this sort obviously you more creates you the acquisition densest the combination is efforts -- basics, then of even If can innovation to extent of or a time focus that's to, on you see in high-frequency in do terms -- where good So really it, good because or riders of that's over can data job need the even earliest it both. to you is of that do focus some and things. some frequency or want product the marketing or on that

turn it And structure. about the over the of talk to kind cost. that's Erin to So then I'll

Yes.

a about asking overall think initiatives sort of cost bit to how little XXXX. So into and you're about

excellence, So on talked a cost about I and a focus chatted includes operational discipline. real headcount. on specifically focus think that absolutely you've about We've

are changes, the of count, head you we level will, overall so not material And in any if et anticipating cetera.

But would et on sort and as even some cost increases are our we head and flat things that, outside point relates going to that disciplined I benefits, it out cost some you're to base of count, Although year-over-year. for inflation like of structure. very, expect very [indiscernible] cetera, of

go frankly, about initiatives. framework the we good I I to initiatives. investing think And back driver earnings of way it's think of a the to because You in going really asked think about types that these commitment I'm cost in the

obvious in for first to you the our a here. though is even So commitment driver outlook that about and associated everything included if of heart, at XXXX. lot emphasize, But probably think it's just foremost, the published with we that information want earnings

like include drivers XX% And Some announced things taking of the we as on a are of about you then those that XX%. floor. average things think can

drivers. So pain -- consider point edge to that cases another really these a way are are are for this

And pain much some is there a overall to allows really back, to promotion, we're And step points drivers if drivers biggest engage premise us efficient the with important that for the that the really you the table. taking while cost off way is in more way. so of a

a that that just a a we to in obsession the really investing way clear total ends sort so you for about way that? of business, how, hopefully, for efficient things. framework is And it time, customer And This do gives thing up being think do. our over to

So for good for good the customer, business. our

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

I you or were that XX% insurance to perhaps, offset able for Erin, in marketplace costs. you mentioned improvements balance so think incremental your the of

into incentives And faster slightly that for Was guidance secondly, of dig it just versus a driver bookings then you implies can function trip for coming bit mostly a that XXXX, down. more? your growth. So growth directional little

as should lever So expecting a well? be XXXX we pricing in potentially to

Yes.

So thanks.

where were our QX, insurance the we you full third-party think about impact had I renewals. talking of

substantially growth, cost QX. you if in had guided that as think anticipated revenue of I mentioned, you're And about we with If so correct. ride along and to increased

us, well, were increase we meaningful, much as really preference been talked and Lyft, for Our down, et engage again, to ETAs in right? able it's I with yes, driver -- And operating driver efficient we QX. community were both so hours, driver about which allows for increased saw efficiently way. as that have go think largely to more in that driving more riders good a offset that you about And And which in and that cetera. the QX

of business. a overall becomes it in if virtuous the sort So cycle, will, you

You're Benjamin. going to repeat second have question to the me, for

than growing gross faster Yes, trip growth XXXX. bookings in

pricing in for [indiscernible] assumption an be there's XXXX. if curious to So

question. so Yes, Thanks to than rides bookings in XXXX. for slightly gross guide did Sorry. growth grow -- for the repeating we Thanks faster Yes.

things that our remind our also bookings flowing everyone important a it's that to are bookings, business, I that our through scooter business. to remind number majority think gross bikes significant media, line. and Important while et cetera, of gross is rideshare like core

So I'd point out. that

to As it's it pricing, not in driving XXXX a our assumption relates guide.

And you gives so just that hopefully, some all context.

price to remains be strategy competitive overall. Our

the Your Morton line question Moffett next from Michael Nathanson. from of comes

guidance And if the the wondering was directional talk the what I some business. are about XXXX. for we more performance for could advertising expectations the of

David As referenced the little billion part advertising Yahoo! I remember $X.X of while business. on that potential a Finance, for ago guide,

just the that a cadence going of advertising get understanding trying So business deeper of forward. to

Yes, see Michael, couple those times. come of that's I of Yes, it's David. back. has a have that one cases I sir. now. me

working team long meant Who be term, was to hard. sooner and to that get So aspirational be will maybe clear. there we Maybe knows? or later, is pretty

sales had they ] last in I week history. saying their biggest [indiscernible] not Friday. a of I'm out think week, hope ever here, I but just We don't [ that's on anything line internally just

looking doesn't sort for. units. side partners does But what ad fast it's particularly of how really overall about see see when you'll tell growing from lot it. to And It That's good on good fit what being advertisers innovation we you tell and the you deliberate again, size, perspective. a are it of fit. we're a or our So It's media you? comes It with new total business our company tells large is that the a product market definition. by not

Just second. as X a quick reminder and just for big picture for

that units on that in Lyft sell app, which advertising advertising the cars. have sell have we units We we are in tablets, we

you've York recently. probably You've them in New seen if been City

We -- and to cars. again thanks And Viking top are panels, scooter then panels school our old some got which cities. are some we've we have on we saw electrified on in which even increasingly panels, digital of some have advertising business, as of of

also be [indiscernible] for tend and did So why surround a they multiple nice of one we've example, these really of buyout didn't outlets, Zillow I got sound mentioned, sort buyouts ad big it's multi-channel of cost I of kind Zillow. sort I reasons of sort and think a in quite Sunday to other we mention to world, we're it's type interesting, of something physical a things. and aren't the of and be right that's really physical And right, that provide out digital there in ways lot and because front world still them. that to of a can lot the people, there important quite the turns

that's all to So meant kind of anyway, just really color. be

sure, us stand of terms talk those something not be In not yet. prediction. just about. on though, by time, time a you'll do wil for putting numbers, we're more it I'm hearing But frame my releasing actual be I Over it. the

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

you and value-added I the forward think really and of of rolling the past, marketplace, about out Okay. were you as services. to have supply sort the David, in demand talked service, base level connecting incremental looking

development with just about? directional any we how So you been should to, else what here? us maybe be one pointers advertising, as share can has thinking the is alluded and progressing And piece, you but product

want pipeline, because, idea. out always I area such it's good get frustrated always an I about the got where not we've just This course, all as myself but a Yes. things to the is of talk

I sort things. talking of thus, of keep some to have about I think the same

But relatively get wonderful. marketed. quieter we've do around when And there. with Comfort not sometimes in play we look rides car just least launched newer there's at more slightly that's we we've product second. want my And or slightly another car small we've Plus larger think for case, at in Comfort X either it's about bit million given Plus, so people can it's slightly We a car, since a but or there option Let's a stuff. is I particularly the a portfolio, it. on-site little products

it's So imagine all with premium for can promise, have But a reliability like guarantee that's where you and ways very a Pickup with sorts focused maybe example. Online necessarily today, promise we it. on right? doesn't small charge a to of stop be you of that, again, airports, can that that sort that

there. new I to just frankly, our to could ideas things get more So that's -- and job of I'm team but sort going it wish coming about our lot on one there. to amazing with me there's I focused the a enjoy, I But that folks really pardon do is of the think have more about specific, customers. how are I my up for leave

over lot a see to expect time. more We

the Your question next from comes Youssef Securities. line from of Squali Truist

was in was XXXX. a the One, what are in Erin, First, in that announced? improvement David, margins to it And yet as basis you at that look you rides relative XX wondering or to point And you of said XXXX. connection expect partners I to an guide be that baking back in XX% XXXX. have has XXXX, additional XXXX additional partners versus

X we XXXX, happening guiding beyond not can is beyond, know from modeling in or XXXX I what yet, but are from actually to having basis a that you please. a you if is point beyond As little that it perspective, to look yet just X that beyond you're the XX be XXXX may things preclude sustainable point

Erin tag team David. Youssef, start, I'll will with and me. again, it's

We're to will you it disappoint word not helps I little such I have that framework. a a color we broad tell to percentage, the But story. on bit it's bit. a add partner is expect because going to have maybe And I of give think specifics it unfortunately, a a little change. So to the word, how helpful

I You as the Case where have these largest large let's North They fairly clear are some we example, issuer, credit America. an the they Lyft. hear proposition card they say as and of not earn of that's in by the issuer Sapphire driver, their points And strategic is Chase that's relationship a them think where might something long-term I card can regularly with that in that actually have involving very and particular, my a they Chase value choose Sapphire think of -- using riders from partners people fairly credit cards. use reason a Chase

a sorts -- similar of with we those relationship have So Delta.

those then We There's partnerships briefly, [indiscernible] one the issues do Alaska sometimes lot mentioned by and with Airlines. things. with a more of way have those. I in we way, start similar can different all

excuse a where points a as now commute say, the to because partnership, to So right? I partnership. evolved a Delta or Alaska get airports. Airlines And by With me, providing Airlines of support flight It's again, be purely transported started a -- So examples, as lift some just for me as you travel. other let color. workers center their we amount distribution Amazon, some with give for as relationship them well have a certain we're business crews

early and On did the Starbucks, Delta, I so FedEx. with on mentioned I

of in situation space. FedEx, where lots then actually had So a distribution and get them similar parking LinkedIn kind ran actually again, their their centers, to help And of out from instance commute LinkedIn. our context. with [indiscernible] Office, with we

Pass now we a commute them. provide so Lyft our And with product, solution for

these about these the heard So turn out small past, you've had in Again, but and which relatively growth. each has of individually, some health talk quite care they to collectively, meaningful. be are nice us --

And to sort lot of so a If relationships, a to be, switch. investments get good we're the is quite by of for there's doing say real that we exactly nice, of job because way, it tend And again, myself a sticky without of for is, it's ahead opportunity. making your where reason or would no right? they part which you're partner to partner, the wanting I whatever business on prediction our percentage see

that of margin stability that's long-term potentially higher rights. us some provides And and, course, so as -- incremental well as

take I'll the question. And thanks,

directional in it's profitable comment is But you of extent for continuous partnership-driven the in I'm I a think XXXX. helpful, things sort remarks right. about relate we've over durable hallmark X and to perfection You're frankly, expansion to to which, we key on gave to not guide of the this element, discipline of the as sort innovation, going interesting think it's touched on today the and about any growth. would time beyond think areas: our rideshare business. suppose leaning other cost I into Q&A,

scale, think sort have they're a If all perfection, These much what not laser you execution deliver doing about X to well. millions things business, of to Innovation of rideshare millions be as day that date. healthy a right? and great of innovation every and and those if means think ways annual of with core those are things, think very continuous takes meant continuous to focus. about things about cycle that of we at all meaning expiration have That's what it rides you it an a sort

of think are those So think I I ways the would that some about.

underpinnings we've all that of durable business in would sort -- running the they're the way and of on themes. I fairly touched we think XXXX, are

will call David This the Lyft's Richer, will turn comments. any back session. now conclude our closing CEO, question-and-answer I to for

today, past I way the joining for really long really be has year. brief. I'll over you all. come us Thanks business the This a appreciate opportunity.

growing riders well, businesses really cash well dropping for but drivers. through great I and We are free our doing some whole executing statement. the And think competing we're it new and

been. excited super So about where we've

great Here's where shareholders thank our I think want in call single been log the riders good hard years, team the on have working behalf for calls. over we a to person particular, of being and who's I I for members. into partners every end, our Really us members business. and to you who making sometimes so these team know on and appreciate drivers

So thank forward keeping up date. We thanks you to to And all. look again.

call. you participation, may now and disconnect. for your today's concludes you conference This Thank