Lyft, Inc.

Good afternoon and welcome to the LEAF first quarter 2021 earnings call. At this time, all participants are in listen-only mode to prevent any background noise. Later, we will conduct a question and answer session and instructions will be given at that time. If anyone should require operator assistance, please press star then zero on your touchtone telephone. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Sonia Banerjee, head of investor relations. You may begin.

Thank you. Good afternoon and welcome to the Lyft earnings call for the quarter ended March 31st, 2021. Joining me today to discuss Lyft's results and key business initiatives are our co-founder and CEO, Logan Green, co-founder and president, John Zimmer, and chief financial officer, Brian Roberts. A recording of this conference call will be available on our investor relations website at investor.lyft.com shortly after this call has ended. I'd like to take this opportunity to remind you that during the call, we'll be making forward-looking statements. This includes statements relating to the expected impact of the continuing COVID-19 pandemic the performance of our business, future financial results and guidance, strategy, long-term growth and overall future prospects, as well as our definitive agreement to sell our Level 5 self-driving unit and our agreement to reinsure our captive insurance subsidiary for certain liabilities. We will also make statements regarding regulatory matters. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those projected or implied during this call. In particular, those described in our risk factors included in our Form 10-K for the full year 2020, filed on March 1st, 2021, and in our Form 10-Q for the first quarter of 2021 that will be filed by May 10th, 2021, as well as the current uncertainty and unpredictability in our business, the markets, and economy. You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of the date hereof, and LIFT disclaims any obligation to update any forward-looking statements except as required by law. Our discussion today will include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. Information regarding our non-GAAP financial results, including a reconciliation of our historical GAAP to non-GAAP results, may be found in our earnings release, which was furnished with our Form 8K filed today with the SEC, and may also be found on our investor relations website. I would now like to turn the conference call over to LIFT's co-founder and chief executive officer, Logan Green. Logan?

Thanks, Sonia. Good afternoon, everyone, and thank you for joining our call today. The ride share recovery continued in Q1. We exceeded our outlook across revenue, contribution margin, and adjusted EBITDA. The improvements we've made over the last year are paying off. We've built a much stronger business. And as the recovery continues, we're confident we'll be able to deliver strong organic growth and adjusted EBITDA improvements. We expect to build a significantly larger company by attacking the trillion dollar plus market opportunity in front of us. Turning to our financial results, Average daily ride volume grew each month, with March showing the steepest recovery. Revenue for the first quarter grew 7% sequentially and outperformed the high end of the outlook range. Recall that in early February, we said that Q1 revenue may decline by 3% to 4% quarter over quarter. Active riders increased by over 940,000 from Q4, representing 8% sequential growth as we welcome back riders and increased rider activations in Q1. The rollout of vaccines and reduced pandemic-related restrictions helped support greater demand for our network as the quarter progressed. However, stronger rider demand began to outpace driver supply at the end of February. This has been an industry-wide dynamic. Brian and John will speak to the issue in detail, but we are focused on increasing driver supply and achieving a better balance in our marketplace for Q2 and beyond. Let me turn to April. Rideshare rides declined month over month due to typical seasonality and the impact of the holidays. However, on a year-over-year basis, rides grew by more than 100% as we lapped the pandemic trough. It's worth noting that in early April, the CDC significantly reduced testing and quarantining requirements for fully vaccinated domestic travelers, which may have provided a boost in terms of airport rides. Average daily airport rides were up more than 65% in April relative to January. Although people have started moving again, we expect there is still much more to come. We continue to believe that there is significant pent-up demand for mobility that will take time to play out. Over the last year, rider demand has been limited by how safe people felt going out and where they were able to go. As the vaccine rollout continues, warmer weather takes hold, and pandemic-related restrictions are eased, we anticipate more people wanting to go out and get together more often. And we're working hard to get riders where they need to go. We believe we are well positioned for the rebound with our focused transportation network. Let me spend a few minutes talking about what this means and why it matters. To start, the transportation market opportunity is substantial, and we see a long runway in front of us. In the U.S. alone, personal transportation is the second largest category of consumer spending behind housing. It exceeds $1 trillion annually. Transportation captures more of the consumer wallet than food, healthcare, education, or entertainment. And car ownership in particular is expensive, inefficient, and inconvenient in many ways. We firmly believe that the future of transportation is as a service, one that offers the appeal of more flexibility at a lower cost than traditional car ownership. John and I have been building towards this transition for over a decade. We deeply understand the market opportunity, and I'm confident that the differentiation in Lyft's approach will be more and more apparent over the next few years. Today, we are the only transportation network in North America focused on a full set of integrated services across rideshare, car rentals, bikes, scooters, transit, and vehicle service centers. We seek to deliver the best holistic experience to users by integrating the currently fragmented transportation ecosystem through a mix of great technology and operations. When a rider opens the Lyft app, they know what to expect, seamless access to the wide range of transportation options available through our network. This is by design. We work hard to give people an incredibly simple experience with access to a ride at the top of a button, but there's a lot going on beneath the surface. For Rideshare in particular, our transportation network takes into account a multitude of factors in real time across demand, supply, our marketplace, and our platform. Going a level deeper, when rides are requested, our systems dynamically price, dispatch, and route riders to their destination at scale and nearly instantaneously. And we're able to do this in a way that maximizes returns by taking into account complex inputs like conversion rate and unit economics. Much of this is proprietary IP that is not easily replicated. Our systems are underpinned by the accumulated learnings from the billions of rides we've facilitated with tens of millions of riders over nearly a decade. I want to spend a moment talking about our AV strategy. We've signed a definitive agreement with Woven Planet, a subsidiary of Toyota, to acquire our Level 5 self-driving division. This is strategically the right move at the right time. When we opened our Level 5 engineering center in 2017, the main goal was to make sure we'd have access to affordable and reliable autonomous technology. At that time, it wasn't certain that there would be multiple well-funded autonomous vehicle programs. In just four years, we built a world-class team and made remarkable progress developing a leading autonomous driving system. Level 5's differentiated approach to advancing autonomy, leaning in on simulations, state-of-the-art machine learning techniques, and data collected from vehicles at large scale helped speed up the development process and drove step changes in terms of capability. The team's rapid progress and industry-leading positioning are reflected in the California DMV's most recent disengagement reports. The market for AV technology has grown meaningfully since we first launched Level 5. This means we now don't need to develop the technology ourselves to ensure we have access to a competitive market of providers and that we achieve our vision of integrating autonomous vehicles into our network. The Level 5 transaction will further strengthen our financial position and enable us to continue to focus on the unique value of Lyft's network. Going forward, we're doubling down on our industry-leading Lyft Autonomous Platform, previously called Open Platform, to deploy and scale AVs with partners on our network. This team will continue to focus on the autonomous user experience, marketplace, and fleet management services that ensure Lyft riders have access to the safest, most advanced autonomous technology on the market, and that our AV partners have access to the full power of Lyft's transportation network. John will talk more about our AV strategy and provide a few business updates. But before he does, I'll turn the call over to Brian to review our financial performance and provide details on our path to profitability.