Lyft, Inc.

Good afternoon and welcome to the fourth quarter 2021 earnings call. At this time, all participants are in listen, only 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. Welcome to the Lyft earnings call for the quarter ended December 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, Elaine Paul. 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, you will be making four 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. We may 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-Q for the third quarter of 2021, filed on November 4th, 2021, and our Form 10-K for the full year of 2021 that will be filed by March 1st, 2022, as well as the current uncertainty and unpredictability and economy. We 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 will disprove 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 is 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 Lyft's co-founder and chief executive officer, Logan Green. Logan?

Thanks, Sonia. Good afternoon, everyone, and thank you for joining our call. 2021 was a big year for Lyft. The operating environment improved as people got vaccinated and communities reopened. As a business, we strengthened our financial position and continued investing in growth initiatives. We also expanded our industry-leading autonomous vehicle partnerships and set ourselves up to win that long-term transition. I'm proud of the team for what we've accomplished together, and I'm excited to build on that momentum. Let me take a moment to welcome our new CFO, Elaine Paul. We're thrilled that Elaine has joined our leadership team. Her expertise building best-in-class disruptive businesses is essential as we enter our next phase of growth. Elaine has already had a big impact in her first month. She's brought incredible energy to the team. She's diving deep on the details, and she's identifying opportunities to build more scalable systems and processes. Elaine will review our financial results and share our outlook shortly. Brian Roberts remains an advisor to Lyft until June. Brian's contributions over seven years here have been exceptional. He helped build our business and the industry. We're grateful to Brian for his leadership and wish him continued success. Turning to Q4, we had a solid quarter and ended 2021 in a stronger position. Rideshare rides in the fourth quarter reached a new COVID record, and we achieved revenue growth of 70% year over year. Revenue per active rider, contribution margin, and adjusted EBITDA reached new highs, supported by supply improvements and ride growth. For the full year, we grew revenues by 36% versus 2020, and we were adjusted to be a bit more profitable on an annual basis for the first time, another key milestone for our business. Supply growth led to better service levels in our marketplace. Total active drivers in the fourth quarter grew by 34% versus Q4 last year, and drivers continued giving more rides on average than they did in 2019. New driver activations were also strong, up nearly 50% year over year. And between Q2 and Q4 of 2021, ride ETAs improved by roughly 30% across all of the markets we operate in. We'll continue working hard to deliver the best possible experience for riders and drivers. Let me talk about Q1. In January, the Omicron variant had a significant impact on ride volumes. The rapid surge in infections was correlated with reduced demand for rideshare. However, since the spike in the U.S. has now peaked, we expect demand will begin to recover. In fact, in the last week of January, we saw a pickup in rideshare rides that we see as a positive signal. Ultimately, given the expected impact of Omicron on Q1 and the unknown shape of the recovery, which could carry into Q2, our near-term revenue growth acceleration will likely be affected. On our last earnings call, we said that we expected revenue growth for full year 2022 to accelerate versus 2021. We're cautiously optimistic that this will continue to be the case. The demand rebound is a matter of when, not if. We're getting better and better at managing these temporary COVID-related spikes, and this time around, driver's supply has remained healthy. So when we come out of this period, we expect to be very well positioned. Now let me turn the call over to Elaine.