Lyft, Inc.

Good afternoon and welcome to the LIST first quarter 2022 earnings call. At this time, all participants are in a 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 start and zero on the 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 March 31st, 2022. 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.lift.com shortly after this call has ended. I'd like to take this opportunity to remind you that during the call, we will 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. 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-K-A for full year 2021, filed on April 29, 2022, and in our Form 10-Q for the first quarter of 2022, that will be filed by May 10, 2022, 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 declaims 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 8-K filed today with the SEC. It may also be found on our investor relations website. I would now like to turn the conference call over to Lyft co-founder and chief executive officer, Logan Green. Logan.

Thanks, Sonia. Good afternoon, everyone, and thank you for joining our call. I'm incredibly proud that Lyft will celebrate our 10th anniversary this month. Looking back, the first decade can be divided into two chapters. In chapter one, we overcame the odds and pioneered the industry, being the first to launch and scale peer-to-peer rideshare. create a new regulatory category, and establish shared rides. In Chapter 2, we made our business profitable on an adjusted EBITDA basis during a global pandemic. We were the first in our industry to achieve this important milestone, and we did it earlier than we initially anticipated. Now we're turning the page to our most exciting chapter yet. In Chapter 3, we plan to scale Lyft into the most impactful modern transportation network, which John will talk about more. Our mission continues to serve as our North Star. We want to improve people's lives with the world's best transportation. We have a lot of work in front of us, and I'm incredibly excited about our roadmap to build Lyft into a much larger company. Turning to Q1, our results exceeded our outlook. January ride volumes were soft due to Omicron, but demand rebounded sharply in February and March. Average daily rideshare rides were up 20% in February versus January and grew further in March. Given the strong recovery, rideshare rides for the first quarter reached a new COVID high. And our marketplace has been getting healthier. Total active drivers in Q1 were up by more than 40% year over year. And new driver activations were up 70% versus Q1 last year. Consistent with what we saw last year, drivers in Q1 gave more rides on average than they did in 2019. and average ride ETAs in Q1 were 30% better on average than in the first quarter of last year. Even as gas prices increased in March, average driver earnings were up year over year. Our analysis shows that in March, drivers nationally spent an average of 61 cents more on gas per hour than they did in March of last year. Net of this increase, drivers using Lyft earned more than $24 per hour on average, including tips and bonuses. To be clear, this is for all online time, which includes time drivers may have been doing other things, including earning on other app-based platforms. And we ended March with more active drivers than we had at the end of January. We're continuing to keep a close eye on gas prices and have taken steps to help offset these costs. We instituted a $0.55 per ride fuel surcharge in most markets at the end of Q1. I want to be clear, the average hourly earnings figure I just discussed excludes any benefit from this fuel surcharge, which didn't go into effect until March 21st. In addition, drivers who use the Lyft Direct debit card are able to get up to 5% cash back on gas through the end of June. And our partnership with Upside gives driver discounts on gas with the highest savings available to top Lyft drivers. Now let me talk about Q2. Even as our marketplace has been getting healthier, we want to continue improving service levels in preparation for further growth. So we expect to invest strategically in order to deliver the best possible experience for Lyft users. We believe more demand is ahead of us, particularly in the second half of this year. Keep in mind our Q1 rideshare ride volumes, which hit a new COVID high. We're still only around 70% recovered versus the Q4 2019 level. And we see significant runway in key markets like San Francisco, which was less than 50% recovered in Q1 versus Q4 of 2019. The continued return of shared rides and more use cases as we progress through the year is also expected to help drive demand. We remain cautiously optimistic that revenue growth for full year 2022 will accelerate versus 2021. Now, let me turn the call over to Elaine.