Lyft, Inc.

Banerjee, Head of Investor Relations. You may begin.

Thank you. Welcome to the Lyft earnings call for the second quarter of 2023. On the call today, we have our CEO, David Risher, and our CFO, Aaron Brewer. In addition, Kristen Sperchuk, our President, is here for the Q&A session. We'll make forward-looking statements on today's call relating to our business strategy and performance, future financial results, and guidance. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call. These factors and risks are described in our earnings materials and our recent SEC filings. All of the forward-looking statements that we make on today's call are based on our beliefs as of today, and we disclaim any obligation to update any forward-looking statements except as required by law. Our discussion will include non-GAAP financial measures. which are not a substitute for our GAAP results. Reconciliations of our historical GAAP to non-GAAP results may be found in our earnings materials, which are available on our IR website. And with that, I'll pass the call to David.

Thanks, Sonia. Good afternoon, everyone, and thanks for joining us. To start, I want to take a moment to introduce Aaron Brewer, who joined us as CFO in July. Erin is a skilled finance professional and brings an incredible one, two, three punch of strong technical abilities, excellent business judgment, and great leadership. She's also a valuable thought partner. She knows how to drive growth and operate efficiently at scale, and she's an amazing leader to her finance team. She and I are completely in sync on the opportunities ahead, and I'm thrilled to be working with Erin to build a rider and driver-obsessed, durable, and profitable business. Erin, it's great to have you here. Now we're going to talk about what we've been up to and what's next. First, our customer obsession and focus on strong execution is really paying off. The effects can be seen in our Q2 performance. Rideshare rides grew 18% year-on-year, accelerating for the second quarter in a row, and standard rides reached the second highest level in our history. Active rider and drivers each reached multi-year highs. resulting in an improved balance in our marketplace. So relative to Q1, the share of rides affected by prime time pricing dropped by 35%, and a larger percentage of ride intents converted into rides taken. With more people getting out to work and travel, the market is growing. And with the strength of our actions, they're increasingly choosing Lyft. Second, we're doubling down on innovating for riders and drivers. We're already seeing the results of our April reorganization with flatter teams communicating more effectively and making decisions more quickly. At the same time, we've opened up more channels of communication so we can hear directly from customers. Through driver roundtable discussions, surveys, and our various public inboxes, including my own, we've been getting a lot of information about what we've been doing well and where we can still improve. And we're acting on what we're learning. I have been so energized by how quickly changes to our products can translate to better customer experiences. I actually want to go deep on this for a second. In June, we addressed some of the driver's top requests and pain points with the driver app with a release that gives them more control over where and how they learn. So here are two examples. First, we made our proprietary stay within area filter more precise so drivers can pinpoint where they want to drive and flex the area for pickups and drop-offs to within a five-mile radius. This is absolutely huge. It means the drivers can stay within their own neighborhood if they want and not end up super far away at the end of the day. This update resulted in a 26% increase in the number of drivers who use the feature, in addition to an increase in driver hours and weekly retention rates. I actually use the feature myself when driving for Lyft, to make sure I got home in time for dinner with my wife, and it's a total game changer. The second thing we did is we upgraded our ride challenge bonus program to give riders even more choice. So now, instead of being offered a specific challenge, drivers can choose from a menu of options and choose the challenge that works best for them. It might be long rides or short rides. It might be working on weekends or weekdays. Drivers' feedback on the launch has been really positive. with more than half of drivers saying these changes have made their overall experience using Lyft better. So these kinds of updates have an enormous impact on driver satisfaction and preference, and that's really important to understand. Among drivers who use both Lyft and Uber, we have seen a 25% increase in preference for Lyft since Q4 of last year. And in Q2, the number of drivers using Lyft grew by more than 20% compared to Q2 last year, and driver hours increased even faster, up by more than 35%. We'll closely monitor driver preference because we want to see it keep growing. Over on the rider side, we continue to see growth, and in particular with Wait and Save, which is our most affordable ride share option. So Wait and Save offers riders a way to save money when they aren't in a big hurry. This lets riders price shop within our app instead of going to the other guy. In Q2, wait and save trips grew by more than 40% year on year and reached new all-time records, far exceeding where our shared ride volumes ever got. And just to give you a specific data point that gives you a sense of how large this is, in New York City alone, we averaged more than 150,000 wait and save rides per week in Q2. So you can expect us to continue innovating for our riders and our drivers, which creates an increasingly differentiated experience over time. Customers are reacting positively to what we're doing, and there's a lot more to come. Finally, we're building on our strong brand recognition, reminding the world that Lyft is a great rideshare choice. So most people already know our company, and I feel this all the time when I introduce myself. Our awareness levels are super high. Surveys tell us that over 70% of U.S. adults ages 18 to 65 are familiar with Lyft. So now, as we approach the back to school season and the back to work season, which I'm sure we're all reading about, riders tend to change their habits. So this is exactly the moment for us to remind everyone to consider using Lyft, particularly those who haven't used us or considered us in a while. And in the coming months, we'll be teaming up with other well-known brands as a way to raise awareness even further. Stay tuned for that. So in summary, you all, we are executing well on our strategy of being customer obsessed And the results suggest this strategy is working. Riders and drivers want and value choice. It's in everyone's best interest for there to be two strong players competing for their business. By obsessing over our customers, we can continue to differentiate ourselves and grow this market. And we have an incredible team that's focused on these objectives. Much more to come on all that in the coming months and quarters. Now I want to turn it over to Aaron.