Lyft, Inc.

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. Sonia, you may begin.

Thank you. Welcome to the Lyft earnings call for the fourth quarter and full year 2023. On the call today, we have our CEO, David Risher, and our CFO, Aaron Brewer. Our president, Kristen Sverchak, 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 can 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. And good afternoon, everyone. Thank you for joining us. I am really proud of what Lyft accomplished in 2023. We supported more than 700 million rides and gross bookings reached an all-time high. Ride growth accelerated every quarter, ending the year up 26% in Q4 versus last year. More than 1 million drivers collectively earned over $8 billion using Lyft, We also had the highest annual ridership in our company's history and ride frequency growth was the strongest it's been since 2018 prior to our IPO. Our team came together with a vision for how customer obsession can drive profitable growth. We set clear goals and then we achieved them. So we're entering the new year with a lot of momentum. We're competing and executing really well and we're giving drivers and riders great reasons to choose Lyft every day. Again, our thesis is that customer obsession drives profitable growth, and we're keeping our foot on the pedal to prove it this year. To that end, we have three focus areas for 2024, and here they are. Continuous innovation, rideshare perfection, and partnership-driven growth. I'm going to walk through each of these and share a few examples that demonstrate how we're going about each. First, continuous innovation. One enormous advantage we have at Lyft is our focus on rideshare and on specifically creating the absolute best rideshare experience. Continuous innovation gives riders and drivers differentiated reasons to choose Lyft and increases their preference for using Lyft over our competitor. Women Plus Connect is one great example. Since the launch back in September, roughly two-thirds of eligible drivers and millions of active riders are using the feature, and their feedback has been outstanding. Women Plus Connect resonates with a lot of people. In fact, we have seen double-digit increases in driver referrals in markets where that feature has gone live. That's a great sign of strong product market fit. I'll also point out we're the only rideshare company that offers this feature in the U.S. So if you're a woman or if you have a woman in your life who prefers to ride or drive with another woman, download the lift app. We're the only game in town. And some news. We're thrilled to announce that as of today, Women Plus Connect is now available in every market across the United States. Over 295 cities, including Atlanta, Boston, Chicago, D.C., L.A., and of course, New York City. In fact, if you're in New York and out of the snow, Check out our billboard in Times Square if you can. Huge thank you to Christina Aguilera for being such a great advocate. Another great example of how we're innovating is our new pay standard for drivers. We have made a commitment that Lyft drivers will earn at least 70% of rider payments each week after external fees. Most Lyft riders earn more than that already, but there are instances where that's not the case. The rideshare industry talks a lot about driver earnings often in terms of averages, but with averages, some people walk away unhappy. That's why we've designed this as a guaranteed floor. Our intention is to set a standard for transparency, raise the earnings bar for our sector, and further increase drivers' preference for Lyft. In turn, that reduces prime time, which riders strongly dislike, it shortens ETAs, and results in higher rider preference and usage of Lyft. That's what continuous innovation looks like. Our second focus area relates to the way we execute, what we call rideshare perfection. You've heard us talk a lot about customer recession. Drivers and riders have very high standards. So we put an enormous amount of effort into perfecting the rideshare experience, and we'll do even more in 2024. Let me give you an example of this kind of perfection and how it drives our business. In mid-November, we launched our on-time pickup promise as part of our scheduled ride product. The idea was simple but ambitious. If your ride to the airport didn't arrive within 10 minutes of your scheduled pickup time, we would pay you up to $100, no questions asked. When we launched this product, we set an extraordinary, almost unreasonably high expectation, or excuse me, standard for ourselves to deliver. So high that we were even willing to cover the cost of a competitor's ride if we failed to deliver. The results have been remarkable. Of the more than half a million rides that have fallen directly under this guarantee, we have had to cover just 2% at a cost of less than 0.01% of gross bookings. Helped by this guarantee, scheduled rides to the airport grew 37% year-on-year during Thanksgiving week. And remember that remediation statistic of 2%? Over half of those riders took another lift ride in the following 30 days. Outcomes like these, particularly at our scale, are a testament to the level of operational excellence we are capable of and what the growth impact can be. The rideshare perfection is central to our plans to drive profitable growth in 2024 and beyond. Finally, partnership-driven growth. Last year, approximately 20% of our rides had a direct connection to one of our partners. Lyft's ability to partner in mutually beneficial ways with other organizations is an underappreciated superpower that can unlock long-lasting new revenue streams and often with very attractive margins. This becomes clear when you look at the relationships we've established and how they've expanded over time. For instance, our Delta Airlines partnership began with riders' rewards, where you can get points. But we now also support their flight crews with our lift-pass commute solutions. Universal Pictures bought media on our platform in Q4 to support the launch of Trolls 3, and now they're coming back to do even more in 2024. Our list of deep partnerships goes on and on and includes world-class brands like Starbucks, Disney, Amazon, Apple, and we've seen similar expansion across all of those. Partnering is rarely easy, but we've proven that we can be world-class at it. The work we're doing in each of these focus areas I just outlined, continuous innovation, ride-share perfection, and partnership-driven growth, will underpin our top-line growth and margin expansion in 2024 and set the stage for strong financial performance beyond. Now, before I turn the call over to Aaron, we have two important pieces of news to share. The first is we're hosting our first Investor Day in early June. It's going to be a great opportunity to see the incredible work we're doing and the amazing team behind it. And second, as lead into that event, we are providing directional commentary for our four-year performance this year. The headline is that in 2024, we expect Lyft to generate positive free cash flow on a four-year basis for the first time in our company's history. It's a huge milestone for us. I am very proud of all Lyft has achieved in 2023 and the first few weeks of 2024. As I said at the beginning, this will be the year we prove customer obsession leads to profitable growth. Over to you, Erin.