Lyft, Inc.

FP&A, and investor relations. You may begin.

Thank you. Welcome to the LEFT earnings call for the second quarter of 2024. On the call today, we have our CEO, David Reischer, and our CFO, Erin Brewer. We'll make forward-looking statements on today's call relating to our business strategy and performance, future financial results, and guidance. The statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implying 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. Additionally, Today, we are going to discuss customers. For ride share, there are two customers in every car. The driver is the least customer, and the rider is the driver's customer. We care about both. Our discussion today will also include non-GAAP financial measures, which are not a substitute for 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.

Thank you, Aurelien. Good morning, everyone, and let's jump right into it. Lyft's strong results in the second quarter continue to validate our long-term strategy. Customer obsession drives profitable growth. To start, in Q2, Lyft reached GAAP profitability for the first time in our company's history. This is a testament to our team members and their hard work every day obsessing over our riders and drivers and operating with discipline and excellence. It's an important milestone and another step along the path we laid out to you earlier this year. Aaron will share our financial results in more detail shortly. Turning now to our customers, driver and rider engagement hit all time highs in Q2. Q2 saw the most new drivers in any quarter since 2019 on the platform, including 34% more women and non-binary drivers compared to Q2 last year, thanks to Women Plus Connect. Our 70% driver earnings commitment launched nationwide, and in those launch regions, we saw a meaningful increase in driver perception of pay fairness from the prior quarter, a leading indicator of driver preference. This quarter, driver hours hit an all-time high, showing our forward progress with the number of drivers and the time they choose to spend on Lyft. In related news, two weeks ago, the California Supreme Court unanimously upheld Prop 22, protecting the independence that drivers value. Drivers also had huge wins in Minnesota and Massachusetts that secure their freedom to earn when, where, and however they want. Drivers rely on Lyft for available and flexible earnings opportunities. Gig work like driving helps people live their lives on their terms, and that's why it's here to stay. Now, when it comes to riders, in Q2, we had a record 23.7 million quarterly active riders, up over 10% year-on-year. At the same time, ride-intense conversion increased and ride frequency kept growing, thanks in part to the fastest pickup time we've had in four years. We also had record rides in Q2, including the most scheduled rides in the company's history. And we saw record bike and scooter rides, especially e-bike rides in our largest market, New York City. Rides on our best-in-class e-bikes now represent over half of all bike and scooter rides this year. So to state it simply, our focus on customer obsession and operational excellence have led to more riders choosing Lyft than ever, and they're riding more often. Before moving on, I want to give you a closer look at part of the rider experience and how we're working to radically improve it. It's what's known as prime time or surge pricing in the industry. Many of you have probably experienced it at one time or another, and I'm willing to bet you didn't care for it one bit. It's probably Rideshare's most hated feature. Well, thanks to an enormous effort on the part of our team building on the great momentum we've seen with drivers, the number of rides impacted by prime time has decreased dramatically. In Q2, the average prime time amount included on each ride declined by 25% versus the first quarter. And that contributes to better conversion rates. In fact, the markets where we saw the sharpest declines in prime time in Q2, like Phoenix, Baltimore, and Orlando, are the markets where conversion rates are improving the most. So we are going to do something a little crazy. We are going to open up a can of whoop-ass on prime time. We are starting with innovations focused on those who use this every day, commuters. Reliable pricing is particularly important to them because they know what their ride should cost and hate it when prices change. For those riders, we are piloting a new feature called PriceLock, letting a rider purchase a monthly subscription that caps the price for a specific route at a specific time. Primetime won't ever completely go away. It's an important way to match supply and demand when demand spikes quickly. But with innovations like PriceLock, We can chip away at how often it occurs and hopefully take what I'm willing to bet is, again, Rideshare's least liked, most hated feature and turn it into a reason to choose Lyft. Next, I want to switch gears and touch on Lyft Media, which continues to perform well with revenue up more than 70% compared to a year ago. In Q2, we signed deals with 44 new brands, including T-Mobile and Activision, and re-signed several more, including Amazon, Fidelity, and NBC Universal. Our in-app video ads continue to drive interest from brands to power this growth. Case in point, our in-app media revenue grew more than 10 times year on year. For all our partners, measuring return on ad spend is critical when they sign and re-sign. And consistent with our roadmap, we're continuing to roll out these capabilities for our in-app video ads. This quarter, we've begun working with three major partners, including Google Campaign Manager, and next quarter we'll integrate even more. We have a leading team and are building the right tools to scale this business. Finally, given recent chatter about autonomous vehicles, I want to spend a few minutes outlining how we think of them. In short, AVs represent an enormous opportunity for Lyft. We believe that the best way for autonomous vehicles to commercialize at real scale and the best way to monetize this technology is through networks where the vehicles can be put to use. Lyft has that network today. To understand why we're so bullish on ABs, you have to remember that a rideshare network is far more than the app you see. On the demand side, Lyft's platform gives access to 40 million riders each year in the US and Canada. And on the supply side, it includes a vast set of capabilities in onboarding individually owned vehicles to our platform, making sure every vehicle and ride are properly insured, and offering customer service when things go wrong at scale. And when it comes to fleet management, our FlexDrive subsidiary has given us deep expertise in the easy onboarding, offboarding, and servicing of tens of thousands of fleet vehicles over the years. All this is why, in markets like Las Vegas, we've been able to facilitate over 130,000 AV rides so far, and we are just getting started. Bottom line, our aim is to be the easiest and best way for partners to commercialize ABs. Doing so will help us grow ever faster as ABs come online in the years ahead. Okay, back to 2024. We remain on track for the rest of the year as we continue working towards a long-term healthy business. Q3 is the heart of summer travel season and the start of back to school and back to work, which means good things for the Pricelot commute customers I just mentioned. Aaron will share more on what we expect in the back half of the year in just a second. At Investor Day, we said our next phase of growth is here, and the opportunity we see is great. We are thrilled to have achieved GAAP profitability this quarter, and so I want to close by reiterating our long-term foundational thesis. Customer obsession drives profitable growth. I'm pleased with the progress we've shown and confident in the road ahead. Over to you, Aaron.