Lyft, Inc.

Good afternoon and welcome to the Lyft third quarter 2024 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 you should require operator assistance, please press star then zero on your test drone phone. And as a reminder, this conference call is being recorded. I would now like to turn the conference over to Al Rioran, North, Vice President, FP&A, and Investor Relations. You may begin.

Thank you. Welcome to the LEAST earnings call for the third quarter of 2024. On the call today, we have our CEO, David Risher, and our CFO, Erin Brewer. We'll make forward-looking statements on today's call relating to our business strategy and performance, partnerships, future financial results, and guidance. These statements are subject to risk 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. Additionally, today we are going to discuss customers. For ride share, there are two customers in every car. The driver is the lift 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 gap to non-gap 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 afternoon, and thanks for joining us. Once again, our team executed on all parts of our strategic plan, resulting in a spectacular third quarter with progress on what matters most to riders and drivers, more than 2 million times a day. Aaron will get into the details about our performance this quarter, but a driver from North Carolina put it well when they called Lyft superior to the other guys because of better transparency and overall better pay-per-ride. As we outlined at our investor day, our customer obsession engine was fueled by several product innovations, progress with Lyft Media, and some big partnership announcements. First, we said we would differentiate with product innovation. Our strategy is simple but effective, obsess over our customers. That's what we did for commuters when we introduced Pricelock. Commute rides make up nearly half of rides Monday to Friday, so it's no wonder Pricelock is performing beyond our expectations. By the end of September, we already had more than 200,000 active passes, and this number keeps growing. We see that Pricelock riders take on average four more rides per month than they previously did before purchasing the pass. Not only is Pricelock helping commuters, but also drivers by creating more predictability on when and where to drive. It's a win-win. We're pleased with how Pricelock is performing and we're taking feedback from early users to further enhance the product. Related to this, we're always thinking about and providing more value to our riders. So here's an update on that can of whoop-ass I mentioned last time on prime time, which is our term for surge pricing. Prime time continues to decrease and is now down more than 40% year over year and 20% quarter on quarter on a per ride basis. In the regions where prime time declines fast, conversion goes up along with rides and market share. Chicago is a great example where we saw prime time decline very fast in Q3, resulting in conversion improvements ride growth acceleration, and share gains. I've said before that our strategy was to take Rideshare's most hated feature and turn it into a reason to choose Lyft, and again this quarter, we're seeing the proof that that's the right strategy. More recently, we launched a new set of improvements for drivers to better ensure that every ride and every minute they spend on the road is worthwhile. Imagine driving with Lyft and you accept a ride for a given amount of pay, but you end up sitting in unexpected traffic. The ride takes longer, And on an hourly basis, you earn less than you expected. Not a great experience. So we addressed it. Now drivers can count on their earnings being increased any time a ride takes five minutes longer than estimated. Drivers now also see the estimated dollar per hour rate for every ride on the Accept screen to help them decide if a ride is worth their time. And if you drive an EV, you can choose to only match with rides that fall within your battery range, a really important change that takes care of range anxiety. All told, just this year, we've launched 33 new products and features, a true testament to our team listening to drivers and riders and delivering on the innovations they want. As a result, we're seeing all-time highs across both driver and rider metrics. Drivers are spending more time with Lyft than they ever have, as driver hours in Q3 reached yet another all-time high. According to interviews, driver preference for Lyft is now 12 percentage points higher. than our main competitor. At Investor Day back in June, we said we expect driver hour growth in line with business growth, and right now we're ahead of that target. On the rider side, we see the same. Active riders hit an all-time high, growing at a pace ahead of the long-term target we shared at our Investor Day. We had record rides again this quarter, with commute rides surpassing their all-time highs from 2019. Ride frequency, the average number of rides taken by each active rider, increased for the seventh consecutive quarter. It is also in line with our long-term target. Riders are taking more bike and scooter rides, too. Our bikes and scooters mode had strong performance in Q3, breaking another record in quarterly rides. Bottom line, Lyft is still growing. Up next is more expansion in Canada, where right now we're onboarding drivers in Winnipeg. At this point, roughly 12% of all Canadians have taken a ride with Lyft, and we look forward to riders in Winnipeg joining us soon. So now onto Lyft Media. We've been building Lyft Media into a highly performant platform, and we continue to improve it for our ad partners. Last month, we expanded how we measure campaign performance. Brands like Foursquare are now helping us measure foot traffic to brick and mortar stores. NC Solutions provides insights on brand loyalty for consumer packaged goods companies. And Coachava is measuring digital outcomes like app installs and purchases. Overall, Lyft Media continues to gain great traction with in-app ads growing nearly 3x year over year in Q3. Now I want to take a look at two partnership-focused initiatives that will help strengthen this position going forward. We are very proud of the best of what we do in Rideshare. We are the pure play in on-demand mobility, and that allows us to be 100% focused on getting it right for drivers and riders every time. As we said at Investor Day, that approach includes deeply partnering with other companies for the best of what they do. For food delivery, that's DoorDash. DashPass has millions of subscribers and with last week's partnership announcement, we're giving every one of them a reason to prefer Lyft. So I encourage each and every one of you to link your accounts immediately so you can save the next time you go out with friends and then on that late night snack when you get home. Second, Today, we announced our next step in helping bring autonomous vehicles to millions of people. And again, we're doing that in partnership, beginning with Mobileye, Nexar, and May Mobility. Let me talk about each of these briefly. With Mobileye, our partnership makes our rideshare platform available to all vehicles with Mobileye Drive Level 4 self-driving technology. These vehicles will be lift-ready, giving small and large fleet operators seamless access to Lyft's platform network of riders. With Nexar, our partnership combines Lyft's vast network with Nexar's intelligent video telematics with the goal of accelerating how AVs learn. And finally, we're very excited to partner with May Mobility to make their autonomous vehicles available to Lyft riders in Atlanta next year. Each of these partnerships plays a different role, but collectively, They helped Lyft become the best option for AV stakeholders and asset holders to go to market. At Lyft, we envision a robust future that brings together human drivers and autonomous vehicles in an always-on transportation network. Adding AVs is a huge opportunity, and we look forward to partnering with even more leaders in the industry to shape this future. Stay tuned, because this is just the beginning. Before I finish up, I want to share something with you that is foundational the way we lead our company. And that's our purpose. The team at Lyft has always been passionate about having an impact. It's often cited as a reason people love our brand and why people choose us. It's one of the reasons I came here, too. And it's good for business in ways beyond brand love. Research shows that purpose-driven organizations have returns that significantly outperform the S&P 500. Lyft's purpose is to serve Let me say that again because it's new. Our purpose is to serve and connect. On service, we want to reset the bar, serving drivers and riders better than they have ever experienced before. And on connection, in an increasingly virtual, physically disconnected world, we're going to fight hard to keep bringing people together in person. Lyft is moving ahead. Quarter after quarter, we're winning drivers and riders over with our service. As a result, people are choosing rideshare more, and when they choose rideshare, they're increasingly choosing Lyft. Sure, we're competing against the other guy and are more than holding our own, but increasingly, you'll find that we're playing a different game. We're competing with your car, even with your couch. Every day, over 2 million times, we serve and connect, and I hope you see how early we are in that journey and just how important that purpose is. Over to you, Erin.