Lyft, Inc.

earnings call. At this time, all participants are in 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 star then zero on your touch-tone telephone. As a reminder, this conference call is being recorded. I would now like to turn the call over to Auro Lionel, Vice President, FP&A, and Investor Relations. You may begin.

Thank you. Welcome to the Lyft earnings call for the fourth quarter and full year of 2024. On the call today, we have our CEO, David Reicher, 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 and operating results, trends in our marketplace, 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. Additionally, Today, we are going to discuss customers. For ride share, there are two customers in every car. The driver is this 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. Lastly, the team will be in Boston, San Francisco, New York, and Toronto over the next few weeks. So please do reach out to me if you would like to connect with us. And with that, I'll pass the call to David.

Thank you, Aurelien. Good afternoon, everyone, and thank you for joining us. 2024 was an incredible year of reinvention and industry leadership for Lyft. We are executing spectacularly, and we're in our strongest position ever. I am super proud to share that we've reached all-time highs in rides, in riders, in driver hours, and even made our service levels industry-leading. As a consequence, our market share at the end of January this year was the highest it's been since 2022, and our financial results are the best ever. It all goes to prove our thesis, customer obsession has driven profitable growth. Drivers are choosing Lyft at record rates, In Q4, we had the highest number of driver hours in any quarter in Lyft history. This was thanks in part due to improved driver retention and improvements to their earnings. Drivers collectively earned nearly $9 billion in 2024, the highest amount of combined driver earnings on our platform ever, and benefited from innovations like our 70% earnings commitment. In Q4, we also had a record number of active riders. In a huge win, A series of technical breakthroughs from our marketplace team meant that in Q4, on average, riders were picked up almost one minute faster than the year before. And our average ETAs became the fastest in the industry. I want to repeat that. From what we can see, Lyft's average ETA in Q4 were faster than both our big legacy competitor and newer entrants. That's a massive accomplishment and underscores our commitment to offering the best service in the industry. Another rider win we're super proud of is our continued improvement in price reliability, thanks to reductions in surge pricing, which we call prime time or PT. As I hope you know, we brought PT down significantly in 2024. In fact, even faster than we'd planned, which is great for riders. Aside from much greater price stability, that translates into real savings. In total, riders saved more than $400 million in 2024 as a result of lower prime time. And we're not done. We look at primetime as a bug in the ride share system, so much so that last year we introduced price lock, a feature where riders can pay a small fee to lock in the price of their regular rides. Since launching last fall, we're seeing approximately 70% of price lock riders continue to purchase passes month after month. Many of them are high-frequency riders who are now loyal to Lyft thanks to this feature. And last week, we announced price lock around the clock and allowed riders to pause it whenever they want it. It just keeps getting better. Between launching and improving products like Pricelock and our stress-reducing on-time pickup promise, expanding our highly requested Women Plus Connect feature, which, by the way, has now supported over 50 million rides, and launching our driver earnings commitment, 2024 was the year of innovation like never before. This is customer obsession at work, and it's paying dividends. Go ahead and ask your Lyft driver. In a Q4 survey, driver preference for Lyft was 16 percentage points higher than our largest ride share competitor, up from 12 the prior quarter. Or look at rider frequency, the average number of rides someone takes with Lyft, and the gold standard for rider satisfaction. It's grown on a year-on-year basis every quarter in 2024. Exiting the year, we have the most high-frequency riders in five years. Looking at our financial performance, Aaron will get into the details, but our work in 2024 resulted in extraordinary milestones, including the first ever year of gap profitability and the first full year of positive free cash flow. All of this just in the initial year of our multi-year plan. When we obsess over customers, Lyft grows profitably. Simple as that. Now onto 2025. You've heard me say that our purpose is to serve and connect. and I want to talk more about what that will look like this year. Our goal is quite simply to set a new standard of service for the industry. For drivers, we're turning our attention to recognizing and rewarding the amazing service they provide riders. We'll have more to share on this soon, but it's going to be a further differentiator for us. And for riders, we want them to expect more from every journey, whether it's by feeling special in their extra comfort or black SUV ride, or by being rewarded in small but meaningful ways for their loyalty. And we'll continue to rely on great partnerships as a way to introduce and retain riders and unlock more value for them. Our DoorDash partnership is an example. As of Q4, we supported nearly 8 million DoorDash rides. This partnership also helped us reach quarterly all-time record number of scheduled rides, which tend to be longer and higher margin. So far, we are very pleased with the results we're seeing and are confident the impact of the partnership will keep growing in the quarters to come. At the same time, in 2025, we plan to continue to expand our margin in customer-obsessed ways. You'll see Lyft Media continue to grow thanks to the success we've had with our in-app ads. We've just made Map Takeover as a regular ad product. I hope you saw the latest one that's ran this past weekend with Samsung to promote their new Galaxy phones. Also, Lyft Media will soon have full-screen vertical screens a vertical video ad capabilities. That's a mouthful. Riders open the Lyft app millions of times each day, and we're making sure marketers can connect with them in authentic, valuable ways. Another customer obsessed way we're expanding margins in 2025 is by improving our higher end offerings. Lyft Black and Lyft SUV rides grew 41% year on year in 2024. This was the result of three deliberate actions aimed at changing our ride mix. First, we fine-tuned vehicle eligibility to ensure a consistent and more exclusive black car experience for riders. Second, we significantly increased supply by adding more black car drivers onto our platform. And finally, we launched this mode to many new markets across the US and Canada, making Lyft Black now available in 64 total markets with more on the way. We are thrilled to see how enthusiastically Lyft riders have responded to these improved offerings which carry higher prices and margins. It's a win-win-win. You'll hear more later this year, but your action item right now, listen up, is to schedule your Lyft Black SUV for Valentine's Day. Finally, in 2025, you'll see the Lyft platform expand to include autonomous vehicles. This will come to life with our partner, May Mobility in Atlanta, which is one of the only two players providing AB rides to the public today. Beyond that, yesterday we announced a partnership with Mauro Beni, They'll be the first to use Mobileye and other partners' Lyft-ready AV technology with the goal of deploying their fleet to thousands of vehicles on the Lyft platform over time, starting in Dallas as early as 2026 with other cities to follow. We're in advanced discussions with a number of other partners. The AV future will have many players across the value chain, including several emerging from behind the scenes. They're coming to Lyft for our unique combination of fleet management expertise derived through our FlexDrive subsidiary and access to our network of more than 44 million active riders, annual riders. I'll share more with you soon. As I've said before, AVs will be a transformational addition to the marketplace. The more AVs, the more rideshare market expands and the better Lyft does. Now, a closing message to all you Lyft team members who are out there and listening in. You have crushed it. In the past 12 months, you've dramatically improved service to riders and drivers to industry-leading levels. You introduced a crazy number of customer-obsessed products, and you've helped us reach all-time highs in riders, rides, and driver hours. And beyond that, when the devastating fires broke out in LA, you stepped up to provide over 20,000 ride codes for those in need, the highest ever for this kind of disaster. I appreciate every second and every ounce of energy you put into Lyft. We have never been in a stronger position, thanks to you, and we've got so much opportunity ahead. I can't wait for all we accomplish together in 2025. Over to you, Erin.