Lyft Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Douglas Anmuth - J.P. Morgan Securities LLC - Analyst : Thanks for taking the questions. I have two: one for David, one for Erin. David, you just told me you could talk about the benefits that you're seeing of less prime time and surge on the platform and just how that's showing up in terms of ride volume via frequency and retention. I know you mentioned higher conversion, just wondering if there's any way you can quantify the benefits there. And then, Erin, can you talk about the $650 million in free cash flow in '24? I just want to make sure that we understand the drivers of the significantly higher outlook. Is that all a function of more shift to 1P and captive? And then how do we think about that trend in '25 sustainability? Thanks.

Question: Douglas Anmuth - J.P. Morgan Securities LLC - Analyst : Great, thank you, both.

Question: Eric Sheridan - Goldman Sachs & Company, Inc. - Analyst : Thanks so much for taking the question, really just a two-parter. When you think about some of these new partnerships you're announcing with DoorDash and on the supply side with autonomous vehicle companies, I think, for DoorDash, how should we think about that driving demand on the rider and ride side in terms of an underlying assumption of what that might contribute to incremental growth? And in terms of autonomous, maybe just refresh us on your view about how adding autonomous supply and partnering across the autonomous vehicle industry landscape might alter some of what you see in terms of the growth prospects and the margin prospects going forward. Thanks so much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2024 / 10:00PM, LYFT.OQ - Q3 2024 Lyft Inc Earnings Call

Question: Eric Sheridan - Goldman Sachs & Company, Inc. - Analyst : Thank you so much.

Question: Brian Nowak - Morgan Stanley & Co. LLC - Analyst : Thanks for taking my questions. I have two. The first one on price lock, it's a good early signal on adoption and frequency bump. I just wanted to ask you about -- can you walk us through sort of the go-to-market strategy you're using on this? Is it available across all markets? Are you rolling it market by market? Are you targeting sort of certain types of users and sort of rolling it that way? Just, how do we think about kind of the strategic rollout of that business across the corpus of users is the first one. And then the second one, just on autonomous, there's a decent amount of discussion about sort of San Francisco and Waymo, et cetera. So anything you can tell us about sort of San Francisco trends and sort of what you've seen on San Francisco volumes over the last, call it, twelve through six months. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2024 / 10:00PM, LYFT.OQ - Q3 2024 Lyft Inc Earnings Call

Question: Brian Nowak - Morgan Stanley & Co. LLC - Analyst : Great, thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2024 / 10:00PM, LYFT.OQ - Q3 2024 Lyft Inc Earnings Call

Question: Kenneth Gawrelski - Wells Fargo Securities, LLC - Analyst : Thanks so much, two, if I may. First, one more detailed one on insurance, thank you for the guidance on the $50 million quarter over quarter on the cost of revenue side. I just want to get a sense, are there any other differences in the cost of revenue line that we should be thinking about 3Q to 4Q other than the routine stuff and the insurance? That's the first question. And the second one is more broad on -- as you think about next year in the domestic rideshare market, how do you think about pricing? And specifically, what I'm thinking about is, you've got prime time likely continue to come down, and you've talked about battling against the prime time surge pricing. And then, you also have rider incentives and think about things like price lock. How -- should we think about any or any upside you get from the decreases in kind of prime time be offset by other initiatives or how should we think about just overall your pricing strategy looking into next year? Thank you.

Question: Kenneth Gawrelski - Wells Fargo Securities, LLC - Analyst : Thank you so much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2024 / 10:00PM, LYFT.OQ - Q3 2024 Lyft Inc Earnings Call

Question: Benjamin Black - Deutsche Bank Securities Inc. - Analyst : Great, so thank you for taking the question. So, Erin, I guess, contra revenue and consumer incentive, they were down 17% year on year. Can you just help us understand what the drivers of the outperformance were and how should those trend as we look ahead? And then, I guess it's either David or Erin, but could you just touch on the returns you are seeing on your consumer incentive investments? Are you generally seeing growing competition for active riders in the US and Canada? And how should we think about the durability of the current active rider growth? Thank you.

Question: Shweta Khajuria - Wolfe Research, LLC - Analyst : Thank you for taking my question. Could you please talk about consumer sentiment in the quarter? There have been some mixed data points, but anything on resiliency of consumer spend and what specifically are you seeing in terms of maybe some of the drivers? And then the second question is just thoughts on your take rate and revenue margin in the near to midterm as you think about its trajectory, at least especially getting -- going into next year? Thanks a ton. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2024 / 10:00PM, LYFT.OQ - Q3 2024 Lyft Inc Earnings Call

Question: Shweta Khajuria - Wolfe Research, LLC - Analyst : Yes, thank you very much.

Question: John Blackledge - - Analyst : Great, thanks, two questions. Any further color on how the Canada business performed in the third quarter and then discuss the continued expansion in Canada? And then secondly, on Lyft Media, if you can give maybe some color on the revenue run rate trend in 3Q? And I think Erin mentioned investing in ad tech. Any color there would be helpful. Thank you.

Question: John Blackledge - - Analyst : Thank you.

Question: Stephen Ju - UBS Securities LLC - Analyst : Okay, great. Thank you so much. Soc David, I think the default thought process right now is that Lyft will be an asset-light partner for the fleet owners of AVs. But should we be thinking about you potentially taking more direct role either in fleet maintenance or management? Does that come up in discussions with potential new partners at all? And second, as the active rider base gets larger, I mean, I would imagine that growth will decelerate given the law of large numbers. So in order to get to the longer-term booking targets, you need to drive frequency higher as an offset. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2024 / 10:00PM, LYFT.OQ - Q3 2024 Lyft Inc Earnings Call So can you talk about what your latest data is telling you about cohort behavior? Maybe how is your riders age? The activity picks up meaningfully so that the average usage right now is about three per month, but the gap between the newer cohorts versus older cohorts, any sort of color you can provide there in terms of the overall level of activity as you customers become more used to using you? Thank you.

Question: Stephen Ju - UBS Securities LLC - Analyst : User growth versus frequency growth.

Question: Stephen Ju - UBS Securities LLC - Analyst : Thank you.