Lyft, Inc. Q3 FY2024 earnings call

• Product innovation: Price Lock for commuters with over 200,000 active passes, prime time down over 40% year-over-year and 20% quarter-over-quarter on a per ride basis. Driver hours and active riders hit all-time highs. - Lyft Media: Expanded campaign performance measurement with partners like Foursquare, NCSolutions, and Kochava, with in-app ads growing nearly 3x year-over-year in Q3. - Partnerships: DoorDash DashPass partnership to attract riders, and partnerships with Mobileye, Nexar, and May Mobility for autonomous vehicles to strengthen Lyft’s position.

For the third quarter, gross bookings for rideshare exceeded $4.1 billion, up 16% year-over-year. Revenue was over $1.5 billion, up 32% year-over-year. Lyft Media saw in-app ads grow nearly 3x year-over-year in Q3. Rideshare had active riders growth of 9% and frequency up 6%. Adjusted EBITDA in the third quarter was $107 million, which as a percentage of gross bookings was 2.6%.

For the fourth quarter of 2024, gross bookings growth is expected to be approximately 15% to 17% year-over-year, or approximately $4.28 billion to $4.35 billion. Adjusted EBITDA is expected to be approximately $100 million to $105 million with an adjusted EBITDA margin as a percentage of gross bookings of approximately 2.3% to 2.4%. For the full year 2024, rides growth is expected in the mid-teens year-over-year, gross bookings to grow approximately 17% year-over-year, adjusted EBITDA margin as a percentage of gross bookings to be approximately 2.3%, up from prior outlook, and free cash flow to exceed $650 million.

Risks include variability in free cash flow due to timing of insurance payments. Also, competition and regulatory factors could impact autonomous vehicle partnerships and overall business performance.

Q: Doug Anmuth asks about the benefits of less prime time and free cash flow.

A: David Risher talks about prime time reduction leading to ride growth and inversion increase, while Erin Brewer discusses free cash flow drivers including insurance accruals and lower cash payouts.

Q: Eric Sheridan asks about DoorDash partnership and autonomous vehicles.

A: David Risher discusses DoorDash partnership as a rider acquisition driver and provides context on autonomous vehicles, highlighting marketplace management and fleet utilization as key pillars.

Q: Brian Nowak asks about Price Lock rollout and San Francisco AV trends.

A: David Risher says Price Lock is rolled out nationally targeting commuters, and provides insights on San Francisco AV trends noting they are still in early stages with novelty and tourism effects.