Q4 2021 Lyft Inc Earnings Call

Good afternoon, and welcome to <unk> fourth quarter 2021 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 and luxury goods up.

Speaker 1: Good afternoon and welcome to the fourth quarter 2021 earnings call. At this time, all participants are in listen only mode to prevent and 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 conference over to Sonia Benjji, head of investor relations.

For your assistance. Please press Star then zero on your Touchtone telephone as a reminder, this conference call is being recorded I would now like to turn your conference <unk> <unk> head of <unk>.

Betsy Relations you may begin.

Speaker 2: Thank you. Welcome to the list earnings call for the quarter ended December 31st, 2021. Joining me today to discuss Lyft's results and key business initiatives are our co-founder and CEO , Logan Green, co-founder and president John Zimmer, and chief financial officer Elaine Paul. A recording of this conference call will be available on our investor relations website at investor.lyft.com shortly after this call has ended.

Thank you welcome to the Lyft earnings call for the quarter ended December 31, 2021, joining me today to discuss net results and key business initiatives, our co founder and CEO Logan Green co founder and President John Zimmer and Chief Financial Officer, Paul a recording of the conference call.

All will be available on our Investor Relations website at <unk> Dot life Dot com shortly after this call.

Speaker 2: I'd like to take this opportunity to remind you that during the call, we will be making forward-looking statements. This includes statements relating to the expected impact of the continuing COVID-19 pandemic, the performance of our business, future financial results and guidance, strategy, long-term growth, and overall future prospects. We may also make statements regarding regulatory matters.

I'd like to take this opportunity to remind you that during the call we'll be making forward looking statements.

Statements relating to the expected impact of the continuing COVID-19 pandemic the performance of our business future financial results and guidance strategy long term growth and overall future prospects.

We may also make statements regarding regulatory matters.

These statements are subject to known.

Our risk factors included in our Form 10-Q for the third quarter of 2021 filed on November four 2021, and our Form 10-K for the full year 2021 that will be filed by March one 2022.

Speaker 2: our risk factors included in our Form 10Q for the third quarter of 2021, filed on November 4, 2021, and our Form 10K for the full year 2021 that will be filed by March 1, 2022, as well as the current uncertainty and unpredictability in our business, the markets, and economy.

Well as the current uncertainty and unpredictability in our business markets and economy.

Speaker 2: We should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of the date hereof and with the same any obligation to update any forward-looking statements accepted required by law.

And not rely on our forward looking statements as predictions of future events. All forward looking statements that we make on this call are based on assumptions and beliefs as of the date hereof and Lyft disclaims any obligation to update any forward looking statements, except as required by law. Our discussion today will include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not.

Speaker 2: Are the sections that I will include non-dap financial measures? These non-dap measures should be considered in addition to and not as a substitute for or an isolation from a gap result.

As a substitute for or in isolation from our GAAP results, including some regarding our non-GAAP financial results, including a reconciliation of our historical GAAP to non-GAAP results may be found in our earnings release, which was furnished with our form 8-K filed today with the SEC and May also be found on our Investor Relations website I would now like to turn the conference call over to lift.

Speaker 2: Information regarding our non-gape financial results, including a reconciliation of our historical gap to non-gape results, maybe found in our earnings release this is published for our form 8K's file today with the FEC, and may also be found on our industrial relations website. I would now like to turn the conference call over to lift co-founder and chief executive officer, Logan Green. Logan. Thanks, Sonia. Good afternoon, everyone, and thank you for joining our call. 2021 was a big year for lift.

Co founder and Chief Executive Officer, Logan Green Logan. Thanks.

Good afternoon, everyone and thank you for joining our call 2021 was a big year for lift the operating environment improves as people got vaccinated in communities reopened.

Speaker 3: The operating environment improved as people got vaccinated and communities reopened. As a business, we strengthened our financial position and continued investing in growth on issues.

The business, we strengthened our financial position and continued investing in growth initiatives.

Speaker 3: We also expanded our industry leading autonomous vehicle partnerships and set ourselves up to win that long-term transition.

We also expanded our industry, leading autonomous vehicle partnerships and set ourselves up to win that long term transition.

Speaker 3: I'm proud of the team for what we've accomplished together and I'm excited to build on that momentum.

I am proud of the team for what we've accomplished together and I'm excited to build on that momentum.

Speaker 3: Let me take a moment to welcome our new SDIFO, Elaine Paul, or thrilled that Elaine has joined our leadership team. Her expertise building best in class disruptive businesses is essential as we enter an X phase of growth.

Let me take a moment to welcome our new CFO Elaine Paul Wurth.

<unk> thrilled that Elaine has joined our leadership team for.

Her expertise building best in class disruptive businesses is essential as we enter our next phase of growth.

Speaker 3: Elaine has already had a big impact in her first month. She's brought incredible energy to the team. She's diving deep on the details and she's identifying opportunities to build more scalable systems and processes.

Helane has already had a big impact on our first month, she brought incredible energy to the team. She is diving deeper on the details and she is identifying opportunities to build more scalable systems and processes.

Speaker 3: Elaine will review our financial results and share it out left shortly.

Alain who will review, our financial results and share our outlook shortly.

Speaker 3: Brian Roberts remains an advisor to lift until June . Brian's contributions over seven years here have been exceptional. He helped fill their business and the industry. We're grateful to Brian for his leadership and wish him continued success.

Brian Roberts remains an advisor to lift until June Brian's contributions over seven years here have been exceptional to help build our business and the industry were grateful to Brian for his leadership and wish him continued success.

Speaker 3: Turning to Q4, we had a solid quarter and ended 2021 in a stronger position. Right-year rides in the fourth quarter reached a new COVID record and we achieved revenue growth of 70% in Europe a year. Revenue per after-breder contribution margin and adjusted EBITDA reached new highs supported by supply improvements and ride growth.

Turning to Q4, we had a solid quarter and ended 2021 in a stronger position.

But youre right in the fourth quarter reached a new COVID-19 record and we achieved revenue growth of 70% year over year.

Revenue per active rider contribution margin and adjusted EBITDA reached new highs.

Supported by supply improvements in rate growth.

Speaker 3: For the full year, we grew revenues by 36% versus 2020. And we were adjusted to be a bit out of profitable on an annual basis for the first time. Another key milestone for our business. The plies rose, let's...

For the full year, we grew revenues by 36% versus 2020, and we were adjusted EBITDA profitable on an annual basis for the first time.

Another key milestone for our business.

Supply growth led to better service levels in our marketplace.

Speaker 3: Total active drivers in the fourth quarter grew by 34% versus Q4 last year. And drivers continued giving more rides on average than they did in 2019.

Total active drivers in the fourth quarter grew by 34% versus Q4 last year and drivers continued giving more rides on average than they did in 2019.

Speaker 3: New driver activations were also strong, up nearly 50% year over year.

New driver Activations were also strong up nearly 50% year over year.

Speaker 3: and between Q2 and Q4 of 2021, ride ETAs improved by roughly 30% across all of the markets we operated. We'll continue working hard to deliver the best possible experience for riders and drivers.

And between Q2, and Q4 of 2021, Ryan ETA'S improve by roughly 30% across all of the markets we operate in.

We will continue working hard to deliver the best possible experience for riders and drivers.

Let me talk about Q1.

Speaker 3: In January , the Omicron variant had a significant impact on ride volume.

In January the Omicron variant had a significant impact on ride volumes.

Speaker 3: The rapid surge in infections was correlated with reduced demand for rideshare.

The rapid surge in infections was correlated with reduced demand for rideshare.

Speaker 3: However, since the spike in the US has now peaked, we expect to man will begin to recover. In fact, in the last week of January , we saw a pickup in right-cher rise that we see as a positive signal.

However, since the spike in the U S has now peaked we expect demand will begin to recover.

In fact in the last week of January we saw a pickup in rideshare rides that we see as a positive signal.

Speaker 3: Ultimately, given the expected impact of Omicron on Q1 and the unknown shape of the recovery, which could carry into Q2, our near-term revenue growth acceleration will likely be affected.

Ultimately given the expected impact of Amazon on Q1, and the unknown shape of the recovery, which could carry into Q2, our near term revenue growth acceleration will likely be affected.

Speaker 3: On our last earnings call, we said that we expected revenue growth for full year 2022 to accelerate versus 2021.

On our last earnings call, we said that we expected revenue growth for full year 2020 to accelerate versus 2021.

Speaker 3: where cautiously optimistic that this will continue to be the case. The demand rebound is a matter of...

We're cautiously optimistic that this will continue to be the case.

The demand rebound as a matter of when not if.

Speaker 3: We're getting better and better at managing these temporary COVID-related spikes. And this time around, driver supply has remained healthy. So when we come out of this period, we expect to be very well positioned. Now let me turn...

We're getting better and better at managing these temporary COVID-19 related spikes and this time around drivers supply has remained healthy so when we come out of this period, we expect to be very well positioned.

Now, let me turn the call over to Elaine.

Speaker 2: Thanks Logan, and good afternoon everyone. Let me start by saying, my first month at Lifts has been incredible. I spent a lot of time studying into the details of our business and engaging with the leadership team on key growth initiatives. I joined Lifts because of the people, the mission, and the significant potential that I saw. One month in, I'm even more exhilarated by this company and our opportunity.

Thanks, Logan and good afternoon, everyone. Let me start by saying My first month has been incredible I've spent a lot of time getting into the details of our business and engaging with the leadership team on key growth initiatives.

Joining me lift because of the people the mission.

Potential.

One month, and an even more accelerated I guess company and opportunity.

There's a lot of exciting and important work to do but a few.

Speaker 2: There's a lot of exciting and important work to do, but a few things are already very clear. The business fundamentals are strong, and there is a lot of runway ahead. We will build a much larger company as we attack the massive addressable market in front of us.

In fact already very clear the business fundamentals are strong and there is a lot of runway ahead, we will build a much larger company as we attack the massive addressable market in front of us.

Speaker 2: I'm looking forward to having a transparent relationship with on Vester's, Analysts, and other key stakeholders.

Im looking forward to having a transparent relationship with our investors analysts and other key stakeholders.

Speaker 2: Now, let's talk about Q4. Rideshare rides in the fourth quarter reached a new COVID high. October with Halloween was the strongest month. As expected, November and December took down the October but rideshare rides in both months increased from within 30% versus last year.

Now, let's talk about Q4.

Sure right in the fourth quarter reached a new Covid High October with Halloween was the strongest month as expected November and December down from October , but rideshare rides in both months increased by more than 30% versus last year.

Speaker 2: On the supply side, we will please to see the continued impact of our investments and signs of organic talent.

On the supply side, we were pleased to see the continued impact of our investments and signs of organic tailwind.

Speaker 2: Active drivers reach to code the time in the fourth quarter and new driver activations remain robust. Up to nearly 50% and Q4 versus last year.

Active drivers, which to Covid high in the fourth quarter and new driver Activations remain robust.

50% in Q4 versus last year.

Speaker 2: By growing supply, we were able to support an improving marketplace balance and a higher volume of rise. As a result, we reported Q4 revenue of $970 million, up 70% year-over-year, and exceeded our guidance range of 930-940 million. For the full fiscal year, we achieved revenue of $3.2 billion, and increased of 36% versus 2020.

By growing supply and we were able to support an improving marketplace balance and a higher volume of Brian .

As a result, we reported Q4 revenue of $970 million up 70% year over year and exceeded our guidance range of $9 $30 million to $940 million.

For the full fiscal year, we achieved revenue of $3 2 billion.

An increase of 36% versus 2020.

Speaker 2: The number of active riders in Q4 increased by 49% year over year to 18.7 million. New rider activation increased by 42% over the same period. On a sequential basis, active riders decline by 1% at the point. Keep in mind bike rides reached an all time high in Q3 and there are some riders who only use bike scooters that we lose in colder weather.

The number of active <unk> in Q4 increased by 49% year over year to $18 7 million.

Rider Activations increased by 42% over the same period on a sequential basis.

Good writers declined by one percentage point.

Keep in mind bike rides reached an all time high in Q3, and there are some writers who only used bikes and scooters that we believe in colder weather.

Speaker 2: Weven you active writer and Q4, which then new all time high of $51.79. This is an increase of 14% versus Q420 reflecting a larger mix of longer, higher revenue rise and improving service level.

Revenue per active rider in Q4 reached a new all time high of $51 79.

This is an increase of 14% versus Q4, 'twenty, reflecting a larger mix of longer higher revenue right and improving service levels.

Speaker 2: The airport use case continued to recover, with airport rides in Q421, more than doubling your over year.

The airport use case continued to recover with airport rides in Q4 dollars 21 more than doubling year over year.

Speaker 2: Before I move on, I want to note that unless otherwise indicated, all income statement measures are non-gap, an exclude stock-based compensation and other select items of detailed in our own release.

Before I move on I want to note that unless otherwise indicated all income statement measures are non-GAAP and exclude stock based compensation and other select items as detailed in our earnings release.

Speaker 2: A reconciliation of historical gap to non-gap results is available on our investor relations website and may be found in our earnings release, which was furnished with our form 8K filed today with the SEC.

A reconciliation of historical GAAP to non-GAAP results is available on our Investor Relations website and may be found in our earnings release, which was furnished with our form 8-K filed today with the SEC.

Speaker 2: Contribution margin in the fourth quarter was 59.7%, which represents a 4.2 percentage point increase from 2.4 of 2020 and exceeded our outlook of 59%.

Contribution margin in the fourth quarter was 59, 7%, which represents a four two percentage point increase from Q.

Q4 of 2020 and exceeded our outlook of 59%.

Speaker 2: The outperformance on revenue and contribution margin relative to our guidance helps drive strong Q4 contribution of $579 million.

The outperformance on revenue and contribution margin relative to our guidance helps drive strong Q4 contribution of $579 million.

Speaker 2: As a reminder, contribution excludes changes to the liability's insurance required by regulatory agencies attributable to historical periods.

As a reminder, contribution excludes changes to the liabilities for insurance required by regulatory agencies attributable to historical periods.

Speaker 2: In the fourth quarter, there was adverse development of $122 million net of re-insurance, which we attribute to the continued impact of COVID on legacy insurance claims, specifically higher healthcare and vehicle repair costs.

In the fourth quarter, there was adverse development of $122 million net of reinsurance, which we attribute to the continued impact of Covid on legacy insurance claims, specifically higher healthcare and vehicle repair costs.

Speaker 2: Inflationary pressures being seen across the economy are also broadly affecting the auto insurance industry.

Inflationary pressures being seen across the economy are also broadly affecting the auto insurance industry.

Speaker 2: To be clear, virtually all of our Q4 adverse development is associated with the Legislative Third Party Coins Administrator. The related claims, which date back to 2018, also predate the risk transfer structure that now exists.

To be clear virtually all of our Q4 adverse development is associated with the legacy third party claims administrator the related claims which date back to 2018 also pre date the risk transfer structure that now exists.

Speaker 2: It's also worth noting that this amount of adverse development is net of our re-insurance coverage, which offsets claims an excess of the deductible. As a reminder, for the current insurance policy year, we've transferred a significant majority of our auto insurance risk to best in class carriers. So we would take less surface area if inflationary pressures persist.

It's also worth noting that this amount of adverse development is net of our reinsurance coverage, which offsets claims in excess of the deductible.

As a reminder for the current insurance policy year, we've transferred a significant majority of our auto insurance risk.

Best in class carriers, so we retain less surface area, it's inflationary pressures persist.

Speaker 2: Let's move to operating expenses. Operations and support expense for Q4 was $104 million. That represents 10.7% of revenue and is down from 16.4% last year. A 570 basis point reduction year over year. The improvement of the reflection of operational efficiencies and leverage against top line growth.

Let's move to operating expenses.

Operations and support expense for Q4 was $104 million.

That represents 10, 7% of revenue and is down from 16, 4% last year.

570 basis point reduction year over year.

The improvement is a reflection of the operational efficiencies and leverage against top line growth.

R&D expense in Q4 with a $100 million.

Speaker 2: R&D expense in Q4 with $100 million. Down approximately 30 million year-over-year, reflecting a full quarter impact of the sale of our level five self-driving division, which closed in Q3.

Down approximately $30 million year over year, reflecting a full quarter impact of the sale of our level five self driving division, which closed in Q3.

Speaker 2: As a percentage of revenue, R&D expense declined to 10% in Q4 from 23% in a year ago period.

As a percentage of revenue R&D expense declined to 10% in Q4 from 23% in the year ago period.

Speaker 2: 2.4 sales and marketing was $113 million, 12% of revenue, down from 14% last year and roughly half the flat with Q3.

Q4 sales and marketing was $113 million, 12% of revenue.

Down from 14% last year and roughly flat with Q3.

Speaker 2: Within sales and marketing incentives were just 3% of revenue.

Then sales and marketing incentives for just 3% of revenue.

Speaker 2: GNA expense in 2.4 was $217 million. That represents 22% of revenue and is down 11 percentage points versus 2.4 of last year, with the leverage largely driven by top line growth.

G&A expense in Q4 was $217 million that represents 22% of revenue and is down 11 percentage points versus Q4 of last year with the leverage largely driven by topline growth.

Speaker 2: In terms of the bottom line, our Q4 adjusted ETA-profit of $75 million was in line with the top end of guidance, which was between $70 and $75 million, and an 11% improvement versus Q3.

In terms of the bottom line, our Q4 adjusted EBITDA profit of $75 million was in line with the top end of guidance, which was between 70% and 75 million and an 11% improvement versus Q3.

Speaker 2: We ended 2021 with understricted cash, cash equivalence, and short-term investments of $2.3 billion.

We ended 2021 with unrestricted cash cash equivalents and short term investments of $2 $3 billion.

Before I move to our outlook. It is important to note that COVID-19 trends are impossible to predict with any certainty future conditions can change rapidly and may affect our guidance with that let me share our current outlook.

Speaker 2: Before I move to our outlook, it's important to note that COVID trends are impossible to predict within the certain day. Future conditions can change rapidly and may affect our guidance. With that, let me share our current outlook.

Speaker 2: As Logan mentioned, T1 is being impacted by Omicron.

As Logan mentioned Q1 is being impacted by Amazon.

Speaker 2: For context, prior to Omicron, we were anticipating strong sequential rideshare ride growth in Q1. This was based on the demand trends we saw in Q4.

For context prior to Amazon, we were anticipating strong sequential rideshare rides growth in Q1. This was based on the demand trends we saw in Q4.

Speaker 2: However, given the impact that Omicron is had on rideshare values, the nail anticipate rideshare rides will be down slightly in Q1 versus Q4.

However, given the impact that Omnicom has had on rideshare volumes. We now anticipate rideshare rides will be down slightly in Q1 versus Q4. In addition, the first quarter of every year always has rideshare ride mix headwinds with shorter ride and less use of bikes and scooters.

Speaker 2: In addition, the first quarter of every year always has ride-chir-ride mix headwinds with shorter rides and less use of bikes and scooters.

Speaker 2: Given these factors, we expect revenue in 21 of between $800 and $850 million. This implies year-over-year growth of 31 to 40 percent. On a sequential basis, this outlook suggests a decline of 120 to 170 million in revenue versus Q4, or 12 to 18 percent quarter-over-quarter.

Given these factors we expect revenue in Q1 of between 800 $850 million this implies year over year growth of 31% to 40%.

A sequential basis. This outlook suggests a decline of $120 million to $170 million in revenue versus Q4, or 12% to 18% quarter over quarter.

Speaker 2: In terms of profitability, we expect Q1 contribution margin to be approximately 56.5%. We expect Q1 adjusted EBITDAW will be between five and $15 million versus the $75 million in Q4.

In terms of profitability, we expect Q1 contribution margin to be approximately 56, 5%.

We expect Q1, adjusted EBITDA will be between 5% and $15 million versus the $75 million in Q4.

Speaker 2: This assumes a sequential headland of approximately $65 million to adjusted EVA DOP versus Q4 that is driven by the quarter of a quarter ready to apply.

This assumes a sequential headwind of approximately $65 million to adjusted EBITDA versus Q4 that is driven by the quarter over quarter revenue decline.

Let me take a moment to address driver supply. We are pleased with the improvements we've seen over recent quarters and we continue to believe the most severe period of dislocation is behind us driver supplying so far in Q1 has been resilient and the marketplace has reached an improved balance partially due to softening demand.

Speaker 2: Let me take a moment to address driver supply. We are pleased with the improvements we've seen over recent quarters and we continue to believe the most severe period of dislocation is behind us.

Speaker 2: Driver supply so far in Q1 has been resilient and the marketplace has reached an improved balance, partially due to softened demand. We remain confident in our ability to manage this issue as we progress through the year.

We remain confident in our ability to manage this issue as we progress through the year.

Speaker 2: Turning to the full year, we expect the impact of Omicron on Q1 and the unknown pace of the recovery, which could weigh on Q2, will affect our near term revenue growth acceleration to some extent. For a full year 2022, we are cautiously optimistic that we will grow revenues faster than the 36% achieved in 2021.

Turning to the full year, we expect the impact on Q1.

Unknown pace of the recovery, which could weigh on Q2 will affect our near term revenue growth acceleration to some extent for full year 2022, we are cautiously optimistic that we will grow revenues faster than the 36% achieved in 2021.

Speaker 2: We expect this growth for a few reasons. First, why share volumes in Q421 were the highest state dam since COVID started, but were still more than 30% below the Q419 model.

We expect this growth for IP reasons first rideshare volumes in Q4, 'twenty, one with the highest they've been since Covid started but we're still more than 30% below the Q4 dollars 19 level.

Speaker 2: Second, the other side of the Omicron wave will likely create more opportunity for demand across our network. Throughout the pandemic, we have seen 10% of demand from mobility that gets released when people have the chance to get moving. As people can go out safely and have more places to go, whether the bars, restaurants, sporting events, or concerts, that's exactly what they do.

The other side of the Omicron Wade will likely create more opportunity for demand across our network.

The pandemic, we have seen pent up demand for mobility that gets released when people have the chance to get moving.

People can go out safely and have more places to go with it of bars restaurants sporting events concert that's exactly what they do.

Speaker 2: To sum things up, first, get a solid fourth quarter. And ended 2021 in a much stronger position relative to where we were at the start of the year.

To sum things up.

First we had a solid fourth quarter and ended 2021 and a much stronger position relative to where we were at the start of the year.

Speaker 2: Second, we have confident in our ability to navigate near term headwinds and position ourselves for recovery and demand.

Second we are confident in our ability to navigate near term headwinds and position ourselves for a recovery in demand.

Speaker 2: Third and most importantly, we are going to build a much larger company by attacking the market opportunity in front of us. We continue to see exciting opportunities to lean into growth, to deliver solutions that serve and expand our addressable market. We are also committed to disciplines, capital allocation, and to improving our profitability over time.

Third and most importantly, we're going to build a much larger company by attacking the market opportunity in front of US we continue to see exciting opportunities to lean into growth to deliver solutions that serve and expand our addressable market. We are also committed to disciplined capital allocation and to improve.

<unk> our profitability over time.

Speaker 2: Our investment decisions will continue to be guided by our financial north star, which is to maximize long-term free cash flow growth per share. With that, let me turn it over to John to provide key updates on the business and our strategy.

Our investment decisions will continue to be guided by our financial North star, which is to maximize long term free cash flow growth per share.

With that let me turn it over to John to provide key updates on the business and our strategy.

Speaker 3: Thanks Elaine, I'm excited for the new year and ready to execute on our broader business opportunities. In 2022, we have three key areas of focus. First, accelerate our core. Second, expand emerging and new products. And third, invest in our innovation stack. I'm going to address each and explain how they matter.

Thanks, Helane I am excited for the new year and ready to execute on our broader business opportunities in 2022, we have three key areas of focus.

First accelerate our core second expand emerging and new products.

And third invest in our innovation stack.

I'm going to address each and explain how they made it.

Speaker 3: First, we will accelerate our core by continuing to introduce solutions that allow us to grow riders and increase ride frequency.

First we will accelerate our core by continuing to introduce solutions that allow us to grow writers and increased frequency.

Speaker 3: The airport use case is a great example. We are working hard to improve the entire day of travel experience to deliver the most value to lift riders.

The airport use case is a great example, we are working hard to improve the entire day of travel experience to deliver the most value to lyft riders.

Speaker 3: To that end, we recently launched our expanded Delta partnership with an exclusive set of features.

To that end, we recently launched our expanded Delta partnership with an exclusive set of features.

Speaker 3: Since 2017, Liftsriders who've chosen to link their SkyMiles account have earned more than 2 billion SkyMiles while riding with Liftsriders.

Since 2017, Lyft riders who've chosen to length of Skymiles withheld have earned more than 2 billion skymiles, while abiding with lyft.

Speaker 3: Now, LIFRIDERS can also access real-time Delta Flight Information Interact. This means riders can stay up to date on LIFRite status, with access to terminal and gate information directly in the LIFT app.

Now Lyft riders can also access real time Delta flight information.

This means riders can stay up to date on the flight status with access to terminal and gate information directly in the Lyft App.

Speaker 3: This is the first of its kind experience, only available through lift to simplify our riders journey and give them access to information they can use to make decisions about their traffic.

This is a first of its kind experience only available through lift to simplify our riders journey.

Access to information they can use to make decisions about their travel.

Speaker 3: The partnership has already been impactful and early consumer feedback has been very positive.

Partnership has already been impactful and early consumer feedback has been very positive.

Speaker 3: Second, we are working hard to expand emerging and new products, including our bikes, scooters, rental cars, and vehicle service.

Second we are working hard to expand emerging and new products, including our bikes scooters rental cars and vehicle services.

Speaker 3: These products are valuable on a standalone basis. That is part of our network that deliver compounding value, serving as additional entry points to our network, facilitating cross-platform usage and making our network more sticky.

These products are valuable on a standalone basis.

That is part of our network to deliver compounding value serving as additional entry points to our network facilitating cross platform usage and making our network more sticky.

Consider that in each quarter of 2021, the number of riders using our bikes and scooters and addition to rideshare consistently grew faster than rideshare only writers.

Speaker 3: Consider that in each quarter of 2021, the number of ladders using our bison scooters in addition to rideshare consistently grew faster than rideshare only riders.

Speaker 3: For bikes in particular, 2021 was a record year for rides. It volumes up more than 40% versus 2020.

The bikes in particular 2021 was a record year for rise with volumes up more than 40% versus 2020.

Speaker 3: In fact, in 2021, City Bike in New York was the 25th most ridden transit network in the United States.

In fact in 2021 Citi bike in New York was the 25th most written transit network in the United States.

To put this in context last year more people took rides on CD bites.

Speaker 3: To put this in context, last year more people took lives on city bikes than on bark. The Bay Area's regional transit system.

But the bay area's regional transit system.

Speaker 3: And as a reminder, in most of our markets, we have agreements with the city to be the exclusive bike share provider.

And as a reminder, in most of our markets, we have agreements with the city to be the exclusive <unk> provider.

Speaker 3: We will continue to invest in these systems, expanding our physical footprint, and upgrading the infrastructure, as well as adding charging capabilities to our docking stations, which can improve both uptime and cost.

We will continue to invest in these systems, expanding our physical footprint and upgrading the infrastructure.

As well as adding charging capability for docking stations, which can improve both uptime and cost.

Speaker 3: A clovered bycure sponsorships, which includes city banks in New York, Nike in Portland and Mastercard in the Bay area, among others, generate revenue and demonstrate these systems' significant inherent value.

Corporate Bankshare sponsorships, which includes Citi Bank in New York, Nike in Portland, and Mastercard in the Bay area, among others generate revenue and demonstrate these systems significant inherent value.

Speaker 3: Let me find a moment on West Rantles, which is simplifying the rental car experience for consumers.

Let me spend a moment on lift rentals, which is simplifying the rental car experience for consumers.

Speaker 3: There are two parts to our strategy. One is our first party rentals, where we own the full stack experience. And second is our third party nationwide integration with sixth, which makes finding, reserving, and getting two and from a sixth rental lot easier than ever.

There are two parts to our strategy. One is our first party vessels, where we own the full stack experience and.

As our third party nationwide integration with fixed which makes finding reserving and getting to and from a fixed rent a lot easier than ever.

Speaker 3: Reservation for our first party rental doubled in Q4, 21 versus the prior year. This is a reflection of the focus we've put on building out our offers and making them more discoverable by our riders.

Reservations for our first party vessel doubled in Q4, 'twenty one versus the prior year.

This is a reflection of the focus we've put on building out our offerings and making them more discoverable by writers.

Our third party integration has also been very successful driving nearly half of all rental reservations booked through our system.

Speaker 3: Our third party integration has also been very successful. Driving nearly half of all rental reservations booked through a fifth.

Speaker 3: Looking ahead, we expect to continue to grow Miss Renswells by optimizing our first party footprint and evaluating new partnership opportunities to add more national coverage.

Looking ahead, we expect to continue to grow lift rentals by optimizing our first party footprint and evaluating new partnership opportunities to add more national coverage.

Our third focus in 2022 is investing in our innovation stack. This.

Speaker 3: Our third focus in 2022 is investing in our innovation stack. This refers to the R&D investments we're making and all of the work we're doing to advance the technology that underpins our entire network.

This refers to the R&D investments, we're making in all of the work we're doing to advance the technology that underpins our entire network.

Speaker 3: One great example is Lix Max, our in-house mapping platform specifically built for our transportation network.

One Great example is our.

Our in house mapping platform, specifically built for our transportation network.

Speaker 3: We're building list maps to be able to optimize the entire list experience. This includes tapping into data collected from list-rides to detect street closures and traffic delays and using that information to improve our overall routing capability.

We're building less map to be able to optimize the entire lift experienced.

This includes tapping into data collected from lift side to detached street closures and traffic delays and using that information to improve our overall routing capability.

Speaker 3: We can also optimize pickups and drop off to save drivers time, help position them for the next ride, and avoid unnecessary tolls.

We can also optimize pickups and drop offs to save drivers time help position them for the next slide and avoid unnecessary tolls will.

Speaker 3: We began rolling out this map last year and select markets and it has already powered more than three million rights.

We began rolling out lift maps last year in select markets.

Already powered more than $3 million right.

We're also partnering with Google to make that lift up at our proprietary mapping platform available on car displays that have Android auto.

Speaker 3: You're also partnering this Google to make the list to ask in a proprietary mapping platform available on card displays that have Android Auto.

Speaker 3: This integration has been highly anticipated by our driver's community and a frequent top request.

The integration has been highly anticipated by our driver community and have frequent top request.

Speaker 3: If you take enough rides to your rides, it's easy to see why this is so helpful. Many drivers end up with multiple phones on the dashboards or other complicated setups to try to achieve the same out.

If you've taken a variety of rides, it's easy to see why this is so helpful. Many drivers end up with multiple phones on the dashboards or other complicated setups to try to achieve the same outcomes.

Speaker 3: Launching the summer, we expect the integration to make it easier for drivers to accept rides and to improve the overall rider and driver experience. And we'll continue working to accommodate other platforms to alleviate this pain point more broadly.

Launching this summer we expect the integration to make it easier for drivers to accept derived and to improve the overall rider and driver and will continue working to accommodate other platforms to alleviate this pain point more broadly.

Speaker 3: Our investments in our networks innovation stack with advancements like LISMAPs add value today and help us build critical infrastructure and capabilities for the future.

Our investments in our networks innovation stack with advancements like Lyft maps add value today, and help us build critical infrastructure and capabilities for the future.

This becomes clear as you look at the work, we're doing with autonomous vehicle partners.

Speaker 3: This becomes clear as you look at the work we're doing with autonomous vehicle partners.

Speaker 3: The LIS network is a continuously improving product, stemming from a decade of engineering investment and billions of real world rides.

The Lyft network is a continuously improving product stemming from a decade of engineering investments and billions of real world right.

Speaker 3: As a result, AD providers are increasingly working with us to help advance and commercialize their technology.

As a result, 80 providers are increasingly working with us to help advance and commercialize the technology.

The latest proof point with the launch of our timeless Rideshare service, along with Ford and Argo AI in Miami.

Speaker 3: The latest proof point is the launch of our autonomous rideshare service along with Ford and Ago AI in Miami.

Speaker 3: 4JVs are powered by the Argo Self Driving System and can be dispatched, matched, and routed to Lithuania.

<unk> are powered by the Argos self driving system and can be dispatched matched and routed to lift players.

Speaker 3: This is the first time A.V.s are available for ride sharing in Miami.

This is the first time avs that are available for ridesharing in Miami.

Speaker 3: Ultimately, we expect this partnership to scale to a thousand vehicles across multiple markets by 2026.

Ultimately, we expect this partnership to scale to 1000 vehicles across multiple market by 2026.

For every additional component we add to our network, we continue to see more and more compelling benefits.

Speaker 3: For every additional component we add to our network, we continue to see more and more compounding benefits. Operator.

Operator, we're now ready to take questions.

Speaker 1: Sure sir. Ladies and gentlemen, if you have a question at this time, please press the star one on your telephoned keypad. If your question has been answered or you wish to remove yourself from the queue, press the pound key. We kindly request to limit your questions to one and one follow-up. Your first question comes from the line of the oneness with D.P. Morgan. Please go ahead.

Sure, Sir ladies and gentlemen, if you have a question at this time. Please press star one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue for actually pound key we kindly request you limit your questions to one and one follow up your first question comes from the line.

With Jpmorgan. Please go ahead.

Thanks for taking the questions just when you think about potentially accelerating growth above 36% in 'twenty two.

Speaker 3: Thanks for taking the questions. Just when you think about potentially accelerating growth above 36% in 22, how are you thinking about the mix of active riders and revenue per active rider? And then just for driver supply, and then you said it's more stable through Omicron. How are you feeling about the overall driver supply levels just relative to increasing demand that you go through the year? Thanks. Yeah, so this is...

Are you thinking about the mix of active riders and revenue per active rider and then just some drivers supply I know you said, it's more stable through omicron. How are you feeling about the overall driver supply levels, just relative to increasing demand as you go through the year. Thanks.

Yes.

I'll jump in on.

Speaker 3: We are, our core focus is taking care of our customers. So we are most focused on providing the best possible customer experience and ensuring great customer experiences, leads to great retention, leads to more rides. So that's our core focus. We are additionally always looking at and investing in planting new seeds.

<unk>.

We are.

Our focus is taking care of our customers. So we are most focused on providing the best possible customer experience.

And.

Ensuring a great customer experiences lead to great retention read the more roads.

That's our core focus.

We are additionally.

Always.

Looking at investing in planting new seeds.

Speaker 3: to expand the number of use cases for using LIST. And you've seen us expand, we launched really innovative product last year.

And the number of use cases.

For using lift and you've seen us.

Expand.

We launched really innovative products last year.

Speaker 3: called priority pickup. So when somebody is in a rush, and we have the ability to dispatch a closer driver will providing a really magical experience with our priority pickup.

Priority pick up so when somebody is in a rush.

And we have the ability to dispatch.

Those are driver will providing a really magical experience with their priority pick up.

Speaker 3: Now it comes out a premium. So, you know, it's perfect for the moment where, you know, those few minutes really matter, but it's a really special experience when it works.

Product now it comes at a premium.

So it's perfect for the moment, where.

Those few minutes really matter, but it's really a special experience when it works.

Speaker 3: And we're expanding outward into different use cases, such as what John was talking about with Fred.

And we're expanding outwards into different use cases, such as.

What John was talking about with rentals.

Speaker 3: so that lists can be top of mind for any kind of transportation trip that somebody's planning. So, we additionally are always focused on activating new riders. So every year, four million people in the U.S.

Lifts can be.

Top of mind for any kind of transportation that somebody's planning so.

We Additionally are always focused on activating new riders.

So every year.

No.

4 million people in the U S turned 18.

Speaker 3: And so we have a lot of investment and energy always on in terms of providing a reason for somebody to use left to the first time. So we're both focused on kind of expansion of the active rider pool and driving more revenue for active rider.

And so we have.

A lot of investment and energy.

<unk> in terms of providing a reason for somebody to use lyft for the first time. So we're both focused on kind of <unk>.

Pension.

Active rider pool.

And driving more and more revenue per active rider.

Speaker 2: In terms of the second part of the question on supply, Elaine, you want to jump in? Absolutely. And thank you, Logan. Hi, this is Elaine. In terms of driver supply, the supply demands and on market waste have certainly been improving.

In.

Of the <unk>.

Second part of the question.

On supply and then you want to jump in absolutely and thank you Logan Hi, This is Elaine.

In terms of driver supply.

The supply demand dynamics in our marketplace have certainly been improving.

Speaker 2: Total active drivers reach the COVID-19 high in 2.4. And new drivers bring nearly 50% year-over-year at 2.

Total active drivers reached a COVID-19 high in Q4, and new drivers grew nearly 50% year over year in Q4.

Speaker 2: Even in Q1, despite self-in-demand, driver supply has been resilient. We've seen early signs of organic drivers' sub-pigroves. As some contacts, don't forget, the enhanced federal unemployment benefits on September and the child tax credit will drop at year end. So there are folks who want to get back out and earning money.

Even in Q1, despite soften demand driver supply has been resilient we have seen early.

Signs of organic drag our supply growth.

Add some context don't forget the enhanced federal unemployment benefits.

That in September and the child tax credit roll off at year end.

So there are folks who want to get back out.

And earning money.

Speaker 2: As ride chairs demand rebounds, we may see people shift from delivering to ride chair with earnings 10 to be higher based on historical studies, although exact comparisons are difficult. We'll confident in our ability to manage supply and we feel very well positioned for the discovery and demand.

As rideshare demand rebounds, we may see people shift from delivery to rideshare with earnings tend to be higher based on historical studies, although exact comparisons are difficult.

We're confident in our ability to manage supply and we felt very well positioned for the recovery in demand.

Great. Thank you both.

Thank you.

Yes.

Speaker 1: Your next question comes from the line-up. It's the season-ju, read credits.

Your next question comes from the line.

CTG with credit Suisse. Please go ahead.

Speaker 3: Thank you so much. So no good or John , I think there's a perception among investors that lift this perhaps.

Thank you told us so they'll get there John I think there is a perception among investors that test.

Perhaps.

Speaker 3: but feeding market share, but you know, there's probably perhaps an underlying dynamic that is more due to your regional exposure. So, you know, can you talk about what you may be seeing in terms of all to share this back and forth, your competitor or, you know, lack the...

Ceding market share, but theres, probably perhaps the underlying dynamic that is more due to your regional exposure. So.

Can you talk about what you may be seeing in terms of relative share shifts back and forth with your competitor.

Lack thereof.

Speaker 3: And I guess, John , a clarification question on your maps commentary earlier is what you're looking to do, primarily routing the software based on traffic data that lift is collecting, you know, as opposed to spending to create your own version of maps because seems like both of the OS owners in particular degree will have already invested a significant amount of money to have the best maps.

I guess, John a clarification question on your <unk> commentary earlier.

Is what Youre looking at do primarily routing software based on traffic data that lift is collecting.

As opposed to spending to create your own version of backups, because seems like both of the OS owners, particularly Google have already invested a significant amount of money.

To have the best maps apps out there. Thanks.

Speaker 3: Yeah, so on in terms of the competitive position based on third party data our market share is relatively consistent with where it was pre-COVID and our service levels are through track closely you know service levels being pickup times in price.

Yeah.

So.

In terms of the competitive position based on third party data our market share is relatively consistent with where it was pre COVID-19 .

And our service levels, which we track closely sort of a key service levels being pickup times and price.

Speaker 3: have been competitive. So in 2021, we made significant investment in drivers supply, as we've talked about on some of the prior calls. And we're seeing those investments continue to pay off. So there is, as we mentioned, there is a regional difference where we over-invicts on share relatively on the West Coast.

Have been competitive.

So in 2021, and we made significant investments investments in driver supply as.

As we've talked about on some of the prior calls and we're seeing those investments continue to pay off. So there is as you mentioned there is sort of a regional difference where we.

Over index on share relatively.

On the West Coast.

Speaker 3: And, you know, as I'm sure you follow in the data, the West Coast has been sort of more cautious about COVID and a little slower to reopen. So there's definitely kind of an element there, but when you look at the share kind of pre-COVID to now, it is effectively flat.

And.

I'm sure you're following the data the west coast has been sort of more more cautious about cold weather and a little slower to reopen.

So there is definitely.

Kind of an element there, but when you look at the share kind of pre COVID-19 to now it is effectively flat.

Speaker 4: And then on maps, you're asking kind of what's the primary use of the software we're creating and kind of whether we use our own traffic, data, and then kind of maybe have that compares to the fact that, you know, Apple and Google have great products already out in the market. We're, I think we're incredibly excited about this work. The team has been heads down for several years. We have.

And then.

On maps.

You are asking kind of whats the primary use of the software, we're creating and kind of whether we use our own traffic.

Data and then kind of maybe how that compares to the fact that Apple and Google have have great products already out in the market.

We're I'd say, we're incredibly excited about this work the team has been heads down for several years we have.

Speaker 4: very specific use cases. When you build a product like Google Maps, you build it for many different types of use cases, people walking, people driving, people not earning income driving primarily. So the fact that we're building kind of list maps for lists.

Very specific use cases, when you build a product like Google maps, you build it for many different types of use cases people walking people driving people not earning income driving primarily so the fact that we're building kind of lift maps for lift.

Speaker 4: We're seeing our ability to add value for drivers be realized. So one exciting stat we've seen already is that for, you know, we've brought it to, we've started rolling it out to our drivers as a navigation product.

We're seeing our ability to add value for drivers be.

<unk> realized so.

One exciting start we've seen already is that quarter. We've brought it to we've started rolling it out to our drivers as it navigates in product and 50% of drivers prefer using lift maps to to Google maps or to what they were using before.

Speaker 4: and 50% of drivers prefer using lip maps.

Speaker 4: to Google Maps or to what they were using before.

Speaker 4: Given what you said that they've spent incredible amounts of money in years, building great products.

Given what you said David spent incredible amounts of money in years building great products.

Speaker 4: We are extremely happy to see that 50% already prefer this product. And we feel like

<unk> be happy to see that now 50% already prefer this product and we feel like it's like the true battleground for building a great map product is that people are using your maps are earning money on it they are only going to use it if it helps them and so quite optimistic about the work there it does incorporate our own traffic information.

Speaker 4: It's like the true battleground for building a great map product is the people using your maps are earning money on it. They're only going to use it if it helps them. And so quite optimistic about the work there. It does incorporate our own traffic information. There's also data around which doors and street corners people exit venues from that we can be much more specific about. What's out of the street that passengers on? So there's lots of specific use cases that we believe we can do better than the open-air.

There's also data around which doors.

<unk> Street corner as people exit venues from that we can be much more specific about what side of the street that passengers on so.

So theres lots of specific use cases that we believe we can do better.

And then the alternative yes, just to weigh in on a couple of other specifics.

Speaker 3: And just just to weigh in on a couple of other specifics, you know, it's different for us like John was saying people are earning money and there's a lot of money on the line for lift on every ride.

Different for us that got him, saying people are earning money and there is a lot of money on the line for <unk>.

On every ride so we are able to route drivers along safer routes that that is not something we carry obviously.

Speaker 3: So we are able to route drivers along safer routes. That is not something we carry out, obviously, you see that the numbers, you know, are serious overhead for our insurance costs. And we're able to make lift rides significantly safer by routing drivers along the safest route.

D C.

The numbers are serious overhead for our insurance cost and we're able to make lyft rides significantly safer by routing drivers along the safest droughts.

Speaker 3: You know, additionally, because we have so many drivers on the road and they're able to send us back higher fidelity data, there have been, you know, sort of a growing number of times we were able to detect things like road closures sooner. And, you know, it is incredibly valuable for us to understand when and where a road closure shows up just as a small example. Because if we route the long driver, we waste, you know, valuable time and money.

Additionally.

We have so many drivers on the road and they are able to send us back higher fidelity data there have been sort of a growing number of times, we're able to detect things like road closures sooner and yes. It is incredibly valuable for us to understand when and where our road closure shows up just as a small exam.

Ample because if we route the wrong driver, we waste valuable time and money for lift we deliver about rider experience et cetera, and I think the broader kind of consumer focused mapping companies don't have the same sort of dollars on the line.

Speaker 3: of lift we deliver a lot of experience, et cetera. And I think the broader kind of consumer focused in mapping companies don't have the same sort of dollars on the line and don't necessarily kind of optimize for the same things that we are in our business. So not only is the team just built an incredible product and unlocked a lot of value from it, but there are just I think a ton of

And.

Don't necessarily kind of optimized for the same things that we are in our business. So not only is the team just built.

An incredible incredible product and unlocked a lot of value from it.

But there are just I think.

Kind of sort of specific areas, where we can tailor to to our business.

Speaker 4: specific areas where we can tailor to our business to, I'm not great experiences and great value. One last thing is that as you think about the future with the Toggle's vehicle, this is a really important building block. And what I love about what we're doing with the business is that we can build phenomenal products for drivers, whether that's the mapping software, whether that's vehicle services or fleet management. And then we, you

I'm not great experiences and great value. One last thing is that as you think about.

The future with autonomous vehicles. This is a really important building block and what I love about what we're doing with the businesses that we can build phenomenal products for drivers whether that's the mapping software whether thats vehicle services.

Fleet management, and then we could.

Speaker 4: position those for the consumer, the rider, and then ultimately the autonomous vehicle to make sure we optimize for cost of operations as well as revenue per mile. So it all adds up to both helping in the near term and for the long term.

Position those for the consumer the rider and then ultimately the autonomous vehicles to make sure we optimize for cost of operations as well as revenue per mile. So it all it all adds up to both helping in the near term.

And for the long term.

Thank you.

Your next question comes from the line of Alex Potter with Piper Sandler. Please go ahead.

Speaker 1: Your next question comes from the line up, Alex Putter with Piper Sandler. Please go ahead.

Speaker 3: Hi guys, thanks for taking the question. I had two years. So the first one, obviously, the revenue proactive rider was up pretty materially versus last quarter. You mentioned longer distance rise. I'm curious if you have a guess regarding why that might be and the degree to which you think that can be sustained. And then the second question is just on delivery. You had...

Hi, guys. Thanks for taking the question.

I have two here so the first one obviously the revenue per active rider was up pretty materially versus last quarter, you mentioned longer distance right I'm curious if you have.

Guests regarding why that might be.

And the degree to which you think that can be sustained and then the second question is just on delivery you had.

Historically toyed with potentially doing a delivery pilot.

Speaker 5: Historically, poised with potentially doing a delivery pilot, haven't gotten much of an update on that front. Just curious the extent to which that ranks anywhere on your priority list.

We haven't gotten much of an update on that front I'm, just curious the extent to which that.

Ranks anywhere on your priority list.

Speaker 4: Great, Elaine will take the first one and then this is John who will take the delivery question.

Great Elaine will take the first one and then this is John I'll take the delivery question.

Speaker 2: Thank you. We were very pleased that revenue per active rider reached a new all time high in Q4, a $51.79.

Thank you we were very pleased that revenue per active rider reached a new all time high in Q4 of $51 79.

Speaker 2: This record revenue proactive rider was supported by two things, an increase in ride share revenue provide, and a pickup and ride frequency versus Q3. So it's really a factor of both price and one of these.

This record revenue per active rider was supported by two things an increase in rideshare revenue per ride and.

A pickup in write frequency versus Q3, so it's really a factor of both price and quantity.

Speaker 2: The higher ride share revenue you provide is the reflection of ride mix. And you mentioned longer trips. This includes longer trips and more use of high value loads like left, which is typical in the fourth quarter of the year.

The higher rideshare revenue per ride is a reflection of ride neck, and he mentioned longer correct.

This includes longer Scott.

More use of high value modes, like Lux, which is typical in the fourth quarter of the year.

Speaker 2: The longer trips, a good example of that is airport, the airport use case. Airports rides are longer, higher revenue provide, and in the fourth quarter, reached 9% of ride volume, which compares really nicely and favorably to 9.4% and Q4 of 2009.

But longer term a good example of that is airport to airport use case.

Report rides are longer higher revenue per ride.

And.

In the fourth quarter reached 9% of ride volume, which compares really nicely and favorably to nine 4% in Q not in Q4 of 2019.

Speaker 2: All of those dynamics in terms of the one-chair mix impacted the revenue provide. And then, as we said, a pick up in right frequency also drove the new all-time high.

All of those dynamics in terms of that.

The rideshare, Nick impacted the revenue per ride and then as we said a pickup in loss frequency also drove the new all time high.

And then I will take the question about the delivery update so.

Speaker 4: And then I'll take the question about delivery update. So we're, we're, we're remain excited by the traction we're getting at the delivery team has done a phenomenal job building and focusing on quality, making sure that the merchants that we work with have delivery success. I just want to make sure it's clear our focus is on a B2B product offering, not a consumer-facing marketplace.

We remain excited by the traction we're getting the delivery team has done a phenomenal job building and focusing on quality, making sure that the merchants that we work with have delivery success I just want to make sure. It's clear our focus is on a BBB product offering not a consumer facing marketplace.

Speaker 4: As we've said for many years, we're a transportation focused company. We wanna have one main consumer that we're building for. And again, we'll not build a consumer-facing marketplace for groceries or food. We are live in the number of pilot market.

As we've said for many years, where transportation focused company.

I have one main consumer that we're building for.

Again, we will not build a consumer facing marketplace for groceries or food. We are live in a number of pilot markets for competitive reasons. It doesn't make a lot of sense for us to say too much other than that we're happy with the progress.

Speaker 4: For competitive reasons, it doesn't make a lot of sense for us to say too much. Other than that, we're happy with the progress. We're quite excited about non-perishables, like supporting auto park delivery for companies like Napa Auto Parts.

We're quite excited about non perishables like supporting auto product delivery for companies like Napa auto parts.

Speaker 4: We're also excited about a partnership we announced with OLO, which enables local delivery for merchants in a product called OLO dispatch.

So excited about our partnership we announced with <unk>, which enables local delivery for merchants, we have a product called although dispatch, we really feel strongly that because we are one of call. It three years or so national networks.

Speaker 4: We really feel strongly that because we are one of, call it three or so national networks of driver communities that have national coverage, but we're the only one not competing with the retailer for that end consumer. So still remain excited by the opportunity there. We're being methodical about how we come to market and don't wanna share too much for competitive reasons.

Of driver communities that have national coverage, but we're the only one not competing with the retailer for.

For that end consumer so still remain excited by the opportunity there we're being.

Methodical about how we come to market.

Don't want to share too much for competitive reasons.

Speaker 1: Thank you. Your next question comes from the line at Eric Sheridan with Golden Sex. Please go ahead.

Thank you. Your next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.

Speaker 6: And so much for taking the questions, maybe if I can do too, and you can grab a lane on the new role with the company. On the two questions, both shorter term and nature, but in terms of Q1 on the demand side, can you help us better understand how much of an improvement versus what you saw in January is sort of informing the view in terms of how Q1 evolves or are you keeping us fairly conservative view on variant and how it impacts demand all the way through Q1 and that's when it forms the broader top line guide. And then going further down the P&L, the incremental EBITDA margin that seems to be implied in terms of Q4 over Q1 seems weaker than some of the incremental margin we've seen as you built momentum in the business from Q2 to Q4 in 2021. Can you unpack a little bit of some of the drivers of the incremental margin as well in Q1 versus Q4? Thank you.

So much for taking the questions maybe if I can do two and congratulate them on the new role with the company.

Two questions both shorter term in nature, but in terms of Q1 on the demand side can you help us better understand how much of an improvement versus what you saw in January is sort of informing the view in terms of how Q1 evolves. So are you keeping us fairly conservative view on variance and how it impacts demand all the way through Q.

And that's what informs the broader top line guide and then going further down the P&L incremental EBITDA margin that seems to be implied in terms of Q4, where Q1 seems weaker than some of the incremental margin. We've seen as you build momentum in the business from Q2 to Q4 in 2021 can you unpack a little bit of some of them.

The drivers of the incremental margin as well in Q1 versus Q4. Thank you.

Speaker 2: That's absolutely. So let me be clear, Omicron has had a significant impact on our business in Q1. And what not for Omicron, we would be projecting the strong sequential quarter of a quarter ride growth and revenue growth. What you see reflected in our Q1 guidance is reflective of Omicron.

Yes, absolutely.

So.

Matt Let me be clear Ron has had a significant impact on our business in Q1 and were it not for Amazon, we would be projecting strong sequential quarter over quarter <unk> growth and revenue growth.

What you see reflected in our Q1 guidance.

It's reflective.

On the con.

Speaker 2: having us predict that RISE will be down slightly cooler over quarter. That being said, we are seeing some positive signals. There's news in the marketplace that mask mandates are being rolled back. And in our own business, in the last week of January , we saw an upkick in RISE that we see as a positive signal.

Enough predict rides will be down slightly quarter over quarter staffing.

That being said.

We are seeing some positive signals.

There's news in the marketplace that Nasscom mandate are being rolled back.

And in our own business in the last week of January .

Chicken lives that we see at that positive signal.

Speaker 2: Nevertheless, the impact of honor on Q1 is reading us to our guidance of 800 to 850 million in revenue on Q1 and adjusted the EBITDA of $515 million.

Nevertheless, the impact of <unk> on Q1 is leading us to our guidance of $800 million to $850 million in revenue in Q1.

Adjusted EBITDA of $5 million to $15 million.

Speaker 2: on the front and the pace and shape of recovery. Well, we're seeing the positive signal. The pace of recovery is uncertain and that's why we expressed some caution in terrain to Q2.

On the prime and the pace and shape.

Recovery, while we're seeing the positive signal.

The pace of recovery is uncertain and that's why we.

That's correct.

Caution entering into Q2 however.

Speaker 2: However, for the full year, we remain confident and cautiously optimistic that we can drive increased year-to-year revenue growth. We achieved 36% year-to-year revenue growth in 2021, and we're cautiously optimistic that we can exceed that in 2022.

However for the full year, we remain confident and cautiously optimistic that we can drive increased year over year revenue growth, we achieved 36% year on year revenue growth in 2021, and we're cautiously optimistic that we can exceed that in 2022.

Speaker 2: Moving to your question about the incremental. In Q1, we're forecasting adjusted with the dollar of between $5 and $15 million. And that compares with $75 million in Q4, in Q4. You asked about the sort of incremental margins of what we're seeing.

Moving to your question about the Incrementals in Q1, we are forecasting adjusted EBITDA of between five and $15 million.

That compares with $75 million as you implied in Q4.

You asked about sort of incremental margins of what were seeing.

Speaker 2: That decline, quarter on quarter, at the midpoint, $65 million is all of our projected decline in revenue of $122,271. So you see that flowing through to EBITDA at an incremental margin of 45 cents. And long as in line with what we've seen in the past.

That decline quarter on quarter.

The midpoint $65 million.

He is off of a projected decline in revenue of $120 million to $170 million.

You see that flowing through to EBITDA and an incremental margin of 45 days and largely in line with what we've seen.

Speaker 1: Thank you. Your next question comes from the line at Ed Uram. Good, keep anc council. Please go ahead.

Thank you. Your next question comes from the line of Ed <unk>.

Now with Keybanc capital. Please go ahead.

Speaker 4: Hey, thanks very much for taking that question. I guess driver's flight continues to normalize the man picks up. As you think about the median term, you guys have been very successful at kind of keeping a lid on promotions. Do you think that there's some build back that will have to occur as the driver and rider's flight gets no greater? I could literally more do you think that the industry has finally found a more rational promotional level and that you and your other competitor can kind of maintain pricing discipline. Thank you.

Hey, Thanks, very much for taking the question I guess.

Driver supply continues to normalize demand picks up as you think about the medium term you guys have been very successful at kind of keeping a lid on promotion do you think that theres. Some build back I will have to occur as the driver and rider supply gets no greater equilibrium or do you think that the industry is finally kind of more rational promotional level and that you and your other competitor it can kind of maintain.

Pricing discipline. Thank you.

Yes. This is Logan.

Speaker 3: Yes, this is Logan. I think on the rider side, we certainly hope to implant to maintain a much lower promotional level. I think those kind of a sign of the early days as we were building scale, scale correlated.

I think on the on the rider side.

We certainly hope to.

Plan to maintain a much lower promotional level.

I think those kind of a sign of the.

Early days as we are building scale.

Scale correlated to.

Speaker 3: to hitting critical mass in the market where you could sustain competitive pickup times.

Hitting critical mass in a market, where you could sustain competitive pickup times.

Speaker 3: You know, and we, you know, we feel like we are well past that point.

And we.

We feel like we are well past that point.

Speaker 3: We've made a lot of marketplace improvements where we're able to operate effectively.

Made a lot of marketplace improvements.

The way, we're able to operate effectively.

Speaker 4: and maintain those lower ETAs in really all conditions. One thing I would just put on that is that all of the back and forth of COVID, so whether it was spikes of demand, spikes of supply or imbalances forced us to build even better sharper tools throughout all those periods, which...

And maintain those lower it isn't really all conditions, one thing I would just.

Put on that is that all of the back and forth of Covid. So whether it was.

Spikes of demand and supply imbalances.

Forced us to build even better sharper tools.

Throughout all of those periods, which which are more affordable to run.

Speaker 4: which are more affordable to run in a more stable environment. And so just to figure back in what Logan's saying, not only is the market and are the players way more rational after that early period of building, we have better tools within the marketplace to manage the demand and supply changes. Yeah, and then on the driver side, I would just call out that is really a product of supply and demand balance.

In a more stable environment and so just just to piggyback on what Logan, saying not only is the market and are the players way more rational after that early period of building we have better tools.

Within the marketplace to manage.

The demand and supply changes.

And then on the on the <unk>.

River side.

Call out there.

That is really a product of supply and demand balance.

Speaker 3: So driver incentives are really very dynamically driven based on the current balance in the marketplace and we try as best as possible to stay ahead of it. But COVID sort of creates conditions that are prone to spikes. And demand can turn on a dime and supply camp. And so as you get a demand spike in the market, you're...

So driver incentives are.

Really very dynamically driven based on the current balance in the marketplace and retry.

As best as possible to stay ahead of it but COVID-19 sort of creates conditions.

Is that are prone to spikes in demand can turn on a dime and supply can and so as.

You get a demand spike in the market your.

Speaker 3: You're going to see sort of automatically, you're gonna see higher prime time for riders and that money is gonna be turned around and recycled and given right back to drivers to incentivize them to drive more and drive in the right times and places. So, you know, that is really kind of...

Youre going to see.

Automatically youre going to see higher primetime for.

For riders and that money is going to be turned around and recycled and given right back to drivers to incentivize them to drive.

More drugs in the right times and places so.

That is really kind of.

Speaker 3: Impossible to give guidance on that side, but the right side is much more kind of an element that we control.

Impossible to give guidance on that side.

But the writer side is much more kind of an element that we control.

Thanks, so much.

Speaker 1: Thank you. Your next question comes from the line that Brian Feetstrow with Walsh Fargo. Please go ahead.

Thank you. Your next question concerns the lineup, Brian Fitzgerald with Wells Fargo. Please go ahead.

Speaker 6: Thanks guys, a couple questions. Can you talk about the last disputes you're seeing with?

Thanks, guys couple of questions can you talk about the elasticity as youre seeing with programs like wait and save I'm trying to gauge the riders sensitivities to kind of in cost there.

Speaker 7: Programs like Weight and Save, trying to gauge the rider's sensitivities to...

Speaker 7: time and cost there. Um, perhaps we're not as, you know,

Perhaps we're not as you know.

Busy to get to some place in such a.

Speaker 7: busy to get to some place in such a, you know, prestige amount of time. And then for John , follow up to Steven's question on maps. Can you tell us where it's deployed and what the rollout cadence looks like for 2022 or are you keeping that under wraps?

Christine this amount of time and then.

John follow up to Stephen's question on maps can you can you tell us where it's deployed and what the rollout cadence looks like for 2022 or are you keeping that under wraps.

Alright, yes, we've seen we've rolled out sort of scaled up wait and save early on in the pandemic.

Speaker 3: All right. Yes, we've seen we rolled out sort of scaled up weight and save early on in the pandemic. You know, it took the place of shared rides in most markets as the sort of predominant lower cost mode. We've seen, you know, it's really resonated with customers. It's a, you know, you know, by far the sort of primary classic product still makes up the vast majority of our volume, but there is a really important

It took the place of shared rides in most markets.

Is the sort of predominant lowered.

Lower cost mode.

It's really resonated with customers.

But by far the sort of primary classic product still makes up the vast majority of our volume, but there is a really important.

Speaker 3: you know, fragment of riders. And riders at certain times, right? There are plenty of times where a rider who cares about the fastest ride at one moment in their day is very happy to wait an extra few minutes during a different sort of...

Segment of riders and drivers at certain times right. There are plenty of times. They are a rider who cares about the fastest right at one moment in their day.

Very happy to wait an extra few minutes during a different sort of moment in their day and so it's.

Speaker 3: moment in their day and so it's it's also unlocked a more effective way for our utilize drivers.

It's also unlocked a more effective way for us to utilize drivers.

Speaker 3: So weight and save helps us sort of net net, keep drivers busier because we can wait until we have a driver closer by to send them to a particular pickup. So we've been really pleased with how the weight and save product has formed in the response we've seen from riders. And we're continuing to look at ways to innovate on that and to improve on the product.

The wait and save helps us sort of net net.

Keep drivers this year, because we can wait until we have a.

Driver closer by to send them to a particular pickup so we've been really pleased with how the wait and see.

Product has performed.

In response, we have seen seen from riders and we're continuing to look at ways to innovate on that and to improve on the product.

Speaker 4: For maps, yeah, we're not gonna share specifics on where we'll be in when, but obviously we're incentivized with the savings we see when we do roll it out to go as fast as we can while providing a great experience for drivers and riders. Thank you.

For Matt Yeah, we're not going to share specifics on where it will be in line.

But obviously, we're incentivized with the savings we see when we do roll it out.

To go as fast as we can while providing a great experience for drivers and riders.

Thanks, Laura and thanks, Jeff.

Thank you.

Speaker 1: Thank you. Your next question, concerned the line of Brian Novak with Morgan Stanley , please go ahead.

Thank you. Your next question comes from the line, Brian Nowak with Morgan Stanley . Please go ahead.

Thanks for taking my questions I have two.

Speaker 5: Thanks for bringing my questions. I had two maybe somewhat bigger picture. We first wanted to be curious to hear about philosophically, how you think about.

Somewhat bigger picture, we can just wanted I'd be curious to hear about philosophically, how you think about subscription offerings or loyalty programs or any mechanism that youre going to be important to driving higher lifetime value and more stickiness. Among your riders and the second one maybe you can help us understand.

Speaker 5: or any mechanism they think are going to be important to driving higher lifetime value and more stickiness among your riders.

Speaker 5: In the second one, Andy can help us understand about the number of new riders to the platform throughout 2020, 2021, who were, who were never with you before. How is their behavior different from your older cohort? Do you hope the agent to the previous cohort behavior? Thanks.

The number of new riders to the platform throughout 2020 in 2020 , one who a number with you before how is their behavior different from your older cohort do you hope to agents to the previous cohort behavior. Thanks.

Speaker 3: Yeah, so this is located on the first question. You know, we think a lot about kind of the role that the membership program can play. And, you know, I think when you look at how other companies have adopted them and great lessons to learn.

Yeah. This is Doug.

On the first question.

We think a lot about kind of the role that the membership program can play in.

And I.

I think when you look at how other companies have adopted them and great lessons to learn.

Speaker 3: They are, in a sense, I see it as like a hack to become a more customer-centric company. And as you build a membership program, it really gives you, I think, you start to look at the whole business through a different lens. You start to look at member acquisition, member retention. You start to look at not just the customer experience on a transaction-by-transaction basis. Did we win that transaction? Did we lose that transaction? But you start to look at...

They are in a sense.

It is like a <unk> to.

To become a more customer centric company.

And as you as you build a membership program.

It really gives you I think you start to look at the whole business through a different lens you start to look at.

Member acquisition and member retention you start to look at.

Not just sort of the customer experience on a transaction by transaction basis through when that transaction lose that transaction, but you start to look at.

Speaker 3: sort of the cumulative sum of experiences that members have and all of the touch points they have with the company over a prolonged period that really focus on making sure that every one of those touch points.

The cumulative sum of experiences that members have and all of the touch points. They have with the company over a prolonged period that really focus on making sure that every one of those touch points.

Speaker 3: is he is a positive experience that keeps them coming back as a member. So from a from a philosophical perspective, you know, I think I think they can be, you know, great, great tools.

It is a positive experience that keeps them coming back.

As a member so from a from a philosophical perspective.

I think I think they can be great great tools.

Speaker 3: And, you know, we launched our membership program, LiftPink just about two years ago. And, you know, we launched our membership program, LiftPink just about two years ago.

And we will.

We launched our membership program Lyft pink.

Just about two years ago.

Speaker 3: And obviously during the pandemic, we have not leaned into promoting the program very heavily. We've continued investing in it, continued building it. But sort of at moments where the market is predominantly supply constrained, we have not leaned as heavily into the program. But it's still something, you know, long term we're very committed to, and optimistic about, right? And as we think about kind of the framing for lift.

And obviously during the pandemic, we have not leaned into promoting the program very heavily we've continued investing in it continue building it.

But sort of at moments, where the market is predominantly supply constrained we have.

<unk> leaned as heavily into the program.

But it's still something long term, we're very committed to.

And optimistic about right and as we think about kind of the framing.

<unk> tank.

Speaker 3: We look at it as an opportunity to bring together all of the best experiences that Lyft has to offer across our entire transportation network. So from our rideshare benefits, you know, to free back-and-scitter unlocks, to...

We look at it as an opportunity to to bring them together.

All of the best experiences that Lyft has to offer across our entire transportation network. So from a rideshare benefits.

Two free bike and scooter unlocks too.

Speaker 3: upgrades for car rentals, to even our partnership, one of our larger partnerships with GrubHub providing free food delivery through the GrubHub Network. It's something we are excited about and we'll continue to invest in.

Upgrades for car rentals.

To even our partnership.

One of our larger partnerships with Grubhub, providing free food delivery through the Grubhub network.

So it's something we're excited about.

And we will continue to invest in.

Great.

To address your question about riders.

Speaker 2: To address your question about riders, a total active riders grew 49% the over year, we can 18.7 million in the fourth quarter. And we've seen strong new riders those in 2021. And Q4, new riders were up 42% the over year. It may be helpful to provide a little contact on these cases across riders.

Total active riders grew 49% year over year.

Reaching $18 7 million in the fourth quarter.

We've seen strong new rider in 2021 in Q4, new writers were up 42% year over year.

It may be helpful to provide a little context on use cases across writers off.

Speaker 2: off peak and early morning weekday use has been resilient since the start of COVID. And through 2021, we saw an improvement in NICE OUT and weekend use and we believe there's more to do.

Peak in early morning.

The branch.

And through 2021, we find improvement and myself and we can ink and we believe theres more to come.

Speaker 4: One of the other kind of thoughts around you know these co-harks and where people and how people change their transportation behaviors is that one thing we see at times and we would like to see more of is that the peaks get smoother. So there's more.

The other kind of thoughts around.

These cohorts and where people and how people change their transportation behaviors is that.

One thing we see at times, and we would like to see more of is that the the peaks.

Smoother, so theres more off peak times.

Speaker 4: Peak periods of rides are less profitable rides for us because we have to manage a marketplace that at 9 a.m. everyone wants a ride at the same time. So with kind of a spreading out of commute behavior with a change in kind of when people are willing to go, not only will the products like wait and save help us, but also just having more of that off peak time allows us to better manage the overall market.

Periods of rides are less profitable rights for us because we have to.

Management marketplace that at nine a M. Everyone wants walk you right at the same time.

So with kind of a spreading out of commute behavior with the change in kind of when people are willing to go not only will the products like wait and save help us.

But also just having.

More of that off peak time allows us to better manage the overall marketplace.

Speaker 1: Thank you. Your next question comes from the line up. Mark Mane with Evercore ISI. Please go ahead. Hey, thanks. If I could ask two questions.

Thank you. Your next question comes from the line of Mark Mahaney with Evercore ISI. Please go ahead.

If I could ask two questions.

Did you see a drag from omicron active riders in the December quarter.

Speaker 5: you see a drag from on the crime on active riders in the December quarter uh... you've been talking about different use cases but did that cause was like one of the factors why active riders declined sequentially in the in the December quarter could you tell that there's a real fall off in that last eight days of the quarter when it seemed like on the crime really sort of took over and then secondly uh... if rides are thirty percent below pre-COVID levels still well what do you think drivers apply as far as where you were pre-COVID is it more or less than that

I think you've talked about different use cases, but did that cause that one of the factors why active riders declined sequentially in the December quarter could you tell that there is a real falloff in that last eight days of the quarter. When it seemed like omicron really sort of took over and then secondly.

If rides are 30% below pre COVID-19 levels still where do you think drivers supply is versus where you were pre COVID-19 is it more or less than that thank you.

Speaker 2: Thanks for that. I'll keep the first question. On active riders, we were gaining 1% in the fourth quarter versus the third quarter from 18.9 to 18.7 million. Last year, we saw a similar trend. As a reminder, some of that comes from bison speeders. Bison speeders is seasonal and we see dips in Q4 and in Q1 largely related to weather.

Thanks for that I'll take the first question.

On active riders, we were down 1% in the fourth quarter versus the third quarter.

$18 nine to $18 7 million.

Last year, we saw a similar trend.

As a reminder, some of that comes from bikes and scooters bikes and scooters is seasonal and we see that in Q4 and in Q1 largely related to weather.

Speaker 2: The active writer stat of 18.7 million is at 49% year-over-year. And again, I'd point everyone to the revenue per writer is at an all-time high of $51.79. So in the end.

That active rider stack of $18 7 million is up 49% year over year.

And again I'd point, everyone to the revenue per rider is at an all time high of $51 79.

So in terms of active riders.

Speaker 2: quite consistent with what we've seen in prior years, two, three to two, four, and some of that is due to the seasonality of all vaccine scooters, writers. With respect to your question on Omicron, as we all know, Omicron started hitting in the latter part of December . And so we do think that that had some impact on demand. And then we saw that really impacting our business starting in January .

Quite consistent with what we've seen in prior years Q3 to Q4.

And some.

Some of that is due to the seasonality of our bikes and scooters matters with respect to your question on Amazon.

As we all know Amazon started hitting in the latter part of December and so we do think that that.

Sam <unk>.

Impact on demand and then we saw that really impacting our business starting in January .

Speaker 3: All right, then on the driver side, in the fourth quarter, active drivers grew by 34% versus Q4 last year. The key thing with drivers that sort of makes apples to apples comparison, as interesting, is just how much marketplace efficiency we've unlocked. And as COVID hit, over the last couple of years that's just been a...

Alright, and then on the driver side.

Fourth quarter active drivers grew by 34% versus Q4 last year.

The key to keeping with drivers that sort of makes an apples to apples comparison.

Not as interesting is just how much marketplace efficiency we've unlocked.

As Covid hit over the last couple of years, it's just been a.

Speaker 3: a top priority for us to focus on, optimizing every second of every driver's time. So that includes things like the new products we've launched, wait and save, on the sort of economy, and probably pick up on the premium end.

Top priority for us to focus on.

Yes.

Optimizing every second of every driver's time, so that includes things like that the new products, we've launched weight phase.

On the sort of economy and priority pickup on the premium end.

Speaker 3: and the mapping investments and the, you know, sort of.

And the mapping investments.

The.

Sort of.

Speaker 3: algorithmic work that we've done on dispatch and pricing to collectively help drivers.

Algorithmic work that we've done on dispatch and pricing to collectively.

Help drivers.

Speaker 3: be as fully utilized as possible and put every second of their time that they give us on the platform to the best use possible. So in total, drivers are being much more highly utilized.

B as.

As fully utilized as possible and put every second of their time that they.

Give us on the platform to the best use possible.

So so in total drivers are being much more highly utilized now and that is kind of a fundamental value unlock that'll that'll scale. So.

Speaker 3: now and that is kind of a fundamental value on not that it'll scale. So we can scale our supply side of the market much more efficiently as we go forward. Another step just to highlight that's what we've said at LaCole is that ETA is from Q2 to Q4 improved by 30%.

We can scale our supply side of the market much more efficiently as we go forward. Another stat just to highlight that sure. We've said it on the call is that EPA is from Q2 to Q4 improved by 30%.

Speaker 4: And so that also demonstrates a great improvement in the service level.

And so that also demonstrates a great improvement in the service levels.

Speaker 1: Thank you. Your next question comes from the line that Eagle Arunyan with Redbuss.

Thank you. Your next question comes from the line at Eagle or eating in midway.

Please go ahead.

Sure.

Pardon me. Your next question comes from the line of Eagle <unk> with Wedbush. Please go ahead.

Speaker 1: pardon me, your next question, concerning the line at Eagle Arrhenian, with Gladfish, please go ahead.

Yes.

Speaker 1: Your next question comes from the line of the D-PAC and the dependent with all research. Please go ahead.

Your next question comes from the line of Deepak Mishra Danon, we'll.

Please go ahead.

Speaker 8: Hey guys, thanks for taking the question. So just a couple of months, just a follow up on Eric's questions on incremental margins. Is there a right way to think about incremental margin as volume rebound, say in two fifths with three fourths, to be in the kind of 40 to 45% range?

Hey, guys. Thanks for taking the question. So just a couple ones just to follow up on Eric's questions on incremental margins is the right way to think about incremental margin as volume rebounds, saying <unk> <unk> to be in the kind of 40% to 45% range in terms of flow through into EBITDA any color that you can provide in terms of <unk>.

Speaker 8: in terms of flow through into EBITDA. Any color that you can provide in terms of levels we can expect through the year will be great. And then second question, just apologies if I'm not dead. Any reason why G&A was up?

We can expect through the year would be great and then second question just apologies if I missed it any reason why G&A was up.

Speaker 8: and for a few pretty significantly more important how should we think about going forward? Is this start like the new round rate? Anything you can share would be great.

<unk> pretty significantly quarter on quarter, how should we think about going forward is this sort of like the new run rate anything you can share would be great.

Speaker 2: Absolutely. Yeah, in Q4, GNA was largely driven by incremental GNA expenses unique to the Q4 quarter, Q4 quarter. One was incremental spend around policy of 20 million and that policy was against

Absolutely, yes in Q4, G&A was absolute largely driven by.

Incremental G&A expenses.

Unique to the fourth quarter fourth quarter, one was incremental spend around policy of $20 million and that policy was against.

Flexibility and independence for drivers as well as California clean Air and two there were some incremental professional service fees.

Speaker 2: flexibility and independence for drivers, as well as California clean air. And two, there were some incremental professional services that we had incurred in Q4. We anticipate that GNA expense will come down 15% in the first quarter. So, in answer to your question, we don't expect that to be a new high. And in fact, it will be adjusting, adjusting beyond.

<unk> and Q4.

We anticipate that G&A expense will come down.

<unk> percent in the first quarter. So in answer to your question, we don't expect that to be a new high and in fact, it will be adjusting.

Adjusting down.

Speaker 2: In terms of the go-forward profitability and incrementality, we...

In terms of the go forward.

Profitability in increments <unk>.

We.

Speaker 2: We are not giving out less beyond Q1 at this time on Adjusted DepaDOT. And that's largely because of the uncertainty around the shape and pace of recovery of Amokron and how that will impact tough line and bottom line in the near term. That being said, we are committed and we remain committed to being adjusted DepaDOT by possible and to improving our overall profitability over time.

We are not giving outlook beyond Q1 at.

At this time on a debt to EBITDA and that's largely because of the uncertainty around the shape and pace of recovery.

And how that will impact.

Topline and bottom line in the near term.

That being said, we are committed and remain committed to being adjusted EBITDA profitable and to improving our overall profitability overtime.

Speaker 2: It's also important to note, we are guided primarily by our financial more start. Maximizing long term free cash flow growth per year.

It's also important to note.

We are guided primarily by our financial Northstar maximizing long term free cash flow growth per share.

Speaker 2: where that's defined as operating cash flow less capital.

Whereabouts defined as operating cash flow less capex.

Thank you. Your next question comes from the line get Niko give Daniel Bernstein. Please go ahead.

Speaker 1: Thank you. Your next question comes from the line of Nicole DiPnani with Bernstein. Please go ahead.

Speaker 1: Hi, thanks for taking my question. Just sticking with the incremental margin theme. The Q1 EBITDA look implies a margin compression, from about 8% to 1%. The trips are expected to only be down a little. So how much of this is pricing delivered here as supply and demand normalizes? And just can you remind us how important pricing is to the margin improvement story in 2022? Thank you.

Hi, Thanks for taking my question, just sticking with the incremental margin theme.

Q1, EBITDA look imply some margin compression for about 8% to 2% to 1%.

What sort of expected to only be down a little so how much of this is pricing deleverage here as supply and demand normalizes and just can you remind us how important pricing is to the margin improvement story in 2022. Thank you.

Speaker 2: Yeah, thanks for that. Yeah, in terms of our margin in Q1, we're projecting revenues of 800 to 850 million in Q1 revenue. That's up 31 to 40% versus Q1 of 2021.

Yeah, Thanks for that.

Yes in terms of our margin.

Q1, we're projecting.

Revenues of $800 million to $850 million in Q1 revenue.

Up 31% to 40% versus Q1 of 2021.

Speaker 2: relative to P4, that implies a revenue decline of 120 to $170 million, and that is down 12 to 18%. At the same time, we've noted that rise will be down slightly.

Relative to Q4 that implies a revenue decline of $120 million to $170 million and that was down 12% to 18%.

At the same time, we've noted that right will be down slightly.

Speaker 2: The disproportionate, the relative disproportionate decline in revenue quarter of a quarter is driven by the revenue to rise.

The disproportionate relative disproportionate decline in revenue quarter over quarter.

Driven by the revenue pie.

Speaker 2: In terms of the impact on EBITDA, we've given guidance of 5 million to 15 million. So at that midpoint of 10, it implies decimates to EBITDA of 65 million. And as I mentioned, that's largely going through at about 45 cents per dollar revenue.

In terms of the impact on EBITDA, we've given guidance of $5 million to $15 million. So at that midpoint of 10 it implies.

Yes.

EBITDA of $65 million and as I mentioned that's.

Largely flowing through at 40 about 45 cents per dollar of revenue.

And.

Speaker 2: In terms of why you see that decrease in...

In terms of why you see that.

That decrease and.

And revenue provide.

Speaker 2: and revenue provide. It's largely due to seasonality. The first quarter of the year tends to have more short ride share trips, including a step down in the AntsNote ride as percent of total to seasonal low and less use of a high value mode like Lex. And this has an impact provide, which is disproportionately impacting revenue and is flowing through to the bottom line.

It's largely due to seasonality.

The first quarter of the year tends to have more short rideshare trips, including a step down in airport rides as a percent of total seasonal low.

And last use of our high value modes like less and this has an impact per ride, which is disproportionately impacting revenue and flowing through to the bottom line.

Speaker 2: In terms of pricing and revenue,

In terms of pricing.

And revenue.

Speaker 2: pricing provide and revenue provide an impact on profitability. We still see significant leverage in our model. And with top line growth and with rideshare growth, we see the ability to continue to achieve leverage. And the bottom line is, when supply demands, dynamics are more in balance, this can be the better service levels, normalize prices, and that's good for our business and good for bullying.

Pricing per ride and letting you provide and its impact on profitability.

We still see significant leverage in our model and with topline growth and with rideshare growth.

We see the ability to continue to achieve leverage and the bottom line yet.

When supply demand dynamics are more imbalanced. This can lead to better service levels normalized prices and thats good for our business.

Volume.

Speaker 3: All right. And with that, we'll call it a wrap and really want to thank everybody for joining our public item up forward to talking with everybody soon. Thank you. Thank you.

Alright.

We'll call it a wrap and really wanted to thank everybody for joining our call today and look forward to talking with everybody. Soon thank you. Thank you.

And this concludes today's conference call. Thank you for participating everyone else has left the call.

Speaker 1: And this concludes today's conference call. Take it for participating. Everyone else has left the call.

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