Q1 2022 Lyft Inc Earnings Call
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 and unknown risks and uncertainties that could cause actual results to differ materially from those projected or implied during this call in particular those.
As described in our risk factors included in our Form 10-K, a for full year 2021 filed on April 29, 2022, and in our Form 10-Q for the first quarter of 2022 that will be filed by May 10, 2022, as well as the current uncertainty and unpredictability in our business the markets in economy, you should not rely on our.
<unk> looking statements are 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.
Should be considered in addition to and not as a substitute for or in isolation from our GAAP results.
The results, including a reconciliation.
May be found in our earnings release, which was furnished with our form 8-K filed today with the SEC.
It may also be found on our Investor Relations Web site I would now like to turn the conference call over to <unk> co founder and Chief Executive Officer, Logan Green Logan. Thanks.
Thanks, Tony Good afternoon, everyone and thank you for joining our call.
I'm incredibly anniversary this month.
Yeah.
Coming back to the first decade can be divided into two chapters.
And chapter one we overcame the odds and pioneer in the industry.
Being the first to launch and scale peer to peer rideshare.
A new regulatory category and establish shared rides.
<unk> adjusted EBITDA basis.
During the first in our industry to achieve this.
The earlier than we initially anticipated.
Now we are turning to us.
The page to our most exciting chapter yet in.
In chapter three we plan to scale lift into the most impactful.
Pleased to serve as our North Star.
Charles Best Transportation.
There are a lot of work in front of us and I'm incredibly.
Excited about our roadmap to build lift.
Turning to Q1.
Results exceeded our outlook.
January ride volumes were soft due to omnicom.
Versus January and grew further.
Strong recovery rideshare rides.
For the first quarter reached a new Covid hi.
And <unk>.
Marketplace has been getting healthier.
Total Astro drivers in Q1 were up by more than 40%.
Patients were up 78% versus Q1 last year.
<unk> with what we saw last year drivers in Q1 gave more rides on the drive each is in Q1.
We're 30% better on average.
And then the first quarter of last year.
Even as gas prices increased in March average driver earnings were up year over year.
Our analysis shows that in March drivers nationally spent an average of 61% more on gas per hour than they did in March of last year.
Net of this increase.
Including gypsum bonuses.
To be clear this is Fred.
Earning on other App based platform.
Thanks.
And we ended March with more active drivers than we had at the end of January .
And have taken steps to help us.
Offset these costs.
We instituted a 55% per ride fuel surcharge and most.
I want to be clear the average hourly earnings figure I just discussed exclude any benefit.
From this fuel surcharge, which didn't go into effect until March 'twenty one.
Through the end of June .
And our partnership with upside.
Good driver discounts on gas was the highest savings available to talk about Q2.
Even as our margin.
A place that's been getting healthier.
In preparation for further growth.
Should we expect to invest strategically in order to deliver them.
The best possible experience for Lyft users.
We believe more demand is ahead of us, particularly in the second half of this year.
Keep in mind, our Q1, rideshare arrived volumes, which hit a new Covid hi.
Only.
And we see significant runway.
Key markets like San Francisco.
Which was less than 50% recovered in Q1 versus Q4 of 2019.
For the year is also expected to help drive demand.
We remain cautiously optimistic that revenue growth for full year 2022 will accelerate versus 2020.
Paulo virtually.
Thanks, Logan and good.
And everybody.
Congratulations to the team, let Kent anniversary and various financing partners.
And this company Hey, guys expiring chapter.
Logan said focused on building our business for the long term. This includes investing in a healthy marketplace, which will in turn drive scale and operating leverage.
Before I turn to our financials and then amended 10-K on Friday.
To correct, a technical accounting issue in Q3, and Q4 related to how our reinsurance coverage with reflected in those periods. This restatement costs, our full year 2021, GAAP net loss to increase by 5%.
Or 52 8 million cubic.
To be clear this adjustment did not impact our revenue cash balances or non-GAAP results in any period. It also does not reflect any change in the underlying performance of our business. Please refer to our SEC filings for more detail now, let's talk about Q1 rideshare rides are stronger than we anticipated.
And the impact that <unk> has had on demand in January we anticipated that ride volumes will be down slightly in Q1 versus Q4, and even though gene Reilly tharp demand rebounded meaningfully in February and March as a result, total rideshare rides in Q1 were up quarter over quarter and reached a new coed high.
On the supply side, we ended Q1 with more active drivers than we have at the end of Q4 relative to last year as Logan mentioned total active drivers were up by more than 40% and new drivers were up 70%.
Accordingly, we reported Q1 revenue of $876 million.
Up 44% year over year exceeding our guidance range.
And these were down 10%. This reflects the impact of Amazon on the first month of the quarter and seasonality headwinds with shorter rides and less use of bikes and scooters.
We had $17 8 million active riders in Q1, which includes rideshare as well as bike and scooter rides. This represents an increase of more than four 3 million people or 32% versus last year.
So it's a mix of both new and returning riders.
Active riders declined by 5% in Q1 versus Q4, reflecting the impact of <unk> and reduced bikes and scooter usage in terms of the recovery, it's worth noting that active riders increased 9% month over month in February and another 12% and March new rider Activations were up 22% month over.
Month in March remember that rider Activations and at the end of the quarter are typically dilutive to revenue per active rider since there is less time for those riders to take right.
Even though revenue per active rider in Q1, but the second highest its ever been at $49 18.
Up 9% or roughly $4 versus Q1, 'twenty, one and just 5% short of the peak in Q4 'twenty one.
Even while revenue per active rider benefited from a sequential increase in bi frequency. This was more than offset by lower revenue per ride in line with the seasonal trends I mentioned earlier.
I'm in line I want to note that unless otherwise indicated all income statement measures are non-GAAP and exclude stock based compensation.
In our earnings release, 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.
Contribution margin in the first quarter was 57, 4% exceeding our guidance of 56, 5% on a sequential basis contribution margin declined by approximately 230 basis points, reflecting a shift in our revenue mix versus Q4.
The outperformance on revenue and contribution margin relative to our guidance helped drive strong Q1 contribution of $503 million.
Let's move to operating expenses operations and support expense for Q1 with $92 million up 11% year over year.
That represents roughly 11% of revenue flat with Q4, but down more than 300 basis points versus Q1 last year, reflecting leverage against top line growth.
R&D expense in Q1 was $103 million down.
<unk>, approximately 29 million year over year, reflecting the sale of our level five self driving division in Q3 of 2021.
As a percentage of revenue R&D expense was 12% in Q1 down from 22% in the year ago period.
Q1 sales and marketing was $115 million up just 2% sequentially as a percentage of revenue sales and marketing was 13% within sales and marketing incentives or 3% of revenue, which is a mix driver referrals. In addition to incremental rider incentives.
G&A expense in Q1 was $167 million up 7% versus Q1, 'twenty, one G&A expense as a percentage of revenue was 19% down roughly 650 basis points from 26% in Q1 of 'twenty one.
The decline versus last year is a reflection of better leverage on a higher top line.
Relative to Q4 of 'twenty, one G&A expense declined 23% and reflects reduced policy and professional services spend.
In terms of the bottom line, our Q1, adjusted EBITDA profit of $54 $8 million was better than our outlook at between 5% and $15 million. This outperformance was driven by top line strength and expense savings.
We ended Q1 of 'twenty.
Before I move to our outlook. It is important to note that <unk> and other macro factors like geopolitical dynamics and inflation.
With that let me start by.
By providing some important context.
We are encouraged by the recovery in demand since January even if our marketplace something getting healthier we want to continue improving.
Over the past two years.
Paris evolving COVID-19 conditions have late near term demand trends highly variable federal stimulus and other pandemic related dynamics has served as headwinds to driver supply together. These factors create rapid shifts in demand and in supply that make it more difficult to achieve a healthy balance when <unk>.
<unk> to a more typical environment.
Coming out of on the Con, we want to invest more in driver supply and QQ to move our marketplace. Further in the balance this will set us up for the long term and ensure we're doing everything we can to take care of drivers and riders with the best possible experience.
We also expect to invest in key business initiatives to support the continued growth of our company.
These investments will have an impact on the leverage we are able to show in Q2.
Over time as our marketplace health continues to improve this will allow us to support more light volumes with better service levels. This will in turn allow us to achieve significant operating leverage.
Now let me provide our Q2 outlook, we expect revenue of between $950 million to $1 billion, which would represent quarter over quarter growth of 9% to 14% in terms of profitability. We expect Q2 contribution margin will be approximately 56%, which reflects the impact of growth in <unk>.
<unk> on our leverage.
Post Amazon and feel the worst is behind us and this coming quarter as an opportunity to invest in kick starting the next year of growth.
We'll do so with a focus on drivers.
Overall marketplace and some additional brand marketing.
As a result, we expect adjusted EBIT dollar between $10 million to $20 million for Q2 for.
For the full year 2022, we remain cautiously optimistic that we will grow revenues faster than the 36% achieved in 2021 on a go forward basis, even as we invest in our business, we remain committed to being adjusted EBITDA profitable.
That.
Let me turn it over to John to provide key updates on the business and our strategy.
Thanks, Helane I'm excited for our next chapter in ready to scan lift into the most impactful modern transportation network.
Let me talk about what this means and how we are going to get there.
First a modern transportation network brings today's fragmented set of transportation services together into one unified customer experience today.
Today people have to deal with 10 different companies and go through 10 different channels to stitch together all of their ground transportation needs.
In much the same way you can't use a mobile phone without attaching it to one of the big wireless networks in the not too distant future. It will become impossible to imagine you're using a car and other modes of transportation without connecting to our network.
And the third chapter will be about completing the Lyft network.
<unk> rideshare bikes scooters rentals transit and even personal vehicles to maximize value for our customers.
Our singular focus on transportation is a big competitive advantage.
<unk> us to go deeper within the transportation ecosystem to build experiences that go beyond today's status quo and every mode.
Growth into the future.
Take our rental car programs.
As a reminder, we have lift rentals, which is consumer facing.
And express drive, which is a driver facing rental program.
Both contribute to our marketplace efficiency and allow us to support more of our customers' use cases.
They also give us the foundational data and hands on experience, we need to keep building, our fleet management technology and capabilities that maximize vehicle uptime and lower overall fleet operating costs.
These exact platforms and skill sets are critical into the future as we drive maximum returns for our partners.
Now, let me provide an update on our three key strategic areas of focus for this year. Please.
These include one accelerate our core to expand emerging and new products, including our bike scooter rental cars and vehicle services.
Three invest in our innovation stack.
Let me start with accelerating our core.
Even as we continue to improve our service levels. We will also deliver innovations and partnerships that allow us to grow riders and use cases.
Great example is priority pickup which is our rideshare mode that gives riders access to an even faster pickup.
We began rolling it out last year, and we've seen high repeat usage.
<unk> delivers meaningful value to riders, while also making our network more efficient better understanding rider preference.
We are working to scale priority pick up to more markets and use cases as we progress through this year.
In terms of partnerships, we recently renewed our relationship with chase the largest credit card issuer in the United States.
Chase card members, who ride with Lyft will continue to receive preferred points on those rides for the next three years.
This partnership gives a millions of chase card members, even more reason to use lyft.
The initial program produced great results, allowing us to meaningfully increase card members transportation spend with Lyft.
Next I'm going to talk about how we've been expanding our emerging and new products.
In Q1, we grew the number of electric vehicles available to drivers through our express drive program in California.
This work is part of our commitment to achieve 100% of electric vehicles on our network by 2030.
We've also been working to expand with rentals to new markets, including Chicago, and San Diego, bringing our best in class consumer rental experience to more customers.
In Q1, we saw more first party rental activity than ever before with growth of more than 55% versus Q4.
And by building on our existing real estate footprint, we can optimize our investments in these regions.
Let me spend a moment on what we've been doing to expand and diversify our micro mobility operations thesis.
These systems deliver compounding value as an additional entry point to our network.
We've partnered with spin to make their scooters available through the Lyft App.
Through this partnership we can make more micro mobility options available to Lyft riders nationwide.
This integration is available in select USA today, and will ultimately scale to 60 markets.
Turning to our bike share system in April we entered into an agreement to acquire PBS urban solutions.
Leading global supplier of Bankshare equipment and software.
We're excited about this acquisition because it complements and expands our owned by share model.
<unk> has a significant hardware footprint and will bring an incremental 70000 bikes in 39 markets to our business.
We are excited to build on our strong relationships <unk> has established with cities and operators around the world to support and expand these systems.
The transaction is expected to close in Q2 subject to customary closing conditions.
Finally, let me highlight some of the investments, we're making in our innovation stack.
This refers to the R&D, we're doing to advance the technology that underpins our network.
We continue to advance our pricing technology, specifically the feedback mechanism that enables our systems to adjust to sudden changes in demand.
This has significant value across our network before particular use cases like airport rides.
Demand for airport pickups can be highly variable depending on the volume of arrivals and departures at a given time.
And by enabling our systems to detect and adapt to the southern shifts as quickly as possible, we can optimize our service levels at airports and capture more right.
We are applying a similar approach to address supply demand shifts that result from events and other unique traffic patterns.
Innovations like these can enable us to address more rides and deliver a better rider experience increased driver earnings and improve our top line.
Operator, we're now ready to take questions.
Thank you and as a reminder to ask a question you will need to press star one on the telephone keypad.
Gander obese tier one on your telephone keypad until the Joe Your question press the pound key.
Our first question comes from the line of Doug Anmuth of Jpmorgan. Your line is now open you may ask your question.
Thanks for taking my question I, just wanted to follow up on some of the comments around the investments you driver supply.
You talked about drivers being up 40% year over year and up sequentially from the year end 'twenty one.
I hope you can help us understand what's going on with drivers around higher gas prices and why you feel the need to invest that.
That much more on driver supply now and then can you help us just in terms of quantifying how much spend there might be in an upcoming quarters. Thank you.
Yes.
This is John Hey, Doug.
Just for context, obviously, we're reporting on Q1.
It was.
The largest spike in Covid cases of the pandemic and one.
One thing to think about like typically when we're managing the marketplace. There is much more organic growth.
Or change.
And when you come out of a large spike or a large change to the marketplace and actually we went through multiple of these large spikes.
The.
Importance of quickly getting service levels back.
But in a lesser organic way.
Part of what's happening here, so I would just tie those comments to the fact that Q1, there was omnicom and we want to.
This quarter Q2, which we're talking about what that guidance is about kick starting the rest of the year's growth.
We feel that it's the right investment to make there's no underlying fundamental foundational concerns without driver earnings.
Compared to last year are up average about $24.
And that was before we put in.
The 55 gas surcharge.
Yeah. So one thing that I think is important to understand about the marketplace is that.
Yes.
Client adjustments are like moving the prepayment its very very slow.
As demand can change on a dime.
And what we saw at most of the marketplace moves organically alright, so they're only kind of modest things that we can do this impact.
And what we saw coming out of Amazon was obviously is.
Demand went down.
More drivers.
Signed off and then demand turned on a dime and shot back up.
And drivers.
Continued to rejoin the platform. So we look at our role and it is again most of it is happening organically.
The marketplace, but when we look at our role we look for what are the positive ROI opportunities, where we can invest to accelerate the trend we're confident in and we're confident that we have turned an important page in the pandemic.
The policies across the U S across the world.
Our adjusting.
And people are getting very comfortable living with COVID-19.
And we feel very confident that this is the right time to.
Put a little extra.
Investment behind ensuring we are ready to handle that demand and that where they are providing the best service levels. We can so we are making.
<unk>.
Positive investments that where we have high confidence that they will pay off in the long long term for the business.
And for shareholders.
Thank you and any any more you can add just around quantification.
Hi, Helane I can add a little more context on our investment in.
In addition to investing and drivers we are really focused on investing in drivers.
Marketplace.
And.
And a bit of marketing as well as we anticipate.
Continued comeback in demand.
<unk>.
In terms of our cost categories, the low cost of revenue were projecting that.
R&D sales and marketing and G&A.
Increased.
About one percentage point as a percent of revenue.
This quarter versus last quarter, Q2 versus Q1 and what we've.
We see impacting our margin this quarter, we believed embankment and drivers and.
And other initiatives that are supporting our growth.
Ultimately are going to pay off.
And the healthier marketplace.
More right more topline and that drive the flywheel of leverage and we feel really good about what we're seeing in terms of demand for <unk> and in the back half.
Great. Thank you.
Okay.
Thank you. The next question comes from the line of Eric Sheridan of Goldman Sachs. Your line is now open you may ask your question.
Thank you so much for taking the questions on in prior calls you talked about some pockets of market concentration that are still well below pre pandemic levels could you give us a sense of sort of geographic skew will you see still room for fair bit of pre pandemic.
Globally in the business broadly and then within the business itself from a product towards type of rides standpoint, and we continue to help us understand in terms of either long or short duration wise between the work airports elements of Skus that are driving the business versus the other could still be recovery.
Over the next couple of quarters. Thank you so much.
Yes.
Yes, a couple of things, we see a ton of headroom for growth on the West coast, particularly.
Lift is always over indexed our share on the west coast markets. So I think that.
That provides a real upside for us as the business recovers cities like San Francisco or so just.
Just about 50% recovered.
Nationally the averages 70% recover.
It recovered so we feel like Theres, a lot of great headroom there.
Other area.
Where I think theres a lot of headroom in the businesses on shared rides and we have.
Shared rides live in two markets today alive in Philly and.
In Miami.
But we are quite excited about that.
The opportunity to launch shared rides.
For those of you, who remember that back in 2019.
They were very meaningful part of the business.
And again, an area, where we're lift was known.
We were very known for our shared rides product.
So we're excited to light that up again, and imagine that that will make up a meaningful part of the business by the end of the year.
Yes. Thanks for the question and in terms of airport rides, we mentioned that in Q4 airport rides were 9%.
We're pleased that in Q1, it's stayed relatively flat at 8% of rides and we feel.
Bullish about this going forward with the rebound in travel.
In addition beyond the airport.
<unk> increasing throughout the rest of the year, we also see headroom for nice al that still.
In total right below where it was pre pandemic and we think that all of that tailwind with us on that one.
Additionally, we think theres more headroom with return to work.
And within travel and related to return to work, we also see headroom with business travel.
Big opportunity for us.
Thank you.
Thank you next question comes from the line of Stephen Ju of Credit Suisse. Your line is now open you may ask your question.
Okay. Thank you. So can you talk about the benefits to either retention rates or frequency of users you may see in those cities where.
You have that expanded transportation offering with micro mobility.
Perhaps think about.
<unk> can help transform the business in those markets, where you don't have a bank footprint.
And also last quarter I think you've talked about the desire to invest in to a more I guess purpose designed maps product that's appropriate for lips usage versus the general use case. So can you share. What's your progress has been there and when we can start seeing you guys start to ship some products. Thanks.
Sure. This is John I'll talk to the banks and Logan can talk to the maps.
You mentioned.
We're working towards acquiring <unk> excited about the acquisition.
We're seeing in 2021 more than $2 4 million first time riders across the U S tide.
<unk> operated bikes and scooters.
Some other stats around kind of how how big our current presence got it and then I can talk to what we get with PSC in New York City, 40% greater than 40% of <unk> on our platform where by Citi bike in 2021 Citi bike. If you considered a transit system is the 25th largest in the United States. So we are seeing positive success with this.
Doc based kind of city partnership model, where we have exclusive relationship with the city PVC had Douglas as well and had done this globally.
And by doing that acquisition, we double.
More than double the number of bikes on the ground.
And it really helps when we're.
We have R&D.
Going into building, a better fleet ebay, which we just.
Launch, which is doing really well, it's lowered our cost of operations to be able to spread that R&D costs across many more geographies doubled the footprint.
Is great.
On the revenue side, we can.
So that hardware into a much larger base of cities and so excited about that.
Acquisition excited about the trends in our bike business as a way for people in very dense urban environments to get affordable rides and to become loyal with users.
And then on the mapping in France.
A couple of things I wanted to just give a little more color on how we're approaching our mapping investment or mapping work.
Bob.
First we're building on top of open Street map, which is a longstanding open source project and you have a lot of major companies Amazon.
Being a couple of the larger ones who are.
Heavily invested in that and making it a success.
The project has accelerated a lot over the last number of years.
Has gotten quite good so that's the foundation of our of the lift map and we have.
<unk> been putting a lot of energy into capturing unique data that we have as a company we have.
Tens of thousands of cars hundreds of thousands of cars on the road.
At all times.
Capturing data sending that back to us about.
Traffic speeds.
Recapture safety data recapture road closures et cetera, and and we're able to feed all of that back.
Two to create unique value add layers to the to the map.
And in some cases edits and improvements to the math.
And if you see a lot of that work is already evident in the product today.
So a lot of those factors mean that a driver guest.
Yes, there are few seconds faster because we've navigated them around.
Around the street closure or we've more accurately identify that that that driver is physically closer to you may actually get stuck in.
Traffic for longer than a driver thats physically a little further away, but has a straight shot on the street without traffic.
There are some of the more fundamental improvements that show up in dispatch.
With the.
<unk> navigation products.
Just a really exciting milestone where we have.
<unk> completed our 10 millionth ride.
On the lift in App stack. So this is this is something we're still.
We're still scaling this up.
And iterating on it to make sure that we hit the.
The sort of experience levels, we're targeting but it's starting to get really really good and you should see that scale up.
A much larger way over the course of the year.
Thank you.
Thank you. The next question comes from the line of Mark Mahaney of Evercore. Your line is now open you may ask your question.
Great a couple of questions. Please.
When do you think Raj will recover to post COVID-19 levels is that what is that assumed in your guidance for kind of accelerating revenue growth this year versus last year and then.
You provided.
Some color on rider incentives as a percentage of revenue I think it was 3% which looks like its pretty consistent.
Driver incentives, how does that look as a percentage of revenue with what you've had in the past and then you gave guidance for the next quarter on some of the Opex lines. What are you assuming is goodnight, what should we assume is going to happen with driver incentives as a percent. Thank you very much.
Okay, let's start about let's talk about since dynamics.
And incentives classified as contra.
Q1, they were $350 million and that was up 3% quarter on quarter.
And they are important lever to achieve balance in our marketplace.
That being said.
We are continuing to invest and drive our incentive.
Contracting content per Y peaked in Q2, 'twenty, one and we still believe that that peak.
And Im working backwards on your questions I think your question before that was around you might help hitting now that you're back to your question.
Well.
Any particular guidance you'd want to give us on those that contra.
Contra item for the June quarter, and then what should we expect <unk> to be above.
Back to pre Covid levels, not just COVID-19 high but higher than then within where you were pre COVID-19 in the stat is that assumed in the guidance for the year. Thank you.
Yes.
In terms of our optimism about full year revenue.
We do believe that full year revenue will be at faster than the growth, we saw last year or so higher than 36% year on year growth.
Zach.
And by which we get there.
Quantity of life and that average revenue provides.
Hi, I don't want to comment on and so therefore don't want to talk about like when we think that will pre COVID-19.
Goodbye.
But as you said, we think that there is a ton of headroom and that we're still at 70% there now.
Lots of headroom on the quantitative side.
To get there.
Okay. Thank you very much.
Thanks.
Next question from the line of Deepak Matthew Brannon of Wolfe Research. Your line is now open you may ask your question.
Hey, guys. Thanks for taking the question, yes, actually just wanted to kind of expand a little bit on the last question previously when you've had the need to build the driver side.
Why side large, Florida was tied to consumer prices and largely kind of update us higher earnings and incentives to drivers and then it sounds like this time around these investments are somewhat coming from the <unk> is that the right characterization or is it still going to be funded by higher prices, how should we think about kind of.
What type of incentives are in order to kind of.
Build on driver supply. Thank you.
Yeah.
<unk>.
So.
In terms of funding the <unk>.
The investments and drivers.
Some of that does concentrates from pricing.
Got it.
And the premiums that we see in primetime confined the investments and drivers.
Some of our second quarter investments in R&D, and what we're doing to invest in the market place and Thats what you see.
This quarter impacting our outlook on overall EBITDA margin.
Investments, which ultimately invest in healthy marketplace benefiting both driver.
And riders.
That's impacting our Q2 margin items.
Okay, maybe if I can ask one more youre guiding for a contribution margin to be down quarter to quarter was there any one time things that we should be aware of.
The tissue guys overall.
Was there anything that we should be aware of thank you.
So I'd say that again any one time.
And the contribution margin outlook for <unk>.
There is nothing one time impacting our contribution margin and antigen.
Got it okay.
Thank you we have the next question comes from the line of Eagle Iranian of Wedbush. Your line is now open you may ask a question.
Hey, good afternoon guys.
Just on the.
<unk> guidance your revenue guidance as we talked about.
February and March trends.
They were doing and improving.
Can you talk a little bit about whats built into your expectations for <unk>.
If theres any color you can give on April .
Are you seeing any factors from kind of inflation on the macro or.
Perhaps people not going out as much or as there'll be opening kind of.
<unk>.
On page just what's built into your expectations around that number.
Yeah, absolutely so.
Obviously in January we took a big dip as we saw the impact of Amazon and then as Logan alluded to in his comments we saw.
Demand was down in February and March.
Okay.
Q2 guidance is informed by.
Our exit rate in terms of rides per week at the end of the first quarter and were projecting low single digit growth.
And the average weekly rides that bottom forming.
Our second quarter guidance.
That low single digit growth rate is consistent with.
That seasonality that we typically see Q2 versus Q1, and so we felt like that.
Our premium sort of outlet for detail.
In terms of.
Thank you Shannon or something like that.
Scott.
Matt.
Yes.
Impacting our revenue guidance, our revenue guidance is driven by our outlook arrive and.
Thank you.
Really what's driving the 952 1 billion.
Okay. Thanks, and then maybe a little bit more detail.
Can you talk about getting service levels back.
So we're investing in that.
<unk> come back and continue to normalize can you just give a little bit more detail.
What that means what it is about the service levels that.
Youre not happy with or are there specific metrics that youre looking for.
Rider driver ratio or just any more color around that that could help us understand where we are now and where we want to get by the end of the year.
They are one of the metrics that we like to look at his average I'd Etfs. The good news is in Q1, they improved by 30% year over year, but again like we expect demand to keep increasing.
And we need to get supply.
Supply side ready for that.
And so that's one of the main metrics, we look at it along with <unk>.
Price and.
Quantity of driver hours and.
Sessions on the demand side.
Sure. Thank you.
We have the next question comes from the line of John Blackledge from Cowen. Your line is now open you may ask your question.
Great. Thanks, two questions first on shared rides.
Did they perform in Philly and Miami in <unk>, 'twenty, two and kind of what's the cadence for <unk>.
<unk> shared rides and other markets the rest of the year and then secondly, a little bit of a longer term question. If you could discuss invest.
Investments in EV infrastructure for drivers as worth point points to the 2030 goal. Thank you.
Great Yes so.
In April shared rides were roughly 9% of total rideshare rides and affiliated across really in Miami.
The cadence for reopening new markets.
Will those sort of new AI based on how we see initial launches go.
And in kind of early success of that so we.
We expect it to be over the course of the year.
But broadly expected to be.
To be fairly fully ramped by the end of this year.
No.
And then the <unk>.
Second question on electric vehicles.
Tony.
Can you ask that question again.
Yes.
The investments that youre, making in charging stations across the country.
Any for the drivers any kind of update there that might differentiate you from competitors.
I'd say the biggest differentiation is that we have the flex dry program. So today drivers can run Tvs from flex drag, which is our independent manage subsidiaries.
Which includes free charging.
Actually <unk> been available through our express drive which is the external name we call it for drivers.
For years, they've had had.
Yeah.
First time with that.
The financial equation for a driver.
Made evs.
Data in some cases better financial.
This isn't.
Then.
Combustion engines.
One interesting fact is that as we saw gas prices shoot up as a number a number of drivers have both again as powered car LTV not a large quantity, but a number do.
And we saw those sort of.
Every driver who had access to an EV basically jumped in that event started giving giving rise in that EV as gas prices shot up so, whereas historically they have been at a premium.
We see in the next couple of years, there being a turning point, where evs can provide much more kind of consistent and cost structure.
Our diverse.
And right now when you layer in all the incentives it is roughly.
Roughly a breakeven, but we think that that sort of is going to tip over time, and so where we're really.
Interested in doing what we can to remove those barriers for drivers. So they can make in the <unk>.
On top of that and obviously, it's going to become the majority of our.
Our business in the next several years.
Thank you. The next question comes from the line of Brad Erickson of RBC. Your line is now open you may ask your question.
Hi, Thanks, just a couple of follow ups here Lane.
The Concho portion.