Lyft, Inc. (NASDAQ:LYFT) Q4 2022 Earnings Call Transcript

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We wanted to talk more about it with our users simply so we added more in app messaging, where it made sense and it worked. So that was the primary thing. You also asked about how we, or if we can share kind of as a percent of maybe bookings or something revenue, we do track that. And that is one of our internal targets for yearend that we are focused on, we’re not sharing that externally at this time. And then I think your last question was around supply, and kind of why is that happening? And I would say it is broadly macro. For us supply was impacted dramatically by the pandemic, and important for drivers is consistency of earnings. And now that we’re out of the pandemic, and the rideshare industry has moved past that there’s consistent earnings.

And so as a macro level, it’s come back, it started coming back towards the end of the year, but really, I’d say, is Q1.

Operator: Your next question comes from the line of Benjamin Black with Deutsche Bank.

Benjamin Black: Great, thanks for the question. So circling back on that 1Q guide, guy. Can you help us understand what’s embedded from an incentive level or contra standpoint? Since driver supply levels are so strong? And then I just want to follow up on the 2024 EBITDA guide. I mean, I guess the question is, why are you reevaluating this early? It seems like that the issues that you’re mentioning are really near-term challenges. So what’s exactly changed over the last three months that you’re rethinking the longer-term outlook. Thank you.

John Zimmer: Yes, so let me take that first. And then then pass it to Elaine for your question about contra. And so as Logan mentioned, there was a change in base price that we made. But then, as competition removed their fuel surcharge, we needed to ensure we had competitive service levels. We just want to ensure we prioritize that, that’s critical in this really good opportunity that exists right now, where the market is finally back in balance, we want to ensure we make it really easy for people to choose Lyft. And so that is the priority obviously, we want to do that profitably. And we want to just because there was quite a bit of changes over the past few months. We want to share our go forward with a little bit more information and confidence. And then Elaine you want to take contra.

Elaine Paul : Yes, in terms of Contra, just to set a little context in absolute terms in Q4 incentives in contra revenue were $337 million, which was up 17% versus Q3 flat year-on-year and still below the prior peak. But as we look to Q1 with the tailwinds, we’re seeing to supply we expect contra revenue incentives will be down quarter-on-quarter, both in absolute terms and on a per ride basis. And this reflects the benefit from the organic supply tailwinds. However, the extent of our investment will always depend on the real time market conditions and supply demand balance.

Operator: Thank you. That is all the time we have for questions today. I will now turn the call back to Logan Green for closing remarks.

Logan Green: All right. Thank you everybody for joining the call today. And we look forward to connecting again soon.

Operator: This concludes today’s call. You may now disconnect.

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