WEBVTT - Lyft CEO David Risher Talks Missed Estimates

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<v Speaker 1>Let's get back to earnings and Lift the right Chair

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<v Speaker 1>company reported before the bell this morning. CEO David Risher

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<v Speaker 1>joins us live from New York City to discuss and

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<v Speaker 1>the basics of it are that bookings, the outlook, missed

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<v Speaker 1>estimates or street expectations, that the stock is down significantly.

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<v Speaker 1>What is happening right now with Lift, the environment that

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<v Speaker 1>Lift finds itself in.

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<v Speaker 2>Yeah, so, hey, it's good to see you again. I mean, look,

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<v Speaker 2>it's to me, it's a little curious, right, And this

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<v Speaker 2>is sort of the way the world works sometimes. So

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<v Speaker 2>we just had our first profitable quarter ever, which is

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<v Speaker 2>an enormous accomplishment thanks to a lot of work for

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<v Speaker 2>the team. Revenue grow forty percent year on year, Bookings

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<v Speaker 2>and rides around midteen, seventeen percent, two hundred and fifty

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<v Speaker 2>six million dollars of free cash so just and service

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<v Speaker 2>levels that are fantastic, fastest pickups we've had in a long time,

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<v Speaker 2>Fastest are more drivers than we've ever had. So all

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<v Speaker 2>those things are incredibly strong and they indicate a strong marketplace.

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<v Speaker 2>And we reiterated our full year guidance and our multi

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<v Speaker 2>year guidance as well. Yes, mid team growth, so all

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<v Speaker 2>those things were good. I think what people are looking

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<v Speaker 2>at is they're seeing what I would consider to be,

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<v Speaker 2>you know, incredibly small, you know, sort of kind of

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<v Speaker 2>adjustment around what we've said about the future the next

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<v Speaker 2>next quarter, in the next couple of quarters. And this

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<v Speaker 2>to me sort of signifies, you know, sort of the

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<v Speaker 2>world we live in. Like the things that we think

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<v Speaker 2>about are one hundred and sixty billion rides in the

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<v Speaker 2>US in total private cars, and we are little by little,

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<v Speaker 2>you know, in a very very disciplined and customer obsessed

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<v Speaker 2>way growing our business. You know, I think Wall Street

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<v Speaker 2>sometimes looks at short term things and gets a little

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<v Speaker 2>bit overly focused on that. I'm thinking about the long

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<v Speaker 2>term and super excited about the prospects.

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<v Speaker 1>David. There's some David Risher's strategy and plans that I

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<v Speaker 1>see playing out, like price lock. Yeah, a paid feature

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<v Speaker 1>that's going to have an impact maybe on the top

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<v Speaker 1>and bottom line. But why, why is that the plan

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<v Speaker 1>for you?

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<v Speaker 2>Yeah? So price lock is a way for riders to

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<v Speaker 2>lock in a price just like it sounds like, on

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<v Speaker 2>the same route and same time every day. It's really

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<v Speaker 2>in first met for commuters, and it's available today by

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<v Speaker 2>the way. I encourage everyone to check it out. It's

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<v Speaker 2>kind of in soft launch, and the idea is it

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<v Speaker 2>takes away that what I think is one of the

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<v Speaker 2>most hated features of all ride share, which is which

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<v Speaker 2>is surge pricing, right and trying to get rid of it.

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<v Speaker 2>You can never get rid of it completely, but we

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<v Speaker 2>can certainly give writers a way to basically pay some

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<v Speaker 2>all subscription fee and lock themselves into a consistent price.

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<v Speaker 2>I think it's great and I think it's the sort

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<v Speaker 2>of thing that's going to grow the business in the

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<v Speaker 2>long term. Of course, it's an investment, right, and you always,

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<v Speaker 2>you know, invest in new features that you have a

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<v Speaker 2>lot of conviction around. But this again is our customer

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<v Speaker 2>obsession is what drives profitable growth. Again, we're profitable now

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<v Speaker 2>and we think there's going to be a great growth

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<v Speaker 2>driver for us.

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<v Speaker 1>Advertising is a battleground as well. You know, I am

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<v Speaker 1>so familiar with the lift ap but why is advertising

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<v Speaker 1>the way to go? And what with who with?

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<v Speaker 2>What?

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<v Speaker 1>Right you think about parallel industries?

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<v Speaker 2>Yeah, so, you know, think about you know, of course,

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<v Speaker 2>let's let's zoom wig out for a second. Since the

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<v Speaker 2>history of advertising, you know, brands have tried to come

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<v Speaker 2>up with new ways to talk to their consumers, right,

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<v Speaker 2>and one hundred years ago, maybe it was billboards, then

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<v Speaker 2>maybe it was radio ads, then maybe TV ads. Obviously

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<v Speaker 2>more recently internet advertising. We see this kind of mobile

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<v Speaker 2>advertising literally advertising that comes to you in the car

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<v Speaker 2>where you're going, as an incredibly important effectually a sector

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<v Speaker 2>that we're really going to help build out because if

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<v Speaker 2>you think about it and reflecting on some of the

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<v Speaker 2>earlier conversations you were having around Reddit, for example, we

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<v Speaker 2>have an enormous amount of first party data, right, two

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<v Speaker 2>million rides a day, every one of them going to

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<v Speaker 2>a seven to eleven or a Starbucks or whatever it

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<v Speaker 2>might be, and that's first party data that's very indicative

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<v Speaker 2>of what it is that riders want to do. And

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<v Speaker 2>so our media business has grown significantly. We're up significantly

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<v Speaker 2>year on year, and we're really optimistic that it's going

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<v Speaker 2>to be a whole new form of advertising and media

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<v Speaker 2>that'll go super great.

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<v Speaker 1>David, when I reported that Tesla was delaying its Robotaxi

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<v Speaker 1>event to October, the shares of your company jumped in

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<v Speaker 1>that session. The vision is a proprietary app from Tesla

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<v Speaker 1>for ride hailing, but a fleet of cars that drive themselves. Tesla's.

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<v Speaker 1>Your stock went up on the basis that everyone was like, Okay,

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<v Speaker 1>the competition from Tesla's not yet coming. Just your latest

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<v Speaker 1>thinking on that, please.

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<v Speaker 2>Yeah. Look, I think avs are going to be great

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<v Speaker 2>for LIFT, I really do. And I think it's because

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<v Speaker 2>we're going to be the best way to commercialize what

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<v Speaker 2>is a very very expensive asset. Different companies will try

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<v Speaker 2>different things, but I think largely you'll have a lot

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<v Speaker 2>of OEMs doing a lot in the av space and

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<v Speaker 2>wanting them on our platform because of you know, millions

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<v Speaker 2>of rides, all the technology we have to incorporate cars

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<v Speaker 2>in our platforms and so forth. I don't want to

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<v Speaker 2>comment on Tesla. I don't know. You know, we'll see

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<v Speaker 2>kind of how that goes. But I do think that

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<v Speaker 2>creating your own thing a kind of closed network is

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<v Speaker 2>it's a front strategy, and maybe a different strategy would

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<v Speaker 2>be to figure out a way to get your cars

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<v Speaker 2>that you've built and your technology, you know, as broadly

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<v Speaker 2>available to as many as possible.

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<v Speaker 1>David Richard, the CEO of Lyft, thank you so much

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<v Speaker 1>for joining us.