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Automatic TRANSCRIPT

But let's begin with lift because shares are in the red after posting results for more would drove the quarter. Let's go to dear Bosa who's been listening into the conference call. And his more more with us now deirdre Brian. I have been listening in you know in the ride sharing space. We've moved from having a path to profitability to who can shorten that path by the most most uber of course upping the ante last week when it said it would be adjusted EBA profitable by the end of this year earlier than expected. Investors may be looking for lift to push up. It's time line as well from the expected. Late twenty twenty target that outlined previously. Now when I spoke to CFO. Brian Roberts earlier today. He said that they would be addressing that timeline on on the call but so far and we're about thirty minutes then we haven't heard anything we'll certainly let you know if that does happen. So far Logan Green has said that lift is simply making progress rests on that path to profitability. And how to get there have lesson. We expect to deliver continued strong. Top Line growth in twenty twenty well also making progress on our pastor profitability as we've discussed on prior calls their three key themes that we're focused on I is product innovation second is profitable growth grow and third is operating now cfo. Brian Roberts has been speaking on the call for about ten minutes already and still no mention of name any change to that profitability timeline. So despite beat on the top and bottom lines Brian as you noted shares are down more than four percent in the after hours. Remember it did rise on the back of Uber's burnings but it did move up. It's time line now. Another key question. That's likely to be asked during the Cuna. Portion is the impact of regulations while Uber has been making changes to its a platform. Lift is observing them. It says and focusing on a ballot initiative that could exempt them from the GIG economy law now is eighty five which could require the right turn. Companies to treat drivers as employees versus independent contractors. Roberts telling me earlier that the company's twenty twenty guidance assumes the status quo like. I said Brian that call also going. So we'll continue to monitor and bring you anything if it changes the direction of stock price and the after hours. Yeah industrious. Don't like it in the early reaction long way to go to your thank you very much. which kind of dumb luck about it? Okay so you've got the lift CEO talking up a couple of things. One of them is profitability. Wouldn't you like all three to be profitability profitiblity profitability and profitability and. They trust us so few quarters ago. Listen I think this was a very good quarter. I think the reason the stock is down. It's because it's gone from thirty eight and a half to fifty three and a half basically in a straight line and I think people are taking profits on the back of this if you look though terms of margins contribution margin fifty four percent at this time last year forty five and a half percent all the metrics are better and quite frankly scared people might be the full year guide but I think this is a stock that probably got ahead of it's skis in in terms of the stock price. Going back and fill and again. I've said this for a while. I don't think it's going back to that. Sixty three level that it failed at a while back but I think the high fifties absolutely absolutely in the cards. Well more focus on profitable rides whether it's airport drives and whatnot are certainly something to talk about but to to get away from structural profitability issues. That we thought were a a big part of this transportation as a service sector out of the gates. I is crazy to think that suddenly we could've gone from a place and the stocks representative up twenty four percent year today Up Twelve and a half percent into this print over the last five days. It's not a huge surprise when you don't get this renewed kind of fuel for the fire profitability to be clear. They were ahead of Uber to talk about profitability are ahead of Uber. They have a simpler business model but profitability and rationalization in terms of the competitive landscape between these two folks. I'm not sure is is here yet. You Know Karen Listen. They are domestic. Tim's point they do not have the food delivery business. They're trying to remain stable but you look the analysts community. There's thirty eight analysts have covered. This why I don't know but there's thirty. The high price forget the high price target is ninety. The lowest thirty five the median is sixty fifty five year. Analysts community has no visibility into fifty five dollar price difference in targets. That is interesting. I think when they're talking about profitability ability. I think they're getting to break even as the sort of I measure of profitability. And then I think talking about margins is how do they grow this business and grow the margins regions. I actually like lift. I agree with guy. Had it not been up so much into earnings. I think this would have been an okay of Eric Berry. Okay we'll see what he says on the call about. Does the timeline change any. That's going to be really important but I actually like it. For the reason do send it is a cleaner sort of story than Uber. Yeah I would just mention this though you know. Obviously it's a two horse race. As far as the product is concerned. I think the last thing you really WanNa do at this point this far away from profitability to see these companies tripping over each other to kind of get ahead ahead of their skis to kind of get too aggressive on their guidance because to your point about profitability and visibility and investor visibility and then obviously the analysts community. I mean at the end of the day you could. You could obviously Drive a truck through that sort of sentiment. Let's they've laid out there guidance when they're going to get adjusted adjusted whatever that means because that really doesn't mean profitability but I think investors want the path towards and. I'll just say kind of the last point here is that this stock broke out of that. Fifty levels been below there for five months or so I think investors are comfortable on how these guys are going to get to that twenty twenty twenty one guidance. I don't think you want to see them. Get too far ahead of it. It's weird world guy down because it is he's got this discussion. We talk about this company monitoring we gotta talk about Lift Tesla. It might have heard about sure mentioned a few times. Everybody talks in the bull. Case of Tesla's autonomous cars. They're going to drive US around. We won't need ridesharing during or if we do it will probably be in some sort of Tesla or tesla related. Maybe or maybe that's the existential risk to Ford and GM reason why those stocks traded at horribly over for the last six or seven years. I don't know I think you make a fair point. I don't think it's the death knell for the Uber's analysts. I think you have to decide which is better which is better situated. It has a better platform right now and I continue to say it's left now again. I think the run-up it's been such that. It makes sense. People are taking profits but you just look at the numbers. The numbers are improving. You're we're talking about thirty six percent revenue growth quarter over quarter and you over here something about twenty eight twenty nine percent. I think that's an interesting playwright here and again forty eight and a half this way you get back into name but we think about you. It's interesting you bring in Tesla Valuation. Because at least with Tesla there's all kinds of pie. In the sky you could incorporate in terms of their data terms of battery pack. This is ultimately. It's a service revenue dynamic for them to get to that Q.. Four twenty twenty one EBA positive they're gonNA have to grow trip growth by twenty percent. They're going to to grow our poo or average revenue per rider. So I changed it around a little bit by fifteen percent but that's pretty straightforward. It's not a case where you can take evaluation evaluation begin to start extrapolating all kinds of growth prospects. I don't think you can let me make one other point. We're talking about a company that you said yes. They went public at seventy two bucks is trading trading at fifty two bucks. They put three billion dollars in cash on their balance sheet so that actually preserve their ability to kind of get to whatever those targets are to get profitable and the the other thing. I'll just say you talk about data talk about an existential threat to the car makers so it's going to have to make the cars that are going to be autonomous on lifting Uber's network so so this company you know people talk about one was apple by Tesla this. This company will get bought by some day by a massive data company. It could be an apple it could be a google could matter what could be tesla who knows I'm just saying if you're looking at vertical integration. Just say at this market cap with that cash position if they can accelerate their profitability At some point this is not going to be a thirteen billion dollar enterprise company. I'm not sure if you're aware that this guy a dummy actually was working lift at some point guy. I wonder what the whole talk talk about. Employees actually being drivers under any thought about coming back to this quarterbacks. They've called me a number of times early drivers. Hopefully the crack staff halfback footage is wonderful. There you looked at me with the whites loves now. That's what we call white glove service. Bryant wouldn't genius. Sounds like you've just great but at the