Mondee Holdings, Inc. · OTC:MOND
Mondee — Q3 2023 Earnings Presentation
37 slides from Mondee's earnings presentation, November 2023
Slide 1: Investor Presentation
Investor Presentation November 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement (Under the Private Securities Litigation Reform Act of 1995) Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified b
Slide 3: Full Presentation
NV Full Presentation
Slide 4: We Have a Proven C-Suite Team Aligned to Execute Our Vision
We Have a Proven C-Suite Team Aligned to Execute Our Vision Executive team with 125+ years of combined experience in the travel and hospitality industry Prasad Gundumogula Orestes Fintiklis Jesus Portillo Chairman, Chief Executive Officer, and Vice Chairman and Chief Corporate Strategy and Chief Fin
Slide 5: Enabling the Modern Travel Ecosystem
Enabling the Modern Travel Ecosystem Content Suppliers Content Consumers Discounted Content Access to Curated Supply Long-Term Contracts Modern Tech Platform Real-Time Pricing Data SaaS Tools to Operate Efficiently RMS Integration Significant Cost Savings Software Fintech Experiential Airlines Hotel
Slide 6: We Are Disrupting the Massive Global Assisted / Affiliated Travel Market
We Are Disrupting the Massive Global Assisted / Affiliated Travel Market Mondee’s gross bookings total addressable market is primarily the $1T and growing assisted/affiliated travel market Global Travel Spending: ~$2.1T (2023E) Self Service Metasearch Travel Assisted/Affiliated Agencies • Good GUIs
Slide 7: A Leading B2B2C Tech Platform to Travel Ecosystem
A Leading B2B2C Tech Platform to Travel Ecosystem Suppliers Legacy Distribution Mondee’s Platform Consumers Technology Platforms Airlines Travel Agents COMAND ... xxxx COMAND ... xxxx COMAND COMAND ... xxxx COMAND COMAND COMAND ... xxxx Hoteliers COMAND ... xxxx COMAND ... xxxx Corporations Travel A
Slide 8: Compelling Economic Model with Diversified Revenue Streams
Compelling Economic Model with Diversified Revenue Streams International Travel Recovery1 Take Rate Air Transaction Mix Net Revenue Mix (Especially China) 100% No Inventory Risk Pre COVID ~4-5% ~80% No Supplier Concentration 2022 69% 7.2% No Customer Concentration LT Target ~50% Double 100% Digits S
Slide 9: Pre-Pandemic Record of Rapid Growth and Market Share Expansion
Pre-Pandemic Record of Rapid Growth and Market Share Expansion Mondee is building on a track record of exponential profitable growth, disruptive market penetration and delivering on key operating metrics since launching its initial modern operating system. 5.4M 50M Net Revenue ($Millions) Air Transa
Slide 10: The Gig Traveler is Setting the Pace for Social Commerce in Travel
The Gig Traveler is Setting the Pace for Social Commerce in Travel Pre-2000s 2010s 2020s 2025s Boomers Gen X Millennials Gen Z Shifting Influence Levels Gig Traveler Requirements Real-Time, Always On Needs and Aggregated Content Price Sensitive “Bleisure” Personalization FOMO Accessibility to Invent
Slide 11: Abhi – AI Travel Marketplace
Abhi, the First Fully Integrated Abhi – AI Travel Marketplace AI Travel Assistant Engages with users in meaningful conversations 20+ Understands complex questions Currencies and What is the trendiest beach club in Offers comprehensive responses Greece right now for someone in their languages 30s who
Slide 12: We Are Unlocking Multiple B2B2C Growth Drivers
We Are Unlocking Multiple B2B2C Growth Drivers Market New Content & Technology New Distribution Gain Market International Experiential Enhanced Additional Social Inorganic Share Travel Content Monetization Geographies Commerce Growth Recovery Content Air Cruises Fintech LATAM Local Experts Technolog
Slide 13: Demonstrated Track Record of Recovery and Product Expansion
Demonstrated Track Record of Recovery and Product Expansion $184M2 $170M1 $93M $25M Nasdaq: MOND FOUNDATIONAL LAUNCHED MODERN EXPANSION LAUNCHED CLOSED PUBLICLY LISTED ACQUISITIONS TECH PLATFORM ACQUISITIONS USER GROUP BRAND ON NASDAQ CONTENT: AIR HOTELS & CAR RENTAL CRUISES & THEME PARKS ALL TRAVEL
Slide 14: Proven Ability to Execute On Synergistic Acquisitions
Proven Ability to Execute On Synergistic Acquisitions Mondee has been successful in executing and maximizing the value of acquisitions, regardless of market conditions jFOUNDATIONAL EXPANSION THIRD WAVE OF ACQUISITIONS ACQUISITIONS ACQUISITIONS 2011 2012 2013-18 2019 2020 2021-22 2023+ Skylink Trans
Slide 15: Mondee M&A Strategy and Year-to-Date Acquisitions
Mondee M&A Strategy and Year-to-Date Acquisitions M&A Strategy Acquisition Acquisition Acquisition Acquisition • Expanding presence in key markets ✓Expands luxury content and ✓Expands content and distribution in ✓Expands content and distribution in ✓Expands distribution to SMBs and • Accelerating or
Slide 16: Financial Overview
Financial Overview
Slide 17: Third Quarter 2023 Financial Highlights
Third Quarter 2023 Financial Highlights 1,2 696K | 18% | 47% $597M | 2% | 15% $55M | 35% |66% Transactions, Reported Growth, Gross Bookings3, Reported Growth, Net Revenue, Reported Growth, and Proforma Growth and Proforma Growth and Proforma Growth ~$5.5M | 54% 9.1% | 35% Adjusted EBITDA and Growth
Slide 18: 2022 Financial Highlights
2022 Financial Highlights $2.2B | 130% $159M | 71% $11M | 7% Gross Bookings Net Revenue Adjusted EBITDA and Growth1 and Growth1 and Adjusted EBITDA Margin2,3 ($16M | 10% EBITDA including deferred items3) 2.1M+ 7.2% 1,283 bps Adjusted EBITDA Transactions Take Rate Margin Expansion1,3 All figures as o
Slide 19: We Accelerated Our Growth Despite Slower Market Recovery in International Travel
We Accelerated Our Growth Despite Slower Market Recovery in International Travel Annual Gross Bookings Average Net Revenue Per Transaction (ARPT) ($ millions) ($) Take Rate Improvements $2,223 $75 $71 CAGR: 118% $1,658 $65 $966 $27 $450 2019 2020 2021 2022 2019 2020 2021 2022 19
Slide 20: Driving Towards Growing Profitability
Driving Towards Growing Profitability Drivers of Margin Expansion Adjusted EBITDA and Margin ($ millions) Market Share Gain 14% (37%) (6%) 7%2 12%3 23%1 Take Rate Expansion $401 $25 3 Operating Leverage $13 $12 2 Fintech & Subscription Products ($5) Disciplined, Accretive M&A ($24) 2019 2020 2021 20
Slide 21: We are Supported by Improving Operating Leverage
We are Supported by Improving Operating Leverage Cash Based Opex as % of Net Revenue: $161 Annual Cash Based Opex ($ millions) $112 $102 $86 2 2019 2020 2021 2022 Personnel Sales & Marketing G&A Information Technology Other 1 Excludes stock-based compensation expense of $17K, $15K, $4M, and $62M in
Slide 22: LBF Divestiture
LBF Divestiture1 YTD ($ thousands) FY2022 1Q23 2Q23 3Q23 2023 Reported Net Revenue 159,484 49,929 56,771 54,532 161,232 Divested LBF Net Revenue1 (32,784) (4,519) (2,226) - (6,745) Proforma Net Revenue 126,700 45,410 54,545 54,532 154,487 % YOY Growth 54% 56% 66% 59% Reported Adjusted EBITDA 11,881
Slide 23: Balance Sheet Summary
Balance Sheet Summary ($ millions, except share numbers) September 30, 2023 Cash, Cash Equivalents and Restricted Short-Term Investments $47.9 (includes $8.0M of restricted cash) $155.5 Total Debt (includes $10.3M of current portion of LTD) Redeemable Preferred Stock $92.5 Shares Outstanding 85.7 23
Slide 24: Proforma 2023 Guidance and Long-Term Model
Proforma 2023 Guidance and Long-Term Model Proforma Proforma Long-Term ($ millions) 2019A 2022A 20221 2023E1 Target2 Take Rate 5.5% 7.2% Double-digit Net Revenue $93 $159 $127 ~$210 YoY Growth 24% 71% NA 66% 30%+ Adjusted EBITDA $13 $12 $17 ~$25 YoY Growth NA 45% % Margin 14% 7% 14% 12% 30%+ 1 Profo
Slide 25: Valuation Expansion Opportunity
Valuation Expansion Opportunity1 Despite a higher profitable-growth profile, Mondee trades at a discount to peers Average EV/Revenue 1.4x 11.0x 6.1x 4.6x 5.0x 4.1x 6.2x EV/EBITDA 9.1x 28.4x 16.8x 29.7x 12.8x 13.3x 20.2x Revenue Growth 47% 20% 11% 17% 13% 25% 17% EBITDA Margin 16% 39% 36% 16% 39% 30%
Slide 26: Key Investment Highlights
Key Investment Highlights Disrupting the Massive Global Travel Market Significant Barriers to Entry Next-Gen Travel Tech Platform Proven Leadership Team Multiple Levers of Growth Profitable Growth with Expanding Margins 26
Slide 27: Appendix
VY Appendix
Slide 28: Chairman’s Message on Q3 2023 Results
Chairman’s Message on Q3 2023 Results Mondee’s third quarter 2023 (“Q3 23”) accomplishments in key areas were marked by… Delivered Strong Q3 23 Results • Net Revenue of $54.5M, up 35% from prior-year quarter, and 66% proforma excluding LBF. • Adjusted EBITDA of $5.5M, up 54% from prior-year quarter.
Slide 29: Travel Industry Update
Travel Industry North America air sales at 2019 levels, Hotel demand remains strong, Update1,2,3 average fares moderating from prior post-COVID highs. supporting higher room rates. Alternative accommodation demand Industry infrastructure constraints still growing and remains strong, remain, primaril
Slide 30: Travel Industry Update
Travel Industry Update1,2,3 Global Travel Health Index Score by Region (Weighted Average) Hotel Occupancy vs ADR ARC Air Sales Asia Pacific Europe Latin America Middle East and Africa North America 8 120 ADR 7 110 6 100 2019 Occupancy Billions ($) 5 90 4 80 3 70 Post Covid 2 60 Growth vs 2019 levels
Slide 31: Mondee Leverages its Content Flywheel and Tech Platform to Revolutionize Social Travel
Mondee Leverages its Content Flywheel and Tech Platform to Revolutionize Social Travel Expert-Based Ability to Customize Community Model One-Stop Shop Social Commerce Access to Experts Mobile First High Quality Experiences Enabling Gig Economy in Travel Pre-Curated Offering 31
Slide 32: Post-Nasdaq-Listing Capital Structure Improvements
Post-Nasdaq-Listing Capital Structure Improvements Raised Use of proceeds $85M of Preferred Equity Enables Mondee to Cash on balance sheet Working capital and execute aggressive to support organic fintech optimization Growth Capital M&A strategy growth plans announced on 9/29/22 Purchased 100% of pu
Slide 33: Without Mondee, Booking a Curated Trip is a Neverending Headache
Without Mondee, Lodging Booking a Curated Air Trip is a Neverending Headache Car The average person Tickets Rental searches 20+ sites when planning a curated trip Tours/ Reservations Experiences 33
Slide 34: Board of Directors with Diverse Experience
Board of Directors with Diverse Experience Mondee’s Board of Directors with diverse and extensive experiences in public companies. Prasad Gundumogula Orestes Fintiklis Asi Ginio Mona Aboelnaga Kanaan Chairman, Chief Executive Vice Chairman and Chief Co-Founder, Former CPO, COO, Managing Partner, Off
Slide 35: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 36: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 37: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures