Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q3 2021 Earnings Presentation
23 slides from Wheels Up Experience's earnings presentation, Nov 10, 2021
Slide 1: Third Quarter 2021 Earnings
THIRD QUARTER 2021 E ARNINGS NOVEMBER 10, 2021
Slide 2: Disclaimer
DISCL AIMER F O R WA R D -LO O K I N G STAT E M EN T S This presentation contains certain “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intention
Slide 3: Business Review
BUS I N E S S REVIEW
Slide 4: Powering a marketplace with millions of consumers and tens of thousands of aircraft
WHEELS UP CONNECTS FLYERS TO PRIVATE AIRCRAF T – AND ONE ANOTHER DELIVERING E XCEPTIONAL , PERSONALIZED E XPERIENCES POWERING A MARKETPL ACE WITH... ...MILLIONS OF ...TENS OF CONSUMERS THOUSANDS OF AIRCRAF T WHEELS UP 4
Slide 5: Quarter Highlights
QUARTER HIGHLIGHTS REVENUE (IN THOUS ANDS) Q3 2021 $301,978 Y/Y GROWTH Q3 2020 $194,781 55% ACTIVE MEMBERS Q3 2021 11,375 Y/Y GROWTH Q3 2020 7,864 45% LIVE FLIGHT LEGS Q3 2021 19,714 Y/Y GROWTH Q3 2020 12,951 52% WHEELS UP 5
Slide 6: Leading demand generation: total solution
LE ADING DEMAND GENERATION TOTA L SO LU T I O N D I G I TA L CO N V EN I EN CE EL E VAT ED L I FE ST YL E ACCESS TO ONE OF THE GRE AT E XPERIENCES AT YOUR E XCLUSIVE MEMBER BENEFITS, SIGNATURE WORLD'S L ARGEST AND MOST FINGERTIPS: DISCOVER, SE ARCH, E VENTS, LUXURY ACCOMMODATIONS, 24/7 DIVERSE FLEE
Slide 7: Operational Update
OPERATIONAL UPDATE CU R R E N T I N D UST RY T R E N DS WH EELS UP E X E CU T I O N � DEMAND STRONGER THAN E XPECTED � I N V E S T I N G TO PR OV I D E BE S T C U S TO M ER E X PER I EN CE P O S S I BL E � E X PAN D I N G U S AG E O F G UAR AN T EED R AT E PR O G R AM (G R P) � S U P P LY C O N S T
Slide 8: Newer members continue to outpace older cohorts in revenue production
NEWER MEMBERS CONTINUE TO OUTPACE OLDER COHORTS IN REVENUE PRODUCTION (1) CORE/BUSINESS FLIGHT REVENUE 2018-CURRENT 2020 AND 2021 COHORTS CONTINUE TO SPEND MORE QUICKLY THAN PREVIOUS COHORTS CU M UL AT I V E FL I G H T R E V EN UE PER M E M B ER 80% CORE/BUSINESS RETENTION (2) 90+% RETENTION FOR FRE
Slide 9: UP Cloud Services - the complete industry platform
UP CLOUD SERVICES - THE COMPLETE INDUSTRY PL ATFORM L E A D I N G D E MA N D G EN ER AT I O N R E S ER VAT I O N MA NAG E M EN T & B EN EFI T S UP CLO UD S ER V I CE S GLOB AL AIRCR AF T SE ARCH ENGINE A PI L AYER FLEET & CREW OPTIMIZ ATION MARKETPL ACE PUBLIC APIs FMS L AYER FMS L E G AC Y FL EE T
Slide 10: Quarter Results & 2021 Guidance
Q UA RT ER R E SULT S & 202 1 G UI DA N CE
Slide 11: Quarter Revenue Breakout & Operating Highlights
QUARTER REVENUE BRE AKOUT & OPERATING HIGHLIGHTS ( I N T H O US A N DS , E XCEPT PER CEN TAG E S) THREE MONTHS ENDED SEPTEMBER 30, 2021 2020 % CHANGE Flight $ 218,360 $ 140,280 56% Membership 17,982 13,345 35% Aircraft management 58,005 38,402 51% Other 7,631 2,754 177% TOTA L $ 301,978 $ 194,781 55
Slide 12: Quarter Financial Highlights
QUARTER FINANCIAL HIGHLIGHTS (1) REVENUE Y/Y GROWTH 55% Q3 2021 $301,978 Q3 2020 $194,781 ADJUSTED EBITDA ADJUSTED EBITDA MARGIN Q3 2021 $(23,928) Q3 2021 (7.9%) Q3 2020 $(8,025) Q3 2020 (4.1%) TOTAL CAP EX CAP EX / REVENUE Q3 2021 $5,760 Q3 2021 1.9% Q3 2020 $3,803 Q3 2020 2.0% NOTES: 1. IN THOUSAN
Slide 13: Summary Balance Sheet
SUMMARY BAL ANCE SHEET AS OF SEPTEMBER 30, 2021 ( I N T H O US A N DS) Cash and cash equivalents $ 535,253 Deferred revenue (including current portion) $ 587,267 Long-term debt (including current portion) $ 153 Operating lease liabilities (including current portion) $ 119,402 WHEELS UP 13
Slide 14: 2021 Full Year Guidance
2021 FULL YE AR GUIDANCE REVENUE ADJUSTED EBITDA $1.115 TO $1.140 BILLION $(80) TO $(90) MILLION NET LOSS CAP EX $(200) TO $(210) MILLION $25 TO $35 MILLION WHEELS UP 14
Slide 15: Appendix & Supplemental Financial Information
A PPEN D IX & SUPPL E M EN TA L FI NA N CIA L I N F O RMAT I O N
Slide 16: Reconciliations of Non-GAAP Measures – Adjusted Contribution and Margin
RECONCILIATIONS OF NON-GAAP FINANCIAL ME ASURES – ADJUSTED CONTRIBUTION AND ADJUSTED CONTRIBUTION MARGIN (1) ( I N T H O US A N DS) WE INCLUDE ADJUSTED CONTRIBUTION AND ADJUSTED CONTRIBUTION THREE MONTHS NINE MONTHS MARGIN A S SUPPL E M EN TA L M E A SUR E S F O R A S S E S S I N G O PER AT I N G EN
Slide 17: Reconciliations of Non-GAAP Measures – Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL ME ASURES – ADJUSTED EBITDA (1) ( I N T H O US A N DS) WE INCLUDE ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN THREE MONTHS NINE MONTHS AS SUPPLEMENTAL ME ASURES FOR ASSESSING OPERATING ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, PERFORMANCE IN CONJUNCTION WITH THE RE
Slide 18: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) THREE MONTHS ENDED SEPTEMBER 30, 2021 ( I N T H O US A N DS) EQUITY-BASED PUBLIC COMPANY ACQUISITION CORPORATE GAAP COMPENSATION READINESS AND INTEGRATION HEADQUARTERS AS REPORTED EXPENSE EXPENSE EXPENSE RELOCATION EXPENSE NON-GAAP Reve
Slide 19: Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA (1) THREE MONTHS ENDED SEPTEMBER 30, 2020 ( I N T H O US A N DS) CORPORATE EQUITY-BASED PUBLIC COMPANY ACQUISITION AND HEADQUARTERS COVID-19 CARES ACT GAAP COMPENSATION READINESS INTEGRATION RELOCATION RESPONSE GRANT AS REPORTED EXPENSE E
Slide 20: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) NINE MONTHS ENDED, SEPTEMBER 30, 2021 ( I N T H O US A N DS) EQUITY-BASED PUBLIC COMPANY ACQUISITION CORPORATE GAAP COMPENSATION READINESS AND INTEGRATION HEADQUARTERS AS REPORTED EXPENSE EXPENSE EXPENSE RELOCATION EXPENSE NON-GAAP Reve
Slide 21: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) NINE MONTHS ENDED SEPTEMBER 30, 2020 ( I N T H O US A N DS) CORPORATE EQUITY-BASED PUBLIC COMPANY ACQUISITION AND HEADQUARTERS GAAP COMPENSATION READINESS INTEGRATION RELOCATION COVID-19 RESPONSE CARES ACT GRANT AS REPORTED EXPENSE EXPE
Slide 22: Income Tax Insights
INCOME TAX INSIGHTS POST-TRANSACTION: THE COMPANY IS SUBJECT TO U.S. FEDERAL AND STATE CORPORATE INCOME TAX . • The Company anticipates generating net operating losses (“NOLs”) in the near term that may be carried forward indefinitely OL carryforwards may be utilized to offset 80 percent of taxable
Slide 23: Definitions of Key Metrics and Non-GAAP Financial Measures
DEFINITIONS OF KEY METRICS AND NON-GAAP FINANCIAL ME ASURES ACTIVE MEMBERS: We define Active Members as the number BLOCK/FUND PROGRAMS: Pre-purchased amounts of of Connect, Core, and Business membership accounts that dollar-denominated credits that can be applied to future costs generated membership