Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — 24th Annual Needham Growth Conference (January 2022)
30 slides from Wheels Up Experience's conference presentation, Jan 14, 2022
Slide 1: Bringing a Marketplace to Private Aviation
BRINGING A MARKETPL ACE TO PRIVATE AVIATION 24 TH ANNUAL NEEDHAM GROW TH CONFERENCE JANUARY 14, 2022
Slide 2: Disclaimer: Forward-Looking Statements
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: Market Leader with Consistent Track Record of Growth and Innovation
MARKET LE ADER WITH CONSISTENT TRACK RECORD OF GROW TH AND INNOVATION #1 T OTA L R E V E N U E ($MM) $1,130(1) ON-DEMAND GR PROVIDER (3) CA % 50 $849(2) $695 $385 ~70,000 $332 LIVE FLIGHT LEGS (4) 2018A 2019A 2020A 2021E ~11K ACTIVE MEMBERS (5) NOTES: 1. BASED ON MIDPOINT OF GUIDANCE PROVIDED ON NOV
Slide 4: Visionary Team with Proven Operational Excellence
VISIONARY TE AM WITH PROVEN OPERATIONAL E XCELLENCE WH E E LS U P M AN AG E M E N T T E A M K EN NY D I CH T ER V I NAYAK H E G D E LT G EN T H O MA S B ER G E SO N ER I C J ACO B S L EE APPL B AU M FOUNDER & CHIEF E XECUTIVE OFFICER PR E S I D EN T CH I EF O PER AT I N G O FFI CER CH I EF FI NAN CI
Slide 5: Powering a Marketplace with Millions of Consumers, 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 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: Current Private Aviation Industry Primed for Disruption
CURRENT PRIVATE AVIATION INDUSTRY PRIMED FOR DISRUPTION WHEELS UP HAS THE PL ATFORM AND TECHNOLOGY TO REVOLUTIONIZE PRIVATE AVIATION O P E R AT O R M A R K E T I S H I G H LY F R A G M E N T E D T O P 1 0 O P E R A T O R S C O N T R O L O N LY 8 % O F I N D U S T R Y C A P A C I T Y ( 1 ) 1 , 8 0 0
Slide 8: Large TAM Today with Ability to Expand the Market
L ARGE TAM TODAY WITH ABILIT Y TO E XPAND THE MARKET WHEELS UP E XPANDS T HE MARKE T U.S. ADDRESSABLE MARKET O P P O R T U N I T Y T H R O U G H D E M O C R AT I Z AT I O N 2025 1 7. 9 D E M O C R AT I Z E D TA M ~ $ 8 0 B n (3)(4 )(5) 0.1 0.9 1.9 ~3% MARKET SHARE CURRENT $50MM $10-50MM $5-10MM $1-5
Slide 9: 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 10: Opening the Aperture to an Expansive Base of Non-Members
OPENING THE APERTURE TO AN E XPANSIVE BASE OF NON-MEMBERS APP E XPANDS THE ADDRESSABLE MARKET AND FURTHER DEMOCRATIZES PRIVATE AVIATION NON-MEMBERS WITH DOWNLOADED APP A PP D OWN LOA DS BUILDS A LARGER BASE OF CUSTOMERS WITH NON-MEMBERS WHO OPPORTUNIT Y TO UPSELL FLY WITH WHEELS UP O N-D E MA N D US
Slide 11: Where It Gets Complex
WHERE IT GETS COMPLE X FL I G H T PL A N N I N G UNSCH ED UL ED MA I N T ENA N CE DYNA M I C SAFET Y & SCH ED UL I N G COMPLIANCE CREW SERVICE SCH ED UL ED TIME MA I N T ENA N CE ADVERSE W E AT H E R AIRCRAFT L O C AT I O N COMPLEX AIRPORT HOURS O P E R AT I O N S FORECASTED PA S S E N G E R W E AT
Slide 12: Wheels Up Offers the Industry's Largest, Most Diverse Fleet
WHEELS UP OFFERS THE INDUSTRY ’S L ARGEST, MOST DIVERSE FLEET ASSET-RIGHT MIX OF AIRCRAF T SUPPORTS FULFILLMENT OF SCALING DEMAND ASSET LIGHT FLEET OWNED / LEASED MANAGED T HIRD PART Y NE T WORK (1P) (2P) (3P) QUALIT Y CONTROL Safety Vetted and Verified Aircraft to ensure consistency of experience a
Slide 13: Consumer Technology Makes It Easy to Search, Book and Fly
CONSUMER TECHNOLOGY MAKES IT E ASY TO SE ARCH, BOOK AND FLY " US I N G T H E A PP MA D E M E WA N T TO J O I N. I T WA S V ERY E A SY TO 4.9 STARS FOR iOS APP US E A N D T R A NS PA R EN T " PRIVATE JET CARD COMPARISONS APRIL 2021 S E A R CH FE A S I B I L I T Y AVAI L AB I L I T Y PR I CI N G R E A
Slide 14: Data Science and Optimization Technology Powers Our Marketplace
DATA SCIENCE AND OPTIMIZATION TECHNOLOGY POWERS OUR MARKETPL ACE P R O P R I E TA RY T E C H N O LO GY S O LV E S C O M P L E X P R O B L E M S Ŋ DYNAMIC PRICING & FE ASIBILIT Y IN RE AL TIME Ŋ S C H E D U L E O P T I M I Z AT I O N Ŋ EFFECTIVE REVENUE MANAGEMENT L E V E R A G E S O U R D ATA SCI EN
Slide 15: 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 ( 1) FMS L E G AC Y FL
Slide 16: The Importance of ESG
THE IMPORTANCE OF ESG ENVIRONMENT SOCIAL GOVERNANCE OPTIMIZE THE RIGHT PL ANE FOR THE MISSION WHEELS UP CARES DIVERSIT Y & INCLUSION ACROSS TEAM DRIVE EFFICIENCY DIVERSIT Y & INCLUSIVIT Y COMMITMENT TO SHAREHOLDERS I N T E G R AT E N E W F U E L- E F F I C I E N T A I R C R A F T PROMOTE FLIGHT SHAR
Slide 17: Opportunities for Growth
OPPORTUNITIES FOR GROW TH E X PA N D O P P O R T U N I ST I C P L AT F O R M E X PA N D TA M W I T H G LO B A L LY ACQUISITIONS ADJACENCIES P E R S O N A L I Z AT I O N AND EASE OF USE $$ SUPPORT EMERGING FLIGHT FUEL THE A I R C R A F T T E C H N O LO G I E S SHARING MARKETPL ACE F LY W H E E L WHEE
Slide 18: Financial Overview
—_ —_ | Na al = — { | — + N870Up , : = FINANCIAL —— OVERVIEW
Slide 19: Recent Quarter Revenue Breakout & Operating Highlights
RECENT QUARTER REVENUE BRE AKOUT & OPERATING HIGHLIGHTS ( I N T H O US A N DS) THREE MONTHS ENDED SEPTEMBER 30, MEMBERSHIP 2021 2020 % CHANGE • CORE REFLECTS BOTH INDIVIDUAL AND CORPORATE MEMBERS (1) • ONE-TIME MEMBERSHIP INITIATION FEE Flight $ 218,360 $ 140,280 56% • HIGHLY VISIBLE, RECURRING MEMB
Slide 20: Future Expected Flight Margins Driven by Power of Marketplace
FUTURE E XPECTED FLIGHT MARGINS DRIVEN BY POWER OF MARKETPL ACE ON FLEET OFF FLEET CONTROLLED ASSET LIGHT (OWNED / LE A SED) MANAGED 3RD PAR T Y FLEE T FLIGHT REVENUE FLIGHT REVENUE FLIGHT REVENUE VARIABLE COSTS >30% TARGET FLIGHT MARGIN (1) AIRCRAF T VARIABLE USAGE FEE 15–25% TARGET FLIGHT MARGIN (
Slide 21: 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 22: 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 22
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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
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