Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q4 2021 Earnings Presentation
23 slides from Wheels Up Experience's earnings presentation, Mar 10, 2022
Slide 1: Fourth Quarter 2021 Earnings
FOURTH QUARTER 2021 E ARNINGS MARCH 10, 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: 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 & Annual Highlights
QUARTER & ANNUAL HIGHLIGHTS REVENUE (IN MILLIONS) Y/Y GROWTH 64% Q4 2021 $345.0 Q4 2020 $209.8 72% FY 2021 $1,194.3 FY 2020 $695.0 ACTIVE MEMBERS Y/Y GROWTH Q4 2021 12,040 Q4 2020 9,212 31% LIVE FLIGHT LEGS Y/Y GROWTH Q4 2021 Q4 2020 12,454 20,296 63% FY 2021 FY 2020 44,579 73,522 65% WHEELS UP 5
Slide 6: Leading Demand Generation
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, DIVERSE FLEE TS AN
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 � UNPRECEDENTED DEMAND � C O N S O L I DAT I N G O UR 1 P O PER AT I O N S UN D ER O N E S O F T WAR E AN D CER T I F I C AT E � S U P P LY C O N S T R A I N T S � AD D ED C APACI T Y WI T H AD D I T I O N O F AL AN
Slide 8: Newer Members Continue to Outpace Older Cohorts in Revenue
NEWER MEMBERS CONTINUE TO OUTPACE OLDER COHORTS IN REVENUE (1) CORE/BUSINESS FLIGHT REVENUE 2017-CURRENT 2020 AND 2021 COHORTS CONTINUE TO SPEND MORE QUICKLY THAN PREVIOUS COHORTS C U M U L AT I V E F L I G H T R E V E N U E P E R M E M B E R 80% CORE/BUSINESS RETENTION (2) 90+% RETENTION FOR FREQUE
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 SCHEDULING A PI L AYER FLEET & CREW OPTIMIZ ATION MARKETPL ACE PUBLIC APIs FMS L AYER FMS L E G AC Y FL EE T MA NAG E M EN T
Slide 10: Quarter & Annual Results; Guidance
Q UA RT ER & A N N UA L R E SULT S G UI DA N CE
Slide 11: Quarter & Annual Revenue Breakout & Operating Highlights
QUARTER & ANNUAL REVENUE BRE AKOUT & OPERATING HIGHLIGHTS ( I N T H O US A N DS , E XCEPT PER CEN TAG E S) THREE MONTHS ENDED T W E LV E M O N T H S E N D E D DECEMBER 31, DECEMBER 31, 2021 2020 % CHANGE 2021 2020 % CHANGE Flight $ 252,230 $ 151,848 66% $ 873,724 $ 495,419 76% Membership 20,448 14,8
Slide 12: Quarter & Annual Financial Highlights
QUARTER & ANNUAL FINANCIAL HIGHLIGHTS REVENUE (IN MILLIONS) Y/Y GROWTH 64% Q4 2021 $345.0 Q4 2020 $209.8 FY 2021 FY 2020 $695.0 $1,194.3 72% ADJUSTED EBITDA (1) ADJUSTED EBITDA MARGIN Q4 2021 $(46.3) Q4 2021 (13.4%) Q4 2020 $(11.3) Q4 2020 (5.4%) F Y 2 0 2 1 $(87.4) FY 2021 (7.3%) FY 2020 $(52.4) FY
Slide 13: Select Balance Sheet Data
SELECT BAL ANCE SHEET DATA AS OF DECEMBER 31, 2021 ( I N T H O US A N DS) Cash and cash equivalents $ 784,574 Deferred revenue (including current portion) $ 935,484 Long-term debt (including current portion) $ – Operating lease liabilities (including current portion) $ 115,078 WHEELS UP 13
Slide 14: Guidance
GUIDANCE FIRST QUARTER REVENUE ADJUSTED EBITDA GAAP NET LOSS ~+15% YE AR OVER YE AR $(52) TO $(57 ) MILLION $(105) TO $(115) MILLION FULL YE AR REVENUE CAP EX $1.35 TO $1.42 BILLION ~$125 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 T W E LV E M O N T H S 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
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) THREE MONTHS T W E LV E M O N T H S ENDED DECEMBER 31, ENDED DECEMBER 31, WE INCLUDE ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN 2021 2020 2021 2020 AS SUPPLEMENTAL ME ASURES FOR ASSESSING OPERATING NET INCOM
Slide 18: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA – Q4 2021
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) THREE MONTHS ENDED DECEMBER 31, 2021 ( I N T H O US A N DS) GAAP EQUITY-BASED ACQUISITION AS COMPENSATION AND INTEGRATION REPORTED EXPENSE EXPENSE NON-GAAP Revenue: $ 345,044 - - $ 345,044 Costs and expenses: Cost of revenue 344,442 (3,
Slide 19: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA – Q4 2020
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) THREE MONTHS ENDED DECEMBER 31, 2020 ( I N T H O US A N DS) GAAP EQUITY-BASED PUBLIC COMPANY ACQUISITION CORPORATE COVID-19 CARES ACT CREDIT LOSS AS COMPENSATION READINESS AND INTEGRATION HEADQUARTERS RESPONSE GRANT ON REPORTED EXPENSE
Slide 20: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA – FY 2021
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) T WELVE MONTHS ENDED DECEMBER 31, 2021 ( I N T H O US A N DS) GAAP EQUITY-BASED PUBLIC COMPANY ACQUISITION CORPORATE AS COMPENSATION READINESS AND INTEGRATION HEADQUARTERS REPORTED EXPENSE EXPENSE EXPENSE RELOCATION EXPENSE NON-GAAP Rev
Slide 21: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA – FY 2020
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) T WELVE MONTHS ENDED DECEMBER 31, 2020 ( I N T H O US A N DS) CORPORATE GAAP EQUITY-BASED PUBLIC COMPANY ACQUISITION AND HEADQUARTERS COVID-19 CARES ACT CREDIT LOSS AS COMPENSATION READINESS INTEGRATION RELOCATION RESPONSE GRANT ON EMPL
Slide 22: Income Tax Insights
INCOME TAX INSIGHTS 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 income N generated
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