Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Credit Suisse 26th Annual Technology Conference 2022
22 slides from Wheels Up Experience's conference presentation, Nov 30, 2022
Slide 1: Credit Suisse 26th Annual Technology Conference
Credit Suisse 26th Annual Technology Conference Scottsdale, AZ November 30, 2022
Slide 2: Disclaimer
Disclaimer Cautionary statement regarding forward-looking statements This presentation contains certain “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on c
Slide 3: Market leader with consistent track record of growth and innovation
Market leader WITH CONSISTENT TRACK RECORD OF GROWTH AND INNOVATION $1,550 - $1,580 (2) GR #1 C A $1,194 (1) ON-DEMAND TOTAL REVENUE ($MM) 5% >4 PROVIDER (3) $695 $385 > 73,000 $332 LIVE FLIGHT LEGS (4) 2018A 2019A 2020A 2021A 2022E >12.5K ACTIVE MEMBERS (5) Notes: 1. Based on midpoint of 2022 guida
Slide 4: Wheels Up connects flyers to private aircraft – and one another
Wheels Up connects flyers to private aircraft – and one another DELIVERING EXCEPTIONAL, PERSONALIZED EXPERIENCES POWERING A MARKETPLACE WITH ... ...MILLIONS OF ...TENS OF CONSUMERS THOUSANDS OF AIRCRAFT Wheels Up 4
Slide 5: Leading demand generation
Leading demand generation... >12.5K Digital Active members (1) Convenience Great experiences at >$80,000 your fingertips: discover, search, and book Core/Business spend per year (2) Total Elevated Solution Lifestyle ~80% Access to one of Exclusive member benefits, Core/Business the world's largest s
Slide 6: ...and uniquely positioned in private aviation
...and uniquely positioned in private aviation Demand Generation Operations Events and experiences 1P (owned/leased) Luxury partnerships Brand Fleet 2P (managed) Ambassador program 3P (third party operators) Wheels Up Marketplace Platform Membership model Pay-as-you-go fliers Wheels Up mobile app Go
Slide 7: Current private aviation industry primed for disruption
Current private aviation industry primed for disruption WHEELS UP HAS THE PLATFORM AND TECHNOLOGY TO REVOLUTIONIZE PRIVATE AVIATION Operator market is highly fragmented Ŋ Top 10 operators control only 8% of industry capacity (1) Ŋ 1,800+ operators control fewer than 10 aircraft (1) E-COMMERCE MOBILI
Slide 8: Where it gets complex
Where it gets complex Flight planning Unscheduled maintenance Dynamic Safety & scheduling compliance Crew service Scheduled time maintenance Adverse weather Aircraft location Airport Complex hours operations Forecasted Passenger weather scheduling Aircraft Peak FBO destination times coordination Run
Slide 9: Technology as a differentiator
Technology as a differentiator Leading Wheels Up Fleet Demand FMS Mobile Marketplace Generation App Extension 1P Optimized scheduling + "Frictionless" bookings + Connecting market flyers 2P capability with 3rd party Demand shaping operators 3P at point of booking Wheels Up Marketplace Wheels Up 9
Slide 10: Financial Overview
Financial Overview
Slide 11: Quarter revenue breakout & operating highlights
Quarter revenue breakout & operating highlights (1) (in thousands, except percentages) FLIGHT Ŋ Includes both retail and wholesale flights Three Months Ended September 30, Ŋ On-Fleet (Controlled and Managed) and Off-Fleet (3rd Party Partners) 2022 2021 % CHANGE Ŋ Blocks provide strong visibility int
Slide 12: Our plan to reach Adjusted EBITDA positive in 2024
Our plan to reach Adjusted EBITDA positive in 2024 Adjusted EBITDA positive in 2024 Breakeven Aircraft utility & operational Expected efficiencies (4) mid-teens Adjusted Contribution Annualized Margin Adjusted Pricing & fuel EBITDA a FMS surcharges (3) through Dispatch availability Expected 3Q 2022
Slide 13: Question & Answer
Question & Answer
Slide 14: Appendix & Supplemental Financial Information
Appendix & Supplemental Financial Information
Slide 15: Select proforma balance sheet data
Select proforma balance sheet data (1) AS OF SEPTEMBER 30, 2022 (in thousands) Cash and cash equivalents $ 544,698 Deferred revenue (including current portion) $ 968,252 Long-term debt (including current portion) (2) $ 270,000 Operating lease liabilities (including current portion) $ 117,078 Notes:
Slide 16: Reconciliations of non-GAAP financial measures – Adjusted EBITDA
Reconciliations of non-GAAP financial measures – Adjusted EBITDA (4) (i n t h ou s a n ds) Three Months Nine Months Ended September 30, Ended September 30, We include Adjusted EBITDA as supplemental measures for 2022 2021 2022 2021 assessing operating performance in conjunction with the related NET
Slide 17: Reconciliations of non-GAAP financial measures – Adjusted Contribution and Margin
Reconciliations of non-GAAP financial measures – Adjusted Contribution and Adjusted Contribution Margin (1) (i n t h ou s a n d s ) Three Months Nine Months Ended September 30, Ended September 30, We include Adjusted Contribution and Adjusted Contribution Margin as supplemental measures for assessin
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, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE RESTRUCTURING NON-GAAP Revenue: $ 420,356 $ - $ - $ - $ 420,356 Costs and expenses: Cost of reve
Slide 19: 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 (in thousands) GAAP EQUITY-BASED PUBLIC COMPANY ACQUISITION AND CORPORATE HEADQUARTERS AS REPORTED COMPENSATION EXPENSE READINESS EXPENSE INTEGRATION EXPENSE RELOCATION EXPENSE NON-GAAP Revenue: $ 3
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, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE RESTRUCTURING NON-GAAP Revenue: $ 1,171,503 $ - $ - $ - $ 1,171,503 Costs and expenses: Cost of r
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, 2021 (in thousands) GAAP EQUITY-BASED PUBLIC COMPANY ACQUISITION AND CORPORATE HEADQUARTERS AS REPORTED COMPENSATION EXPENSE READINESS EXPENSE INTEGRATION EXPENSE RELOCATION EXPENSE NON-GAAP Revenue: $ 84
Slide 22: Definitions of key metrics and non-GAAP financial measures
Definitions of key metrics and non-GAAP financial measures ACTIVE MEMBERS: We define Active Members as the ADJUSTED EBITDA: We define Adjusted EBITDA as net income number of Connect, Core, and Business membership (loss) adjusted for (i) interest income (expense), (ii) income tax accounts that genera
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