Mondee Holdings, Inc. · OTC:MOND
Mondee — Q1 2023 Earnings Presentation
38 slides from Mondee's earnings presentation, May 17, 2023
Slide 1: The Future of Travel, Now
THE FUTURE OF TRAVEL, NOW Investor Presentation May 2023
Slide 2: Safe Harbor Statement
© 2023 All Rights Reserved | 2 Safe Harbor Statement (Under the Private Securities Litigation Reform Act of 1995) This presentation contains “forward-looking statements” within the meaning of federal securities law. Forward-looking statements can be identified by words such as: “believe,” “can”, “"m
Slide 3: Chairman's Message
© 2023 All Rights Reserved | 3 Consolid, Interep, and Orinter Acquisitions, Began Third Wave of Acquisitions ● In January 2023 acquired Orinter for ~4X 2022 adjusted EBITDA. ● In May 2023 acquired Consolid and Interep for approximately ~4X and ~3X 2022 adjusted EBITDA. ● Expanded footprint in Brazil
Slide 4: Mondee M&A Strategy and Orinter Acquisition Rationale
© 2023 All Rights Reserved | 4 Mondee M&A Strategy and Orinter Acquisition Rationale • Expanding the company's presence in key markets • Accelerating organic growth • Delivering synergies • Transacting at accretive valuations ü Expand content and distribution in Brazil and Latin America ü Natural ex
Slide 5: May 2023 Acquisitions – Consolid and Interep Rationale
© 2023 All Rights Reserved | 5 May 2023 Acquisitions – Consolid and Interep Rationale ü Expand content and distribution in Mexico and Latin America ü Complements Orinter and Interep acquisitions ü Natural expansion to Mondee’s geographic footprint ü Expand luxury content and distribution in Brazil a
Slide 6: Travel Industry Update
© 2023 All Rights Reserved | 6 Travel Industry Update 1OAG.com 2022 vs 2019 cumulative international scheduled air seats as of 3/31/2023 1Q23 North America domestic air ~100%1 recovered to 2019 levels, international only ~82%.1 Mondee is well positioned in the current macro environment with 80% Nort
Slide 7: First Quarter 2023 Financial Results
© 2023 All Rights Reserved | 7 First Quarter 2023 Financial Results1 1Please refer to the Appendix of this presentation for non-GAAP reconciliation tables. Gross Revenue +46% YoY $699M Net Revenue +28% YoY $50M Adjusted EBITDA1 $4M Up from $2.2M in 1Q22 Adjusted EPS1 $(0.07) $(0.05) in 1Q22
Slide 8: 2023 Financial Outlook
© 2023 All Rights Reserved | 8 2023 Financial Outlook Net Revenue increased to be in the range of $240 million to $245 million, representing YoY growth of 52%, measured at the midpoint. Adjusted EBITDA is projected to be in the range of $40 million to $45 million, Representing YoY growth of 258% and
Slide 9: Balance Sheet Summary
© 2023 All Rights Reserved | 9 ($ millions, except share numbers) 4Q22 1Q23 Cash, Cash Equivalents and Restricted Short-Term Investments $87.5 (includes $8.6 in restricted cash and short-term investments) $58.5 (includes $8.8 in restricted cash and short-term investments) Total Debt $134.4 (includes
Slide 10: Full Presentation
Full Presentation
Slide 11: We Have Built a Proven C-Suite Team Aligned to Execute this Vision
© 2023 All Rights Reserved | 11 Experienced travel and technology executive and entrepreneur. Former EDS (an HP company), BTI Americas, Citicorp Jim Dullum Chef Operations Officer Jesus Portillo Chief Financial Officer Experienced global CFO. Former WPP, ThriveDX, Illumno Michael Thomas President -
Slide 12: Enabling the Modern Travel Ecosystem
© 2023 All Rights Reserved | 12 Enabling the Modern Travel Ecosystem Discounted Content Long-term Contracts Real-time Pricing Data RMS Integration Access to Curated Supply Modern Tech Platform SaaS Tools to Operate Efficiently Significant Cost Savings Content Suppliers Content Consumers Software Fin
Slide 13: We Are Disrupting the Massive Global Assisted / Affiliated Travel Market
© 2023 All Rights Reserved | 13 We Are Disrupting the Massive Global Assisted / Affiliated Travel Market Mondee’s gross revenue TAM is primarily the $1T and growing Assisted/Affiliated travel market Sources: PhocusWright, IBIS, Management Estimates Global Travel Spending: ~$1.9T (2023E) 47% Mix 53%
Slide 14: Mondee's Platform
© 2023 All Rights Reserved | 14 Mondee’s PlatformSuppliers Mondee helps suppliers optimize inventory and utilize excess capacity Legacy Distribution Technology Platforms COMAND ... xxxx COMAND ... xxxx COMAND COMAND ... xxxx COMAND COMAND COMAND ... xxxx COMAND ... xxxx COMAND ... xxxx Travel Agent
Slide 15: Compelling Economic Model with Diversified Revenue Streams
© 2023 All Rights Reserved | 15 ~95% ~80% 4.2% Double Digits LT Target 2017 Take Rate 7.2% 5.5%2019 ~50% We Have a Compelling Economic Model with Diversified Revenue Streams 2022 100% No Inventory Risk No Supplier Concentration No Customer Concentration Strong Network Effects Net Revenue MixAir Tran
Slide 16: Pre-Pandemic Record of Rapid Growth and Market Share Expansion
© 2023 All Rights Reserved | 16 25 48 54 75 93 69 93 159 24377 2015 2016 2017 2018 2019 2020 2021 2022 2023E founded Launch1 40% Organic CAGR 62% CAGR, incl. M&A Market share2 (%) 1.9 2.2 2.4 3.5 4.6 2019 $70b NA wholesale Airfare market 2011 2.4x Market share growth Net Revenue ($Millions) Pre-Pand
Slide 17: The Gig Traveler is Setting the Pace for Social Commerce in Travel
© 2023 All Rights Reserved | 17 The Gig Traveler is Setting the Pace for Social Commerce in Travel Pre-2000s N EE DS & RE Q UI RE M EN TS IN TE RM ED IA RI ES & DI ST RI BU TI O N SO LU TI O N S: PR O DU CT S AN D SE RV IC ES Boomers Gen X Millennials Gen Z 2010s 2020s 2025s Aggregated Content Acces
Slide 18: Track Record of Recovery and Product Expansion
© 2023 All Rights Reserved | 18 We Have a Demonstrated Track Record of Recovery and Product Expansion FOUNDATIONAL ACQUISITIONS LAUNCHED MODERN TECH PLATFORM Nasdaq: MOND EXPANSION ACQUISITIONS LAUNCHED CLOSED USER GROUP BRAND PUBLICLY LISTED ON NASDAQ CONTENT: AIR HOTELS & CAR RENTAL CRUISES & THEM
Slide 19: The Next Mondee Frontier
© 2023 All Rights Reserved | 19 Fintech Software Experiential The Next Mondee Frontier Includes the Full Suite of B2B2C Travel Tech Tools Enterprise Travel Software Platform Self-Service Travel CRM / SaaS for Travel Managers Monetization for Travel Experts User Generated Content Mobile Super App Vir
Slide 20: We Are Unlocking Multiple B2B2C Growth Drivers
© 2023 All Rights Reserved | 20 Experiential Content Cruises Tours Concerts/Events Enhanced Monetization Fintech Digital Cards Subscriptions Additional Geographies LATAM India Europe Social Commerce Local Experts Influencers Gig Economy Inorganic Growth Content Technology Distribution Social Commerc
Slide 21: Proven Ability to Execute On Synergistic Acquisitions
© 2023 All Rights Reserved | 21 Proven Ability to Execute On Synergistic Acquisitions Mondee has been successful in executing and maximizing the value of acquisitions, regardless of market conditions THIRD WAVE OF ACQUISITIONS 6 Consolidator focused on the Middle East and Southeast Asia Hariworld 7
Slide 22: Financial Overview
Financial Overview
Slide 23: 2022 Financial Highlights
© 2023 All Rights Reserved | 23 2022 Financial Highlights $2.2B | 130% Gross Revenue and Growth1 $159M | 71% Net Revenue and Growth1 $12M | 7% Adjusted EBITDA and Adjusted EBITDA Margin2 ($16M | 10% EBITDA including deferred items3) 7.2% Take Rate 1,330 bps Adjusted EBITDA Margin Expansion1 (1,570 b
Slide 24: We Accelerated Our Growth Despite Slower Market Recovery
© 2023 All Rights Reserved | 24 We Accelerated Our Growth Despite Slower Market Recovery in International Travel $1,658 $450 $952 $2,2221 2019 2020 2021 2022 Annual Gross Revenue ($ millions) CAGR: 122% $31 $38 $71 $75 2019 2020 2021 2022 Average Net Revenue Per Transaction (ARPT) ($) Take Rate Impr
Slide 25: Improving Operating Leverage
© 2023 All Rights Reserved | 25 We are Supported by Improving Operating Leverage $86 $102 $112 $162 2019 2020 2021 2022 Annual GAAP Opex ($ millions) GAAP Opex as % of Net Revenue: 113%120%154%92% 1 Excludes stock-based compensation expense. 2 Also excludes a one-time $2.1 million restructuring expe
Slide 26: Driving Towards Growing Profitability
© 2023 All Rights Reserved | 26 Driving Towards Growing Profitability $13 ($24) ($5) $12 2 $43 3 $401 2019 2020 2021 2022 2023E Adjusted EBITDA and Margin ($ millions) 14% (37%) (6%) 7%2 23%1 1 Represents EBITDA and margin pro-forma of acquisitions done in 2019 and 2020. 2 $16 million and 10% margin
Slide 27: Long-Term Model
© 2023 All Rights Reserved | 27 ($ millions) 2019A 2022A 2023E2 Long-Term Target3 Take Rate 5.5% 7.2% Double-digit Net Revenue $93 $159 $243 YoY Growth 24% 71% 52% 30%+ Sales, Marketing and Other Expenses 59% 72% Adjusted EBITDA $13 $12 ($16 including deferred items1) $42.5 % Margin 14% 7% (10% incl
Slide 28: Travel Market Leader with Superior Combination of Growth and Margin
© 2023 All Rights Reserved | 28 We Are a Travel Market Leader with a Superior Combination of Growth and Margin 58% 53% 49% 47% 45% 37% 35% 32% 31% 29% 2024E Revenue Growth + 2024E EBITDA Margin Rule of 40 Source: Wall Street estimates via FactSet as of 5/12/23
Slide 29: Key Investment Highlights
© 2023 All Rights Reserved | 29 Key Investment Highlights Disrupting the Massive Global Travel Market Multiple Levers of Growth Proven Leadership Team Profitable Growth with Expanding Margins Significant Barriers to Entry Next-Gen Travel Tech Platform
Slide 30: Appendix
Appendix
Slide 31: Adjusted EBITDA Bridge
© 2023 All Rights Reserved | 31 (in $ thousands) Three months ended December 31, 2022 Twelve months ended December 31, 2022 Preliminary, Unaudited adj. EBITDA (February 28, 2023) $5,441 15,731 Supplier contract renegotiation(1) (2,768) (2,768) Chargeback recoveries(2) (989) (989) Other adjustments(3
Slide 32: Post-Nasdaq-Listing Capital Structure Improvements
© 2023 All Rights Reserved | 32 Post-Nasdaq-Listing Capital Structure Improvements Raised $85M of Preferred Equity Growth Capital announced on 9/29/22 Enables Mondee to execute aggressive M&A strategy Cash on Balance Sheet to Support Organic Growth Plans Working Capital and FinTech optimization Purc
Slide 33: Content Flywheel & Tech Platform to Revolutionize Social Travel
© 2023 All Rights Reserved | 33 Mondee Leverages its Content Flywheel & Tech Platform to Revolutionize Social Travel Ability to Customize Enabling Gig Economy in Travel Social Commerce Mobile First One-Stop Shop Pre-Curated Offering Access to Experts High Quality Experiences Expert-Based Community M
Slide 34: Without Mondee, Booking a Curated Trip is a Never Ending Headache
© 2023 All Rights Reserved | 34 Without Mondee, Booking a Curated Trip is a Never Ending Headache Air Lodging Car Rental Tours / ExperiencesReservations Tickets The average person searches 20+ sites when planning a curated trip
Slide 35: Board of Directors with Diverse Experience
© 2023 All Rights Reserved | 35 Noor Sweid Founder, General Partner, Global Ventures Pradeep Udhas Co-Founder, Senior Advisor, KPMG India Roopa Purushothaman Chief Economist, Head of Policy Advocacy, Tata Sons Private Limited Mona Aboelnaga Kanaan Managing Partner, K6 Investments LLC Board of Direct
Slide 36: Non-GAAP Measurements
© 2023 All Rights Reserved | 36 Non-GAAP Measurements In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this presentation and the accompanying tables include adjusted EBITDA non-GAAP net income, and non-GAAP EPS. These non-
Slide 37: Reconciliation of GAAP to Non-GAAP Financial Measures
© 2023 All Rights Reserved | 37 Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 38: Reconciliation of GAAP to Non-GAAP Financial Measures
© 2023 All Rights Reserved | 38 Reconciliation of GAAP to Non-GAAP Financial Measures