Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q4 2022 Earnings Presentation
22 slides from Wheels Up Experience's earnings presentation, Mar 9, 2023
Slide 1: Fourth quarter 2022 earnings
Fourth quarter 2022 earnings March 9, 2023 (Updated March 31, 2023)
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: Explanatory Note – Presentation Updated as of March 31, 2023
Explanatory Note – Presentation Updated as of March 31, 2023 This presentation has been updated as of March 31, 2023 to reflect a change to the Appendix and Supplemental Financial Information slides to reflect adjustments to certain financial information set forth in such slide that were made by Whe
Slide 4: Business review
Business review
Slide 5: Earnings call agenda
Earnings call agenda • Business performance update • Management goals for 2023 •P ath to positive Adjusted EBITDA in 2024 • Strong cash position Wheels Up 5
Slide 6: Highlights
Highlights REVENUE (in millions) Q4 2022 $408.3 Y/Y GROWTH Q4 2021 $345.0 18% ACTIVE MEMBERS (1) Q4 2022 12,661 Y/Y GROWTH Q4 2021 12,040 5% LIVE FLIGHT LEGS (1) Q4 2022 19,308 Y/Y GROWTH Q4 2021 20,296 (5)% PREPAID BLOCK SALES (1) (in millions) FY 2022 $1,004.5 Y/Y GROWTH FY 2021 $896.7 12% Notes:
Slide 7: Robust member base and brand with consistent top-line growth
Wheels Up has built a robust ...and now the focus has member base and iconic brand intensified on delivering that with consistent top-line growth... growth and experience profitably. Building Global Brand & Platform Transition to Profitable Operations 2013-2022 2023-2024 Growth Profit Growth Profit
Slide 8: Quarter results & guidance
Quarter results & guidance
Slide 9: Quarter revenue breakout & operating highlights
Quarter revenue breakout & operating highlights (in thousands, except percentages) Three Months Ended December 31, 2022 2021 % CHANGE Flight $ 273,743 $ 252,230 9% Membership 23,056 20,448 13% Aircraft management 61,846 66,425 (7)% Other 49,612 5,941 735% TOTAL $ 408,257 $ 345,044 18% FLIGHT REVENUE
Slide 10: Quarter financial highlights
Quarter financial highlights (in thousands, except percentages) Three Months Ended December 31, 2022 2021 Revenue $ 408,257 $ 345,044 Adjusted Contribution Margin (1) 4.7% 1.3% Technology and development (1) 13,080 9,227 Sales and marketing (1) 26,322 21,941 General and administrative (1) 23,899 20,
Slide 11: Our plan to reach Adjusted EBITDA positive in 2024
Our plan to reach Adjusted EBITDA positive in 2024 Adjusted EBITDA positive in 2024 Breakeven Operational efficiencies (3) Expected mid-teens Adjusted 2022 Contribution Adjusted Pricing initiatives & Leverage network density Margin EBITDA program changes (2) with dynamic pricing Improve utility & ef
Slide 12: Progress update
Progress update (1) INTERIM PROGRESS GOALS INITIATIVE STATUS (EXITING 2023) Cost Ŋ Announced headcount reduction in Non-GAAP SG&A March 2023 reductions low teens % of revenue Ŋ Executing on plans to reduce fixed costs Ŋ Previously announced program changes Pricing initiatives & program changes Ŋ Dyn
Slide 13: Guidance
Guidance (1) FIRST QUARTER ADJUSTED REVENUE ADJUSTED EBITDA GAAP NET LOSS CONTRIBUTION MARGIN ~5% YEAR OVER YEAR 3.5% TO 4.0% $(45) TO $(50) MILLION $(95) TO $(105) MILLION FULL YEAR ADJUSTED REVENUE ADJUSTED EBITDA GAAP NET LOSS CONTRIBUTION MARGIN $1.55 TO $1.60 BILLION 6.5% TO 7.5% $(110) TO $(13
Slide 14: Q&A
Q&A
Slide 15: Appendix & supplemental financial information
Appendix & supplemental financial information
Slide 16: Reconciliations of non-GAAP financial measures – Adjusted Contribution and Adjusted Contribution 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 Twelve Months Ended December 31, Ended December 31, We include Adjusted Contribution and Adjusted Contribution Margin as supplemental measures for assessin
Slide 17: Reconciliations of non-GAAP financial measures – Adjusted EBITDA
Reconciliations of non-GAAP financial measures – Adjusted EBITDA (5) (i n t h ou s a n ds) Three Months Twelve Months Ended December 31, Ended December 31, We include Adjusted EBITDA as supplemental measures for 2022 2021 2022 2021 assessing operating performance in conjunction with the related NET
Slide 18: Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA – Q4 2022
Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA (1) THREE MONTHS ENDED DECEMBER 31, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE (2) RESTRUCTURING (3) OTHER (4) NON-GAAP Revenue: $ 408,257 $ - $ - $ - $ - $ 408,257 Costs and e
Slide 19: 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 (in thousands) GAAP EQUITY-BASED ACQUISITION AND AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE (2) NON-GAAP Revenue: $ 345,044 $ - $ - $ 345,044 Costs and expenses: Cost of revenue 344,442 (3,
Slide 20: Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA – Twelve months 2022
Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA (1) TWELVE MONTHS ENDED DECEMBER 31, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE (2) RESTRUCTURING (3) OTHER (4) NON-GAAP Revenue: $ 1,579,760 $ - $ - $ - $ - $ 1,579,760 Costs
Slide 21: Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA – Twelve months 2021
Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA (1) TWELVE MONTHS ENDED DECEMBER 31, 2021 (in thousands) GAAP EQUITY-BASED PUBLIC COMPANY ACQUISITION AND CORPORATE HEADQUARTERS AS REPORTED COMPENSATION EXPENSE READINESS EXPENSE (2) INTEGRATION EXPENSE (3) RELOCATION EXPENSE NON-GAAP Reve
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