Mondee Holdings, Inc. · OTC:MOND
Mondee — FY2022 Earnings Presentation
38 slides from Mondee's earnings presentation, Apr 11, 2023
Slide 1: The Future of Travel, Now
THE FUTURE OF TRAVEL, NOW Investor Presentation April 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 Orinter Acquisition, Began Third Wave of Acquisitions ● In January 2023 acquired Orinter for approximately $40 million ● Expanded footprint in Brazil and LATAM Strengthened Capital Structure to Fuel Accretive M&A Strategy ● Debuted on The Nasdaq Global Market on July 1
Slide 4: Travel Industry Update
© 2023 All Rights Reserved | 4 Travel Industry Update 1OAG.com 2022 vs 2019 cumulative international scheduled air seats as of 12.31.2023 2022 North America domestic air ~91%1 recovered to 2019 levels, international only ~69%.1 Mondee is well positioned in the current macro environment with 80% Nort
Slide 5: Capitalizing on Travel Recovery and New Market Channels
© 2023 All Rights Reserved | 5 Capitalizing on Travel Recovery and New Market Channels Destination Mix of Mondee business as of 4Q19, 3Q22, and 4Q22. Source: Internal Mondee analysis of transactions 0% 5% 10% 15% 20% 25% 30% South Pacific North America Middle East Indian Subcontinent Europe Central
Slide 6: Enabling the Modern Travel Ecosystem
© 2023 All Rights Reserved | 6 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 Fint
Slide 7: Financial Results
© 2023 All Rights Reserved | 7 Financial Results1 1Please refer to the Appendix of this presentation for non-GAAP reconciliation tables. 2See bridge in slide 32 and Form 8-K filed on April 10, 2023 Gross Revenue +42% YoY $512M Net Revenue +19% YoY $40M Adjusted EBITDA1 $2M $5M including deferred ite
Slide 8: 2023 Financial Outlook
© 2023 All Rights Reserved | 8 2023 Financial Outlook Net Revenue increased to be in the range of $230 million to $240 million, representing YoY growth of 47%, measured at the midpoint. Adjusted EBITDA is projected to be in the range of $40 million to $45 million, Representing YoY growth of 171% and
Slide 9: Full Presentation
Full Presentation
Slide 10: Management Team
© 2023 All Rights Reserved | 10 Experienced travel and technology executive and entrepreneur. Former EDS (an HP company), BTI Americas, Citicorp Jim Dullum Chef Operations Officer Dan Figenshu Chief Financial Officer Experienced CFO and entrepreneur. Former Rocketrip, Mic, The Blaze Michael Thomas P
Slide 11: Disrupting the Massive Global Assisted / Affiliated Travel Market
© 2023 All Rights Reserved | 11 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 12: Mondee's Platform
© 2023 All Rights Reserved | 12 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 13: Compelling Economic Model with Diversified Revenue Streams
© 2023 All Rights Reserved | 13 ~95% ~80% 4.2% Double Digits LT Target 2017 Take Rate 7.2% 5.4%2019 ~50% We Have a Compelling Economic Model with Diversified Revenue Streams 20221 100% No Inventory Risk No Supplier Concentration No Customer Concentration Strong Network Effects Net Revenue MixAir Tra
Slide 14: Record of Rapid Growth and Market Share Expansion
© 2023 All Rights Reserved | 14 25 48 54 75 93 69 93 159 77 2015 2016 2017 2018 2019 2020 2021 2022 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-Pandemic Reco
Slide 15: The Gig Traveler is Setting the Pace for Social Commerce in Travel
© 2023 All Rights Reserved | 15 The Gig Traveler is Setting the Pace for Social Commerce in Travel Pre-2000s N EE DS & R EQ UI RE M EN TS IN TE RM ED IA RI ES & D IS TR IB UT IO 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 16: Track Record of Recovery and Product Expansion
© 2023 All Rights Reserved | 16 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 17: The Next Mondee Frontier
© 2023 All Rights Reserved | 17 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 18: Unlocking Multiple B2B2C Growth Drivers
© 2023 All Rights Reserved | 18 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 19: Proven Ability to Execute On Synergistic Acquisitions
© 2023 All Rights Reserved | 19 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 20: M&A Strategy and Orinter Acquisition Rationale
© 2023 All Rights Reserved | 20 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 Expand content and distribution in Brazil and Latin America Natural e
Slide 21: Financial Overview
Financial Overview
Slide 22: 2022 Financial Highlights
© 2023 All Rights Reserved | 22 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 23: Travel Market Leader with Superior Growth and Margin
© 2023 All Rights Reserved | 23 We Are a Travel Market Leader with a Superior Combination of Growth and Margin 58% 52% 52% 47% 45% 38% 36% 32% 31% 30% 2024E Revenue Growth + 2024E EBITDA Margin Rule of 40 Source: Wall Street estimates via FactSet as of 4/6/23
Slide 24: Accelerated Growth Despite Slower International 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) $31 $38 $71 $75 2019 2020 2021 2022 Average Net Revenue Per Transaction (ARPT) ($) Pent-Up Travel Demand & T
Slide 25: Sustained Expansion of Take Rate
© 2023 All Rights Reserved | 25 Sustained Expansion of Take Rate Driven by New Content and Products Take Rate: 5.6% 7.2% ~160 BPS of Take Rate Expansion (2019-2022) Annual Net Revenue ($ millions) 12023 Guidance midpoint $93 $66 $93 $159 $2351 $1701 2019 2020 2021 2022 2023E
Slide 26: Improving Operating Leverage
© 2023 All Rights Reserved | 26 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 27: Driving Towards Growing Profitability
© 2023 All Rights Reserved | 27 Driving Towards Growing Profitability $13 ($25) ($5) $12 2 $43 3 $401 2019 2020 2021 2022 2023E Adjusted EBITDA and Margin ($ millions) 14% (37%) (6%) 7%2 18%3 23%1 1Represents EBITDA and margin pro-forma of acquisitions done in 2019 and 2020. 2$16 million and 10% mar
Slide 28: Long-Term Model
© 2023 All Rights Reserved | 28 ($ millions) 2019A 2022A 2023 Guidance Long-Term Target Take Rate 5.6% 7.2% Double-digit Net Revenue $93 $159 $230-240 YoY Growth 24% 71% 47% 30%+ Sales, Marketing and Other Expenses 59% 72% Adjusted EBITDA $13.1 $12 ($16 including deferred items1) $40-45 % Margin 14%
Slide 29: Balance Sheet Summary
© 2023 All Rights Reserved | 29 ($ millions, except share numbers) 4Q21 4Q22 Cash, Cash Equivalents and Restricted Short-Term Investments $24.0 (includes $8.5 in restricted cash) $87.5 (includes $8.6 in restricted cash and short-term investments) Total Debt $173.2 (includes $11 of current portion of
Slide 30: Key Investment Highlights
© 2023 All Rights Reserved | 30 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 31: Appendix
Appendix
Slide 32: Adjusted EBITDA Bridge
© 2023 All Rights Reserved | 32 (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 33: Capital Structure Improvements
© 2023 All Rights Reserved | 33 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 Purchased 12M Public War
Slide 34: Content Flywheel & Tech Platform for Social Travel
© 2023 All Rights Reserved | 34 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 35: Booking a Curated Trip is a Never Ending Headache
© 2023 All Rights Reserved | 35 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 36: Board of Directors with Diverse Experience
© 2023 All Rights Reserved | 36 Asi Ginio Co-Founder, Former CPO, COO, CEO, Tourico Holidays Inc. 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 Abo
Slide 37: Non-GAAP Measurements
© 2023 All Rights Reserved | 37 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 38: Reconciliation of GAAP to Non-GAAP Financial Measures
© 2023 All Rights Reserved | 38 Reconciliation of GAAP to Non-GAAP Financial Measures