Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — 17th Annual Needham Technology & Media Conference (May 2022)
32 slides from Wheels Up Experience's conference presentation, May 16, 2022
Slide 1: 17th Annual Needham Technology & Media Conference
17th Annual Needham Technology & Media Conference May 16, 2022
Slide 2: Disclaimer
Disclaimer Forward-looking statements 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, intentions or strategies o
Slide 3: Market leader with consistent track record of growth and innovation
Market leader WITH CONSISTENT TRACK RECORD OF GROWTH AND INNOVATION $1,470 - $1,520 (2) GR #1 C A $1,195 (1) ON-DEMAND TOTAL REVENUE ($MM) 5% >4 PROVIDER (3) $695 $385 > 73,000 $332 LIVE FLIGHT LEGS (4) 2018A 2019A 2020A 2021A 2022E >12K ACTIVE MEMBERS (5) Notes: 1. Based on midpoint of 2022 guidanc
Slide 4: Visionary team with proven operational excellence
Visionary team with proven operational excellence WHEELS UP MANAGEMENT TEAM KENNY DICHTER VINAYAK HEGDE LT GEN THOMAS BERGESON ERIC CABEZAS LEE APPLBAUM Founder & Chief Executive Officer President Chief Operating Officer Interim Chief Financial Officer Chief Marketing Officer LAURA HELTEBRAN JASON H
Slide 5: 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 5
Slide 6: Leading demand generation
Leading demand generation Total solution Digital convenience Elevated lifestyle Access to one of the world's largest Great experiences at your fingertips: Exclusive member benefits, signature and most diverse fleets discover, search, and book events, luxury accommodations, 24/7 concierge service Whe
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: Large TAM today with ability to expand the market
Large TAM today with ability to expand the market Wheels Up expands the market U.S. addressable market opportunity through democratization 17.9 2025 Democratized TAM ~$80Bn (3)(4)(5) 0.1 0.9 1.9 Current $50MM $10-50MM $5-10MM $1-5MM Democratized TAM ~ 4% SHARE OF ~$51Bn (3)(4)(5) Current Estimated #
Slide 9: Wheels Up is a trusted and iconic lifestyle brand
Wheels Up is a trusted and iconic lifestyle brand BUILDING OUR BRAND THROUGH TRADITIONAL AND DIGITAL MEDIA, UNIQUE EXPERIENCES, BRAND ACTIVATIONS AND. . . Unique 100+ ambassador program with broad social reach TRUSTED RESPECTED Largest on-demand safety vetted Flown by business travelers and and veri
Slide 10: Signature Events
Signature Events . . . UNPARALLELED EVENTS & EXPERIENCES THAT ELEVATE OUR BRAND AND ENGENDER LOYALTY Just as we do in the air Wheels Down we elevate life at some in Augusta 2022 of the highest-profile, Wheels Up members are invited to Augusta, GA for an unforgettable week-long most memorable events
Slide 11: Leading brands partner with Wheels Up
Leading brands partner with Wheels Up Wheels Up has built a trusted and iconic lifestyle TRAVEL & HOSPITALITY SPORTS, HEALTH, WELLNESS RETAIL & CONSUMER SERVICES RESIDENTIAL DESTINATIONS brand consistently delivering amazing experiences in the air and on the ground. We have partnered with brands acr
Slide 12: Newer members continue to outpace older cohorts in revenue
Newer members continue to outpace older cohorts in revenue (1) CORE/BUSINESS FLIGHT PLUS MEMBERSHIP REVENUE 2017—CURRENT Newest cohorts continue CUMULATIVE FLIGHT PLUS MEMBERSHIP REVENUE PER MEMBER to spend more quickly than previous cohorts 80% Core/Business retention (3) 90+% Retention for frequen
Slide 13: Opening the aperture to an expansive base of non-members
Opening the aperture to an expansive base of non-members App expands the addressable market and further democratizes private aviation Non-members who downloaded app APP DOWNLOADS Builds a larger base Non-members who of customers with fly with Wheels Up ON-DEMAND USERS opportunity to upsell (NON-MEMB
Slide 14: Have the right plane... in the right place... at the right time...
Our commitment... Have the right plane... in the right place... at the right time...
Slide 15: 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 16: Wheels Up offers the industry's largest, most diverse fleet
Wheels Up offers the industry’s largest, most diverse fleet ASSET-RIGHT MIX OF AIRCRAFT SUPPORTS FULFILLMENT OF SCALING DEMAND ASSET LIGHT FLEET OWNED / LEASED MANAGED THIRD PARTY NETWORK (1P) (2P) (3P) QUALITY CONTROL Safety Vetted and Verified Aircraft to ensure consistency of experience across fl
Slide 17: Consumer technology makes it easy to search, book and fly
Consumer technology makes it easy to search, book and fly "Using the app made me want to join. It was very easy to 4.9 stars use and transparent" for iOS app Private Jet Card Comparisons April 2021 SEARCH FEASIBILITY AVAILABILITY PRICING REAL-TIME BOOKING Proprietary technology assets Consumer benef
Slide 18: Data science and optimization technology powers our marketplace
Data science and optimization technology powers our marketplace Proprietary technology solves complex problems Ŋ Dynamic pricing & feasibility in real time Ŋ Schedule Optimization Ŋ Effective Revenue Management Leverages our data science capabilities Ŋ Machine Learning Ŋ Predictive analytics Ŋ Talen
Slide 19: UP Cloud Services – the complete industry platform
UP Cloud Services –the complete industry platform LEADING DEMAND GENERATION RESERVATION MANAGEMENT & BENEFITS UP CLOUD SERVICES GLOBAL SCHEDULING API LAYER FLEET & CREW OPTIMIZATION MARKETPLACE PUBLIC APIs FMS LAYER FMS L E G AC Y FLEET LEGACY FL EE T MANAGEMENT MA NAG E M EN T SAFETY VETTED & VERIF
Slide 20: The importance of ESG
The importance of ESG ENVIRONMENT SOCIAL GOVERNANCE Ŋ Optimize the right plane for the mission Ŋ Wheels Up Cares Ŋ Diversity & inclusion across team Ŋ Drive efficiency Ŋ Diversity, equity, & inclusion Ŋ Commitment to shareholders Ŋ Integrate new fuel-efficient aircraft Ŋ Promote flight sharing WE AR
Slide 21: Opportunities for growth
Opportunities for growth Expand Opportunistic Platform Expand TAM with globally acquisitions adjacencies personalization and ease of use $$ Support emerging Flight Fuel the aircraft technologies sharing marketplace flywheel Wheels Up 21
Slide 22: Financial Overview
Financial Overview
Slide 23: 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 March 31, Ŋ On-Fleet (Controlled and Managed) and Off-Fleet (3rd Party Partners) 2022 2021 % CHANGE Ŋ Blocks provide strong visibility into fu
Slide 24: Future expected flight margins driven by power of marketplace
Future expected flight margins driven by power of marketplace ON FLEET OFF FLEET Controlled Asset Light (OWNED / LEASED) MANAGE D 3 R D PA R T Y F L E E T FLIGHT REVENUE FLIGHT REVENUE FLIGHT REVENUE VARIABLE COSTS >30% 15–25% 15–25% TARGET FLIGHT MARGIN(1) AIRCRAFT VARIABLE TARGET FLIGHT MARGIN (1)
Slide 25: Appendix & Supplemental Financial Information
Appendix & Supplemental Financial Information
Slide 26: Select balance sheet data
Select balance sheet data AS OF MARCH 31, 2022 (in thousands) Cash and cash equivalents $ 537,699 Deferred revenue (including current portion) $ 905,079 Long-term debt (including current portion) $ – Operating lease liabilities (including current portion) $ 124,002 Wheels Up 26
Slide 27: Reconciliations of Non-GAAP financial measures – Adjusted EBITDA
Reconciliations of Non-GAAP financial measures – Adjusted EBITDA (1) ( in t h o u san d s) Three Months We include Adjusted EBITDA and Adjusted EBITDA Margin as Ended March 31, supplemental measures for assessing operating performance in 2022 2021 conjunction with the related GAAP amounts and for th
Slide 28: Reconciliations of Non-GAAP financial measures – Adjusted Contribution and Margin
Reconciliations of Non-GAAP financial measures – Adjusted Contribution and Adjusted Contribution Margin (1) ( in t h o u san d s) Three Months We include Adjusted Contribution and Adjusted Contribution Ended March 31, Margin as supplemental measures for assessing operating 2022 2021 performance in c
Slide 29: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (Q1 2022)
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (1) THREE MONTHS ENDED MARCH 31, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE RESTRUCTURING NON-GAAP Revenue: $ 325,635 - - $ 325,635 Costs and expenses: Cost of revenue 332,758
Slide 30: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (Q1 2021)
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (1) THREE MONTHS ENDED MARCH 31, 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: $ 261,6
Slide 31: 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. • NOL carryforwards may be utilized to offset 80 percent of taxable income generate
Slide 32: 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
Wheels Up Experience — 17th Annual Needham Technology & Media Conference (May 2022) on 6ix