Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q1 2022 Earnings Presentation
21 slides from Wheels Up Experience's earnings presentation, May 12, 2022
Slide 1: First Quarter 2022 Earnings
First Quarter 2022 Earnings May 12, 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: Business review
Business review
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: Quarter highlights
Quarter highlights REVENUE (in millions) Q1 2022 $325.6 Y/Y GROWTH Q1 2021 $261.7 24% ACTIVE MEMBERS Q1 2022 12,424 Y/Y GROWTH Q1 2021 9,896 26% LIVE FLIGHT LEGS Q1 2022 17,626 Y/Y GROWTH Q1 2021 15,278 15% 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: Operational update
Operational update INDUSTRY TRENDS WHEELS UP EXECUTION • Unprecedented demand continues • Launched new mobile app on service- oriented platform • Pilot and maintenance technician shortages • Ahead of plan on hiring new pilots; making progress on maintenance hires • Supply constraints • Migrating 1P
Slide 8: 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 9: 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 10: Quarter Results & Guidance
, | cermin 1 ky ES Ne70yp Quarter Results & Guidance
Slide 11: Quarter revenue breakout & operating highlights
Quarter revenue breakout & operating highlights (in thousands, except percentages) Three Months Ended March 31, 2022 2021 % CHANGE Flight $ 236,363 $ 190,474 24% Membership 20,647 14,974 38% Aircraft management 60,506 50,880 19% Other 8,119 5,329 52% TOTAL $ 325,635 $ 261,657 24% ACTIVE MEMBERS LIVE
Slide 12: Quarter financial highlights
Quarter financial highlights REVENUE (in millions) Q1 2022 $325.6 Y/Y GROWTH Q1 2021 $261.7 24% ADJUSTED EBITDA (in millions) ADJUSTED EBITDA MARGIN Q1 2022 $(49.4) Q1 2022 (15.2%) Q1 2021 $(8.7) Q1 2021 (3.3%) TOTAL CAP EX (1)(2) (in millions) TOTAL CAP EX / REVENUE (1) Q1 2022(2) $13.9 Q1 2022 4.3
Slide 13: 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 13
Slide 14: Guidance
Guidance SECOND QUARTER REVENUE ADJUSTED EBITDA GAAP NET LOSS >28% YE AR OVER YE AR $(4 3) TO $(4 8) MILLION $(90) TO $(100) MILLION FULL YEAR REVENUE CAP EX $1.4 7 TO $1.52 BILLION ~$125 MILLION Wheels Up 14
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) ( 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 17: 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 18: 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 19: 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 20: 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 21: 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