Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Baird 2022 Global Consumer, Technology & Services Conference
22 slides from Wheels Up Experience's conference presentation, Jun 7, 2022
Slide 1: Baird 2022 Global Consumer, Technology & Services Conference
Baird 2022 Global Consumer, Technology & Services Conference June 7, 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 $1,194 (1) ON-DEMAND TOTAL REVENUE ($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: 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: 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 6: 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 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: 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 9: 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 10: 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 11: Financial Overview
Financial Overview
Slide 12: 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 13: 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 MANAGED 3RD PARTY FLEET ( O W N E D(1P) / LEASED) MAN AGE D (2P) 3 R D PA R TY FLEET (3P) FLIGHT REVENUE FLIGHT REVENUE FLIGHT REVENUE VARIABLE COSTS >30% 15–25% 15–25% TARGET FLIGH
Slide 14: Question & Answer
Question & Answer
Slide 15: Appendix & Supplemental Financial Information
Appendix & Supplemental Financial Information
Slide 16: 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 16
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: 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 19: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
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 20: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
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 21: 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 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
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