Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q2 2022 Earnings Presentation
23 slides from Wheels Up Experience's earnings presentation, Aug 11, 2022
Slide 1: Second Quarter 2022 Earnings
Second Quarter 2022 Earnings August 11, 2022
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. These forward-looking statements include, but are not limited to, statements regarding Wheels Up’s expectations, hop
Slide 3: Business review
Business review
Slide 4: Agenda
Agenda • Business Performance Highlights • Progress on Technology & Operating Initiatives • Path to Positive Adjusted EBITDA Wheels Up 4
Slide 5: Quarter highlights
Quarter highlights REVENUE (in millions) Q2 2022 $425.5 Y/Y GROWTH Q2 2021 $285.6 49% ACTIVE MEMBERS Q2 2022 12,667 Y/Y GROWTH Q2 2021 10,515 20% LIVE FLIGHT LEGS Q2 2022 21,705 Y/Y GROWTH Q2 2021 18,234 19% PREPAID BLOCKS (in millions) Q2 2022 $332.9 Y/Y GROWTH Q2 2021 $115.9 187% Wheels Up 5
Slide 6: Our Loyal Members Provide Great Visibility to Future Flying
Our Loyal Members Provide Great Visibility to Future Flying (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 frequ
Slide 7: Technology Initiatives
Technology Initiatives UP FMS Optimization Mobile App • Entire controlled fleet • Manage daily • Customers in control managed on UP FMS operations in real time of itinerary changes • Real time visibility of • Respond to last minute • Member services aircraft availability & travel changes/events focu
Slide 8: Operational Initiatives
Operational Initiatives Consolidation Pilots Maintenance of Operations • Aircrew 360 2.0 • On track to increase • Consolidating six FAA mobile service unit certificates into one • Hired 350 pilots so capacity by 50% far this year • S treamlining operations • Dispatch availability to improve efficien
Slide 9: Quarter Results & Guidance
, | cermin 1 ky ES Ne70yp Quarter Results & Guidance
Slide 10: Quarter revenue breakout & operating highlights
Quarter revenue breakout & operating highlights (in thousands, except percentages) Three Months Ended June 30, 2022 2021 % CHANGE Membership $ 24,020 $ 16,188 48% Flight 284,071 212,660 34% Aircraft management 60,718 49,955 22% Other 56,703 6,777 737% TOTAL $ 425,512 $ 285,580 49% ACTIVE MEMBERS LIV
Slide 11: Quarter financial highlights
Quarter financial highlights (in thousands, except percentages) Three Months Ended June 30, 2022 2021 Revenue $ 425,512 $ 285,580 Adjusted Contribution Margin 4.7% 10.7% Technology and development (1) 13,951 7,932 Sales and marketing (1) 30,831 17,679 General and administrative (1) 22,691 13,310 Adj
Slide 12: Our plan to reach adjusted EBITDA positive in 2024
Our plan to reach adjusted EBITDA positive in 2024 Adjusted EBITDA Positive in 2024 Breakeven Aircraft Utility & Operational Efficiencies (4) Annualized Adjusted Pricing & Fuel EBITDA UP FMS Surcharges (3) Today (1) Dispatch Availability Maintenance Availability Certificate Consolidation Cost Reduct
Slide 13: Select balance sheet data
Select balance sheet data AS OF JUNE 30, 2022 (in thousands) Cash and cash equivalents $ 426,984 Deferred revenue (including current portion) $ 1,041,072 Long-term debt (including current portion) $ – Operating lease liabilities (including current portion) $ 119,179 Wheels Up 13
Slide 14: Guidance
Guidance THIRD QUARTER ADJUSTED REVENUE ADJUSTED EBITDA GAAP NET LOSS CONTRIBUTION MARGIN 25%+ YEAR OVER YEAR 4.5% TO 5% $(42) TO $(47) MILLION $(95) TO $(105) MILLION FULL YEAR REVENUE CAP EX $1.48 TO $1.53 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) (i n t h ou s a n d s ) Three Months Six Months Ended June 30, Ended June 30, We include Adjusted Contribution and Adjusted Contribution Margin as supplemental measures for assessing operating
Slide 17: Reconciliations of Non-GAAP financial measures – Adjusted EBITDA
Reconciliations of Non-GAAP financial measures – Adjusted EBITDA (1) (i n t h ou s a n ds) Three Months Six Months Ended June 30, Ended June 30, We include Adjusted EBITDA and Adjusted EBITDA Margin as 2022 2021 2022 2021 supplemental measures for assessing operating performance in NET LOSS $ (92,76
Slide 18: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (1) THREE MONTHS ENDED JUNE 30, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND RESTRUCTURING AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE CHARGES NON-GAAP Revenue: $ 425,512 $ - $ - $ - $ 425,512 Costs and expenses: Cost of r
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 JUNE 30, 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: $ 285,58
Slide 20: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (1) SIX MONTHS ENDED JUNE 30, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND RESTRUCTURING AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE CHARGES NON-GAAP Revenue: $ 751,147 $ - $ - $ - $ 751,147 Costs and expenses: Cost of rev
Slide 21: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (1) SIX MONTHS ENDED JUNE 30, 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: $ 547,237
Slide 22: Income tax insights
Income tax insights The company is subject to corporate income tax in multiple U.S. and foreign tax jurisdictions. • The Company anticipates generating U.S. net operating losses (“NOLs”) in the near term that may be carried forward indefinitely • U.S. NOL carryforwards may be utilized to offset 80 p
Slide 23: 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