Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q3 2022 Earnings Presentation
21 slides from Wheels Up Experience's earnings presentation, Nov 9, 2022
Slide 1: Third quarter 2022 earnings
Third quarter 2022 earnings November 9, 2022 (Updated March 31, 2023)
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. Forward-looking statements are predictions, projections and other statements about future events that are based on c
Slide 3: Explanatory Note – Presentation Updated as of March 31, 2023
Explanatory Note – Presentation Updated as of March 31, 2023 This presentation has been updated as of March 31, 2023 to reflect a change to the Appendix and Supplemental Financial Information slides to reflect adjustments to certain financial information set forth in such slide that were made by Whe
Slide 4: Business review
Business review
Slide 5: Earnings call agenda
Earnings call agenda • Business performance highlights • Progress on technology & operating initiatives • Path to positive Adjusted EBITDA Wheels Up 5
Slide 6: Highlights
Highlights REVENUE (in millions) Q3 2022 $420.4 Y/Y GROWTH Q3 2021 $302.0 39% ACTIVE MEMBERS (1) Q3 2022 12,688 Y/Y GROWTH Q3 2021 11,375 12% LIVE FLIGHT LEGS (1) Q3 2022 21,025 Y/Y GROWTH Q3 2021 19,714 7% PREPAID BLOCK SALES (1) (in millions) YTD 2022 $658.7 Y/Y GROWTH YTD 2021 $356.9 85% Notes: W
Slide 7: 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 8: Quarter results & guidance
Quarter results & guidance
Slide 9: Quarter revenue breakout & operating highlights
Quarter revenue breakout & operating highlights (in thousands, except percentages) Three Months Ended September 30, 2022 2021 % CHANGE Membership $ 22,409 $ 17,982 25% Flight 278,917 218,360 28% Aircraft management 58,962 58,005 2% Other 60,068 7,631 687% TOTAL $ 420,356 $ 301,978 39% FLIGHT REVENUE
Slide 10: Quarter financial highlights
Quarter financial highlights (in thousands, except percentages) Three Months Ended September 30, 2022 2021 Revenue $ 420,356 $ 301,978 Adjusted Contribution Margin (1) 5.1% 6.3% Technology and development (1) 15,888 8,150 Sales and marketing (1) 28,074 18,928 General and administrative (1) 24,128 16
Slide 11: 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 Expected efficiencies (4) mid-teens Adjusted Contribution Annualized Margin Adjusted Pricing & fuel EBITDA UP FMS surcharges (3) through Dispatch availability Expected 3Q 2022
Slide 12: Select proforma balance sheet data
Select proforma balance sheet data (1) AS OF SEPTEMBER 30, 2022 (in thousands) Cash and cash equivalents $ 544,698 Deferred revenue (including current portion) $ 968,252 Long-term debt (including current portion) (2) $ 270,000 Operating lease liabilities (including current portion) $ 117,078 Notes:
Slide 13: Guidance
Guidance FOURTH QUARTER ADJUSTED REVENUE ADJUSTED EBITDA GAAP NET LOSS CONTRIBUTION MARGIN ~15% YEAR OVER YEAR 4.25% TO 4.75% $(40) TO $(45) MILLION $(90) TO $(100) MILLION FULL YEAR REVENUE CAP EX $1.55 TO $1.58 BILLION <$125 MILLION Wheels Up 13
Slide 14: Appendix & supplemental financial information
Appendix & supplemental financial information
Slide 15: 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 Nine Months Ended September 30, Ended September 30, We include Adjusted Contribution and Adjusted Contribution Margin as supplemental measures for assessin
Slide 16: Reconciliations of non-GAAP financial measures – Adjusted EBITDA
Reconciliations of non-GAAP financial measures – Adjusted EBITDA (5) (i n t h ou s a n ds) Three Months Nine Months Ended September 30, Ended September 30, We include Adjusted EBITDA as supplemental measures for 2022 2021 2022 2021 assessing operating performance in conjunction with the related NET
Slide 17: Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA – Three months ended Sept 30, 2022
Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA (1) THREE MONTHS ENDED SEPTEMBER 30, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE RESTRUCTURING NON-GAAP Revenue: $ 420,356 $ - $ - $ - $ 420,356 Costs and expenses: Cost of reve
Slide 18: Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA – Three months ended Sept 30, 2021
Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA (1) THREE MONTHS ENDED SEPTEMBER 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: $ 3
Slide 19: Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA – Nine months ended Sept 30, 2022
Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA (1) NINE MONTHS ENDED SEPTEMBER 30, 2022 (in thousands) GAAP EQUITY-BASED ACQUISITION AND AS REPORTED COMPENSATION EXPENSE INTEGRATION EXPENSE RESTRUCTURING NON-GAAP Revenue: $ 1,171,503 $ - $ - $ - $ 420,356 Costs and expenses: Cost of rev
Slide 20: Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA – Nine months ended Sept 30, 2021
Reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA (1) NINE MONTHS ENDED SEPTEMBER 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: $ 84
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