Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q1 2023 Earnings Presentation
15 slides from Wheels Up Experience's earnings presentation, May 9, 2023
Slide 1: First quarter 2023 earnings
First quarter 2023 earnings May 9, 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: Business review
Business review
Slide 4: Earnings call agenda
Earnings call agenda • Business performance update • Path to positive Adjusted EBITDA in 2024 • Program changes • Leadership changes Wheels Up 4
Slide 5: Quarter revenue breakout & operating highlights
Quarter revenue breakout & operating highlights (in thousands, except percentages) ACTIVE MEMBERS (1) Three Months Ended March 31, Q1 2023 12,285 Y/Y Growth 2023 2022 % CHANGE Q1 2022 12,424 (1)% Membership $ 21,680 $ 20,647 5.0% LIVE FLIGHT LEGS (1) Q1 2023 15,389 Y/Y Growth (13)% Flight 231,762 23
Slide 6: Our plan to reach Adjusted EBITDA positive in 2024
Our plan to reach Adjusted EBITDA positive in 2024 Adjusted EBITDA positive in 2024 Breakeven Operational efficiencies (3) Expected mid-teens Adjusted 2022 Contribution Adjusted Pricing initiatives & Leverage network density Margin EBITDA program changes (2) with dynamic pricing Improve utility & ef
Slide 7: Revamping Member Programs to Focus on Network Density
Revamping Member Programs to Focus on Network Density WA MONTREAL MT ME Expected Customer Benefits ND OTTAWA BOZEMAN VT OR ID MN TORONTO NH SUN VALLEY WI SD NY MA • Improved service JACKSON HOLE MILWAUKEE CT RI WY MI MADISON NJ IA PA • Better prices for most flying NE NV OH MD IN DE UT IL CO WV •F a
Slide 8: Progress update
Progress update (1) INTERIM PROGRESS GOALS INITIATIVE STATUS (EXITING 2023) Ŋ Announced headcount reduction in Cost March 2023 Non-GAAP SG&A reductions Ŋ Evaluating additional cost reductions low teens % of revenue Ŋ Executing on plans to reduce fixed costs Ŋ Revamped programs to take advantage of n
Slide 9: Guidance
Guidance (1) SECOND QUARTER ADJUSTED REVENUE CONTRIBUTION MARGIN $350 TO $360 MILLION 3% TO 4% ADJUSTED EBITDA GAAP NET LOSS $(39) TO $(44) MILLION $(95) TO $(105) MILLION Notes: Wheels Up 9 1. Please see appendix for explanation of non-GAAP measures
Slide 10: Q&A
Q&A
Slide 11: Appendix & supplemental financial information
Appendix & supplemental financial information
Slide 12: Reconciliations of non-GAAP financial measures – Adjusted Contribution and Adjusted Contribution Margin
Reconciliations of non-GAAP financial measures – Adjusted Contribution and Adjusted Contribution Margin (i n t h ou s a n d s) Three Months Ended March 31, We include Adjusted Contribution and Adjusted Contribution Margin as supplemental measures for assessing operating 2023 2022 performance in conj
Slide 13: Reconciliations of non-GAAP financial measures – Adjusted EBITDA
Reconciliations of non-GAAP financial measures – Adjusted EBITDA (i n t h o u san d s) Three Months Ended March 31, We include Adjusted EBITDA as supplemental measures for assessing 2023 2022 operating performance in conjunction with the related GAAP amounts NET INCOME (LOSS) $ (100,866) $ (89,040)
Slide 14: Supplemental expense information
Supplemental expense information (in thousands, except percentages) Three Months Ended March 31, 2023 COST OF TECHNOLOGY SALES AND GENERAL AND REVENUE AND DEVELOPMENT MARKETING ADMINISTRATIVE TOTAL Equity-based compensation expense $ 1,179 $ 484 $ 700 $ 9,175 $ 11,538 Acquisition and integration exp
Slide 15: 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 calculate Adjusted EBITDA as net number of Connect, Core, and Business membership income (loss) adjusted for (i) interest income (expense), (ii) accounts that generated memb