UP Q1 2022 Earnings

Call Details

• Call Title: Wheels Up Q1 2022 Earnings Call
• Date: May 12, 2022 at 8:30 PM UTC
• Management Team:
  • Keith Ferguson (Head of Investor Relations)
  • Kenny Dichter (Chief Executive Officer)
  • Vinayak Hegde (President & Chief Marketplace Officer)
  • Eric Jacobs (Chief Financial Officer)
  • Eric Cabezas (Interim Chief Financial Officer)

Call Summary

Financial Performance

• Revenue for Q1 2022 exceeded $320 million, representing a record for the quarter and up approximately 24% year-over-year.
• Membership revenue grew 38% year-over-year in Q1 2022.
• Flight revenue was up 24% year-over-year in Q1 2022, while live flight legs were up 15% year-over-year.
• Flight revenue per live flight leg was $13,410 in Q1 2022, up 8% year-over-year.
• Adjusted contribution margin was negative 0.8% for Q1 2022 on a non-GAAP basis.
• Adjusted EBITDA was negative $49.4 million for Q1 2022 on a non-GAAP basis.
• Capital expenditures were $71.9 million in Q1 2022, which included approximately $58 million net to acquire 32 aircraft from Textron.
• The company ended Q1 2022 with $538 million of cash and cash equivalents and reported no long-term debt.

Guidance

• Full-year 2022 revenue guidance was raised to a range of $1.47 to $1.52 billion, reflecting an approximately $90 million revenue contribution from Air Partner.
• Second quarter 2022 revenue is expected to be up at least 28% year-over-year, inclusive of approximately $30 million related to Air Partner.
• Second quarter 2022 adjusted contribution margin is guided to be approximately 3.5%.
• Company expects roughly 200 basis points of sequential improvement in adjusted contribution margin from Q2 to Q3 2022 driven by fuel surcharge implementation and operational improvements.
• Second quarter 2022 adjusted EBITDA is expected to be in a range of negative $43 million to negative $48 million, with Air Partner contributing $2 to $3 million.
• GAAP net loss for Q2 2022 is expected to be between $90 million to $100 million inclusive of several non-cash estimates and one-time cash items.