UP Q2 2024 Earnings

Call Details

• Call Title: Wheels Up Q2 2024 Earnings Call
• Date: August 8, 2024 at 2:00 PM UTC
• Management Team:
  • George Mattson (Chief Executive Officer)
  • Todd (Chief Financial Officer)

Call Summary

Financial Performance

• Revenue was $196M in Q2, flat sequentially versus Q1.
• Adjusted contribution margin was 7.8% in Q2, up from 1.0% in Q1 and up from 5.4% in Q2 2023.
• Adjusted EBITDA loss was $37.4M in the quarter, improved from a $49.2M loss in Q1.
• GAAP net loss was $97M for the quarter, which was flat sequentially.
• Operating cash outflow was down 63% from Q1 and down 87% year over year.
• Total private jet flight transaction value per live flight leg was $16,868, up 3% sequentially and up 15% year over year.

Guidance

• The company expects adjusted contribution margin to improve significantly in Q3 and to improve further in Q4.
• The company expects adjusted EBITDA to be positive later this year, but no specific timing or numeric targets were provided.
• The company expects total charter flight transaction value to outpace the rest of the business as charter growth continues.
• Recent block sale trends, including a strong start in July, were cited as supporting a resumption of revenue growth from current levels.
• No formal forward-looking numerical guidance ranges or quarterly revenue/EBITDA targets were disclosed during the call.
• There were no changes disclosed to previously stated formal guidance ranges because no formal numeric guidance was provided on the call.