UP Q4 2021 Earnings

Call Details

• Call Title: Wheels Up Q4 2021 Earnings Call
• Date: March 10, 2022 at 1:30 PM UTC
• Management Team:
  • Keith Ferguson (Head of Investor Relations)
  • Kenny Dichter (Chief Executive Officer)
  • Vinayak Hegde (President & Chief Marketplace Officer)

Call Summary

Financial Performance

• Fourth quarter revenue was $345 million, which was up 64% year-over-year.
• Full-year 2021 revenue was $1.194 billion, which was up 72% year-over-year and above prior guidance.
• Adjusted contribution margin declined to 1.3% in the quarter due to elevated third-party supply and complimentary cabin upgrades.
• Adjusted EBITDA was negative $46.3 million for the quarter and negative $87.4 million for the year, which was within the most recent guidance range.
• Cash flow from operations was $279 million for the quarter and $126 million for the year, driven primarily by strong prepaid block sales.
• Free cash flow was $267 million in the fourth quarter and $98 million for the full year, after capital expenditures including capitalized software.

Guidance

• Full-year 2022 revenue is expected to be in the range of $1.35 billion to $1.42 billion.
• First quarter 2022 revenue is expected to be the lowest quarter in dollars for the year but up approximately 15% year-over-year.
• First quarter adjusted EBITDA is guided to negative $52 million to negative $57 million.
• First quarter GAAP net loss is guided to a range of $105 million to $115 million, which includes specified non-cash items.
• The company expects adjusted contribution margin to be down slightly in Q1 versus Q4 and to improve through the year as operational and pricing initiatives take hold.
• Guidance is being provided one quarter at a time due to geopolitical and macroeconomic uncertainty.