Wheels Up Experience Inc. Q1 FY2024 earnings call

• Operational momentum: First quarter Completion Rate was 98% and On-Time Performance was 87%, both exceeding internal goals. 27 brand days in Q1, the highest in over 2 years.
• Charter business: Profitable, with total charter FTV up 25% Y/Y, representing just over 50% of flight value to customers.
• Corporate business: Improving mix, with corporate blocks at the highest percentage in history, and 40% Y/Y increase in block purchases over $1 million.
• Programmatic offering: Less than 20% of current blocks on legacy rule sets, allowing transition and consolidation. Plan to open new maintenance facility at Palm Beach International Airport, closing underutilized facilities in Cincinnati and Broomfield.

Revenue for the first quarter was $197 million, a 44% year-over-year reduction due to exiting aircraft management and sales businesses, programmatic flying area transitions, and lower industry demand. Total Private Jet Flight Transaction Value was down 26% year-over-year, but total charter FTV was up 25% year-over-year and accounted for 54% of total flight transaction value. Adjusted contribution margin was 1% for the quarter. Adjusted EBITDA loss was $49 million, flat year-over-year. GAAP net loss was $97 million, slightly improved year-over-year. Prepaid blocks were $114 million, seasonally lower vs Q4 but up 14% year-over-year. Deferred revenue balance was down 28% year-over-year to a more sustainable level.

• Expect increased flight revenue through the remainder of the year.
• Aim to achieve positive adjusted EBITDA later this year.
• Plan to further optimize fleet size to match demand, consolidate maintenance operations, and benefit from revenue and schedule management efforts.
• New Chief Commercial Officer will integrate programmatic commercial engine to drive profitable growth.