NYSE$UP

Wheels Up Experience Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Wheels Up's revenue increased for the first quarter of 2023, Ravi Thakran was named Executive Chairman, and Todd Smith was named Interim CEO.

Wheels Up Experience Inc. reported an 8% increase in revenue to $352 million for the first quarter of 2023. Active Members decreased 1% year-over-year to 12,285. The net loss increased to $101 million, and the Adjusted EBITDA loss was $48.9 million.

  • Revenue increased $26 million year-over-year to $352 million, a first quarter record.
  • Active Members decreased 1% year-over-year to 12,285 in total.
  • Live Flight Legs decreased 13% year-over-year to 15,389 in total.
  • Net loss increased $12 million year-over-year to $101 million.

Headline financials

Total Revenue

$352M

Previous: $326M+8.0%
EPS (adj)

-$3.10

Previous: -$2.50-24.0%
Live Flight Legs

15.4K

Previous: 17.6K-12.7%
Capital Expenditures

-$8.75M

Previous: -$66.3M+86.8%
Free Cash Flow

-$110M

Previous: -$155M+29.3%
Net Income

-$101M

Previous: -$88.7M-13.8%
Operating Income

-$96.7M

Previous: -$92.7M-4.2%
Gross Profit

-$1.98M

Previous: -$7.12M+72.2%
Cash & Equivalents

$363M

Previous: $538M-32.5%
Total Assets

$1.71B

Previous: $1.88B-9.3%
Stock-Based Comp

$11.5M

Previous: $22.6M-48.8%

Revenue & EPS history

Wheels Up · Revenue · Quarterly

$352M

Q1 2023+8%vs Q1 2022
Beat estimate in 3 of 10 quarters(30%)
ActualEstimate

Revenue by segment

Wheels Up · $288M total across 3 segments · Q1 2023

  • Flight
    $232M-1.9%
  • Other
    $34.7M+327.1%
  • Membership
    $21.7M+5.0%

Forward guidance

Wheels Up expects program changes to allow them to continue to scale and evolve their product offering to deliver world-class service profitably.

Tailwinds

  • Revised product offering will improve Wheels Up’s competitiveness and service delivery.
  • Revised product offering will improve the flight experience for members and customers.
  • New program with Delta Air Lines to benefit business fliers of both companies through volume-based preferential rates on Wheels Up flights.
  • Delta will continue to provide Wheels Up customers unique access and exclusive benefits such as earning SkyMiles®, SkyBonus® points and Medallion Status.
  • Member Operations Center in Atlanta, expected to open May 15, will drive improved operations, customer communications and service.

Headwinds

  • Evaluating the disposition of certain non-strategic assets
  • Net loss increased by $11.8 million year-over-year primarily driven by interest expense incurred on our Equipment Notes issued in October 2022.
  • Active Members decreased 1% year-over-year to 12,285 offset by a higher mix of Core members, in line with our conscious efforts toward more profitable flying.
  • Live Flight Legs decreased 13% year-over-year to 15,389 reflecting industry conditions and our efforts to focus on profitable flying.
  • Adjusted EBITDA loss of $48.9 million, relatively flat year-over-year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-3.5%

Avg return

Earnings day

-5.9%

Avg return

5 days after

-6.8%

Avg return

30 days after

36%

8 / 22 earnings

Positive

+34.8%

Q2 2023

Best reaction

-36.2%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-16.6%+13.8%
Q4 2025-12.4%-6.1%-28.3%
Q3 2025+5.1%+3.3%-49.6%
Q1 2025-3.5%-7.8%+13.9%
Q4 2024+5.6%+1.9%-25.2%
Q3 2024-7.4%-6.5%-1.4%
Q2 2024-4.9%-9.2%-8.6%
Q1 2024+0.9%+20.2%-9.9%
Q4 2023-12.0%-10.5%-3.3%
Q3 2023-10.0%-10.7%+32.9%
Q2 2023+34.8%+18.8%+137.5%
Q1 2023-36.2%-42.8%-39.4%
Q4 2022-12.2%-24.3%-29.1%
Q3 2022-3.7%-8.0%-36.8%
Q2 2022+10.2%+4.7%-32.5%
Q1 2022+11.7%+21.2%-2.3%
Q4 2021-11.4%-12.0%-11.7%
Q4 2019-11.4%-12.0%-11.7%
Q3 2021-20.9%-20.9%-42.5%
Q2 2021-3.2%-10.2%-11.4%
Q1 2021+0.0%+0.0%-0.1%
Q4 2020+0.4%-2.3%-4.4%
Q3 2020
Q2 2020
Q1 2020

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