NYSE$UP

Wheels Up Experience Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Wheels Up's Q3 2022 revenue increased by 39% year-over-year, reaching $420.4 million, driven by strong demand and the acquisition of Air Partner. However, the net loss also increased by $27.4 million, totaling $86.8 million.

Wheels Up reported record third-quarter revenue, up 39% year-over-year, driven by strong demand and the acquisition of Air Partner. The company is focused on achieving Adjusted EBITDA profitability in 2024 through cost reductions and streamlined operations.

  • Revenue increased 39% year-over-year to $420.4 million.
  • Active Members grew 12% year-over-year to 12,688.
  • Live Flight Legs increased 7% year-over-year to 21,025.
  • Net loss increased by $27.4 million year-over-year to a net loss of $86.8 million.

Headline financials

Total Revenue

$420M

Previous: $302M+39.2%
EPS (adj)

-$2.40

Previous: -$2.40+0.0%
Live Flight Legs

21.0K

Previous: 19.7K+6.7%
Capital Expenditures

-$80M

Previous: -$6.68M-1097.7%
Free Cash Flow

-$167M

Previous: -$65.2M-156.1%
Net Income

-$86.8M

Previous: -$58.5M-48.5%
Operating Income

-$89.7M

Previous: -$68.6M-30.8%
Gross Profit

$17.3M

Previous: $18.5M-6.3%
Cash & Equivalents

$285M

Previous: $535M-46.7%
Total Assets

$1.81B

Previous: $1.68B+7.9%
Stock-Based Comp

$22.5M

Previous: $27.9M-19.4%

Revenue & EPS history

Wheels Up · Revenue · Quarterly

$420M

Q3 2022+39.2%vs Q3 2021
Beat estimate in 3 of 10 quarters(30%)
ActualEstimate

Revenue by segment

Wheels Up · $361M total across 3 segments · Q3 2022

  • Flight
    $279M+27.7%
  • Other
    $60.1M+687.2%
  • Membership
    $22.4M+24.6%

Forward guidance

Wheels Up is focused on delivering Adjusted EBITDA profitability in 2024 through cost reductions, a streamlined organizational structure, and accelerated digital transformation.

Tailwinds

  • Strengthened cash position through the issuance of $270 million of equipment notes.
  • Program changes set to take effect on December 1st, expected to contribute to stronger Adjusted Contribution Margins in 2023.
  • Plans to consolidate its Member Operations Center into a new facility in Atlanta.
  • Continued focus on pricing and cost reductions.
  • Improved operational performance to support Adjusted EBITDA profitability in 2024.

Headwinds

  • Uncertain macroeconomic environment.
  • Increased net loss year-over-year.
  • Adjusted EBITDA loss increased year-over-year.
  • Decline in flight margins due to supply constraints and inflationary pressures.
  • Investments in technology.

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 Q3 2022

Historical avgQ3 2022

-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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