Revenue Performance - Total revenue for the three months ended December 31, 2024, was $204.8 million, a decrease of 17% compared to $246.4 million in the same period of 2023[44] - Membership revenue for the three months ended December 31, 2024, was $11.5 million, down 40% from $19.1 million in the same period of 2023[48] - Flight revenue decreased by 19% to $163.9 million for the three months ended December 31, 2024, compared to $202.4 million in the same period of 2023[48] - Aircraft management revenue for the three months ended December 31, 2024, was $2.1 million, a decline of 79% from $10.4 million in the same period of 2023[48] Profitability and Loss - The company reported a net loss of $87.5 million for the three months ended December 31, 2024, compared to a net loss of $81.1 million in the same period of 2023[36] - Adjusted EBITDA for the three months ended December 31, 2024, was a loss of $11.3 million, an improvement from a loss of $38.1 million in the same period of 2023[36] - Adjusted Contribution Margin improved to 19.3% for the three months ended December 31, 2024, compared to 1.2% in the same period of 2023[44] Expenses and Charges - Total cost of revenue for the twelve months ended December 31, 2024, was significantly impacted by various expenses, including $45,977 in total equity-based compensation, compared to $25,633 in the previous year, marking an increase of 79%[51] - For the three months ended December 31, 2024, total equity-based compensation expense was $12,613, an increase from $3,983 in the same period of 2023, reflecting a significant rise of 216%[49] - Restructuring charges for the twelve months ended December 31, 2024, totaled $7,850, compared to $43,655 in the previous year, indicating a decrease of 82%[49] - The company reported a total of $6,599 in other expenses for the twelve months ended December 31, 2024, compared to $4,018 in the previous year, indicating an increase of 64%[51] - The total expenses for the three months ended December 31, 2024, amounted to $12,613, which is a significant increase from the previous year's total of $3,983, reflecting a growth of 216%[49] - The total expenses related to technology and development for the twelve months ended December 31, 2024, were $1,302, compared to $2,096 in the previous year, showing a decline of 38%[51] - For the three months ended December 31, 2024, the company reported restructuring charges of $365, a decrease from $2,749 in the same period of 2023, indicating a reduction of 87%[49] Strategic Initiatives - The company initiated a fleet modernization strategy in October 2024, which includes transitioning Embraer Phenom 300 series aircraft to operations[38] - The Atlanta Member Operations Center began operations on May 15, 2023, with related expenses concluding in the second quarter of 2024[39] - The total fleet modernization expense for the twelve months ended December 31, 2024, was $28,135, which includes a loss on debt extinguishment of $14.4 million associated with the redemption of the Company's former 2022 equipment notes[49] - The Atlanta Member Operations Center set-up expense for the twelve months ended December 31, 2024, was $3,481, a decrease from $30,568 in the same period of 2023, representing an 89% reduction[51] Booking Trends - Total Private Jet Gross Bookings for the year ended December 31, 2024, were significantly impacted, reflecting a trend in customer spending[34] - The company incurred $6,749 in certificate consolidation expenses for the twelve months ended December 31, 2024, compared to $11,375 in the previous year, reflecting a decrease of 41%[51]

Core Insights - Wheels Up Experience Inc. has appointed John Verkamp as Chief Financial Officer to drive the company's strategic growth plan [1][3] - John Verkamp brings over 20 years of financial leadership experience from General Electric and its subsidiaries, particularly in the aviation and power sectors [2][3] - The CEO of Wheels Up expressed confidence in John's ability to contribute to the company's financial improvement and transformation efforts [3] Company Overview - Wheels Up is a leading provider of on-demand private aviation in the U.S., offering a diverse fleet and a global network of safety-vetted charter operators [5] - The company provides various services, including freight, safety, security, and managed services, catering to individuals and government organizations [5] - Customers can access charter and membership programs through a strategic partnership with Delta Air Lines [5]

Core Insights - Wheels Up Experience Inc. reported a stronger financial position at the end of 2024, with the fourth quarter showing the lowest Adjusted EBITDA loss since going public and nearly breakeven performance in December [3][6] - The company is undergoing a fleet modernization strategy, transitioning to preferred aircraft types, which is expected to enhance operational efficiency and profitability [7][8] - John Verkamp has been appointed as the new Chief Financial Officer, effective March 31, 2025, bringing extensive financial leadership experience [7] Financial Performance - For the December quarter 2024, Wheels Up generated revenue of $204.8 million, with a net loss of $87.5 million, equating to $(0.13) per share [6][8] - The full year 2024 revenue was $792.1 million, with a net loss of $339.6 million, or $(0.49) per share, representing a 30% improvement in net loss compared to 2023 [6][8] - Adjusted Contribution for the December quarter was $39.6 million, with an Adjusted Contribution Margin of 19.3%, a significant increase of over 18 percentage points year-over-year [6][8] Operational Highlights - Active Members decreased by 46% year-over-year to 5,369, while Active Users fell by 32% to 7,286 [5][8] - The company achieved a 98% Completion Rate and 80% On-Time Performance during the December quarter, despite challenges from weather and air traffic control [7][8] - Utility, defined as revenue-generating flight hours per available aircraft, increased by 33% to 41.1 hours [8] Strategic Initiatives - The fleet modernization strategy includes the addition of 18 new Phenom jets and the retirement of 50 legacy jets, aimed at improving operational reliability and customer satisfaction [7][8] - Wheels Up is collaborating with Delta to develop integrated aviation solutions for corporate and premium leisure customers, enhancing the overall customer experience [7][8] - A new five-year, $332 million secured revolving credit facility was established with Bank of America, providing enhanced access to capital for fleet acquisitions [7][8]

Company Overview - Wheels Up Experience Inc. is a leading provider of on-demand private aviation in the U.S. and one of the largest companies in the industry [2] - The company offers a complete global aviation solution with a large and diverse fleet, supported by a network of safety vetted charter operators [2] - Wheels Up has a strategic partnership with Delta Air Lines, providing unique commercial travel benefits to its customers [2] Financial Information - Wheels Up will release its fourth quarter 2024 financial results on March 11, 2025 [1] - Earnings materials will be available on the Wheels Up investor relations website [1] Customer Experience - The company is guided by the mission to deliver a premium solution for every customer journey [3] - Wheels Up provides digital convenience through its mobile app and website, allowing members and customers to search, book, and fly [3]

Group 1 - The S&P 500 is currently near all-time highs, prompting a strategy to invest in lesser-known companies undergoing a turnaround and showing lower correlation to the broader market performance [1] - Gary Alexander has extensive experience in technology sectors, both on Wall Street and in Silicon Valley, and has been involved with seed-round startups, providing insights into current industry trends [1] Group 2 - The article emphasizes the importance of diversifying investments into companies that are not heavily influenced by the overall market trends, particularly in a high-performing market environment [1]

Core Viewpoint - Wheels Up Experience Inc. has appointed Jill Greer as Executive Vice President of Investor Relations and Sustainability, aiming to enhance its investment narrative and sustainability strategy [1][2][4]. Group 1: Appointment and Experience - Jill Greer brings over 20 years of aviation experience, having previously worked at Delta Air Lines for 21 years, where she led investor relations and finance digital transformation [1][3]. - In her most recent role as Vice President of Investor Relations at Travel + Leisure Co., she improved investor engagement and corporate storytelling [3]. - Greer has a strong background in operational finance, corporate communications, and ESG initiatives, having developed ADT's first ESG report during her tenure there [3]. Group 2: Responsibilities and Goals - In her new role, Greer will shape Wheels Up's investment narrative and lead engagement with the investment community as the company executes its long-term strategic plan [2]. - She will also focus on developing and implementing the company's ESG strategy, enhancing Wheels Up's commitment to sustainability [2][4]. Group 3: Company Overview - Wheels Up is a leading provider of on-demand private aviation in the U.S., offering a diverse fleet and a global network of safety-vetted charter operators [5]. - The company provides various services, including freight, safety, security, and managed services, to individuals and government organizations [5].

Core Insights - Wheels Up Experience Inc. has closed a $332 million revolving equipment notes facility led by Bank of America, with credit support from Delta Air Lines, to finance the acquisition of GrandView Aviation's fleet of 17 Embraer Phenom 300 and Phenom 300E aircraft [1][2] Group 1: Financial Transactions - The new $332 million facility refinances Wheels Up's existing fleet and finances the purchase of GrandView's fleet, providing additional borrowing access for fleet transition [2] - The acquisition of GrandView Aviation's assets is a strategic move to enhance customer experience and support the company's growth goals [1][2] Group 2: Fleet Expansion and Customer Experience - The acquisition of GrandView's Phenom fleet allows Wheels Up to introduce newer, more capable aircraft into its offerings, enhancing flexibility and comfort for customers [2] - The company aims to deliver a premium solution for every customer journey, supported by a mobile app and website for easy access to services [4]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $194 million, roughly flat sequentially, indicating stability after previous declines [32] - Adjusted contribution margin was 14.8%, up significantly from 7.8% in Q2 and 1% in Q1, marking the highest level since going public [36] - Adjusted EBITDA loss improved to $20 million, a reduction of nearly 50% sequentially, reflecting operational improvements [11][37] - Cash burn reduced significantly, with operating cash flow improving 44% sequentially and 94% year-over-year, from a cash outflow of $250 million a year ago to $15 million in the current quarter [39] Business Line Data and Key Metrics Changes - Private jet gross bookings were down 20% year-over-year but only 6% sequentially, reflecting relative stability [33] - Prepaid blocks increased by 86% year-over-year to $147 million, indicating strong traction with corporate customers [38] - Total gross bookings, including private jet, group charter, and cargo, were down 16% year-over-year but only 4% sequentially [34] Market Data and Key Metrics Changes - Live leg demand was flat sequentially versus an industry decline of over 15%, showcasing outperformance [9] - The company expects both private jet and total gross bookings to increase sequentially in Q4 2024 [34] Company Strategy and Development Direction - The company aims to become the best-run private aviation company globally, focusing on operational improvements and customer-centric offerings [5][46] - A fleet modernization strategy was announced, transitioning to Embraer's Phenom 300 series and Bombardier's Challenger 300 series aircraft, expected to enhance operational efficiency and reduce costs [14][23] - The partnership with Delta Airlines is central to the company's strategy, providing unique integrated travel solutions [7][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA for the full year in 2025, despite potential headwinds in Q4 [12][26] - The company anticipates that the fleet modernization will significantly improve operational performance and profitability margins [23][43] - Management highlighted a nearly 50% increase in customer satisfaction, indicating positive reception of recent changes [24] Other Important Information - The company has entered into a commitment letter with Bank of America for a new up to $332 million senior secured revolving credit facility, enhancing liquidity [21][44] - The company is actively searching for a permanent CFO, with strong interest from candidates due to the company's progress [29] Q&A Session Summary Question: What are the expectations for future growth? - Management expects to resume growth in 2025, supported by the fleet modernization and improved operational metrics [32][46] Question: How is the partnership with Delta Airlines impacting sales? - The partnership has led to a significant increase in corporate block sales, representing the highest mix of overall block sales in September [13][38] Question: What are the anticipated benefits of the fleet modernization? - The modernization is expected to improve maintenance availability, asset utilization, and lower operating costs, driving profitability [42][43]

Financial Performance - Revenue for Q3 2024 was $193.9 million, a decrease of 39.4% compared to $320.1 million in Q3 2023[8] - Net loss for Q3 2024 was $57.7 million, compared to a net loss of $144.8 million in Q3 2023, representing a 60.2% improvement[9] - The company reported a comprehensive loss of $50.9 million for Q3 2024, down from $153.0 million in Q3 2023[9] - Net loss for the nine months ended September 30, 2024, was $252,097, a significant improvement from a net loss of $406,272 for the same period in 2023, representing a reduction of approximately 38%[14] - Total revenue for the nine months ended September 30, 2024, was $587,289, down 42% from $1,006,937 in the same period of 2023[29] - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.08), compared to $(3.51) for the same period in 2023[152] Cost Management - Total costs and expenses for Q3 2024 were $235.8 million, down 47.5% from $449.1 million in Q3 2023[8] - Adjusted EBITDA is expected to improve as the company implements cost reduction measures and operational efficiency strategies[5] - The company incurred restructuring charges of $10.5 million during the nine months ended September 30, 2023, primarily related to severance payments and employee benefits[141][142] Equity and Deficit - The accumulated deficit increased to $2.02 billion as of September 30, 2024, compared to $1.76 billion a year earlier[7] - As of September 30, 2024, Wheels Up Experience Inc. reported a total equity of $1,911,362,000, with an accumulated deficit of $(2,015,357,000)[10] - Total liabilities and equity stood at $1.04 billion, a decrease from $1.32 billion in the previous year[7] Cash Flow and Liquidity - Cash flows from operating activities showed a net cash used of $115,814 for the nine months ended September 30, 2024, compared to $661,494 for the same period in 2023, indicating an 83% improvement[14] - Cash, cash equivalents, and restricted cash at the end of the period were $148,834, down from $274,162 at the end of September 30, 2023[14] - Cash and cash equivalents decreased to $115.909 million as of September 30, 2024, from $263.909 million as of December 31, 2023[53] Revenue Streams - Membership revenue for the nine months ended September 30, 2024, was $46,131, down 28% from $63,780 in the same period of 2023[29] - The company reported a significant decrease in deferred revenue, with a balance of $12,813 for the nine months ended September 30, 2024, compared to $378,949 for the same period in 2023[14] - The company completed the sale of its aircraft management business on September 30, 2023, impacting revenue figures[29] Debt and Financing - Total long-term debt as of September 30, 2024, was $209.6 million, a decrease from $235.1 million as of December 31, 2023[57] - The company entered into a Credit Agreement on September 20, 2023, providing a term loan facility of $350.0 million and a revolving credit facility of $100.0 million[64] - Maturities of principal debt payments for the next five years total $596.9 million, with the largest payment of $496.7 million due in 2028[58] Shareholder Equity and Compensation - The total equity-based compensation expense for the nine months ended September 30, 2024, was $33.4 million, an increase from $21.7 million for the same period in 2023[121] - The number of non-vested PSUs as of September 30, 2024, was 387 thousand, with a weighted-average grant fair value of $3.05[105] - The total unrecognized compensation cost related to outstanding and unvested Executive Performance Awards was $164.4 million, expected to be recognized over 4.3 years[113] Legal and Compliance - The company filed a lawsuit against Exclusive Jets, LLC for wrongful termination of the Fleet Guaranteed Revenue Program Agreement, seeking compensatory damages including the return of material deposits totaling $10.3 million and $10.5 million as of September 30, 2024, and December 31, 2023, respectively[135][137] - The estimated potential exposure for sales and use tax liability was $10.3 million and $10.5 million as of September 30, 2024, and December 31, 2023, respectively, included in accrued expenses[136][137] Taxation - The company recorded income tax expenses of $0.4 million and $0.7 million for the three and nine months ended September 30, 2024, respectively[144] - The effective tax rate for the three months ended September 30, 2024, was (0.7)%, differing from the federal statutory rate of 21% due to a full valuation allowance against deferred tax assets[145] - As of September 30, 2024, the company established a valuation allowance on the majority of its U.S. deferred tax assets, concluding it is more likely than not that these assets will not be realized[147]

Improvement in financial performance driven by operating initiatives over past yearFleet modernization plan represents next phase of strategic journey to profitability  New credit facility expected to strengthen balance sheet; credit support from Delta Air Lines underscores commitment to strategic partnershipATLANTA, Nov. 7, 2024 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE:UP) today announced financial results for the third quarter, which ended September 30, 2024.Third Quarter 2024 Highlights1 Revenue w ...