Wheels Up Experience (UP) - 2024 Q4 - Annual Results

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]