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Wheels Up Announces Record Revenue Growth of 113% for Second Quarter 2021

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Wheels Up (NYSE:UP) reported a strong second quarter for 2021, with revenue increasing 113% year-over-year to $285.6 million. Active Members surged 47% to 10,515, and Live Flight Legs rose 146% to 18,234. While the company experienced a net loss of $(29.0 million), this was only a 6% increase from the previous year. Adjusted EBITDA improved by $7.6 million year-over-year to $(8.5 million). The company attributed growth to strong demand across its fleet and strategic initiatives. A merger with Aspirational Consumer Lifestyle Corp. was completed on July 13, 2021.

Positive
  • Revenue increased 113% year-over-year to $285.6 million.
  • Active Members grew by 47% to 10,515.
  • Live Flight Legs rose 146% to 18,234.
  • Adjusted EBITDA improved by $7.6 million year-over-year to $(8.5 million).
Negative
  • Net loss increased by $1.6 million year-over-year to $(29.0 million).

NEW YORK, Aug. 12, 2021 /PRNewswire/ -- Wheels Up (NYSE:UP) today announced financial results for the second quarter, which ended June 30, 2021.

Second Quarter 2021 Highlights

  • Revenue increased 113% year-over-year to $285.6 million
  • Active Members grew 47% year-over-year to 10,515 in total
  • Live Flight Legs increased 146% year-over-year to 18,234 in total
  • Net loss increased by $1.6 million year-over-year to $(29.0) million
  • Adjusted EBITDA improved by $7.6 million year-over-year to $(8.5) million

"The accelerating growth in our revenue is a great way to mark our first reported results as a public company and creates a solid foundation to build upon," said Kenny Dichter, Wheels Up Chairman & CEO. "Our iconic brand, combined with our compelling membership model and exclusive partnerships and experiences, have uniquely positioned us to gain market share during this time of robust demand. As always, I want to recognize our hardworking team for their tireless efforts and thank our loyal Members and Customers for their trust in us."

"The demand in the first half of the year has increased across all cabin classes and our diverse fleet of aircraft is contributing to our success in attracting new Members, retaining existing Members and driving an increase in live flight legs," said Eric Jacobs, Wheels Up Chief Financial Officer. "Our strategic initiatives are resonating with Members and Customers, and we believe that our investments in operations, technology, product development and customer service will help ensure a premium experience and drive future operating efficiencies."

Building a Marketplace

The Company is focused on building the leading demand generation platform for private aviation and connecting travel demand with fragmented and underutilized assets while continuing to improve customer experience. The increase in both demand and supply drives more liquidity in the marketplace.

Demand Initiatives

  • Partnered with American Express as the exclusive private jet partner for the new American Express Premium Private Jet Program for all Platinum® Card Members.
  • Launched "UP for Business", a new customizable solution established within Wheels Up to meet the travel needs of corporate clients.
  • Added iconic luxury brands to the robust Member Benefits platform including Porsche Cars North America and Abercrombie & Kent, the world's leading luxury travel company.

Supply Initiatives

  • Continued to build on the Company's technology capabilities with the conversion of Wheels Up's Mountain Aviation, LLC fleet onto the Avianis Flight Management System in June, providing the ability to better optimize supply.
  • Improved forecasting capabilities powered by machine learning, which facilitates the Company's ability to make short- and long-term commitments to secure supply.
  • Increased partnerships with third-party operators through Guaranteed Rate Programs (GRPs) to secure additional supply.

Other Recent Highlights

  • Completed merger with Aspirational Consumer Lifestyle Corp. on July 13, 2021, with shares commencing trading on the New York Stock Exchange on July 14, 2021 under the "UP" ticker symbol.
  • Continued to focus on diversity, equity and inclusion with C200, the preeminent organization of women business leaders representing $1.4 trillion in combined revenue, by hosting a unique Porsche driving experience event, and announced a partnership with the NFL Players Association and will be participating in its Community MVP program.

Financial and Operating Highlights

The historical financial information in this press release relates to Wheels Up Partners Holdings LLC's operations prior to the business combination. Going forward, financial results will be presented on a combined company basis.


As of June 30,




2021


2020


% Change

Active Members(1)

10,515



7,172



47

%








Three Months Ended

June 30, 2021



(in thousands, except percentages, Active Users,  Live Flight Legs and Revenue per Live Flight Leg)

2021


2020


% Change

Active Users(1)

11,281



8,890



27

%

Live Flight Legs(1)

18,234



7,404



146

%

Revenue per Live Flight Leg

$

11,663



$

11,299



3

%

Revenue

$

285,580



$

134,331



113

%

Net loss

$

(28,954)



$

(27,366)



(6)

%

Adjusted EBITDA(1)

$

(8,479)



$

(16,031)



47

%








Six Months Ended

June 30, 2021



(in thousands, except percentages)

2021


2020


% Change

Revenue

$

547,237



$

290,427



88

%

Net loss

$

(61,167)



$

(71,837)



15

%

Adjusted EBITDA(1)

$

(17,141)



$

(33,085)



48

%


(1) For information regarding Wheels Up's use and definition of this measure see "Definitions of Key Operating Metrics and Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Financial Measures" sections herein.

For the second quarter:

  • Active Members grew 47% year-over-year to 10,515 driven by strong new member additions and Core membership retention as well as continued success converting legacy Wheels Up Private Jets LLC Jet Card holders into Wheels Up Members.
  • Active Users grew 27% to 11,281 year-over-year primarily driven by the growth in Active Members.
  • Live Flight Legs increased by 146% year-over-year to 18,234 with strong flight demand across all cabin classes driven by the growth in Active Members and Active Users and the impact of COVID-19 on 2020 results. The acquisitions of Mountain Aviation, LLC and Wheels Up Private Jets LLC also contributed to the growth.
  • Revenue per Live Flight Leg increased 3% year-over-year to $11,663 as a result of a higher mix of larger cabin flying and partially offset by a decrease in average flight stage length.
  • Revenue increased 113% year-over-year driven by strong flight demand, the impact of COVID-19 on 2020 results and recent acquisitions.
  • Adjusted EBITDA of $(8.5) million, improving $7.6 million year-over-year, due to operating leverage of the business.

Webcast and Conference Call Information

A conference call with management will be held today at 8:30 am ET. To access a live webcast of the conference call and supporting presentation materials, please click on the Wheels Up investor site (www.wheelsup.com/investors). To participate by phone, please dial 844-200-6205 (Toll Free) or 44-208-0682-558 (Toll/International) using the access code 077326. Participants are asked to dial in 15 minutes early to ensure a timely connection. This earnings press release and any supporting materials will be available on the Company's investor relations website. We also provide announcements regarding the Company's financial performance, including SEC filings, investor events, press and earnings releases, and blogs, on the investor relations website.

About Wheels Up

Wheels Up Experience Inc. ("Wheels Up"), a leading demand generator in private aviation, offers a total private aviation solution that includes world-class safety, service, and flexibility through on-demand flights, membership programs, corporate solutions, aircraft management, whole aircraft sales, and commercial travel benefits through a strategic partnership with Delta Air Lines. Wheels Up, which was founded and is led by renowned entrepreneur Kenny Dichter, is uniquely positioned to offer its Customers and Members access to over 1,500 safety-vetted and verified aircraft.

Through the Wheels Up App anyone can search, book, and fly. Wheels Up Connect, Core, and Business memberships provide enhancements such as flight sharing, empty-leg Hot Flights, Shuttle Flights, Shared Flights, signature Wheels Down events, and exclusive member benefits from preeminent lifestyle brands. The Company's ongoing Wheels Up Cares program aligns with philanthropic organizations and initiatives that affect and matter to the Company and its customers, members, stakeholders, families, and friends. The Wheels Up Cares fleet is comprised of five custom painted Beechcraft King Air 350i aircraft; each plane serves as a flying symbol for a specific cause.

All Wheels Up flights are operated by the Company's DOT/FAA-authorized air carrier subsidiaries (Wheels Up Private Jets LLC, Gama Aviation LLC, Mountain Aviation LLC, Sterling Aviation LLC, and TWC Aviation LLC) or by an approved vendor air carrier that has undergone a comprehensive safety assessment.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding Wheels Up's expectations, hopes, beliefs, intentions or strategies regarding the future including, without limitation, statements regarding: (i) the size, demands and growth potential of the markets for Wheels Up's products and services and Wheels Up's ability to serve those markets, (ii) the degree of market acceptance and adoption of Wheels Up's products and services, (iii) Wheels Up's ability to develop innovative products and services and compete with other companies engaged in the private aviation industry and (iv) Wheels Up's ability to attract and retain customers. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Wheels Up's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in the registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission ("SEC") by Wheels Up on August 3, 2021, and other documents filed by Wheels Up from time to time with the SEC. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Wheels Up undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. We do not give any assurance that Wheels Up will achieve its expectations.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures such as Adjusted EBITDA, Contribution, and Contribution Margin. These non-GAAP financial measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP. Reconciliations of non-GAAP financial measures to their most directly comparable GAAP counterparts are included in the "Reconciliations of Non-GAAP Financial Measures" section herein to this earnings press release. Wheels Up believes that these non-GAAP financial measures of financial results provide useful supplemental information to investors about Wheels Up. However, there are a number of limitations related to the use of these non-GAAP financial measures and their nearest GAAP equivalents, including that they exclude significant expenses that are required by GAAP to be recorded in Wheels Up's financial measures. In addition, other companies may calculate non-GAAP financial measures differently, or may use other measures to calculate their financial performance, and therefore, Wheels Up's non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

For more information on these non-GAAP financial measures, see the sections titled "Definitions of Key Operating Metrics and Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Financial Measures" included at the end of this earnings press release.

WHEELS UP PARTNERS HOLDINGS LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except share data)



June 30, 2021


December 31, 2020

ASSETS




Current assets:




Cash and cash equivalents

$

160,646



$

312,799


Accounts receivable, net

61,940



50,397


Other receivables

10,296



8,205


Parts and supplies inventories, net

8,106



5,320


Deferred offering costs

6,404




Prepaid expenses and other

22,698



18,801


Total current assets

270,090



395,522


Property and equipment, net

316,662



323,090


Operating lease right-of-use assets

117,277



64,479


Goodwill

437,376



400,160


Intangible assets, net

155,417



163,710


Restricted cash

12,077



12,077


Employee loans receivable, net



102


Other non-current assets

898



849


Total assets

$

1,309,797



$

1,359,989


LIABILITIES AND MEMBERS' EQUITY




Current liabilities:




Current maturities of long-term debt

$

59,566



$

62,678


Accounts payable

44,647



20,920


Accrued expenses

90,674



71,381


Deferred revenue, current

565,732



651,096


Operating lease liabilities, current

32,388



15,858


Intangible liabilities, current

2,000



2,000


Other current liabilities

15,471



15,980


Total current liabilities

810,478



839,913


Long-term debt

122,891



148,411


Deferred revenue, non-current

1,967



1,982


Operating lease liabilities, non-current

90,238



56,358


Intangible liabilities, non-current

15,083



16,083


Other non-current liabilities

3,546



3,415


Total liabilities

1,044,203



1,066,162


Commitments and contingencies




Members' equity:




Class A preferred interests (73,723,250 interests issued and outstanding as of 2021 and 2020)




Class B preferred interests (34,023,527 interests issued and outstanding as of 2021 and 2020)




Class C preferred interests (37,642,050 interests issued and outstanding as of 2021 and 2020)




Class D preferred interests (36,909,359 interests issued and outstanding as of 2021 and 2020)




Class E preferred interests (112,949,305 interests issued and outstanding as of 2021 and 2020)

340,400



401,567


Common interests (71,882,729 and 63,262,039 interests issued and outstanding as of 2021 and
2020)

39,131



8,959


Common restricted interests




Common profits interests

9,442



8,957


Common stock options

6,752



4,475


Accumulated deficit

(130,131)



(130,131)


Total members' equity

265,594



293,827


Total liabilities and members' equity

$

1,309,797



$

1,359,989


 

WHEELS UP PARTNERS HOLDINGS LLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands)



Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Revenue

$

285,580



$

134,331



$

547,237



$

290,427










Costs and expenses:








Cost of revenue

255,188



127,336



489,695



275,294


Technology and development

8,025



4,449



15,049



9,301


Sales and marketing

17,895



11,587



33,689



25,238


General and administrative

15,786



10,277



33,955



24,196


Depreciation and amortization

13,482



15,273



27,313



29,467


Cares Act grant



(13,277)





(13,277)


Total costs and expenses

310,376



155,645



599,701



350,219










Loss from operations

(24,796)



(21,314)



(52,464)



(59,792)










Other income (expense):








Interest income

6



50



18



467


Interest expense

(4,164)



(6,102)



(8,721)



(12,512)


Total other expense

(4,158)



(6,052)



(8,703)



(12,045)










Net loss

$

(28,954)



$

(27,366)



$

(61,167)



$

(71,837)


 

WHEELS UP PARTNERS HOLDINGS LLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)



Six Months Ended June 30,


2021


2020

OPERATING ACTIVITIES:




Net loss

$

(61,167)



$

(71,837)


Adjustments to reconcile net loss to net cash used in operating activities:




Depreciation and amortization

27,313



29,467


Amortization of deferred financing costs and debt discount

618



856


Equity-based compensation

2,762



1,356


Provision for expected credit losses

498



17


Changes in operating assets and liabilities, net of effects from acquisitions:




Accounts receivable

(1,461)



27,307


Other receivables

(2,091)



3,822


Parts and supplies inventories

(2,114)



595


Prepaid expenses and other

(265)



(276)


Other non-current assets

(49)



814


Operating lease liabilities, net

(504)



(378)


Accounts payable

14,158



(4,547)


Accrued expenses

(7,275)



(6,693)


Other current liabilities

(508)



(600)


Other non-current liabilities

132



882


Deferred revenue

(88,958)



9,852


Net cash used in operating activities

(118,911)



(9,363)






INVESTING ACTIVITIES:




Purchases of property and equipment

(4,780)



(3,174)


Acquisition of businesses, net of cash acquired

7,844



98,142


Capitalized software development costs

(5,732)



(3,045)


Net cash (used in) provided by investing activities

(2,668)



91,923






FINANCING ACTIVITIES:




Proceeds from long-term debt



755


Repayments of long-term debt

(29,250)



(20,247)


Deferred offering costs

(1,426)




Loans to employees

102



(45)


Net cash used in financing activities

(30,574)



(19,537)






NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(152,153)



63,023


CASH, CASH EQUIVALENTS AND RESTRICTED CASH BEGINNING OF PERIOD

324,876



96,440


CASH, CASH EQUIVALENTS AND RESTRICTED CASH END OF PERIOD

$

172,723



$

159,463


SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:




Non-cash consideration issued for business acquisition of Delta Private Jets LLC

$



$

427,007


Non-cash consideration issued for business acquisition of Gama Aviation LLC

$



$

32,638


Non-cash consideration issued for business acquisition of Mountain Aviation, LLC

$

30,172



$


Definitions of Key Operating Metrics and Non-GAAP Financial Measures

We report certain key financial measures that are not required by, or presented in accordance with, GAAP.

These non-GAAP financial measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to any performance measures derived in accordance with GAAP. We believe that these non-GAAP financial measures of financial results provide useful supplemental information to investors, about Wheels Up. However, there are a number of limitations related to the use of these non-GAAP financial measures and their nearest GAAP equivalents, including that they exclude significant expenses that are required by GAAP to be recorded in Wheels Up's financial measures. In addition, other companies may calculate non-GAAP financial measures differently, or may use other measures to calculate their financial performance, and therefore, our non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies.

Definitions of Key Operating Metrics

Active Members. We define Active Members as the number of Connect, Core, and Business membership accounts that generated membership revenue in a given period and are active as of the end of the reporting period. We use Active Members to assess the adoption of our premium offerings which is a key factor in our penetration of the market in which we operate and a key driver of membership and flight revenue.

Active Users. We define Active Users as Active Members and legacy WUPJ jet card holders as of the reporting date plus unique non-member consumers who completed a revenue generating flight at least once in a given period and excluding wholesale flight activity. While a unique consumer can complete multiple revenue generating flights on our platform in a given period, that unique user is counted as only one Active User. We use Active Users to assess the adoption of our platform and frequency of transactions, which are key factors in our penetration of the market in which we operate and our growth in revenue.

Live Flight Legs. We define Live Flight Legs as the number of completed one-way revenue generating flight legs in a given period. The metric excludes empty repositioning legs and owner legs related to aircraft under management. We believe Live Flight Legs are a useful metric to measure the scale and usage of our platform, and our growth in flight revenue.

Definitions of Non-GAAP Financial Measures

Adjusted EBITDA. We calculate Adjusted EBITDA as net loss adjusted for (i) interest income (expense), (ii) depreciation and amortization, (iii) equity-based compensation expense, (iv) acquisition and integration related expenses, (v) public company readiness related expenses and (vi) other items not indicative of our ongoing operating performance, including the CARES Act grant and COVID-19 response initiatives for 2020.

We include Adjusted EBITDA because it is a supplemental measure used by our management team for assessing operating performance. Adjusted EBITDA is used in conjunction with bonus program target achievement determinations, strategic internal planning, annual budgeting, allocating resources and making operating decisions. In addition, Adjusted EBITDA provides useful information for historical period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and variable amounts.

Contribution and Contribution Margin. We define Contribution as revenue less cost of revenue. Contribution Margin is calculated by dividing contribution by total revenue.

We include Contribution and Contribution Margin as supplemental measures for assessing operating performance. Contribution and Contribution Margin are used to understand our ability to achieve profitability over time through scale and leveraging costs. In addition, Contribution and Contribution Margin provides useful information for historical period-to-period comparisons of our business and to identify trends.

Reconciliations of Non-GAAP Financial Measures

Adjusted EBITDA

The following table reconciles Adjusted EBITDA to net loss, which is the most directly comparable GAAP measure (in thousands):


Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Net loss

$

(28,954)



$

(27,366)



$

(61,167)



$

(71,837)


Add back (deduct)








Interest expense

4,164



6,102



8,721



12,512


Interest income

(6)



(50)



(18)



(467)


Depreciation and amortization

13,482



15,273



27,313



29,467


Equity-based compensation expense

1,349



772



2,762



1,356


Public company readiness expense

370



44



843



202


Acquisition and integration expense

1,116



1,127



4,374



7,318


CARES Act grant



(13,277)





(13,277)


COVID-19 response initiatives



450





450


Corporate headquarters relocation expense



894



31



1,191


Adjusted EBITDA

$

(8,479)



$

(16,031)



$

(17,141)



$

(33,085)


The following tables reconcile Adjusted EBITDA to net loss, including the impact of reconciled items on individual income statement expense classifications (in thousands):


Three Months Ended June 30, 2021


GAAP as
reported


Equity-based
compensation
expense


Public
company
readiness
expense


Acquisition
and
integration
expense


Corporate
headquarters
relocation
expense


Non-GAAP

Revenue

$

285,580



$



$



$



$



$

285,580














Costs and expenses:












Cost of revenue

255,188



(51)









255,137


Technology and development

8,025



(92)









7,933


Sales and marketing

17,895



(216)









17,679


General and administrative

15,786



(990)



(370)



(1,116)





13,310


Depreciation and amortization

13,482











13,482


Total costs and expenses:

310,376



(1,349)



(370)



(1,116)





307,541














Loss from operations

(24,796)



1,349



370



1,116





(21,961)














Other (expense) income












Interest income

6











6


Interest expense

(4,164)











(4,164)


Total other expense

(4,158)



$



$



$



$



(4,158)














Net loss

$

(28,954)











(26,119)














Add back (deduct)












Depreciation and amortization











13,482


Interest income











(6)


Interest expense











4,164


Adjusted EBITDA











$

(8,479)





Three Months Ended June 30, 2020


GAAP as
reported


Equity-based
compensation
expense


Public
company
readiness
expense


Acquisition
and
integration
expense


COVID-19
response
initiatives


Cares Act
grant
recognition


Corporate
headquarters
relocation
expense


Non-
GAAP

Revenue

$

134,331



$



$



$



$



$



$



$

134,331


















Costs and expenses:
















Cost of revenue

127,336



(59)







(279)







126,998


Technology and development

4,449



(106)













4,343


Sales and marketing

11,587



(276)













11,311


General and administrative

10,277



(331)



(44)



(1,127)



(171)





(894)



7,710


Depreciation and amortization

15,273















15,273


CARES Act grant

(13,277)











13,277






Total costs and expenses:

155,645



(772)



(44)



(1,127)



(450)



13,277



(894)



165,635


















Loss from operations

(21,314)



772



44



1,127



450



(13,277)



894



(31,304)


















Other (expense) income
















Interest income

50















50


Interest expense

(6,102)















(6,102)


Total other expense

(6,052)



$



$



$



$



$



$



(6,052)


















Net loss

$

(27,366)















(37,356)


















Add back (deduct)
















Depreciation and amortization















15,273


Interest income















(50)


Interest expense















6,102


Adjusted EBITDA















$

(16,031)





Six Months Ended June 30, 2021


GAAP as
reported


Equity-based
compensation
expense


Public
company
readiness
expense


Acquisition
and
integration
expense


Corporate
headquarters
relocation
expense


Non-GAAP

Revenue

$

547,237



$



$



$



$



$

547,237














Costs and expenses:












Cost of revenue

489,695



(100)





(1,011)





488,584


Technology and development

15,049



(187)









14,862


Sales and marketing

33,689



(452)









33,237


General and administrative

33,955



(2,023)



(843)



(3,363)



(31)



27,695


Depreciation and amortization

27,313











27,313


Total costs and expenses:

599,701



(2,762)



(843)



(4,374)



(31)



591,691














Loss from operations

(52,464)



2,762



843



4,374



31



(44,454)














Other (expense) income












Interest income

18











18


Interest expense

(8,721)











(8,721)


Total other expense

(8,703)



$



$



$



$



(8,703)














Net loss

$

(61,167)











(53,157)














Add back (deduct)












Depreciation and amortization











27,313


Interest income











(18)


Interest expense











8,721


Adjusted EBITDA











$

(17,141)





Six Months Ended June 30, 2020


GAAP as
reported


Equity-based
compensation
expense


Public
company
readiness
expense


Acquisition
and
integration
expense


COVID-19
response
initiatives


Cares Act
grant
recognition


Corporate
headquarters
relocation
expense


Non-
GAAP

Revenue

$

290,427



$



$



$



$



$



$



$

290,427


















Costs and expenses:
















Cost of revenue

275,294



(117)







(279)







274,898


Technology and development

9,301



(213)













9,088


Sales and marketing

25,238



(553)













24,685


General and administrative

24,196



(473)



(202)



(7,318)



(171)





(1,191)



14,841


Depreciation and amortization

29,467















29,467


CARES Act grant

(13,277)











13,277






Total costs and expenses:

350,219



(1,356)



(202)



(7,318)



(450)



13,277



(1,191)



352,979


















Loss from operations

(59,792)



1,356



202



7,318



450



(13,277)



1,191



(62,552)


















Other (expense) income
















Interest income

467















467


Interest expense

(12,512)















(12,512)


Total other expense

(12,045)



$



$



$



$



$



$



(12,045)


















Net loss

$

(71,837)















(74,597)


















Add back (deduct)
















Depreciation and amortization















29,467


Interest income















(467)


Interest expense















12,512


Adjusted EBITDA















$

(33,085)


Contribution and Contribution Margin

The following table reconciles Contribution to gross profit (loss), which is the most directly comparable GAAP measure (in thousands, except percentages):


Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Revenue

$

285,580


$

134,331


$

547,237


$

290,427

Less: Cost of revenue

(255,188)


(127,336)


(489,695)


(275,294)

Less: Depreciation and amortization

(13,482)


(15,273)


(27,313)


(29,467)

Gross profit (loss)

$

16,910


$

(8,278)


$

30,229


$

(14,334)

Gross margin

5.9

%


(6.2)

%


5.5

%


(4.9)

%

Add back:
















Depreciation and amortization

13,482


15,273


27,313


29,467

Contribution

$

30,392


$

6,995


$

57,542


$

15,133

Contribution margin

10.6

%


5.2

%


10.5

%


5.2

%

Supplemental Revenue Information

(in thousands, except percentages)

Three Months Ended June 30,


Change in

2021


2020


$


%

Flight

$

212,660



$

83,655



$

129,005



154

%

Membership

16,188



13,123



3,065



23

%

Aircraft management

49,955



34,226



15,729



46

%

Other

6,777



3,327



3,450



104

%

Total

$

285,580



$

134,331



$

151,249



113

%



(in thousands, except percentages)

Six Months Ended June 30,


Change in

2021


2020


$


%

Flight

$

403,134



$

203,291



$

199,843



98

%

Membership

31,162



26,442



4,720



18

%

Aircraft management

100,835



55,014



45,821



83

%

Other

12,106



5,680



6,426



113

%

Total

$

547,237



$

290,427



$

256,810



88

%

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/wheels-up-announces-record-revenue-growth-of-113-for-second-quarter-2021-301354214.html

SOURCE Wheels Up

FAQ

What were Wheels Up's Q2 2021 revenue results?

Wheels Up's Q2 2021 revenue was $285.6 million, marking a 113% increase year-over-year.

How many Active Members does Wheels Up have as of June 30, 2021?

As of June 30, 2021, Wheels Up reported 10,515 Active Members, a 47% increase year-over-year.

What was the net loss for Wheels Up in Q2 2021?

Wheels Up reported a net loss of $(29.0 million) in Q2 2021, which is a 6% increase from the previous year.

What improvements did Wheels Up see in Adjusted EBITDA for Q2 2021?

Wheels Up's Adjusted EBITDA improved by $7.6 million year-over-year to $(8.5 million) in Q2 2021.

When did Wheels Up complete its merger with Aspirational Consumer Lifestyle Corp.?

Wheels Up completed its merger with Aspirational Consumer Lifestyle Corp. on July 13, 2021.

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