Mondee Holdings, Inc.

Good day, and welcome to the Monday second quarter 2022 earnings conference call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference call over to Jeff Houston, Senior Vice President. Jeff, please go ahead.

Hey, thank you, and good morning, everyone. Welcome to Monday's second quarter 2022 conference call. With me today are Chairman, CEO, and Founder Prasad Gunamungala, and Chief Financial Officer Dan Fuginshew, who will present our results. Also available are Vice Chairman, Chief Strategy and Business Development Officer Orestes Fintiklis, and Chief Operating Officer Jim Dullam. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements, including statements about revenue, growth of our business, our management and governance plans, and other non-historical statements as further described in our press release. These forward-looking statements are subject to certain risks, uncertainties, and assumptions, including those related to MONDI's growth, the evolution of our industry, our product development and success, our management performance, and general economic and business conditions. We undertake no obligation to revise any statements to reflect changes that occur after this call. Descriptions of these and other risks that could cause actual results to have a material difference from these forward-looking statements are discussed in our reports filed with the SEC and on our press release that was issued this morning. During the call, we also referred to non-GAAP financial measures. Reconciliations of the most comparable GAAP measures are also available in the press release, which is available at investors.mondi.com. Note that our second quarter results are for the three months ended June 30, 2022, and Monty's stock began trading on the NASDAQ after that on July 19. Since we were still a private company during the second quarter, Legacy Monty is not required to file its 10-Q with the SEC. While we are not required to publish an earnings release or host an earnings call, we decided to hold this call and file its content in an 8-K including an updated investor presentation, which is available on the website and you can flip through at your leisure, so that we can provide an update on our business and financial performance now, instead of waiting until November when we plan to report third quarter earnings. With that, I would like to turn the call over to Prasad.

Prasad? Thank you, Jeff, and welcome everyone to Mondi's second quarter earnings call. We appreciate your interest, whether you are a shareholder, a client, supplier, business partner, employee, prospective shareholder, or analyst. I will begin today's call with a summary of our business highlights and strategy, and then we'll turn the call over to our CFO, Dan Fickenshew, for a more detailed review of our financial results and outlook. We will then conclude the session with time to answer a few questions. I'm excited to announce that in the second quarter of 2022, Legacy Mondi continued to deliver profitable growth. Gross revenue of $614.8 million was up 180% year over year, while net revenue of 42.7 million was up 81% year over year. In addition, as we scaled, we continued to deliver profitability Second quarter adjusted EBITDA was 4.4 million up from breakeven in Q2 2021 and doubled quarter over quarter. Among many accomplishments in the second quarter, there were three key areas that drove our strong financial and operating results and set us up well for the second half of the year. First, we capitalized on the ongoing travel market recovery. Second, we continued to improve and evolve our tech platform. And third, we positioned our company for M&A growth with our public market debut. Starting with the recovery in the leisure travel market, the travel industry, especially international travel, which was subdued during most of 2021, began a strong recovery through the second quarter of 2022. Although it was uneven in some parts of the world, which were impacted by differing post-pandemic recovery policies, ongoing effects of the war in the Ukraine, inflation and recessionary threats. Our domestic market opened first, followed by international travel. International travel recovered in some areas more than others, based largely on regional post-pandemic re-openings. With our agile operating culture, we were able to dynamically adjust our marketing sales focus, and go-to-market investments. Slide 4 of our most recent investor presentation sets out the mix of transactions by region in the second quarter of 2022 versus the pre-pandemic second quarter of 2019. It shows, for example, North America has recovered in line with our pre-pandemic mix, Europe overperformed in the first half of this year, and Asia represents an opportunity for the second half of 2022. Our North America air, hotel, and ancillary transactions returned to 90% of pre-pandemic levels by June. Since North America, our primary market, and the market where we are market leaders, was the first to open, we focused our go-to-market resources to capitalize on the recovery. As the European and Middle Eastern regions opened next, we adjusted marketing programs and resources to increase our market share there, which added fuel to the general recovery tailwinds. This strategy resulted in strong transaction volume and market share pickup in European markets in the second quarter, which now represents 27% of transactions, which is more than double from 12% in January 2022. Overall, the European and Middle Eastern regions have now exceeded our pre-pandemic mix. However, the Asia market has more room to improve as certain regions continue to have travel restrictions during the first half of 2022, particularly China, which was a significant market for Maldives before the pandemic. As these travel restrictions ease, the Asian market represents a substantial opportunity for our continual recovery in the second half, and we are positioning our marketing and other resources to capitalize on that trend. In addition to the general market recovery, we have capitalized on other market channel opportunities with our Triplanet go-to-market initiative performing well. As a reminder, Triplanet is our solution for member organizations and small to medium enterprise closed user groups. A noteworthy highlight in this segment of our business is the almost 4x increase in average daily tickets booked on our Triplanet platform for these closed user groups since January of this year. Driving some of this growth is our recent strategic partnership with EBG, a leading activities and events content provider for theme parks, events, and more, which together with strategic alliances such as ours with Gallagher Efrity and others, increased our access to about 125 million members. Currently, up from less than 10 million in the beginning of 2022 and 4 million in 2021. The second driver of our performance is our technology-led revenue growth. Mondi's travel marketplace is enabled by our travel tech platform, effectively connecting our global content service hubs through our distribution channels and affiliates to target close user groups. This continuously evolving ecosystem features the following. First, in our global content hub, where we are already the leader in North America private airfares, we are rapidly expanding hotel and vacation rental content, actively adding theme park and event tickets, and aggressively exploring options to add cruises, and tour content. In addition, our technology is now positioned to add user-generated content through crowdsourcing. Second, in our service hub, we provide full coverage for customer and traveler needs on a 24 by 7 basis and expect to expand local expertise and content curation further on a gig economy fuel crowdsource basis. The service hub provides a full suite of support for our leisure, closures group, and retail distribution channels and customers last but not least the content management service support and distribution capability are enabled by our continuously evolving gig tech platform which now includes capabilities such as omni-channel delivery of conversational commerce features this next-gen tech platform continues to achieve solid traction, and we expect it to fuel improved results going forward. It is driving additional benefits for our over 50,000 travel advisors and emerging gig economy travel workers whom we connect with our high-value content from more than 500 airlines, over a million hotel and vacation rentals, and various ancillary offerings. As a reminder, Mondi sources, prices, and assembles travel combinations at scale that is comparable to the largest global online travel companies, albeit with mostly privately negotiated affairs. Demonstrating the current momentum and ability of our platform in the second quarter, we facilitated approximately 550,000 transactions, up 46% year-over-year from approximately 460,000 in second quarter 2021, We define transactions as the consumer's complete trip and travel experience. So a single transaction could include multiple flights and hotels or vacation tentels, as well as ancillary solutions. In addition, our platform provides fintech, martech, and insurtech solutions customized for the travel industry, ranging from virtual cards and fraud protection solutions to social media and digital campaign and travel insurance. A further example of the success of this platform is the result from our FinTech offering for Q2 2022, which was an impressive 184% growth year over year. More excitingly, we made solid strides on our tech-led evolution on our next-gen gig economy platform and our piloting with customers in the gig worker space, including a major leisure-focused travel company. We expect to move into full deployment of our next-gen platform in the second half of the year. We also offer our tech platform, Power Trip Planet, to member organizations, closed user groups, and SMEs. Our platform extends the benefits of the Mondi ecosystem to individuals in these various organizations and closed user groups for their personal and leisure travel needs. As mentioned above, Transactions in this channel have increased almost 4X since the beginning of 2022. Turning to our recent NASDAQ listing, which is our third area of accomplishment and positioning for the future. On July 19th of this year, Mondi began trading on the NASDAQ under the ticker symbol MOND, M-O-N-D. Becoming a public company is a significant milestone, and I would like to thank all of our shareholders employees, customers, suppliers, and partners for their continued support and hard work. We are thrilled to commence our journey as a NASDAQ listed company. We look forward to leveraging our public market status and post-merger capital structure to enable us to execute acquisitions of companies that fit our strategic vision aggressively. We have a history of well-calibrated and successfully integrated M&A transactions, delivering strong revenue and cost synergies. We plan to aggressively execute a targeted accretive acquisition strategy, which will help accelerate our growth plans. We have identified a number of accretive acquisition targets that we believe are a good fit for our platform as we continue to disrupt and transform the travel industry. I will now pass the call over to Dan Fikenshu, CFO of Mondi for a review of our financial performance and outlook.