Mondee Holdings, Inc.

Good day, and welcome to the Mondi Third Quarter 2022 Earnings Conference Call. Please note, this event is being recorded. I would now like to turn the conference call over to our host, Jeff Houston, Senior Vice President. Jeff, please go ahead.

Thank you, and good morning, everyone. Welcome to Mondi's Third Quarter 2022 Conference Call. With me today are Chairman, CEO, and Founder, Prasad Gundamudala, and Chief Financial Officer, Dan Figginshew. who will present our results. Also available are Vice Chairman, Chief Strategy and Business Development Officer, Aristis Fentiklis, and Chief Financial Operating Officer, Jim Dullem. Before we begin, I'd like to note that the financial results discussed today are preliminary and subject to final review by Mondese auditors. In addition, this column may contain forward-looking statements, including statements about revenue, growth of our business, our management and growth 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 in our press release that was issued this morning. During the call, we also refer to non-GAAP financial measures. Reconciliations of the most comparable gap measures are also available in the press release, which is available at investors.mondi.com. With that, I would like to turn the call over to Prasad.

Thank you, Jeff, and welcome everyone to Mondi's third quarter earnings call. We appreciate your interest, whether you are a shareholder, a client, supplier, business partner, employee, prospective shareholders, or analysts. I'll begin today's call with a summary of our business highlights and strategy, and then we will turn the call over to our CFO, Dan Figginshew, 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 third quarter of 2022, Monday continued to deliver profitable growth. The gross revenue of $600 million increased 172% year over year, while net revenue of $39.5 million was up 73% year over year. In addition, as we scale, we continue to deliver profitability. Third quarter adjusted EBITDA was 3.7 million an improvement of 3.8 million from the same period last year. Monty's extraordinary Q3 2022 net revenue growth of 150% over the same quarter in 2019 comes even though 80% of our business is international travel, which has only recovered to 67% of its 2019 peak. The third quarter of Monty And the travel industry in general is seasonally weak. Despite this seasonality, gross revenue and net revenue in the third quarter were almost on par with second quarter. Before describing our many accomplishments in the third quarter, we thought it would be helpful to briefly describe Mondi and our vision. As you can see on slide four of the investor presentation, Mondi is a high-growth travel technology company and marketplace. and the market leader in the North America wholesale airfare market with roughly 6% market share of this approximately 70 billion market. Approximately 80% of our business is North America outbound international leisure travel. Today, our global content hub includes direct connectivity with over 500 airlines, nearly all airlines in the world, and more than 1 million hotel properties, vacation rentals, and rental cars. Our distribution includes more than 50,000 travel affiliates, intermediaries, and gig economy workers, as well as access to 125 million closed user group members. In 2019, our next-gen travel tech platform transacted over $3 billion, excluding the companies we acquired during the pandemic, with 50 million daily searches and 5.4 million tickets. Subsequently, we have added full FinTech and ancillary offerings, which are now presented with each transaction to expand the customer options and improve our revenue take rate and margins. We are headquartered in Austin, Texas, and have over 1,000 employees globally. Prior to the pandemic, for the 2015 to 2019 period, our net revenue grew organically by over 40%, and over 60% if you include our accretive acquisitions. Coming out of the pandemic, we have resumed our impressive growth. Our net revenue growth rate guidance at the midpoint for 2022 is 70% all organic with a 12% adjusted EBITDA margin. Having already disrupted a sub-segment of travel market, to become the market leader in selling wholesale airfare to travel affiliates in North America, we are rapidly becoming the leading tech platform and modern marketplace, connecting travel suppliers, gig economy workers, and closed user group travelers by providing all travel content and experiences through a super app. The growing cohorts of gig economy workers include service and concierge agents, local experts, influencers, curators, content writers. The closed user groups include travel affiliates and influencer network, membership organizations, and SMBs globally. The transformation of our global content hub with our suppliers began with air and now includes hotel and car rentals and is expanding to cruises, tours, activities, events, tickets, and theme parks. Turning back to the third quarter, among our many accomplishments, there were three key areas that continue to drive our strong financial and operating results and will support us during the fourth quarter and 2023. First, we improved our capital structure and fortified our balance sheet in a way that facilitates our organic and inorganic growth strategies. Second, We continued to improve and evolve our tech platform and consequently our revenue streams. And third, we capitalized on the ongoing travel market recovery by increasing market share in geographies that were opening up. Starting with the first point, we made a significant improvement to our capital structure. After our successful debut on NASDAQ on July 19th, We went on to sell $85 million of shares of preferred stocks, which are not convertible into common equity and hence not valued to our shareholders. This capital will enable us to pursue acquisitions aggressively, as well as support our organic growth plans and working capital needs. We have a history of well-calibrated and successfully integrated transactions. which have delivered 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 potential acquisition targets that could be a good fit for our platform as we continue to disrupt and transform the travel industry. Also, subsequent to the third quarter, we purchased all of our approximately 12 million public warrants through a tender offer process. Another important step to limiting potential dilution of Monday's common equity, creating value for common shareholders and focusing long-term investors on the common equity. Second, our technology platform, which parts our modern marketplace with FinTech, conversational commerce, and other advanced solutions. facilitated approximately 600,000 transactions, up 104% from third quarter 2021. Each transaction could include multiple flights and hotels or vacation rentals, as well as ancillary solutions. These diversified solutions are providing high margin revenue streams and driving high uptake rate. Our FinTech revenue grew 269% year over year in Q3 2022. These FinTech products include alternate payment and settlement methods, wallets, fraud protection tools, and FinTech ancillaries. We expect that our stronger balance sheet will support further growth of our FinTech revenue. The latest release of our Triplanet platform grew transactions more than three times since January 2022. and 46% in Q3 or Q2 2022. This platform extends the benefits of the Mondi ecosystem to our growing base of membership organizations, close user groups, and influencer networks. Turning to the market. Despite inflation, rising fuel costs, recession fears, and the ongoing Ukraine-Russian conflict, Maundy is well situated to continue benefiting from multiple tailwinds. These include a global travel recovery. North America domestic air has recovered approximately 91% and international air about 67%. However, China, Asia's biggest market, still remains widely closed. We believe the reopening of Hong Kong to international travel could be a positive signal of China as a whole reopening. Another tailwind is the strong US dollars, which is driving higher US outbound visa travel, as more and more US travelers plan their holidays abroad and visiting friends and families. Also, work from home has provided people with more travel flexibility, causing what is potentially a permanent increase in travel demand during traditionally weaker quarters, we believe. Our net revenue guidance for 2022 is 170% of our actual reported 2019 net revenues, despite the fact that overall international air travel markets recovered to only 67% of its pre-pandemic peak. and headwinds from China and other heavily restricted markets, impacting global travel. This points to Monday's success with our newer content, such as hotels and expanded distribution, as well as the diversification of new revenue streams on the back of tech enhancements, such as FinTech and ancillaries. While certain international markets, such as China, continue to be closed, we have been increasing market share in other regions such as Europe, which increased to 26% in third quarter 2022 from 15% in third quarter 2019, and India, which increased to 18% from 16% over the same periods. In North America, we recovered generally in line with the market. We believe that Asia represents an opportunity for the first fourth quarter and into the 2023. I will now pass the call over to Dan Figginshue, CF of Mondi, for a review of our financial performance and outlook.