Mondee Holdings, Inc.

Good day and welcome to the Monday first quarter 2023 earnings conference call. Please note this event is being recorded. I'd now like to turn the conference call over to Jeff Houston, Senior Vice President. Jeff, please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to Monday's first quarter 2023 conference call. With me today are Founder, Chairman, and CEO Prasad Gundamudala and Chief Financial Officer Jesus Portillo. who will also present our results. Also available for questions and answers is our Vice Chairman, Chief Strategy and Business Development Officer, Aristis Venticulus, and Chief Operating Officer, Jim Dullem. 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 government 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 Monty'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 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. With that, it's my pleasure to turn the call over to Prasad.

Thank you, Jeff. This morning, we are excited to welcome everyone to Mondi's first quarter 2023 earnings call to discuss our results and positive developments. We will highlight through the 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 I will turn the call over to our CFO, Jesus Portillo, for a more detailed review of financial business and outlook. We will then conclude the session with time to answer a few questions. We are pleased to begin 2023 with strong first quarter results. MONDI continued to deliver profitable growth, gross revenue of approximately $700 million. was 146% of first quarter 2022, while net revenue of approximately $50 million was 128% of first quarter 2022, even though the international travel market only recovered to about 82% from its pre-pandemic peak. Equally important as our continuing growth trend is that we continue to deliver profitability as we scale. First quarter, it was 4 million, almost double the same period last year. Turning to slide four and five, today we announced two acquisitions, Interest and Consolid. This follows the Orinter acquisition in the first quarter. Beginning with Interest, which is a leading luxury Brazilian B2B travel company with a 40-year operating history. It sells upscale leisure travelers and limited corporate customers through a distribution network of 3,100 affiliates and influencers, as well as a network of 5,000 agents. The company has experienced strong profitable growth, doubling its net revenues compared to pre-pandemic levels. The acquisition of Intrep will further expand and diversify Mondi's geographic footprint in Latin America enhance its product offerings, and provide a complementary distribution network to that of Oriental, one of its prior acquisitions in Brazil, given interest focused in the luxury market and influence of different marketing strategies. This transaction was accretive, as we paid just over a three times multiple of 2022, just a little bit down. We also acquired Consolid, a leading company in the Mexican B2B2C air and ground arrangement travel market. With an 18-year operating history, Consolid serves an estimated 1,000 customers globally with concentrations in Mexico and Latin through its Consolid and travel fan plans. The acquisition supports our continued expansion in Latin America and present several synergistic opportunities for technology and service offering deployments, as well as cross-selling within this very important growing region. The transaction is accretive to Mondi, as we paid a four-tenth multiple of 2022 adjusted EBITDA. Turning to Oriental, a high growth and leading travel provider with a strong presence in Brazil and Latin America. Brazil is the largest and one of the more dynamic markets in South America, offers a natural expansion opportunity. Oriente is a disruptive growth company in a high growth market, evidenced by its 2019 to 2022 net revenue, CAGR of 38%, despite two full years of the pandemic. The acquisition will enable Monty to broaden the distribution of Oriente's travel content and leverage our proprietary technology platform and deploy revenue enhancements, such as FinTech and , while optimizing expenses to achieve meaningful top line and bottom line . The transaction was with a 2022 price to multiple of approximately four times. These acquisitions come on the heels of our acquisition of at the end of January. It was our first acquisition in Latin America and further expanded and diversified Mohandas geographical footprint, product offerings, and distribution networks. Going forward, we plan to continue complementing our organic initiatives to expand our operations in Central and South America, while also exploring opportunities in other regions, such as Europe and parts of Asia. We intend to leverage our platform and marketplace to achieve sustainable growth, and enhance our position as a leader in the travel industry. In January 2023, MONDI introduced the MONDI Expert and Influencer Affiliate Network Program, which collaborates with new travel companies, experts, and influencers to enhance current customer offerings and travelers' experiences while increasing distribution and reach. In furtherance of this program, in April, we announced a new partnership with Ticini, utilizing this program with a micro network of 55,000 US Hispanic women. MONDI is aiming to align with gig workers and influencers to help airline and hotel partners find and develop new channels, such as Ticini, which represent a new value added channel for both suppliers and MONDI. Not only are we introducing new channels, but we are better servicing organizations that already participate in travel. Our business to enterprise B2E segment performed very well. For example, in this first quarter, we added a number of customers, including a sizeable enterprise customer, serving millions of close group travelers. That brings significant existing flight and hotel volume to Mondi. Within two months of going live, our seamless booking experience with privately negotiated content were able to significantly increase the number of joint flights and hotel transactions, meaningfully exceeding that customer's expectations. The company's great performance is partially based on the tailwind effect of the continuing international travel recovery. This is attributed to market share gain, with expansion into product segments beyond flights and hotels, such as enhanced ground transportation options, and tech-driven improvements in diverse super-revenue streams like fintech and ancillaries. On slide six, to look at the major industry trends impacting Monbe's business. While first North America domestic air was fully recovered to 2019 levels in the first quarter, international travel, which is our main business, was just 82% of the 2019 pre-pandemic levels. which reopened for inbound travel in January 2023, is now recovering and we expect to experience more rapid recovery of our North America outbound travel to China in the back half of 2023, given the lead time necessary for travelers to typically plan and schedule Asia destination trips. Pandemic led labor shortages and constraints in capacity, which led to basic undersupply in air and hotel in the first year post-pandemic are expected to gradually abate as we move through 2023 and beyond. This modern tech platform continues to evolve and become more and more appealing to the and millennials, whose purchasing power and influence is increasing. On the headwind side, while we expect higher supplier prices to abate this year, recession fears may impact both operating costs and business demand in the short to medium term. However, Mondi is well positioned to mitigate these headwinds through its tech platform and value-based content. Next on technology, Mondi continues to enhance and expand the reach of its tech platform facilitating 665,000 transactions in the first quarter 23, representing 144% of first quarter 2022. Each transaction could include multiple flights and hotels, vacation rentals, and ancillary solutions. Diversified solutions are providing higher margin revenue streams and driving higher take rate. Next, and excitingly, We are pleased to have recently strengthened our leadership team. First, we are thrilled to welcome Jesus Portillo to the Mondes family. He is a seasoned global finance executive with more than 20 years of financial experience, including leading global acquisition integration, implementing surveillance of controls and procedures at WPP, and most recently as a global CFO of Thrive DX. He joined Mondi to lead the finance function of the company during our next phase of expansion. Asus brings a proven record of delivering results and creating value, and we are very excited to work with him to accelerate Mondi's sustainable growth. We are also excited to welcome Meldit Waters as General Counsel. Our experience and knowledge will be invaluable in helping us navigate the complex legal landscape of the power industry and supporting our continued growth. Meldit has 15 years of corporate law experience, including serving as Senior Legal Counsel at Apple and as a Corporate Attorney at Kirkland & Ellis. As we continue our evolution to a streamlined public company position for extraordinary growth, We will continue to add top-level experienced talent to our executive ranks to oversee the smooth execution of our plans and expansion. I will now pass the call over to Jesus for a review of our financial performance and outlook. Jesus?