Wheels Up Experience Inc.

Welcome, my name is Brita and I'll be your conference operator today. At this time, I would like to welcome everyone to the Wheels Up Experience second quarter earnings call. All lines have been placed on mute to prevent any background noise. And after the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star two. Thank you. Keith Ferguson, you may begin your conference.

Thank you. This afternoon, we announced our second quarter financial results. The earnings relief with its supporting tables, as well as a copy of today's presentation, can be found on our investor relations website at wheelsup.com slash investors. Please refer to this slide with our disclaimer. Today's presentation contains forward-looking statements based on our current forecast and expectations of future events. These statements should be considered estimates only and actual results may differ materially. During today's call, we will refer to non-GAAP financial measures as outlined by SEC guidelines. Unless otherwise noted, all income statement related financial measures will be non-GAAP other than revenue. Reconciliations of GAAP to non-GAAP financial measures and definitions of non-GAAP financial measures are found within the financial tables of our earnings release and appendix of today's presentation. And with that, I'd like to turn the call over to Wheels Hubs Chairman and Chief Executive Officer, Kenny Dixon.

Thank you, Keith. And thanks to all of you for joining us today. For today's call, we are going to prioritize three topics that we think are important for investors today. One, an update on our business performance. Two, an update on the progress of our technology and operating initiatives. Three, the key components of our path to positive adjusted EBITDA. With that as a background, I am pleased to report another quarterly revenue record as we continue to see strong demand and strong product market fit across our platform, including a great start to our recent acquisition of AirPartner. We are working diligently to execute on our strategy to build a technology-enabled marketplace for private aviation that aggregates highly fragmented supply and connects it with strong and growing consumer demand. Today, we are a clear leader in on-demand private aviation with a growing base of more than 12,500 active members. And we are poised to deliver over $1.5 billion of revenue this year, up from around $300 million just four short years ago. We have built an iconic brand in private aviation and have forged a strong and unique commercial relationship with Delta Airlines. as well as significant brand partnerships that deliver even greater value to our members. While generating a strong base of demand is often challenging for some growing marketplaces, it's an area where we have been very successful. Our second quarter is further testament to our success to date. We reported revenue of over $425 million, a record for the second quarter, and up nearly 50% year over year. Active members are up over 20% compared to a year ago, and our live flight legs were up nearly 20% year over year, reflecting a continued appetite for travel, as well as the contribution from Air Partners private jet business. Prepaid block sales, a great indicator of future flying, were exceptionally strong, over 330 million for the quarter, and up over 180% year over year. Today, as that tally makes clear, Overall demand remains solid, even as average pricing is increasing and fuel surcharges took effect. Our core member retention continues to be robust, and our core members continue to spend more than $80,000 per year with us on average. Our newest cohorts continue to spend and fly more than our prior cohorts, and our longtime members also continue to spend with us at a healthy click. We believe all of these factors provide a strong foundation for future revenue growth. While our top line was strong, we are cognizant of the uncertain macroeconomic environment. We do not expect to be completely immune, but the good news is we believe we have several levers to drive continued growth. As industry demand normalizes, we have the opportunity to serve a broader set of customers at a wider variety of price points and begin to realize a greater benefit from our marketplace. Specifically, we have strategically opened up available capacity to on-demand flyers through our mobile app, increased volume with our wholesale partners, and delivered targeted marketing to both prospective and existing customers. Ultimately, our goal is to make it easy for consumers to fly with us. We are committed to delivering for all of our customers, whether they are members, on-demand flyers, or wholesale partners. All of these initiatives, coupled with demand from our existing customers, give us confidence that we can deliver continued revenue growth this year, despite geopolitical and macroeconomic uncertainty. That said, we also appreciate that strong growing revenue ultimately must translate to profitability, and we understand the need to make significant progress in that area. Our technology efforts and member experience initiatives, while short-term headwinds to margins, will provide a strong foundation for long-term sustainable profitability. At the same time, we are also focused on prioritizing our investments and streamlining our costs. Our goal is profitable growth. The key to that goal is technology, and I will provide an update on what our teams are doing to build our technology-enabled marketplace that will further aggregate the supply side of private aviation to drive scale, utility, and efficiency. As mentioned earlier, our Air Partner acquisition is off to a strong start. We are exceeding our expectations on both revenue and profit. I want to commend the Air Partner team for doing a great job of bringing new demand onto our platform as their customers fly in North America. Air Partner also has several important supply relationships that have augmented our overall fleet capacity. At the same time, we are increasingly seeing our customers flying intra-Europe, We are thrilled to have AirPartner on our team. With the benefit of a full quarter of the index fuel surcharge in Q3, the operational progress that you will hear about from Vinayak and a healthy contribution from AirPartner, we expect to show higher margins over the course of the year and route to positive adjusted EBITDA in 2024. Next, I'd like to take a moment to provide an update on our environmental initiatives. We launched our carbon offset program this June. Our approach to a sustainable future is multifaceted. Our partnership with Hertz is a perfect example. Our customers will get the best in class service they demand while also tapping into the most advanced electric vehicle network on the market. We remain focused on how we can reduce the overall environmental impact of our operations on our aircraft and in our facilities. I look forward to sharing more details on these important initiatives in future earnings calls. Before I turn it over to Vinayak, I want to introduce our new CFO, Todd Smith. Todd has been with us for a little over a month, joining us from GE, where he held several senior financial roles, most recently as Global Head of Financial Planning and Analysis. Todd has a strong background of driving operational rigor and financial discipline. The fact that we can attract someone of his caliber is a reflection of the tremendous opportunity it wields us. Todd will provide some color on how we expect to achieve sustained adjusted EBITDA profitability in 2024. As always, I am thankful to our loyal members and customers for continuing to put their trust in us. I would also like to recognize and thank our entire hardworking team for their tremendous effort and commitment. Now let me turn it over to Vinayak. who will provide more details on our technology and operating initiatives.