Wheels Up Experience Inc.

Hello, everyone, and thank you for joining the World's Up 3Q 2022 earnings call. My name is Darius, and I'll be the operator for today. Before I hand you over to your host, Keith Ferguson, I would like to remind you, if you would like to ask a question, please press star for the one in your telephone keypad. And I have the pleasure of handing you over to your host, Keith Ferguson. Please go ahead, Keith. Your line is now open.

Thank you. This afternoon, we announced our third quarter financial results. The earnings released 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 and non-GAAP financial measures and definitions of non-GAAP financial measures are found within the Financial Tables over Earnings release and appendix of today's presentation. And with that, I'd like to turn the call over to Wheels Office Chairman and Chief Executive Officer, Kenny Dickman.

Thank you, Keith, and thanks to all of you for joining us today. Let me start by highlighting the strong foundation we have built for Wheels Up. Today, we are a clear leader in on-demand private aviation with a highly recognized brand, a growing base approaching 13,000 loyal members, and we are poised to deliver over $1.5 billion of revenue this year. For today's call, we are prioritizing three topics that we think are important for investors as we continue our intense focus on delivering on our path to positive adjusted EBITDA in 2024. One, our business performance for the quarter. Two, a realignment of our management structure to improve our speed of execution as it relates to our operations and technology initiatives. And three, our strong cash position. With that, I will go through some highlights from our third quarter. We reported revenue of $420 million. a record for the third quarter and up nearly 40% year-over-year. Active members are up 12% compared to a year ago. Our live flight legs increased 7% year-over-year, reflecting a continued appetite for travel, as well as a contribution from Air Partners' private jet business. Prepaid blocks are a great indicator of future flying. As you may recall, we announced an out-of-cycle price increase in June, which resulted in unusually high block sales in the second quarter. As a result, our third quarter block sales were down year over year. However, prepaid block sales for the year were exceptionally strong through the third quarter of 2022, up 85% year over year. As our results make clear, even in an uncertain macroeconomic environment, overall demand remains healthy with continued strong customer retention and cohort spend levels. There are clear macro concerns that are prevalent in many sectors of the market today. We do expect demand from our high net worth customer base and our business clientele to be more durable than that of the broader economy. With strong foundational demand and our commitment to positive adjusted EBITDA in 2024, we are laser focused on two key areas, including one, ensuring that we continue to prioritize safety and support of our members, including delivering world-class service with great pilots, enhanced maintenance capabilities, and improved execution. However, we know that while prioritizing those areas, we must make significant cost reductions elsewhere to ensure we achieve our committed path to positive adjusted EBITDA. And two, streamlining our organization to improve focus and accountabilities. Our current structure limits our ability to focus on driving specific outcomes at the appropriate levels in the organization. In order to address this, we are eliminating the role of president and transitioning to a more granular organizational design focused on operations, digital transformation, and more specifically, our marketplace, while evolving our product offering. I want to thank Vinay Kegde for his service in the president's role and look forward to his continued partnership in an advisory capacity. Before I turn it over to Todd, I want to highlight our recent EETC debt financing, which gives us added flexibility to continue to invest in our business as we execute on our strategy. In the current market, having added cash reserves is extremely valuable and will help us support continued progress on our operations, customer experience, and technology initiatives. In summary, Wheels Up has built a strong foundation with great people, a well-respected brand, and a substantial base of loyal, high-value customers. Our goal is to turn that foundation into a scaled and profitable business. Our goal is profitable growth. 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 hard-working global team for their tremendous effort and commitment to Wheels Up. Now I'll turn it over to Todd, who will provide more details on our third quarter and our go-forward plan. Thanks, Kenny.