Wheels Up Experience Inc.

Hello everyone and welcome to Wheels Up's 4Q22 Earnings Confidence Call. My name is Charlie and I'll be coordinating the call today. All lines have been placed on listen only mode to prevent any background noise. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by one on the telephone keypads. I'll now hand it over to our host Keith Ferguson for Wheels Up to begin. Keith, please go ahead.

Thank you. This morning we announced our fourth quarter financial results. Their earnings release with its supporting tables as well as a copy of today's presentation can be found on our website at wheelsup.com slash investors. Please refer to the 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 employees and dependents of today's presentation. And with that, I'd like to turn the call over to Wheels Ops Chairman and Chief Executive Officer, Kenny Vindel.

Thank you, Keith, and thanks to all of you for joining us today. For today's call, we are prioritizing four topics that we think are most important. One, an update on our business performance for the fourth quarter of 2022. Two, our objectives for 2023. Three, a progress update on our path to EBITDA profitability in 2024. Four, our strong cash position at the end of the year. With that, Let me provide some highlights from our quarter. We reported revenue of $408 million, a record for the fourth quarter that was up nearly 20% year-over-year, beating our guidance of approximately 15% year-over-year growth. Revenue was a record $1.6 billion for the year, up over 30%. Active members grew 5% compared to a year ago. Retention metrics, of course, on membership tiers have remained consistent at high levels. However, we are seeing some headwinds in new membership sales due to the macroeconomic environment, as well as a conscious effort to focus our global sales and marketing towards the most efficient and profitable flight opportunities. Our live flight legs decreased 5% year over year. While demand and pricing remain very strong relative to historical norms, we have seen some moderation in flying, which we believe reflects current conditions. Prepaid blocks great indicator of our members commitment to future flying with us we're just over a billion dollars for the year a record for the company overall we are very thankful for our strong foundational loyal members and customers who continue to spend at healthy levels with us it is critical that we continue to focus on delivering world-class service as we look for new ways to expand our platform we have demonstrated our ability to consistently grow our business and brand globally Today, we are focused on leveraging that strong foundation to generate profitable growth for our shareholders. Last week, like many companies, we communicated a difficult but necessary decision regarding cost takeouts that included headcount reductions in several areas of the business, excluding pilots, frontline maintenance, and other customer-facing roles. I want to be clear. that as we manage down our cost structure, we are not wavering on our commitment to delivering an extraordinary experience and unparalleled service for our members and customers with a world-class team featuring some of the best trained pilots and aircraft maintenance personnel in our industry. We also see an opportunity to integrate our Wheels Up and Air Partner sales teams to take a truly global approach to our sales and commercial work and introduce a wider range of current and potential customers to the full breadth of our product solutions, target the higher margin charter segment of our portfolio, and extend our reach among corporate and enterprise clients. We have tapped Mark Griffin, who came to us as the CEO of AirPartner, to lead this new global sales and commercial effort. We remain steadfast on our journey to utilize technology to shape demand and drive greater density on our network. A recent example is a pricing offer for our King Air 350i fleet targeted to specific regions, dates, and times. This demonstrates our ability to use dynamic pricing to drive efficient utilization on our fixed assets. These actions are consistent with our previously communicated path of profitability plan. To ensure management alignment, we are increasing the weighting of our incentive program to favor adjusted EBITDA versus revenue growth. I also want to highlight our cash balance of nearly $600 million. We are honored that our members and customers continue to recognize the value of our service by committing significant prepaid block purchases, which is a huge vote of confidence. In summary, Wheels Up has built a strong foundation with great people, a well-respected brand, and a substantial base of loyal, high-value members and customers. We have proven that we can grow. Our focus today is building a scaled and profitable business. As always, I am extremely thankful for our loyal members and customers for continuing to put their trust in us. I would also like to recognize and thank our entire dedicated and hardworking global team for their tremendous effort and commitment to Wheels Up. Now I'll turn it over to Todd, who will provide more details.