Executive Summary

Q1 2024 delivered solid topline growth: net revenues rose 16% year over year to $58.0M on gross bookings of $708.1M; take rate was 8.2% (+70 bps YoY) and adjusted EBITDA was $5.1M (+27% YoY) .
Management raised FY 2024 net revenue guidance to $250–$260M (from $250–$255M) and reiterated adjusted EBITDA of $30–$35M; term loan maturity was further extended to June 30, 2025 .
Free cash flow turned positive; operating cash flow was $18.7M and cash reserves increased to ~$47M with total debt ~$166M, aided by working capital initiatives and PIK interest timing .
Offsetting factors: GAAP net loss widened to $(19.5)M and GAAP EPS was $(0.30), driven by ~$20.7M in non-cash/non-recurring items and higher interest expense; transaction mix toward short‑haul flights lowered average revenue per transaction despite stronger take rate .

What Went Well and What Went Wrong

What Went Well

Take rate expansion and mix shift: non-air components expanded to 51% from 26% in Q1 2023; Q1 take rate reached 8.2%, driven by hotels, packages, fintech, and ancillaries .
Free cash flow positive and cash reserves strengthened: operating cash flow $18.7M; cash rose by ~$11.4M QoQ to ~$47M; “We remain committed to enhancing top-line growth, profitability, and cash flow generation” .
Guidance raised and AI roadmap: FY net revenue guidance increased; CEO: “strong start to 2024…record first fiscal quarter in both net revenues and adjusted EBITDA…we continue to enhance and deploy Mondee’s AI capabilities” .

What Went Wrong

GAAP loss widened: net loss $(19.5)M vs $(12.9)M in Q1 2023, with interest expense of $(9.9)M; cumulative dividends to preferred stock were $(3.8)M .
Average revenue per transaction declined: mix toward international short‑haul flights, lower price points in hotel-only and packages, and moderation in flight pricing across key regions reduced revenue per transaction despite higher take rate .
Geopolitical and supply-side headwinds: Middle East conflict caused regional bifurcation; airlines/hotels face capital constraints, labor shortages, and delivery delays—creating volatility even as Mondee’s model benefits from opaque capacity and B2B channels .

Financial Results

Quarterly Performance Snapshot (oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Net Revenues ($USD Millions)	$54.532	$61.053	$58.021
GAAP EPS ($USD)	$(0.29)	$(0.21)	$(0.30)
Adjusted EBITDA ($USD Millions)	$5.501	$6.947	$5.056
Adjusted EBITDA Margin (%)	10.1%	11.4%	8.7%
Gross Bookings ($USD Millions)	$597.451	$619.284	$708.076
Transactions (Units)	695,694	829,698	1,075,437
Take Rate (%)	9.1%	9.9%	8.2%
Net Cash from Operating Activities ($USD Millions)	$(0.994)	$(10.593)	$18.661

Q1 2024 vs Q1 2023

Metric	Q1 2023	Q1 2024
Transactions (Units)	665,173	1,075,437
Gross Bookings ($USD Millions)	$668.079	$708.076
Net Revenues ($USD Millions)	$49.929	$58.021
Net Loss ($USD Millions)	$(12.915)	$(19.458)
GAAP EPS ($USD)	$(0.15)	$(0.30)
Adjusted EBITDA ($USD Millions)	$3.986	$5.056
Adjusted Loss per Share ($USD)	$(0.07)	$(0.15)
Net Cash from Operating Activities ($USD Millions)	$(9.979)	$18.661
Take Rate (%)	7.5%	8.2%

Segment/Mix

Category	Q1 2023	Q1 2024
Air-only (% of Net Revenue)	74% (implied)	49%
Non-air (% of Net Revenue)	26%	51%
Packages (% of Net Revenue)	N/A	28%
Hotels (% of Net Revenue)	N/A	13%
Fintech (% of Net Revenue)	N/A	6%
Other (SaaS, insurance, ground, ancillaries) (%)	N/A	5%

Note: Q1 2023 subcategory detail not disclosed; full-year 2023 mix: air-only 57%, packages 21%, hotels 11%, fintech 6%, other 5% .

Estimates vs Actuals (S&P Global)

Metric	Consensus (S&P Global)	Actual Q1 2024
Revenue ($USD Millions)	N/A*	$58.021
GAAP EPS ($USD)	N/A*	$(0.30)

*S&P Global consensus values unavailable via tool at this time. Values retrieved from S&P Global.

Non-GAAP note: Net loss included ~$20.7M non-cash/non-recurring items (D&A $5.6M, PIK interest $5.5M, SBC $5.3M, loan fees amortization $1.9M, earn-out FV change $1.2M, acquisition/financing costs $1.2M, etc.) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenues ($USD)	FY 2024	$250–$255M	$250–$260M	Raised
Adjusted EBITDA ($USD)	FY 2024	$30–$35M	$30–$35M	Maintained
Term Loan Maturity	N/A	March 31, 2025	June 30, 2025	Extended

Earnings Call Themes & Trends

Topic	Q3 2023 (Prev-2)	Q4 2023 (Prev-1)	Q1 2024 (Current)	Trend
AI/technology initiatives	Abhi launched; Purplegrids acquisition; building next-gen AI; rebranding	Maintain AI leadership; Abhi foundation; commitment to push boundaries	Next Abhi version in 2H; internal “Infinity” AI for ops; S&M ratio aided by AI	Strengthening
Product mix/non-air growth	Hotels/packages rising; take rate up; divested LBF	2023 mix: 57% air-only, 43% non-air	Non-air 51%; packages 28%; hotels 13%; fintech 6%	Accelerating non‑air
Macro/supply	Post-recovery moderation; Ukraine/Mideast headwinds; agile model benefits	Airfare declines and potential softening; take rate mid-term growth	APAC-led demand; suppliers constrained; volatility favors B2B channels	Mixed but resilient
Regional trends	NA→China recovery; LATAM resilient	Asia short‑haul push; take rate fluctuations	APAC strong; LATAM strong; Middle East bifurcation	APAC/LATAM strength
Marketing efficiency	Grassroots focus; AI-driven marketing; S&M % down	S&M % down from 75% to 62%	S&M % at 69% of net revenue; AI optimization	Improving
Capital structure	Share buyback; preferred financing	Term loan extended to 3/31/25	Term loan extended to 6/30/25; refinance targeted	Extending duration

Management Commentary

CEO: “strong start to 2024, with another record first fiscal quarter in both net revenues and adjusted EBITDA… take rate continued to grow… driven by our innovative AI tech platform. This allows us to increase our net revenue guidance for the year” .
COO: “non‑air components… expanded to 51% from 26% in Q1 2023… packages 28%, hotels 13%, fintech 6%, other 5%” .
CFO: “free cash flow positive… cash reserves in Q1 2024 were almost $50 million… we remain committed to enhancing top‑line growth, profitability, and cash flow generation” .
CFO: “take rate of 8.2%… up 10%… adjusted EBITDA improved… S&M as % of net revenue improved from 75% to 69%” .
COO: “volatile conditions can create more perishable capacity, motivating suppliers and travelers to work through full-service B2B channels… well suited to Mondee’s AI‑driven marketplace” .

Q&A Highlights

Revenue per transaction dynamics: mix shift to short‑haul international flights, hotel‑only and packages (lower price per transaction), and airfare moderation drove lower ARPT despite higher take rate .
AI impact on operations and costs: external Abhi and internal “Infinity” projects; AI tools improving S&M efficiency and pricing; benefits expected to show more fully in 2H .
Free cash flow sustainability: Q1 FCF benefited from collections, supplier terms, and PIK interest; management expects fluctuations but positive full-year FCF in 2024 .
Regional performance: APAC and LATAM strength continued; Middle East mixed due to conflict; no major markets showing softening overall .
Non-air mix and take rate: non‑air share reached 51%, ahead of plan, supporting take rate above expectations; air expected around ~50% longer term .

Estimates Context

S&P Global consensus estimates for Q1 2024 were unavailable via the tool; management stated Q1 net revenue and adjusted EBITDA exceeded market expectations .
Given raised FY net revenue guidance to $250–$260M and reiterated adjusted EBITDA of $30–$35M, sell-side models may need to reflect higher FY revenue with unchanged EBITDA guidance ranges .
Table note: Consensus cells marked N/A due to S&P Global retrieval limitations. Values retrieved from S&P Global.

Key Takeaways for Investors

Mix shift is the core driver: non-air expansion (packages, hotels, fintech) is structurally lifting take rate and margins even as ARPT declines from short‑haul flight growth .
Cash and FCF inflection: strong operating cash flow and improved cash balance reduce near-term liquidity risk; watch sustainability as working capital normalizes .
Guidance raise is a catalyst: FY net revenue outlook moved up; adjusted EBITDA reiterated—suggests confidence in margin execution and AI-enabled efficiency gains .
Debt duration extended: loan maturity pushed to 6/30/2025 while refinance progresses—reduces near-term refinancing risk and supports strategic execution .
AI as a productivity lever: internal deployment already lowering S&M intensity; next Abhi version in 2H can enhance distribution, monetization, and conversion .
Watch headwinds: high interest burden and non-cash items keep GAAP losses elevated; regional conflicts and airfare moderation pressure ARPT, but B2B/opaque channels help offset .
Near-term trading setup: narrative likely centers on raised guidance, FCF positivity, and accelerating non‑air mix; diligence on ARPT/transaction mix and debt costs remains key .

Mondee Holdings, Inc. (MOND)·Q1 2024 Earnings Summary