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Wheels Up Experience Inc. (UP)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered the first sequential revenue growth in nearly two years to $204.815M, with gross margin at 7.6% and a record 19.3% Adjusted Contribution Margin; Adjusted EBITDA loss narrowed to $11.307M, the lowest since going public .
  • Management highlighted December’s near breakeven Adjusted EBITDA and reiterated the goal of positive Adjusted EBITDA for full-year 2025, supported by operational efficiencies and fleet modernization progress .
  • Fleet transition advanced: 18 Phenom jets entered the controlled fleet and the first Challenger 300 is expected to enter service by April 1, 2025; a $332M revolving facility closed, adding $84.3M of cash (pre certain expenses) and financing Phenom acquisition, but included a non-cash $14M loss on extinguishment of debt .
  • Membership base declined following discontinuation of Pay-As-You-Go and Connect options, but Utility rose 33% YoY and Total Gross Bookings grew sequentially, indicating improved asset utilization and demand mix .

What Went Well and What Went Wrong

What Went Well

  • Record margins: Adjusted Contribution Margin reached 19.3% in Q4, up >18 pp YoY, driven by a 33% increase in Utility and operational efficiency .
  • Sequential revenue growth: GAAP revenue grew to $204.815M, breaking a two-year pattern of sequential declines; December was nearly breakeven on Adjusted EBITDA .
  • Strategic financing and fleet progress: Closed $332M revolving facility backed by Delta, added $84.3M cash, acquired 17 Phenom aircraft; 18 Phenoms in fleet and first Challengers set to enter service by April 1, 2025 .

“After several quarters of consistent improvement, we ended 2024 in a much stronger financial position… first quarter of sequential revenue growth in nearly two years, thanks in part to record margins and further enhancements to operational efficiency.” — George Mattson, CEO .

What Went Wrong

  • Membership decline and mix shift: Active Members fell 46% YoY to 5,369 (policy-driven), and Active Users fell 32% YoY, reflecting the streamlined offerings and focus on profitable flying .
  • Operational punctuality pressure: On-Time Performance fell to 80% vs 87% YoY, challenged by weather, ATC, and demands on a smaller legacy fleet; Completion Rate remained 98% .
  • Non-cash charges tied to transition: Q4 included a non-cash $9M parts inventory reserve and a non-cash $14M loss on debt extinguishment related to refinancing activities .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$246.380 $196.285 $193.903 $204.815
Net Loss ($USD Millions)$(81.115) $(96.973) $(57.731) $(87.538)
Diluted EPS ($)$(0.14) $(0.14) $(0.08) $(0.13)
Gross Margin (%)(7.3)% (5.6)% 7.5% 7.6%
Adjusted Contribution Margin (%)1.2% 7.8% 14.8% 19.3%
Adjusted EBITDA ($USD Millions)$(38.121) $(37.355) $(19.982) $(11.307)

Segment revenue breakdown

Segment ($USD Thousands)Q4 2023Q3 2024Q4 2024
Membership$19,077 $13,231 $11,483
Flight$202,374 $155,355 $163,897
Aircraft Management$10,398 $1,410 $2,147
Other$14,531 $23,907 $27,288
Total Revenue$246,380 $193,903 $204,815

Key KPIs

KPIQ4 2023Q3 2024Q4 2024
Active Members9,947 6,699 5,369
Active Users10,744 8,215 7,286
On-Time Performance (D-60)87% 82% 80%
Completion Rate98% 98% 98%
Utility (avg hours/month)31.0 n/a41.1
Live Flight Legs14,374 12,776 12,731
Private Jet Gross Bookings ($000s)$243,278 $204,289 $212,395
Total Gross Bookings ($000s)$286,646 $255,102 $313,861
Private Jet Gross Bookings per Live Flight Leg ($)$16,925 $15,990 $16,683

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDAFY 2025Positive Adjusted EBITDA expected in FY 2025 Positive Adjusted EBITDA expected in FY 2025 Maintained
Challenger 300 Entry to ServiceQ2 2025 (early)Challengers expected to begin operating early 2025 First Challenger expected in service by April 1, 2025 Raised precision
Fleet Mix Transition2025–2027Transition to Phenoms/Challengers within ~3 years >1/3 of fleet by end 2025; ~2/3 by end 2026; 100% by end 2027 Quantified timeline
Operational MetricsOngoingAim for high reliability; Q3 OTP 82% Expect higher OTP and Utility as fleet modernizes Maintained positive outlook

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Fleet ModernizationPlan to modernize fleet later in year Announced Phenom/Challenger plan; 17 Phenoms to acquire; sell 13 Citation X; financing commitment 18 Phenoms added; first Challengers by Apr 1, 2025; livery upgrades commenced Accelerating execution
Operational Reliability99% completion; 87% OTP; record brand days 98% completion; 82% OTP; working on schedule integrity 98% completion; 80% OTP; expect improvement post-modernization OTP soft near-term; improving later
Delta PartnershipDeeper integration; corporate pipeline, loyalty Corporate block sales strength; Delta credit support Hybrid solutions (DeltaOne transfer program); highest new corporate membership growth Deepening collaboration
Financing/LiquidityLiquidity $261M; EETC paydown New $332M revolver planned; liquidity to improve $332M revolver closed; $84.3M cash added; loss on extinguishment Strengthened balance sheet
Technology (WiFi)Digital booking/pricing upgrades Gogo Galileo HDX satellite WiFi plan Some delays; commitment to best-in-class satellite WiFi later in year Delayed, still progressing
Product/MembershipStreamlined offerings; guaranteed availability Strong block sales; charter mix rising Discontinued Pay-As-You-Go/Connect impacting counts Focus on profitable mix
Certificate ConsolidationSignificant progress and efficiencies Ongoing consolidation expenses A-MOC costs concluded; consolidation costs remain Largely complete

Management Commentary

  • “The fourth quarter was our lowest Adjusted EBITDA loss since going public, with the month of December achieving nearly breakeven performance. This was also our first quarter of sequential revenue growth in nearly two years, thanks in part to record margins and further enhancements to operational efficiency.” — George Mattson, CEO .
  • “Utility… in the fourth quarter was just over 41 hours, a 33% increase over prior year and a record for the month of December.” — Investor Letter .
  • “We are also excited to welcome our first Challenger 300 aircraft into revenue service by April 1, 2025.” — Investor Letter .
  • “We have continued to build on the momentum of our [Delta] partnership… we are still in the early stages of realizing its full potential.” — Investor Letter .
  • “We expect to generate positive adjusted EBITDA for the full year in 2025.” — Q3 call .

Q&A Highlights

  • No Q4 2024 earnings call transcript was furnished; management provided commentary via an Investor Letter instead .
  • In prior quarter commentary, management emphasized: positive FY2025 Adjusted EBITDA target, fleet transition timelines, and the $332M revolver expected to bolster liquidity and accelerate modernization .
  • Clarifications included corporate block sales momentum and operational performance drivers (maintenance availability, schedule integrity) underpinning margin expansion .

Estimates Context

  • Wall Street consensus estimates from S&P Global (EPS, revenue, EBITDA) for Q4 2024 were unavailable due to S&P Global daily request limits at the time of retrieval. As a result, beat/miss analysis versus consensus is not presented here [functions.GetEstimates error].
  • Investors should re-check estimates post-publication; company-provided actuals are included above .

Key Takeaways for Investors

  • Sequential revenue inflection with margin expansion: Q4 revenue rose to $204.815M and Adjusted Contribution Margin reached 19.3%, indicating structural improvements in profitability drivers .
  • Operating leverage visible: Adjusted EBITDA loss narrowed to $(11.307)M; December nearly breakeven, supporting the FY2025 positive Adjusted EBITDA goal .
  • Fleet modernization is the central thesis: 18 Phenoms integrated and first Challengers targeted by Apr 1, 2025; modernization expected to improve reliability, Utility, and cost structure .
  • Balance sheet strengthened: $332M revolver closed with Delta support, adding $84.3M cash (pre certain expenses) and enabling aircraft acquisitions/refinancing, despite a non-cash $14M extinguishment loss .
  • Near-term trade setup: OTP softness (80%) and membership declines are transitional; rising Utility, charter momentum, and corporate sales via Delta are constructive into 2025 .
  • Segment mix evolution: Flight revenue stabilized sequentially; “Other” revenue growth and charter mix suggest broader demand channels even as membership revenue declines .
  • Leadership and execution: CFO appointment adds seasoned financial oversight to the transformation and long-term profitability journey .

Sources

  • Q4 2024 8-K and Exhibits (Earnings release, Investor Letter, CFO PR): .
  • Q4 2024 press release: .
  • Q3 2024 press release and call transcript: ; .
  • Q2 2024 press release and call transcript: ; .
  • Revolving facility press release (Nov 14, 2024): .