Kenny. Thanks,
Our foundation key point well and Wheels of provide recognized of a loyal for members differentiation brands, admired competitive and Up. our
Kenny mentioned continue our do how experiences so on earlier, focus profitably. deliver serve now customers As we is our can at to exceptional but scale, and
from spending past our Our prioritize reduction across to and a review several overhead. was and $XX to the The pace million continuing headcount forward, savings sales announcement operational improvement. and culmination of further accelerate last difficult scrutinize we work week annualized expected the corporate over of the are thorough our technology, and effort streamline step meaningful profile is a to months this cost and of profile,
quarter the remarks, should on an our touched going prepared and initiatives model touch walked with revenue on will company I I operating along Kenny forward. on update fourth As highlights, through our total you how my our performance.
on-demand through network. That recent recent mix run shift has components. we flying quarters, revenue out year-over-year. macro up me more to and a growth to headwinds our the moderated increasing connect as XX% let So the in rate of Membership charter balance some members, reflecting are was
legs. times. flight live profitable year-over-year per than in and revenue specific that to focused sales more and in decline due by Flight regions at spending up to and marketing a flight leverages target have X% live specific revenue network leg, expected. also X% was year-over-year a was increase increase our density XX% revenue The offset We higher in
on revenue uses was the which management management Aircraft and in XX% revenue million in by fees the the continuing per was their hover aircraft per quarter of to reports steady range, $XX Partner, million Air revenue reflecting regular up a flight quarter, flight owners. year-over-year. basis, $XX leg net Without live
million, revenue addition increase year-over-year Partner $XX due significantly of Other Air to aircraft an in and was up the sales.
for margin but adjusted quarter, the Our high was down guidance fourth slightly contribution end sequentially, the X.X% to our at X.XX%. X.XX% of of
margin initiatives, Excluding XP for sales, and on profitability margins our contribution higher aircraft flying. adjusted progress and Wheels Air Partner core our Up reflecting our up utility continued sequentially, including was
operating to expenses. Turning
and and percentage invest X.X% development to of the commissions lower were For down sales. down revenue, expenses completed of and sequentially technology dollars sequentially our outside to were up in aircraft dollars from quarter, total expenses we revenue, efficiency as Technology primarily with the quarter, vendors as but revenue of and marketplace a due we sales efforts. support X.X% continue projects as to marketing XX% several year-over-year to in related in XX% IT
XXXX. and to our General in expenses with consistent were positive quarter, in support Overall, flat debt in OpEx revenue were was down sequentially that reserves. in as and sequentially reduction administrative by million terms, and adjusted an $X X.X% our in path increase with dollar cost initiatives bad EBITDA our efforts guidance of offset cost-cutting line the
a with was million primarily receivables. well increasing from $XX negative our are impairment result EBITDA negative range. as to of Excluded as guidance discount the million charges the coming $XX amount of $XX.X one-time Adjusted rate quarter, goodwill, certain as million an associated that within for non-cash historical
Capital the of capitalized including million. million software $XX.X expenditures were in quarter, $X.X
expenditures capital our year, in prior the coming For million, were $XXX below guidance.
of roughly aircraft half Excluding continuing previously leased, our capitalized normal software strong the purchase was were reflective our of investment. that of capital spending, tech technology
million of sales. $XXX from reflective prepaid our October and the balance We in cash equivalents financing the and debt on third quarter with block ended $XXX sheet, million quarter up higher cash the of
achieving call XXXX. last put I each since earnings positive committed to in progress to are a management a summer, I show company context first provided the after goal ground the joined adjusted EBITDA in On we have additional call as the the making. a On then, stake and we team, of
how I of the will right long-term provide more company. details path today, the success that are on will For for the highlight we
there previously achieving key XXXX; adjusted in pricing program have initiatives components and positive three we As cost changes reductions, efficiency. operational are stated, to EBITDA and
to our efforts, relates with start OpEx. cost reduction will which primarily I our
our to we $XX down as manage double-digit business. revenue versus our XXXX in a in a of we to expect week's plan the million third of OpEx quarter level to to percent peak one Last said XXXX. costs XX% is over the by low plan of streamline headcount previously, part As our just of reduce annually
prioritizing As network our augments where drive I are marketing incremental are highest. specific demand on to margins efforts earlier, our sales we touched that density and
past. of that the our in our brand but we continue sponsored significantly in have the to that invest will spend scaled events hallmark some We strategically back have
and technology to Turning development.
delivering still While we that marketplace, we investment manual we new our are that prioritized processes today. improving are key directly believe margin-enhancing our are by in features highly and have investing automating on
give me two you have what quick examples we already of accomplished. Let
teams. the and is productivity invoices first increases of our we the and that The automation of level that billing timeliness customer in our increased enhances accuracy of function back-office
that now service and demand that fleet to cross match The available have cross to and customer improve scheduling second capacity we our efficiency, contribution our capability our better us is enhanced helps certificate, deployed optimization scheduling margin.
fleet continuing sharpen the and a are digitize pricing our opportunities scheduling Those through to channels improve app and profitable the enhancing our target regions, reduce dynamic efforts to times. our and manual days booking operations we of forward, back-office to have ability to business Going Wheels and aspects more lot mobile Up specific on in of processes. of focused demand to other
on those to of as quarter we the of expenses, recently Rounding over be announced our in see need and cost recognize much second the expect reductions. we to our we administrative on progress leaner significant out year, OpEx, the we general know balance and impact expenses the and
in put of quarter modest OpEx down expect first in step perspective, To in on second hold. quarter the all the a next in our leg touched meaningful cost-saving big take sequential the more it as we decline I've a measures with
us a track we XXXX. this of our That we percent year will of savings, a goal of low the which for OpEx We expected percent mark teens as progress reduction us. high as of in important, the million to XXXX, low equates was well annualized revenue over revenue. believe show will to put on third versus the double-digit a a end OpEx year XX% with $XX down quarter to for More expect of this
next components changes pertain program to are The contribution Pricing our adjusted adjusted improve utilization. to positive initiatives our using we asset of path to margin. EBITDA are our that tools and two a increasingly
to have We on know selective advantage. our that is we more we cost where be goal going a have Our growth density, forward.
example travel One customers. As business where flexibility offer on density. flying along targeting we and in on specific is on, to service capacity comes of for special -- targeted I east touched price a targeted incremental times and lower That dynamically with we days focusing our Mississippi. and have regions airs are off-peak higher flying and with for leverage better our fixed our cost the margins keen repositioning and network
airs has keen Early similar opportunities improving all utilization been customer changes and to our encouraging, and on we and program with see feedback of cabin efficiency leading offers classes. for
our continue Meanwhile, some to many reduce to less taken pricing book of our legs, associated through enacted where guaranteed revenue. programs are of have Previously lower flights increases steps we margins. result will in from costly repositioning which can much the flow desirable with regions
dynamically a the higher year, to live per primarily revenue flight line. we mix growth will moderate, over off-peak leg looking of course expect the of due flight priced However,
However, revenue network. leverage and the our accretive as of contribution fixed mix efficiency better we drive margin we expect costs our adjusted will across be to changing
operational Let drive our will that turn me efficiencies. to now initiatives
and P&L optimizes are establishing We aircraft a key fleet as and dedicated decisions level on on to now each more granular We results on that pilot maintenance are basis focus make a performance fleet-by-fleet to a drive performance levels staffing, spare track with closely part possible. who best the of such specific differentiating availability, empowered more have type. teams strategies metrics allocation demand the
and internal to availability. operations continuing improve are our external aircraft to overhaul We maintenance
aircraft especially will additional have internal maintenance We while strengthened are agreements operational preventative service third-party adding consolidating that labor to out reduce readiness, our aircraft during and greater providers with times. we of peak have so capacity, times. and And restructuring cost program, our further
impact maintenance improvements anticipate A which aircraft fleet significantly in and and XX% and utility well-functioning these negatively our expensive our member tire our We need for support recovery the other XXXX. reduces increase nearly by of experiences availability flights, can operation will financials.
look a taking are hard our cost. fixed at We
will fixed As lower reduce we fleet. our in our up we utilization us increase reduce asset effectively which legs, to option That and density, network will with drive the repositioning which frees our fixed base, turn higher presents capacity. remaining on costs
of third-party a shortfall of allows in When our during level to augment asset-right XP we of price was number the fleet had with agreements capacity the there providers. industry, XP minimum controlled a guarantee capacity signed fixed us Our fleet capacity a to XXXX.
that appreciated and effort loyalty. continue their to customers reward Our us with
market, more However, balanced at reduced shorter contracts improves a margins. we are today commitment, and in rates adjusting which with renewing
That will the through times employees our better the reduce We in from business. member At new improve largest center diligently our will and are location interruptions, and recovery service our accelerate around multiple reduce unanticipated of automation, will aviation working state-of-the-art the our facilities the in hubs also operations the country Atlanta, of one productivity response world's our expense. complexity Delta. of customer our to consolidate mid-year, partners at travel which for increase our
our our We the completed versus an by procedures with and certificate silos that operations company Aircraft the of our operating We expect of certificate. multiple consolidation will operating harmonizing by today. CJX the exist certificates onto entire consolidating important all our the one Alante simplify flight operations FAA those across milestone recently
operational were expecting this a service margin. to certificate improvement we expect margins contribute and our in actions with adjusted are will high the meaningfully contribution end to single-digit That with we harmonization our contribution summary, move adjusted along we and In further year delivery. taking
in have recent improvement, We of already be visibility have half achieving good represent the actions expected second will that almost start to to as quarter. we realized which that taken
actions we quarter in first results report an our provide on these set believe months. of path mid-teens on in our when contribution adjusted update We a XXXX. of couple additional us actions achieve will will to well all We margin
resulting to turn and a year-over-year. guidance. and in the start me historically let more travel slower anticipated. we more single-digits quarter mid volatile will own revenue first more month targeted macroeconomic this our we uncertainties than personal holiday the the in to is that, period, with made expect Due variation even January family So the challenging, environment increase due and to over macroeconomic focus, our a
However, we significantly is booking activity confidence heading QX. February back gives versus the prior months, saw and us a steady in up of which half into March improvement
of focus density the we network. macro that the in year, growth of the For expect profitable to sequential billion billion, revenue revenue reflecting with uncertainties course come and over $X.X year a at range expected our on $X.XX our the leverages to of
We in X.X% we partially to efficiencies. contribution cost in and fixed margin reduce have the seasonal driven That by to is quarter our which from we range. in expect will adjusted our first down X% fall improve drop masks significant reported what revenue, operating progress quarter, the fourth made the
to averaging year. posted level contribution sequential contribution revenue exit two adjusted X.X% second has with To to in expect with for at seasonally point, adjusted underscore company high the margin the X.X% we come will the growth, single-digit stronger that we expect the highest quarter, continued margins, With year in in years. almost revenue the
sequentially down initiatives. from mentioned of the with expect will a three second quarter full OpEx in quarter, the I flat first we be months dollars roughly step in recent our earlier, cost As a
will at We end as percent significant the watermark low-teens expect in which year XQ a from of OpEx is revenue, XXXX. high progress the
We to expect decline in million, range the EBITDA million of be $XX reflective loss revenue. first adjusted of to in the sequential quarter $XX
million we out, year. metrics, expected $XXX I an the of for – Going adjusted just laid through to expect EBITDA loss the full $XXX we million
come our $XXX We and report loss of for quarter, we of the million million $XX the million. GAAP year $XXX $XXX net GAAP and to the to range loss a expect between to in for net first expect million
we line range in spending what with XXXX normal spending as mid-single-digit outlined revenue have the capital We be will in of forward. for going capital expect
is we As detailed me on on the call, the important this to deliver required commitment. company are position It our for making hard decisions to that success. long-term we very
quarters. the of targets proud last I'm over ability several its can hit to demonstrate the company's it
achieve have XXXX. I a confident still we I in in it goals While that out gives laid this am adjusted plan you year, have hope and to for confidence positive we EBITDA to credible the we work do,
With open that, turn for for to let call the we remarks, Q&A. it before Kenny back concluding some me
