MOND - Earnings call 3 2022 | Mondee Holdings, Inc.

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Operator

Good day, and welcome to the Mondee Third Quarter 2022 Earnings Conference Call. Please note, this event is being recorded. I would now like to turn the conference call over to our host, Jeff Houston, Senior Vice President. Jeff, please go ahead.

Jeff Houston

Thank you, and good morning, everyone. Welcome to Mondee's Third Quarter 2022 Conference Call. Chairman, Dan Founder; our Figenshu, are Chief Gundumogula; results. today Officer, Financial who me CEO Prasad and and With will present Officer, Also and Financial Chairman, Vice Officer, Orestes Development Operating available, Chief Fintiklis; Dullum. Chief Jim and our Business Strategy

like to we subject the financial preliminary review by Mondee's note results Before to that today discussed I'd are begin, final and auditors.

further statements, management conditions. We In the changes our product addition, industry, are nonhistorical forward-looking to undertake described to business, revenue, actual that and our release with development and growth the any These statements have are plans occur SEC about that business our management other cause material to Descriptions forward-looking statements this Mondee's these our was assumptions, morning. our call and risks, revise subject risks in as those difference obligation economic in this statements including may release. of press success, press to reflect growth, and no of statements related our results discussed and of issued to contain uncertainties other growth filed a this forward-looking including in general and statements evolution our and certain after call. reports these could and that performance from our

we like would to in press I release. the the financial During measures. available GAAP available also investors.monde.com. With Reconciliations turn also that, Prasad. non-GAAP call, refer to call comparable which the are of the measures most to at over is

Prasad Gundumogula

a analysts. I'll call the financial business employee, we to you, earnings highlights a and interest, and then third you call. call CFO, our supplier, quarter outlook. and Figenshu, of more detailed of We partner, and our Dan results business to will shareholder, your everyone, with or a a whether for begin Mondee's shareholders Thank appreciate are over summary review prospective our strategy, turn today's Jeff, welcome, client,

announce answer excited XX% of million revenue that XXXX, of $XXX time profitable few Mondee conclude increased in We deliver while a up continued revenue with to quarter year-over-year, will the gross session was to year-over-year. net questions. I'm million XXX% to then third The $XX.X of growth.

as continue we profitability. scale, addition, to In we deliver

Third adjusted our net million its the of over travel, growth business last the of international year. from QX period same peak. an only million, extraordinary XX% $X.X $X.X improvement Mondee's of is EBITDA though revenue XXXX even in to recovered same quarter of XX% was XXXX which has XXX% comes XXXX quarter

of travel gross on is second in the The Mondee this third in third the seasonality, quarter revenue revenue and industry were net and quarter. general quarter weak. almost Despite seasonally the par

accomplishments Before to we third thought describing and helpful briefly our be Mondee it our many describe would quarter, business. in the

Slide of market marketplace company airlines. X% includes market travel. is our As wholesale in over North the the business with North XX% you America XXX travel America can the connectivity X hub share content see and Mondee investor direct high-growth leisure of roughly and this approximately international technology a market airfare our with of is on presentation, leader global $XX Today, billion outbound market. Approximately

and world million vacation rental the and more rentals in hotel airlines all cars. than the have We X properties,

rate tech than more we XXXX, and companies acquired as intermediaries the revenue fintech transaction XXX billion, and user group closed to excluding XX,XXX includes distribution Our next-gen and X.X each with offerings, million as members. well during travel are gig improve access added now economy our workers the we million ancillary XX expand the margins. with travel pandemic take and $X full tickets. Subsequently, transacted which million affiliate, our have In customer over searches and platform daily to options presented

you over employees the XX% XXXX period, grew to Austin, if have our revenue over Texas pandemic globally. for and by X,XXX XX% net in XXXX Prior with We the organically to accretive our are and at pandemic, is over growth, adjusted the all out have for midpoint our rate organic margin. growth acquisitions. Coming XX% XXXX the guidance XX%, our we net resumed of a revenue impressive EBITDA include headquartered

market wholesale North become America. market of airfare to leader the affiliates Having in in selling travel already disrupted to subsegment a travel

tech We are gig workers and suppliers, platform concierge and marketplace, agents, cohorts app. The influencers, user content rapidly content workers network, and travelers include modern events, becoming providing content experts, is travel hotel organizations close our to groups of SMBs through influencer and theme economy a global all and super travel local and and service and includes now the expanding tickets growing with gig drivers. The affiliates economy curators, leading cruises, air connecting travel group experiences The transformation by of with suppliers car globally. began membership rentals closed parks. activities, user includes hub and our and tours,

back results Among operating and Turning areas our many there and key us three drive will quarter. accomplishments, and our third were to to quarter continue during the that fourth XXXX. strong financial the support

and facilitates capital our sheet that growth structure in organic inorganic improved way a our and strategies. our balance we fortified First,

hence not of went structure. acquisitions on growth Second, and to and that a pursue we equity third, working travel improvement geographies improve XX, opening with We capital This up. Starting were are streams. NASDAQ aggressively evolve as as to our of convertible by our first we continue on And us support debut common to share ongoing market significant platform our point. dilutive in stores, we organic capital the the capitalized revenue our recovery After July which sell shares made tech to and on our plans million well and not to consequently, will increasing our successful into $XX capital shareholders. limits. market enable preferred on

successfully help calibrated execute revenue and aggressively and delivered strategy, synergies. history plan We have which to We transactions, strong cost of targeted acquisition integrated accelerate which plans. well accretive growth a a our have will

third our tender million offer subsequent fit warrants we identified have platform our XX travel number the quarter, as through good a all potential continue and a a to would that of process. targets disrupt be the of public to We transform we purchased acquisition for industry. Also, approximately

equity. potential to step important common focusing common equity, Another the investors creating of for Mondee's value limiting common on shareholders and long-term dilution

with platform, transactions, our parts transaction and rentals fintech, commerce XXX% modern solutions, multiple higher as revenue vacation marketplace other advanced which providing technology are approximately streams rate. diversified could hotels, and Each our up XXXX. our well include as driving Second, quarter ancillary higher-margin and from flights XXX,XXX solutions third facilitated These conversational solutions. take

wallets, QX fintech grew fintech fintech tools year-over-year payment in include products and These Our revenue methods, ancillaries. protection settlement and XXX% alternate fraud XXXX.

XX% of QX extends XXXX. our routes base more XXXX to further growing influencer the our of growth sheet the TripPlanet QX This platform, support of latest Mondee fintech user and We balance than in transactions benefits expect over that membership organizations, platform closed revenue. The stronger since January release networks. and our grew will of our ecosystem Xx

a the multiple continue America fuel costs include market. international tailwinds. inflation, These and approximately benefiting to is domestic travel has Despite recession and recovery. the situated fears to conflict, North from Turning air air ongoing about rising Ukraine-Russian XX%. well global Mondee XX% recovered

market whole biggest widely international travel of remains the still a Asia's signal closed. a China reopening believe We could as Hong of positive reopening. China, However, be Kong to

families. potentially work-from-home plan permanent a quarters, the during travel travel as their is is U.S. in lease and Also, travel provided driving and travelers increase flexibility we demand U.S. has with visiting outbound friends Another U.S. people more traditionally holidays more believe. which what tailwind abroad is weaker more and higher dollar, strong causing

hotels and other impacting markets for such back and and travel. This well net our with headwinds points global fact content XXX% ancillaries. travel and Our XXXX that as the recovered such expand streams XX% distribution as of heavily peak Mondee the guidance of revenue revenues with overall net pre-pandemic revenue air diversification on XXXX China success to from despite reported the as to is its only our actual new tech international enhancements the markets fintech of as of newer restricted

XXXX. I we at other third share While to XXXX. to in China CFO to for regions generally we opportunity and Europe, of setter XX% the outlook. in financial India, quarter such review markets XX% third closed, the XX% international over been over same line XXXX performance increasing And to represents have that Asia Mondee, which with call XX% the Dan period. In market, a fourth now the we continue first North into our the will from market believe increased Figenshu, quarter America, as increased for and in which agile from of as quarter in recovered an be pass

Dan Figenshu

Thank to you, again our Prasad. Thanks audience attending. for

was We adjusted that quarter growth are third financial by especially this proud entirely the organic given driven preliminary performance, of revenue continued company's performance EBITDA the particularly profitability, of growth.

for for fintech in last million and gross also the of happy expectations by the about such we our cruises, take the be revenue, revenue mostly up was a negative increase as quarter higher of $X EBITDA revenue business over full to Take events and of revenue far net revenue, year-over-year line months nine portion We continued we mix year are XXXX revenue as of gross generated $XXX.X solutions. Over same higher X% driven as the the And well our our year, approximately months rate fintech year. from EBITDA million and XX% this in had of in in nine of margin million billion levels, and which to define grew first so with mix in grew million as of delivered diversified period Third and with X.X%, ancillary our we revenue trend hotels success over time, comes to gross $X.X to million. greater months. $XX.X rate from of activities. Furthermore, a our million. XXX% ancillaries, first $XX.X Take adjusted line as the overall we expectations. divided with by XXXX's a rate, XXXX, of for expect and stickier trends. upward nine Net XXXX substantial first streams revenue $XX.X soon prepandemic approximately X.X from year-over-year transactions subscription

business decreased the expenses. of a X.X% EBITDA, with available revenue company sales percentage release. marketing to revenue of to the onetime cost and $X.X as non-GAAP QX by efficiencies related as stock streamlining even to GAAP restructuring management third and of to charges the a G&A restrictive from gross as year the deploy year. India. to in the was onetime addition other improvement last of reconciliations $X.X to basis, technology, adjusted was was such GAAP call million, year. was loss On improvement same primarily $XX.X earnings today's loss million Adjusted of compared of from are basis, public driven in noncash as million of million million the an items, $X.X improvement. quarter million, net $XX took On a from a ITHAX material our nonrecurring and X.X% [ a last an GAAP $X.X costs, X.X% achieving combination X% opportunity loss a down to expenses. We percentage noncash quarter ] XXXX. Note net net next-gen earnout units, from our a one-off centers a in Turning ago, non-GAAP

actions months for compared the be XXXX. profitability carried million positive for these three a was we onetime While $XXX,XXX, XXXX by operating year. Net for them net from September cash still We activities ended $X.X from Mondee's to used XXXX. million expect approximately that's full to months $X year the improve of $X.X expect costs, three to cash September flow ended million and operations

balance Looking at sheet. our

of XX and of the million after commensurate optimize us growth that fortified structure. public process end this plans all that balance and had by Prasad our quarter working a mentioned pursue have warrants. In public liquidity emerging sheet the our tender to our is entry We simplified aggressively allows our markets provided support organic to we of used needs. already retired At and the $XXX acquisitions nutshell, capital cash. to QX, approximately part million offer of capital our the

to and in terms guidance, customers Prasad. million Mondee million, and is to towards strong outlook tracking is end, of believe capitalize market $XX we due Adjusted growth the XX% will that is financial to to a in measured of growth at on of million, the the share primarily lifetime million new industry increase revenue are increased range In reopening still of of back revised range on representing opportunities. I we net to and future over regions $XX the $XXX turn investments a EBITDA reopening. In in midpoint. year-over-year position projected sum, to it to XXXX projected to the our travel marketing and capture and now $XXX be low

Prasad Gundumogula

Dan. Thanks,

results, QX our an by pleased to are stronger We forward we QX. look and even

in proud business North a market cutting-edge America. a has that submarket are decade disruptive Mondee's We model highly made also us in and billion leader $XX technology of the

travel sheet, experiences earnings tech balance connecting we travelers through look and for $X and providing a trillion modern a with gig app. Thanks to leading a travel content suppliers, thriving all group within closer forward we as super platform listed to company strong Now call, marketplace, as ongoing and quarter our the support. market by disrupting economy forward and workups your third attending and look a

Unknown Executive

Q&A. for ready we're Operator,

Operator

White Tom [Operator first And of Instructions] our today D.A. to Davidson. question goes

Thomas White

Just a for Maybe couple. Dan.

quarter. product net big second are on growth gross then mix any in more first in if lagged or my curious changes the bit just a revenue I That's in So there timing-related of issues? the function revenue growth or kind is maybe that the delta a question changes in the just was take rate of question. And guidance.

that? there. driving Help margins a it I then like arithmetic the if EBITDA, understand I my there's the a quarter fourth follow-up. EBITDA guide sequential bit EBITDA the increase for nice think a of right? And had kind guide So what's in fourth me just XX%-ish, implies of quarter looks quick implied for

Dan Figenshu

of of Thanks, the take growth seeing quieter Sure. signaling seasonality. That's return to large typical and impacts right. trend QX over year, to we're excited COVID-XX first. return is nice QX. question I'll typically seasonality. in Yes, annual second Tom. you're end of in of sort each your due will that see QX to represent EBITDA a the We're and and part adjusted one quarters the growth

to with QX, it frankly, a QX as will pleased has we quarter close was. that, was, been strong And as were QX so anticipate quite years be past. as that in In we it

of Now your revenue Tom. gross on, for revenue question as QX get our chargebacks you're COVID-XX-related product This mix off this faster past to grew with of quarter in is that a to revenue. impacted cleanup we have combination as clip That than net growth, bit great stock -- a a puts of disproportionately did. some did and wanted in answer about that of gross cleanup, which Yes, well we terms at a net revenue books first quarter. is us to a right This well-positioned

Orestes Fintiklis

is second incentives question. the Thomas. This revenue, explains higher dimension, of to on big know, is typically we adds overrides also part which a and those a towards get Fintiklis, margin to end Vice back-ended, carries year, come which would another the you Chairman. also which an our the add that I of net more as the is your

Thomas White

just go of like guess and consumer of that on nicely macro last travel should question. Got it. really about That's expect of too. would on demand for take benefit just like the couple of curious any I the from trips are of an macro. I'm less to to would of better people or fares, and they're could wanting a little back class for Any more products extra of sort a ancillary great. inclined whether boarding spend get And bag give yes, some one heard inevitable sensitivity guys kind is from helpful. of And sounds spending you it sort expedited be travel, then other just but We that then the on me color would queue. think maybe leisure travel places, maybe the in online to for signs kind seats? seeing the the class public weeks, of there travel of you some how we there the I'll that, you're companies in consumer maybe holding or

Prasad Gundumogula

and especially the in the Thank the couple anticipate combined. ancillaries to in have good on years, and changes as similar we that plans uncertainty demand you. the of everything crazy last schedule to the on continue We given demand and we the travel see future, see

as flights, branded the for ], to systems good and well classes delivered to as demand have the this. expect families upgrade fintech with them in [ fare demand a the the to cabins right and we the anticipate the the newly fares like insurtech products have We ancillaries, other good to along right of a

Orestes Fintiklis

Chairman Vice that to would Orestes, two this is to Tom, I add, elements equation. the May company. I the add of like

to is mentioned two that The are other either Mondee. holding, relevant tailwinds demand rightly is are which that first one the you there

XX% to one highlight the again, more international States. from first our business United flights outbound is The than of

disproportionately a which but people, is dollar these the a consumer, has one typical areas. strong, and of a you of control demand the is the domestic catalyst, than strong for impact to on there, is naturally it's second there a right? The travel mentioned, part lot higher the the So that is technology of been strong of point, company us travel, some bit desire more costs travel as

As strength sell of airfare that course the our we the know, wholesale. you private in discounted is

consumer area travel, sense, which will there a environment oh, of a first there that So like and feel to is strong seeking right? I in time, is dimension more we the is an is same be that but wallet, this to the our that's the important where So my I desire maybe this control a bit more would more business. should mention, to very at

second in big there and coming have The streams cetera, our revenue fintech. and is the ancillaries, we in diversified et if as to mentioned, ancillaries of seat from reduction et part a the relation even upgrades one cetera, growth the is a selection, in

not negatively So that part this the impacted equation dynamic. by of is

contrary, customers, most ascertain becoming year-over-year are tools ancillaries settlement XXX% have alternative growth. since methods, the mentioned an and and the include at a of is that relevant positively protection Especially environment. On our we travel have more these fraud payment impacted, intermediaries in started

kind of our very we providing tailwinds strong to feel So conditions the that are model. business

Operator

of Mike Securities. question goes Grondahl And Northland the next to

Mike Grondahl

just core upgrades, they've there Kind help can how this doing? And to of quarter so to progressing of that's those that understand mentioned those of sort just you quantify are Can seat understand insurance, we us cars, where secondly, of going. take Maybe a to you questions. couple been of with get travel ancillaries. some rate was kind A hotels, start we'll related possible kind Is two. chargebacks. it how

Unknown Executive

Yes.

part take the me first then come the out. the and CEO, let So CFO and

we pandemic So rate on year, slightly in P&L about quarter the because math, more kind which quarter very up a actually the and and light of refunds lower with take X.X%, forward, to you this going that of average having if do apple-to-apple more line give is is and this process, project of X.X% comparison is can that of refunds primarily the clean Dan that. we a the much is the number it's you bit this

Now the are seeing fintech, before, rather like we on mix product, I example. like for And huge cruises, elements, ancillaries, we areas, hotels growing on we nicely. mentioned, the now which remaining a a importantly, like more parks, theme is are higher margin, in growth as similarly but mentioned which of are adding few more we hotels mean other

close, Now the and those -- are we path feel our next to see you of business our yet, we them very will quarter don't give a clear that element on that booking but boost model. in this

you. Dan, to So over

Dan Figenshu

thanks items, question. do to the get this a in to past forward with and one really To related these these We back future. have going cleanup, charge. onetime your anticipate COVID-XX specific the around for Mike, onetime don't it was

that quarter have I it this and mentioned, a clean As fourth means will beyond.

care to wanted which our point, really an take impact of first company we rate. a that public might we're take obviously, They quarter. net distort were to your revenue, these million worth our as $X to approximately in now So the

is in the X% with even still like are better pretty the still a as started rate as pleased Mike. Having landed looked and terms the of over take still products, types earlier it additional take and competitive mentioned said well, net of still we being and what the rate it in year And this, ancillaries adding XXXX having you these is. that, substantially what take having quarter for rate before than of where we

Mike Grondahl

Yes, sure that, $X that's is of pretty million small. quantify make small. to kind just I but could wanted we

should to on raised M&A big some part you that. has funds. pipeline future. I of your How Next, about of backlog be a How you does been look? think going your think we it's recently history, guys executing that guys part and

James W. Dullum

right. very Mike, it's pipeline think is Yes, That Jim. I you're active.

impact expect of We we number early progressing progress transactions. And larger-sized hear quarter, some on anticipate of certainly, with are next a within good medium- seeing you this fronts the I and of year. this to the And can part within think of there.

of increased progress. it rate would the just I the we the have are funds excellent So in, coming that in out making of signaling net those activity, addition, and

Prasad Gundumogula

our And are M&A as the hotels, of just majority footprint [indiscernible] to we add to currently targets and product areas. footprint expands well being working -- cruises just a to as add this, that other our geographical our all to

is So these this into very plans targets expand our fit and for us. important to nicely strategically areas

Mike Grondahl

then the Got TripPlanet you've or subscription to it. maybe out businesses some it, And got call anything of lastly, started. Unpub, on

there. Just the progress you're seeing

Prasad Gundumogula

We are there. an seeing demand increasing

more receiving subscriptions. more are We and

However, and able our lifetime to provide of our better customers, now is to value customers able in be time. services and to and monetize point platform, into get experiences that focus lifetime their products, travel-related be the a

adoption to focus our is to platforms. have more now, our value customers to these lifetime For

Orestes Fintiklis

Yes.

to add from The the year already mentioned is that, from more Orestes XX% Xx. increased to again, coming of we than beginning So quarter-over-quarter. that we is TripPlanet, revenue the this

strong million point we base So of of confident XXX like mentioned potential very at feel have generated we plus. a time, this that users Prasad in

So subscription that rate the which base, on revenue to from will a the emphasis revenues. is extracting now huge as more adoption increase have net our opposed impact on to

of hub providing our real to more details a but also strategy from something traditional Of not we course, just there here revenues. TripPlanet, year, convert will trip very going that business a and portion, kind start next subscription forward, of into is recurring is that clear a

Operator

Partners. Tigress of And Financial [Operator to Instructions] Ivan question next our Feinseth goes

Ivan Feinseth

progress. source originating on customers your Where biggest of is where is question of your from? right now? first the from travelers most Congratulations My ongoing are

Prasad Gundumogula

our the closed So are from groups. coming user travelers

well and affiliates travel as have the networks, membership networks, organization. We small businesses to influencer and their as medium

Ivan Feinseth

travelers countries What are your countries. mean from? I originating

Prasad Gundumogula

America. North the Primarily

Ivan Feinseth

Okay. And [indiscernible] then

James W. Dullum

There a Orestes earlier, piece that our domestic we America obviously, out domestic obviously North business, in it's or We a Ivan, is of so a the as this. XX% question, by we And which the chart of travel, shows the comes dollar pointed a in strong little leisure lot supported of -- -- presentation number benefit which from. terms I source most think we was destinations. in large have outbound is the mentioned, But there's that somebody Jim. strong is promoting that done a of dollar. with Europe, asked again travel as

to We continue see that.

continue see you subcontinent is very see certainly, building. correct. India big LatAm are And is to strong. We the We European destinations for yes, us. And

and As to up, China specifically tailwinds other great Asia parts us. are open those continue of for

that to We throughout up into quarter next get year. and expect this pick stronger going

Orestes Fintiklis

see The Yes. the mean, can here this focus on to. point to recovered got you go improvement. going internationally, share if we different kind the goes XX% you strategies And U.S. is that market there our we are very Mark of But opens, geographies one still, the course, And X, to can a see, of are close, that Jim like when add, on is our where between Orestes, it level in you travelers Slide I breakdown geography. geography mentioned, again, increase within exactly are then whenever to

business is subcontinent U.S., same XXXX. market the we in biggest U.S. where doubled area the focus we and of which on So The our So big opened. then share Indian China. with Europe market on focused now from we close We geographical had almost demands first, opened the Europe the XX% our

to we as one increase revenue able still China XXX% to to the is with point travel the potential international of can is opening. that net with XXXX only full you recovered, such travel if international is the what here markets closed, imagine the recovery XX% only China that were right, and level with So

Ivan Feinseth

Yes. big they for I from. to either then stay have destination China And was when that up, originates go the you'll I is, China in travel but opportunity opens where and then China not meaning a and assume international. where in were originating

James W. Dullum

Yes, that's assumption, good a Ivan.

Ivan Feinseth

participating on use provider? insurance? on services the insurance, outside you in second, reserve Or Then are you the like do ancillary Okay. an

Prasad Gundumogula

the won't We are outside plans using and revisit we we future. have the providers, in certain which

Orestes Fintiklis

Yes. not booking And insurance we're taking are because any of we're our risk the huge premium and nature. underwriting but including a travel any collecting of we part path,

Ivan Feinseth

or they then upgrade question services or the And it's at Do trip, if or like only to ancillary or WiFi it's -- but done, -- something seat somebody does say, or the has en participate third at if or do if participate a the Okay. check-in want on the to a route it's my of a upgrades. meal, buys you let's to pre-buy you if bigger when plane. the opportunity the and point when to origination they airport on of want seat, upgrade

Prasad Gundumogula

other use do to and -- trip on travelers deal comes typically, When airlines places. pre [indiscernible], the merely the We it and trip. with route and the during primarily to en the the the airports with the

and and to can the add And that focus more early for That's also -- ways rapidly they're and However, going while changing. we come in as our the trip to existing more plans, the ancillaries transitioning. adding ancillaries we XXXX. are this can they a big is price that's

James W. Dullum

as have the we experience. an mentioned moving market see I I'll a that to add taking just it's from before, we right, trip Yes, Jim. going just Ivan. have -- to

are So to are the just Prasad's able in point, now with create we that we and the of craft we our emphasize releasing help products, the and that to that with tech are travelers platform things doing, in the experience. some things

in and to upfront of on expect be we continue we So packaged things the earlier that consider getting and to getting would are a lot ancillaries trip. the

So that helping But give packaging that, include from revenue participate cetera. that that to us also enhance the our is to them comes and opportunity at in will opportunities. the destination, ancillary more of ancillaries those et to

Ivan Feinseth

a Okay. Congratulations wishing QX. great you and

Operator

We no to Jeff I'll hand closing remarks. questions. have any back for further

Jeff Houston

a to schedule present just really any We'd questions everyone welcome attention have. their may to answer for you and company like the call, and opportunity thank the

can at more or to our e-mail you. you us get information an Thank ir@mondee.com. You investors.mondee.com website, can send

Operator

now call. Thank for much Thank joining. today's you so you. concludes This

disconnect now You your may lines.

Mondee (MOND) 10 Nov 222022 Q3 Earnings call transcript