Earnings call transcript Q1 2023

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Operator

Good day and welcome to the Mondee First Quarter 2023 Earnings Conference Call. Please note this event is being recorded.

I'd now like to turn the conference call over to Jeff Houston, Senior Vice President. Jeff, please go ahead.

Jeff Houston

Thank you, operator, and good morning to everyone. quarter call. first Mondee's to XXXX conference Welcome With Gundumogula; Portillo and our Fonder, who CEO, Prasad Chairman, and Chief also our me present today will results. Financial Officer, Jesus questions Orestes Fintiklis; Chief Chairman, for Also our Jim and answers Business Officer, and Operating Vice available Development Chief and Dullum. Strategy Officer, is

further management to non-historical everyone release. statements of growth about this begin, in and plans, may other call described our and government we as Before remind contain press I'd statements revenue, our like that forward-looking including our business, statements statements assumptions, economic industry, general our forward-looking evolution Mondee's are These success, risks, subject and our uncertainties including growth, and to business and our of to and performance certain product conditions. development those related management the

to occur with reports any changes these difference these press release revise reflect forward-looking actual that could of Descriptions material are obligation after our and call. other to discussed to that issued filed risks morning. and that this from the was our statements results SEC cause statements undertake in We a this have no in

also to call, press we available which the of at measures are refer comparable the non-GAAP also in Reconciliations financial release, available is the During most investors.mondee.com. measures. GAAP

Prasad? pleasure turn my its that, With the call to over,

Prasad Gundumogula

we to excited earnings developments. everyone results Thank XXXX you, Jeff. This morning, first Mondee's our positive are and quarter to welcome call discuss to

supplier, employee, We call. partner, the a interest, client, whether a your through appreciate highlight will We shareholders business or are shareholder, prospective analysts. you

and more Jesus summary the a detailed over strategy, then turn and with for will call financial of I our and begin CFO, our I call of results review our highlights a outlook. business today's to will Portillo

a session to answer conclude with then few the will We time questions.

travel $XXX continued 'XX, approximately of from XXXX net was about to first international begin of million market revenue while though XX% revenue to to XXX% $XX approximately peak. of with even Mondee XXX% its first million strong pleased profitable quarter first only of XXXX, growth. recovered pre-pandemic are quarter Gross deliver the results. quarter We was

to that is Equally scale. important growth continue as profitability our we as trend we deliver continuing

almost last First million, $X quarter adjusted EBITDA the was year. same double period

travel of limited it and operating Today, Interep and follows a X,XXX which with BXB in customers company, a quarter. acquisitions, history, network upscale as Slide the serves Beginning Consolid, a travelers XX-year influencers, leading we well X. and distribution announced Interep, with a X,XXX leisure first to acquisition Orinter luxury is as Turning X the agents. Brazilian network this affiliates of and through corporate two

strong, Interep and This that compared experienced The its market America, the to expand in product influence acquisition accretive times over strategies. revenues its of multiple three Latin Mondee's and geographic levels. Orinter, of profitable acquisition doubling network was in The growth, focus in and net provide to in a Brazil, footprint marketing we adjusted company luxury complementary enhance distribution and as pre-pandemic transaction of [ph] has EBITDA. Interep's will Mondee's given offerings prior drive further diversify just XXXX paid

The important a America Mondee paid we to Market. region Latin Travel company as well in expansion adjusted deployments, fan travel within We Consolid Mexican EBITDA. [ph] synergistic customers service Consolid plans. and cross-selling continued growing X,XXX BXBXC technology its times operating sales transaction also acquisition multiple LatAm, [ph] as in in and growth concentrations supports The estimated a and and Ground-Arrangement with offering of accretive and an - With is acquired several the opportunities very for leading Mexico Consolid, XX-year our through present XXXX and four this as Air history, globally,

in South America, in provider more of high-growth largest markets America. Brazil evidenced two company dynamic a high-growth and XX%, with by XXXX natural pandemic. years revenue XXXX full expansion strong a to its despite the the market, a a travel Latin opportunity. Orinter, one net of of to a growth the and Turning in Brazil Orinter disruptive CAGR presence and leading offers is is

The travel multiple and enhancements, technology approximately while to deploy ancillary the proprietary such our Mondee top achieve Orinter's transaction times. distribution fintech meaningful synergies. and solutions, as bottom content XXXX will accretive broaden line expenses and platform of the leverage four enable acquisition of and The revenue to to line with price optimizing was EBITDA

was our networks. come and diversify Latin acquisition and in of the footprint, offerings acquisitions of and Orinter heels geographical the It distribution end of Mondee's America acquisition further on at our expand These January. first product

Central initiatives industry. intend our to to we organic enhance growth in plan as the America, and such of regions, leverage continue to as forward, leader Europe while in opportunities in parts We operations expand platform South sustainable our other and achieve travel our to marketplace and Asia. position a our Going complementing and exploring also

Mondee channels, Hispanic value-added influencers represent new a program to to as and introduced suppliers XXXX, hotel with aiming travel TISSINI, experiences partnership collaborates find this travelers' program announced TISSINI, airline workers micro align Mondee such and for a customer a network the utilizing gig channel Mondee with this Network partners and new distribution we reach. April help experts companies, influencers and and and both January while women. current of XX,XXX In which enhance In U.S. and develop Affiliate Mondee. of program, new with with increasing in to Expert furtherance is offerings Influencer which new

channels, organizations introducing travel. better that we participate only already are we Not in are servicing but new

BXB enterprise, to performed well. very business Our segment

in we were hotel and group expectation. millions this quarter seamless flight flight brings Mondee. live, significantly joint with able that exceeding our including to number example first the a existing booking that significant to customers, serving of Within close of privately increase going volume number added hotel enterprise meaningfully of months travelers negotiated experience customers, For transactions, two and content a of customer's sizable

such segments share enhanced attributed ground with is The special [ph] of performance transportation streams and the gains, market the in improvements fintech This like options into travel hotel continuing partially and ancillaries. to product based company's recovery. clear on and diversified revenue effect flights tailwind as expansion international is beyond

impacting industry business. look trends On the Slide Mondee's X, to major at

is domestic air and in travel levels back our just trips. for travel, While which lead quarter, was for was now which typically XXXX recovering, necessary January of levels. business inbound China first given outboard North and we recovered the the is experience of expect reopened to Asia America rapid travel into in international the XXXX, fully China, XXXX to the XX% time destination North travelers XXXX our plan first schedule recovery main in America more of to pre-pandemic half

continues to purchasing and and year's and air abate in pandemic shortages labor move evolve more become is basic influence increasing. which modern hotel tech and XXXX whilst and and to through the are first in in concerns Pandemic-led power fleet Mondee's undersupply appealing more to and post gradually expected led the Millennials, we to platform Gen beyond. capacity, as Zs

side, abate demand headwind supplier to prices the we medium expect term. both here short the On costs recessions and this while higher business year, impact in to operating may

well and Mondee However, positioned these mitigate through to platform is headwinds its value-based content. tech

and transaction vacation, the XXX,XXX and tech rate. Mondee XXX% reach ancillary first providing facilitating representing Next, solutions. of to and rentals its platform, continues higher-margin on flights and higher driving XXXX. expand hotels, quarter of could are first 'XX, take Diversified Each in quarter enhance transactions revenue the multiple streams solutions include technology.

to team. pleased Next, recently we leadership have excitingly, are strengthened and our

procedures to Jesus of family. than thrilled turbulence acquisition WPP years to fleet financial global controls First, [ph] welcome we and leading at experience, integration, global He's were executive finance recently Mondee ThriveDX. a Portillo XX Global with seasoned of of and most as the a CFO including implementing, more

the lead to record delivering work very during growth. brings creating sustainable function Mondee's with to Mondee finance phase of and and we value the company expansion. him of to excited our next joined He a of Jesus are proven accelerate results

helping knowledge life Ellis. at We as & welcome and invaluable Kirkland are corporate growth. of of to complex XX us experience, as Meredith Her our be landscape Counsel industry and as at legal including corporate experience also attorney serving the Senior and Meredith navigate a has travel Counsel. the Apple Legal excited supporting continued years will General in Waters

continue ranks and smooth execution streamline expansion. oversee plan position will extraordinary As add we experienced top public level for our evolution to continue to of our talent the executive our we to company growth, to

pass to and now of a our Jesus? financial for call will outlook. performance review Jesus I the over

Jesus Portillo

the Prasad. And you, Thank first quarter growth for of performance, attending. company's again financial of particularly thanks the continued proud We're to profitability. our audience EBITDA adjusted

million quarter 'XX, from Gross was revenue XXX% $XXX its of though revenue while of to only approximately travel the of XX% pre-pandemic first recovered 'XX, of of peak. market million international quarter $XX net about even XXX% was first

from XXXX's our for mostly revenue, solutions. Take substantial we our level revenue continued quarter X.X%, with diversified of was define increase revenue a success ancillary by in line net streams of expectations. divided by to rate, fintech gross and X.X%, of the rate as the first which Take driven pre-pandemic be

rate XXX take transaction higher-margin upward expect revenue stickier add-on trending we the activities, time, our to and portion events complementing higher a soon quarter hotels overall fintech up quarter million mix comes revenue and first greater we're Over cruises, of plans. from of as continue the and and of a ancillaries, first happy from over from in million in We XXX XXXX, subscription. Furthermore, of business 'XX. our with had transactions the

percentage quarter from revenue GAAP incorporated of as X.X% we sales last revenue X.X% a year as expenses. X.X% new to gross X%, same to up percentage of the marketing G&A decreased a as from Turning a company was and net in expenses. year. public ago

Note million $X versus Adjusted $XX.X of On with approximately was nonrecurring non-GAAP are year. period million available loss GAAP $X million and the to earnings income or loss basis, almost in a million basis, year. million, last noncash net that was of same year. included today's the Net of double last loss net $X.X a last loss release. non-GAAP loss of items. $X a million adjusted On $X.X GAAP EBITDA was reconciliation compared net

million as December compared acquisitions, facility $XX Looking due by the $XXX cash we of at first million used debt and with had our the million respectively to for of an balance in million end increase well end $XXX $XX quarter million debt, net cash increase debt our million in approximately at sheet, of and of was $XX [ph] This $XX XXXX. as at

In EBITDA to our of capitalize is will we is in the on million Turning the opportunities. to representing midpoint. to project to $XX million of to travel $XXX be in at the enable believe net the growth international organic outlook measured the of Adjusted XX%, be industry reopening $XXX guidance. financial now in inorganic revenue position strong range year-over-year future expected of still million. continued in that growth Mondee and that summary, range us XXXX $XX to and a million, We and

now Prasad? I over Prasad. back to will turn it

Prasad Gundumogula

Jesus. you, Thank

the transforming travel workers pleased of and with hotels tech and XXXX first very airlines, with beyond. are an gig rentals its is media of our modern quarter industry rest connecting vacation travel We experts, through network the social and for influencers. with and expanding truly economy platform, millions excited users Mondee of are

solution and fully fintech online our negotiated unlike to offer store one-stop excess only Additionally, value provides broadcast platforms. but capacity BXC content not also distribution networks, market and comprehensive with suppliers reduce shop a unique travel to channels privately distribution the and solutions ancillaries,

strategies. with We suppliers, which revenue or work their collaboratively strengthens management systems

distribution technology Our to and continue positions market. content, travel trillion the and disrupting uniquely assisted $X affiliated us

attending support. and we for to call, our first your Thanks look earnings quarter forward ongoing

Operator

Our Roth ahead. your now Aftahi question Darren from is first comes for Thank Instructions] go you. line from today Please Darren, open. MKM. [Operator

Darren Aftahi

I and may. work results. questions, if you. Good morning Thank on nice the Two

and kind like the opening needs in kind First, that business and happen levels travel. beyond travel year, just to my - what question to guess that's how peak think you with I to it going to China you later the about commented your peak to first of question. where is back do of get is of impact international relative

quarter? one, second of year? attach sort how your fast the what of the the that are the did fintech grow expectations on for rate? And And Thanks. ancillaries, was in rest and the What

Prasad Gundumogula

answer will the question first. to attachment I [ph] the second

improving going and and month-by-month. are very the high, they and So increasing ancillary fintech is

attachment segments of segments. So XX% to we and seeing solutions catch have ancillaries higher wherein And fintech on XX%. rate we a rate which business are to overall, compared certain attachment between XX% with others, it's have up XX% of good close and other

we recovery, recovery international XX% the expect And China's recovered the reopening, this of have of today. the in we by markets international industry to the on point year. first about market fully the end talking are the in So

our rate approximately in XXX% XX%. are However, growing recovering please are market been compared growth we And no, revenue that that comes that note opening, take the being increasing that from answers... [ph] our - transactions the and have the taking the markets time we from streams at Hope the at the with same serving at opportunities current

Darren Aftahi

Thanks, Prasad. Great.

Operator

you. Thank

Please your is Tom from now question D.A. of Our next ahead. comes open. line Davidson. White Tom, go

Tom White

morning. first if Good Two, just Thanks guidance. questions. guess, my Great. on could. for I taking I

raising core how the may impacting moving think, EBITDA pieces the us you're you're $X.X of of versus different or of So kind I the range. new revenue Maybe of the any holding just versus but on there, updated kind outlook parse of kind business million, help of performance by, maybe be the kind thoughts not views you or may acquisitions guys? macro some out

of at? been even all is since looking the you or And about that an opportunities why talk America. second focused from deals the versus year, you're then really on other, kind Latin question, bit Maybe focused of Thanks. of have some international, of, perspective three just domestic market M&A a start kind the guys maybe little where

Orestes Fintiklis

Tom. you, Thank

So Orestes. this is

guidance So side, these the for acquisitions that increase made we acquisitions the EBITDA of include increase if the disclosed is the that X the new the you is the revenue. the we effectively rest that adjustment this the have months we made see the information to so second two year, from is size In for X.X of to morning the or the the in half year, about million. of of our can and

we're we kind mid- that when the significant range. talking XX about of XX, So range, enough high of to range, talking the to a low the we even if mid targeting now that level range level that though of to to not were of is are change

why So that issue mathematical upwards. adjusted is of EBITDA slightly kind haven't also we a the

the of but because to selling States, traveling geographical three synergistic other are Latin companies relation also us of traveling to the In to our allows - America which content a opportunities, travelers Latin to your Latin for the sell growth natural is is second the way travelers America there because which U.S. cross - expansion these not that to of synergies, around. American question, there the relate and United the a proximity only travelers American of obvious a Latin the to and and basically us, fact growth cross other

close America the with realize is is you is intend a fairly high other modern depth Latin because There geographies, penetration that, tech acquisitions technology States mean of in three have lot an in also our - that a United of Having And we even we're as to there timing Latin said having America market those provide know, tech doesn't opportunity [ph] that one and world. the the element than that more parts not in to closed of also synergies just of going less acquisitions is other first. to to wise, the these

Jim Dullum

Dullum. Jim it's Tom, Yes.

effectively. pandemic performance that was just if what Orestes throughout me very you region companies I on whole Let add executed the had at to saying. the look mean, strategies and they they that of specifically, these

three teams have management I all mean, with that to flawlessly this executed companies, point. So fantastic they're

they next out, go go now Orestes gained they to next market Mondee all as distribution, cetera, level technology need the need to level, the and but now to points et access to pandemic, throughout and to is they've content. what share So Mondee the

So those help all will things them.

So effect multiplier good saw just values. there a we at

on other focus to do areas. work and to continue And made sense so these we first on that while just

Tom White

Great. Thanks, Orestes. Thanks, Jim.

Operator

Thank you.

comes line question from is go Securities. of now Grondahl your Mike Northland next Please Our open. ahead. Mike,

Mike Grondahl

you Good Orinter, closed first Hey, know like the guys. X. February I morning. acquisition did,

able leverage expand and rate to how DNA have it's is - going? big that recent. to I XX%. their you of had of been presence? a How business hotel But a hotel take integration hotel some performing? is kind they your high And that of So presence pretty know Is

Orestes Fintiklis

I'll Mike. you, Thank one. Yes. take this

half So hotel we synergies. I the to some complete the year, which of additional second we are in anticipate within in hope next content, process to their the showing weeks. few able we those the of process of And results this mean integrating be the do seeing

we and than bear more said It's that is that, morning mind zero the even hotel hotel point component. XX% having has another air. more to announced Interep Now has in it this acquisition

going there, our enhancing which, content and that it hotel more months of is like dynamic Interep, product, So case we In you complements mentioned, that's how we of where the even on there of content. mostly with are hotel the Interep closed X.X about luxury ago.

Mike Grondahl

where times it, level years Got harder it. you've then pushed in back couple you of marketing And where got your little know there's last describe been would you've and I pulled on a bit. today? marketing, then strategy the

you the of marketing and level what you do see the kind doing push now out year? of of, that of Sort how are playing rest to

Orestes Fintiklis

Yes.

let America the Asia you pandemic, Mike, and marketing of level our maybe of we after we Jim can first side, mean the efforts and now. that the the on pushing Europe, on. at we start when full kind beginning are year intensified I me then recall are North the But may at in and then Prasad reopened So in in that add. we

as So in to very marketing a team you also our we of there hired last strong year know, teams. professional December enhance strategies recently marketing and our

strategies one EBITDA. but usual. not this an And same that is seeing pro because this that necessarily are marketing of not the EBITDA into you more to translating is a those we are revenue, much is having expenses and extent. that reasons is rata teams. increasing are higher than enhancing area still the increase So in and now we a And doubling,

more driven to are influencer We influencer-driven expanding media strategies. - social

much of show XXXX. and higher now half lot is year the the there cost hope it anticipate, of beginning but and second - we going is the revenues there, showing that on higher will which structure, a that So we in

Mike Grondahl

Got it.

like ahead just Jim. - go And Okay.

Jim Dullum

as the geographies to so that are kind that much to you geographies said of efficient core about, twp continue our at the marketing is it, by the just different taking opening if which business, to effective marketing levels, and that level just advantage different - of that. et sort moving practicing was Orestes add, I allowed us against of There has we becoming Mike, up the are and of to think just take now to more is marketing advantage best, going right? cetera, focus

experts, of that just and here the an But announcement gig the that business itself own transforms be transformation as of a ago so weeks influencers, effort would reiterated particular we the into forth we the transform in we and that goes and that rise through and kicking cetera, few marketplace example marketing it, made its the as well. the our with is TISSINI gear as workers with sections, et segments

and very for basically the transforming. Kymber in way marketplace So is at marketing now focused her the are team different areas

have our you expect product our is when at they marketing that So a focus will - marketplace they and our they're them and as will offerings look broadening, broader is high into gear, efforts, be kicking because services.

Mike Grondahl

And Jim. Thanks, lastly quick. it. just Got

I $X $X.X that? had number. think disclose million approximately and $X And revenues but the revenue you had guys Consolid adjusted adjusted see acquisition million Interep think million EBITDA, of of of EBITDA. I I Did saw the didn't I

Orestes Fintiklis

said Yes, we disclosed We the XX%. EBITDA margin.

can right? from over infer it just was $XX that, million, So you

Mike Grondahl

got Okay, it. Thanks.

Operator

Fitzgerald. question from next open. now [Operator Thank Please from go line is Cantor ahead. Our Brett, Brett your you Instructions] Knoblauch comes

Brett Knoblauch

the Maybe for macro-oriented quarter. Hi, for on guys. my question more congrats and a taking just me. question Thanks

Kind or the operate much travel of of a prominently arise impacting how just may so. Thanks. have the the people you for you lot have as slagging been not the you maybe on talk [indiscernible] travel guys in year in? now guys Can companies be about based maybe or been you a impacting this reasons think traveling that [ph] lot I last space

Orestes Fintiklis

Yes. Thank you, Brett.

and that make point a have least the proportion travel U.S. you you that one here mentioned. market why is of companies, or domestic this other their I is that, their many the is So slagging would progress element in of at bigger business that

recovery, last discussed with pre-pandemic I XX%. mean, we in has XXs, to travel the the year percentile Whilst average peak. QX, And the I low peak. of growth you're how the domestic the international already its even now from the recovered XX end of mean already pre-pandemic in was

So this the dynamics that basically macro is the feature of level. from one are differentiating

XX% the have revenue share Mondee, diversifying for we the dynamic have all to the by in also ancillary and than solutions. more our Now more addition fact dynamic that macro specifically also and these of travel, market streams international focusing dynamic favorable of we adding fintech a and growing

has all to a So if dynamic you the completely in incumbents that, combine we that Mondee different space. the believe

Jim Dullum

to And the Yes. market our our products that really of Orestes the groups I'll again, which agility together, well are advantage the is just Jim. and communicate, share. there, market is that tech-driven to we tech so which - something their we just to in ways that go us pointed of emerging after by not out absolutely that it's Mondee, here, services, all - take that come segments quickly, the the emphasize of of those the gives just to of the and focus platform, providers things travelers take culture to and our is created which enable our and the in Brett, allowing go but allow agility only ways advantage agility various the us of

if market a an bit, and the little we opportunity out us So even Orestes more garner even share. to as starts on slagging that that pointed go generally see

are others offense, going tools do defending, to While it. we're have and the we on

Brett Knoblauch

full ask year And your that guide maybe Perfect. about then you to year? just follow-up. inorganic raised, from you I Thank contribute guess are could the expecting much this guys maybe you just how acquisitions you. talk I can growth one if

Orestes Fintiklis

Yes.

I think, Brett, question. we this answered

is side revenues the months adding made So quarter the companies two we next for addition today. the the these of announced to X we quarter last on this precisely revenue that from

guidance point. we numbers of accordingly. simple of So expectations throughout on and course, that's the the the year, that as math And the improving be or our rolling will kind adjusting

Brett Knoblauch

Appreciate Thanks. it.

Operator

over turn Houston, SVP. for concludes the to That you. call Jeff back Thank I'd today. Q&A like to the

Jeff Houston

who to earnings call, first whether call, in with welcome live Thanks, on XXXX the for by opportunity reading further appreciate all connect the Mondee tuned and here in the interest it to the or We your was quarter you. transcript. Alex, our replay and thanks

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Operator

Thank call. you for joining today's

may lines. your You now disconnect

Mondee (MOND) 15 May 232023 Q1 Earnings call transcript