MOND - Earnings call 3 2023 | Mondee Holdings, Inc.

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Operator

Good day, and welcome to the Mondee's Third Quarter 2023 Earnings Conference Call. Please note this event is being recorded. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]I'd now like to pass the conference over to Jeff Houston, Senior Vice President. Jeff, please go ahead.

Jeff Houston

good everyone. and Bailey, you, morning to Thank Welcome third quarter call. XXXX conference to Mondee's is CEO, Orestes Chairman Chief me Founder, With today and Operating James Jesus Executive Chief Financial Portilloo; Prasad Vice and President, Fintiklis; Officer, Dullum. Officer, and Gundumogula;

that these filed issued other was cause described this to forward-looking be refer press statements non-GAAP SEC We certain statements, results revise most management the after it to at the available our measures. we my to difference like product revenue, statements from our call, this we no undertake it's reports pleasure to in the discussed call. reflect to business, including of statements release. are including could Prasad. our in in nonhistorical and that also turn the occur risks our these are everyone comparable statements present These are remind questions call over success, of changes in Descriptions actual release, conditions. growth, Reconciliations this our will subject I'd risks, of a also other measures is for governance which those material morning.During our to our financial and to with have GAAP performance any about obligation forward-looking available press that will results press and release the investors.mondee.com.With that, available and and to evolution Mondee's management assumptions, industry, and plans statements further We may of general our to that our answers.Before uncertainties begin, contain and economic and as and forward-looking development business related and growth

Prasad Gundumogula

developments. XXXX thrilled to to results you, earnings significant and welcome quarter everyone Thank to discuss Jeff.We our call third Mondee's are

driven to technological well our monetization a strategies. share results reasonably combined and robust been have accomplishments our as as travel leisure market-leading enhancements demand, Our strong market by with gains

thoroughly an results, EBITDA our quarter rate unit, note we net represents On details start air U.S., over the quarter, has at revenue of with the as into over fully the EBITDA Slide quarterly presentation. to throughout a of of normal the is business get it last a quarter, comparisons executed.Turning by year. provide noncore will our higher basis portion extraordinary driven X reported $XXX of take basis, levels same million this of have million but pro XXXX. that year-over-year. growth U.S., growth pro than was on same the also in only year, to business Gross the Adjusted more discussed forma forma the excluding conditions. highest is we our pre-pandemic This pro market As not underperforming highest XX% LBF of BXC important doubled XX% last million LBF $X $XX approximately this This period history. of since the of be since X% to in which divested we of of forma expansion, owned bookings which grew XX% presentation our we results

in through related stronger We continue for adjusting into November, million increased quarter. million future grow our to excited what record are one-off expect looking a $X we The are and in by of cash even October $X after about generation EBITDA divestiture.Now we to transition be quarters. to an is of the flow fourth profitability operating outflows LBF that translated to halfway

fully profitability prospects flow. comes near- materially motivated to technological for and This While these cash AI includes needs, focused and our and long-term and and it particularly are the encouraging, integrated results expanding enhancing on our we marketplace, a targets Mondee. are widening free when

in Mondee's platform potential Dullum, Chief for integrated core global our experience overall fully best AI in Operating continue immense Mondee's our we influencers. business it with where the solid demand of upside to distributors, most experts new positioned and sectors Officer. market, sectors Jim emerging I Jim? is This marketplace.Now era and to over hand For and will

James W. Dullum

America and with the start everyone, early welcome, India some of consumer in markets, strongly the travel market upside. to as demand toour external Across and wherever of such Slide the globe, markets perform and of growth some good you China continue recovery such are.Let signs moderation using subcontinent outlook bookings with morning, post main There many Good North Mondee's X. certain me Europe. drivers and gross as are

Ukraine AI impacted platform business global picture. in and addition, other to position war and an the effectively conditions by continue are overall Overall, and and demand more to In Mondee's navigate markets, East. across expect these business we specific Middle conflicts positive with agile market some markets adaptive enjoy model, the

to benefit see to addition, pace emerging our our the from international the than we travel, penetration of experience-driven In recovery geographies. social more we market more share based related from upside of XX% of on continue significant leisure increasing of sectors.With certain tailwinds business media

American in organic U.S. XX% has increased recent very COVID levels. our from XXXX with growth meaningfully the For North presence XX% was China was and to minimal. it remains market when acquisitions resilient. XXXX business in XXXX lockdowns dollars, which was Along China, in which our in example, similar travel during its from America XXXX Year-to-date recovered business of back Latin lines, has approximately Mondee to of its extended

other the East war hand, on discord America impact driven by to mentioned dampening these before, continued travel and from tensions the geopolitical outbound Middle North regions. On Ukraine a have as

the have they note negative Mondee.In ability the unaffiliated opaque, to travelers what during negotiated and American we new experts the travel side, era platform travel periods potential fully of recovered softening assisted improve of that value North is cost-effective We through to that It confident on is continued suppliers mitigate precision, of is all provides. important version to overall conditions to is will with and continue travel target travelers impact.Furthermore, channels and times, the our because itineraries, of into on travel in about such more XXXX. integrated for seek marketplace. QX travel and take trillion we which demand continue now technological economic the end like to newest business largely more suppliers even tend agile monitor consumer these concerns model of tend content to during steps intermediaries. there And been for macro Mondee's parts the end a privately search side, cohorts experiences, Mondee's leadership.Moving Mondee's the events customized available Mondee well leadership forward, play pricing while more market, AI supply uncertain our resilient provide enhancing summary, that our Mondee $X XX,XXX and market. and with capabilities both segment trends certain over The are travel leads establish entire to existing our growth more, already any

distribution providers. on new are technology to expand A intermediaries up, with more product of the as already concierge few to one-on-one leveraging model. and receive we thousand influencers, them before, era discussed era engaging and our experts such have monetization feedback these As media signed to social and new service freelancers we're

deep and been few marketing refinements are new So enthusiastic, a era and sales fully market quarters more the be making positioning networks, capabilities are in year. conditions, and pioneering development we details report investing focused before evolving our on have monitoring capitalize will far, because channel. and we few distribution on this the we these Moreover, marketing relevant we metrics in has later.To this distribution over next product brand feedback

end-to-end Abhi, released As brand our a large position cohesive and successfully a established AI result, and offering. Mondee integrated

activities With campaigns. additional these new Using we Mondee to expected and in marketing and are spend this more revenue and more upside to These increase pivoted business grassroots regions our campaigns are while accomplishments in accelerate of expansion. to achieving influencer optimizing we market penetration ways. and approach, variable to and sectors, emerging enabling substantial hand, market scalable targeted transactions experts have era continue cost cost-effective

for to ecosystem new Prior as has distribution increased our closed travel the global technology businesses ever-expanding of uniform products range by and of to that same small organizations groups. travel Mondee's addition year.Another distribution sold we expanding up growth BTE and we more pandemic, year-to-date partnering with an compared Net and services signing BTE this membership as to In provide from a experts, period well these midsized reason the content to hub. last provide and our through distribution revenue have sustainable been era expanded use to air. content XXX% is the only platforms

driver as hotels, which growth year-to-date period platforms, content continue We user packages a and fine-tuning. we we ancillaries rapidly. than We tools to distribution compared will enhancing Executive have small content, and have higher by At take product where in of same XXXX. I Chairman. input monetization Orestes, cruises payment enjoy and a since further anticipate our time, the year. tools.Now been fintech last gross rate bookings to and added that launched late be cruise portion other the hotels offerings pass Vice protection such with grew Mondee's to fraud XX% our activities Recently, expanding wallets air for a grow and same

Orestes Fintiklis

much, in further AI product been lead technological our widening Thank advancing Prasad highlights, and our you mentioned integration. Jim.As very his have we

enhancing the just travel, stay models unique and experiences, continue experts as to travel XX,XXX on booking ahead to to access clear AI Therefore, encompassing only are ability build innovation now a enhance we remaining integrated distribution. a that management. platform itinerary of continue product our only solution AI AI marketplace platform our continue considered QX. travel. we'll models.Having Abhi AI-powered to evolve beginning and AI curated AI. the the as enjoy the in We to the AI for plans are and to generally advantage, our trained in brought step next-gen to beyond which we Abhi, is technology be travel market, market, into monetization data we and addition at interface, AI with confident expert we our and and train cater direct In to itself, finalizing forefront this content, conversational is and integrate the continue that And we improve more on in to in our integrating fully first to customer the and first-mover creating

ensuring some AI the to a Mr. of founded further our strengthen in in by capabilities closed John that yesterday. Shibi and expect diverse share Purplegrids was advanced prides personal the travel tool and and our companion, only AI Abhi, user the revolutionary adventure with was AI technologies. We innovative leader Sudhakaran. them recently and Their the transaction AI heightened we marketplace, flow AI next-generation the experience This deployment new a advantages acquisition one an powerful unparalleled was to being cutting-edge profitability integrated boasts applications. are the transformative enterprise a features. John have an Purplegrids deeper, improved focus Purplegrids, and Alongside capabilities.In it innovative a Meta, uniquely with integration iTunes with new years. Joseph market.Turning intelligence part AI enterprise released previously EBITDA efficient well companies, to XXXX profitable addition our Operating high-growth Sudhakaran and served power business designed Mondee's significant Music team positions Silicon including of development, persona team reflect Valley, leading Mr. PayPal leveraging facilitates enhancing innovation disruptive build multiple businesses to a stands sustainable of Mondee worked and the The rapid a as capitalize technologies PayPal itself striking Apple in our on to powerful for expertise native with highlights investment cutting-edge player platform authentic AI equation. in travel Purplegrids level, further Google, Microsystems. and X decades technological travel AI and Sun on offer on generative sources and a robust seamlessly and AI/ML approach most capabilities. and Innovation platform, who we as logo cash planners the platform Headquartered dynamic rebranding experience preplanning integrates growth the at and and and announced has travelers AI technological a has leadership capturing and Apple, as fully data over of in identity, one. on website Oracle. generation. a company's XX of most with dynamic to connect of all website blending platform our brand in more only professionals enterprise provider experiences. local the of travel on no-code empowers AI with spirit,

inflationary mentioned, Prasad ongoing than on centered these of EBITDA direct Given experiences In operations losses address generating detail the and section. cost our flows solutions we improving has cash and profitability both to profitability, flow revenue long-term consideration as via LBF enhancing our The recent commitment air net XXXX. to revenue. the increasing with to supplier generating declining pressure his strategy our BXC selling improve The Jesus reducing through XXX,XXX focusing around certain the for AI-led are shareholders, travel U.S. Mondee incompatibility its business services adjusted EBITDA in of while labor LBF's been rather consumer and a of transaction is of effect strengthen result been online.Furthermore, company's generation transform have into and booking to underperforming more a in as focus will adjusted calls net divestiture Mondee's to trends. original that in we is EBITDA quarters on free and and owner cash of divested unit an part shares. to majority model noncore BXC one business for

the place a QX further as put strengthen even integration, of of for now pass outlook. we to year our and on on to of addition during completed Jesus, on opportunities structure financial X of and XXXX. business this next-gen strengthening and review underperforming In noncore synergies optimize our their importantly, AI platform.I CFO, acquisitions cost in core XXXX, to our further into have as are Having profitability we capitalizing now over and Mondee's and plan business divestiture well units, focused implementation will final call performance to for Jesus? a the more cross-selling

Jesus Portillo

would to point that I out go XXXX Thank start QX me rate unless for are basis, with financial over #X. year-over-year results, on highlights and our hello, a on our growth otherwise everyone.As operational like indicated.Let our you, I Orestes, Slide

results throughout growth efficiencies third a generate results. We Evidence, operational for improved growth a long-term efforts record adjusted strong this revenue producing producing continue outstanding our quarter, are to and EBITDA. and

of we XXXX, were previously XX%. as for up $XXX than revenue If bookings, grew LBF divestiture, actually reach was forma this quarter revenue revenues number This of XXXX, airfares $XX.X net gross we growth reduction increase XX% driven the million. the airlines.Our in growth This which XX% if pro in to transactions, improvement X%. up to million in growth referred for If third gross pro our divestiture the Our of LBF increased higher as as we gross pro quarter, forma an by for was in XX% of for XX%. more our by net QX revenue forma bookings well offset rate. LBF result is continued take

of X.X% XX%. of and ahead Our take was rate our expectations up

this mostly quarters, of prior take in hotel was diversification with uptake and including rate As ancillary revenue streams, and fintech content the the improvement services. by driven higher-margin of

expenses. non-air addition continue the We to important this loaded the digits to content.Turning now of into metric and cruises with expanding expect mix of double a

Our operating expenses declined XX%.

XX%, However, we're a this that compared our having effect XX% sales Sales to efforts positive compensation, of net efficient when at and XX% from of clear a stock-based we net operating XX%. important revenues marketing expenses long-term revenue growth exclude are our and component. and becoming increased as more a very managing percentage cost to marketing decreased our signal

GAAP million impact turning emphasis and our LBF to put revenue intangible of reached this nonrecurring on As net a $X.X on compensation and sales grew to we up $X.X LBF now of margin and also result quarter to $XX amortization, $X.X adjusted such among with a was efficiencies our Slide efficiencies $X.X to million. X more of from strong XXXX financials. basis, and in On and net Adjusted divestiture, continue loss XX% cost our million million stock-based $XX.X marketing, EBITDA was as divestiture EBITDA XXXX profitability. in XX.X% of million million as XX% included address growth operating asset others.I'm and noncash of which million, net and/or the of $X associated items, our

$X.X the XXXX, million. net During of of had December ended EBITDA an fiscal and LBF loss XX, adjusted year million revenue $XX.X

to X. ended XX, costs. June $X.X in exclude for ended LBF $XXX was million.Looking had be the and due $XX.X we used cash in $X.X primarily complete million, Slide $XX EBITDA quarter, would Therefore, on an and adjusted of the this $XX the Skypass cash The net revenue cash EBITDA our if now million XX, were million to cash of For of end At debt net $XXX.X be X million and we and $XXX adjusted sheet XXXX, our equivalents compared forma decrease divestiture months to XXXX. million. to had balance and and to one-off months respectively, the revenue at of company's XXXX, at total June September reserves LBF, X acquisition million end the loss LBF pro million will of

In $X.X QX increase recent divestiture, related a our million non-collection of secured companies, to of and It we customary improvements. a making continue credit operating debt the in million by eliminating primarily that providing to some a fully important positive adjusting is the for addition and accounts year, are position, to of XXXX.In receivables flow these in payment to terms negative generated of $X.X of any newly I like banks consolidation which acquired the due operating plans card cash company. our After is businesses point to versus outflows we cash cash as on to out to cash our Brazil. potential practice. payment prior million risk provide travelers of our $X background would one-off flow, of compared plans We're

Directors Board end share up buyback the and September. million to notable development program is an launched Another $XX of at our inaugural for by approved of

after Also XXXX shares. Index, the the to Index in million underscores inclusion September. than we end milestone This joined QX, to of Mondee's our Market and Total Mondee relation of strong in less June fundamentals Russell stock, business performance. S&P our in As $X our of the repurchased

We base value.Now the this enhance among to to Slide shareholder addition long-term community stock guidance awareness diversify increase new on and volume #X. to turning expect liquidity, investment raise the company's and our

divestiture For representing approximately the we January a expect year-to-date could we into If XXXX, momentum $XXX net to million, million, our forma growth our January pro XXXX. now and XXXX and basis adjusted excluding be the XXXX our to year representing XX% excluding excited be EBITDA well, $XX we Likewise, growth on XXXX we guidance, LBF LBF for about expect end adjusted growth pro growth well, this and revenue basis a results from closing, this XX%. turn it be LBF from our let EBITDA a forma as Jeff for XXXX, be would pro revenue forma this, business approximately LBF in the we to XXXX. move XXX% forma back a as the divestiture versus pro If versus XX%.In for Jeff? Q&A. as me beyond. of With on we're

Jeff Houston

for Operator, Jesus. Thanks, we're questions ready now.

Operator

Instructions] line comes [Operator question Aftahi the of from from Our today first Darren MKM. ROTH

Darren Aftahi

I if couple may. A

So vertical non-air. is of with mix your the air terms in what versus now LBF, curious of divestiture I'm

had I past. think referenced you the in XX%

that out is kind given the a lot mean LBF of with that increased going number just of mix? forward, Now to picture, lower? going rates take Is the

Prasad Gundumogula

hotels XX% some although which rest hence, would for non-air the other we non-air in And mix the we mix. component to and still the we around of be XX% more have for which acquired, to that be that that would time has of inclusive, XX% that products. be air XX% including between air we rest but and same at a businesses air mix the divesting, are So the have and packages the

Darren Aftahi

maybe then And Jesus. for one helpful. That's

your So we forward, of operating of of leverage sales model pro a your similar level kind forma growth. on sort going should given based expect

based pro $X kind of a you're feel basis $XX the I think to a have moves good you this on forward? you of year-on-year about that as was Is went forma up million about and on better. run some rate making? think enhanced some sales going EBITDA million model operating Or leverage do like we

Jesus Portillo

that January in we've table included I'm doing LBF we're we've XXXX. also XX-Q. going including XXXX and acquisitions the from forma, refer actually to been doing that pro business to excluding at a during the the What

that has was what at you XX, good like a just in look reference, the as give X growth, think top-line the will organic performing I of reference around growth you September excluding when months XX% a Mondee been for XXXX. ended XXXX, LBF.And

Darren Aftahi

for kind the you That's marketing given with Last of me. helpful. ambitious for maybe pulled still nature spend you kind marketplace. of just quarter, some the some And of back economy? then mentioned Are in you your things just Or level? last AI plans dynamic that on one track have

Orestes Fintiklis

I'll one. that take

addition these in directly of and done what Jim the signing we refinements of time model a taking era in platform. mentioned, the to monetization few to improvements new communicate most make them As to have travel we with intermediaries, to thousand the are certain to order

will a XXXX, and campaigns. for certain implement implement going we be million, implemented So especially that more some speed XXXX, some ] these on and go monetization we expenses, be that of integrate million marketing will part spillover of may continue go with rebranding, changes but fair model remaining marketing before $X full million the the the to $XX that waiting the team and approximately to we of there to in we that as as in in such we're [ that $XX-or-so payroll that components part. and million But $X

Operator

Nick The JMP line next comes Securities. Jones of today the from question from

Unknown Analyst

on Tim here. for It's Nick

just Just a trends consumer been you of in little within consumer of has if follow-up X, durability things. A terms And the we after I if talk travel you're space? just and on that, lot the what bit Can one focus may. could. of here about recently, resilience seeing

James W. Dullum

Gen beach travel sort a move little trends steady. with industry mix part the are more world. Z. changing that environments. millennial industry fairly now based the the towards of and different Tim, consistent such patterns things whole personal somewhat on travel seeing opposed The as The in to is it's of different urban as on of going the Jim trend Basically, And changing what in here. we're of is leisure, patterns continued are bit, environments staying parts that's

thing we're the that the of some those consumer The trends see we're been, our nice But seeing and we trend the some example, an building acquisitions good. So across we that strong, have the is comments, where that the I It which into there, steady. seeing, pretty remains acquired that. industry, general as as we're mentioned on ourselves. Latin of spot and is very in of remains plays America, sweet

as bit world we'll moderation has other maybe market, a even as North being by little the think softened the we've So see little market, the it's I balanced a in Asia of out America parts and seen Latin by across et American the industry. cetera. nicely

is that if strong soften be forward. to that sort question? So implied certain going answer little think dips parts smooth our we to We're of able more markets see out your where we distribution might I are is world. and the mentioned, in platform agile Does of the Again, the that trend the our able point And to fairly as is solid. enough. in question things

Unknown Analyst

could. Really And I helpful. that. then Very Yes. appreciate follow-up, one just if

curious kind Just with attach look your kind of of seeing fintech kind ancillary as and of what well? offerings rates you're

Prasad Gundumogula

some there. all, around today. the we scope, we seeing retail attachment increased are other attachment And businesses, businesses seeing a certain We XX% rate and good and have All rate working, businesses around we in rate such trend we detachment as are higher which so today. the XX% have an are has

Operator

Cantor Fitzgerald. from The the next of comes Knoblauch question Brett today from line

Brett Knoblauch

after revenue gave XX, on you to August last year LBF. guess you of I start kind on guidance guidance. the divested the downward which revision was full can we X.X If net months

after that So what point I in kind that to guess, kind of of the point this happened guidance resulted revision?

Orestes Fintiklis

Yes.

the our when we are assuming we retroactively revising of me excluding that year. let the LBF are from Brett, So clarify, are we guidance, beginning

the on So given we reported guidance number. new have number, but not a on pro basically, forma is a

year the are So the LBF QX, in we despite during first guidance, we of the removing divestiture as well. are the net half revenues the basically during of

So had million if you revenues. that effectively at $XX from of net LBF last almost perspective, look it year

mathematical And is we million prior plus line adjustment make that previous guidance have you a provided guidance. in made much this forma couldn't $XXX Therefore, to to $XX on guiding So the we is change basically a if this course, point. in then that not quarter. that just adjustment, million. the with we completing along similar again, that very pro It's are a acquisition. of our lines, calculation end of And

So that's the your mathematical to basically explanation question.

Brett Knoblauch

half this gone makes of the year, gross okay, the gross through changed I guess, we've revenue what revenue, that the actually And bookings net of it sense. that maybe that has then first methodology. change? like I in on to kind looks guess

Orestes Fintiklis

a definitional teams. and our from basically mean received comment a it's we thing. just accounts It's I new new

So the industry gross and term the terms to relevant bookings as revenue. in opposed PCOB is gross

a with to it's in the line So change the accounting not which in label, it's just the rules. is PCOB methodology, change

Brett Knoblauch

But that your did result in your... comparing some kind of corresponding changes to historical I'm numbers, if

Jesus Portillo

the it's calculation label. to Methodology same, Orestes of not just number the change. the And terms the same. would said, We by little industry. in bit a No more No. be terminology, exactly changed is be used with methodology methodoly... the on exactly No, the consistent as

Brett Knoblauch

into guess year, think about it. kind And maybe growth transaction should and Got and we the Okay. on a pro transaction. forma fourth next take maybe basis? going into ARPT and growth rate of the I maybe how then on just quarter

Orestes Fintiklis

products, So I in of But... take rate hotels we said forma linked rate other terms because of starting type get before, we to expect, for of are to and it's to you transactions at expect mean non-air double continue happening of transaction been more be when you When these some I and take the digits. as that XX%, into the right? look our about strong, growth this we're talking quite the LBF, to growth, pro

James W. Dullum

just is come trend. down, ADRs mean, this an And but And that seeing up and -- also Brett, I that's obviously, better. ARPT airfares we're on industry stay the we're seeing much hotel question.

our again, et our move the businesses continues provide of some And other to and ancillaries more in recent mentioned, portfolio the hotel the to to Prasad on areas. additions to and cetera. mix the those as So cruises, support improve of are helping

There's ARPT. a decline So as on side, made the air but we're then the because that's lot of up. impact seeing that happens, a of

little it's air number as on happening bit, much that nearly is So the but as is a side. not down just

Orestes Fintiklis

the Yes. than I opposite mean, we grew which that, trends these have X normalization is overperformance fares, future. So post-pandemic right? that, And our top we XX% a penetration the and basically entire after X this a market a despite dynamics forward you of sustainable going industry, those to to extraordinary revenue. business factor on in on of the is dynamic increased the the seen to of net pro And is the in a model and decline forma why underlines in also boom. is basis, growth and air have offset on add which the bit rate, industry into more This basically our result of take

Operator

today The line next Mike Grondahl Securities. the Northland comes question from of from

Michael Grondahl

acquisition or revenue Purplegrids, that is it for million adjusted kind of X.X generating? shares, EBITDA what

Orestes Fintiklis

Yes.

So I'll take that.

the travel term another the So acquisition to full a solution, step full either a not Mondee Mondee. is short in or that mean platform logic which travel by EBITDA generic behind effectively, but is a buying integrate platform. complete to AI AI pioneering acquire is I revenue, into company

the this AI, tools effectively basically AI. integration powerful in our going objective revenues very all the leading use to to office, AI we including to side, will on to because into number enhance of term acquiring our the take mentioned, we'll marketing, and have even the side, impact time. in middle of it monetization not are be only on employees short them and this QX.Now been front to is and this company, on a period office the acquisition the in substantial but clear a And time like we highly long including elaborate of is implement that revenue the very nonmaterial though of some the Now for closely cost skilled business, and more we parts and on sales by back platform the working cost with taking of implement

substituting flow So are consulting effectively, cash fees fees. we on the side, payroll with

our business. this AI only was growth it our parts solution, all believe we overall, but map So to implement it basically to our very of underscores commitment in cost-efficient not road AI-driven a and

Michael Grondahl

then think shares. comment And that? LBF, $X.X of just with Jesus' Could the divestiture, what cash about But you the you heard outflows. owner it. I XXX,XXX million explain Got original gave was I that

Jesus Portillo

Yes.

an mean, were happened did own the Mondee this in Mondee, XXXX. This case, was He I done the from stock. that shares acquisition in payment So to back acquirer we right? the to

So So that as paid confusion, Mondee of Mondee we be stock of stock right? might the payment. that part Mondee, the it's of received not a

what we part that's primarily when the helped talk around transitioned related in the $X number to of that QX, about we as cash as business. one. we And So we of million know, mentioned during you the out agreement, that's this Also, transition divestiture.

Orestes Fintiklis

it. we try to losses. to number, So transport XXX,XXX validates was a that agreed quarterly point business to very business an it resize this to fact Mike, the costs, transformation to again And coming time. also didn't kept the at high, the which we in increasing basically this the model just business tried and received and it so our of costs, We which We to actually to are big the on model, were to of shares. so during pay validates business certain transition transition past, mentioned in why restructure And unit. XXX,XXX also dispose end profitability was BXC the the which shares. decision dispose clarify We we important sentence, bear this basically that the actually, new the the it period

Michael Grondahl

pay you did for it What in it. XXXX? Got

Orestes Fintiklis

we But share difficult answer. a number was units big XXXX, a in component. question businesses. number and There business bought a to of Soit's a of

different bought we businesses. So X basically

first the one hotel part. The was

in air. were selling You only we may XXXX, recall,

to with the hotel strategy, during into basically, important we servicing very business Then used content within adjacent same to through centers to move transaction space, centers. second acquired consumer, unit which That selling there which was transaction that call another What business, basically the the our part, generative travel are BXC directly are that call relates through specific a this for was pandemic, disposing. completed keeping. and to a together we very So business the customers. the of we online is was not business a leads used business again, we are unit, disposing

personnel human on bit inflation and pressure of hand, in is market, this is under which is biggest there resources. the little is So inflation the because one segment and the a

you So this much incompatibility hand, centers, an this on supplier dynamic And strict this suppliers which So at have looking on hand. the of labor-intensive being with is through call other then our business more the very business, also the selling and creates trends the a relationships. have in right? a the part on focus you one they in way are

the part disposed, divestiture. this basically is we that's have this that unit of So

Jesus Portillo

think that had of we Mike, the The actually during is our more to profit, [ got financing we Yes. that, and transition linked see consideration business supporting ] on and goodwill, the reduction the add and cost the also that sale working net of to here capital unit this got you And that the about remnant with right? for you business the a this intangibles unit. we when on

Operator

ROTH Darren next [Operator is MKM. Aftahi Instructions] question follow-up Our from a from question

Darren Aftahi

sort have I Yes. as Purplegrids. in your a business it general to and AI just broad relates of about with question

So lot in there's a training these development costs models. of

One, I'm there? Have of hit customer marketplace. running, that that for another while curious own and sort the up the on their P&L kind cost kind And and will company? and subsequent not, the any running? way, platform guys to call question Purplegrids to your the your dollars for X fully that may made is more help of here get costs been incur that, if when things. of of benefit this investment spent will organic today. a Is trending experience Said going maybe sort you kind then R&D for product CX P&L? that platform, So to in offset most some R&D has part as the the you on And adding then up of centers in

Orestes Fintiklis

Prasad I'll take add. and will the first then

part of in they CapEx. have and So training for already our a we time, models been first period are included long is the the that

AI. training our Now already is have because linked that of we automatic a big part

So training. the here, bigger actual time, part the of it's the X cost benefiting is And developing we're and integrating from it declining dynamics. with the again, over operations. cost to a And then

platform through have basically we every that our are connecting And learning. XX,XXX on million we keeps top to day, lot searches data, experts. training then integrated on which of a done it are AI of are XX that, effectively AI the the with First,

sense expert service. with a with and So of an information provider connectivity this consumer the is definition, exchange direct a that more a interaction the by give platform of less has X-way the a of in is feedback the likely to than

question. your on first that's So

Prasad Gundumogula

our of So the efficiencies in this question, to impact and on second business operating the platform the operations. our

big our of but in also we plans So have every business. on overall businesses AI AI applying not only part this for and business platform center and call the

inside transform we outside. transforming, we as business Mondee, and an are So to to want a AI

marketing other well every the expecting to platforms and as takes transform aspects are planning we back and and on it of developed also the how with the the these and our actually outside that are centers, AI-driven to work So application, foremost creation and the and that information that we our including we giving current business business. as models the of we that aspect in the side it, front with call Abhi the on benefit of many that operations but are as

whole if transactions to we AI future sales it leap-off the be of our the all, whatever example, it this before an to with or we the a or give that operations, of chargebacks sales of for debit AI analyzing and to you and it funnel cost stop piece of save is able currently we improve the predict small happens memos it with so For wanted cost is able to are doing be that and dollars. big lot be able a a of throughout transactions there is I'll and example, have platform,

James W. Dullum

follow-up well. to as just Darren,

basically of end, ongoing lot of like things for and made. that, interface tuning, consumer There's putting ongoing made the the front entire the to it. investment it enhancement across summarize expecting on lot of a and already of to further the investments any so obviously the that a but investment infrastructure, most that already Just cover savings part cost there. relative to and we're

of terminology the implementation that I from will gave, won't particular but that of the support think this quite most we investment. So neutral, use example Prasad just returns

Orestes Fintiklis

the regard completed to think the I a generic we the evolving haven't only And platform, on platform. since XXXX. a It's directly it and platform Purplegrids and so part is is platform. complete AI sales, of travel with AI not been It's Purplegrids a of necessarily question cost answered has

a been since AI, been have in into of already of development already What in already platform those So we the own So years. it's having this with parts spent been place. place, big to X regards the platform costs those in for our integrating part are is last right? have doing costs

really very will new forward in there Of be providing course, again, to and new powerful company to for further features enhancing travel platform, which, to utilizing generic complete going highlight, platform. and more AI the costs tools a a it's AI unique this buy

So...

Darren Aftahi

sort changes of you're could the you Maybe paying that just sense follow-up. Purplegrids them acquisition so, once if acquisition, prior any if And is paying all helpful, fees? ask what one to consummated? and the Have on Orestes. been I understand how that That's consulting just to just really quantifying

Orestes Fintiklis

accessing a unique but became relationship this data lot that there The actually the is ago precisely That spend didn't are exploring data using created of out that platforms And much technology them purchase. abundantly and it became integrating basis. on anything, right? as more to efficient them, these to as this hasn't clear powerful own or people working of in relationship with have start started be pieces AI us value more how the AI, clear the X, sale keep neither start, Mondee's there working to along the company basically AI own of a on, a and train will did platform our because than of the in to So year differentiating it relationship consulting is factor money abundantly bunch it cost it their on actual Yes. a been way, a much number models.

And us, there AI integration. being of to And it they value way to Puplegrids working was ecosystem. agreed further clear became why value a the of was for there anything, them piece on became to an time, a really lot to Mondee are lot and actually along because So it of helping have period are is buying they they transaction with of path clear owning. in very that not in all-share a that of connected its our of a Mondee selling

Operator

you. are Thank time. additional this at questions There no waiting

So back call closing I'd to Jeff any the pass Houston remarks. for like over to

Jeff Houston

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

like any please learn questions about hesitate you'd call with more to a don't to us. schedule or Mondee, have you If

at our IR You us which site, an send Thank can or more get you. at information e-mail is investors.mondee.com ir@mondee.com.

Operator

all This concludes your Thank call. participation. you conference for today's

You may now your lines. disconnect

Mondee (MOND) 14 Nov 232023 Q3 Earnings call transcript