MOND - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the Mondee First Quarter 2024 Earnings Conference Call. Please note, this event is being recorded. I would 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 Jim With Prasad Jesus Gundumogula; is our Operating Portillo; and CEO, Founder, Chairman Officer, Chief and and Vice Orestes me Chairman, today Executive Fintiklis; Dullum. Chief Financial Officer, We'll answers. and for results present and our available questions be

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

any results on Forward-looking statements reliance materially. differ to Listeners actual statements. uncertainties are place are cause undue based on to could expectations and that involve that cautioned not risks forward-looking

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

turn to it my it's Prasad. that, With over pleasure to

Prasad Gundumogula

discuss evening Call morning, and Good everyone, First to results significant good Thank developments. to and Quarter welcome to XXXX you, and Mondee's afternoon good Earnings our Jeff.

expectations. with are quarter, record first net to adjusted had XXXX to a have a exceeding pleased revenue EBITDA start and market strong We

QX XXXX. expressed $XX growth to XX% revenue net year-over-year This continued for of in XX% expand earnings translated call, million, our increase Despite year-over-year. to some a with X.X% into caution latest representing take rate of

was marketplace as guidance year. EBITDA to net tech and adjusted we our product AI this XXXX these continued innovative capabilities deploy $X.X in quarter and result the of growth on increasing a now are Based in results, our million QX platform. First are every our geography, exciting the further we To driven for AI by trend, business innovations support enhance in revenue aspect of pipeline. continuing with Mondee's expansion

marketplace enhancing year-end near- we As our expanding mentioned travel achieving our when AI technology on leadership. profitability, our focused presenting and remain goals long-term results, XXXX maintaining of the and

me on Let provide this. a bit detail more

improving flow. optimization. way enhanced levels as First, ecosystem focused rates control transaction to profitability measures well free cost our and and volume on AI-supported achieving growth, sustained take remain implementing cash double-digit We as on

which detail more from in positive, million flow explain quarter. will were Jesus to As free prior the our increasing we led cash results cash $XX.X by

Second, we our we events travel in achieve revenue expanding are continue seeing mix. broadening packages, geographies to notable product mix. more good With and on from early marketplace our emphasis activities, while diversification across results

expanded packages and XX% our QX supports This of rate hotels as XXXX. to take diversification such components, mix XX% non-air our further XXXX, improvement. from QX During in product

in Third, technological AI. maintain leadership

our the train and deploy in travel year. capabilities more new continuing end-to-end the and comprehensive tuned and announcements innovate, to are second AI specific across for of We develop, features Stay exciting ecosystem. half

will Dullum, trends Officer, Jim? over Chief our some I and our underpinning who discuss Mondee and Operating the now results to Jim turn floor outlook. business initiatives

James W. Dullum

Thanks, hello, Prasad, everybody. and

Mondee well first enhancements. remained marketplace the and and transforming drivers very business positioned some rapidly volatile quarter. in the travel environment to Turning throughout

arm very us led the consumption XXXX continue headwinds international continued industry international benefiting pent-up demand the note, Mondee's demand strong market with On emerging East to first and with Asia peaking travel, last Middle good demand LATAM, regional Asia year handily from travel the and from anticipate quarter trends macro expected position We the conflicts. post-pandemic year Pacific. into some which is by growth a from this in through despite these emphasizes strong the of trends. macro

and supply this cost remains renovations growing facing side for Amidst challenges and while there and for demand, who airlines, shortages aircraft suppliers other for solve to upgrades, delivery trying hotels constraints capital are high delays. labor

well previously, effective in flourishes business volatility. options highlighted seeking have for model aligned we offerings. As full Travelers support conditions Mondee's very of and with such Mondee's service ecosystem

supply and These all While channels. are Mondee's motivating are volatile perishable suppliers these well marketplace. conditions capacity, on which suited can to create outcomes through to side, BXB AI-driven the travelers full-service more work

these future. the are These benefits with into consumer from include driven distribution Mondee's age being new demographic complemented Looking leisure by the younger trends or and provide are AI These sets. expanding which they emerging requirements macro work The emergence and such the that the -- benefit entertainment, macro persona tourism trends, trends as by fit traveler trends travel. great platforms of channels. and a age inspiration music, hybrid and trends are travel new persona Mondee

these us platform, perspective, at content localization and monetization gain refine interact additional scale, strategies. to we new AI valuable our with an we From as cohorts feedback allowing

also We continue our marketplace. enhancing

within content expanding the described, assisted on expansion. trillion-plus focusing and affiliated by Mondee travel added distribution market our Prasad As our is with steadily $X increasing market continually marketplace, its and share

airfares. short year, of previously XX% X as Mondee exclusively years net total the In revenues recall for of net almost You air-only discounted only mentioned. offered just revenue, quarter that first accounted may this ago,

components a Let's break non-air the bit down further.

at all only rise the up significantly ancillaries 'XX; transportation Mondee's expand X%. and and hotels These market, adjacent XX%, round rate. other included also fintech which markets but not addressable and in from QX total insurance, were SaaS XX% were to XX%, take from products X% up were Other, up was 'XX; contribute Packages QX X%; impressive

distribution through content more such effectively New experiences Mondee technology with AI channels this deploying continue partners. more and personalized we platform, the its will As localized distribution grow as our Age

travel and user group cultural a in continue expert-led and transactions is growth, increases with This we distribution, work corporate growing membership this our revenue closed to such net result platforms, of and beyond as offerings packaged exploration and hybrid organizations see the travel trips. customers. our pleasure-friendly Moreover, enterprise trends year-over-year

continued the pricing of operating transaction progress other and benefit brands partners with implementing our on we in further pricing of NDC make rate. included direct areas and and positive During hotel automation-led that take a with optimization our flow. and additional connections immediate deployment cash profitability effect airline quarter, flows, to and with number major These connections of distribution some

and synergies the front. integrations On

integration focused processes early has content is in lucrative lines, of and hotel results, all cost Finally, during while financial yielded we acquisitions on the the achieving hub advancing. through first cross-selling of seamless savings settlement synergies one strong global XXXX, content integration Along our these the X quarter, with under further consolidation opportunities.

levering made distribution has and also content country, of in integration cross-border the Mondee launched good May superior air content. X We XXXX, carrier air indicatively, and on year relationships flight-only our air of Brazil progress our on this

For the balance organic benefits. focusing of realizing and this we're on growth year, synergy

floor I review Jesus? financial Jesus, to of for a Mondee's our now performance CFO, yield the and outlook.

Jesus Portillo

Jim, you, hello, Thank and everyone.

on growth out our otherwise like all unless As to I point that over first results, I year-over-year indicated. a basis, are quarter rates would go

start highlights. me Let our financial with

and strong cash a EBITDA generate positive continue more generation, first revenue, noteworthy which around We will flow throughout materially performance as quarter free net detail. to was this I

transactions by in the ] transaction. growth price in per was carry share of a of from quarter, shareholder coming a XX% an expansion a [ This million up $XXX were bookings this our flights, point in which increase number gross driven big with that Our international lower X%.

with million. reach growth to net take This of revenue continued our result rate. the is $XX bookings, increased combined XX% gross Our net in revenue improvement in higher

Our was ahead up take rate our X.X% first expectations and for of quarter XX%. of this

the of of driven rate revenue and higher-margin products improvement in As including ancillary by quarters, services. with stream, growth diversification and mostly prior this fintech take was the

Turning now expenses. to

But marketing largest in was expense from XX%. a this sales Adjusted $X of million. and X% improvement The revenue, reductions drivers in marketing improved continue category, XX% net $X.X million terms. BXB and in and our improved BXC marketing up network marketing by to from credits distribution percentage for to as of optimization XX% be Our sales to EBITDA business. performance to main spend absolute our AI-driven

efficiencies continue was operating million, On million X% million acquisition our loss among of $XX.X and amortization, of margin depreciation $X.X as $X.X compensation, basis, Adjusted EBITDA million and loan of profitability. PIKed and of net million in others. prioritize a noncash also fees, of interest, $XX.X GAAP stock-based X.X% included $X.X we as fair $X.X to million improved which million from $X.X improve and costs, such origination and/or of of earnout to items liability, financing-related $X.X million amortization change nonrecurring value

company compared cash million and The respectively, of of to sheet. at balance had and in the quarter-over-quarter Looking a $XXX we our cash $XXX of flow-positive $XX.X and of the equivalents total XXXX. million million balance debt end in cash end At cash the at $XX of important the this our being is achieving $XX million, quarter, XXXX. for free QX December milestone by increase result million

improvement certain management a included same million a the capital cash improvement free were $XX.X initiatives. flows cash year. $XX.X last cash from million, in Free quarter working This and timing flows related

refinance duration the to loan and term our on increase of terms. further advanced have improved We

to We XXXX. to loans value the shareholders. lenders, our current an the expect our these amendment executed we meantime, adding maturity with have structure, capital to extending XX, optimize our In existing June

$XX quarter, first Based $XX net remain increase at million, reiterate improved and to the versus financial guidance. XXXX representing XXXX of of XX% an about between we year Turning and million XX% representing We $XXX this guidance midpoint. now increase on million, to be XXXX midpoint. measured to optimistic our EBITDA, XXXX now during adjusted revenues this our at million fiscal versus performance an the net revenue forecast our EBITDA our $XXX of adjusted measured

Jeff? turn let Jeff With this, for Q&A. it me now to back all

Jeff Houston

ready Thanks, Jesus. are questions Operator, we for now.

Operator

Jones Our question Nick from comes from [Operator JMP. Instructions] first today

Nicholas Jones

How transaction revenue we transaction second quarter, the coming traffic? down should increased you kind flights. should lines of growth? question. dynamic per then as on What's last think guys of And really how trajectory think up, the And I I about kind despite a have think that great short-haul spoke transaction? you kind of per about to revenue drive we of transaction

James W. Dullum

transaction it's a in per right? We've down. Jim. Nick, had that, bring Yes, of continuation is revenue Thanks which all, flights, question. good first of the do short-haul somewhat there of those international continued for growth

The also a factors well. have transaction. packages lower of There take a as rate but the price of are higher couple and even hotel-only transactions some other per are

also lower per that will moderation. down that of some component been there it with then overall So has that price metric. And transaction, blend third is the

a you and markets most If most IATA as you'll were some serve. that see published general particularly pricing example, regions, moderation numbers an we across look flight the recently at of in those

come to rate during sort that albeit higher had of that of down, blend announcements. caused has about we've the transaction the that because talked we So rate at trifecta a average take the

Nicholas Jones

And has for then been Abhi Great. out while. a

a kind is on You you you bit lot any the impact Can and now? across are for top it's impact enhancements line can now business, And on that's out platform. kind of of little product the guys either on engagement? been AI focused having quantify The or speak of a to way the there the margins?

Prasad Gundumogula

Nick, changes do have It's good that marketplace with Abhi the and and we that. learnings great we making. too are today, experience the in good early engagement had to

releasing in our half second feedback received customers all So we that next from our the and with of process in marketplace. great we are the the version

called to technologies. while are transforming everything But marketing, departments current Abhi time, and our the things with contact platforms and are project this [ the also world and such and sales with on and platform and revenue external these on a to industry At AI Infinity focus same working are to internally achieve savings we deploy disruptive the we we cost within the center ] using as working uptick. AI

financials that quarter to expect in half our second we impacting second year. -- So of sometime be the positively

on and to at good this at results and some time. that So on making great. expect see of of published And system focusing we are being point metrics point this than we deploying time, the then focusing better

James W. Dullum

that. to adding Just

what also in sales improvement want of to, actually and part by metrics you part internal AI Prasad our big a these driven was marketing ratio some of If referring solutions. is and our

Prasad Gundumogula

that expense being an information in that we we area Yes. pricing deploy to and other marketing platform. see marketing first That's areas our AI so by already as continue and in we through offered reaction deployed appropriate the

Operator

Aftahi is The next question Darren from MKM. Roth from

Darren Aftahi

shortfall periods kind on and target are up kind transactions your XQ, second, for of the you machine be of were follow performance as AI about just impact -- commenting look curious bookings. halfway your is short-haul the you the kind payback with curious how what thing? how Can Is of marketing terminal I'm between I question about I'm comments of long flights marketing. over, business? kind just your performance you're and almost into your on of this those? And learning and on to objectives delta and going using and kind then a

And cash pretty number. EBITDA. nice then big capital reported your delta there's some flow really what's lastly, maybe from for I with Jesus, ops appreciate nuances. It's a working from

how of kind think So from forward? kind cash normalization of do we going about flow ops of

Prasad Gundumogula

So effect sales we revenue for and One as is for of marketing using the marketing, in optimization as campaigns far are areas. the the AI using so involvement the that ML. X on management these and major

well at right great the feeded as right the a into is being and promotions. information prices We the us which platform, as times are helping set to the having

are campaigns platform, how with which the proper and levels rating our revenue with and and real-time is So to algorithms placed to the -- both sales us AML corrections that fine-tuned also set our and the being for marketing of the a be these tools we and management And marketing, in the through BXB our that platform BXE or to made being helps us businesses. middle. marketing platforms analyze performance AI what connected pricing AI for our helps

James W. Dullum

Darren, it's impact second the short-haul Jim. On question on flights. of your

while. you'll on mentioned dynamic part for You'll ticket that continue continue are to that see all that the a that little fronts actually reducing see average dynamic X price, between of we

what's that Pacific And to If it, Asia the forth. lot flights But impacting we're That's started the see you that of normalize. still back driving still when and up prices. of about lot of effect our steam kind being we going traffic, rate now, ATPs, of more average a of recovery we're it's our and a higher the that comparisons think at a that the the to be short-haul there about and comparatively started it. year, will short-haul picked half toward so transaction think right looking of those

Jesus Portillo

and And your question. Darren, you question much your so I'll address for thank

pointed were mean, this flow of We working receivables. free in right? I yes, was as We different our very anticipated obviously, quarter, out, cash our quarter, So you in collections positive. first factors

interest, remain a expect every certain also terms supplier part contributed of improved and We We we that picked payment bigger as enormously. as same. well don't our to the also quarter

cash We fluctuations cash But for flow to is overall, flow on to expect some our going we behave. full free the how expectation maintain free provide XXXX. positive the

Operator

next The Securities. from [Operator Instructions] is from Mike Grondahl Northland question

Mike Grondahl

travel Any [indiscernible]? regions out to below call or for above plan

James W. Dullum

Mike, the the of the strength it's Jim. ago, pretty in actually is and conflict that should markets a -- comparatively bit The as That so. also pickup again, has world good and market in have places for do Asia a little somewhere disruption see causes continue area all been because both obviously, market of seen We've the bit that mentioned Middle I where pressure this that an then uplift Latin there Again And some some robust in East mentioned, there's of been to just continuing. lot in Pacific that expected positive that travel. and in a of the interesting as bifurcation whole remained time year. very America. good being a it's you is

is expect the general certainly but I very really very any kind. to and remain can't there any that a up, remainder are the the are of we're still of good segments year. markets of lot strong think trends that for of those. softening where that we are of and market The seeing outlook for

Michael Grondahl

it. Got

XX% is revenues you a went increase? Were by from surprised such Second of fully to XX%. non-air plan? kind just or Or guys that of 'XX net question, large non-flight part the

Jesus Portillo

-- we I we you we always at future, quarter bit say expected, that about every also our our also was a what rate is little expectation. why look air it expect in of Yes. we this When around time be our XX%. mean ahead take which ahead to was of talk that

expectations. achieved we ahead bit a that our So of little already

than we thought. bit So what a better little

Michael Grondahl

what's that As year of continuing Got kind out it. your And look or on you do terms in you growing the just or same a outlook air, of revenue? see of kind net for kind X, of trend?

Jesus Portillo

business XX% that continue we now, in our air. perspective with Right same of being of around

So we're investing.

As strong we said, flights. pushing we're and forward short-haul in international our

know. hotels, So there will to push cruise air. will in you a And lines, packages be as be component that continue categorized we as and

Orestes Fintiklis

And may Mike, I more this add Orestes. point one is there.

choosing we now positive are us because because package, we transaction this basically, -- customer the hotel some many the another was package goes a classified the the customers to a for right? and higher are before right, business, giving package As air component, what are is take their them same to of inside option, book as to our to flight of also and So rate giving which option is the our [indiscernible].

Michael Grondahl

asking category, it. that it. that if kind ago I have of that air the be look steep quarter, really what revenue, year XX% revenues And considering from putting just it -- to is, a it you drop. non-air net Got increased a at -- packages fair. the it's been package That's this I was without in guess in would Got would interesting reason that's

of characterized we as part So could what a air package of really such -- you're seen have drop. just then is and that wouldn't saying is kind be large

Jesus Portillo

well. we been it's continue of the one some as of been profitability we've the been and other lucrative Yes, reason. also critical those expanding more reducing of on reasons. customers, of the our in that's mean as Also we've some I businesses,

the in growing lucrative most way continue possible. to prefer we profitable So and

Operator

conclude. back to no have further like I'd to hand to questions. Jeff We

Jeff Houston

quarter was XXXX to operator, tuned transcript. whether first thanks in for replay or live, call, and earnings who it you, the our everyone Thank

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

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

Operator

does you, This today's Thank call. conclude everyone.

You the your may now you. enjoy lines, day. disconnect rest of Thank your and

Mondee (MOND) 10 May 242024 Q1 Earnings call transcript