After promising profitability by next year, Wheels Up will post its 2022 fourth-quarter financials on March 9
Wheels Up announced this morning that it will release its fourth quarter 2022 financial results before the market opens on Thursday, March 9, 2023.
Management will host a conference call at 10:00 am ET on that day to discuss the results.
The results will be closely watched for the third-largest U.S. operator based on charter and fractional flights.
Since its founding in 2013, the company has yet to turn a profit.
However, management said it is now focused on changing that by 2024.
“We are implementing a streamlined organizational structure, with senior leadership focused on driving key initiatives at an accelerated pace, which is a significant step in delivering profitable growth and an enhanced experience for our members and customers,” Chairman and CEO Kenny Dichter said in announcing the Q3 results.
Q3 revenues increased to $420 million while net loss jumped to $86 million.
Year-to-date revenues grew to $1.17 million through last September, with full-year 2023 revenues expected to fall between $1.55-$1.58 billion.
Cash and Cash Equivalents increased from $427 million at the end of Q2 to $545 million, including net proceeds of $259 million via equipment notes.
New CFO Robert Smith said during the call announcing the Q3 financials, “As a result of building our business via a number of acquisitions and the manual nature of a number of our processes, our cost base is higher than it needs to be.”
He said the company plans to reduce selling, general, and administrative costs from 16% to the low double digits during 2023.
The company has over 12,000 members.
It had previously pursued a strategy of building scale through acquisitions but is now turning to achieve profitability.
In November, it announced its third price increase in 12 months.
It is also investing in technology to create a digital marketplace.
Wheels Up shares were trading at $1.19 late morning, between their 52-week high of $4.03 and low of $0.98. It traded as high as $15 per share after its July 2021 IPO.
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