Mondee Q2 2023 Results: Disrupts Travel With Revolutionary Ai Platform Delivers Exceptional Growth

(MENAFN- GlobeNewsWire - Nasdaq) - Q2 23 Gross Revenue of ~$708M1, 112% of Q2 2022
- Q2 23 Net Revenue of ~$56.8M1, 124% of Q2 2022
- Q2 23 Adjusted EBITDA of $4.4M1, 118% of Q2 2022
- Increases 2023 Net Revenue Guidance to $245-$250M, representing 155% of 2022 at midpoint

AUSTIN, Texas, Aug. 15, 2023 (GLOBE NEWSWIRE) -- mondee holdings, inc. (Nasdaq: MOND) (“Mondee” or the“Company”), the high-growth, travel technology company and marketplace, with a portfolio of globally recognized platforms in the leisure and corporate travel sectors, today announced second quarter business milestones and financial results for the period ended June 30, 2023.

“Mondee is once again disrupting the travel market through innovation. We are thrilled that on the first anniversary of our NASDAQ public listing, Mondee released the first fully integrated AI Travel Marketplace, opening a world of new market opportunities and solidifying our status as pioneers in the travel industry. As trailblazers, we have broadened our target audience to encompass the vibrant ecosystem of travel social influencers and freelancers as well as the tech savvy Millennial and Gen Z travelers. Mondee's strong financial performance in the second quarter of 2023, amid the launch of this transformational tech platform, exemplifies our commitment to growth with innovation and excellence. Net revenue of $56.8 million was 124% of second quarter 2022 while our take rate increased to 8.0% from 7.2% over the same period,” remarked Prasad Gundumogula, Founder, Chairman, and Chief Executive Officer.

“With our next-generation AI platform and marketplace in place, complemented by our expanding content and distribution channels, we are now perfectly positioned to launch a series of robust modern marketing campaigns with the help of our enhanced world-class marketing team. This strategic push aims to fully capitalize on our disruptive market position as we approach 2024,” he continued.

Second-Quarter 2023 Financial Highlights 1

• Gross revenue of $708 million for the quarter was 112% of $635 million in the second quarter of 2022 (“Q2 22”).
• Net revenue of $56.8 million for the quarter was 124% of $45.7 million in Q2 22.
• Net Loss of $(14.6) million for the quarter, after approximately $14.0 million of non-cash and/ or non-recurring items2, including stock-based compensation, amortization and tax provisions, and one-time marketing costs associated with the launch of the AI platform, compared with Q2 22's net loss of $(2.1) million.
• Adjusted EBITDA of $4.4 million for the quarter was 118% of $3.8 million in Q2 22, a strong improvement despite incurring approximately $1 million of primarily one-time marketing costs associated with the launch of Mondee's new AI Travel Marketplace.

Financial Summary and Operating Results 1,3

	For the quarter ended June 30		Year-Over-Year Change
	2Q23		2Q22		$	%
Transactions	721,464		549,729		171,735	31%
Revenue, Gross	707,766		634,695		73,071	12%
Revenue, Net	56,771		45,656		11,115	24%
Net Income (Loss)	(14,608)		(2,113)		(12,495)	NA
Loss per share (EPS)4	(0.22)		(0.03)		(0.19)	NA
Adjusted EBITDA	4,438		3,756		682	18%
Adjusted Net Income (Loss)	(4,657)		(2,895)		(1,762)	NA
Adjusted EPS	(0.05)		(0.03)		(0.02)	NA

	For the six month ended June 30		Year-Over-Year Change
	2023		2022		$	%
Transactions	1,387		1,013		373,977	37%
Revenue, Gross	1,407,002		1,114,289		292,713	26%
Revenue, Net	106,700		84,723		21,977	26%
Net Income (Loss)	(27,523)		(9,104)		(27,523)	NA
Loss per share (EPS)4	(0.43)		(0.15)		(0.28)	NA
Adjusted EBITDA	8,595		6,134		2,461	40%
Adjusted Net Income (Loss)	(10,066)		(6,586)		(3,480)	NA
Adjusted EPS	(0.11)		(0.15)		0.04	NA

1 Note that Mondee's first and second quarter 2022 financial results were prior to the Company's listing on the NASDAQ.
2 Net income (loss) included approximately $14.0M of non-cash and/or non-recurring items, such as $3.8M of depreciation and amortization, $4.8M of stock compensation expense, $2.0 million of tax provisions, and $0.5M of change in fair value of acquisitions, $0.3M of M&A costs, non-cash finance cost of $1.5 million, and one-time marketing costs associated with new AI platform launch of approximately $1 million.
3 In $ thousands except for EPS
4 Net loss per share (EPS) for 2023 excludes cumulative dividends allocated to preferred stock holders

Financial Commentary

“We generated strong results in the second quarter as Mondee continues to expand geographically, leverage our enhanced technology, and capitalize on the international travel market recovery. Net revenue of $56.8 million was 124% of the prior-year quarter, on approximately $708 million of gross revenue. Our take rate continued to expand, closing at 8.0%, up from 7.2% in the prior-year quarter,” said Jesus Portillo, Chief Financial Officer of Mondee.

“Equally important is Mondee's continued growth of adjusted EBITDA, which increased to $4.4 million in the second quarter of 2023, 118% over the same period last year. To support the adoption of our AI Travel Marketplace launch, we accelerated approximately $1 million of investments in the quarter that were initially planned for 2024. We expect these investments to increase our market share and enhance growth over time. Furthermore, our balance sheet remains strong with approximately $58 million in cash and $153 million debt,” continued Mr. Portillo.

Financial 2023 Outlook
Mondee is increasing 2023 net revenue guidance by $5 million and expects to continue delivering profitable growth. The Company is providing the following guidance for its first full year as a public company, ending December 31, 2023. These projections include both organic and inorganic growth from Mondee's recent acquisitions.

• The Company projects that net revenue for the 2023 fiscal year will be in the range of $245 million to $250 million, representing 155% of 2022 net revenue, measured at the midpoint.

Mondee has recently launched an innovative AI Travel Marketplace targeting a much wider audience of travel experts including social media influencers and freelancers. The Company believes its recent tech innovations will accelerate Mondee's revenue and market share in 2024 and extend its leadership in the travel AI industry. To facilitate this adoption, one-time marketing and personnel costs of approximately $20 million are estimated to be required over the remaining year in order to maximize and accelerate the adoption of this revolutionary platform. Therefore, it is providing the following modified adjusted EBITDA guidance:

• The Company projects that adjusted EBITDA for the 2023 fiscal year will be in the range of $25 million to $30 million, representing around 250% of 2022 adjusted EBITDA, measured at the midpoint.

Second Quarter 2023 Business Highlights and Subsequent Events

• Launched new Mondee Marketplace featuring AI assistant Abhi. On its one-year anniversary of trading on the Nasdaq, Mondee launched the industry's first fully integrated and personalized AI Travel Marketplace, which the Company believes will transform the travel marketplace due to a range of innovative features. Mondee is changing the travel industry by providing travel influencers, local experts and advisors with unprecedented access to extensive travel content in its unified travel marketplace. The new marketplace features the latest cutting-edge technology, such as Abhi, the AI travel planning assistant, to create and deliver personalized travel experiences conveniently. For travelers, Mondee has crafted immersive travel experiences using intuitive self-service exploration tools driven by AI. In addition, the Company connects travelers with on-demand local experts from around the world. Through Mondee's AI-driven marketplace, these experts tap into global knowledge, adding a unique touch to travelers' adventures.

• Added to the Russell 2000 as the largest travel tech addition for 2023. The Company believes this milestone underscores its strong fundamentals and business performance, reaffirming Mondee's role as a leader in the travel technology industry. This recognition is expected to support the Company's endeavors in enhancing long-term shareholder value, raising awareness of Mondee among the investment community, bolstering stock volume and liquidity, and diversifying the Company's shareholder base.

• Acquired Skypass, a prominent global travel company for corporations and small and midsize businesses (SMBs). With a 35-year history of operations, Skypass provides corporate, leisure, and humanitarian travel services. Headquartered in the Dallas, Texas area, it also has offices in Austin, Texas, along with international offices in LATAM, Mexico, Canada, and India, serving both personnel and affiliates from international corporations and SMBs. Skypass's comprehensive range of services span air travel, lodging, cruises, vacation packages, recreational travel, and humanitarian voyages, addressing the needs of personnel, associates, and a broad spectrum of retail travelers. Skypass achieved a gross revenue of $45 million and adjusted EBITDA of $4 million, representing a margin on net revenue of approximately 60%, in 2022. At closing, Mondee paid a consideration of approximately $15 million, comprised of cash and Mondee common stock priced at $10 per share. There is a potential future earn-out in Mondee common stock. Mondee's strategic vision involves leveraging its expansive network and advanced technology, while optimizing revenue generation, introducing FinTech solutions, and streamlining global operations for enhanced top-line and bottom-line performance.
  Mondee intends to continue its disciplined M&A strategy in 2023 by adding valuable product and geographical footprint.

• Completed successful secondary offering of existing shares of $52.5 million. The secondary offering w as a step forward in diversifying Mondee's shareholder base with an additional 43 institutional investors and creating an environment that fosters investor participation. Moreover, with management retaining over 40% ownership of shares, management's interests remain truly aligned with those of Mondee's valued investors.
  
• Welcomed Deloitte & Touche LLP ("Deloitte") as Mondee's audit firm. Effective July 6, 2023, Mondee has engaged Deloitte as the Company's independent registered public audit firm. The company is excited about this partnership and the capabilities and experience that Deloitte will contribute to Mondee.

• Expanded Marketing and Business teams with seasoned talent from leading tech and travel companies. Miten Mehta, previously a leader at Google, joined Mondee's executive team to oversee AI strategic planning and initiatives. With a professional background of over 25 years including a wealth of experience in the AI field, Miten will play a crucial role in the further development of Mondee's AI marketplace. He brings a growth-focused approach that emphasizes client service, revenue generation, and results-driven leadership.
  Furthermore, former Accenture executive Geetika Gupta, who led a distributed workforce of 22,000 individuals across geographies including the United States, India, Singapore, and Malaysia, joined Mondee as Chief People Officer. Geetika intends to apply her HR transformation experience consulting for Fortune 100 projects to aid in scaling Mondee's infrastructure.
  Under CMO Kymber Lowe's leadership, the marketing team welcomed 14 new members, with the intent to drive substantial growth of the Company over the coming years. The team now includes marketing, brand, digital, and social-media experts from companies such as Google, Amazon and Microsoft, including Rachel Van Nortwick and Kristi Berg. The marketing team has launched a set of marketing initiatives around Abhi, Mondee's fully integrated AI assistant, to promote Mondee's AI Travel Marketplace to customers and prospects including travel experts, influencers, travelers, organizations and SMBs.

Conference Call Information

Mondee will host a conference call Tuesday, August 15 at 5:30 a.m. (PT) / 7:30 a.m. (CT) / 8:30 a.m. (ET) to discuss its financial results with the investment community. A live webcast of the event will be available on the Mondee Investor Relations website at . A live dial-in is available domestically at (833) 470-1428 and internationally at +1 (404) 975-4839, passcode 880245.

A replay will be available on Mondee's Investor Relations website and an audio replay will be available domestically at (866) 813-9403 or internationally at +1 (929) 458-6194, passcode 629734, until midnight (ET) September 4, 2023.

About Mondee

Established in 2011, Mondee is a travel technology company and a modern travel marketplace based in Austin, Texas. The Company operates 17 offices across the United States and Canada and has core operations in India, Thailand, and Greece. Mondee is driving change in the leisure and corporate travel sectors through its broad array of innovative solutions. Available both as an app and through the web, the Company's platform processes over 50 million daily searches and generates a substantial transactional volume annually. The Mondee Marketplace includes access to Abhi, the most powerful and only fully-integrated AI travel planning assistant in the market. Mondee's network includes approximately 65,000 leisure travel advisors, freelancers and influencers, 500+ airlines, and over one million hotels and vacation rentals, 30K rental car pickup locations, 50+ cruise lines. The Company also offers packaged solutions and ancillary offerings that serve a global customer base.

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