UP Earnings Prediction
The chart below shows how UP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UP sees a +15.61% change in stock price 10 days leading up to the earnings, and a +7.33% change 10 days following the report. On the earnings day itself, the stock moves by -3.17%. This data can give you a slight idea of what to expect for the next quarter's release.
UP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
193.90M
-39.42%
-1.21%
Gross Margin
7.51%
410.88%
-234.11%
Operating Margin
-21.35%
16.92%
-40.40%
Net Margin
-29.77%
-34.21%
-39.74%
EPS
-0.08
-97.72%
-42.86%
No Data Available
UP Earnings Analysis
Wheels Up Experience Inc. Corporation (UP.N) Earnings Conference Call
Positive
Revenue Stabilization Recovery: 1. Revenue Stabilization: Wheels Up reported third quarter revenue of $194 million, stabilizing after seven consecutive quarters of decline, indicating a strong recovery trajectory.
Contribution Margin Improvement: 2. Improved Contribution Margin: The adjusted contribution margin reached 14.8%, nearly doubling from 7.8% in the second quarter, marking the highest level since going public in 2021.
Cash Burn Reduction: 3. Significant Reduction in Cash Burn: Operating cash flow improved by 44% sequentially, resulting in a cash outflow of only $15 million compared to $250 million a year ago, showcasing effective cash management.
Block Sales Surge: 4. Surge in Block Sales: Prepaid block sales surged by 86% year-over-year to $147 million, reflecting strong traction with corporate customers and a robust partnership with Delta Airlines.
Fleet Modernization Initiative: 5. Fleet Modernization Strategy: The company announced a commitment to acquire 17 Embraer Phenom 300 and 300E aircraft, positioning itself to become the largest provider of Phenom aircraft on an on-demand basis globally.
Negative
Membership Revenue Decline: 1. Declining Membership Revenue: Membership revenue decreased due to a streamlined product portfolio, contributing to a 20% year-over-year decline in private jet gross bookings.
Adjusted EBITDA Loss: 2. Significant Adjusted EBITDA Loss: The company reported an adjusted EBITDA loss of $20 million for Q3 2024, despite a nearly 50% sequential improvement, indicating ongoing financial challenges.
Flat Revenue Performance: 3. Flat Revenue Performance: Revenue for Q3 2024 was $194 million, roughly flat sequentially, reflecting the impact of previous operational changes and a lack of growth in the current year.
On-Time Performance Issues: 4. On-Time Performance Below Target: On-time performance was reported at 82%, falling short of the target and negatively impacted by weather and air traffic control delays.
Significant GAAP Net Loss: 5. High GAAP Net Loss: The GAAP net loss for the quarter was $58 million, although it improved by 40% sequentially, highlighting ongoing financial difficulties despite some operational improvements.
UP FAQs
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UP Earning Call Sentiment
Wheels Up Experience Inc. (UP) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
UP.N
-4.7%Positive
The strategic partnership with Delta Airlines and fleet modernization plan are strong positives, likely boosting stock price. Despite operational risks and financial challenges, the anticipated positive adjusted EBITDA and improved liquidity position are promising. The revolving credit facility and Delta's support enhance financial stability. The market cap suggests moderate stock reaction, hence a positive prediction of 2% to 8%.
