• Mondee Announces Third Quarter 2022 Financial Results

    ソース: Nasdaq GlobeNewswire / 10 11 2022 06:00:00   America/New_York

    - Gross Revenue of $600M Increased 172% Year-Over-Year
    - Net Revenue of $39.5M Increased 73% Year-Over-Year
    - Adjusted EBITDA of $3.7M Increased by $3.8M from $(0.1)M in the Same Quarter Last Year
    - Raises 2022 Annual Guidance of Net Revenue to $155-160M
    - Completed $85 Million of Preferred Equity to Support Expansion Strategy
    - Retired all 12M Public Warrants via Tender Process

    AUSTIN, Texas, Nov. 10, 2022 (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 and brands in the leisure and corporate travel sectors, today announced preliminary financial results for the third quarter ended September 30, 2022. Mondee completed a business combination with ITHAX Acquisition Corp., a Cayman Islands exempted company (“ITHAX”), on July 18, 2022, and since July 19, 2022, the Company has been trading on The Nasdaq Stock Market (“Nasdaq”) under the ticker symbol “MOND”.

    “We are excited by yet another outstanding quarter during which net revenue reached 150%1 of the pre-pandemic 3Q19 actual net revenue, even though international travel, which represents a substantial part of our business, has recovered to only 67% of its pre-pandemic levels,” said Prasad Gundumogula, Chairman, Chief Executive Officer, and founder of Mondee. “This performance is a testament to our impressive growth in market share and take rate, driven by transformational technology, content expansion such as hotels, and diversified revenue streams primarily from ancillaries and fintech solutions,” continued Mr. Gundumogula.

    Third Quarter 2022 Financial Highlights2

    • Gross revenue of $600.2 million was up 172% year-over-year as compared to $220.8 million in the third quarter of 2021 (“3Q21”).
    • Net revenue of $39.5 million was up 73% year-over-year as compared to $22.9 million in 3Q21.
    • Net Loss was $64.7 million3 (primarily $59 million of one-off and/or non-cash items associated with the ITHAX business combination), a decrease of $60.5 million as compared to a 3Q21 Net Loss of $4.3 million.
    • Adjusted EBITDA was $3.7 million, an improvement of $3.8 million as compared to a 3Q21 Adjusted EBITDA of $(0.1) million.

    Financial Summary and Operating Results2

    Quarterly Comparison

      For the quarter ended September 303,5 Year-Over-Year Δ  
     3Q22 Actual  3Q21 Actual   %
    Transactions 591,760    290,151    301,609 104%
    Revenue, Gross$600.2   $220.8   $379.4 172%
    Revenue, Net$39.5   $22.9   $16.6 73%
    Net Income (Loss)$(64.7) 4    $(4.3)  $(60.5)NM
    Loss per share (EPS)$(0.88) 4   $(0.07)  $(0.81)NM
    Adjusted EBITDA$3.7   $(0.1)  $3.8 NM
    Adjusted Net Income (Loss)$(5.8)  $(6.4)  $0.6 10%
    Adjusted EPS$(0.06)  $(0.07)  $0.01 10%

    Nine-Month Comparison

      For the nine months ended September 303,5 Year-Over-Year Δ
     2022 Actual 2021 Actual   %
    Transactions 1,604,420   930,577   673,843  72%
    Revenue, Gross$1,710.2  $604.3  $1,105.9  183%
    Revenue, Net$119.8  $59.9  $59.8  100%
    Net Income (Loss)$(73.8) 4  $(29.7) $(44.1) (149)%
    Loss per share (EPS)$(1.13) 4  $(0.49) $(0.64) (131)%
    Adjusted EBITDA$10.4  $(3.9) $14.4  NM
    Adjusted Net Income (Loss)$(13.8) $(22.5) $8.7  39%
    Adjusted EPS$(0.15) $(0.24) $0.09  39%

    The 3Q19 reported net revenue excludes acquisitions completed after that date in 4Q19 and 2020.
    2 Results are preliminary and subject to final review by Mondee’s auditors.
    In millions, except transactions, per share data, and percentages.
    3Q22 GAAP expenses include $55M non-cash one-time stock earnouts related to the ITHAX business combination and management restrictive stock units, $2.5M one-time restructuring charges, and other non-recurring expenses.
    Note that Mondee’s 2021, first quarter 2022, and second quarter 2022 financial results do not give effect to the business combination with ITHAX.

    Financial Commentary

    “We are thrilled to have fortified our balance sheet, exiting the quarter with cash reserves of $114 million. These funds will serve to accelerate our accretive M&A strategy and expand our fintech offerings. We also successfully completed a tender offer for our public warrants, resulting in a much more simplified capital structure that focuses long-term investors on our common equity,” said Dan Figenshu, Chief Financial Officer of Mondee. “In addition, we took the opportunity to deploy our next-gen technology, achieving cost-efficiencies by streamlining our call centers in India. While these actions carry some one-time costs, we expect them to improve Mondee’s profitability,” continued Mr. Figenshu.

    Financial 2022 Outlook

    Mondee is providing the following projections for its full-year ending December 31, 2022. We expect to continue delivering profitable growth despite a backdrop of global inflation and an evolving travel recovery.

    • Net Revenue is projected to be in the range of $155 million to $160 million, representing year-over-year growth of 70%, measured at the midpoint.

    • Adjusted EBITDA is projected to be in the range of $15 million to $22 million, representing year-over-year growth of 436% and a margin of 12%, measured at the midpoint.

    Third Quarter 2022 Business Highlights

    • Raised $85 million of preferred equity growth capital, facilitating Mondee’s execution of its M&A strategy without issuing dilutive equity or a hybrid instrument that would ultimately dilute our common shareholders.

    • Purchased all of Mondee’s approximately 12 million public warrants via tender offer process and retired these public warrants, which limits a source of potential dilution of Mondee’s common equity.
    • Having expanded access through multiple closed-user groups to over 125 million members, the Company is now focusing on expanding the adoption rate and increasing its new revenue streams.
    • During the 2022 travel-recovery, Mondee launched agile, targeted marketing initiatives to capitalize on the earliest opening international markets. Europe represented 26% of transactions in the third quarter, up from 24% last quarter and 15% in third quarter of 2019.
    • During this quarter, the Company took the opportunity to deploy its next-gen technology, achieving cost-efficiencies by streamlining its call centers in India, which led to $2.5 million of one-time restructuring costs during the third quarter. It is expected that implementing this next-gen technology will improve the profitability of the Company going forward.

    Conference Call Information

    Mondee will host a conference call today at 5:30 a.m. (PT) / 7:30 a.m. (CT) / 8:30 a.m. (ET) to discuss its preliminary financial results with the investment community. A live webcast of the event will be available on the Mondee Investor Relations website at http://investors.mondee.com. A live dial-in is available domestically at (844) 200-6205 and internationally at +1 (929) 526-1599, passcode 442743.

    A webcast replay will be available on the Mondee Investor Relations website and an audio replay will be available domestically at (866) 813-9403 or internationally at +44 (204) 525-0658, passcode 946073, until midnight (ET) on December 1, 2022.

    About Mondee

    Mondee is a leading travel technology, service, and content company driving disruptive, innovative change in the leisure and corporate travel markets. The Company delivers a revolutionary technology platform of SaaS, mobile, and cloud solutions to a global customer base, processing over 50 million daily searches and multi-billion dollars of transactional volume yearly. Mondee is connecting a network of 50,000+ leisure travel advisors and gig economy workers to 500+ airlines and over 1 million hotel and vacation rentals, packaged solutions and ancillary offerings. Founded in 2011, Mondee is headquartered in Austin, Texas, with 17 offices in the USA and Canada, and operations in India, Thailand, and Ireland. On July 18, 2022, Mondee completed a business combination with ITHAX Acquisition Corp., a former Cayman Islands exempted company, and has been trading as a publicly listed company on Nasdaq since July 19, 2022 under the ticker symbol “MOND”. For more information, please visit https://www.mondee.com.

    Non-GAAP Measurements:

    In addition to disclosing financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release and the accompanying tables include adjusted EBITDA non-GAAP net income, and non-GAAP EPS.

    These non-GAAP financial measures are not calculated in accordance with GAAP as they have been adjusted to exclude the effects of stock-based compensation expenses, provision for income taxes, and the impacts of depreciation and amortization. We define Adjusted EBITDA as net loss before depreciation and amortization, provision for income taxes, interest expense (net), other income net, stock-based compensation, and gain on forgiveness of PPP loans. Non-GAAP net income (loss) is defined as net loss before the impacts of amortization of intangibles, provision for income taxes, stock-based compensation, and one-time items. Non-GAAP net income (loss) per share is defined as non-GAAP net income (loss) on a per share basis. See "Reconciliation of GAAP to Non-GAAP Financial Measures" for a discussion of the applicable weighted-average shares outstanding.

    We believe these non-GAAP financial measures provide investors and other users of our financial information consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our results of operations. With respect to adjusted EBITDA and non-GAAP net loss/ income, we believe these non-GAAP financial measures are useful in evaluating our profitability relative to the amount of revenue generated, excluding the impact of stock-based compensation expense and other one-time expenses. We also believe non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics eliminate the effects of stock-based compensation, which may vary for reasons unrelated to overall operating performance.

    We use these non-GAAP financial measures in conjunction with traditional GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, and to evaluate the effectiveness of our business strategies. Our definition may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish this or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, nor superior to or in isolation from, measures prepared in accordance with GAAP.

    These non-GAAP financial measures may be limited in their usefulness because they do not present the full economic effect of our use of stock-based compensation. We compensate for these limitations by providing investors and other users of our financial information a reconciliation of the non-GAAP financial measure to the most closely related GAAP financial measures. However, we have not reconciled the non-GAAP guidance measures disclosed under "Financial Outlook" to their corresponding GAAP measures because certain reconciling items such as stock-based compensation and the corresponding provision for income taxes depend on factors such as the stock price at the time of award of future grants and thus cannot be reasonably predicted. Accordingly, reconciliations to the non-GAAP guidance measures is not available without unreasonable effort. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view non-GAAP net loss/ income and non-GAAP net loss/ income per share in conjunction with net loss and net loss per share.

    Operating Metrics:

    This press release also includes certain operating metrics that we believe are useful in providing additional information in assessing the overall performance of our business.

    Transactions are defined as the aggregation of transactions handled by our platform between a third party seller or service provider and the ultimate consumer. A single transaction could include an airline ticket, a hotel or hospitality accommodation, and any number of ancillaries offered on the platform. We generate revenue from service fees earned on these transactions and, accordingly our revenue increases or decreases based on the increase or decrease in either or both the number or value of transactions we process. Revenue will increase as a result of an increase in the number of customers using Mondee’s platform and/or as a result of an increase in service fees from higher value services offered on the platform.

    Forward-Looking Statements:

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by words such as: “believe,” “can”, “"may,” “expects,” “intends,” “potential,” “plans,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding the Company’s future growth, performance, business prospects and opportunities, strategies, expectations, future plans and intentions or other future events are forward looking statements. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements.

    Management believes that these forward-looking statements are reasonable as and when made. However, the Company cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the ability to implement business plans, forecasts, and other expectations after the recently completed business combination between ITHAX Acquisition Corp. and Mondee Holdings II, Inc., the outcome of any legal proceedings that may be instituted against the Company or others and any definitive agreements with respect thereto, the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees, the ability to maintain Nasdaq’s listing standards, and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 20, 2022, the registration statement on Form S-1 declared effective by the SEC on October 12, 2022 and in the Company’s subsequent filings with the SEC. There may be additional risks that the Company does not presently know of or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements.

    Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. In light of the significant uncertainties in these forward-looking statements, you should not rely upon forward-looking statements as predictions of future events. Except as required by law, Mondee undertakes no obligation to update publicly any forward-looking statements for any reason.

    MONDEE HOLDINGS, INC.

    Condensed Consolidated Balance Sheets
    (In thousands, except stock and par value data)

     September 30,
    2022
     December 31,
    2021
    Assets(Unaudited)  
    Current assets:   
    Cash and cash equivalents$105,228  $15,506 
    Restricted short-term investments 8,878   8,484 
    Accounts receivable, net of allowance of $5,144, and $5,005 as of September 30, 2022 and December 31, 2021, respectively 25,751   10,178 
    Contract assets, net of allowance of $1,000 as of September 30, 2022 and December 31, 2021 6,570   3,935 
    Prepaid expenses and other current assets 4,803   2,588 
    Total current assets$151,230  $40,691 
    Property and equipment, net 10,635   8,874 
    Goodwill 66,420   66,420 
    Intangible assets, net 58,955   63,708 
    Loan receivable from related party    22,054 
    Operating lease right-of-use assets 2,519    
    Other non-current assets 2,022   1,588 
    TOTAL ASSETS$291,781  $203,335 
    Liabilities, Redeemable Preferred Stock and Stockholders’ Deficit   
    Current liabilities   
    Accounts payable 37,894   19,529 
    Deferred underwriting fee 600    
    Amounts payable to related parties    716 
    Paycheck Protection Program (PPP) and other government loans, current portion 57   338 
    Accrued expenses and other current liabilities 23,493   10,354 
    Deferred revenue 6,696   6,450 
    Long-term debt, current portion 9,382   11,063 
    Total current liabilities$78,122  $48,450 
    Deferred income taxes 1,204   512 
    PPP and other government loans excluding current portion 176   1,915 
    Warrant liability 502    
    Long-term debt excluding current portion 125,137   162,170 
    Deferred revenue excluding current portion 12,384   14,288 
    Operating lease liabilities excluding current portion 1,826    
    Other long-term liabilities 2,709   2,825 
    Total liabilities$222,060  $230,160 
    Commitments and contingencies (Note 10)   
        
    Redeemable Preferred Stock   
    Series A Preferred stock - 85,000 authorized, $0.0001 par value, 85,000 shares issued and outstanding as of September 30, 2022 79,559    
        
    Stockholders' deficit:   
    Common stock – $0.0001 par value; 500,000,000 and 1,000 shares authorized as of September 30, 2022 and December 31, 2021, respectively; 75,766,160 and 1 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 7    
    Shareholder receivable (20,336)   
    Additional paid-in capital 274,951   163,464 
    Accumulated other comprehensive loss (603)  (272)
    Accumulated deficit (263,857)  (190,017)
    Total stockholders’ deficit$(9,838) $(26,825)
    TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT$291,781  $203,335 
            

    MONDEE HOLDINGS, INC.

    Condensed Consolidated Statements of Operations
    (In thousands, except stock and per share data)
    (unaudited)

     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
      2022   2021   2022   2021 
    Revenues, net$39,466  $22,870  $119,769  $59,921 
    Operating expenses:       
    Marketing expenses 24,298   13,446   73,316   34,521 
    Sales and other expenses, including non-employee stock-based compensation of $33, $6, $39, and $8 respectively 3,166   2,083   9,544   6,420 
    Personnel expenses, including stock-based compensation of $54,712, $76, $54,867, and $3,845 respectively 59,307   5,253   70,631   17,915 
    General and administrative expenses 2,337   1,794   6,802   4,709 
    Information technology expenses 1,175   1,028   3,639   3,141 
    Provision for doubtful accounts receivable and contract assets 211   (606)  297   987 
    Depreciation and amortization 2,963   3,252   8,549   9,772 
    Total operating expenses 93,457   26,250   172,778   77,465 
    Income (loss) from operations (53,991)  (3,380)  (53,009)  (17,544)
    Other income (expense):       
    Interest income 28   129   289   381 
    Interest expense (7,157)  (6,066)  (19,987)  (17,428)
    Gain on extinguishment of PPP loan    4,292   2,009   4,292 
    Restructuring expense (2,494)     (2,494)   
    Other income (expense), net (521)  872   243   837 
    Total other expense, net (10,144)  (773)  (19,940)  (11,918)
    Loss before income taxes$(64,135) $(4,153) $(72,949) $(29,462)
    Provision for income taxes (610)  (115)  (891)  (235)
    Net loss$(64,745) $(4,268) $(73,840) $(29,697)
    Deemed dividend-earnout shares$        (4,157) $  $        (4,157) $ 
    Net loss attributable to common stockholders$        (68,802) $        (4,268) $        (77,997) $        (29,697)
    Net loss attributable per share to common stockholders:       
    Basic$(0.88) $(0.07) $(1.14) $(0.49)
    Diluted$(0.94) $(0.07) $(1.20) $(0.49)
    Weighted-average shares used to compute net loss attributable per share to common stockholders, basic and diluted 72,470,184   60,800,000   64,733,342   60,800,000 
                    

    MONDEE HOLDINGS, INC.

    Condensed Consolidated Statements of Cash Flows
    (In thousands)
    (unaudited)

     Nine Months Ended
    September 30,
     2022
     2021
    Cash flows from operating activities   
    Net loss$(73,840) $(29,697)
    Adjustments to reconcile net loss to net cash provided used in operating activities   
    Depreciation and amortization 8,548   9,771 
    Deferred taxes 692   92 
    Provision for doubtful accounts receivable and contract assets 297   986 
    Stock-based compensation 54,906   3,853 
    Amortization of loan origination fees 4,238   1,798 
    Payment in kind interest expense 8,147   9,029 
    Gain on Forgiveness of PPP Loan (2,009)  (4,292)
    Cost allocated to warrant liabilities 325   0 
    Change in the estimated fair value of earn-out consideration (1,260)  (177)
    Changes in operating assets and liabilities   
    Accounts receivable (15,870)  (7,894)
    Contract assets (2,635)  1,454 
    Prepaid expenses and other current assets (17,547)  132 
    Operating lease right-of-use assets (320)   
    Other non-current assets (716)  (558)
    Amounts payable to related parties, current portion (716)  768 
    Accounts payable 26,029   4,119 
    Accrued expenses and other current liabilities 12,399   908 
    Deferred revenue (1,658)  (1,910)
    Operating lease liabilities 300    
    Other long term liabilities    2,525 
    Net cash provided by (used in) operating activities (690)  (9,093)
    Cash flows from investing activities   
    Capital expenditure (5,415)  (3,270)
    Purchase of restricted short term investments (394)   
    Sale of restricted short term investments    416 
    Net cash used in investing activities (5,809)  (2,854)
    Cash flows from financing activities   
    Repayments of long-term debt (41,210)  (322)
    Repayment of short-term debt (290)  (191)
    Proceeds from PPP and other government loans    3,789 
    Proceeds from issuance of preferred stock 83,440    
    Proceeds from exercise of common stock warrants 1,368   
    Issuance of PIPE shares 78,548    
    Payment of offering costs (20,053)   
    Payment for put options exercised (5,241)   
    Net cash provided by financing activities 96,562   3,276 
    Effect of exchange rate changes on cash, cash equivalents and restricted cash (341)  (160)
    Net decrease in cash, cash equivalents and restricted cash 89,722   (8,831)
    Cash, cash equivalents and restricted cash at beginning of period 15,506   31,525 
    Cash, cash equivalents and restricted cash at end of period$105,228  $22,694 
        
    Supplemental cash flow information:   
    Cash paid for interest$140  $3,362 
    Non-cash investing and financing activities   
    Issuance of earnout$  $ 
    Legacy mondee shares converted to mondee holdings inc shares 7    
    Assumption of net liabilities from Business Combination 15,002    
    Additional business combination offering costs incurred 198    
    Unpaid offering costs 11,832    
    Preferred stock dividend accrual 47    
    Issuance of common stock 3,891   
    Conversion of warrant classification 535   
    Shareholder receivable (20,336)  
    Loan Origination Fee for Long Term Debt     
    Issuance of units 9,750    


    ADJUSTED EBITDA RECONCILIATION3Q22 3Q21 
    Net income (Loss)($64,735)  ($4,268) 
    Interest expense (net)$7,129 $5,937 
    Stock-based comp exp$54,745 $75 
    Depreciation & amortization$2,963 $3,252 
    Income tax provision$610 $115 
    Gain on forgiveness of PPP loan$0 ($4,292) 
    Other expenses (income), net$3,014 ($872) 
    Adjusted EBITDA$3,726  ($53) 
    Adjusted EBITDA margin9.4% -0.2% 
       
    ADJUSTED NET INCOME RECONCILIATION3Q22 3Q21 
    Net Income (loss)($64,735) ($4,268) 
    Stock-based comp exp$54,745 $75 
    Amortization - intangibles$1,584 $1,977 
    Income tax provision$610 $115 
    One-time expenses$2,040 ($4,292) 
    Adjusted Net Income (Loss) ($5,756) ($6,393) 
       
    ADJUSTED EPS RECONCILIATION3Q22 3Q21 
    Net Income (loss)($64,735) ($4,268) 
    Common shares outstanding72.5 60.8 
    GAAP EPS($0.88) ($0.07) 
    Adjusted Net Income (Loss)($5,756) ($6,393) 
    Diluted shares outstanding94.6 94.6 
    Adjusted EPS($0.06) ($0.07) 

    For Further Information, Contact:

    Public Relations
    pr@mondee.com

    Investor Relations
    ir@mondee.com


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