UP - Wheels Up stock slides on wider than expected loss weak guidance

2023-03-09 11:11:46 ET

Wheels Up Experience ( NYSE: UP ) slid sharply on Thursday after posting a wider than expected Q4 loss and offering downbeat guidance for the year ahead.

For the fourth quarter, a report of a $0.96 loss more than doubled the loss anticipated by analysts. The deepening loss came despite an 18.2% jump in revenue from the prior year to $408M that edged out expectations by $6.05M and a 5% rise in members. The deeper net loss was driven in large part by a $132M goodwill impairment charge in the quarter.

“Wheels Up has a strong foundation of revenue backed by loyal customers who continue to spend at significant levels with us,” CEO Kenny Dichter said. “With that strong base of business, our focus is now on delivering world-class service profitably.”

The company guided for between $1.55B and $1.6B in revenue, below the consensus estimate at $1.71B. Management expects a GAAP net loss between $300M and $320M in 2023.

Shares of Wheels Up ( UP ) fell 5.17% on Thursday.

Read the company’s Q4 earnings presentation .

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