- Net Revenues of $58.3M, up 3% from prior-year quarter, on Gross Bookings of $678M- Adjusted EBITDA3 of $6.1M, up 38% from the prior-year quarter - Take Rate of 8.6%, up 20 basis points from the prior-year quarter- Refinancing of term loan and extension of preferred equity AUSTIN, Texas, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Mondee Holdings, Inc. (NASDAQ:MOND) ("Mondee" or the "Company"), a leading travel marketplace and artificial intelligence (AI) technology company, today announced financial results for the three-month period ended June 30, 2024. "Mondee delivered a strong second quarter, with net revenue, take rate, and adjusted EBITDA up year over year—the latter by 38%. Our non-air component surged to 47% of net revenue and take rate grew 20 basis points to 8.6%," said Founder, Chairman, and CEO Prasad Gundumogula. "We are also successfully refinancing our term loan and preferred equity, securing favorable terms that position Mondee for long-term growth. This new capital structure is expected to fuel our expansion, improve profitability, and solidify our AI leadership in travel," Gundumogula continued. "We delivered net revenue of $58 million—up 3% year over year, or 11.5% adjusted for acquisitions and disposals—and maintained healthy adjusted EBITDA. Our much-anticipated refinancing is expected to provide Mondee with financial flexibility, and additional working capital, enabling the Company to resume and accelerate its growth trajectory," said CFO Jesus Portillo. Second Quarter Financial Highlights Gross bookings of $678.0 million for the quarter, approximately in line with the second quarter of 2023 ("Q2 23"). Our strategy of rapid growth in non-air and platform-driven international air expansion led to a strong 57% transaction growth with reduced average transaction price. This resulted in lower revenue growth and higher adjusted EBITDA. Net revenues of $58.3 million for the quarter, an increase of 3% compared to $56.8 million in Q2 23. Delays in completing the refinancing caused a reduction in FinTech credit limits and working capital, materially limiting net revenue growth. Net Loss of $25.5 million for the quarter, including $19.1 million of non-cash and/or non-recurring items, such as $3.7 million of depreciation and amortization, $1.0 million of PIKed interest, $12.0 million of stock-based compensation, and $2.3 million amortization of loan origination fees, among others. Adjusted EBITDA of $6.1 million for the quarter, an increase of 38% compared to $4.4 million in Q2 23. Operating cash flow used of $7.6 million for the quarter, compared to cash used of $2.4 million in Q2 23. In this quarter, the Company used over $10 million of cash reserves as working capital to offset for credit limit reductions by certain FinTech partners in the face of delays in refinancing of its term loan. The Company anticipates some of these credit limits to be reinstated as the refinancing is being completed. Year-to-date, both operating cash flow and free cash flow were positive, $11.1 million and $3.3 million, respectively. Financial Summary and Operating Results 1,2   For the three months ended June 30,   Year-Over-Year Change    2024    2023       % Transactions 1,133,997   721,464   412,533   57% Gross Bookings $677,957   $679,244   $(1,287)   —% Net Revenues $58,326   $56,771   $1,555   3% Net Loss $(25,512)   $(14,608)   $(10,904)   75% Loss per share (EPS) $(0.36)   $(0.22)   $(0.14)   63% Adjusted EBITDA3 $6,111   $4,438   $1,673   38% Adjusted Loss per Share3 $(0.17)   $(0.09)   $(0.08)   92% Net cash used in operating activities $(7,599)   $(2,427)   $(5,172)   (213)%   For the six months ended June 30,   Year-Over-Year Change    2024    2023       % Transactions 2,209,434   1,386,637   822,797   59% Gross Bookings $1,386,033   $1,347,323   $38,710   3% Net Revenues $116,347   $106,700   $9,647   9% Net Loss $(44,970)   $(27,523)   $(17,447)   63% Loss per share (EPS) $(0.66)   $(0.43)   $(0.23)   54% Adjusted EBITDA3 $11,167   $8,595   $2,572   30% Adjusted Loss per Share3 $(0.32)   $(0.18)   $(0.14)   74% Net cash from (used in) operating activities $11,062   $(12,406)   $23,468   (189)% 1 In $ thousands, except for Transactions and Loss per Share.2 2Q 2024 Net Loss included $19.1 million of non-cash and/or non-recurring items, such as $3.7 million of depreciation and amortization, $1.0 million of PIKed interest, $12.0 million of stock-based compensation and related payroll expense, and $2.3 million amortization of loan origination fees, and $0.1 million change in fair value of earn-out liabilities, among others. 3 Refer to section entitled "Use of Non-GAAP Measures" for a reconciliation of non-GAAP financial measures. Second Quarter 2024 Business Highlights and Subsequent Events Long-Term Refinancing. The Company announced today a comprehensive refinancing of its capital structure with TCW and funds affiliated with Morgan Stanley Investment Management, that is expected to extend its term loan to June 30, 2028, and its preferred equity to December 31, 2028. The extended timing for the term loan beyond August 31, 2025 and the preferred equity beyond September 30, 2026, are both subject to securing a $15 million letter of credit that the Company anticipates finalizing shortly and which would provide additional working capital. Revised 2024 Financial Outlook Our fiscal year 2024 guidance, as a result of the impact of working capital and FinTech credit limit constraints caused by delays in completing the refinancing, is adjusted as follows: Net revenues of approximately $240 million to $250 million, representing an increase of 10% versus 2023 net revenues, measured at the midpoint. Adjusted EBITDA of approximately $25 million to $30 million, representing an increase of 42% versus 2023 Adjusted EBITDA, measured at the midpoint. Conference Call Information Mondee will host a conference call Wednesday, August 14th 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 http://investors.mondee.com. A live dial-in is available domestically at (833) 470-1428 and internationally at +1 (404) 975-4839, passcode 985518. 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 968920, until midnight (ET) September 4, 2024. About Mondee Holdings, Inc. and SubsidiariesEstablished in 2011, Mondee is a leading travel marketplace and artificial intelligence ("AI") technology company with its headquarters based in Austin, Texas. The company operates 22 offices across the United States and Canada and has core operations in Brazil, Mexico, 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. Mondee Marketplace includes access to Abhi, the most powerful and only fully-integrated AI travel planning assistant in the market. Mondee's network and marketplace include approximately 65,000 travel experts, 500+ airlines, and over one million hotels and vacation rentals, 30,000 rental car pickup locations, and 50+ cruise lines. The company also offers packaged solutions and ancillary offerings that serve our global distribution. On July 19, 2022, Mondee became publicly traded on the Nasdaq under the ticker symbol MOND. For further information, visit: www.mondee.com. 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," "could," "may," "expect," "intend," "potential," "plan," "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. 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 and forecasts, the outcome of any legal proceedings that may be instituted against the Company or others and any definitive agreements with respect thereto, the ability of the Company to grow and manage growth profitably, retain management and key employees, and maintain relationships with our distribution network and suppliers, the ability of the Company to maintain compliance with Nasdaq's listing standards, the expected changes to the Company's capital structure, and other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report of Form 10-Q for the three months ended March 31, 2024 filed with the U.S. Securities and Exchange Commission (the "SEC"), 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 par value) (unaudited)     June 30,2024   December 31,2023 Assets       Current assets       Cash and cash equivalents $ 23,337     $ 27,994   Restricted cash and short-term investments   8,951       7,993   Accounts receivable, net of allowance   94,347       116,632   Contract assets, net of allowance   15,459       13,228   Amounts receivable from related parties, current portion   59       —   Prepaid expenses and other current assets   6,732       7,250   Total current assets   148,885       173,097   Property and equipment, net   23,831       17,311   Goodwill   82,758       88,056   Intangible assets, net   92,288       102,029   Amounts receivable from related parties, excluding current portion   —       43   Operating lease right-of-use assets   4,024       3,232   Deferred income taxes   752       752   Other non-current assets   10,266       7,871   TOTAL ASSETS $ 362,804     $ 392,391           Liabilities, Redeemable Preferred Stock and Stockholders' Deficit       Current liabilities       Accounts payable $ 121,838     $ 114,989   Amounts payable to related parties   41       42   Government loans, current portion   20       66   Accrued expenses and other current liabilities   25,853       25,115   Earn-out liability, net, current portion   4,013       4,843   Deferred revenue, current portion   5,213       5,686   Long-term debt, current portion   5,182       10,828   Total current liabilities   162,160       161,569   Deferred income taxes   8,473       12,334   Note payable to related party   203       201   Government loans, excluding current portion   127       142   Warrant liability   102       137   Earn-out liability, net, excluding current portion   2,116       4,322   Long-term debt, excluding current portion   164,104       150,679   Deferred revenue, excluding current portion   10,490       11,797   Operating lease liabilities, excluding current portion   2,825       2,561   Other long-term liabilities   8,088       8,073   Total liabilities   358,688       351,815           Redeemable preferred stock       Series A preferred stock - $0.0001 par value   115,734       105,804           Stockholders' deficit       Common stock – $0.0001 par value   9       8   Treasury Stock   (32,088 )     (32,088 ) Additional paid-in capital   312,770       306,326   Accumulated other comprehensive (losses) gains   (6,267 )     1,598   Accumulated deficit   (386,042 )     (341,072 ) Total stockholders' deficit   (111,618 )     (65,228 ) TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT $ 362,804     $ 392,391     MONDEE HOLDINGS, INC.Condensed Consolidated Statements of Operations(In thousands, except weighted-average shares and net loss per share data) (unaudited)           Three Months EndedJune 30,   Six Months EndedJune 30,     2024       2023