Mondee Holdings, Inc. (NASDAQ:MOND) Q2 2023 Earnings Call Transcript

I don’t know if anybody else has anything to add on this.

Jesus Portillo: Yes. I will add. This is Jesus. I would probably also point of that we made the decision within the context of understanding our EBITDA still 255% of 2022 adjusted EBITDA, right? So I want to make sure that we all also contemplate that.

Prasad Gundumogula: And we anticipate to invest in implementing and continuing with our AI roadmap, which is important. We are an innovation-led company, and we continue to do that while we are reaping the benefits from the financially and/or capturing our market share, we will continue to invest into our AI platform roadmap.

Darren Aftahi: That’s all very helpful. Thank you. Just one last one for me; is there any way to duplicate what organic revenue and EBITDA kind of growth was in the quarter? Thank you.

Jesus Portillo: So as you know, I mean, usually we integrate all of our new acquisitions to get very quickly integrated in our ecosystem and platforms. So we do not track revenues or EBITDA coming out of new acquisitions as simple as that.

Orestes Fintiklis: Yes. I mean, and just to highlight here, again this is Orestes. Our strategy when it comes to acquisitions is that we are buying components that we are adding into our own marketplace, right? So say we buy a company that is giving us hotel content in Latin America and then we start selling to their customers and then they – our own content, the flight content or they start selling to our own 65,000 customers their content, then it’s very difficult even if you keep the performance separately by company, it’s very difficult to pinpoint what is organic and [indiscernible] and within inorganic. And this is precisely because we’re not necessarily buying companies, but we’re buying components that we plugged into one single and unified marketplace.

Darren Aftahi: Thank you.

Operator: Thanks Darren. Our next question comes from Nick Jones from JMP Securities. Nick, your line is now open. Please go ahead.

Nick Jones: Great. Thanks for taking the questions. I guess just kind of following up on the updated full year guidance. It looks like probably half of the revenue increase is coming from the Skypass acquisition? And then with this kind of incremental investment in the back half, it doesn’t seem like you’re expecting any kind of return on that investment this year. So I guess can you help contextualize kind of how we should think about the time to return on investment of this incremental kind of second half investment around the marketplace and the AI product?

Jesus Portillo: Yes. Hi, Nick. Thank you for your questions. So yes, obviously, Skypass will contribute slightly to that but would not be – will not represent 100% of the increase of the guidance that we’re providing on revenue.

Jim Dullum: Yes Nick, its Jim. I’ll also just add that bear-in-mind, when we acquire a company like that, right, we’re bringing in an excellent management team, understands their market well, have tuned their operation to that market. Now there are great synergies to be had from all of this, right? We bring these businesses in, we’re able to bring them – provide them with technology they didn’t have before, which then allows them to take that out to their customer base. But what we have learned over the several years that we’ve been doing acquisitions successfully and accretively is that you want to do it in a very organized, disciplined and planned way. So usually, we’ll look at this and say, while there are immediate synergies to be had, we’re going to work-off of more, like, say, a two- to three-quarter plan to get these things fully integrated, get the synergies so that you don’t press too hard.