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

So I think, yes, it’s somewhat additive for whatever period of months, but you just have to make sure it’d be a little, let’s say conservative in how you look at the future results and not just try to add them all in and throw the synergies on top day one. So we’re generally a little more conservative, having done this so successfully time and again over the last several years.

Prasad Gundumogula: And remember as we integrate companies to our platform, it creates a change and change always brings its own challenges, and it takes a few months or a few quarters to settle that out and to get a good ramp in those companies. So our focus is on integration of these companies and not to expect a huge growth or synergies immediately, but to help us to fill in the components into our bigger vision, and while we’re focusing organically taking those components and to produce the results. And hence, that the increase in our guidance comes from our overall vision to continue with it while the recent acquisition adds some contribution to those results in the next four months.

Orestes Fintiklis: And Prasad, just to answer that, the second part of Nick’s question, I mean the first part it has been answered sufficiently that the Skypass is adding a few million out of those five, right? You can do the back of development, so which means that we are only adding about $3 million-or-so from the new marketplace which to your point, Nick, yes, we all anticipate most of the fruit of this incremental – of this $20 million incremental investment to come into 2024 and this is because we are targeting new era audiences. There is a lot of learning in the process. Even when we sign up, the social media influencers, so basically we are conservatively assuming that most of the incremental revenue will come in 2024 with only a small part coming in 2023.

Now it may end up being that we get more in 2023, but again, it’s much – I mean, from the new marketplace, but it’s much better to be conservative. And also to remind you that this is our fourth quarter that we are reporting as a public listed company and in the net revenue segment, we have been bidding and raising every single quarter since we went public, right, so there is an element to that as well.

Nick Jones: Great. Thanks for taking the questions.

Operator: Thanks Nick. Our next question comes from Brett Knoblauch from Cantor Fitzgerald. Brett, your line is now open. Please go ahead.

Brett Knoblauch: Thank you and thanks for taking my question. I guess the first one, if I look at maybe just revenue by geography. Revenue in the U.S. was down 15% year-over-year. So it looks like most of growth came from international and specifically Brazil, which I guess I believe, is coming from the Orinter acquisition because, I guess, a, can you just talk to me about why U.S. revenues were down 15% year-over-year? And b, I guess, if you’re not tracking organic or inorganic growth and acquisitions you made, what criteria are you using to evaluate if that acquisition was successful or not? And how should we gauge if those acquisitions were success or not?

Orestes Fintiklis: Yes. Let me give you a few thoughts. I mean in the first part is that when we show the chart about the different geographies, everything is relative as well, right? So if we get more revenues from a certain geography, the percentage of revenues that comes from the U.S. or another geography reduces, right? So that’s the first point. The second point with regard to the success of acquisitions, as you know, most of – all of these acquisitions a substantial part of the consideration is linked to future performance metrics in the form of earn-outs, right? So you will be seeing most of which start to be triggered a year ahead of – after the acquisition itself. So one measure of the success of this acquisition will be whether those targets are met and the earn-outs are paid, right?