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Mondee Holdings, Inc. (MONDQ)
:MONDQ
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Mondee Holdings
(OTC:MONDQ)
Rating:39Underperform
Price Target:―
Mondee Holdings (MONDQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.74K
Dividend YieldN/A
Average Volume (3M)1.97M
Price to Earnings (P/E)―
Beta (1Y)-73.29
Revenue Growth25.33%
EPS Growth21.00%
CountryUS
Employees1,226
SectorConsumer Cyclical
Sector Strength64
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)N/A
Shares Outstanding87,416,130
10 Day Avg. Volume1,664,406
30 Day Avg. Volume1,971,613
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)5.25
Price to Sales (P/S)0.00
P/FCF Ratio-6.34
Enterprise Value/Market Cap40.12K
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit2.25
Enterprise Value/Ebitda-5.44
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Mondee Holdings Business Overview & Revenue Model
Company DescriptionMondee Holdings, Inc. (MOND) is a technology-driven travel marketplace company, primarily operating in the travel industry. It offers a robust platform that connects travel agents, agencies, and corporations with a wide range of travel content, including air, hotel, and other travel-related services. Mondee aims to modernize the travel booking experience by leveraging innovative technology to provide an efficient, user-friendly interface for its clients.
How the Company Makes MoneyMondee Holdings generates revenue through a commission-based model, earning fees on travel bookings made via its platform. This includes commissions from airlines, hotels, and other travel service providers for facilitating bookings. Additionally, Mondee may earn revenue from subscription or service fees charged to travel agents and agencies for access to premium features or enhanced service offerings on their platform. Partnerships with travel service providers and corporations contribute significantly to Mondee's earnings by broadening the inventory and services available to its clients, thereby increasing transaction volume and potential revenue streams.
Mondee Holdings Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q2-2024)
| % Change Since: -77.39%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Mondee's strong growth in adjusted EBITDA, take rate improvements, international expansion success, and AI integration. However, these positive outcomes were tempered by industry softening, working capital constraints, flat gross bookings, negative operating cash flow, and revised guidance due to market conditions. While there were notable achievements, the challenges faced by the company indicate a balanced outlook.Q2-2024 Updates
Positive Updates
Strong Growth in Key Metrics
Mondee reported a 38% year-over-year increase in adjusted EBITDA. The take rate improved by 20 basis points to 81.6%, driven by a product mix expanding into non-air. The non-air net revenue mix increased to 47% from 42% in the same quarter last year.
International Expansion Success
Mondee achieved a 57% increase in transactions year-over-year through the international expansion of their platform. This growth was achieved despite working capital constraints.
Refinancing of Capital Structure
Mondee announced refinancing of their term loan and preferred equity at favorable terms, expected to provide additional working capital and extend the term loan to June 30, 2028.
Hotel Segment Improvement
There was a significant improvement in the North America hotel take rate, which increased over 50% this year.
AI Integration Enhancements
Deployment of AI tools in operations and revenue management led to a 5% reduction in sales and marketing expenses.
Negative Updates
Industry Softening and Economic Conditions
The travel industry showed signs of softening by the end of the second quarter, with reductions in airfares and lodging rates attributed to global inflation and economic conditions.
Impact of Working Capital Constraints
Working capital constraints led to moderated growth in existing business and lower fintech revenue, which carries the highest take rate.
Flat Gross Bookings
Gross bookings were $678 million, flat compared to last year, due to lower average transaction values from rapid growth in lower-priced international markets.
Negative Operating Cash Flow
Operating cash flow was negative $7.6 million for the quarter, compared to negative $2.4 million in Q2 2023, caused by cash reserve usage to offset credit limit reductions.
Revised 2024 Guidance
Mondee revised its 2024 guidance for net revenue to be between $240 million and $250 million, representing a decrease from previous expectations, due to working capital limitations and industry softness.
Company Guidance
During Mondee's Q2 2024 earnings call, the company reported significant growth metrics, including a 38% year-over-year increase in adjusted EBITDA. The take rate improved by 20 basis points to 81.6%, while the non-air net revenue mix rose to 47%, up from 42% in the previous year. Mondee's transaction volume surged by 57%, although gross bookings remained flat due to lower average transaction values driven by expansion in lower-priced international markets. Financially, the company achieved $678 million in gross bookings and $58 million in net revenue, marking a 3% increase. Despite some market softness, Mondee is optimistic about its platform-driven international expansion, expecting net revenue between $240 million and $250 million and adjusted EBITDA of $25 million to $30 million for 2024. The company highlighted its strategic refinancing, extending the term loan to June 2028 and preferred equity to December 2028, as pivotal for future growth and financial flexibility.Mondee Holdings Financial Statement Overview
Summary
Mondee Holdings demonstrates strong revenue growth; however, profitability and cash flow are problematic, indicated by negative margins and cash flow metrics. High leverage and weak equity position are risks, but improvements in stockholders' equity present some potential.Income Statement
Mondee Holdings shows a positive revenue growth trend, with a 40.0% increase from 2022 to 2023. However, profitability remains a challenge, as illustrated by a negative net profit margin of -27.2% for 2023. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.45
Neutral
Balance Sheet
The company has a high debt-to-equity ratio of 4.08, indicating significant leverage. The equity ratio is low at 10.3%, suggesting limited equity cushion. Despite this, stockholders' equity has improved compared to previous years, indicating some balance sheet strengthening.40
Negative
Cash Flow
Cash flow metrics indicate challenges, with negative operating cash flow and free cash flow for 2023. The free cash flow growth rate is negative, reflecting cash burn. The operating cash flow to net income ratio is negative, showing that earnings are not translating into cash.35
Negative
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 232.97M | 223.32M | 159.48M | 93.19M | 65.80M |
| Gross Profit | 155.68M | 180.26M | 60.32M | 52.85M | 45.14M |
| EBITDA | -23.27M | -11.91M | -51.69M | -2.04M | -24.64M |
| Net Income | -78.26M | -60.82M | -90.24M | -38.91M | -41.73M |
Balance Sheet | |||||
| Total Assets | 362.80M | 392.39M | 258.10M | 203.34M | 223.36M |
| Cash, Cash Equivalents and Short-Term Investments | 23.34M | 27.99M | 78.84M | 15.51M | 31.43M |
| Total Debt | 172.46M | 165.61M | 137.24M | 175.68M | 161.16M |
| Total Liabilities | 358.69M | 351.81M | 204.82M | 230.16M | 214.90M |
| Stockholders Equity | 4.12M | 40.58M | 53.27M | -26.82M | 8.46M |
Cash Flow | |||||
| Free Cash Flow | -13.47M | -33.63M | -17.88M | -19.70M | -7.72M |
| Operating Cash Flow | 1.59M | -21.88M | -10.61M | -15.67M | -3.66M |
| Investing Cash Flow | -15.35M | -34.05M | -7.42M | -3.11M | -37.71M |
| Financing Cash Flow | -8.58M | 5.37M | 81.73M | 3.08M | 61.09M |
Mondee Holdings Risk Analysis
Mondee Holdings disclosed 65 risk factors in its most recent earnings report. Mondee Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mondee Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $183.28B | 35.04 | -146.32% | 0.65% | 9.47% | 20.70% | |
74 Outperform | $24.21B | 22.44 | 119.16% | 0.43% | 5.57% | 61.19% | |
73 Outperform | $42.54B | 18.86 | 12.49% | <0.01% | 16.23% | 56.05% | |
68 Neutral | $2.34B | 48.88 | 5.91% | ― | 1.43% | 121.44% | |
63 Neutral | $17.18B | 10.68 | -8.50% | 2.94% | 1.62% | -25.72% | |
59 Neutral | $1.23B | ― | 20.22% | ― | 2.56% | 69.08% | |
39 Underperform | $8.74K | ― | ― | 25.33% | 21.00% |
* Consumer Cyclical Sector Average
Performance Comparison
MONDQ
Mondee Holdings
0.26
-2.71
-91.25%
TCOM
Trip.com Group Ltd. Sponsored ADR
64.43
21.53
50.19%
EXPE
Expedia
187.34
59.64
46.70%
BKNG
Booking Holdings
5,632.27
1,906.11
51.15%
TRIP
TripAdvisor
17.82
-0.15
-0.83%
SABR
Sabre
3.15
-0.39
-11.02%
Mondee Holdings Corporate Events
Executive/Board ChangesPrivate Placements and FinancingLegal ProceedingsBusiness Operations and Strategy
Mondee Holdings Files for Bankruptcy Amid Restructuring Efforts
Negative
Jan 15, 2025
On January 14, 2025, Mondee Holdings filed for Chapter 11 bankruptcy in the Delaware court, aiming to restructure its debts and operations. The company secured a $110 million financing facility to maintain operations during the bankruptcy proceedings and initiated plans to sell its assets through a ‘stalking horse’ bid worth $191 million. The restructuring plan, supported by a Restructuring Support Agreement, aims to stabilize the company, though there is no guarantee of successful completion. Jim Dullum resigned as COO, highlighting ongoing changes in the company’s leadership.
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Mondee Holdings Secures Loans and Restructures Leadership
Neutral
Dec 23, 2024
Mondee Holdings, Inc., a Delaware corporation, has entered into amendments to its financing agreement, securing additional loans totaling $15.5 million for general corporate purposes. The company also announced the appointment of a chief restructuring officer, Mohsin Meghji, and an expansion of its Board of Directors with the election of three new members, alongside forming a Special Committee to oversee strategic alternatives. These moves indicate a strategic restructuring and governance enhancement to improve financial and operational stability.
Delistings and Listing ChangesRegulatory Filings and Compliance
Mondee Holdings Faces Nasdaq Delisting Over Compliance Issues
Negative
Dec 3, 2024
Mondee Holdings, Inc., a leading travel marketplace and AI technology firm, announced its impending delisting from the Nasdaq Stock Market due to non-compliance with filing requirements. Despite this, the company’s operations remain unaffected, continuing to support its extensive global network. This move highlights the importance of regulatory compliance in maintaining stock market presence.
Delistings and Listing ChangesExecutive/Board ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
Mondee Holdings Navigates Leadership Change and Compliance Issues
Neutral
Nov 26, 2024
Mondee Holdings faces a Nasdaq compliance issue due to late filing of a financial report but maintains its stock listing for now. Amidst this, CEO Prasad Gundumogula takes a leave of absence, with Jesus Portillo stepping in as the new CEO while retaining his CFO role. This transition occurs as Mondee continues its operations as a leading travel marketplace and AI technology firm.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.