Company: UP
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001819516-25-000012
Chunk: 125

Company: Wheels Up Experience Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 125
---
 $22.8 million decrease in expenses associated with setting up our Atlanta Member Operations Center and a $2.7 million decrease in expenses associated with our FAA certificate consolidation. The decreases were partially offset by $12.4 million of one-time charges associated with increasing our reserve for excess and obsolete inventory for certain parts inventory deemed in excess of forecasted demand for aircraft maintenance as a result of our fleet modernization strategy, as well as a $2.0 million associated with certain employee restructuring actions implemented in the second quarter of 2024 as we exited underutilized maintenance facilities during the year.

Adjusted Contribution Margin increased 580 basis points for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily attributable to the operational efficiency initiatives discussed above. See “Non-GAAP Financial Measures” above for a definition of Adjusted Contribution Margin, information regarding our use of Adjusted Contribution Margin and a reconciliation of Gross margin to Adjusted Contribution Margin.

Technology and Development 

Technology and development expenses decreased $21.2 million, or 34%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily driven by an $11.8 million reduction in employee 

66

compensation, bonus and allocable costs due to headcount reduction actions taken in fiscal year 2023, including the absence of a $2.3 million one-time charge associated with the Restructuring Plan recognized during the first quarter of 2023. The decrease was also attributable to a $4.0 million reduction in enterprise software costs, including the absence of a $2.7 million charge in the third quarter of fiscal year 2023 associated with a software implementation project that was abandoned during the period, a $2.5 million reduction in development and hosting costs, and a $1.6 million reduction in spend for IT equipment and telecommunication services. 

Sales and Marketing

Sales and marketing expenses decreased $4.5 million, or 5%, for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily driven by a $4.2 million reduction in employee compensation, bonus and allocable costs driven by headcount reduction actions taken in fiscal year 2023, including the absence of a $2.1 million one-time charge associated with the Restructuring Plan recognized during the first quarter of 2023. The decrease was also attributable to a $2.0