Lindblad Puts High Hopes on Demand for Experiences to Reverse Losses

Lindblad Expeditions expects it will have record revenue in 2023, even though it accumulated a net loss of over $100 million in 2022, Lindblad executives said during a Tuesday earnings call. 

Total revenue in 2022 was $421.5 million, up from $147.1 million in 2021. Lindblad CEO Dolf A. Berle said 2022 was a “year of resurgence” as Covid restrictions fell, people became comfortable to travel internationally and the company’s partners and vendors resumed their pre-pandemic state of operations.

Even so, the company endured a net loss of $116.1 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to a loss of $11.5 million, compared to a net loss of $64 million in 2021.

Berle expects 2023 will be a record in revenue and Adjusted EBITDA. The company expects tour revenues will be between $550 million and $575 million for the full year 2023 and Adjusted EBITDA to be between $70 and $80 million.

Lindblad executives are optimistic about 2023 due to consumer trends and operational enhancements. Booking volumes reached record volumes in January and February. As of February 21, booking volumes for the Lindblad segment were up 47 percent for the same period in 2019. The company has also booked well over 80 percent of their full year projected ticket revenues for the year.

"Demand for high-quality experiential travel continues to grow and we are well-positioned to capture a significant piece of that interest," said Berle.

Technology investments will pay off in 2023, Lindblad executives said. They pointed out their improved digital marketing targeting and performance. The company will also roll out a new reservation and bookings system in the second quarter.

Some challenges for Lindblad include lingering quarantine requirements in New Zealand, Panama and Argentina and the civil unrest in Peru, which have caused cancellations. Executives, however, said those situations are getting better. The Northeast passage remains off limits due to the war in Ukraine.

For the fourth quarter, revenue increased $52.4 million year over year to $118 million. The company attributed the improved performance to its Lindblad and land experiences segments.