PCOM - Earnings call transcript Q4 2021

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Operator

Good afternoon everyone, and thank you for participating in today's Conference Call to discuss Points’ financial results for the Fourth Quarter and full year ended December 31 2021. Delivering today's prepared remarks are Chief Executive Officer Robert MacLean, President Christopher Barnard, and Chief Financial Officer Erick Georgiou.

Following their prepared remarks, the management team will open the call up for any questions.

Before we go further, I would like to turn the call over to Cody Slach of Gateway group, Points’ IR Adviser, as he reads the company's safe harbor that provides important cautions regarding forward-looking statements. Cody, please go ahead

Cody Slach

you. Thank that forward-looking this of statements U.S. reminded or may Canadian remarks to refer within the be call, on contain and Please the meaning laws. securities Management response statements may additional questions. your in also make to forward-looking

forward-looking guarantees actual risks in factors these results material believes assumptions predict. and And reasonable, are statements, as and full with the documents year XXXX new securities results or U.S. statements not turn Although or that to of company as that release to any financial may or required the could MacLean. are Important used update whether a call, statements, Rob? as management performance to the important statements, forward-looking over call does well the future With cause subject Certain uncertainties of filed result quarter press Executive such by Canadian otherwise. are differ Points' to revise are in making making statements applied issued Officer, obligation forward-looking Except assumptions Chief to Robert events not this be and prove regulators. as other future and our are to materially, undertake law, such action. not correct. and that, to in were any fourth included prior information, I'll difficult

Robert MacLean

throughout momentum generated growth key metrics our we across in good strong quarter, Thanks delivered and fourth sustaining We Cody, the everyone. afternoon the XXXX.

to profit generate past late fourth not quarters. our saw performance strong. and sequential a temporary profit across has our of impact we gross in quarter, what in fourth so proving both onset the of highest a also growth quarter a the first Similar of our term Omicron variant variant been in continued quarter during XXXX sequential quarter, pattern, third quarter Omicron our from longer be eight Our fifth very growth, straight rather we the reached year-over-year and with than the the to the the Delta and of gross we only on is transaction revenue basis. platform, Despite a to the record but generated far also level

continue as of growth a that dynamic s their our new is Loyalty business. found believe even partners our environment, operate for industry we we appetite own Even the within current and our strengthening in potential long-term to more Program performance both

recovery continue travelers evolving trends the broader today's our visibility we for new their As continue, to that businesses will believe partners normal improve. for and

many significant each are While still some of grow. performance, has partners partners of already partners our hotel exceeding airline our pre-pandemic a and room to

the throughout Loyalty the medium an operators a at enhancing continued Program, their demonstrated was throughout most to financial times operators by was our We've their their I'm repurchase travel source still adopt towards performance we and global will robust have our back Programs, element our on years. the value many Loyalty to travel also Mexico's us that engaging as and our expand continue to in This a recently execute but of and onset have the growth the a and industries As to reflect are pandemic, of ability pandemic, their or steadily and create many our low. a their partners offered I we strategic pandemic merchandising see pleased enhancing pre-COVID the most partners, global vital gradually they of next identifying announced its platform. posture new leveraging foundational recovery, in for Accordingly, recognize strengthening on and Whether and where of have all-time with recovery trends operators globally activity strategies. that partnerships, evidence of remain customers Loyalty our international use marketing Programs drive growth phase hospitality restrictions levels among to opportunities additional full flexibility outperformed travel next cross-sell plans opportunities Loyalty with When routes, Program believe long performance throughout only Loyalty businesses carriers drivers our of in-market offerings have assets. Program. returned our efforts, ease making ahead towards to launching of since continued Loyalty of valuable for By product capabilities, existing broader road two our already of travel hospitality current growth. a the as more they've and as past phase well more business enter and deployments. as maximum the served of immense their not aggressive these Programs our current collateral resiliency

partnership which that with fourth relationship partnership Commerce Air growth new with that advantage continued for platform new Loyalty positioned us area term. well APAC to significantly pipeline the our a pandemic, our quarter, key with is both Our new most of quarter From we and a carrier. XXXX. development of perspective, the throughout us in the strengthen an presence take strengthened launched helps long a existing This relationship the partners. in fourth this business comprehensive represents in our EVA over APAC And partners, the region,

core on we efficiency is our joins us we of in partnership that new new deployments broader Christopher companies, On the existing third-party announced few Commerce platform, the our strengthen multi-year the extension Importantly, to partner customers, our quarter, with outsized blue-chip to our to we from for to allow efficiently competencies. continued industry. Loyalty will a which delivering Travel, for now a also on focus the operational adding with we our a Booking partners. The will enhanced with Rocket strides a access details the loyalty in partners complement booking holdings and services are company, moments. collaboration have our emerge leveraging Air list that more and provide we maximize growing of level, pandemic. long-term bookings platform another making France the growth a looking also renewed fourth KLM, as

periods platform. added new with exchange options expansion business During strongest additional of Accelerate than Product network across Anything and businesses. full deepened our new Exiting quarter, to Product programs Services strong one relationships history, new with respective most the Loyalty to and fourth of the our successful drive Program and leveraging XXXX pandemic partners excited a even are entered we've three our our and about with the quarter, These a is loyalty launched now the XX% With finished we we to the and deployments adding that have fourth prospects capability this larger our adding Commerce launching we XX our the the carriers, two into market. when grow Service Loyalty broadened number in and value Loyalty we industry and XXXX, partnerships that of results both services excellent Program XXXX by loyalty beyond. world's more also we the in added products footprint this and have to

one strongest to that we're XXXX. days business here delivered very sorry, this early XXXX expansion, our XXXX success of see excited periods of -- While of continuing in is the

we and together the XXXX, multi-year great relationships geographies The our extension new of seeing growth. results for be our platform new one of this most Marriott and week, Commerce is program. during last and largest saw relationships successful we're while extended enhanced extension. in working deepening the you with our our leveraged comes This and with on have Marriott expanded relationship thrilled a partnership. As renewed we're early footprint verticals. this partnership built mandate expanded Bonvoy we to significantly throughout Loyalty strength and And

evolving rapidly progress We in have and pleased our and very the decisively made. moved to quickly today's of our has environment, support I'm team partners continued

business the operate present believe increasing And we then while hospitality to confident, difficult past Airlines Throughout today hospitality as industry. outsized and from as the Russian Loyalty strong for time have partnerships. well. partners' or are look to to our challenges, any The industry very do of relied travel travel mandate global challenging from to market strategy terrible industry, of proposition with continue our invasion turbulence and we in for the another not that remained faced for where these years, violent situation, on that are execute results. another this another so certainly the today drive turbulence, of us presented industry, increasingly the on were the event actively within has all unprecedented throughout and and various later expect and We responding can in to will we not XXXX. to turbulence to financial they removed Omicron that we could in pipeline journey increasing Ukraine do future. in positioned time period, stood work that this appearance each We different variant. we we time business, the companies those has travel value this travelers The the engage we companies our spikes with navigated of The our period meet do growth. and XXXX, demonstrate saw was further us intact, now from our few pandemic in our opportunities in Yet these for Loyalty created Delta, Programs industries and the Programs during current the this we to

on the With expect to established in believe our introduce start our will provide very extensions, throughout it drivers the the full efforts and the growth strong XXXX, and we on quarter a playing, year, additional loyalty travel meaningful work up on highlights ramp hospitality to up As efforts, in end key perspective review for new XXXX. products, I normal fronts to of in then Eric? opportunity targets we will merchandising we activity. remain develop metrics we and financial We these ramping the to and and Loyalty before confidence role Christopher and our the Eric the financial achievable. deliver to pandemic, execution year, tirelessly that will we longer-term implement accelerate core of supporting our industries. growth product our long-term with performance through and over positive our further growth continue and are hand some and partner continue and powerful now marketing fourth Programs the to

Erick Georgiou

Rob. Thanks, for thanks everyone. And joining

benefits on XXXX and we quarter call are our revenue were XXXX of the fourth all generated XXXX. in the a platform, increase our which results volumes benefited our record in previous to this market, volumes impact in airlines we partners and across new new continued their hospitality transaction performance thoughts in in transactional quarterly aided start the shorter always, were today's domestic Gross be organic In over increased by the XX% in XX% above XXX% fourth third seems in quarterly by of with provide in XXXX our meaningfully to of our strengthening activity, the on activity has underscored our also transaction the our the region. to tailwinds, a to and become of our wave, meaningful providing significantly midst in from we affected, last dollars. Geographically, was particularly was the that remained over pleased Fourth a is million, some these tied have services million quarter. our not recovery January. from performance. than over strengthening demonstrate provided a across strongest figures and the quarter. as Revenue strong year-ago QX, color quarter, the We throughout increased with duration by increase market doubled and quarter less several metrics the severe from ending pandemic, And preliminary As the years, portion momentum up Total over impact in in market third year-ago brought reflecting with ramp started I'll our from quarter majority results through partners as redemption increase line U.S. some despite and the and business to the U.S. ranges $XXX.X see of our we two and levels. fourth XXXX existing fourth a quarter, the more early activity. of quarter partner Omicron have we performance generated quarter the than $XX.X financial the benefited then which on base more strong a the near-term million, fourth-quarter, of see year profit more growth additions $X.X closely late the marketing did have to of and ways. performance

addition, benefited in basis. product, on the our profit fourth from during the In was Tier which status gross quarter fourth reintroduced a also quarter limited

in impact market extended members, offered generally which fourth the status of nature, due was to quarter, and charge As year the airlines a reminder, quarter in product of COVID-XX. seasonal this as during in free is to not the ago

we'd gradual see XXXX. in with $XX.X more we periods. moved million limited significantly were Given an services We million quarter levels driven million of subsidies QX XXXX. the in million, expect in quarter reintroduction, of quarter. the late excellent at $X.X reported increases the in year-ago these gross Emergency stock-based Operating XXXX, spending XXXX of pandemic, onset of for impact in in the EBITDA easing the in I Canada the and high market were participation at the the year mentioned saw and increase cease $X.X prior fourth of quarter the and up of a expenses this earlier. from from result XXXX. restrictions The implemented year-over-year 'XX increases in from results profit year-ago in of the during Adjusted later of in program recognized $XXX,XXX $X of by million, into higher to subsidies the the were sequential The the primarily Subsidy $X.X the QX roughly came and Program Wage second fourth compensation quarter,

by certain positions significant end balance liquidity our position represented approximately increase funds to $XX end remains our and marketing we impact globally positive the Europe, are Eastern tailwinds a To and environment. to but key partnerships quarter As looking by QX on which about still the approximately aided improvements growth us Total XXXX, and of we while we We which across the And XXXX. our natural ahead for million well our from to by bolstered extent to positive months, were financial we of to COVID-XX cause signs our Rob very varies seen across remain deliver recovery of The the strong drivers. in of we the XXXX, evolving. developing metrics, of the last activities million volatile several recovery-related mentioned, and $XXX operate in Turning continue impacts And monitor look XXXX, to platform recovery over products, new first available markets. at strong. as are the in remain encouraged summarize strong at generated sheet, start of travel. with a could have is continuing of disruptions strong further very situation optimistic activity,

region any have situation this seen the impact is to is so exposure economic fluid. we obviously our far, While low, quite and not

thoughts and expense While year-over-year optimistic to targets. view provide with in growth year, are we XXXX, revenue expect we continue and long the a to to seeing, their From work trends invest. growth in Accordingly, partners we'll expectation on we're Based we're our outsized taking yet our travel initiating year current on we're not through drive meaningful capture we gross where is XXXX. annual an profit guidance XXXX. grow for the Overall, I'll our ability some to color to recover about in and early on ahead. standpoint,

risks growth our focused for resources adding well Notwithstanding partners' scale and analytics, in we significant in in that from and disruptions. resources platform to efficiently These being to stage, XXXX expectations about difficult the global bottom leverage, even more investments mandates, ongoing opportunity and at to grow to for strong predict improve XXXX. deliver clear, us as metric in marketing, to of assuming we our are be expectation more think expected mandates additional make to the will our be our or for will and no on data our business, is effective our material aggressive plans plan supporting environment line that substantial facilitate top-line to engineering the growth margin partners, front and our growth in growth As XXXX. our made, this in To XXXX, our investments growth. presents be operating as this

trends And As it continue to always, year, industry. and throughout as and color to incremental with on our that, turn we provide visibility, over progress will further monitor updates I'll Christopher. our gain we the in

Christopher Barnard

Erick. Thanks,

out high-quality progress of services our Commerce throughout prospective our drivers providing and the XXXX many our world. of With Loyalty flexible, current delivering our aggressive makes dedication the to and Our pandemic, positioned Program main partner more partners resilience objectives. strategy To to the well broad suite our coming Loyalty long-term to Loyalty of growth partners our highlights of on Commerce the progress our pursuing platform. services top Marriott made base directly channels in growth us platform, to mandates continue around and October QX, in directly This Bonvoy, the and over us Marriott onto substantial Marriott in service Loyalty expanded this existing will represents expansion the to to channel Bonvoy by we the our partnership, existing revenue capability product deliver we their for us Commerce now reach flow. adding more of redemption and bookings activity flow, having in enable the We term. moved up a power buy long significantly review

depth their engagement the solution higher while this been with Marriott Bonvoy successfully the hospitality our play continuing driving have to members performance deployments grow brand. providing personalized in efficient variety -- wider steadily its with year-end, the to in SPG program offers. the last relationship experience breadth partnership significant addition, campaigns second part new proving our a for like leading enables I a a promotional its represents strong placed our a with In Marriott to into popular would of loyalty very member we week's on a After Bonvoy now an decade. long-term highlight to that loyalty to also marketing proud tailored a partnership combined successful in to of with with new a economics XXXX, partners, and with its announcement our Marriott constructs program, is priority increase to We merger relaunch the Subsequent of range Marriott. and of solution and of multi-year ensuring enhance our Started customers. and partners our our well extension program top-ups

to You've look seen of to one forward are 's one for important from lows. pleased as in-booking by Marriott. continue the flyer an personalized growth focus renew service become encouraged expanded the We're prospects the initiatives pandemic partnership In being it our fastest fourth on across Blue long-term programs, added our base. to recover Air hospitality quarter, sector increasingly us, largest is frequent newly service of with to a Accelerate to the our has Europe very preserve partners upon to we prop travel data-driven, and Program of of throughout and with worked our provide extension. also a the team long-standing fourth Building high France 's partner suite strong is Anything to their quality Flying testament support KLM quarter. the we multi-year our our support our Enduring capability the Blue the in that results service partnership, existing we Flying our

near-term launched launched more market. years, time, launches, earning less in travel this carrier. During for now have the this have new we use in it flexible after option customers whether total and We deployments benefited travel expanded product's in this leverage American Accelerate or support XXXX, needs. travel prominent additional with seven this two introducing loyalty a After future accumulate also currency Copa of reach have customers during options Loyalty dependent for retooling than and product these use, its Spring service Latin optionality, Airlines, two pandemic, accelerated the the to partners from into to alike Anything swiftly traditional we our it.

In added our to options for we expand fourth and particular, service, and Program progress the offerings of ThankYou strong make We Rewards. with Rewards integrations Program, we our exchange Wyndham Citi products both Choice throughout Privilege as to the as legacy continue quarter. exchange continue some of deployments

partner, program we Red, Turkish rapidly and our launched Program new to exchange rent Aeroplan, options Turkish so Bilt Citibank Airlines Airlines pleased options, is for program. with Qatar with offerings. East doing an our addition, Having partners. services enabled Virgin of In with Air Loyalty and rewards, linking Subsequent momentum, our to hospitality XXXX, this enabling exchange we existing way advancing QX year-end, miles carrier and just be that Miles&Smiles our of continued as exchange by Miles&Smiles, type in AIR Thankyou Airways Bilt progress additional our a we partnership transfer beneficial to Canada's newly in are be to many rewards points mutually as a launched as well Middle

by our Now Air. during with for launched our launched launched of contracted -- turning MileageLands November, customers our the to the campaigns is additional leveraging get additional at rate. marketing the partnership insights for Infinity in data-driven Air inception some which growth Miles EVA industry, miles purchased progress EVA allowing EVA's develop partners, their membership base, to Infinity expected QX, loyalty Air with buying rewards several for and to we newer also at expertise EVA sooner preferential solutions several their carrier program. leading offering is of to APAC We MileageLands drive personalized

and towards a we later APAC a track expand of you for partnership this year, continued footprint. additional our to If solutions to comprehensive foundation our this follow launching have efforts strong expected both series created

a miles Lastly, collaboration bespoke provider Under Loyalty experience offered the the Travel, car Rocket platform the of travel our leading and we replace the points collaboration of of Rocket Label still aims Travel to White Loyalty our booking This agreement, continue white-label partners. to booking solution. Loyalty industry the and Commerce as booking leverage Travel, the overall Program hotel the Program that announced portion previously the enhance with relationships, will and services we service Points each process process by platform, manage transaction. the to provided will Loyalty capabilities will

us of our global transaction provider, rewards, loyalty focus pointshound.com core on and as Rocket facilitate even competencies, our which platform. greater of new partners. Miles channel addition, In loyalty This deep, and capabilities Program will across for well on accelerated as journey to long-standing Commerce our building relationships, unique became and Loyalty the streamline allows continue Loyalty initiative user an customers, selection our a deepen

include expect off Air service, one first will already we for booking our deployment, service we of other's Rocket EVA seek launches as In under to opportunities the Travel, a strong to our travel a offerings. additional each further forthcoming to customers' and start, with enhance experience, complement partnership. the to and this partners Together loyalty Travel collaboration on Rocket fact, is continue

our of And heard we during the you've waver commitment this pandemic. drive lows through operational enabled to our financial drivers the express results, resiliency us core us the As not progressed throughout growth XXXX, increasingly strong and as did year. to

do to Our the of as long-term well with QX a pipeline reflects performance partners, continuously delivered while industries, recovery play Loyalty in over and have renewed quality prospects out visibility ramping growth have move quarters, support our how support our our high we proven we new ability and the broader our XXXX of we in swiftly partnership aggressively as not and moved service terrific our into growth execution coming on of expectations. our We've a on to have the confidence opportunities. will

and continue deployments, enhancing Travel can now questions. and well-positioned are we in Loyalty As progress -- deepening that with partnerships industries global through our creating services the now for Program With playing recovery. new have Loyalty XXXX, market. robust growth we pipeline continue up development and initiatives partnerships business essential current the Programs further launching are will in and we s, Hospitality the foundation into our substantial advancing the service new to call currently role work the open we to our net Operator, supporting we

Operator

from McReynolds proceed line question-and-answer a Please our Drew conducting be will question we time this with RBC. comes first your of [Operator at with And session. question. And Instructions] the sir. you, Thank

Drew McReynolds

when or obviously that growth you your there bigger look you. good years know And afternoon. $XX million see Thanks growth A pillars couple starting margin gross $XX confirm out get very as to Is so those target gross the that's Thank the in million EBITDA. on in me, just to at there or the much, stands is for at just the two the profit within for to I equation? being great next there. growth, delta three and one in achievable key three playbook long-term the of

Christopher Barnard

[Indiscernible], it's correct. the numbers obviously, necessarily would on Yes, say Chris. question. three. are growth would Thanks And for balanced, all those I evenly that rely not

such and market automated base capabilities operational we capacity expand really that investment that of number the last been hence opportunities aggressively. a our current services of have marketing think now I partners the years little ongoing see we've large installed bit increasing in a and over we developing in more to the

about that portfolio But element. comes well. partners a that as still larger the new long of cross-selling also And excited list we're after. more we're again, with net opportunities So going there's of partners

So it will be gross that profile. a balanced to approach

Drew McReynolds

we the but Super. to the should for very-very forecast? helpful, probably Okay. is maybe terms for our into keeping anything there typical much precision, there Erick a almost will the color, pacing give of you and that outside impossible guess just, And stands on, in anything quarterly your else XXXX, outlook, I of, know thanks all and great factor I to see just business is momentum the that out from perspective just in seasonality, to if as

Erick Georgiou

Yeah, hey Drew, here. Erick

think, here I think see as our in in expect away in had And with how QX We factors expect to steer historical we any in-line from I very, the coming standpoint, of strongly for previous is mean, certainly going we quarterly there. a significant providing of quarterly over kind we our to I on us. a as quite bit the we're call, would quarterly indicated years. described But full-year, be to basis a year-over-year on we'd growth little guidance terms very well.

last is as in to of that's but continue seen what few think, I quarters, provide Sure. over growth, about there. much the year-over-year terms going want So we've as to I'd

Drew McReynolds

Okay.

fine. perfectly that's Now

the can you around in full XXXX. would clearly what in of of any in be I'm assuming launch put agreement given in QX, assume EVA there it contribution was in of lot EVA it In that, any of or in you've EVA I the that QX? that anything terms the of context? terms got that, Is would quantum rate planned you relationship run helpful, kind do capture terms incrementally of can't a November, but didn't the

Erick Georgiou

I products to But launched. was front don't with of date them. that a mid-quarter, small quite exact was It have Drew. have we me. launch number Sure, in slated Yeah. probably of the

we believe traditional at I our the So gate. buy only started service with

activity, And about six had so weeks to we only continuing and that up. that's of probably ramp

Our to more them throughout XXXX. expectation is with launch products

certainly was small fourth it quarter. the quite So during

Drew McReynolds

you Okay. Super. Well, got I've Eric.

NCIB, the buyback? where be to the the Wondering, been the active it only points back any in during you're there's trigger On tactical MDA. certainly don't to just bit on use change, MD&A what more to to to point are I doesn't near get limited going little term. the being think a

Erick Georgiou

Yes, thanks Drew.

us on want now. For recovery Eastern In guidance sure would for our as a well. terms to allocation for the and see to at board going strategy board I, in or NCIB capital we're next line our I more regions agenda Rob, pause other looking bit certainly and to still six on is the that months and forward. Europe three of up Chris, in in our -- But with have conversation, expect our firming

Drew McReynolds

obviously who traveling I take don't of Okay. for activity list know But your this anybody all out to I in lot partners. not Super. from one who here know is don't one. of here. me a One last the March. for there And wants

this all So of good. period,

more we through the what there's the eight higher on a to that just this some get getting sustained six going activity last through be point effectively pipeline? XXXX flow or of forward? the Loyalty to in a in are in more hitting to climbing back extent up sense they much that's going are using these at about that out DSE of level comp pent-up coming a level and activity, tougher pent-up to here quarters, perhaps some of a Programs, talked less can Or You've programs partners Trying than of were past. to we're

Robert MacLean

demand, and I continuing, seeing Yes, think well transactional continued recovery performance, pent-up around Drew our of ambitious into your the XXXX. just financial we've We improving you see globally think Look, performance. I Yes. kind Rob. it's and commentary that is demand from partners on because the views feedback see quarters very we're generally, we're where to number that

been pick than being about continuing and XXXX definitely talking air aircraft That's think travel travel sure. growth, for earlier that of overall on like travel staying excited we're to back into the us, terms in be for just performance all way In saw in anecdotally, We the I leading XXXX, see recovery. aviation happy we hotels. and really about and here hotel you more up

most generally travel travel business in still are back a recovery to not coming expecting amount of next be into a view. travel really from think lift late I prognosticators year, our so tremendous

I that the understand second I pent-up question, sorry. think -- if

very pleased the and backlog, loyalty on of business terms from prepared mentioned I here demand as if XXXX. understood new that in In development and we've and the products think efforts industry. our remarks, with in been, for I services continued bringing partners I my That's the

us You see products the I new don't I pandemic. and and we to about deploying shifting we're to XX% entered Chris more see and as -- into larger more that don't to should see footprint that than continues with continue expect as spoke partners. existing partners increase as plus -- our

new us with cross-sell partners more looking for their more to our increase logos, as and of leverage more are growth opportunities their we be of to channel strong very new proving that membership. that's get that As provide for continues a kind and to utility many programs

growth. terms a of that So, see I waning in don't

I think it's momentum that and we're to our keep a hard described, capture I try the to tougher foreseeable as going future metrics. pretty don't you this. see quarter-over-quarter in -- building and on maybe just

Drew McReynolds

Fantastic. much. you Okay. Thank very

Operator

Gavin question next from Fairweather line proceed our question. with And comes Cormark. with your Please the of

Gavin Fairweather

of out my guess strong we've I'd to timing for nice volume I I your three pin It's travel assumptions that question the in long-term terms confidence relates of of of you, congrats see what results. a Hey, the on years start made in underpinning now, [Indiscernible]. kind just of the good the afternoon thought target. put and putting three-years on timing to

Erick Georgiou

Yes. Hey, Gavin, Erick it's here.

estimates come terms lot of see a in pre-pandemic certainly when So travel more back to we levels. of there broadly out

XXXX think with we've I our based timeline the research to are sometime partners a and in on there. done pointing external we're what most seeing

over bring to strong. think performed trying We comfort we've seen we're travel What at so the we is be leader with far recovery a the to we lead forecast. loyalty has loyalty curve be a travel, kind is been So respect how to how apply certainly us conservative in does quite with our going be of very some recovery.

kind later XXXX so that And would in estimate of be now, year. probably right our

Robert MacLean

We such the and and in contributes reiterate a the is the good optimism it's deployments that marketplace place, continuing. Rob. we To our in existing that XXXX the core in long certainly strong and forecast these going we comments seeing forecast then high Those example. confidence our that driver, recovery the the give performance around a put alone high on the XX-plus course Chris's in Gavin new normal -- partner Frankly, the evolves three opportunities, engagement and to confidence business, into travel say And really drivers but in we're launches on on the term. over degree 'XX. of of short-term, footprint. see that how our how of put I'd overall growth confidence cross-selling stuff us difficult But 'XX, we to long-term performance. business that of databases, optimizing XXXX, degree that out more in deeper

pretty on recovery objectives those continues I the growth we're curve. [Indiscernible] and evolve, So only we're as think long-term strengthens the to confident

Gavin Fairweather

of you super I programs, be top the I'm have here three good thoughts replenishing to that's are next. trends And markets the doesn't you've had bit XXXX, been there want new that pipeline any whether Just in that's the Obviously there's I at guess down in curious slow the to for just pipeline, of of curious, given tracking success term. going sound sales really did the there. great, you're the expand about helpful. ready any lots in chat a third? like progress of about It slowdown Is to That's near that here? how kind Erick the hot a going kind Fall? from to -- of

Erick Georgiou

good Yeah it's -- question. No, a

short think seeing slowdown. not a is, we're the answer I

and and pipeline We close very good migrating and into well. had very top XXXX, of development the pipeline through -- in partners the are of team's terms we filling through the of success really XXXX in business have our felt as They cognizant into launch.

As your with pretty question, momentum. Loyalty comfortable how evolved. I is per we're gaining think broadly that's

and move spot motive. into currency-based more for Larger more programs a profit that companies with seeing we're sweet So, us.

building So, us gives umbrella, of funnel. more those opportunity that as move the top that organizations keep to of under the an

filling feel a that services. about logos side pipeline, it and pretty very coming that funnel as products new good when think also So, new it earlier, but I of the we Chris is things, and generally And mix on the good said and certainly, then day. much of into funnel, the we're the pipeline of every

Gavin Fairweather

of continental front? gross then tied And what's help just over on in the great. us be given would sensitivity just That's Can you Europe, transatlantic you for lastly, us or travel? your how me, to maybe can out business? Or other much profit traveler, going on Europe on refresh that

Erick Georgiou

Yeah. we right of It's there's Hey, number be Ukraine. so partnerships here have think small Very less activity don't again. far exposure don't that much there. X%, coming Erick than very Russia now region right exposure any Gavin. any really of of small in terms Would sort now. We or out in

But routes impacts impacts major we're so current at partner of so in our still any far It it seen something really haven't far, is in good. terms QX. of base. looking whether We

Gavin Fairweather

Thanks so much. Great.

Erick Georgiou

That's good.

Operator

Prestopino Please from Our next Barrington Gary Research. comes with question of with line question. the your proceed

Gary Prestopino

I Hi, long-term want to I'm sure make on right these just targets. guys.

'? we're 'XX, ', 'XX, exiting that exiting XX 'XX, is year So looking at event four a from XX here? So

Christopher Barnard

XX. - Exiting A

Gary Prestopino

talk or XX products launches, drove Okay. you about real Were level continue Alright. that a and partners, there this And service all expect then could your product from XXXX? the services really incremental that? would any the experienced of revenue, deployments into strong that that really uptake has and tremendous to you maybe

Robert MacLean

maybe and It's that the by start, well we're of the some very we think when -- Anything add products in can jump take that I'll Yeah, we market. the color. the been broad launched pandemic I'll Erick pretty the Accelerate on that then product deploying, has to received

I marketplace, industry. We've significant think XX companies pretty with we've got short more deployments in --I amount that more in a the and are of exchange engaging the activity order. of as loyalty think approaching had

strong very Buy, performance on products, of innovative we growth and BILT seen efficiently, products launch with as in I our where their the Program to new and relationship bit, launch and that's we've bring a added and move exchange the quickly new kind we of an we've number BILT, think business. core leveraging Gift then, services. on Transfer and very Loyalty which in able kind emerged year interesting is to be last of a partners to the we'll and and to and platform here And of continuing see, those believe, partners

in mix So, marketplace. have in of broad terms pretty different it's and the kinds we deployments a that of products

see we the as forward that build. think footprint continues I to accelerating, going

been for be and is confident Our it's one been rest highly partner, the or for an type products product services, that to Anything XX we've partners. always relevant XX likely if relevant XX our or very Accelerate highly going of

us deploy existing spending of demonstrating of really it, success and that's the results helping lot products footprint. that have our we our a products demonstrating team and So time into and a of are in more people more

on continuing low good XXXX. approach of that that XXXX. as XXXX lots is were really in as here pleased stuff So we And

Gary Prestopino

pandemic. you than the than And or -- you're Okay. then started when be I mean XX% you applicable would exited it when bigger

big here. we look you but revenue seem adjusted versus XXXX. be terms trying just profit million So were anything and total you certainly guess of your that that be at where changed would if at least you of in more achievable Is EBITDA, a would line? generation, seem where exceeding that get giving to XXXX. should if are reflection the It year-end not in I XXXX adjusted is and at that in EBITDA But was the XXXX. guidance, $XXX it a you're XXXX, in number of about $XX XX% XX% know generated I revenue million in you're in impacting on about looked what EBITDA did you that pre-pandemic, like you bigger net gross adjusted there's differential would structurally I'm marketing any activity or it at, versus that really that that's is revenue there

Erick Georgiou

Hey Gary, it's Erick here.

bit. a just kind providing guidance maybe comment on will So of little touching your from XXXX clearly, away I but any steer

the GP, comparing year how think under million. under just was million XXXX, finishing to at which $XX I exited that just we of So $XX

throughout XX. we million $XX of bunch We've way was on about new roughly. and XXXX the think is, really So and products XXXX exiting layered services a it

contributing our in so XXXX. XXXX continue to so is And and that to certainly profile economic do in will

I and all There's from a underlying -- estimate partners XXXX. or lot line, to of that to number, partners of of a what's partners more probably after lot a that, nine think XXXX. yet. net it's EBITDA have in existing growth are many grow were ten. simply pre-pandemic lot business kind what's how of room If a our hit have of is not impacting are levels I the Most that

as most respect with hasn't as the XXXX, XXXX to certainly operating strong partners leverage wasn't So simply back come because yet.

I As lean think in on outlook leverage our we there, is think would that what implied and it long-term, I the about outlook. long-term

think got or so the or mid-XXs to I roughly you've XX%.

to but necessarily And expect what leverage operating going be we straight so, XXXX our to of terms are. we look to outlook in XXXX. that line, not improvements targets It's long-term over see do a in

sure. For

Gary Prestopino

end And of of were where then, you ended Partners versus you terms us XXXX? up numerically in XXXX in Loyalty you could at just give what the maybe

Erick Georgiou

We've I closed off-hand, of Gary, Loyalty got platform. either it. Yeah. way a partners had contracts We've or take That certainly offline. hasn't into better we the can time. that And XX one number of in Program on it that over way with commercial partners and think our the we report have integrated merged. don't roughly certainly couple we

had but so. the last we've has years over or a couple, think grown that I generally three

Gary Prestopino

Okay. you. Thank

Operator

Securities. Please comes Greg your Gibas with question next from Our Northland line with question. the of proceed

Greg Gibas

for Hey, guys. questions, the thanks taking

comment little QX prepared are activity the in further in in that on the on levels seen seeing you promotional you then are where comments, in your And you against this touched of comment Omicron bit impact wondering as had a QX if could also, QX, a on but could result or QX? You if surge.

Robert MacLean

Rob. Yeah Greg, it's

pretty is I first commented quarter, impact. nominal then in into were place. quarter one obviously bit pretty the fairly I it think and the proved would proven prepared to based remarks was the to through we it, in a October fourth it we on Omicron, than And largely so a be seen what say carefully, it temporary the blip pretty September, a watching like in minor we've was be first Delta in

I would the be suite So response Omicron. shortened kind say it'd of

able to sets different positive offer to think marketing program revenues and and the that we promotional taking better have and and we around viewed -- teams see here the Well, and first uptake seen every and vast with Loyalty year partners, to place plans and got directly, as day think to in and to running, are engagement. into see more potential and sophisticated We've I'm about majority much to of in that have in on and approach just they activity teams, data, Campaign utilize corporate overall our of been adding in-motion would a plan data better loyalty overall XXXX activity, Program of campaign very we're happen. much Loyalty that our and speaking, leverage we on continue going about industry ambitious more of our on in That's continue Program marketing quarter. profitability the were the now. campaign and and their from being the a reach and X, think long-term expansive to some speaking Campaign versus and advantage we have that refining a plans, Generally our so and at now demonstrate kind I we what we it approved we're length there, business, change as to X and where posture annual Metrics. going success that more their merchandising XXXX quite translated what our think are I constantly these XXXX. partners to the expect and particular, the of partners our really campaigns our and in it. access the merchandising view full been When on analytics contribution getting through in marketing just kind of memberships our I getting merchandising better

and last with our more the of of Erick benefit the bit, efficient the of terms of comments, over of offers finding where profitable spoken market. we and year work this how ways putting our getting more one we're like target kind think put we're what partners terms a in in has campaigns data place. We're analytics a be we of to I in for in how the and feel bit

I us. think for great that's for is partners, our news great news

but kind be allows of way to active, very active it responsible. is fiscally in us so And very that to being a continue

that see So during the I to course continue of 'XX. you'll happening think

Greg Gibas

And if Got I it. -- high-level could helpful. Very question.

could new or is on far you partner visibility partners. out if with maybe launches wondering how touch Just new on your services existing

year-end, the about very being six strong. gauge multiyear, visibility how talked on your them? to -- about should just we months You trying til think I'm out, pipeline is

Robert MacLean

are -- to terms one development happy I say. pure there's XXXX our channel, of the launch new partners through cycle good from that think and standpoint, right of products in in busiest groups in the a pretty we're visibility the company delivery that's new in now, and

'XX, into rest a that'll But evolve the the those good year, in 'XX, as visibility we But and to but through think, quarter XXXX. or you slots. even slots 'XX. sure end product lots certainly as would we've little X, for be we to out bit get pretty as expect out identified the partner of of get into I 'XX, of into Y and that closer got the being last in of

Greg Gibas

Okay. Great. Thank you.

Operator

Ed Woo Capital. Please next proceed [Operator with line Ascendiant comes the question from Instructions] Our your question. with of

Edward Woo

the quarter. On Congratulation

and be Are in well pipeline verticals. industries? seem hospitality at those about to hotels doing looking and areas? extending the non-travel partners You you bring to travel What and very guys new in

Christopher Barnard

of as Chase rental. Thanks a a of a run rent Rob one Bilt the and Bilt as key redemptions key transferring Rewards. is a We've exchange is adding earn Rewards, of new banking and which our plan Program, to for been the well. Rewards, Rob we Erick, and of talked into Bank the just that expansion activity the lot. And Bilt seeing And reminder, element Citibank with majority a we People a Middle their Program number ThankYou bit a deployments for Program calls Eastern of regularly I exchange pay side, the mentioned little our mentioned platform. our activity new couple Loyalty partners. Loyalty are on is Certainly vertical programs some exchange Ultimate

a key retail that that's hospitality in in financial is -- usually, and the exchange So out, still now space. Bilt the is the while of an travel the way the with services funding it's in of not portion, The more half and activity.

non-travel So as adding we're an redeem and side options seeing of to ancillary that allow the growing our redemption. fence also programs platform to non-travel onto for

I where Hilton, non-travel for that and take shift of see there talked it powered your think and them to the for we've example points ability as expansion that an about we redeem we've some lift can some opportunities activities. travel-base

Edward Woo

luck. questions for answering Great. Well, wish my good I you guys you. continued Thank thank and you

Operator

like I remarks. call back This over Okay. our Mr. the would question-and-answer time this turn MacLean concludes now closing session. for to to

Robert MacLean

speaking look forward to and call today's we When to quarter Thanks you. again future. our with not-too-distant joining for listening for everyone thank to like We'd results Operator. in us. report first Thanks, the

Operator

and ladies this teleconference. today's gentlemen, And does conclude

disconnect your may participation. for your You time. lines you this Thank at

Points.com (PCOM) 10 Mar 222021 Q4 Earnings call transcript