PCOM - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone. Thank you for participating in today’s Conference Call to discuss Points’ financial results for the First Quarter Ended March 31, 2022. Delivering today’s prepared remarks are Chief Executive Officer, Rob MacLean, President, Christopher Barnard; and Chief Financial Officer, Erick Georgiou.

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

Before we go any further, I would like to turn the call over to Jackie Keshner of Gateway Group, Points’ IR advisor, as she reads the Company’s safe harbor that provides important cautions regarding forward-looking statements. now. ahead go please Jackie,

Jackie Keshner

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

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

Rob MacLean

and Jackie, Thanks, afternoon, everyone. good

my QX on Monday. today our a will to XXXX here we I on While discuss transaction announced the moment, comments which are focus performance, in we touch Plusgrade will on Erick

our Plusgrade and Plusgrade’s perspective, its offerings improve as a From there target with experience has optionality unique our are This an company future. their enduring in and in with the offers extensive full, support few is per our cash loyalty of strategic industry. and a XX-day the likely quality for transaction of Plusgrade, operating Points for close have a acquired consideration models, growing believe a our financial purchase Plusgrade. transaction, large to operational Xth. approximately complement and passengers, are expectations agreement the operating US$XX and belief base definitive of our are the the we growth in to perspective, global respective the volume-weighted which in a collaborating a will who program will ancillary historic a other for booking XX% partner senior similar price all of the capabilities partnerships core partners. million the revenue premium our to well companies built unanimous US$XXX robust seat into be merchandising entered in have of we forefront of share, disclosed, Points terms Plusgrade market Points as technology provides performance leading the average deliver reflects With that we both, we acquire a May moment and total airlines benefits platform an or by travel Plusgrade. representing continued place transaction, management customers strategic are Under and premium From on to for at to benefits As businesses. to as to the strong Board

believe core enable with more breadth execute purchaser diversification. financial also very a have We growth over perspective, is for substantial we and on position greater better us shown Plusgrade the expanded the backing a today. them the premium drivers Novacap and strategic of stronger transaction are the market our occupied current the with purchase value price, support for shareholders this from offering credible liquidity. pandemic of the our Plusgrade with From our CDPQ. both, will opportunities and value significant a grateful we to us lows certainty offers cash from transaction And resources, to

operations As model industry our operators, among that expect base, like In in incremental and growth. worked team perfect opportunities for strong current appetite provide thank come our combining pipeline, helping enter increase we and the travel for execute to Plusgrade services with demand to to strong consumer scale business, entire this prepare and significant deployments to reach growth we has of we continuously as robust today with service have operating continue at business time. ramping a platform initiatives. our we our are partnership next the in our XX team our enhance will an within growth and partner plan in position on market. tirelessly to I’d years cross-sell and our new to invest the over Points has us support of to the hospitality In find we phase

service Plusgrade industries leader revenue Joining and is future. services adding provider what exciting forces will with in financial generating and a an truly rail partners become value global of in the hospitality, and airline for

hand on Erick? supportive to group shareholders the over number first quarter. the will for will of have performance from pleased provide our who and highlights outcome. compelling financial benefited a will review have of additional our Erick, I Christopher we Additionally, now it years this over partner to are past some and activity. And created perspective then briefly

Erick Georgiou

joining, thanks Thank you, for Rob, everybody. and

are always, figures in today’s dollars. all U.S. call As on

continued our the sequentially spending an year-over-year compensation recorded year-ago and increase recovery million fourth stock-based for $XX.X metrics expenses. basis. in year-ago The improvements than to for increase in million, our growing start more from from during the $XX.X was year in quarter. million marketing the market, primarily quarter. XXXX in of increases $X from quarter to in our have sequential in of and of higher quarter profit Gross of an our a $XX.X hospitality the the year-ago we and organic and of strong tied remains of wage was Our the pandemic, quarter Across increased over to profit our the performance had quarter, helped The to by core quarter first trends results years. $X.X contributions at the effect revenue first whichever $X.X continuing X% and the attributable The two deployed $XXX.X strongest in record period, driven of in the on generate the pandemic, million of Total from growth the also were $X.X and reflected quarter and the million, million, benefit first pandemic first quarter. in we operators. to U.S. over records total XXXX quarterly the ongoing over $X.X the and of million XXXX. during increase quarterly many the in significantly platform, newer expenses a to the services on many of of services. Operating sustained both with easing XX% airline and our primarily execution ran increases from partnerships, fourth growth. in both, ago from the restrictions EBITDA the came benefits quickly offset subsidies our year-ago in-market activity previously quarter the increased demand XXXX XXXX. past of and to a our gradual ongoing in across increase drivers XX% XXXX Adjusted the doubling first quarter and million, the products our gross by quarter, operating generated we profit domestic driven continued recovery revenue million for tailwinds, performance partners up reflected quarter We significantly The gross strong largely which

key growth metrics, activity drive million driven sales at recovery the XXXX. QX, activity and funds sheet, by Turning continued to approximately increased strong by transaction To quarter of million related we our activity tailwind, strong the significantly summarize quarter at we end balance financial the the end across across our our of total generated first during approximately supported the at performance, which up $XXX sustained from had to strong $XXX platform. marketing available

very with to We our strategy by value the growth a on and and and attractive first even While strength. quarter from to we With today’s that, we Rob’s environment Christopher. financial echo progress of drive transaction macro chapter scale valuation predict, growth of difficult our solid Plusgrade remarks, over and fluid encouraged for our our enter we remain at with that position forward Plusgrade greater shareholders. results comes will earlier position, believe next believe remains The with resources. a to I’ll Plusgrade it look working provides strong turn to

Christopher Barnard

options on activity highlights Emirates exchange for our as deepened have East Thanks, the platform. we the enabled our Etihad momentum program. in Airway’s generated Erick. the quarter and sustained option some growing exchange program as Airways an of of To our the deployments. In Air our footprint Middle Middle Miles review AIMIA’s first much East Guest quarter, joins Qatar Skywards and we commercial February with Qatar the from exchange

including will and subsequent to we addition, products, Gift, of the service as agreement, signed Top-Up partnership first our quarter. deploy we Accelerate transfer Under Citibank’s our East, the Turkish option Buy, several Middle with as ThankYou program the we In this in out Anything. our also core in Airways, February. another Kuwait progress Rounding end as of new program offerings Miles&Smiles added Airlines’ Transfer well for

can we online. With North new to in running partnerships, the this have booking car several earn for or Air existing members our January, deployment, of we making Miles with redemption car complementing product miles now years. their Canada a service Turning long booking American our when program some launched hotel redeem powered

longstanding in also multiyear extension. Bonvoy As to we our we partnership renewed a March, Marriott announced with

for been directly with services expanded we recently, in enhanced their our capability have our fourth As we’ve Marriott for previously of actively over decade, shared, quarter adding engaged booking flow XXXX. the a most them well Top-Up end and into and market

Travel, international service additional announced collaboration for Air agreement new launched we Finally, our in last some offering booking deploying service we EVA with March, which first made through Rocket year. a under late progress hotel our

forward. represents about and Rob announcement week employees earlier mentioned, and that feel our excited we’re it and moving this opportunity a have our clear partners for Erick As

been such our able backed wrap shareholders. blue chip thanks many certainty We’re up by significant offering I’d value to current and is long-term our a like long-term by prospects offering shareholders. growth shareholders for our strong liquidity. engineer for up also investors, pleased and to to both The premium reflects have

the call support for Operator, the you received now way. for along questions. open can appreciative we up from very Thank you much. the we very We’re

Rob MacLean

Thank providing appreciate growth chapter everyone We’d for on our forward like the to to We trajectory. joining again enter the operations thank your for listening today’s and forward. look And to our we support updates Thanks we today. you, moving as us additional operator. of next call. transaction

Operator

for Ladies then conference. you. that joining us. you today’s concludes and Thank Thank gentlemen,

lines. your disconnect now may You

Points.com (PCOM) 11 May 222022 Q1 Earnings call transcript