Q3 2020 Points International Ltd Earnings Call
Good afternoon, everyone.
Thank you for participating in todays conference call to discuss points internationals financial results for the third quarter ended September Thirtyth 2020.
Delivering todays prepared remarks.
The Executive Officer, Robert Blake.
Hi, Chris.
Christopher Barnard.
Chief Financial Officer of Georgia.
Following their prepared remarks, the men's Richie will open up the call for any questions.
Before we go further I would like to turn the call over to Cody Acree of Gateway Investor Relations point Internationals IR advisor.
And she was the company's safe Harbor provides important information regarding forward looking statements.
Please you May proceed.
Thank you please be reminded that remarks on this conference call may contain or refer to forward looking statements within the meaning of Canadian and US Securities Laws management May also make additional forward looking statements in response to your questions. Although management believes these forward looking statements are reasonable.
Cool and such statements are not guarantees of future performance or action and are subject to important risks and uncertainties that are difficult to predict.
Certain material assumptions are applied in making forward looking statements and may not prove to be correct important factors that could cause actual results to differ materially and the assumptions to use.
Used in making such statements were included in our third quarter financial results press release issued prior to this call as well as other documents filed with the Canadian in the U.S. securities regulators, except as required by law. The company does not undertake any obligation to update or revise any forward looking statements whether as a result of new information.
Future events or otherwise with that I'll turn the call over to points, Chief Executive Officer, Rob Maclean Rob.
Thanks, Cody and good afternoon, everyone.
We continue to navigate a challenging market environment in the third quarter as we've often stated the timing of launching new partnerships.
Programs fluctuate quarter to quarter as does the promotional activity with current partners.
These fluctuations have only been exacerbated by the pandemic.
As you might expect our transaction volumes remain down from pre co bid levels across the business.
And while they were also down from Q2, we are seeing a strengthening.
Being in Q4.
Notwithstanding the progress we are seeing in the near term, we still have limited visibility on the timing for recovery of our business and industry.
However, our teams remain very active with business development to drive new program launches in partnerships and our pipe line continues to be very strong.
And at this point in 2020, we've launched four new partners, such as Air Canada, Qatar and have expanded our partnerships with the loving 11 existing partners with 12, new products or channel expansions.
The remainder of the year in early 2021 continues to be very busy on this front as partners continue to elaborate.
Our products and services to drive critical revenue gross and member engagement.
We continue to expect positive adjusted EBITDA for fiscal year and full year 2020.
And we will continue to prudently manage our costs and liquidity, while supporting our partners throughout this difficult time.
At that point I want to take a moment to share how incredibly proud I am of our team members dedication and tireless work on behalf of points and our partners. Thank you.
To provide broader context on the industry, our airline and hospitality partners revenue streams continued to be impacted by the pandemic.
As many of you have likely seen without the passage of a new federal where these package in recent months most airlines that base layoffs indoor furloughs, which means that our immediate focus and priorities have been to manage their operations and workforce.
Within this environment the value of loyalty programs has remained resilient and pursue.
Some even crucial we've continued to see operators leverage their loyalty assets to help their businesses stabilize in the near term and prepare for the return of strong consumer travel demand in the long term.
Similar to what United did with its mileage plus program last quarter, both Delta at American Airlines that recently announced plans to.
Rich their frequent flyer program assets as collateral for their respective 9 billion and nearly 5 billion dollar debt financings.
We continue to believe that announcements like these signal the enduring importance of loyalty programs around the globe. These.
These program size and profitability make them.
Crucial sources of liquidity for airlines and they play a key role in sustaining member engagement among our partners customer basis.
Loyalty programs also help operators prepare for changing travel patterns and pent up consumer demand reached.
Recent research from Sky scanner has really reveal increasing levels of one way.
Logistic and regional travel across the globe.
With customers using shorter term planning horizons to search and book these trips in.
In situations like these travelers can use their accumulated points and miles to book last minute trips, many hospitality and travel operators have already extended their loyalty programs member status through 2021.
In order to prolong this opportunity and in some cases, even lower the redemption requirements. The further encourage near term travel.
Although miles flown continued to be markedly lower from historic levels. We don't believe that desire to travel has gone anywhere and neither will the loyalty programs that help facilitate consumers.
The level plans.
As we continue to monitor the industry landscape, we have focused on both establishing new partners and deepening existing relationships as reflected by the launch of our extensive multiyear partnership with Qatar Airways in the second quarter and the recent deployment of our enhanced customer service program with Delta.
These and other recent initiatives demonstrate that we are continuing to execute on the strategy. We laid out in early 2019.
As we look to the months ahead, we remain dedicated to supporting our partners and our team members throughout this difficult time.
Points has built a strong and resilient foundation over the past 20 years and we are much of this.
So the strength of our partner network and the dedication of our team.
While we cannot predict exactly how the journey ahead of us will unfold over the coming quarters, we are financially and strategically well positioned for the recovery. We continue to believe the success, we've had in bringing new partners and products to market, coupled with the revenue and profit generating nature.
Our products and services will position us at the very early as part of travel inevitable recovery.
I will now hand, it over to Eric to review, our financial performance for the third quarter and then Christopher will provide some additional highlights and perspective on our partner activity Eric.
Thanks, Rob and afternoon.
Everyone.
Unless noted otherwise all figures on todays call are in us dollars and presented in accordance with IRS.
Operating revenue in the third quarter of 2020 was $37.4 million compared to 40.9 million in Q2 and $98 million in the year ago quarter.
Okay.
Gross profit is a more appropriate proxy for our topline was $5.7 million compared to $7 million in Q2, 2020 and $14 million last year the.
The sequential decrease reflects changes in the timing and strength of our promotional activity, which is most prominent our loyalty currency retailing segment.
Orders as a reminder, before the quarter to 19 pandemic, our monthly and quarterly results can fluctuate period to period, depending on the timing richness and number of marketing campaigns.
As a proportion of total revenue and gross profit mix generated from these marketing campaigns has increased during COVID-19 fluctuations.
Revenue and gross profit generated by this activity has been exacerbated by the COVID-19 pandemic.
While our monthly performance for the third quarter remained well above the lows of the pandemic in April activity across all three lines of business is well below our pre covert level.
Adjusted Op.
Operating expenses in the third quarter came in at $6.9 million compared to 6.7 million in Q2, and 9.9 million in Q3, 2019, as we aggressively manage and reduce expenses.
This quarter, we recognized approximately $1.8 million related to the Canadian emergency wage subsidy programs come.
Compared to $2.3 million in the second quarter of 2020.
And these subsidies were recorded as an offset to employment costs with the Q3 funds collected after the quarter end.
At present funding under this subsidy program has been extended to December 19th.
We expect to remain eligible for funding up to this day.
Date, but anticipate recording a lower subsidy amount in the fourth quarter compared to Q3 levels based on the current funding formula.
In addition, the Canadian government has indicated their intent to extend this subsidy program until June 2021.
While details of this expansion are still not known we are monitoring it closely.
Looking to the fourth quarter, we expect our monthly adjusted operating expenses to be in line with Q3 levels, excluding the benefit of any wage subsidies phase.
Based on that run rate and after factoring in expected subsidies in the fourth quarter, we would expect to generate positive cash flow when transaction volumes and gross profit are approximately.
50% to 2019 levels.
For perspective monthly gross profit was as high as 70% during the second quarter, but averaged approximately 40% for the third quarter.
Adjusted EBITDA for the third quarter came in at minus $1.1 million compared to 300000 in Q2 and four.
And $4 million in the year ago quarter.
The sequential decrease was due to the aforementioned changes and the strength and timing of our promotions, which negatively impacted gross profit.
And to a lesser extent lower subsidies recorded in the third quarter.
As Rob mentioned earlier, we are still on track to be adjusted EBITDA positive for the full year.
Total funds available which include borrowings on our credit facility were 68.2 million at the end of the third quarter compared to approximately $107 million at the end of the second quarter and $86.8 million.
At the end of 2019.
We elected to repay 5 million on our credit facility during the third quarter, bringing our.
A point standing balance down to approximately 30 million as of September 30 of 2020.
The sequential decrease in our overall cash and liquidity position predominantly reflects changes in the timing of our promotional activity and the resulting impact on gross sales activity relative to last quarter.
All said we.
I remain comfortable with our strong balance sheet as we continue to navigate the effects of the attendant.
With that I'll turn it over to Chris.
Yes.
Thanks, Eric.
The last number of years, we've consistently communicated three core growth drivers for points. The first driver is consistently establishing relationships with new.
We will be programs are merchants around the world second.
Second is launching net new services with our pre existing partners and third is consistently improving or expanding services currently in market through enhanced and automated merchandising efforts.
While these are clearly very challenging times for everyone in the travel related industries.
The last.
We'll move on from highlighted the resilience of the resilience of our business model.
And all these three drivers and contributed to both our current performance as well as established strong opportunities for accelerated growth once the global environment improves.
The third driver is pulling a lot of below today are consistent investments.
I'm in marketing automation, coupled with ever increasing data flows across our loyalty commerce platform has allowed us to drive promotional volume over the past many months and offer much needed revenue to our partners.
As Rob mentioned earlier, despite some month to month variability, we're confident that the rest of the year, we'll show increased strength heading into 2021.
Our first growth drivers, bringing new loyalty programs onto the platform last quarter, we announced our partnership with counter Airways privilege club in August deploying services to our LCR platform.
And it began to ramp up during the last few months.
Cribbage club members can now buy gift and transfer their Q miles through our platform to receive approval.
Rewards faster with dynamic personalized promotions driven across our loyalty commerce platform.
While we're still in the early days of this partnership it does represent another key win for us in the Middle East with the premium program. This region has been growing aggressively in recent years and we look forward to capitalizing on this inertia by deploying new and additional services.
Qatar in the near future.
In addition, we were pleased to launch Caribbean Airlines, and a new partnership with a broad suite of LCR services and we're excited to continue to add a leading north American brands were partner roster.
This was another opportunity to drive our strategic relationship with Amadeus and represents another step.
In a more fulsome integration of our loyalty commerce platform with a number of the Amadeus as airline reservation and loyalty systems now.
Next up with Amadeus is launching our LCR suite with Ethiopian Airlines, we signed two new contracts during the third quarter.
We're offering more details on this upcoming deployment as they go live.
While adding new programs to our partnering universe remains a mainstay of our growth profile expanding current relationships is just as important to laying a foundation for community growth.
We've also been very active here over the last number of months we.
We leased recently launched a new capability in our partnership with Chase Bank Ultra Awards program, which allow cardholders to receive double.
The original amount of points when they transfer their bank branded points into travel program Award currencies.
Throughout our longstanding relationship Chase has been able to increase its memory agent by leveraging our exchange services.
This newest capability allows us to expand that partnership and further deepen our presence in the financial services industry.
In August we deployed a program between get your guide a leading tours and activity website, and Alaska Airlines mileage plan, allowing users to earn miles when they shop at the get your guard site weeks.
We expect to be adding more new merchants to our network in an effort to drive both revenue and member engagement to our loyalty program partners during the period of reduced travel.
Our lock airline teams have been busy with the mileage plan program for the first partner to launch on our accelerate anything service that allows members to boost almost any of their prior earnings opening up more non airways for members to earn their favorite miles with the service members or targeted with special offers for additional miles based on their previous.
Month mileage activity.
This creates a targeted contextual non travel transaction that is efficiently driven off our loyalty commerce platform and we're confident that we will be extending this new revenue generating service to other partnerships in the near future.
Last month, we are encouraged to further expand our long term partnerships.
To ship with Delta Airlines, and the Skymiles loyalty program by launching a state of the art customer service program called Delta Choice. This new program will enhance the ways in which passengers are compensated for travel issues and streamline the internal customer service experience.
The launch phase of Deltas choice provide delta customer service teams with a more efficient.
This new loyalty platform by consolidating the tools processes and capabilities using concession offerings for delta customers.
Delta customer service agents can now compensate customers for travel issues with gift cards and the upcoming phase II will add the option to compensate customers time ops.
This expansion in the latest of many solutions.
Fish is powered for Delta Airlines over a partnership spanning nearly 20 years and Curt including currency exchange in redemption programs for the Skymiles members and an incentive program that enables merchants and businesses directly ruble reward their customers or employees with skybox.
Lastly, we recently launched a new service with.
Point, United Airlines for select members to add a monthly subscription to their mileage, earning options is premium service is a first for us and represents another new revenue stream. We're confident we'll be attracted to our global loyalty program customers as they seek to add more value to their programs and the linchpin to their recovery strategy.
We remain confident in the value of loyalty programs represent both to their members as well as Corporately and believe they will play a significant role in how our industry recovers from the pandemic driven setback the industry has suffered.
Putting new programs and market will add to our performance. During this time and fuel long term value even if they cannot initially perform at historic.
The levels.
As we launch new services and add new partners to our roster our long term growth drivers remain at the core of our strategy.
We are committed to maximizing the performance of our in market services cross selling to existing partners and signing new partnerships across new verticals and geographies.
All while carefully managing our operating.
Vehicle costs.
As we work to both strengthen our current partnerships and establish new lines. We are encouraged by the pipeline. We have built for the road ahead.
These opportunities and relationships remain key to capitalizing on the travel and hospitality industry's inevitable recovery and signal both the importance of loyalty programs as a key engine through this recovery.
As well as the resiliency of our business model.
We're looking forward to updating you along the way as we announce more industry successes.
With that I will turn the call back to the operator thanks.
At this time, we'll be conducting a question and answer session. If you would like to US question. Please press star.
One on your telephone keypad, a confirmation tool indicate your line is in the question queue.
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Our first question comes from the line of Greg to.
As with Northland Securities. Please proceed with your question.
Great Good afternoon, Rob, Eric and Chris Thanks for taking the questions.
In Q2, I think it was pretty clear nearly all of the LCR revenue is derived from future.
Future travel use so I guess I was just wondering maybe how you see.
Near term travel use picked up in Q3, maybe in terms of the breakdown between revenue and gross profit in future in near term use relative to last quarter.
Yes, sure Greg it's Rob.
I think when we we assess how the mileage purchases are the intentional.
None of the mileage purchases and how they will be used I think it's still very much for future travel and I'd really point to.
Not a significant lift yet in overall air travel.
The performance, we're seeing our partners still down 60 70, 80% in terms.
The volumes.
Certainly in the us and in some cases, even more than that in international markets. So I think the activity that's happening now it would be consistent with what we saw in the second quarter, where members are collecting that currency for future travel.
Not so much where the the next couple of weeks.
So to speak.
Okay got it and then I know you that you typically have a 60 to 90 day window.
Kind of a bit of visibility in terms of upcoming promotional campaign activity in the market. So it was just wondering if you know anything you can share there relating to partners that will be ramping their promotional activity in the foreseeable future.
Sure.
Yes, I think.
The fourth quarter as I indicated in my prepared remarks.
It's fairly you know looking much stronger I think we've got a fairly robust marketing and promotional campaign running really across the board with a number of our partners.
So.
That part of our business historically ebbs and flows as Eric mentioned in his update.
But we do when we look at October and then how the fourth quarter is playing out it's a pretty strong suite of campaign activity that we have in front of us here through the end of the year, which is very positive.
Okay, great. Thanks, guys.
Our next question comes from the line of Gary Prestopino with Barrington Research. Please proceed with your question.
Good afternoon, everyone.
Couple of questions here, and hoping I'm going to sound intelligence, because I'm not that familiar with the story.
As others.
There's.
First of all just that wage subsidy was booked in the adjusted operating expenses this quarter right. Even though it was paid thereafter is that correct Eric.
That's correct.
Okay. Thank you and then I guess, just as Im reading through my notes here, you kind of said that or I think you said that Q.
Three was above Q2 in a sense or was above the April level.
And obviously, probably May and June improved from April which was the bottom, but so with Q3. It looks like you know you were you were.
Basically almost flattish with.
With Q2 is that a function of that the promotions that you thought were going to come on or or or promotions didn't come on that would have driven revenue growth sequentially, a little bit higher than where it was in Q2 I'm just trying to understand what's going on here.
Yes, Hey, it's Eric here again.
The way I would think about.
Got it and perhaps starting with Q2 I mean, obviously, we were happy with the sequential growth we saw in that corridor.
Normal times for our LCR segment, we normally see an ebb and flow on marketing campaigns, and what's that end market and the consumer response to that so.
April being the trough at roughly 20% of 2019 level certainly we're well ahead of that now what youre seeing really in in Q3 is within the margin of our expectations for when we would have expected for Q3, which again is just how that loyalty currency retailing.
Actively works.
Recorded or or or post quoted from a variability standpoint, I would add on there Gary as we reported in the second quarter June was very very kind of robust marketing campaign in place with a variety of our large partners and we saw some really good results on that there tends to be a little bit out.
It's kind of up and down as we migrate between partners. We don't typically run aggressive campaigns back to back with partners and so some of that that was finishing in the into Q2 starts to move it back into play at here early in the fourth quarter and so I think some of that is what's driving what we are seeing positive.
Result, wise in Q4, and so you had some little bit of a gap there in terms of how the campaigns ran through parts of the third quarter.
Okay. Thank you.
Our next question comes from the line of true Mcgrath, Rick Mick Reynolds with RBC capital markets.
'cause. Please proceed with your question.
Thanks, very much and good afternoon.
Maybe for you Eric just to two points of clarification I missed the gross profit commentary and I think it was alluding to maybe Q4.
In your opening remarks, if you could just.
Just to clarify.
Try that and then on the government subsidies can you just remind us I missed the number for Q2 and can't seem to find in my notes. If you could just kind of give me that one as well.
Yes, sure so maybe starting from the back so the subsidy amounts.
In the second quarter was $2.3 million and that dropped to 1.8 million.
In the third quarter.
With respect to Q4 gross profit I didnt have any comments on that in my.
Prepared speech so I.
Yeah.
Maybe you simply must heard there Rob.
Rob spoke about it being generally a stronger promotional calendar, which we're seeing play out.
In October so far, but thats about as much as we've spoken to Q4, yeah. We expect it's Rob we expect the fourth quarter to be improved across all metrics and I think Eric conveyed as I did as well that we expect the fourth quarter guidance for the full year to be a positive adjusted EBITDA for the full year period as well.
Okay, No thats fine sorry for that confusion.
I know you know me kind of a month over month trend in the sequential improvement you're seeing into Q4, I guess for you Rob.
You know I know you probably don't want to give.
A year.
Every year kind of decline range for Q4.
But.
But are you able to I guess, just kind of being midway through the quarter.
Yes.
You know us pretty well with that opening statement there drew I'm sorry.
We probably.
Globally, we wouldn't go to that level of detail at this stage and again I think we've said since the inception of coated.
Our visibility isn't what we would like it to be and so I am not trying to jump. The question that what we do see at a kind of a day to day level is the fourth.
Fourth quarter is running in line with the activity. So we're seeing more activity with partners. We're seeing more partners engaged as we get here through the fourth quarter, we're seeing performance on the campaign activity improving as we get kind of some spacing between some some promotional activity that was very effective in the second quarter.
So we're we're comfortable in.
Looking ahead to the rest of the year, particularly this late stage and seeing.
A much improved fourth quarter over what we saw in the third quarter.
But in terms of kind of year over year numbers, I think I'd, probably be comfortable just leaving it at a country.
Continued improvement.
And look for us.
Figuring out when the recovery really starts in earnest is a is a bit tricky I mean, we're we're optimistic about what we're seeing here in the fourth quarter.
Positive signs out there in terms of 2021, but it's still very very early so we're going to be.
Fairly.
Pretty focused on just the next next couple of weeks next couple of months.
For a while until we get more visibility and we get some more traction in just a broad travel recovery, we're seeing pockets.
Recovery, but the.
The scale that we we want to see is not.
Beef quite yet.
Andrew its Chris just to add to that as well I mean, there are two parts of the business. Obviously, the the transactional performance of driving current financial performance, but also as we've talked about pre.
Pretty consistent deployment of new product features and new services and again, we don't see that slowing down.
They're in the fourth quarter, either that will be touching on some more stuff.
The rest of this year and into next year.
And so thats to Rob's point.
So that one thing that we can somewhat control in laying as much opportunity.
Out there for us as the recovery starts pick.
Down now into next year, it's a great point, we havent, we use the term around here pretty regularly lately in our business development and and commercial team are really very focused on a on a spring loaded concept and.
The pipeline activity I think we've got four or five new partners that we launched we've got.
Pick a dozen or more expansions with existing partners and as Chris indicated a number of new propositions coming on here in the remaining six weeks or seven weeks of the year that those are that kind of foundational work now while its not producing big numbers today, given covert activities, we feel really good about that spring.
Loading us and giving us a bigger footprint as the recovery inevitably as that recovery comes forward, we'll just be able to accelerate forward with that I do think and we believe we spent a lot of time with our partners to this process as you might expect.
We fully expect our products and services.
Early to put us at.
During forefront of that recovery, we fully expect to be at the early stages of the travel recovery largely because of the nature of our products and services. They tend to be engagement products. They tend to be revenue generating a profit generating products for our partners and so as we start to see some.
Some recovery, we think that accelerates.
The relatively quickly so.
We're pleased with that business development and pipeline development over the last the last seven months for certain.
Yeah that you actually addressed my final question on you know where you would be on the ramp up but does that make sense.
Three as a.
Kind of follow up on on that.
Is it.
I guess kind of.
Two things I'm curious about is from your perspective, and lets just generically say kind of the airline or or hotel vertical.
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Do you have any sense of kind.
Kind of milestones that these industries are looking for.
To be able to add the confidence that turning on the promotional tap and really pushing.
To load up volume in these industries is good bang for the Buck.
Or is the mine.
It made sense.
We've got to spend a lot over quarters or years to kind of convince folks to climb back onboard like give any sense talking to your partners where are they are on on on that nature of the ramp up.
Unit price.
Probably not.
And wait to those specifics I convey this I think where we're watching and seeing a lot of the commentary much like you would be in terms of where the airlines and hotels in particular see the timeframe for recovery and that ranges from.
Typically two to four years.
From.
Ceos from airlines and hotels can be there seem to be kind of laying that kind of a framework out. It does vary by geography. It varies a little bit by that business segment leisure or is that the expectation leisure comes back a little bit sooner and business travel a little bit later.
So I think thats been consistent over the last three or four months in terms.
In terms of timeframe.
Each of the partners are looking at different certainly are feeding back to us different metrics and different things that are important to them, we're seeing partners like United add some capacity back into markets like JFK and areas that they haven't been in some time, we see some of the middle eastern carriers being more aggressive.
As they see pockets of opportunity you certainly have partners in the UK that have said to us that as some of these quarantine rules.
Kind of morph over time, they'll put inventory and capacity in the markets, where there aren't in or a quarantine restrictions and that capacity gets eaten up very.
Very quickly so theres, a bunch of kind of anecdotal activity out there that we stay pretty close to and with our partners.
But it is anecdotal at this point so we'll stay close to the market will stay close to our partners.
We're pretty confident that.
They are still very good.
Rested in driving revenues from these low cost high margin opportunities like our products and services, putting a plane in the air or daily trip to a new market is a very expensive proposition were driving a lot of the activity that we support is a very profitable transaction low cost or is.
It's actually for them. So we again feel like we'll be on the early side of that recovery.
But it's not particularly consistent in terms of how the hotels and airlines are metric and are managing those metrics, Yeah, Hey, drew it's Chris I'd just add one point there is that.
Pretty much guaranteed that as they start put.
Putting more.
Enter into the marketing and getting people back they'll be focused on that database of very own of their best Liars or best stairs.
So it will be that loyalty database that will be better.
First second and third stop on the.
On the promotional side to get people reengage, they won't be a broad based.
Brand building reach out for sure. So we feel were going to be in very good spot.
And to benefit from that kind of focus.
On the upswing.
Okay got it thank you everyone for Chris its Greg.
Thank you and as a reminder, if you would like to ask a question. Please press.
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Our next question comes from the line of Ed Woo with Ascendiant capital. Please proceed with your question.
Yes. Thanks for taking my question did you notice any significant differences in regions in terms of your performance in the third quarter.
In the third quarter.
Yes, not no.
Not really I think the mix what we saw in the second quarter was pretty consistent in the in Q3 as well I think maybe we are seeing a little more strength in North America versus Europe Middle East in Q3.
This is Q2, just a little bit of the split, but but pretty similar add to what we had been experiencing early in the pandemic as well.
All right and then you mentioned that you feel more confident about your performance in the fourth quarter, it's a little bit stronger is that even including the fact that most of Europe is locked down right now and we're getting right.
Surgeons cases back in North America, or you think that people are looking take a longer term view in terms of.
Getting these miles now for like you said future travel and not necessarily near term travel.
Yes, it's a great question because it.
We make those statements largely on the basis of what we see.
Her and pain wise kind of booked in in the in flight. So to speak we have a pretty good sense of how the campaigns are performing here in the in the early part of the first quarter as well as what the schedule looks like through the end of the year, but you raise a good point that you know this everything is changing very quickly.
Thats just a fact that we are seeing lockdowns being reinstated in certain markets were seeing certain markets open up a little bit more.
And so it is.
It is a more fluid environment than we've experienced in the in our 20 years for sure but based on what we see campaign wise.
Agile wise engagement and plans with our loyalty program partners as we sit here today.
It feels like a pretty comfortably that we're in an improving quarter.
All right and my last question is you know you mentioned earlier about how obviously.
The travel industry in the U.S. airline industry in the us how.
Now to do massive layoffs because their subsidies ran out in October has that affected your business at all in terms of the people that you deal with at your airline partners or has it not really been a big factor.
Yes, it's a great question.
It's a it's certainly has impacted you know we have we work with them.
Fantastic people.
Throughout the industry throughout the world.
And unfortunately, the size and scale of some of the promo activity in some of the Big hotel chains as well as airlines has impacted some of those those contacts and relationships. We're hopeful that in many cases.
Those are short term, but there's no question that.
Some some people on the other side has been doing some great work artist.
Not not there when we're picking up the phone. These days so we've seen a number of those.
Situations improve where people have been called back from furlough, and we're kind of getting rolling but like any.
The business dealing with those kinds of interactions, there's certainly been a bit of turbulence on that front.
All right well, it's definitely thanks for information and I wish you guys. Good luck.
Thanks. Thanks. Thanks.
Ladies and gentlemen, this does conclude today's question and answer session and I would like to turn them back for vehicle.
Overcome some clean.
Great we'd like to thank everyone for listening to today's call and we look forward to speaking with you all when we report our fourth quarter and full year results. Thanks again for joining us this evening.
And with that this concludes todays teleconference. You may now disconnect. Your lines at this time, thank you for.
For your participation and have a wonderful day.
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