Q4 2020 Points International Ltd Earnings Call
Good afternoon, everyone and thank you for participating in today's conference call to discuss points internationals financial results for the fourth quarter and full year ended December 31 2020.
Delivering today's prepared remarks are chief Executive Officer, Rob Maclean, President Christopher Barnard.
And Chief Financial Officer, Eric Georgia.
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 Sean Mansouri of Gateway Investor Relations points International's IR adviser as he reads the company's safe Harbor that provides important cautions regarding forward looking statements. Sean. Please go ahead.
Please be reminded that the remarks on this conference call may contain or refer to forward looking statements within the meaning of Canadian and U S Securities laws.
Management May also make additional forward looking statements in response to your questions. Although management believes these forward looking statements are reasonable 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 used in making such statements were included in our fourth quarter and full year 2020 financial results press release issued prior to this call as long as other documents filed with the Canadian and U S. A.
<unk> regulators.
Sept 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, Sean and good afternoon, everyone.
Even as the pandemic continues to challenge our broader industry. We have closed out 2020 on solid footing we delivered.
Sequential improvements across all key financial metrics during the fourth quarter, including a 49% sequential increase in gross profit off the back of stronger promotional activity with our partners for.
Other we generated positive adjusted EBITDA for the quarter and the full year.
Throughout 2020, our team remained focused on creating value for our partners and ensuring that we are optimally positioned for travel's long term recovery.
Our team's dedication has allowed points to remain resilient within the most difficult market environment imaginable.
As in our travel and hospitality partners navigate this new landscape there leveraging the long term value inherent in their loyalty programs.
In addition to certain travel operators using their loyalty programs as collateral for debt financings through 2020. The Wall Street Journal recently reported that U S Airlines are enhancing their loyalty programs to broaden their demographic reach and offer members additional benefits outside of travel.
With new program features spanning virtual exercise subscriptions ebooks, our capabilities and the shifting empathy emphasis for miles traveled to how much my members spend loyalty programs are expanding the ways in which their members can flexibly earn and redeem and spend their miles.
Particularly among millennial and Gen Z customers.
We view these changes, which enhance the overall utility of the world's largest loyalty currencies as favorable for the broader industry, which further strengthens our belief that loyalty loyalty will be at the forefront other travel recovery.
Given their size and flexibility loyalty programs offer tremendous value for travel operators in both the near and long term, even while travel itself remains broadly challenged around the world.
As the travel industry evolves during the following during and following the pandemic loyalty programs have an inherent adaptability from which travelers and operators alike can benefit.
As we support our partners through this time, we have maintained our focus on leveraging the flexibility of our loyalty commerce platform to grow and support their members' engagement. Our successes in 2020 deepened several long term partnerships launched new relationships broadened our geographic reach and allowed us to optimize.
The suite of services, we already have in market through enhanced and automated merchandising strategies.
During for Q4 alone, we launched three new loyalty program partnerships into market and expanded services for six existing partners spanning not only our core buy gift and transfer solutions, but also new and innovative premium capabilities.
This expansion to our network of services includes monthly mileage earnings subscriptions, we recently implemented for United Airlines, and our new Delta choice product with Delta Airlines.
With the adaptability and resilience of our platform. We have continued to deliver on the strategy. We laid out in 2019 and with these new partners and products launched during 2020, we have increased our products deployed footprint more than 10% in the past year alone.
This increase in revenue generating capacity is very encouraging and will help to accelerate the growth of the company as travel recovers.
Christopher will provide more detail on our current and upcoming initiatives later in the call.
As our company enters its 21st year of operations I'm confident in the comprehensive platform. We built and then our continued focus on building our business from.
From the onset of the pandemic last year to where we sit today, we've taken proactive actions to ensure that our work force remains safe and intact and that we were well capitalized to respond to industry wide volatility. We've worked diligently to build a resilient operational and financial Foundation.
And enhance our positioning for travels inevitable recovery and we look forward to continuing this work into 2021.
I'll now hand, it over to Eric to review, our financial performance for the fourth quarter and full year and then Christopher will provide some additional highlights and perspective on our partner activity Eric.
Thanks, Rob and good afternoon, everyone.
Unless noted otherwise all figures on today's call are in U S dollars and presented in accordance with IFA reps.
Our financial performance and year over year comps in the fourth quarter continued to be heavily impacted by COVID-19.
With that said, we were pleased with our fourth quarter financial results given the challenging macro environment.
Gross strong sequential top line growth, while generating positive adjusted EBITDA and positive cash flow in the quarter.
Top line revenue in the fourth quarter of 2020 increased sequentially to 56 point for Maryann compared to 37 4 million in Q3.
But was down from $107 million in the year ago quarter.
Gross profit was $8 5 million for the fourth quarter.
Well, that's remained down from $17 6 million in the prior year quarter due to the impact of COVID-19.
Most profit increased 49 per cent compared to $5 7 million in Q3 2020.
This increase reflects the aforementioned strength in our promotional activity and the resulting consumer response throughout the quarter.
As Rob noted, we had a busy fourth quarter from a deployment perspective.
And while these launches had a relatively small impact during the fourth quarter. We would expect the contribution from these launches to ramp up over time.
Adjusted operating expenses in the fourth quarter came in at $8 2 million compared to $6 9 million in Q3 and decrease compared to $10 6 million and cure for 2019, as we continue to aggressively manage costs.
Q4, we recognized $1 2 million related to the Canada emergency wage subsidy program compared to $1 8 million in the third quarter.
As I mentioned on our last conference call. This expected reduction in our Q for subsidy amounts relative to Q3. It was largely a reflection of the Canadian governments funding formula for the program.
In addition, the government has officially extended the subsidy program until June 2021, and we expect to remain eligible for funding up to this day.
With this as context and excluding the benefit of any wage subsidies are fourth quarter. Adjusted operating expenses were slightly elevated relative to Q3 levels in line with usual quarterly cadence on operating expenses historically.
Adjusted EBITDA for the fourth quarter increased sequentially to 360000 compared to negative $1 1 million in Q3, and $7 2 million in the year ago quarter.
The sequential increase was due to the aforementioned increase from a quarterly gross profit.
As Rod mentioned earlier, we were adjusted EBITDA positive for the full year and if so far navigated the COVID-19 pandemic at near breakeven levels.
While we are encouraged by this performance we will continue to take a cautious view on our near term results and recognize the effects of periodic fluctuations in our activity levels quarter to quarter.
Total funds available, which included borrowings on our credit facility for.
Approximately $79 million at the end of the fourth quarter compared to approximately $68 million at the end of the third quarter.
Yeah.
Our end of Q4 balance includes the 15 million drawdown on our credit facility.
From a guidance perspective, we are not in a position to provide an annual outlook at this time, given the current environment and our limited visibility however.
However, we remain committed to prudent cost management across our business and to bolstering our strong financial foundation to support our team and partners and.
And with that I'll turn it over to Christopher Criss.
Thanks, Eric.
As we navigated 2000, twenty's challenging environment, we maintain focus on our three core growth drivers, we've worked to create new relationships with additional loyalty programs around the globe expand and deepen our current partnerships by launching net new services with many.
And continue to operate optimize and expand the services. We currently have in market through automated enhanced merchandising efforts during the year. We made progress on all three drivers that have improved our positioning for future growth as the recovery continues.
During the fourth quarter, we officially launched several net new partnerships in November we launched a suite of LCR services with Caribbean Airlines, following for allowing Caribbean miles members to buy gift and transfer their miles through a more personalized user experience.
This new partnership with facilitated by our deepening strategic partnership with Amadeus and we look forward to expanding our Caribbean service over time as we further integrate our offerings with Amadeus loyalty reservation and merchandising technologies.
In December we also deployed our buy gift and transfer of LCR services to Ethiopian Airlines, making our first services launched with an African partner and another joint success with Amadeus.
Launch provides members of Ethiopian Airlines Sheba miles loyalty program with access to benefits such as ability to purchase miles online, which was previously only available offline.
And the new option to gift for transfer miles to friends and family members.
Further it builds on the progress we have made this year in deepening and expanding our international presence first through our previously announced partnership with Qatar Airlines and now through solidifying our global presence with partners headquartered on every major continent.
We're confident that our focus on successfully launching new services into market throughout 2020 will will fuel long term value even if they do not initially perform at historical levels.
As we deploy these initial services for new partners. We have also continued to advance our existing partnerships in.
In the fourth quarter, we added our transfer and reinstate capabilities to our existing suite of services for Air Canada's Aeroplan.
These launches followed the successful launch of our buy and gift services with Air Canada earlier in the year amid the global travel pause. The initial launch promotion we ran for them in Q2 still serves as our most successful and highly traffic single day promotion in our company's history.
Additionally, we expanded our Radisson hotels partnership with the introduction of a new in line top up service. We initially launched with this leading hospitality partner back in 2017, when the brand was known as Carlson hotels.
These launches are a couple of great. Examples of how our core services continue to create incremental value for our loyalty program partners to <unk>.
Further elaborate on them on a theme that Rob mentioned earlier, we've also been adaptive and innovative with net new service offerings made available on our network.
For example, during the fourth quarter, we launched the Delta choice of platform, our premium customer service program for Delta Airlines.
We also deployed a new monthly subscription option for United Airlines, providing loyalty members the ability to earn miles on a recurring basis throughout the year.
These are both on the heels of a third quarter launch of our new accelerate anything serviced with Alaska Airlines mileage plan, providing members the ability to boost their prior earnings including miles are on credit card spend and other retail activity.
We're seeing strong interest from our partner network and this innovative new Fintech service and look forward to sharing further developments on this initiative over the coming quarters.
Looking forward, we continue to focus on expanding the network of services that we have available to help our loyalty programs further engage with their members.
Many of these have proven valuable.
During more robust travel periods, so even though current.
Volume is maybe lagging historical performance.
We'll benefit from having more of these services operational as the industry rebounds, and as they revert to prove and historical performance.
Additionally, we're adding services that offer new ways to engage loyalty program members in today's environment that are not linked to immediate travel, but more to ongoing regular member engagement.
And the nature of travel and our partners' needs continue to change.
We've been able to adapt our services and create new offerings to drive value during both peak and restricted travel periods.
And both the corporate and customer level loyalty programs to add tremendous value and expanded optionality is the travel industry works through towards long term recovery.
We remain confident in the important role of loyalty programs will continue to play in this recovery as well as enduring and comprehensive power our network of services offers to enhance these programs value even further.
As our pipeline grows and we continue to focus on launching new service and adding new partners for our roster in 2021 are low.
Long term growth drivers remain core to our strategy.
We are committed to maximizing performance ever in market services cross selling to existing partners and signing new partnerships across new verticals and geographies.
We have already made solid progress executing our strategy and strengthening our network throughout the most difficult year, we have faced in our company's history. We look forward to building on this work and further positioning ourselves for accelerated growth in 2021 and beyond.
Operator.
Now, we'll open up for questions.
Thank you Sir.
At this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press <unk>.
Star one on your telephone keypad, that's a starkey followed by the number one key on your telephone keypad, a confirmation tone will indicate that your line is in the question queue.
You May press the Star key followed by the number two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Our first question comes from Gary <unk> with Barrington Research. Please state your question.
Hey, good afternoon, everyone hope all is well.
Couple of questions here.
Versus Q3.
In Q4 showed a sequential increase from revenues and I think one other comments was that with the new business you signed up with the three airlines that was very little revenue in there. So it can we assume that it was just more of a promotional environment or did he would be Q3 did you guys see it.
Some kind of sequential pick up in the industry overall, the travel into strength.
Yeah, sure Hey, Gary It's Eric here, Yes, I think that's a fair assumption I think what we're seeing right now from a quarterly cadence standpoint is mostly driven by marketing campaigns.
We had a great year in terms of launching net new products from partners in into market I'd say most of those launches are obviously on a on a COVID-19 dollar basis and on a pre COVID-19 dollar basis. So their impact is still there although much smaller than what we would've had in.
On a pre COVID-19 basis.
Okay, and then lastly, and I'll, let somebody else jumped jumped in and again I'm not as familiar with the company as others as Q4 seasonally a slow period for new business development as far as signing new airlines or hotels or whatever for Oh, you know new programs.
Yeah.
Q4, sorry, Gary it's Rob.
No I would say certainly in in 2020 with Covid, we saw through the course of the year, a pretty steady stream of net new business and net new partners, joining I think as I referenced we.
Expanded our footprint in our products deployed by well over 10% just in the year alone. So you know 2020 was was very strong from that standpoint for the fourth quarter I'd say it's.
An interesting question probably things slowdown.
For example in World things for what would slow down from a business development standpoint, a little bit in Q4, just because it's an abbreviated period with the holidays et cetera, but.
But we certainly didn't see that in 2020.
Okay. Thank you.
Thank you. Our next question comes from Greg gave us with Northland Securities. Please state your question.
Great Good afternoon, Rob Eric Chris Thanks for taking the questions.
Congrats on the pickup that we saw in Q4 relative to Q3.
Considering we saw some nice new partnerships with.
Cater Ethiopian Caribbean Airlines 2020.
You know a lot of those coming kind of late in a year or two.
Was just kind of wondering how youre thinking about.
The business development progress that can be made going forward here.
Will it be kind of hard to see similar levels of new partnerships in 2021.
Or are you pretty confident in the in the pipeline this year.
Yeah.
Yeah, Greg it's Rob.
Been very pleased with our pipeline through 'twenty as well.
We've articulated.
At the end of the day, the majority of our products and services are really oriented around helping drive profitable revenue for the for the parent companies in the world. The various loyalty programs. So we saw certainly in the in the depths of Covid, a renewed interest in products and services.
And relationships that we're going to drive revenue and profitable revenue in short order.
That we were able to get a lot of those are a bunch of those across the line, but there is still a very robust pipeline in terms of more partners and more expansions of existing relationships that were very optimistic.
Discussions that happened through 2020 will bear bear fruit here in 2021 so.
Again, we remain optimistic there was a tremendous amount of opportunity ahead of us just as the company broadly. So theres no reason why we shouldnt be continuing to expand our partnership footprint and our product to product deployment footprint going forward.
Okay, Great that's helpful Robin good to hear as well.
How has and I apologize if I missed this if Gary already asked this but.
Promotional activity for your from your partners trended thus far in Q1, maybe relative to the promotional activity you saw in Q4.
And you know.
Just wondering if you could give an update on kind of a campaign activity that you have for the foreseeable future whether it's you know the next couple of months or 60 to 90 days.
Yeah.
Say Q4 is as Eric explained was pretty strong obviously, we saw lots of activity there in the Q in the fourth quarter, driving 50% sequential growth and.
We were pretty happy about that.
I can comment generally will continue to see a fairly steady.
Cadence in terms of campaign activity different partners are at different stages of recovery, obviously and are at different stages of of having the capacity to run campaign activity and engage their members so it'll still be a bit choppy.
That's not too surprising given where the travel industry is in general.
I do think overall one other things we're dealing with is it is a shorter term.
Our sense of visibility so we are still on.
From a partner engagement standpoint, still not looking too far out I think our partners are looking to stay engaged with their members. You know, we're working kind of on a month by month basis to try and be as aggressive as we possibly can.
But it's still it's still hard to look too far out.
In terms of campaign activity, but you can be certain given the results we've been able to deliver we will continue to see campaign activity through the course of 2021.
Sure that makes sense I guess last one for me.
Can you remind us the impact that you saw from the Canadian government wage subsidy program in Q4 and.
You said it was extended through June.
Any sense of how much of a subsidy you would expect in Q1 and Q2.
Yeah, Hey, it's Eric again, so we had $1 2 million in the fourth quarter.
And that that program has been extended out until June 2021.
So what we know right now is the funding formula up until mid March.
I wouldn't want to put a number on on the dollar value for us just yet because it is really driven by.
Top line growth rates or decreased rates on a year over year basis. So I wouldn't want to put a number out there yet but for funding formula looks pretty favorable for us in the first quarter.
Extending from March until June that is still TBD. So they.
Typically announce those details.
Pretty close to when it takes effect. So we are still waiting on that.
Yeah.
Okay. It sounds good thanks, guys.
Okay.
Thank you.
Our next question comes from drew Mcreynolds with RBC capital markets. Please state your question.
Yeah. Thanks, very much good afternoon, everyone, probably two for you Eric.
First.
The company has suspended the.
For buyback earlier than in 2020, just can you give us some updated thoughts on.
What's required.
To return to some kind of share repurchase and obviously.
The obvious answer is not at the moment given visibility, but what what.
What are the kind of steps you think the board kind of look at.
To reinstitute that one and I.
Fully understandably not providing 2021 guidance I don't think anybody is at all a surprise on that one.
Maybe semantically Kenya.
Me too.
What your objectives.
Could be for 2021.
You know, whether it's a positive EBITDA positive cash flow.
What kind of financial kind of goalposts are you or are you looking for more thematically then obviously any specific range.
Yeah sure so I'll start with the <unk>.
CIB question, and maybe I'll throw it off for Rob on the.
On the second question. So I think Youre right in terms of where you started with the NCI be it as it is pretty challenging right now to put a date out there in terms of when we would want to restart that I think are our focus right now is obviously preserving capital.
No.
It is a pretty challenging macro environment right now.
I'd say on a pre COVID-19 basis, we had our own internal hurdle rates in terms of ideal share price to buy back at its not something I would.
I would share publicly.
So I'd say, we're taking that quarter by quarter, but I would.
Suggest that we're probably weighted.
The weighted out from that still.
Yeah, and then a second question rather than specific financial guidance notwithstanding the request through.
For the medically I think of how we're trying to position. The work we did back half of 2020, and what were kind of focused on right. Now I think we have a belief in a sense as we speak to our industry partners around the world.
Kind of a strengthening optimism around the second half of 'twenty one.
Seeing some advanced booking good advanced booking data in the Europe and Middle East.
The middle Eastern markets to see the domestic activity in the U S starting to pick up a little bit and.
So for us it's.
As much as anything we want to be ready to kind of capture all of that opportunity and that momentum as it appears the recovery momentum we felt for a long time. It is inevitable that that will come the pent up demand.
We're quite convinced is a is pretty strong and pretty deep, but we're starting to see now the industry partners talking about the second half of the year and a more optimistic way. So a lot of our energy and our effort is to really kind of build our footprint be ready to capture that momentum accelerate into the recovery.
We continue to be confident that loyalty will be at the front edge front edge of the travel recovering and so we just want to make sure we're.
We're ready to kind of capture that and so infrastructure activity that we're working on that scale based activity that we're working on all of our things that.
Should put us in a position to be.
At the front end of that.
Curve that I think finally starts going in the right direction.
Okay Super Thank you both.
Thanks sure.
Thank you and just a reminder to ask a question at this time press the Star key followed by the number one key on your telephone keypad and to remove yourself from the queue you could press the star key followed by the number too.
Our next question comes from Ed Woo with <unk> capital. Please state your question.
Yeah also congratulations on managing through Covid. My question is more on you did mentioned that you guys had a very good 2020 in terms of getting new partners expanding products, 10% more products out there.
The industry.
Back in your partners become more optimistic do you think that that's going to accelerate and you'll have even more.
<unk> partners launched in 2021 versus last year.
Hey, Todd it's Chris.
Certainly our goal would be to try to beat our 2020 this year.
The actual cadence for the launches.
Always vary a little bit quarter to quarter, but we're seeing to robs point the program's focus obviously on immediate activity potential, but they're also taking.
Much more expanded view of their program and given the raised profile that they are all getting and figuring out.
As things start recovering then what's next and that's another place where we're making sure that we're thinking ahead and trying to capitalize on that kind of investment. So I'd say lots of services I mentioned in my prepared remarks are new.
I'm kind of referred to it in here.
One of our Fintech services.
Call accelerate anything.
Which allows a member to.
Basically choose to double or triple their miles or points that they earned during that month and independent of where they earned it whether it's on their credit card or through a partnership or affected from traveling.
So things like that are not travel dependent.
Gartner can offload that entire infrastructure and service operating over to us and obviously our platform is very efficient at adding those kind of new services.
Onto the network.
Regular basis so.
Trying to see as many of those opportunities are possible to expand the cross sell potential.
And then clearly the addition of new logos New partners to our universe is always a focus.
Yeah.
And then on the pipeline how much of it is focused on travel I know you guys in the past that focus on no other sectors outside of travel.
Yes.
For us, particularly.
What's interesting when you think about the recovery that's ahead.
Have a very good footprint on travel I think if you see some other partners that we've added new partners that we've added here in 2020, largely been travel oriented we still think.
There are really interesting opportunities on the travel side, both with the existing partners and with the net debt with our net new partners and so youll continue to see us very active in travel.
For certain other again, the most sophisticated players out there in terms of monetizing their loyalty programs and understanding the economic opportunities around their loyalty programs.
Our our products and services fall right in that sweet spot, having said that I think progress that we're making around our platform initiatives, where we continue to open up the platform to allow other interesting companies to tap into the travel industry and these massive bases of customers again between.
$800 million and 1 billion customer accounts that are connected to our.
Loyalty platform.
Our company is like lift that we've been working with for some time that are very interested in.
Tapping into that so you'll continue to see us broadening the reach of the platform outside of travel, but more from the perspective perspective of tapping into the size and scale of the travel loyalty.
Place.
Great well, thank you for answering my questions and good luck.
Thanks, Ed.
Thank you. Our next question comes from Gary <unk> with Barrington Research. Please state your question.
Yeah, you mentioned something about that you know the back half for the year with your partners you are starting to they're starting to be a lot more optimistic.
Have you given any thought to the fact that you know maybe this recovery comes back a lot stronger than what.
Would be expected just simply because.
There's probably going to be more personal travel versus business travel and <unk>.
Just because of people being cooped up as much and then the logistics.
Do some kind of a business meeting now.
Post COVID-19, especially with zoom and things like that.
Just maybe a lot more difficult on the business side versus the personal side.
Yeah, Gary I mean, it's probably.
A good question for the Ceos of the airlines and hotels that are reporting here in the next little bit, but what I can tell you is what we're seeing and we're hearing from our colleagues at the airlines and hotels and I think the way you characterized it is right.
We do see and expect.
Leisure travel to meet.
The first there seems to be consensus that leisure is the first part of the recovery domestic or regional travel it's kind of the.
Kind of tied into that domestic U S or or regional European.
Et cetera, we're seeing some good signs in some good indications around trans border North America activity starting to pick up around this summer.
We think gen.
Generally international travel will lag a little bit although European there seems to be trends that European markets are opening up at least inbound.
The European marketplace.
A little less so north Asia, a little bit of what we hear is that it's a little bit lagging and then you're absolutely right I think generally the commentary in the industry has been that business travel will be.
A little bit later.
So we'll see how that all plays out but I think that is starting to come in a little bit more into into site because the messaging from whether it's senior hotel our senior airline exec.
For executives seems to be pretty consistent along that story okay.
Okay. Thank you so much.
Our next question comes from Jim Byrne with acumen capital. Please state your question.
Yes, thanks, good luck.
Hey, guys.
I think we've talked about this.
Off line a few times, so I just wanted to touch base on.
Your results kind of down 50% or so obviously airlines and lots of travel companies have been hit much harder $80 90 per cent drops.
You build a broader base of.
Our products and partners at what point.
Do you feel like you could get back to kind of 2019 earnings level or gross profit levels is.
Is that a is that a 50% rebound in travel is at 80%.
<unk> returned to 2019 travel level. So just wanted to get your sense on those.
Yeah, I think the short answer is I think we all wish we knew.
Is it really is hard to peg when that happens.
We've got a number of models as you might expect that we're running.
But that tag.
Peg those recovery kind of pre 19 levels at different stages, it really but we wouldn't be we wouldn't be able to give you.
A firm number or a date on that we're watching very closely for all of the signs that you would expect.
But just to be very honest, we don't we don't yet know.
No.
How sharp that recovery curve is going to be I think our belief as a company and certainly our airline partners and hotel partners.
Generally I would say there is a stronger belief that when the recovery starts it will be rapid and it will.
To come back faster than than most people expect.
Generally our sense is that the pent up demand is very very deep. So we don't know when that trigger happens, but when it starts our expectation is that it moves pretty quick.
And it takes it all.
Go ahead go ahead Chris.
I was just going to add to that the other the other thing to consider is do you think we exited 2019 with a certain number of partners and services in market.
Obviously, if we Didnt do anything last year, then we get back to 2019 performance when the whole industry got back to 2019 levels, but as we've talked about we've been really busy launching new products New services cross selling.
With current partners. So we have more kind of in place now than we did at the end of 2019 or at the beginning of 2020. So.
We would expect to get back there.
Head of when the industry gets back just because we have more pieces of assets kind of work in the market.
Okay, that's great.
And then maybe just a little on the Amadeus relationship.
Just remind me if there is a timeline associated with that and then if there is.
It's starting to bear fruit now and I just wanted to know.
Are you still as excited about that as you were when you first signed it.
What do you see coming out of that over the next year or two.
Yeah, I think we signed a long term partnership that we've been working at its two two years.
Just past two years now.
Some of the new launches were right off the back of their relationships as we've talked about.
Now probably more.
I was focused on pipeline, but we're also now really focus on some co product development with them.
And Thats, where I think some of the flywheel of that relationship will start bearing some fruit and net are access to embedded airline systems.
Through there.
In partnership with them is just easier for us to do versus an AD hoc one off every time, we kind of.
Presents one of our partners with a new idea it allows us to put in place a much more kind of industrial strength solutions at the gate and then have their whole infrastructure be open to sell it through so we are and they are obviously looking to sell valuable things and introduce valuable services to their airline custom.
<unk> and ours happens to be those that generate strong economics for airlines, so it matches up pretty well with their needs and our needs and our airline partner needs. So we're excited about the prospects of some of the new services that we're co developing right now which was kind of the second leg of the stool that we always.
I had in mind as we launch that partnership.
Okay. That's great. Thanks, guys.
Yes.
Thank you and at this time. This concludes our question and answer session I would now like to turn the call back over to Mr. Maclean for closing remarks. Thank you.
Great. Thank you and thanks to everyone.
For joining us today, we will look forward to updating you again in May as we report our first quarter results. Thank you.
Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you all for your participation.