Q1 2021 Points International Ltd Earnings Call
Good afternoon, everyone and thank you for participating in today's conference call you discussed quite International's financial results for the first quarter ended March 31st of 2021 deliver.
Delivering today's prepared remarks for Chief Executive Officer, Rob Mclean, President, Christopher Barnard and Chief Financial Officer, Eric Georgia.
Following the prepared remarks, the management team will open up the call for any questions before.
Before we go further I would like to turn the call over to call. The floor of Gateway Investor Relations points International's IR adviser as he reads the Companys Safe Harbor that provides important cautions regarding forward looking statements Cody. Please go ahead.
Thank you 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 first quarter of financial results press release issued prior to this call as well as the other documents filed with the.
The Canadian and 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 said I'll turn the call over the points Chief Executive Officer, Rob Maclean Rob.
Thanks, Cody and good afternoon, everyone.
As our broader industry works towards recovery. We are pleased the carried our momentum from last quarter through Q1.
Our first quarter results EBITDA, our expectations as we continued to deliver sequential improvements across key financial metrics.
Even three times the adjusted EBITDA, we generated last quarter.
In addition, we have further enhanced our liquidity position through the successful completion of our $31 6 million dollar Canadian dollar of public bought deal offering in March.
Our team is very much remained dedicated to not only supporting our current partners, but also driving new business development opportunities across our growing partner base.
While we continue to operate with caution in the near term the resilience and flexibility of our platform has made us well prepared for longer term growth in our industry.
The COVID-19, vaccinations, becoming more widespread the travel and hospitality industry has begun to see the return of consumer confidence in travel and the year.
I did state the CDC recently deemed domestic travel a lot of risk activity for people, who are fully vaccinated and throughput of TSA checkpoints nationwide as the remains well over 1 million of travelers per day since the middle of March.
Many countries around the globe are also using their pandemic related restrictions and part of new travel policies in place the.
The pace of recovery of course is neither quick more universal.
Several countries are still contending with elevated case counts and the international traffic remains below 2019 levels get.
The trends we are seeing demonstrated that there is significant pent up demand for travel and that loyalty programs have a key role to play the meeting these returning travelers' needs.
Operators of also continued to leverage the ongoing value of loyalty programs to support their own recovery.
In early March American Airlines and out of the issuance of seven 5 billion of new financing backed by its advantage program. The operating assume raised 10 billion in response to the elevated interest.
For the vaccines like the since the onset of the pandemic signals of the important steady roll that loyalty programs are fulfilling of the industry short and long term recovery efforts.
On an operational level loyalty programs have been strong consistent sources of value for both customers and operators because of their scale and flexibility.
Even as they remained largely grounded over the past year active loyalty consumers of continued earning points and miles, which they can readily deploy for new trips travel rebounds, and spend on an increasing range of non travel options for.
Our operators the points that their loyalty customers continued earnings sort of this critical sources of liquidity during the most difficult times of the travel industry has ever experienced.
This backdrop the work we've been put we have put into adapting our own service suite.
Developing our pipeline seems to enhance the inherent scale and flexibility.
Helping our loyalty partners and kind of tough.
The mers adapt the new normal.
That's the continually innovate as we respond to their needs.
Let's focus on innovation and adaptability has fueled our continued execution on our core growth drivers are.
Are we used the largest to date in 2021 of deepened our existing relationships by deploying net new services and optimizing several services, we already out of the market.
We've also further in the hands some of our newer relationships and strengthened our foothold in the middle East.
As Chris will discuss later on the call. We have worked to expand several teachers the gain traction during the pandemic such as our subscription and accelerate anything products with the generated strong partner of interest throughout the pandemic.
This is all in addition to the continued progress we've made with our core of currency retailing activity.
As we have since the outset of dependent Mike we are closely monitoring the various states and pieces of the recovery around the world and across our partner base. While we remain encouraged by current trends. We recognize the visibility is still limited within our own business and those of our current and prospective partners.
Certainly believe we are in the early stages of the recovery.
However, the pace of that recovery will be gradual and largely non linear.
Yet amid this line.
Landscape, we are making demonstrable progress with the factors that are within our control.
We are building the roster of partnerships for the benefit from our services, we are leveraging our unique and valuable products and services to enhance and grow our existing loyalty program partnerships and we are optimizing the reach and technological capabilities of our already comprehensive platform.
Given the continued growth. We see ahead, we have also streamlined our business internally to better serve our partners and the labor.
The capabilities of our platform to drive greater efficiencies.
This realignment of our operations towards the platform focused approach will enable us to better capture of current and future opportunities as the pace of recovery increases.
We have also aligned our financial reporting for this approach and Eric will address the shortly.
I'm proud of our team's constant resilience and dedication and we look forward to working towards further progress on our global growth drivers I will now hand, it over to Eric The route to review our financial performance for the first quarter and then Christopher will provide some additional highlights from perspective on our partner activity Eric.
Thank you, Rob and good afternoon, everyone.
Unless noted otherwise all figures on today's call are in U S dollars and presented in accordance with I of forest.
In advance of walking through our quarterly results I wanted to provide a brief overview on some changes to our financial reporting that are taking effect. This quarter first and as Rob mentioned, we have made some internal changes to our organizational structure to drive efficiencies as we grow out of the COVID-19 pandemic.
The better align our reporting what type of move to a platform focused approach to operating the business starting this quarter. Our revenue gross profit and expenses will be reported on a consolidated basis only.
Separate breakouts for each of our three legacy of lines of business.
Second we have added additional transparency to our cost base and our financial statements starting in this quarter.
Our operating expenses on our income statement will be classified by functional areas, including research and development sales and marketing and general and administrative.
In addition.
The notes to our financial will provide additional details on our employment costs we.
We have made this change in order to align our financial reporting with how we view our business internally and the more closely aligned with the way our peer tech enabled platform companies report their results.
With those changes in line I will now focus on the quarterly numbers.
While we continue to operate in a very challenging macro environment, our first quarter results represent our best quarterly performance during the pandemic.
Revenue in the first quarter of 2021 was $65 million compared to $82 7 million in the year ago quarter.
While our year over year comps continue to be impacted by the impact of COVID-19, we generated sequential revenue growth of 15%.
Sales of activity across our platform increase the relative to the fourth quarter of 2020.
Gross profit, which is our more appropriate proxy for top line.
The $9 million in the first quarter down from $13 8 million in the Europe go quarter due to the impacts of COVID-19.
More importantly, gross profit increased 6% sequentially from 8.5 million in Q4 'twenty 'twenty.
As Rob noted these results exceeded the expectations, we had set at the start of the quarter and we saw some encouraging improvement in our transactional metrics as of the quarter progressed.
As a reminder, our fourth quarter is traditionally a seasonally strong quarter for us. So we were encouraged to generate a second straight quarter of growth.
In the first quarter of 2021.
Of note, we saw an improvement in both the performance of our marketing campaigns, which have been the primary source of her economics throughout COVID-19.
And also in our traditional baseline of activity, which is more of associated with short term travel activity.
And importantly, the improvement in our transaction metrics was generally widespread across our partner base.
Turning to our cost base operating expenses in the first quarter of 2020, one for $10 2 million a slight increase of 3% from Q4, 2020 and down significantly compared to $12 5 million in the year ago quarter.
This quarter, we recognized approximately 1.2 million related to the Canada emergency wage subsidy program similar to what we recorded in the fourth quarter.
As of today the wage subsidy program is approved to run through the early June 2021 with a proposal to extend the program until September.
At this time, we expect to continue to participate in the second quarter, albeit with significantly less funding than what we received in the first quarter based on current funding formulas.
Adjusted EBITDA for the first quarter of 2021 came in at $1 2 million down from $3 6 million in the year ago quarter, but up significantly compared to roughly 400000 in Q4 2020.
The sequential growth was due to the aforementioned increase in our gross profit combined with a relatively flat cost base.
Turning to our balance sheet.
Strengthened our financial position during the quarter and we remain very well capitalized in early March we repaid the remaining borrowings we had from our previous draw down on our credit facility of over one year ago.
And as previously announced we raised $31 6 million Canadian or $25 1 million U S. In aggregate gross proceeds from our bought deal public offering which closed on March 29 of them. This year and included the full exercise of our over allotment option.
We ended the first quarter with total funds available of approximately 94 million a significant increase from $79 million at the end of 2020, which included 15 million of borrowings.
To summarize our first quarter regenerated sequential improvements across our core of financial metrics for the second consecutive quarter and reinforced an already strong balance sheet the zip.
And as well to accelerate our growth.
Given the current climate, we continue to operate with caution in the near term.
Success from the first quarter has strengthened our optimism for the long term.
In the meantime, we would like to thank our investors for their support and confidence during this dynamic period for our company.
With that I'll turn it over to Christopher Criss.
Thanks, Eric.
Our consistent focus on our three core growth drivers has helped us build momentum into 2021.
<unk> working to develop new relationships with additional partners around the globe launch net new services as we deepen our current partnerships and leverage our growing automated marketing capabilities to further enhance and expand the services we have in market.
To reiterate Rob's earlier remarks, these drivers help us adapt and optimize our platform to meet our partners of evolving needs.
As our portfolio of services deployed on our platform grows the value of the network of opportunities the offer of loyalty programs.
Fans.
Is a great example of new launches with existing partners, we recently announced deepening our long running partnership with southwest Airlines with the launch of the rapid rewards points subscription plan.
Under this offering rapid rewards members can choose between three different subscription plans that enable them to build the balance of the either 30 or 40 or 80000 points over the course of the 12 month period.
Once members choose the plan their points will be automatically deposited in their account on a monthly basis with quarterly bonus points awarded along the way.
Subscription offering is the latest addition to our overall service portfolio and with the launch of southwest marks our second deployment. Following the monthly subscription option, we added with the United Airlines last quarter.
Given the loyalty members the ability to earn points regardless of their travel activity provides an expanded optionality for customers and in the loyalty operators alike.
In addition, we continue to execute on our regional expansion strategy and important growth accelerant for us at.
At the end of 2019, we opened our middle East the office in Dubai, with an eye to expanding existing.
And adding new partnerships in the region, we continue to make progress on this and since we were pleased to see further development during the first quarter.
First we launched the accelerate anything capability with Emirates Skywards program.
As a reminder, accelerating anything expands the scope of our accelerated product, which we had historically applied to boosting airline miles earned for travel activity to now allow members to accelerate any of the prior loyalty earnings including miles earn through credit card spending and similar activities.
This enhanced capability offers another optimized form of earning the doesn't rely on travel activity.
In addition, our foothold in the Middle East strengthened further with our recent announcement of the car and hotel rewards deployment for Qatar Airways privilege Club program.
Which enhances our new partnership with launch with Qatar Airways last year.
Members can now earn and redeem miles on the hotel bookings and car rentals.
And just last week kind of became the third partner to launch or accelerate anything shirt us.
More importantly, both of these launches are significant expansions of our partnership with Qatar Airways, which just started last August with the launch of our buy gift and transfer of services.
We were also pleased to recently launch of new partnership with Merck Mashreq Bank of leading financial institution in the UAE with the footprint across 12 countries in Europe Asia Africa, and the U S.
Our new partnership enables members of the matrix Salon program to exchange their points into Emirates Emirates Skywards miles.
Elsewhere, we expanded the reach of our buys services with Spirit Airlines.
The enabling members the ability to use their miles balance plus cash to top up more miles to seamlessly.
In flight rewards.
Finally, we.
We expanded the integration we helped facilitate in 2019 between Hilton and Lyft, which enabled the two operators shared customers to earn more of Hilton points for every lyft ride for us Hilton points to pay for Lyft rides, our latest enhancement to the service Leverages our platform to support less vaccine access initiatives.
Which helps members donate of ride to of vaccine appointment for someone in need.
Until the end of May Hilton honors members, who have donated of ride will receive a onetime bonus of honors points for taking part in helping those in need to fight against COVID-19.
Our work to expand our overall network of services has helped our partner loyalty program support increased member engagement, both outside of travel and in preparation for its longer term recovery.
As we operate with within the transitional period, the new and core service offerings, we put into the market will benefit customers and operators alike, as we facilitate more ways to earn and spend the rewards.
Having these deployments also makes our platform more resilient against future fluctuations and broader travel patterns as they provide the propensity to earn and burn regardless of an individual members near term travel activity.
We continue to believe that loyalty programs will remain a crucial to the travel and hospitality industries of recovery and that the growing network of services enabled by our flexible and comprehensive platform enhances the value.
This commitment of underscores our continued execution on our growth drivers for maximizing the performance of our in market services and cross selling to existing partners to signing new partnerships across new verticals and geographies.
Our business development pipeline remains strong and reflective of our ability to launch new services and add new partners for our roster.
Further the work we are doing to bolster our core platform.
True adapting existing services and an innovative new offerings should steepen, our growth trajectory as we focus on accelerated performance over the coming quarters.
Our strategy and operations remain resilient through some of the most significant industry wide challenges, we face to date and I'm proud to say that we are emerging as an even stronger company as always we are grateful for the hard work of our team and the support of our shareholders as we make continued progress on our growth drivers this year.
Operator, we'll now open it up for questions.
Thank you, ladies and gentlemen, we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad a confirmation.
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For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment. Please of we poll for questions.
Our first question comes from the line of drew Mcreynolds with RBC capital markets. Please proceed with your question.
Yeah. So it's very much of good afternoon.
A couple of for me I think maybe starting with you Eric.
When we look at quarterly Opex and you know certainly understand your comment on further subsidies in Q2, but it is.
We kind of reopening here into the back half of this year and you know all of them.
Honestly in the next year, how do you see.
You know that.
That trend and you know opex, how how do we begin to think about you know what we should be adding here is as the top line improves.
And then secondly at a high level.
When we look at the L. C M part of the business and really keeping it at a high level as you come out of this are there any structural changes to turn that business you know with respect to.
What was there before are how these agreements are we're contracted the gross margin profile all of them.
You know years of of work that went into the segment.
Is there anything we should be aware of that that would change coming out of COVID-19 here and then I've got a couple of housekeeping after thank you.
Sure Yeah, it's not air character you. Thanks for that so on the on the expense side.
We had wage subsidies of roughly $1 2 million in the first quarter and so I think I mentioned in our prepared remarks, we would expect that to come down pretty significantly in the second quarter. So I would expect certainly some ramp up just from that.
I think I mentioned as well the subsidies have been proposed at least to extend out until September I think the eligibility criteria on that it's still a little bit of a question Mark. So that's not something we're banking on at this time, but you know we're certainly monitoring it.
I'd say the other thing that we're looking at from Q2 to Q4.
There's some modest headwinds on the Canadian dollar.
Its looking like its strength and about seven percentage or so versus what we would've seen last year. So certainly.
Some headwinds in those two areas I think on the LCR side I'll touch on that quickly and pass it off the wrong, but we haven't seen any structural changes to our pricing.
Most of that's contracted upfront in our contract from certainly a lot of the net new deals. We've launched are very characteristic of what we've seen historically, maybe Ron if you want to add some context on the yeah.
It's a good question I think.
What's probably come out of.
Of the pandemic in terms of LCR in general when I think of it kind of structure the potential of the business is much more significant than I think probably even us as the optimists felt like going into the pandemic. We had been on a really nice trajectory through 19.
What I saw in the you know over the last 12 to 18 months is the the.
The value of the the monetization part of these loyalty programs you know just the importance of that growth for our loyalty program operators and the airlines and hotels, but that all of them. So I do see a <unk>.
Difficult the.
The greater amount of attention being spent on.
On how these programs can actually help the parent companies generate economics and that'd be monetize so I think that's really positive for us inside of an industry that is getting recognized as having really really substantial revenue generating and profit generating potential and so I'd say that that'd be the the first thing.
I think part of what comes out of that as you know these are big businesses now I think I mentioned in my prepared remarks, you're seeing companies like American Airlines in the United and Delta <unk>.
Leveraging their loyalty programs to generate huge capital raises whether it's debt or bonds et cetera, the $7 billion to $10 billion that that's because these are big strong solid the.
Businesses are also managed by them much more sophisticated management teams and then probably five or six years ago.
It's also leading to a more I'd say aggressive stance for these loyalty programs I think that's only going to accelerate.
Post the pandemic kind of the they've gotten the taste of what these programs can do what I think I'll build on it and we're seeing you know the products expand now with new distribution channels, Christopher talked about our launches on accelerate anything in with our subscription a launch with the southwest here. Just recently those are just good examples of our partners, saying Hey.
This is a really strong business, let's push it as part of as we possibly can let's maybe the 11, a little bit more courageous, let's be a little bit braver in terms of how we can grow this business and we love that right that that's the innovation in the ideation that translates to all kinds of really interesting growth going forward. So I don't know I think I think the.
Or kind of structural elements of a structural change that we'll see going forward. It all feels very positive for from ourselves.
That's that's excellent actually to two tiny ups here.
Uh huh.
You know you you've obviously done the range if you pay down the balance on the facility.
I don't think he can do a buyback until the end of Q2.
So just a good time, maybe for you Eric just a.
Provide an update here on free cash flow priorities as we get.
Get back to normal beginning here in the back half of sort of 2021 and I'm, assuming if there is any.
Administrative or technical or timing breach of covenant in Q3.
The that's largely a non issue.
But maybe you can comment on that as well.
Yeah sure. So I think on the last part from a covenant standpoint are not too worried there at the cause.
Barry mood point with no borrowings zone on the book now so.
You know, we have great relationships with our lenders and not overly concern there.
From a priority standpoint in terms of spending.
I think what the bought deal has done for of certainly you have to provide a bunch of flexibility start investing in some of those areas. We can put on pause.
Pre COVID-19, so advancing our product roadmap and marketing automation capabilities. So I think you'll see us start to for.
Focus in those areas and probably the second half of 2021.
Okay got it I'll leave it there thank you.
Thank you. Our next question comes from the line of dairy crest, the P&L with Barrington Research. Please proceed with your question.
Hey, good afternoon all.
Eric are you going to be able to.
For per offered to us the you know of.
A recast of the expenses on a quarterly basis.
Throughout 2020, just for modeling purposes, so, it's a little bit easier for us to compare.
Year over year changes.
Yeah. That's of Great question, let me think on that one I mean that wasn't really shouldn't come out with the quarterly numbers of as we issue into the public so I think of it.
It's not something we can do on a.
On the one off basis, So let me take that back and internally and we can think of them that way.
It certainly wasn't in our <unk>.
To do so, but I can try and help guide you on that.
Okay. No problem I mean, you know it's just it just makes it a little bit easier.
And then could you maybe.
If you would talk about how the K can you talk about the cadence of your sales growth sequentially throughout the quarter I mean did it did it pick up obviously from February to January March to February and then can you maybe give us a little bit of visibility on.
How April and may compared to.
You know maybe March.
Yeah, I can I can certainly touch on the trending in the first quarter and Christian Rob one of the chartering of along the way.
So we ended Q4.
All things considered pretty strong in the you know when the COVID-19 environment.
Q4 has been traditionally our strongest quarter sort of heavier marketing activity and so when we entered the first quarter with better expectations of a little bit lower on the basis of.
A lighter marketing calendar and also just from a seasonality standpoint, so we factored in kind of the trending of Q3 Q4 from a baseline metric standpoint.
Overlaid with the lighter marketing calendar. So we entered that quarter with you know I would say generally expecting of it.
Some smaller number than Q4, what we saw in the quarter. We started out that way when we hit March I would say, we saw a very steep acceleration in our metrics and each day that was twofold, but it was it was across that marketing activity that we've been relying on so much.
In independently, but it was also in what we call our baseline metrics. So that non promotional activity I Wouldnt say thats back to pre COVID-19 levels, yet by any means but I would say it really was the first indication to us.
Of the meaningful.
Improvements in that area.
I'll jump in the the CFO once the hand, the forward looking stuff off for me.
Look I do think I do think as Eric indicated we saw really good progression through the quarter that has continued into into the kind of April may period, and that's not surprising when you think about our business. We've said a number of times previously that we feel like we will be on the.
Early side of the recovery curve and every metric you look at particularly in the U S. Every metric you see in terms of airline travel hotel occupancy et cetera.
Those are really positive signs that are really picked up here in the last last 30, 60 90 days. So I would expect to see us track with that I think we're going to be.
In advance of that and we're going to actually you know given the progress we made with all of the new launches. We had in 2020 and then continued through Q1 all of that is helping us kind of a bigger footprint to capture more of this recovery and I believe that ultimately leads to kind of of continued acceleration of of our growth. So we feel pretty good about what we saw in the <unk>.
First quarter and what we're seeing.
Good that's good to hear and then in a normal environment you know pre COVID-19 could you kind of give us the mix of what of what your business was between marketing and baseline and then you know where you are right now.
Yeah, it's Rob.
Good question.
One of the things we love about this business. It is remarkably responsive to smart marketing and merchandising and we built up our team over the last several years to just take our you know our learnings around the data and analytics and just get smarter and smarter in terms of how we target in the segment.
These hundreds of millions of of loyalty program members that we have access to obviously in concert with our partners and so we you.
Pre COVID-19, we were seeing some really good work being done about obviously, putting great offers in front of people that was driving great conversion and great results and you saw that in our performance through 19.
Yeah.
Part of our strategy is to actually get that first time buyer in the in on the flywheel in the into the cycle and so there was some really good work being done on that did you Wanna get the as you know hundreds of millions of consumers aware of the profit opportunity to purchase these miles and get that travel that they want but then gets them back with good offers in.
And keep them engaged I would say we were seeing really good growth out of the baseline activity as we were being effective in the in the programs in terms of awareness and engagement.
Obviously with COVID-19 with when people weren't traveling but promotional response so the the what I mean by that is not just the on purchasing miles to take the supplement of trip I'm doing but the offer of being in front of somebody to incent them to make a purchase we skewed more towards that during during the COVID-19 for obvious reasons.
I think now as we're as we're seeing more partner or more members jumping on airplanes and the staying in hotels, it's reverting back to some of the more traditional levels.
It's not there yet, but I would expect it to the continue to improve we are seeing baseline of non cash.
Campaign of non promotional Ah.
The transactions improving nicely here as the travel recovery takes.
It takes place so I think we're heading back in the right direction.
Okay and just.
Wood wood skewing more towards your traditional non promotional business does that improve margins overall.
Absolutely.
Okay alright, thank you.
Thank you as a reminder, ladies and gentlemen, if you'd like to ask the question. Please press star one on your telephone keypad. Our next question comes from the line of Ed Woo with the Sunday Capital. Please proceed with your question.
Yeah. Thank you for taking my question and congratulations did you notice any significant differences between geographies with other European carriers versus your North American versus your Asia versus Europe Middle East.
Yes, it's Rob.
Certainly we're seeing.
The the most robust recovery in the in the U S for sure.
Again, I think the domestic market in the U S. There's been lots of coverage about volume is picking up there.
The Americans traveling within the country. So certainly that would be the strongest we're seeing good signals out of Europe, I think the U K vaccine rollout of the vaccine confidence is going to be helping there middle east is in the earlier stages of recovery of those those airlines in particular have been perhaps more active.
In other regions, even in the in the depths of the of the pandemic. So I think contextually the those would be the that would be the way we see our partners rolling out based on the transactional activity and again it mirrors largely what we're seeing in travel which is broadly reported.
Great and then you know going back to you know what you're seeing all of these I guess, the green shoots of improvement and people going back of travel have you seen in terms of your partners in terms of the pipeline of people back to work in the office and just focusing on the.
Plans for more programs or more services or more partnerships with you guys for the back half of this year into next year.
Yeah I think.
Couple of pieces to that.
Had a fantastic 2020 in terms of new partnerships of new deployments I think we reported on that over the last last 12 months, you know really solid pipeline lots of delivery lots of launches in the into the market, which has been great. I think our expectation is that continues.
Our pipeline has been the continued to be very strong.
Again as I mentioned in answering <unk> question Theres more.
I I sense more confidence in our loyalty program operators that they they have a really powerful asset that they're managing and so ways to try to find opportunities to monetize that asset.
Moved up the the priority.
There are for.
For those programs. So I think that I think that's going to continue to be very positive.
Not only the new partnerships and the new products that we've been really happy with the.
The launch profiles on that I think you'll continue to see more of it importantly to me is I think we're just going to see all of these programs pushed a little bit harder to see how much potential of these programs really have in terms of generating revenue of profitability from the products and services. The that we provide and that that's where we want to be.
We want to be.
Moving quickly in and kind of helping these partners generate as much revenue and profitability as possible.
Great well, thank you for answering my questions and good luck.
Thank you ladies and gentlemen at this time there are no further questions I would like to turn it back to Rob Maclean for closing comments.
Thank you.
We'd just like to thank everyone for listening in on today's call and look forward to speaking with you all when we report our second quarter results. Thank you.
Thank you ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.