Q3 2021 Points International Ltd Earnings Call

November 10, 2021

Please standby the conference will begin momentarily we thank you for your patience and ask that you. Please remain on the line.

[music].

Good afternoon, everyone and thank you for participating in today's conference call to discuss points International's financial results for the third quarter ended September 32021.

Delivering today's prepared remarks are chief Executive Officer, Robert Mclean, President, Christopher Barnard and Chief Financial Officer, Erick Georgiou.

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

That time, if you have a question. Please press the one followed by the four on your telephone.

If at any time during the conference you need to reach an operator, Please press star zero.

As a reminder, today's conference is being recorded.

Before we go further I would like to turn the call over to Cody saw a beat we investor relations points International's IR adviser as he reads the company's 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 third quarter financial results press release issued prior to this call as well as other documents filed with the Canadian and U.

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.

That said I will turn the call over to points, Chief Executive Officer, Rob Maclean Rob.

Thanks, Cody and good afternoon, everyone.

During the third quarter, we continued to drive year over year revenue and profitability improvements.

Travel and hospitality industries recover from the pandemic last year.

We generated our fourth straight quarter of sequential gross profit gross profit growth.

In our transaction volumes grew year over year with both baseline and campaign driven activity performing well.

While we did experience some negative impacts from the Delta variant in the second half of the third quarter, particularly with our U S partners. It has since recovered and it has so far shown to be more of a temporary effect than an indication of a longer term pattern.

We continued to see the strongest transaction levels with these U S based domestic carriers and hotel brands as the U S benefited from easing travel restrictions and broad vaccine availability.

As we continue to monitor recovery trends I'm proud of the resilience, we demonstrated supporting our partners and driving business development in this dynamic environment.

As you May recall recall Q3 of 2020 had the steepest pandemic related impacts for our own business and for our partners and their peers, while full recovery to pre COVID-19 levels has since proven gradual and choppy across our industry travel and hospitality operators.

Have consistently benefited from the strength of their loyalty programs over the last 18 months.

We have seen loyalty programs consistently outperformed their related airlines and hotels throughout the pandemic.

A number of our loyalty program partners have returned to pre COVID-19 or better performance well in advance of overall airline performance, which in some cases remain well below 50% of pre pandemic levels.

These results have not only highlighted the growing importance of loyalty and the resilience of those business models, but also highlighted a significant opportunity for growth for the airlines and hotel industries.

In addition, after several major carriers leveraged their loyalty programs as collateral to help their businesses stabilize at the outset of the pandemic. The long term value of these assets has taken on a new profile.

I will also note a recent asset securitization report found that credit ratings on these securitizations remained relatively stable over the past 18 months.

Such loyalty programs have remained consistent and expensive source of value for operators and form a strong foundation for the industry's continued recovery.

As a result of these factors and the resulting recognition of the significant value of the industry's loyalty programs, we are seeing a market change.

And the posture and objectives of our partners.

Lee our partners are recognizing the strength of their businesses and are looking to drive much more substantial growth in the future.

While we saw this reflected in our very strong business development trends over the past 18 months. We are now seeing these new growth expectations from partners positively impacting our ongoing operational performance and our long term expectations.

In addition to new partners, joining our platform, we are enhancing existing relationships by developing and launching new products, adding powerful product extensions and executing on much more comprehensive marketing and merchandising efforts in support of this new mandate for outsized growth that the industry is pursuing.

Throughout the pandemic, we expected that loyalty with planned early and important part in the recovery delivering short to midterm growth for the company. However, as we look further ahead and evaluate our position within the loyalty industry, the new and more aggressive posture from our loyalty programs gives us confidence in the long term growth potential of our.

Our business.

We believe the growth targets, we provided before the pandemic remain achievable in the long term and we continue to evaluate the timing of these targets is the travel recovery continues to take shape.

In addition to the financial value that loyalty programs have preserved we are demonstrating the operational value that our loyalty products and services provide our partners as we collectively navigate this new normal of the pandemic recovery.

During Q3, we rapidly expanded the number of exchange opportunities across the platform with both long long standing financial service partners and newer programs like built rewards our partnership we introduced in the second quarter.

We continued to gain transaction, our traction with our new product innovations launching additional deployments of our subscription and accelerate anything services. We also have significant significantly expanded the reach of our buy service with the Marriott Bond Boy program in October taking over the top channel that is embedded directly.

In the redemption flow.

Chris will have more to say on each of these launches and others later in the call, but I'm proud of the clear progress we made with strengthening our end market deployments and meaningfully growing our global footprint.

And lastly on our previous call, we announced a new multi service and multi year partnership with a prominent Asia Pacific carrier I am pleased to announce that this new partnership is with EBIT errors Infinity mileage lands program and our initial slate of services will be launching with them imminently.

As we emerge from the pandemic, we are making swift progress on our core growth drivers.

To speak on our three core growth drivers of the launches, we announced and deployed this quarter and body several successful cross sell opportunities and growth within our existing services and we are active with business development conversations across multiple geographies and verticals.

Furthermore, as our transaction levels and broader industry continues to recover I want to reiterate that our strategy continues to be reinforced throughout this period on.

Undoubtedly we are better able to execute as geographies reopen and travel operators can refocus on more fully expanding their consumer loyalty options, but even when our industry was challenged our team continued to push on business development opportunities and maintain a robust pipeline ensuring that we were fully equipped to move quickly and.

Effectively once the recovery was underway.

This dedication has allowed us to ramp several of our pre pandemic launches and execute on our growth drivers in recent months, we stayed focused and proactive throughout one of the most difficult periods in our industry's history and have emerged from it even stronger than we were before.

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.

Thank you, Rob and thanks for joining everyone unless noted otherwise all figures on today's call are in U S dollars and presented in accordance with IRS.

Our financial results in the third quarter reflect a continued recovery from the lows of 2020.

We have continued to execute on our growth drivers and drive strong year over year improvements amid the ongoing recovery from the pandemic throughout our industry.

We generated revenue of $86 9 million in the third quarter of 2021 compared to $37 4 million in the year ago quarter.

An increase of 132% on a year over year basis.

On a sequential basis, our third quarter top line performance was softer than last quarter due to the relative mix of principal versus commission sales through the period, which was influenced by the timing of our marketing activity with certain partners.

Gross profit was $12 4 million in the third quarter of 2021 up 117% from $5 7 million from the year ago quarter due to our continued recovery from the lows of the pandemic last year.

More importantly, gross profit increased for the fourth consecutive quarter up slightly from $12 3 million in Q2.

Factoring in the sequential reduction in revenue our gross margin increased on a sequential basis as expected moving closer to pre pandemic levels.

On an operational level, our marketing and promotional performance remained strong throughout the quarter as they have throughout the pandemic outs.

Outside of some Delta variant related impacts in August and September transaction volumes associated with our traditional baseline activity continued to show signs of recovery and we currently expect this positive recovery transaction trend to continue across our platform into Q4.

Operating expenses in the third quarter of 21 were $13 5 million, an increase from $9 million in the year ago quarter and from $11 6 million in the second quarter of 'twenty one.

As we announced on our last call Q2 dollars 21 was our last quarter participating in the Canada emergency wage subsidy program, which partially drove the increases in our operating expenses for Q3 on a sequential and year over year basis, we recognized $1 $8 million in subsidies in the year ago quarter and roughly 600.

Third 50000 in the second quarter of 2021.

The increase in operating expenses was also driven by the continued easing of some spending restrictions we had put in place over one year ago at the outset of the pandemic as we started to hire additional resources focused on growth.

Adjusted EBITDA for the third quarter of 21 came in at $2 million.

Up significantly from negative $1 1 million in the year ago quarter, but down compared to $3 4 million in Q2 'twenty one.

The year over year increase was primarily driven by the higher levels of gross profit I mentioned earlier with the sequential softness due to higher expenses as a result of our <unk> spending restrictions and non participation in the subsidy program.

Turning to our balance sheet total funds available were approximately $93 million at the end of Q3, representing a significant increase from approximately $79 million at the end of 2020.

We remain comfortable with our liquidity position as we progress into the fourth quarter of 'twenty, one and prepare for 2022.

Our progress throughout Q3 and since the beginning of 2021 demonstrates our strong ability to navigate the evolving trends in our industry.

Based on the trends we are seeing to date. We currently expect Q4 to continue the quarter to quarter and momentum we have driven throughout the past year. We continued to leverage our strong operational foundation to execute on our pipeline and keep our business well positioned for long term growth.

Lastly, I wanted to mention an upcoming change that will impact our public company name in 2022.

In order to optimize our corporate tax structure and minimize future income tax in Canada, we will be completing an amalgamation of two of our Canadian legal entities, which will be effective January one 2022.

As part of this amalgamation process, our legal name at the public company level will change from points International limited to points Dot Com, Inc. In 2022 the.

The rationale for this change is for tax planning purposes, only and does not result in any changes to our underlying business.

And with that I'll turn it over to Christopher.

Thanks, Eric as Rob mentioned earlier, we are continuing to execute on our growth drivers across our new and existing service deployments as well as accelerating our growth in key strategic areas that we were tracking pre pandemic.

<unk> continued leveraging the strength and flexibility of our platform, so effectively and are well positioned to continue executing on our robust robust pipeline.

To review some of our Q3 progress, we launched or accelerate anything service with Etihad Airways gas program in July which strengthened our relationship and in market service suite in that long time middle Eastern partner.

We also increased our exchange options on the platform in August we increased our exchange service deployments by adding air Canada's Aeroplan program as an additional exchange option with our longest running financial services program partner Chase Ultimate rewards.

This is a testament to the value we continue delivering to our partners both within and outside of travel.

We continue to bolster our services with air Canada in September, adding or accelerate anything capability and adding other exchange options to the program's integration with both choice privilege program as well as the Chase Ultimate rewards program.

As a longstanding partner in our tier status product, we expanded the partnership with our buy gift services early last year and the global travel pause that have continued to rapidly grow our suite of services with.

With air Canada through and beyond the lows of the pandemic.

The strong set of integrations and products, we offer them today demonstrate the efficiency of our deployments and we will work to continue growing this relationship even even further.

While we are benefiting from the continued recovery of the travel and hospitality industries. We are also leveraging these trends to progress our non travel relationships.

Last quarter, we announced our partnership with newly launched exchange service with a built rewards program a program that allows renters to earn points on rent and build path towards homeownership.

Since establishing this relationship in Q2.

Since integrated built rewards with even more partners in Q3, enabling exchanges with Hyatt IHG hotels.

<unk> and air France, KLM flying Blue program.

It's exciting and rapid expansion as an example of our execution on multiple growth drivers and accelerants, we've grown our new non travel partnership by enhancing our deployments with existing partners all around the world. We are pleased with the efficient progress we've made with built so far and we will work to identify additional expansion opportunities across our network.

We continue to expand the exchange options across the platform just after the quarter ended by enabling choice privilege program to exchange with Citibank Thankyou rewards program members.

We made additional progress with geographic expansion subsequent to the quarter and just a few weeks ago, we deployed our accelerating anything product with prominent Latin American carrier Copa Airlines.

This service, which is in market as the connect miles accelerator gives customers the option to pay for a preferential right to boost their miles balance and reach their reward goal sooner.

The distinctive accelerator capability allows them to multiply all miles earn through flights credit card spend online shopping and third party transactions.

As we've long discussed expanding our accelerated product beyond travel only usage has given consumers greater optionality.

With the pace of recovery still being fairly choppy in certain geographies abroad. The transaction. This product has gained the traction. This product has gained with our international partners indicate and expand the expanding engagement options for their members can only serve to benefit the rebound progress.

As a further testament to our international progress as Rob noted in his remarks, we are pleased to announce a new multi service agreement with <unk> Airlines. The prominent APAC carrier, we introduced last quarter, our first deployment with a new partner will launch shortly.

And we'll be the first of what is expected to be a robust suite of services, we plan to launch with them.

We're planning a similar active role with the Marriott <unk> program one of our long term hotel partners just after the quarter end, we launched our top up capability with them. This deployment represents a significant channel expansion of our existing buy services to their full redemption flow, allowing us to take over their existing channel through our <unk>.

Platform.

Being able to launch these legacy baseline offerings offerings is an encouraging sign of both improving near term travel activity trends around the world and the resilience of our platform as a whole.

This resilience is at the core of the ability of our ability to quickly and continually execute on our growth strategies as.

As well as readily adapt to changes across the travel hospitality and loyalty industries.

While we still have limited visibility on how these broader industry dynamics may evolve over the coming months. We believe we are well positioned to maintain our momentum into Q4 and into 2022 and beyond.

We look forward to providing further updates on our progress working to continue optimizing the value we create for our shareholders partners and loyalty customers around the world.

As Rob mentioned earlier the importance of loyalty is elevated during the pandemic with our loyalty program partners looking to drive aggressive growth in the future.

While the timing of when we return back to pre pandemic levels and the shape of the travel recovery are still difficult to predict for a broader partner base.

Our long term growth chart targets remain intact.

With our successful pipeline line activity over the last 18 months combined with the encouraging trends we are seeing throughout 2021 and the growth mandates. We are seeing from our partners reinforce our long term strategy and our growth targets.

Operator, we can now open the call up for questions.

Thank you Sir.

I would like to register a question. Please press the one followed by the four on your telephone.

We will hear three told prompt technology question. If your question has been answered and I would like to withdraw your registration. Please press. The one followed by the three one moment. Please for the first question.

Okay.

As a reminder to register for a question press the one four.

Okay.

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.

Great. Thank you and we'd like to thank everyone for listening to today's call and look forward to speaking with you all again, when we report our fourth quarter and full year 2021 results. Thanks again for joining us.

Ladies and gentlemen that does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.

Okay.

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Makes sense.

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Thanks.

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Thanks.

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Good afternoon, everyone and thank you for participating in today's conference call to discuss points International financial results for the third quarter ended September 30th 2021.

Delivering today's prepared remarks, or Chief Executive Officer, Robert Mclean, President, Christopher Barnard and Chief Financial Officer, Eric Giorgio.

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

That time, if you have a question. Please press the one followed by the four on your telephone.

If at any time during the conference you need to reaching operator, Please press star Euro.

As a reminder, today's conference is being recorded before.

Before we go further I would like to turn the call over to Cody saw update we investor relations points Internationals I R advisor as he read the company Safe Harbor that provides important caution regarding forward looking statements Cody. Please go ahead.

Thank you please be reminded got their remarks on this conference call may contain or refer to forward looking statements within the meaning of Canadian and U S Securities laws.

Management. They also make additional forward looking statements in response to your question. 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 the actual results to differ materially and the assumptions 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 and you.

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 your information in future events or otherwise.

With that said I'll turn the call over to points as Chief Executive Officer, Rob Mclean Rob.

Thanks coding and good afternoon, everyone.

During the third quarter, we continued to drive year over year revenue and profitability improvements those the travel and hospitality industries recover from the pandemic last year.

We generated our fourth straight quarter of sequential gross prop gross profit growth and our transaction volumes grew year over year with both baseline and campaign driven activity performing well.

We did experience some negative impacts from the Delta variant in the second half of the third quarter, particularly with R. U S partners. It has since recovered and it has so far shown to be more of a temporary effect than an indication of a longer term pattern.

We continued to see the strongest transaction levels with these U S based domestic carriers and hotel brands as the U S benefited from easing travel restrictions and broad vaccine availability.

As we continue to monitor recovery trends I'm proud of the resilience, we've demonstrated supporting our partners and driving business development and this dynamic environment.

As you May recall recall Q3 of 2020 had the steepest pandemic related impacts for our our own business and for our partners on their peers, while full recovery to pre COVID-19 levels has proven gradual and choppy across our industry travel and hospitality operators.

Have consistently benefited from the strength of their loyalty programs over the last 18 months.

We have seen loyalty programs consistently outperformed their related airlines and hotels throughout the pandemic.

I will also note a recent asset securitization report found that credit ratings on these securitization remained relatively stable over the past 18 months.

Such loyalty programs have remained a consistent and expensive source of value for operators and form a strong foundation for the industry has continued recovery.

As a result of these factors and the resulting recognition of the significant value of the industry's loyalty programs, we're seeing a market change.

In the posture and objectives of our partners broadly are partners are recognizing the strength of their businesses and are looking to drive much more substantial growth in the future.

While we saw this reflected on our very strong business development trends over the past 18 months. We are now seeing these new growth expectations from partners positively impacting our ongoing operational performance and our long term expectations.

Throughout the pandemic, we expected that loyalty would play an early and important part of the recovery delivering short the midterm growth for the company. However, as we look further ahead and evaluate our position within the loyalty industry, the new and more aggressive posture from our loyalty programs gives us confidence in the long term growth potential of al.

Our business.

We believe the growth targets, we provided before the pandemic remain achievable in the long term and we continue to evaluate the timing of these targets as the travel recovery continues to take shape.

Q3, we rapidly expanded the number of exchange opportunities across the platform with both long longstanding financial service partners and newer programs like built rewards a partnership we introduced in the second quarter.

We continued to gain transaction or traction with our new product innovations launching additional deployments of our subscription and accelerated anything services. We also significantly significantly expanded the reach of our by service with the Marriott Bond Boy program in October taking over the top of channels that is embedded directly.

And the redemption flow.

Chris will have more to say on each of these launches and others later in the call, but I am proud of the clear progress, we've made with strengthening our and market deployments and meaningfully growing our global footprint.

And lastly on our previous call, we announced a new multi service and multi year partnership with a prominent Asia Pacific Terrier I'm pleased to announce that this new partnership is with EBIT airs infinity mileage lands program and our initial slate of services will be launching with them imminently.

As we emerge from the pandemic, we're making swift progress on our core growth drivers.

To speak on our three core growth drivers the launches, we announced and deploy this quarter and body several successful cross sell opportunities and growth within our existing services and we are active with business development conversations across multiple geographies and verticals.

Furthermore, as our transaction levels and broader industry continues to recover I want to reiterate that our strategy continues to be reinforced throughout this period.

Undoubtedly we are better able to execute as geography's reopen and travel operators can refocus on more fully expanding their consumer loyalty options, but even when our industry was challenged our team continued to push on business development opportunities and maintain a robust pipeline ensuring that we were fully equipped to move quickly.

And effectively once the recovery was underway.

This dedication is allowed us to ramp several of our prepandemic launches and execute on our growth drivers in recent months.

We stayed focused and proactive throughout one of the most difficult periods in our industry history and have emerged from it even stronger than we were before.

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 of perspective on our partner activity Eric.

Thank you, Rob and thanks for joining everyone unless noted otherwise all figures on today's call are in U S dollars and presented in accordance with Ifr's.

Our financial results in the third quarter reflect a continued recovery from the lows of 2020.

We have continued to execute on our growth drivers and drive strong year over year improvement amid the ongoing recovery from the pandemic throughout our industry.

We generated revenue of $86.9 million in the third quarter of 2021 compared to $37.4 million in the year ago quarter.

An increase of 132% on a year over year basis.

On a sequential basis, our third quarter topline performance was softer than last quarter due to the relative mix of principle versus commission sales through the period, which was influenced by the timing of our marketing activity with certain partners.

Gross profit was $12.4 million in the third quarter of 2021 up 117% from five $7 million from the year ago quarter due to our continued recovery from the lowest of the pandemic last year.

More importantly, gross profit increased for the fourth consecutive quarter up slightly from $12.3 million in queue too.

Factoring in the sequential reduction and revenue are gross margin increased on a sequential basis as expected moving closer to prepandemic levels.

On an operational level, our marketing and promotional performance remained strong throughout the quarter as they have throughout the pandemic outs.

Outside of some Delta variant related impacts in August and September transaction volumes associated with our traditional baseline activity continued to show signs of recovery and we currently expect us positive recovery transaction trend to continue across our platform into Q4.

Operating expenses and in the third quarter of 21, where $13 $5 million, an increase from $9 million in the year ago quarter and from $11.6 million in the second quarter of 21.

As we announced on our last call Q2, 21 was our last quarter participating in the Canada emergency wage subsidy program, which partially drove the increases in our operating expenses for Q3 on a sequential and year over year basis, we recognized 1.8 million necessities in the year ago quarter and roughly 600.

<unk> 50000 in the second quarter of 2021.

The increase in operating expenses was also driven by the continued using of some spending restrictions we had put in place over one year ago at the outset of the pandemic as we started to hire additional resources focused on growth.

Adjusted EBITDA for the third quarter of 21 came in at $2 million up significantly from negative $1.1 million in the year ago quarter, but down compared to $3.4 million in Q2 21.

The year over year increase was primarily driven by the higher levels of gross profit I mentioned earlier with the sequential softness due to higher expenses as a result of our youth spending restrictions and nonparticipation in the subsidy program.

Turning to our balance sheet total funds available where approximately $93 million at the end of Q3, representing a significant increase from approximately $79 million at the end of 2020.

We remain comfortable with our liquidity position as we progressed into the fourth quarter of 21 and prepare for 2022.

Our progress throughout Q3 and since the beginning of 2021 demonstrates our strong ability to navigate the evolving trends in our industry base.

Based on the trends we are seeing today. We currently expect Q4 to continue the quarter to quarter momentum, we have driven throughout the past year, we continue to leverage our strong operational foundation to execute on our pipeline and keep our business well positioned for long term growth.

Lastly, I wanted to mentioned on upcoming change that will impact our public company name in 2022.

As part of this amalgamation process are legal name at the public company level will change from points International limited to points Dot Com, Inc. In 2022 the.

The rationale for this change is for tax planning purposes, only and does not result in any changes to our underlying business.

And with that I'll turn it over to Christopher.

Thanks, Eric as Rob mentioned earlier, we are continuing to execute on our growth drivers across our new and existing service deployments as well as accelerating our growth and key strategic areas that we were tracking prepandemic.

We are proud to have continued leveraging the strength and flexibility of our platform. So effectively and are well positioned to continue executing on a robust robust pipeline.

To review some of our Q3 progress we launched our accelerated anything service with Sci Airways gas program in July, which strengthened our relationship and in market service Sweet and that long time middle Eastern partner.

We also increased our exchange options on the platform in August we increased our exchange service deployments by adding air Canada's Aeroplan program is an additional exchange option with our longest running financial services program partner Chase Ultimate rewards.

This is a testament to the value we continued delivery to our partners both within and outside of travel.

We continued to bolster our services with air Canada in September, adding R accelerated anything capability and adding other exchange options. The programs integration with both choice privilege program as well as the chase often rewards for.

As a long standing partner in our tier Stratus product, we expanded the partnership with our by gift services early last year and the global travel pause that have continued to rapidly grow our suite of services with with.

With air Canada through and beyond the lows of the pandemic.

The strong set of integrations and products, we offer them today demonstrate the efficiency of our deployments and we will work to continue growing this relationship even even further.

While we're benefiting from the continuing recovery of the travel and hospitality industries were also leveraging these trends to progress or non travel relationships.

Last quarter, we announce our partnership with newly launched exchange service with the built rewards program a program that allows renters to earn points on rent and build path towards homeownership.

Since establishing this relationship and Q2.

Since integrated built rewards with even more partners in Q3, enabling exchanges with Hyatt hotels.

Sorts and air France, KLM slightly program.

It's exciting and rapid expansion is an example of our execution multiple growth drivers and accelerants, we've grown a new non travel partnership by enhancing our deployments with existing partners all around the world. We are pleased with the efficient progressed, we've maintenance built so far and will work to identify additional expansion opportunities Cross our network.

We continue to expand exchange options across the platform just after the quarter ended by enabling choice privilege program to exchange with Citibank. Thank you rewards program members.

We made additional progress with geographic expansion subsequent to the quarter and just a few weeks ago. We deployed are accelerating anything product with prominent Latin American carrier Copa Airlines.

The service, which is in market as the connect miles accelerator gives customers the option to pay for preferential rate to boost their miles balance and reached the reward goals sooner.

The distinctive accelerator capability allows them to multiply all miles earned three flights credit card spend online shopping and third party transactions as.

As we've long discussed expanding our accelerated product beyond travel only usage has given consumers greater optionality.

With the pace of recovery still being fairly choppy uncertainty algraphy abroad. The transaction. This product has gained dissipated attraction. This product has gained with our international partners indicates and expand the expanding engagement options for their members can only serve to benefit the rebound progress.

As a further testament to our international progress as Rob noted in his remarks, we are pleased to announce a new multi service agreement with EVGA Airlines the prominent APAC carrier, we introduced last quarter.

First deployment with a new partner will launch shortly.

And will be the first of what is expected to be a robust suite of services, we plan to launch with them.

We're playing a similar active role with the Marriott Bond Boy program, one of our long term hotel partners just after the quarter and we launched our top-up capability with them. This deployment represents a significant channel expansion of our existing bite services to their full redemption flow, allowing us to take over their existing channel through our plan.

Reform.

Being able to launch these legacy baseline offerings offerings is an encouraging sign of both improving near term travel activity trends around the world.

And the resilience of our platform as a whole.

This resilience is at the core of the village of our ability to quickly and continually execute on our growth strategies.

As well as readily adapt to changes across the travel hospitality and loyalty industries.

We look forward to providing further updates on our progress working to continue optimizing the value we create for our shareholders partners and loyalty customers around the world.

As Rob mentioned earlier, the importance of loyalty as elevated during the pandemic with our loyalty program partners looking to drive aggressive growth in the future.

While the timing of when we returned back to Prepandemic levels in the shape of the travel recovery are still difficult to predict for a broader partner base. Our long term growth chart targets remain intact.

With our successful Pieplant line activity over the last 18 months combined with the encouraging trends we are seeing throughout 2021 and the growth mandate, you're seeing from our partners reinforce our long term strategy and our growth targets.

Operator.

Q3 2021 Points International Ltd Earnings Call

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