Q4 2022 Mondee Holdings Inc Earnings Call
[music].
Okay.
And Chief operating Officer, Jim Deller.
Before we begin I'd like to remind everyone that this call may contain forward looking statements, including statements about revenue.
Growth of our business, our management and government plans and.
And other non historical statements as further described in our press release.
These forward looking statements are subject to certain risks uncertainties and assumptions, including those related to modest growth the evolution of our industry.
Management performance and general economic and business conditions.
I'd also like to point out that the fourth quarter and full year 2022 results are preliminary and subject to final audit.
We undertake no obligation to revise any statements to reflect changes that occur after this call.
Descriptions of these and other risks that could cause actual results to have a material difference from these forward looking statements are discussed in our reports filed with the SEC.
And in our press release that was issued this morning.
During the call. We also refer to non-GAAP financial measures.
Reconciliations of the most comparable GAAP measures are also available in the press release, which is available at investors <unk> Dot com.
With that precise I would like to turn the call Iridium Prasad.
Thank you Jeff.
And welcome everyone to <unk> fourth quarter and full year 2022 earnings call.
We appreciate your interest whether you are a shareholder.
<unk> supply of business partner employee prospective shareholders or analysts.
I will begin todays call with a summary of our business highlights and strategy and.
Then I haven't done that all over to our CFO , Dan <unk> at a more detailed review of our preliminary financial results and outlook.
He will then conclude our session with guy to answer a few questions.
I'm excited to announce that in the fourth quarter of 2022, Mondi continued to deliver profitable growth.
Wrote 70 up $501 million increased 42% year over year, while the net revenue of 40 million was up 19% year over year.
For the full year 2022, but all 70 of 2.2 billion was 2.2 times about 2021 at 966 million of gross revenue.
As you may recall off recall in 2021.
We equaled our 2019 benchmark.
It won't be wanted to distribute that.
Turning to slide four to look at the major industry events impacting one this business.
While 'twenty two 2022 North America domestic air was about 91% the collector protein 19 levels.
International travel, which is our main business, what Jeff 60, 90% the color in 2022.
The positive trend is that international improved to 77% in the fourth quarter of Transcon PTH.
China in particular finally, the whole thing, but and put in bound travel in January 2023, and we expect to experience more rapid recovery off our North America outboard traveled to China in the back half of 2023, given the lead them necessity for travelers to typically plan and schedule.
She had destination trips.
And then to make led labor shortages in 2022 added to basic under supply in Ada and hotel. However in 2023, the labor shortage of agenda, they expect it to improve.
And they have seat capacity is expected to ramp back up in 2023 and data after.
For example, India invested $70 billion to buy 470 planes.
Another positive trend for Monty is a Denver east and millennials, but guessing Polish and influence.
New platforms are required to meet the needs of these growing consumer cohorts such as real time always on curated content combined with conversational and social commerce.
On the headwind side inflation and high fuel costs are driving price increases while decision a P. S may impact both operating costs and business demand in the short to medium term.
However, <unk> is well positioned to mitigate this headwind through its tech platform and value based content.
Turning to slide five which presents more of these geographical destination mix.
This provides a better sense of the potential impact China the openings would have on our business.
<unk>, which is about half China.
Resent that approximately 20% therefore transactions pre pandemic in fourth quarter 2019, I'm in the fourth quarter up 2022 was just 15% of the mix.
We expect to return to that same level and potentially even hired in late 2023 and in 2024.
Outside of China. This chart shows that we continue to capitalize on the ongoing travel recovery in other international markets. For example, Europe increased 22% in fourth quarter 2022 from 15% in fourth quarter 2019.
And India increased to 41% from 16 person or the same period.
It is also important to highlight that our impressive growth is not just travel recovery driven because our net revenue recovery has offset bad debt recovery of international travel.
This is being driven by many factors, including.
Market share gains.
Expanding disruption into product segments of the market beyond flight such as hotels.
<unk> delivered improvements in our diversified revenue streams, such as Fintech and activities.
These result in improved revenue per transaction and take rates.
Digging deeper into our main accomplishments in 2022, and so far in 2023 date about four key areas that continue to drive our strong financial and operating results and will support as part of that during 2023.
But we made significant improvements to our capital structure in 2022.
After a successful debut on NASDAQ on July 19th by.
By raising 85 million of preferred stock with an instrument that is not convertible to common equity and hence not bad year to our shareholders.
Moreover, we purchased all 12 million out of our public warrants.
Another important step to limiting potential dilution of modest common equity.
Creating value for our common shareholders.
These actions fortified our balance sheet in a way that facilitates our organic and inorganic growth strategies. In fact, we deployed about $20 million of this capital toward at gliding or into just a few weeks ago, which brings says second point.
Our inter strengthens <unk> position in Brazilian.
And broader Latam travel market there.
Their portfolio includes 4900 barrel experts as well as complementary local hotel packages and ground transport relationship that will be added to one this content and distribution marketplace.
One day plans to leverage our in depth outstanding and proven management team strong market position and expertise to further expand easily in Latam and globally.
M&A is not a new endeavors, but as we have a history of well calibrated and successfully integrate the transactions.
Which have delivered strong revenue and cost synergies.
And that is the beginning of hot dogs vehicle, they've all for acquisitions.
We plan to continue aggressively executing a targeted accretive acquisition strategy, which will help accelerate our growth and expansion into new geographies as well as offerings of new products and services.
We plan to continue expanding our operations in Brazil, and Latam lithium while also exploring opportunities in other regions, such as Europe and parts of Asia.
We believe that by diversifying our operations, while expanding new products and services, we can better leverages, our platform and marketplace as well as achieve sustainable growth and enhance our position as a leader in the travel industry.
Third we continued to improve and have all our tech platform.
Which Bob side modern marketplace, and consequently, the AD revenue streams.
We facilitated approximately 2.1 million transactions in 2022 up 62% from 'twenty to 'twenty one.
Each transaction according toward multiple flights and hotels arbitration dentists as well as ancillary solutions.
These devotee packaged solutions are providing higher margin revenue streams and driving higher take rate.
Our Fintech revenue grew 186 benefit in 2022 from 'twenty to 'twenty one.
These fintech products include.
Ultimate payment and settlement metrics.
Wallets.
Rod prediction tools and Fintech answer. These in addition, we expect to use a stronger balance sheet to further support growth of our fintech offerings and revenue generating items.
Our transaction growth is supported by the launch of our drip planet platform last year, which has grown to access toward $125 million organization numbers.
Fourth in January 'twenty, two 'twenty three we introduced the Monty expert and Influencer affiliate network program.
Designed to enhance current customer offerings and their travel and experiences as well as increased distribution and reach by collaborating with new travel companies.
But and other businesses.
FDA is getting more holistically engaged more of this technology and marketplace to create expanded travel related experience, while earning enhanced commissions on booking made through the platform.
Before turning the call over to Dan as we look into 2023, we thought it would be helpful to briefly describe more of this market this positioning and our vision.
We believe one is very well positioned for the rapidly developing modern cloud ecosystem as shown on slide six.
Our global content hub features data connectivity it towards 500 airlines and more than 1 million hotel vacation dental and dental costs and we are aggressively expanding into through this and other activities. This expanding content is differentiated in the market by combining discount rate long term contracts real time price.
<unk> data and integration with revenue management systems are Saturdays across a wide variety of offerings.
Technology is at the core of our business and further differentiates us in the plywood industry.
Our platform enabled marketplace is highly scalable and flexible.
Featuring Fintech insure tech marketing Tech and conversational commerce and antibodies.
And later this year, we plan to roll out next Gen platform that we believe to be many yet ahead of what is currently available in the market.
Without stealing too much spend there from this upcoming launch event I can tell you that features include real time, social commerce gross content and local experts on glass.
As our B to B to C content consumers they receive access to curate the cloud supply and experience as cost savings SaaS doors to operate efficiently and access to our tech platform, we distribute through our more than 55000 travel expects affiliate intermediaries and gig economy workers.
As well as access to 125 million closed user group members.
By disrupting a 70 billion subsegment of Pravin, and becoming a leader leading company in in selling wholesale at FID to travel affiliates in North America. One is now rapidly, becoming a leading tech platform and modern marketplace connecting cloud suppliers is economy workers and closet group governance by.
Providing all travel content and expedient tests through IDEXX, but and consume it at.
Our growing segments of gig economy workers employed Saturdays and concierge agents local experts influences curated and content writers.
Clauses of which include travel affiliates and claims of network membership organizations and Smbs, which we are expanding globally.
With that royalty off our business I will now pass the call order data against your CFO Monty, but a review of our financial performance and outlook Dan.
Thank you Prasad and thanks again to our audience for attending.
We are proud of the company's 2022 and fourth quarter financial performance, particularly the continued growth of adjusted EBITDA profitability, especially given that this performance was driven by organic revenue growth.
Fourth quarter gross revenue grew 42% year over year to $512 million net.
Net revenue grew 19% year over year to $40 million.
Our 2022 gross revenue of $2.2 billion was 2.2 X 2021 $966 million, while net revenue of over $159 million was 171% of 2021 $93 million.
Take rate, which we define as net revenue divided by gross revenue.
<unk> to be in line with our expectations.
Take rate for the full year 2022, with seven 2% a substantial increase from 2019 pre pandemic level of four 2% driven mostly by the success of our diversified revenue streams of ancillary and Fintech solutions.
Overtime, we expect take rate to trend upward as a higher portion of our revenue mix comes from the stickier and higher margin transaction add on revenue such as ancillary fintech and subscription as well as a greater mix of hotels and soon cruises events activities.
Furthermore, we are happy with our overall business trends.
We had over $2 1 million transactions in the full year 2022 up from $1 3 million in 2021.
Turning to expenses Q4, GAAP sales and marketing as a percentage of gross revenue decreased to four 6% from five 6% in the same quarter last year.
G&A as a percentage of net revenue was down to five 8% from eight 3% a year ago, which we consider a material improvement.
Adjusted EBITDA EBITDA was $6 million, an improvement of $7 $5 million as compared to fourth quarter of 2021.
We also delivered approximately $16 million of adjusted EBITDA in 2022 up over $21 million from a negative EBITDA of about $5 million in 2021.
Nope that reconciliations of GAAP to non-GAAP are available in today's earnings release.
On a GAAP basis, the net loss was $13 $5 million compared with a net loss of $9 $2 million last year.
On a non-GAAP basis, adjusted net loss was $3 7 million an improvement from a loss of $6 9 million last year.
Looking at our balance sheet, we've used part of the liquidity provided by our entry to the public markets to optimize our capital structure.
At the end of the fourth quarter, we had $87 $5 million of cash while our net debt was reduced to $747 million.
In a nutshell, we have fortified and simplified our balance sheet, which will allow us to pursue acquisitions aggressively support our organic growth plans and combat and commensurate working capital needs.
And in fact, we used approximately $20 million of cash on January 31, 2023 to purchase or enter along with approximately $20 million of stock.
There is also a $10 million earn out potential based on achieving additional accretive EBITDA targets in that transaction.
In terms of 2023 outlook and guidance.
Net revenue is projected to be in the range of $230 million to $240 million representing year over year growth of 40%, 47% measured at the mid point.
Adjusted EBITDA is expected to be in the range of $40 million to $45 million.
In summary, as Prasad alluded to you previously we believe that Monty is in a strong financial position to capitalize on the reopening of the travel industry and our future organic and inorganic growth opportunities.
Turn it back over to Prasad.
<unk>.
Thanks, Dan we are very pleased by our Q4 and full year 'twenty, one detailed again and we look forward to and even stronger 2023.
We are proud that one this highly disruptive business models and cutting edge technology has in a decade or so made it the leading company in the 70 billion sub market in North America.
Now as a listed company with a strong balance sheet.
Look forward to discussing on slide you had thought about it in the 1 billion Mark Mccabe.
That form and modern marketplace.
I think power supply its economy.
And Claude group travelers by providing all travel content and experiences through an expert on tablet apps.
This quarter, we will provide further updates and details on the launch of our Nexgen platform and look for us to take this platform and not more than our success in North America to quickly penetrate and disrupt other rapidly imaging gig economy market throughout 2023.
Thanks for attending our fourth quarter and full year 2022 earnings call and we look forward to your ongoing support.
The operator will just a minor correction when.
Don't forget you're the CFO referred to the net debt figure the correct figure is $47 million absolutely end of the year. Thank you.
Operator with that we'd like to open it up for Q&A.
Suddenly if you'd like to ask a question. Please to all star one on your telephone keypad now.
As a reminder, that Stalin for any questions I will just leave a moment for any.
Questions come into the queue now.
Okay.
Okay.
Okay.
Yes.
Okay.
Thank you.
Okay.
Okay.
Hi.
And our first question today is from the line of Darrin after he of Ross M. Can turn please go ahead now.
Hey, good morning, guys. Thanks for taking my questions nice job on the result.
Couple if I may.
Can you speak to.
The global travel environment.
Stuck about China, reopening and that being a second half catalysts, but just kind of trends you've seen thus far in 2023.
Has it changed at all kind of good bad indifferent and kind of what does your guidance really reflect.
Okay.
Okay.
Hey, Darrin, it's Jim Deller mouth start and then the other guys can jump in.
As you say, obviously, the opening of the reopening of China.
The continuing growth.
In Asia is is very helpful. That's a great tailwind for us given the character of our business historically and our distribution network.
The things we see.
It is clearly we see the supply starting to open back open up again, it's a bit it's a bit nascent at this point, but we see that coming back in as the supply comes back obviously that gives us more options and opportunities to offer a great value too.
To our customers and to their consumers.
We see that trend continuing into and through 2023.
We understand that there are some potential headwinds out there is preceded mentioned in his piece.
They were all talking about what might happen if the economy slowed down globally.
But we see those as you know, we're very well positioned for that we have the type of products. We have the type of value based pricing that in no scenario as it gives us actually a good bit of headroom to to gain even further market share. So those are the things that we see as key.
In 2023, as we push forward.
The last thing I would mention is this.
You know Mondi has been a traditional north American footprint company.
And what we see happening in the gig economy across the World says that there are other markets that continue to grow very rapidly in that space and that for US is great headroom, it's great white space for us to move into.
With the emergence of gig economies in.
Markets, such as the Indian subcontinent et cetera. So bottom line. There are a number of areas that we see the opportunity to expand and grow and we take the market in general will continue to recover and we're well positioned for it.
It's anchored Jamie I'll take the second question, which was above our guidance.
So as you know in terms of net revenue we closed the year with 159 billion of net revenue and we have provided guidance for next year.
In the range of 230 to 240, and then in relation to the EBITDA. We closed the year with 16 million of EBITDA and we have provided guidance in the region of 40 to 45 million.
Would you say.
Lots of 171% increase.
On your on your comment about being.
<unk> potentially being more aggressive like Jeff mentioned I mean, we are confidant over there of the various growth deleveraging the company.
But we see it.
There is a general expectation in the overall market about a potential softening of the economy. So we want to start the year with a more conservative guidance and adjusted.
Throughout the year consistent with our strategy of always beating and raising.
The guidance that we provide to the markets.
That's helpful guys, it's abated squeezing a couple more.
If my math is correct it looks like your marginal flow through on EBIT adjusted EBITDA.
To wrap it was about 35% I guess, how do we think about kind of every dollar of net revenues.
Going through your business going forward and I guess, how influential is a renter on 'twenty three relative to kind of Bondi core business.
Yeah, I mean, our EBITDA margin for the year up to a 2022 was 10% and based on our guide honestly, we're looking at 18% for 2023.
So of course, the dynamic there is that we have a certain amount of overhead.
So one is that having the net revenue increase as and those are markets that cover the impact on the bottom line is disproportionately higher.
So this is a dynamic that is going on in our EBITDA and of course. It also depends the source of the net revenue. We have already mentioned a bigger percentage is coming from higher margin products like retailers and more importantly, our facilities like fintech and other solutions.
All in turn.
Expanding literally dropped out to about the product into hotels and neither are higher margin products, we see yours for m&a's that either G. Complimenting the increasing to take at eight a indifference here with future.
[noise] great. Thank you I appreciate it.
Thank you and next question is from then on it so much <unk> Tom. Please go ahead now.
Great. Thanks for taking my question Bemoaning guess, just a couple of cookies on the outlook and then I had a follow up so just on the revenue growth guidance can you just remind us or call out none of the organic versus any inorganic impact that's one and then to.
Dan maybe any color you can give us on how to think about that the conversion of EBITDA in the free cash flow.
In twenty-three how that might look.
Sure Tom.
On the inorganic versus organic growth and guidance right. Now, we're just combined providing a combined guidance of the 230 million to 240 million as Arrestees mentioned, well, we'll get to know a renter and other acquisitions better as time goes on and we want it to be fairly conservative with.
Our approach here as we learn more about them they learn more about us and as we go through our integration.
And so as a result, we're not we're not going to be recording those separately. We are one mondi going forward and that's how we are how we were looking at it.
So hopefully that answers your question, yeah and to give you a beautiful color I mean, you can reverse engineered from there announcement, we made rights I mean, we didn't we didn't provide the detailed breakdown, but from the announcement numbers you can reverse engineered about 20 million coming from that acquisition.
Internet So you know the.
The bulk of the increased from 159 to 230 to 40, he's organic right. So that is a component there of course that is the.
Acquisition, but like gunmen, Sean I mean, the way we integrate these companies we take their content would take that distribution and we plug it into our tech enabled because he stamp. So you know after a few months, it's it's difficult to differentiate the word.
That everything is coming from so.
We're providing combined guy that and we're updating of course as we go out on and add more pockets to you know.
To our strategy.
Great and any color on and kind of free cash flow conversion.
Oh, sorry, yet so for for 2023.
We anticipate that improve.
Improvement on the free cash flow conversion compared to 2022, and 20 points you actually we had a significant number of one time events as being part of a business that was going public, which obviously impact and distorted some of our free cash flow as well as a business in 2022 that was in recovery remembered the early part of the year included the impacts of.
Jimmy Cryin War in Europe and.
And our business was continuing to really ramp back up to pre pandemic levels. Obviously, we've been able to eclipse that which is obviously terrific news, but as we continue to grow and expand our business in 2000 twenty-three will see a more healthy return to our conversion between EBITDA and free cash flow.
Okay. That's helpful. Ah one more if I could I.
I think the sled for in the in the deck some of the the different bar charts on the different regions. It looks like you know North America on a transaction basis I presume those charts of transactions not not revenues, but it looks like North America is still you know a bit behind.
Versus kind of comparable period of 2019 can you talk a little bit about you know maybe what's happening there what needs to happen for you guys to kind of.
Kind of start recovering more meaningfully innocuous.
Yeah. Those are not absolute numbers also has a percentage of our total driving as you see so now that we have gained market share an additive geography's, it's only natural mathematically that the percentage of the U S is less.
You see so if you add everything together and that's like that's the 100%.
So so if I got it.
Is less it doesn't mean that would have been less than having you as in North America. Just means that we have more of English from other geographies legs exactly so is normalizing.
I see this is this is your mix basically.
Revenue mix, Okay. Okay, and then just the last one.
If I could hotel business, maybe just talk a little bit about your expectations for for that and twenty-three I don't know if you give us a sense of like what percentage of the business maybe it will be 120 threes over and I was hoping maybe I know expedia plays until about wholesale distribution for hotels, they've been getting into that.
A little bit more meaningfully can you made me just kind of compare contrast, what you guys do versus you know maybe that particular component.
Historically, we have been and play of <unk>.
And we have a great headroom into the hood in space.
And the odd strength he is compared with any other player in the market is our distribution.
So we have this distribution do the pillows user groups as well as.
A private and all.
Tenants.
Which that you would like to you know.
Distribute our products and where there's a huge demand for couldn't.
So it expecting that to be in all knocked up 15% to 20%.
Is that all put in thing.
However is there.
This includes the packages and other aspects that we include in electrics.
Which which may have both an hotel in other products into it yeah. So for sure Koteles, a it's a big opportunity.
Especially given the very low base.
Where we are coming from I mean, there is potential for expansion both organically and Inorganically right. So if you look at that most of the acquisition that we have announced that many of the others who are working on a unifying features that they covered by fire higher mix of Cortes right. So that's improving a lot.
Product that we have to offer and the pricing on there were 10 sites like for a sad man, Sean our strengths and therefore tennis paces nothing the batik connectivity with the hotels.
I think the distribution and because we have a very differentiated this region you management Expedia patina solutions, that's effectively a bad bank with a direct connectivity with a number of suppliers globally. Our strength is not in that better connectivity, we have a number of ways of receiving the content both through Expedia pants.
As well as other bad banks, which are fed him a more competitive at eight in Sefton local geographies and then in addition to that through the acquisition. We are building our own data connectivity is when will just prior to than improving the margins.
Okay. That's very helpful. Thanks, I appreciate it.
Thank you very much. Our next question is from the line of Bretton a block of come to the shows but please go ahead.
Alright I. Thank her for taking my question and congrats on the quarter as I look through I guess, you got it for the year can you help us with the seasonality of it and maybe on both revenue and adjusted either given the acquisition should we expect maybe you know obviously.
Full quarter of contribution to be getting in the second quarter and the the first quarter might have a bit of a margin and pack just because you're gonna be recognizing maybe more calls from the revenue alright, I have that should play out throughout the year.
Yes that is absolutely right I mean, what we would say orange choice because you will see an announcement without coming soon the first court. There I mean, there are a number of dynamics going on right. The first one is seasonality.
Which arrived dementia that different corporate stuff dividend Seasonalities with Q3 to four, especially you know having higher higher stronger arriving as overawed chuan.
Two one kind of closer to the bottom.
Rather than I mean cause that we're growing right extremely fast so that kind of overshadows. The that is an island and creates kind of a blend which is upward looking.
Throughout the year and then the other element, which is very important in this Q4 of 22 and Q4 of 23. The company has been very busy with a number of initiatives introducing new Tech platform. You will see a few announcements of course is always when they are being launched they tend to harvest have been you know.
Potential slowdown.
For a few weeks a few months. So we see basically all clear to me too I'm being the lowest are much lower than the rest of the year and then the rest of the yet encouraging not only because of this is on holiday and not only because of our growth, but also because he Q1. The company has been very busy introducing new platforms integrated.
Companies et cetera.
Got it and then maybe just I don't know if you guys gave it an overall take great guidance for the full year, I guess, where should we expect that to come in at.
It's in north North of where do we we finish the year of 7.2% right away is very difficult to give a precise number I mean, we gave guidance on the net driving you and they'd be daft from that you cannot deduce that take right, but it would be not of the 7.2%.
We have closed it yes. They are another parameters the mix of the new M&A right multiple tags.
What is my flight. So so given the uncertainty of the of the targets that would be closing I mean, we have a number of categories dancing, but there is no as you know M&A that as I'm sure. There is always an execution raised because of that we don't want to give a number that may end up materially increasing ah.
And which would otherwise not appear to be accurate when all this m&a's incorporated.
Perfect and then if I could just maybe they won't follow up if you had to kind of point. This read markets of reasons. This year that you you kind of need and you know and the travel recovery to really kind of pick up steam for you guys to kind of reach your guidance, which markets would they be.
The recovery.
If I got this I got the question bread, you, you're you're asking us which of our markets will be the best.
The best performers Forrest this year that we expect to get the economy, yeah to get to to.
To recover I mean, certainly obviously as we've talked about on a few occasions.
Asia is quite important and we have great expectations. So that's probably number one.
We see a lot of opportunity.
Expanding beyond and people tend to focus on China, there, but we see going through the hole in the subcontinent.
So we see that is another great market and then Latin America definitely is a fig market for us and obviously, we've taken the first big step there.
Hopefully, it's one of many but we see that as the next big market for us to go after.
Perfect. Thanks, guys appreciate it.
Next question is from the bone of Monkey Grondahl of Molson Securities. Please go ahead now.
Hey, guys. Thanks, He could you help us out with a little bit more granular information.
How old is airlines do hotels cars.
Cruise events and then the ancillary bucket like you know just how did each one performed kind of visa the your expectations, where the above below.
Those five buckets it'd be helpful to get a little color on.
Yes. They are so far they are in line with our expectations as you know from the different backs that we have out there we're not we're not yet breaking them down I mean, everything together a package as cortez cause ancelotti et cetera, it's about 20%. That's how we are classifying them now they are growing and.
Line with our expectations cruises has you know they were you know launched only to a very few number of customers test there than your platform. We will talk more about that going into the rest of the quartet for various initiatives that will announce but so far in line with our expectations and clear.
A long way to go only up because it's a it's a very very small pot a relative to the rest of our business are you know, it's we gave the figure out its domestic carver at private has it covered international priorities recovering slowly slower and I'm slowly I mean, he went to.
Or 77% of the most in the last quarter of of the of 22 related to the last quarter of over 19, I mean in the last quarter as you know their Austria b the way towards very disruptive events that you have seen the results of all the major companies I mean towards three hailstorms disruptions with.
She stands over there the Asians acuity. So it's crucial to highlight here that despite all those things that impact the hood.
Flight spades much more van Horn tennis space. Despite are those and despite slides being 80 per cent of our market. We were able to beat this the street expectation in both net revenues and EBITDA and net profit. So I think this is a this is something that was a highlight enough from our numbers.
This is great that you're pointing it out in relation to the flight performers in the market in general in the last quarter.
Got it and then.
Secondly, you guys have talked about the back row, a little bit it in in the past mentioned the strong dollar.
And that kind of helping international travel U S to other parts.
How would you describe the macro today is it a bit of a tailwind a bit of a headwind kind of what do you see.
Yes. So the same I mean, there are similar dynamics of course with regard to the strong dollar I mean the throat.
<unk>, but then on the other hand, you have new trends, which we believe are even more positive to our business for example.
For the for the most of 22 Ah there was generally in Undersupply right, especially in flights I mean, especially in intelligence basically domestic flight. So we see that dynamic changing and that's crucial because as you know you know we have a an indispensible part of the travel cause it's damn which becomes even more indispensable.
You know with higher capacity the excess capacity. So we are seeing that trend or undersupply of 22 in reverse and not only because of changes in the labor markets. I mean, there was a report yesterday, you know about the hotels and airlines finding it much easier to recruit but more importantly, we see it on the Quebec side I mean, you see giants like.
India, They've announced acquisition of 470 aircraft, which is.
They are the biggest thoughts that he said it might be Asia. So so clearly in 23 and 24, we expect extra supply to increase which is you know is positive for our business and is more.
Impactful than the slide kind of a devaluation that would have seen in the in the U S. Dollar, which is naturally you know after a year of a year on the App continued up as Asia is only natural and there is a bit of a change that Jim I Dunno I was the only thing I would add to that is is that.
The whole pent up demand that we've all been talking about through most of last year.
It was not entirely satisfied right on the character of it might have changed a little and the groups.
Groups that will step out for us to have changed a little but.
As the dollar is moderated we don't see that as hurricane getting as a matter of fact, we see it in some of these groups is helping so we.
We think that pent up demand will continue to.
To to make its way out maybe not as.
Straight line bottom left upper right that everybody had thought but generally that trend we expect to continue.
Got it and then just lastly.
Anything to call out in some of your newer subscription businesses or in some of the partnership that you've talked about in the past E B G or Arthur Gallagher.
Any relevant update.
The one thing I guess, we could we could add there is we've starting in fourth quarter, we start to focus on.
Better penetration, if you will or faster penetration of that 125 million member base that we have access to through some of those organizations.
And we see that starting to pay off we see an increase in our average daily transactions from last quarter. The fourth quarter of 22 to the first quarter of 23, so far today. So we see those efforts paying off we expect to to be able to continue to mind that.
Again will will will help us as we grow and you will continue to expand.
That set up portfolio right with we're going after the experts we're going after you know a.
A lot of local local capability local providers so as we can.
Improve that network and grow that network, you'll you'll see good results coming from those businesses and the Bee Gees, specifically you may recall from the last quarter scores that the emphasis for 22 was to provide our flight content to them right, which we have we have provided for.
The most part on nearly all of their platforms and you may own started call that the next stage in the evolution of that partnership was the reverse was for Monday to stop consuming AVG content like theme parks tickets events et cetera, which required more time, because it required the creation of a new technology platforms.
So that is what we have been working in the last few Cortes and we hope that in 2023 that element of the equation will start banning results is wet.
Got it Okay, Hey, good luck and twenty-three K.
Thank you. Thank you.
Thank you is a phone reminder, if you'd like to ask any further questions. Please.
For the one on your telephone keypad now and our next question is from alone to Jeff Kelly of Oppenheimer check. Please go ahead.
Hey, great great. Thanks for taking my question is nice quarter, just a few if I may I sort of look at your revenue growth transaction growth.
Relative to other companies that are in the travel distribution space, you seen that being recovering quicker than a lot of them are so can you talk about what sort of the underlying what's driving some of those underlying share gains and then my second question sort of as a follow up can you give us any metrics around.
Me get engagements of the travel agents using they're using your platform relative to those same travel agents that are using other platforms. Thank you.
Okay. So I'll take the first question. So there is one that you see our method everything is growing faster.
Then the market is because our recovery is not.
He's not market driven there is an element of market recovery, but that are much. There are other dynamics that are going on here. The first one is that we are increasing market share, which you have seen I mean, there are a few slides and our bags you can see how they grow that we've got historically and we continue on that positive trajectory. So that's the one <unk>.
One element that it's important the second element that is b as important as you know the segment of the market with these wrapped it was the the flight consolidated market. It as a 70 billion market in North America and now we're expanding beyond that we discuss what tells me. These guys cruises, we discuss other content. So as we disrupt adjacent segments not only were growing up.
Mike It's sharing army market, but we are increasing our market sharing markets that were you know a priority previously not not their right thirdly, we grow.
Graphically, both organically and and we've M&A and then last but not least our technology is unimportant driver. Because these are you know even even on the same on the same girl that I mean, he was we're realizing much more mentoring he was because of the high of take rate, which is that is that the fintech in short that Martek you know all the.
<unk> solutions, which are powered by these very unique.
Technology that we have and then last but not least.
We feel that we are in a in a segment we have serving the needs of the new consumer which are currently not being adequately addressed by the by the platforms that are out there.
We have made the point many times that they they they're solutions out there are they are they are mostly K bedding.
With the nineties based technology to the to.
To the Boomer and the genetics, so now the the new generations, the gym Xena millennials.
Have completely different needs they have different ways of making decisions on how they consume travel very much in line with cow E. Commerce is called is consumed with Sony.
Social media with mobile labs, and we feel that the technology that we have been developing and we are developing is more in line with this generation on shift and that explains.
Shall we also.
The the exponential growth that we feel will be enjoying in the foreseeable future.
It did it Jim let me just add on to sort of the second part of your question.
The.
The traveling immediately marketplace in general right the travel agents the experts.
The local the local providers et cetera, Let me look we we believe we have the most tech Ford platform out there and it has been we also believe the most comprehensive platform and everything we've talked about and you've seen is published say, we're just continuing to build and expand on that.
Right the breath of services, starting with just flights and the richness of that content on adding to it so with that sort of very tech forward very user friendly platform for that intermediary customer.
Penetration has been great and it's even bigger with sort of that Gen Z and the geek economy side of that market, which is just burgeoning now so.
The platform continues to penetrate we think we think it is one of the dominant platforms out there.
And everything we're doing is intended to only make that better. So we have big plans for that you'll see that we announced the launch of our affiliate program.
And that affiliate program is simply to put an exclamation point on all of that effort, where we're going to allow our affiliates to have even deeper and richer access to all of our technology all of our tech features as Arrestees discovered a and.
And be able to service their clients so much better so.
Those things just start drawing the market to us.
And we will continue to very aggressively pursue that that that segment that intermediary segment and the and the penetration of it.
Thank you.
Thank you I mean, there's no more questions I'd like to turn the call back over to Jefferson.
Thank you yeah, we just like to express our gratitude to everyone for listing in watching the web webcast or the replays or reading the transcripts for them and for their attention to 90.
And would welcome the opportunity to schedule a call present, the company and answer any questions. You may have you can get more information at our website investors that Monday dot com or you can send us an email at <unk> at <unk> Dot com. Thank you.
Mmm.
This concludes today's cool. Thank you all for joining you may now disconnect your lines.
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