Q2 2024 Yatra Online Inc Earnings Call
Speaker 1: F.
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Okay.
Hello, everyone and thank you for joining today's yet your fiscal second quarter. Two instance pool earnings call. We are currently just pausing for a couple of minutes to allow people.
Speaker 2: Hello everyone and thank you for joining today's Yatra fiscal second quarter 2024 earnings call. We are currently just pausing for a couple of minutes to allow a few more participants to connect, but we will be getting underway shortly. During the call if you'd like to ask a question, please press star followed by one on your telephone keypad. And thank you again for your patience and for standing by, we will be getting underway shortly.
To connect but we will be getting underway shortly during the call if you'd like to ask a question. Please press star followed by one on your kind of thing keypad and thank you again no patient of the study by we will be getting underway shortly.
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Speaker 1: The.
Yeah.
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Speaker 2: Hello everyone and welcome to today's call titled the Yatra fiscal second quarter 2024 earnings call. My name is Ellen and I'll be the call operator for today.
Hello, everyone and welcome to stay cool touch with the Yatra fiscal second quarter 'twenty 'twenty four and cool My name is Ellen and I'll be the cool off great day.
Speaker 2: During the presentation, all participants will be on mute. However, at the end of today's presentation, there'll be an opportunity to ask a question. If you'd like to ask a question at this time, please press star followed by one on your telephone keypad. If at any point your question's been answered or you change your mind and would like to revoke your question, please press star followed by two.
During the presentation, all participants will be on mute. However, at the end of todays presentation there'll be an opportunity to ask question.
You'd like to ask a question at this time. Please press star one if I want on your telephone keypad. If at any point. Your question has been object or you change your mind I would like to go back to your question. Please press star followed by T O.
Speaker 2: I would now like to turn the call over to Manish, Hermann Raji, Vice President of Corporate Development and IR to begin. Please go ahead whenever you're ready.
I would now like to turn the Kool aid that niche high Mountain Rajeev <unk>, Vice President of corporate development and I ought to begin. Please go ahead, one have you already.
Thank you Ellen and good morning, everyone welcome to <unk> fiscal second quarter 2024 financial results.
Speaker 3: Thank you, Ellen. Good morning, everyone. Welcome to Yatra's fiscal second quarter 2024 financial results for Spirit ended September 30th, 2023. I'm pleased to be joined on the call today by Yatra CEO and Co-founder Jules Schringi. And group CFO Rohan Mittal.
September 32023.
I'm pleased to be joined on the call today by addressing you in coupon a jewel changi.
And group CFO, Doug <unk>.
Speaker 3: The following discussion, including responses to your questions, reflects management views as of today, November 17, 2023. We don't undertake any obligation to update or revise you.
Following discussion, including responses to your questions reflects management's views as of today November 17, 2023, we do not undertake any obligation to update or revise the information.
Speaker 3: Before we begin our formal remarks, let me remind you that certain statements made on today's call may constitute forward-looking statements which are based on management's expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially. For a description of these risks, please refer to our filings with the SEC.
Before we begin our formal remarks, let me remind you that certain statements made on today's call may constitute forward looking statements, which are based on management's current patients and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially.
A description of these risks.
Please refer to our filings with the SEC.
In our press release filed this morning.
Speaker 3: These filings are available from the FCC and also on the investment relations section of our website. With that, let me turn the call over to Dhruv. Dhruv, please go ahead.
Filings are available from the SEC and also on the Investor Relations section of our website.
With that let me turn the call over to drew.
Please go ahead.
Thank you Monique and good morning, everyone. Thank you for joining us for our second quarter earnings call. It is my pleasure to share that for the third consecutive quarter we have.
Speaker 4: Thank you, Manish. And good morning, everyone. Thank you for joining us for our second quarter earnings call. It is my pleasure to share that for the third consecutive quarter, we have expanded our market share in the air travel sector. In the second quarter of 2024, our air passenger booking surged by 31.2 percent year over year, far outpacing the industry's growth rate of 22.7 percent.
I ended our market share in the air travel.
In the second quarter of 2024.
If I can get bookings surged by 31, 2% year over year far outpacing the industry's growth rate of 22, 7%.
Speaker 4: This not only underscores the Yatva brand's resilience, but also highlights our competitive edge in capturing market share.
This not only underscores the outdoor brands as the news, but also highlights our competitive edge and capturing market share.
Speaker 4: International travel has also shown a steady improvement during the quarter ended September 30, 2023, reaching approximately 90% of the pre-COVID level.
International travel has also shown a steady improvement during the quarter ended September <unk>.
23, reaching approximately 90% of the pre COVID-19 levels.
Speaker 4: As we move forward, we remain optimistic and committed to leveraging these positive trends to drive further growth and success.
As we move forward, we remain optimistic and committed to leveraging these positive trends to drive further growth and success.
Speaker 4: In the corporate travel sector, we further strengthened our position by securing 13 new corporate accounts in the quarter. These accounts carry a potential annual billing of about 830 million INR, which is roughly USD 10 million, reflecting our platform's capability and leadership in the market.
In the corporate travel sector, we further strengthened our position by securing two new corporate accounts in the quarter.
These accounts carrier potential annual billings of about $830 million.
Which is roughly USD 10 million.
Reflecting our platform's capability and leadership in the market.
Speaker 4: Beyond the quarter, we have continued a momentum in closing deals with significant clients like Welfare and a major multinational corporation wherein we will manage their travel needs across various regions in Africa, in Asia, further expanding our influence and operational footprint.
On the quarter, we have continued our momentum in closing deals with significant clients like Wells Fargo.
The major multinational corporation, we didn't even manage their travel needs across various regions in Africa in Asia, whether expanding our influence and.
The operational footprint.
Additionally, some of you may have seen in our press release. This morning, I would also like to share that the board has authorized a share repurchase of up to USD 5 billion.
Speaker 4: Additionally, as some of you may have seen in our press release this morning, I would also like to share that the board has authorized the share repurchase of up to USD 5 billion of our NASDAQ-listed YTRA shares, underscoring our confidence in Yatra's future and our steadfast commitment to delivering shareholder value.
I'll find NASDAQ listed <unk> shares.
Underscoring our confidence in the outlook future.
Steadfast commitment to delivering shareholder value.
Speaker 4: This authorization represents approximately 5% of Yatra Online Inc's market capitalization based on the current share price.
This authorization, we plan represents approximately 5% of your alcohol online inks market capitalization based on the current share price.
Speaker 4: Now let me provide some more color on the macro picture. According to the International Monetary Fund, global inflation is projected to gradually decrease from 8.7% in 2022 to 6.9% in 2023 and further to 5.8% in 2024. This trend is attributed to the implementation of tighter monetary policy and the stabilization of international commodity prices.
Now, let me provide some more color on the macro picture.
According to the International Monetary fund global inflation is predicted to gradually decrease from eight 7% in 2022.
Six 9% in 2023 and further to five 8% in 2024.
Ken is that attributed to the implementation of tighter monetary policy.
The stabilization of international commodity prices.
Speaker 4: Amidst this backdrop of softening inflation, India's economic landscape remains particularly robust, buoyed by a significant public capital expenditure initiative and a strong domestic economy. The Indian economy is poised for consistent growth with projections estimating 6.3 percent increase over 2023 and 2024. This positive trajectory underscores the resilience and dynamic nature of our economy.
With this backdrop of softening inflation, India's economic landscape remains particularly robust buoyed by a significant public capital expenditure initiatives and a strong domestic economy.
The Indian economy is poised for consistent growth predictions estimating six 3% increase.
Over 2023 and 2024.
This positive trajectory underscores the resilience and dynamic nature of our economy.
Speaker 4: Travel does tend to be closely linked to the growth in GDP, and over the past decade, we have seen travel growing anywhere between one and a half X to two X of GDP growth.
Will does tend to be closely linked to the growth in GDP and over the past decade, we have seen travel growing anywhere between one and a half X to do excellent GDP growth.
Speaker 4: India's per capita GDP has also witnessed an extraordinary growth trajectory. Increase in GDP per capita has required
And does blow catheter GDP has also weakness in extraordinary growth trajectory increasing GDP per capita has acquired.
Speaker 4: four decades from 1960 to 2000 to achieve a fivefold...
Oh decades from 1960 degree program to achieve a fivefold increase.
Speaker 4: But the same 5-fold increase has been achieved in just the last two decades.
Name Fivefold increase has been achieved.
In just the last two decades.
Speaker 4: This is growing at a compounded annual growth rate of 25%.
This is growing at a compounded annual growth rate of 25%.
Speaker 4: This surge in per capita income is a key driver for heightened discretionary spend, with travel and dining out emerging as the primary beneficiaries.
The surge in per capita income is a key driver for heightened especially Spain.
I will then dining out emerging as the primary beneficiary.
Speaker 4: Amidst this landscape of an accelerating rise in discretionary income, we are confident in our potential to surpass market growth rates. Our strategy to capture a greater share in the corporate travel market, coupled with the sustained strength of our consumer brand, positions us well for continued expansion and success. Now let me provide you with some more data.
Amidst this landscape often exploiting garages and discretionary income, we're confident enough potential to sell Pos market growth rates.
That is due to capture a greater share in the corporate travel market, coupled with the sustained strength of welcomed zillow guy positions us well for continued expansion and success.
Now let me provide you with some more details on our second quarter.
Speaker 4: Our revenue for the quarter ended September 30, 2023, was reported at Rs. 947.6 million, approximately USD 11.4 million, up 14% year over year.
Our revenue for the quarter ended September 30 of 2023 was reported at $947 6 million approximately USD $11 4 million up 14% year over year.
Speaker 4: Adjusted margins from air ticketing of USD 12.3 million were down by 4.8% year-over-year, largely on account of an almost 15% decline in air ticket prices year-over-year.
Adjusted margins from Air ticketing.
With the $12 3 million were down by four 8% year over year largely on account of almost 15% decline in.
Ticket prices year over year.
Speaker 4: Adjusted EBITDA for the quarter reached INR 35 million, approximately USD 400,000. This is lower versus the September 2022 quarter at INR 77.7 million or approximately USD 900,000. We incurred IPO-related listing fees during the quarter of INR 68.2 million or USD 0.8 million, which are one-time in nature.
Adjusted EBITDA for the quarter at least INR $35 million.
Ultimately you have people 100000. This is nor was the September 2022 quarter.
INR $77 7 million or approximately USD 900000.
We incurred IPO related listing fees during the quarter of INR, $68 2 million or <unk>.
U S D 0.8 million, which are onetime in nature.
Speaker 4: Moving on to further details of the quarter, the corporate segment was somewhat impacted in the September quarter with softness and travel sales in the IT and ITES sectors.
Moving on to further details of the quarter. The corporate segment was somewhat impacted in the September quarter with softness in travel spend in the <unk> and.
And <unk> sectors.
Speaker 4: We are confident, however, of the recovery in the near term from our largest contributing sector. We expect that the new business that we have won is likely to offset the drops that we have seen on account of the softness in the IT-ITA segment by the first quarter of calendar year 2024.
We are confident however that the recovery in the near term from our largest contributing sector. We expect that the new business that we have one is likely to offset the drop that PNC on account of the softness in the <unk>.
This segment.
By the first quarter of calendar year 2024.
On the hotel front revenue from our hotel and packages business, what was the INR $366 million, which is approximately USD $4 4 million in the three months ended September 30 of 2023 as compared to INR 267 million or USD, three 2 million in the three months.
Speaker 4: On the hotel front, revenue from our hotel and packages business was INR 366 million, which is approximately USD 4.4 million in the three months ended September 30, 2023, as compared to INR 267 million or USD 3.2 million in the three months ended September 30, 2022. This reflects a 37 percent increase year over year.
Ended September 30 of 2022.
This reflects a 37% increase year over year.
Speaker 4: The increase in revenue is attributable to recovery in domestic travel, along with the addition of new distribution partners and the focus on selling better quality hotels aimed at business travelers.
The increase in revenue was attributable to a recovery in domestic travel along with the addition of new distribution partners and the focus on telling better quality hotels in their business travelers.
Speaker 4: From a competitive standpoint, the intensity has remained stable from the last quarter and remains manageable overall.
From a competitive standpoint, the intensity. It has remained stable from the last quarter and remains manageable overall.
With the positive macro backdrop and give them the ongoing recovery in corporate and leisure travel and the rising discretionary spend and knowledge significantly bolstered balance sheet. We believe we are poised for a strong FY 'twenty fortinet quite 25.
Speaker 4: With the positive macro backdrop and given the ongoing recovery in corporate and ledger travel and the rise in discretionary spend and now a significantly bolstered balance sheet, we believe we are poised for a strong FY24 and FY25.
Speaker 4: Asides from seasonality, we expect our results to benefit from accelerating growth in both our corporate business and consumer business as we continue to add to our formidable blue-chip customer base and leverage the strengths of our brand.
Trump seasonality.
Expect our results to benefit from accelerating growth in both our corporate business.
Consumer business as we continue to add to our formidable blue chip customer base and leverage the strengths of our guidance.
Speaker 4: Just to reiterate, today, Yatra India serves one out of every four of the top 100 listed companies in India, three out of the big four accounting firms, and three of the top five technology companies in India.
As to the trade today, Yeah trained ourselves one out of every four of the top hundred listed companies in India.
Out of the big four accounting firms.
Adult biotechnology companies in India.
Speaker 4: In addition, as part of the IPO, we have also earmarked Rs 1.5 billion, USD approximately 19 million towards M&A and are evaluating opportunities in the B2B space that allow us to expand our product platform for our business travel customers.
In addition, as part of the IPO. We have also earmarked rupees, one 5 billion USD approximately $19 million towards M&A.
We're evaluating opportunities in the <unk> space that allow us to expand our product platform or a business traveler customers.
Speaker 4: Given our stronger balance sheet following the IPO, we've already begun to see early signs of improving supplier margins in the current quarter and expect this to gain further momentum in the quarters ahead and have a meaningful positive impact on our operating performance going forward. In addition, we have also seen the positive impact from the IPO and a stronger balance sheet in one of our large corporate customer contract discussions, which has had a favorable outcome for Yatra and we expect to see more of these in the quarter to come.
Given our stronger balance sheet following the IPO, we've already begun to see early signs of improving supply margins in the current quarter and we expect this to gain further momentum in the quarters ahead.
Meaningful positive impact on our operating performance going forward.
In addition, we have also seen the positive impact from the IPO and a stronger balance sheet and one of our large corporate customer contract discussion, which has had a favorable outcome for you out there and we expect to see more of these in the quarter to come.
With these positive tailwind, we expect our operating performance will continue to improve quarter on quarter in the near term.
Speaker 4: With these positive tailwinds, we expect our operating performance to continue to improve quarter on quarter in the near term.
Speaker 4: With that, let me hand it over to Rohan to walk you through the details of the financial performance. Rohan.
With that let me hand, it over to Ron to walk you through the details of the financial Department real hard.
Thank you.
Speaker 3: I will now review our quarter 2 numbers for the quarter ended September 30th, 2023.
I will now review our quarterly numbers for the quarter ended September 30 of 2023.
Our gross booking for quarter two.
Was INR 17, 5 billion, which is roughly $211 million USD.
This was up by 10% on a Y O y basis.
Speaker 3: are two main segments, air and hotels and packages. Both grew by 12% on a worldwide basis during this
Our two main segments.
Hotels and packages both grew by 12% on a wide basis during this week.
Speaker 3: For this quarter, our revenue grew by 14% to INR 948 million, which is about 11.4 million USD, on account of sustained elevated travel demand.
While this quarter, our revenue grew by 14% to INR $948 million, which is about $11 4 million USD.
On account of sustained elevated travel demand.
Speaker 3: A registered margin from the air ticket business reduced by 5% to INR 1 billion due to limited access to airline deals and quotas.
Adjusted margin from that.
Business reduced by 5% to INR 1 billion due to limited access to it and use in quarter two.
Speaker 3: The adjusted margins from hotel and package business increased by 16% Y1 to INR 278 million, which is about 3.3 million USD. The increase is on account of recovery in the domestic travel, along with addition of new distribution parcels.
The adjusted margins from hotels and packages business increased by 16% to INR 278 million, which was about $3 3 million USD.
The increase is on account of recovery in the domestic travel along with addition of new distribution partners.
Speaker 3: Adjusted margin from other services increased by 21% on a YY basis to INR 50 million.
Or just your margin from other services.
Creased by 21% on a worldwide basis to INR 50 million.
Speaker 3: This increase in adjusted margin is due to the increase in revenue from our other B2C programs.
This increase in adjusted margin is due to the increase in revenue from our other because he bonuses.
Speaker 3: the total adjusted margin for all the three segments put together remained flattish.
The coconut deferred margin for all the three segments put together remained sluggish.
Speaker 3: Our other revenue increased by 43% on a YY basis to INR 144 million, primarily on account of increasing advertisement revenue.
Other revenue increased by 43% on a whiteboard visits to INR $144 million.
Primarily on account of increase in advertisement revenue.
Moving to the expenses.
Speaker 3: Our quarter 2 marketing and sales promotion expenses, including the consumer promotion loyalty program costs, increased by 4% on a yy basis to an 832 million, which is about $10 million.
Quarter, two marketing and sales promotion expenses, including the consumer promotion loyalty program costs increased by focusing on a worldwide basis.
$832 million, which is about $10 million.
Speaker 3: this marketing increase lagged the overall gross booking growth of 10% which is a positive.
Marketing increased lagged the overall gross bookings growth of 10%, which is a positive sign.
Speaker 3: Our personal expenses, excluding the shared base payment expenses, increased by 11% yy to INR 279 million, which is roughly 3.4 million USD, primarily on account of the annual appraisal cycle.
Our personal expenses, excluding the share based payment expenses increased by 11% Y O y to INR $279 million, which is roughly $3 4 million.
Primarily on account of the annual appraisal cycle.
Speaker 3: Payment gateway costs as a percentage of the total gross bookings remain range bound.
Payment gateway costs as a percentage of the total gross bookings remained range bound.
Speaker 3: Other expenses excluding payment gateway reduced by 16% on our Y1.
Net expenses, excluding payment reduced by 16% on our way.
In quarter, two we have completed the cost accounting of IPO expenses and taken a one time charge of INR 68 minutes because keeping.
Speaker 3: In quarter two, we have completed the cost accounting of IPO expenses and taken a one-time charge of INR 68 million, which is a little below a million dollars.
Keep them $1 million.
Speaker 3: Adjusted EBITDA profit stands at INR 35 million as compared to INR 78 million in the quarter ended September 2022.
Adjusted EBITDA profit.
Contract INR 35 million as compared to INR $78 million in the quarter ended September 28, we need to.
Lastly, as of September 30, the balance of cash and cash equivalents and term deposits on our balance sheet.
Speaker 3: Lastly, as of September 30th, the balance of cash and cash equivalents and term deposits on our balance sheet was INR 7.1 billion, which is roughly 86.4 million USD. This reflects the proceeds from our recently computed IQ, while our gross debt was INR 1.74 billion.
INR $7 1 billion, which was roughly $86 4 million USD, which reflects the proceeds from our.
Recently contributed to.
While our gross debt was INR 174 billion.
Speaker 3: With this, we come to the closure of our prepared remarks. I'd like to hand it back to the moderator for opening the questions now.
But this would come to the closure of our prepared remarks, I'd like to hand, it back to the moderator for opening the question for us.
Thank you.
Speaker 2: Thank you. As a reminder if you'd like to ask a question please press star followed by one on your telephone keypad now to join the question queue. Our first question today comes from Scott Butts from HC Wainwright. Scott your line is open please go ahead.
As a reminder, if you'd like to ask a question. Please press star followed by one I'm just trying to think he put now destroying the question Keith.
First question today comes from Scott.
H C. Wainwright. Your line is open. Please go ahead.
Hi, Good morning, everyone. Thank you for taking my questions.
Speaker 5: Hi, good morning, everyone. Thank you for taking my questions. Drew, can you give us a little bit more color on what's driving the softening in air ticket prices? And, you know, it sounds like that's kind of dragged a little bit here through the fiscal third quarter as well, correct?
Drew can you give us a little bit more color on what's driving driving the softening in air ticket prices.
And it sounds like that's kind of dragged a little bit here through our.
The fiscal third quarter as well correct.
Speaker 4: Hi Scott, good morning. Yeah, you're right that you know, air ticket prices have softened significantly, especially on the international travel front.
Hi, Scott Good morning, Yeah, you're right that generally air ticket prices have softened significantly, especially on the international travel trends are.
Speaker 4: Here we've seen a lot more deployment of capacity. So last year, as we were coming out of COVID, capacity was really limited in terms of airlines deploying aircrafts on the India route.
We've seen a lot more deployment of capacity. So last year as we were coming out of Covid capacity was really limited in terms of the airlines deploying aircrafts on the <unk> <unk>.
Speaker 3: We've seen a significant expansion of that playing out during the last 12 months.
We've seen a significant expansion of that playing out during the last 12 months and that incremental supply is what's resulting in prices rationalizing and coming closer and closer towards where they were in the pre COVID-19 environment on the domestic front as well.
Speaker 4: And that incremental supply is what's resulting in prices rationalizing and coming closer and closer towards where they were in the pre-COVID environment.
Speaker 4: On the domestic front as well, we've seen supply expansion play out. In fact, you know, even going forward, it's expected that over the next six months, Air India will add more than an aircraft a week.
Seen supply expansion play out in fact, even going forward. It is expected that over the next six months Air India will add more than an aircraft a week I think so.
Speaker 4: So we will continue to see more capacity expansion happening. The good thing about that is that while on the one hand it does depress air ticket prices, it does stimulate demand.
We will continue to see more capacity expansion happening. The good thing about that is that while on the one hand, it does depress air ticket prices.
Does stimulate demand. So if you look at from an overall perspective, the industry grew almost 23% year over year. We grew 31%. So from a volume growth perspective. This is actually a great time.
Speaker 4: So if you look at it from an overall perspective, the industry grew almost 23% year over year. We grew 31%. So from a volume growth perspective, this is actually a great sign that prices are rationalizing. Going forward, we expect prices to remain range bound because the vast majority of the incremental capacity that had to be deployed on the international route.
Cases are rationalizing going forward.
Prices to remain range bound because the vast majority of the incremental capacity that had to be deployed on the international routes is already in place and from here on it's going to be a more gradual expansion of capacity as opposed to the large scale expansion in supply that we saw over the last 12 months.
Speaker 4: is already in place and from here on it's going to be a more gradual expansion of capacity as opposed to the large-scale expansion in supply that we saw over the last 12 months.
Speaker 5: Great, that's really helpful, Culler. And then I want to dig in a little bit on the M&A strategy. Are you looking to do one large deal, multiple small deals? Could you give us just a little bit more color on that? And what does the timing look like there?
Great. That's really helpful color and then I want to dig in a little bit on the M&A strategy are you looking to do one tier one large deal multiple small deals I mean could you give us just a little bit more color on that and what does the timing look like there.
Speaker 4: Sure. So as we've called it out in our own IPO prospectus as well in India, our endeavor would be to look at opportunities which allow us to expand the products and services that we can cross sell into our corporate customer base.
Sure.
You called it out in our own IPO prospectus as well in India.
Our endeavor would be to look at opportunities, which allow us to expand the products and services that we can cross sell into our corporate customer base.
Speaker 4: These could be, you know, anything ranging from, you know, multiple other products and services related to travel or other ancillary travel and, you know, technology-related offerings that organizations use. So from that perspective, it could be either, right? So it could be, you know, a one which has a meaningful size and scale, or it could be technologies and products that could dovetail into our offering.
This could be anything ranging from multiple other products and services related to travel all other ancillary travel and zero technology related offerings that organizations use so from that perspective, it could it could be either so it could be a.
Oh, one which has a meaningful size and scale or it could be technologies and products that could dovetail into our offering.
Speaker 4: The latter would be, you know, the more likely route that we will adopt, right? But I can't rule out the former either. The strategy would be to look at, you know, things which can fit into our platform and then help scale up the revenue from those incremental services within our existing corporate customer base.
The latter would be you know the more likelihood that we will adopt right, but I cant rule out the form of either the strategy would be to look at you know things, which can fit into a light bulb and then help scale up the revenue.
From those incremental services within our existing customer base.
Great I appreciate that and then last one for me just on Opex I am curious given the growth projections over the next.
Speaker 5: Great, I appreciate that. And then last one for me, just on OPEX, I'm curious, given the growth projections over the next 12 months or so, how do you feel, or are you comfortable with the current cost basis, or do you have to do a fair amount of hiring or additional investment in OPEX to support that growth?
12 months or so how do you feel.
Or are you comfortable with the current cost basis or do you have to do a fair amount of.
Hiring or additional investment in opex to support that growth.
Speaker 4: Let's see, on the OPEC side, we've pretty much got all the main ingredients in place. There might be a little bit of incremental investment that comes in on the technology side, but it's going to be fairly marginal in the overall scheme of things.
See you on the Opex side, we've pretty much got all the the main ingredients in place there might be a little bit of incremental investment that comes in on the technology side, but it's going to be fairly.
Marginal in the overall scheme of things. So we don't expect our cost structure to change significantly.
Speaker 6: So we don't expect our cost structure to change significantly, especially, you know, if you were to look at this as a percentage of total transaction value. We don't see that changing much. Great.
Especially you know if you were to look at this as a percentage of total transaction value, we don't see that changing much.
Great I appreciate the time guys. Thank you again.
Sure. Thank you thanks Scott.
Speaker 2: Thank you. As a reminder, if you'd like to ask a question, please press star followed by one on your telephone keypad now. We'll pause for just a moment to compile any remaining questions.
As a reminder, if you benchmark. Your question. Please press star followed by one on you kind of think he passed now.
Of course, just a moment to compile any remaining questions.
Speaker 2: Okay currently no further questions on the line so I'd like to hand back to the management team for any closing remarks.
Okay. Currently no further questions on the line, so I'd like to hand back to the management team for any closing remarks.
Speaker 6: Thank you, Ellen. Thank you, everyone, for joining the call today. As always, you're available for follow-ups. Please feel free to reach out to us and wish you all a happy Thanksgiving.
Thank you Ellen Thank you to everyone for joining the call today.
As always we are available for follow ups, please feel free to reach out to us. This.
Wish you all a happy Thanksgiving.
Speaker 2: That concludes today's conference call everybody. Thank you very much for joining. You may now disconnect your lines. Have a great rest of your day.
That concludes today's conference call everybody. Thanks, very much for joining you may now disconnect. Your lines have a great rest of your day.