Q4 2023 Travelzoo Earnings Call
To open for questions following the presentation.
Today's call is being recorded.
It would be.
The company would like to remind you that all statements made during this conference call and presented in the slides that are not statements of historical facts.
Sure.
[music].
Constitute forward looking statements and are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1095.
Yes.
Okay.
Okay.
Sure.
Okay.
Actual results could vary materially from those contained in the forward looking statements.
Thanks.
Instead on the floor.
[music] spring.
Factors that could cause actual results to differ materially from those in the forward looking statements are described in the company's forms 10-K, and 10-Q and other SEC filings.
Okay.
[music], what's your job.
Yes.
Yes.
Unless required by law the company undertakes no obligation to update publicly any forward looking statements, whether as a sort of new information future events or otherwise.
[music] wages.
Please refer to the company's website for important information, including the company's earnings press release issued earlier today.
Thanks.
Yeah.
[music].
An archived recording of this conference call will be made available on the company's Investor Relations website at <unk> Dot com forward Slash IR now it is my pleasure to turn the floor over to <unk> Global CEO.
Okay.
Sometimes.
Yes.
One day.
Okay.
It would be.
<unk>, It's chair General counsel head of global functions CEO of Jack's Flight club, Kristina Choker and his finance director E June T V.
Sure.
Thank you.
Thanks.
Sure.
Thank you.
<unk> will start off with an overview.
Yes.
Sure.
Sure.
Thank you operator and welcome to those of you joining us today. Please refer to the management presentation to follow along with our Paypal remarks.
Yes.
[noise] each meeting on several others.
Hey, Ben contention in PDF format is available on our Investor Relations website at <unk> Dot Com Slash IR.
Let's begin with slide number four.
Yeah.
<unk> revenue operating profit and member count all increased year over year. Our consolidated Q4 revenue was $21 1 million up 14% from $18 6 million in the prior year period.
Great.
Todd.
Yes.
Sure.
Sure.
Yeah.
[music].
In constant currency revenue was $28 million, an increase of 12% year over year operating income, which we as management called operating profit increased 25% year over year.
Q4, operating profit was $4 5 million or 21% of revenue up from $3 6 million in the prior year.
Of December 31, 2023, we had $31 1 million and duplicate it members.
<unk> to $30 4 million as of December 31, 2022.
Slide five shows the strong revenue growth continued in our Europe segment and at Jack's Flight club.
On slide six we go into more detail about our revenues and operating profit of our two largest business segments.
Hello, everyone welcome to the trouble to fourth quarter 2020 pre feed natural resources conference call. All participants have been placed in a listen only mode and the floor will be opened for questions. Following the presentation.
North America and Europe.
North America Q4 segment revenue increased 5% year over year to $13 8 million from the prior year period operating profit in North America was 4.0 million Q4, compared to an operating profit of $4 2 million a year ago.
Today's call is being recorded.
The company would like to remind you that all statements made during this conference call and presented in the slides that are not statements of historical facts.
Constitute forward looking statements and are made pursuant to the safe Harbor provisions of the private.
Europe Q4 segment revenue increased to 34% year over year to $6 3 million from four 7 million in the prior year period.
Securities Litigation Reform Act of 1995.
Actual results could vary materially from those contained in the forward looking statements.
Europe had an operating profit of 832000 in Q4 compared to an operating profit of 42000 in the prior year period.
Factors that could cause actual results to differ materially from those in the forward looking statements are described in the company's forms 10-K, and 10-Q and other SEC filings.
On slide seven you can see that our GAAP operating margin was 21% in Q4 up from 19% year over year.
Unless required by law the company undertakes no obligation to update publicly any forward looking statements, but are a source of new information future events or otherwise.
Slide eight shows that in North America, the GAAP operating margins remained high at 29%.
Please refer to the company's website for important information, including the company's earnings press release issued earlier today.
On slide nine we provide information on non-GAAP operating profit as we believe a better explains how trebled Zeus management evaluate financial performance.
Archive recording of this conference call will be made available on the company's Investor Relations website at <unk> Dot com forward Slash IR now it is my pleasure to turn the floor over to problems do as global CEO.
Q4, 2023, non-GAAP operating profit was $5 2 million.
25% of revenue compared to non-GAAP operating profit of $4 8 million in the prior year period.
Oh, good Bartle is chair General counsel head of global functions CEO of Jack's Flight club Christina Cha.
Slide 10 provides more information about the items that are excluded in the calculation of non-GAAP operating profit.
Please turn to slide 11.
We maintained a solid cash position, even after repurchasing 600000 travel to shares during the quarter.
Of December 31, 2023, consolidated cash cash equivalents and restricted cash was $16 4 million a decrease of three planes zero million from December 31, 2022.
Comparably merchant payables, which are future payments that we have to make to partners when vouchers redeemed decreased by $10 7 million over the same period.
Slide 12, and 13 detail our revenues by business segment, the North America business segment saw a year over year revenue increase of 5% to $13 8 million.
This was driven by revenue from trouble.
<unk> from local consisting of local entertainment experiences are still you expect to recover from the pandemic.
Turn to slide 13, the Europe business segment saw a year over year revenue increase of 34% to $6 3 million.
This was driven by particular strength in trouble.
Slide 14 shows how revenues compared to operating expenses.
Most of the company's operating expenses, except for marketing are relatively fixed in the short to midterm. We believe we can keep fixed cost contained in the foreseeable future while revenues I expect it to grow.
Higher revenues were just increase operating margin.
For Q1 2024, we expect continued growth in revenue, albeit at a reduced pace from 2023.
We expect a high cash flow from operating activities on a high profitability.
We plan to continue our outstanding share repurchase program.
In December 2023, we announced the introduction of a membership fee for trouble Xu beginning January one 2024.
<unk> members as of 20 December 31 2023.
From the C. Three in 2024, therefore, we do not anticipate generating membership fee revenue from existing members before 2025.
Now I turn the discussion over to a holder.
Thank you Joshua.
Q4 concluded a strong year for travelers.
With each quarter achieving year over year revenue growth.
Profitability in <unk>.
Positive cash flow from operations.
We will continue to leverage travels with global reach or trusted brand and strong relationships with top travel suppliers to negotiate more exclusive offers for our members.
It is in times of large increases in travel prices.
Travelers, who is most valuable for consumers.
Revenues were members enjoy high quality travel experiences that represent outstanding value.
With more than 30 million members.
8 million mobile App users and 5 million social media followers travelers, who is loved by traveling with you swore affluence.
Active and.
And opened two new experiences.
Slide 15 provides more information about travelers, who remembers 91% and see they are open to new destinations and tree of life years.
Or indeed, the club of travel enthusiasts.
It.
Slide 12, and 13 detail of our revenue by business segment.
Slide 17 provides an overview of what management and our global teams are focused on.
The North America business segment saw a year over year revenue increase of 5% to $13 8 million. This was driven by revenue from travel.
We want to.
Grow the number of travelers who members.
Leverage our strong existing relationships with top travel suppliers and add new relationships to negotiate more exclusive offers.
Revenues from local consisting of local entertainment experiences.
Do we expect to recover from the pandemic.
Turn to slide 13, the Europe business segment saw a year over year revenue increase of 34% to $6 3 million.
Utilize higher operating margins to increase EPS.
Grow checks flight drops revenue.
And develop travelers, who mehta with discipline.
This was driven by particular strength in trouble.
Slide 14 show, how revenues compared to operating expenses.
At this point I'd like to turn it over to Christina for a quick update on checks flight club and travelers, whom at all.
Most of the company's operating expenses, except for marketing are relatively fixed in the short to midterm. We believe we can keep fixed cost contained in the foreseeable future while revenues are expected to grow.
Thank you Jorge.
That's why I called it had a strong year in 2023 closing Q4 with a 29% increase in revenue year over year, and a 21% increase in premium members.
Your revenues were just increase operating margin.
24, we are excited to keep up this momentum with continued investment in member growth, including in new markets like Canada implementation of an inflationary price increase for new members and further refinement of our value proposition all of which we believe will help us define better marking marketing efficiencies and grow profitably.
For Q1 2024, we expect to continue the growth in revenue, albeit at a reduced pace from 2023.
What do you expect the higher cash flow from operating activities on a high profitability.
We plan to continue our outstanding share repurchase program.
<unk>.
Now I'd like to speak about travel do matter.
In December 2023, we announced the introduction of a membership fee for troubled Xu beginning January one 2024 existing.
Exciting news from traveled the matter that we are close to producing the first not every travel experience it will be browser enabled.
Existing members as of 20 December 31, 2023 are exempt from the C. Three in 2024, therefore, we do not anticipate generating membership fee revenue from existing members before 2025.
Expect to bring that experience and more new immersive travel experience at the founding members I've traveled the letter on the new traveled in that App.
As stated in previous earnings calls, we are conscious of developing challenging that in a financially disciplined way we will provide additional updates in due time.
Now I turn the discussion over to a holder.
Thank you Jim.
Through four concluded a strong year for travelers.
Now I'm handing over to the operator for questions your Hoeger Elysian and myself.
With each quarter achieving year over year revenue growth.
Visibility.
Thank you the Florida is now open for questions. If you do have a question. Please press the star followed by one on your Touchtone phone.
And positive cash flow from operations.
We will continue to leverage travels with global reach or trusted brands and strong relationships with top travel suppliers to negotiate more exclusive offers for our members.
At this time once again, if you do have a question ladies and gentlemen that is E star followed by one on your thoughts on phones. Please hold while we poll for questions. Thank you.
It is in times of large increases in travel prices the travelers who is most valuable for consumers.
Travis members enjoy high quality travel experiences that represent outstanding value.
Your first question comes from the line of Michael Kaplinsky from Noble capital. Please go ahead.
With more than 30 million.
Thank you. Thank you for taking the questions and congratulations on a good fourth quarter in a strong 2023.
Members 8 million mobile App users and 5 million social media followers travelers, who is loved by traveling so we see us where affluence.
Or just a couple of questions here you indicated that there seems to be in 2023. There was this pent up demand for people willing to travel following the pandemic I think that's what you said.
Active.
And open to new experiences.
Slide 15 provides more information about travelers, who members, 91% and see their open to new destinations and travel ideas.
What are the dynamics that youre seeing especially in North America, because obviously, we didn't we saw slower growth there versus Europe, which is contributing quite strong can you just kind of give us the dynamics of what's happening between those two continents.
Indeed, the club of travel enthusiasts.
Slide 17 provides an overview of what management and our global teams are focused on.
We want to.
Grow the number of travelers who members.
Leverage our strong existing relationships with top travel suppliers and add new relationships to negotiate more exclusive offers.
Hello.
Utilize higher operating margins to increase EPS.
Bruce or myself. Please yourself on mute. Please go ahead now.
Were they able to hear my questions.
Grow checks flight clubs revenue.
And develop the travelers who mehta with discipline.
So I was just asking about the pent up demand for people traveling.
At this point I'd like to turn it over to Christina for a quick update on checks flight club and travelers who made up.
What what I know that in 2023, we had.
The kind of people pent up demand for following the pandemic what are we seeing now versus North America and Europe, what are the dynamics at play here.
Thank you Jorge.
That's my club had a strong year in 2023 closing Q4, with a 29% increase in revenue year over year, and 21% increase in premium luxury.
'twenty 'twenty four we are excited to keep up this momentum with continued investment in member growth, including in new markets like Canada implementation of an inflationary price increase for new members and further refinement of our value proposition all of which we believe will help us define better marking marketing efficiencies and grow profitably.
Your line working.
Sorry, Michael Hello, Michael Hello, Hello, Hello.
Sure.
Hello.
Now I'd like to speak about travel do matter.
Okay.
It looks like there wasn't a technical difficulty, but I could hear you. Okay speaking about the industry. It looks like 2024 will be another strong year for travel not quite as strong as 2022 and 23 as you said the pent up demand is slowly ebbing.
Exciting news from travel do matter that we are close to producing the first not every travel experience it will be browser enabled.
We expect to bring that experience and more new immersive travel experience with the founding members of travelers even better on the new traveled in that App.
As stated in previous earnings calls, we are conscious of developing challenging that in a financially disciplined way we will provide additional updates in due time.
We're hearing from our partners that in North America.
Bookings from the partners are good.
Europe, maybe a little bit less and that might have to do with the.
Wars that are going on in Ukraine, and in Gaza, Israel. So overall, probably still a positive year overall, we're seeing stronger growth in Europe as you saw growth in North America slowing down a bit but in general.
Now I'm handing over to the operator for questions your hunger lithium and myself.
Thank you the Florida is now open for questions. If you do have a question. Please press the star followed by one on your Touchtone phones. At this time once again, if you do have a question ladies and gentlemen that is E star followed by one on your Touchtone phone.
Should be a similar year than before.
Do you anticipate that North America is going to pick up the pace, a little bit or do you think that that.
Youre anticipating that North America would have lagged Europe again in 2024.
Please hold while we poll for questions. Thank you.
Europe is finally catching up as we expected. So we're very happy to see that North America was a little bit slower in Q4.
Your first question comes from the line of Michael Kaplinsky from Noble capital. Please go ahead.
And.
Thank you. Thank you for taking the questions and congratulations on a good fourth quarter in a strong 2023.
The reason for that was that a couple of advertisers who are just becoming cautious a bit more cautious because of the wall Street I just spoke about.
I just have a couple of questions here you indicated that there seems to be in 2023. There was this pent up demand for people willing to travel following the pandemic I think that's what you said.
I think this is just a temporary situation. So we will see how the rest of 2024 will develop you're optimistic.
Gotcha and then it seems in 2023 that you throttled back a little bit on your sales and marketing spend I think it was like 45% of revenues. It was 47% in 2022 can you talk a little bit about your outlook for sales and marketing spend in 2024.
What are the dynamics that youre seeing especially in North America, because obviously, we didn't we saw slower growth there versus Europe, which is continuing quite strong can you just kind of give us the dynamics of what's happening between those two continents.
In Q4, our marketing spend tends to be a bit lower because you don't see it as a good quarter or environment for advertising travel all force for 2024, I cannot really comment much because we now move to a paid membership model. So.
Hello.
It's the reason why I'm reading out the EMA right now to predict what we will see in 2024.
Bruce or myself. Please yourself on mute. Please go ahead now.
I Gotcha in general do you anticipate that that will adversely affect margins as you kind of move towards a more of a paid subscription model.
Were they able to hear my questions.
So I was just asking about the pent up demand for people traveling.
What are your thoughts in general.
What what I know that in 2023, we had.
I really cannot comment right now maybe next quarter, we will know more but right now I can't I just can't comment on that.
The kind of people pent up demand for borrowing the pandemic what are we seeing now versus North America and Europe, what are the dynamics at play here.
Fair enough.
And I believe I know the answer to this question, but I'm going to ask it anyway.
<unk> liabilities came down dramatically about $12 million was.
Relatively the cash was relatively stable can you just kind of give us what are the dynamics going on right now to account for that.
Walgreens your line working.
No that you indicated in the past that there were some of these.
Our liabilities are probably won't be used but I was just wondering if you can just kind of give us an idea of what the dynamics are there.
Sorry, Michael Hello, Michael Hello, Hello, Hello, Michael Hello, everybody like Okay. So it looks like there was a technical difficulty on equity are you speaking about the industry.
Yes. Thank you, we're very happy with the improvements off the balance sheet.
We expect that merchant payables will normalize around to levels, where we are right now and brothers even before the pandemic.
It looks like 2024 will be another strong year for travel.
Okay.
That's all I have for now thank you.
<unk> quite as strong as 2022 and 23 as you said the.
Sure you're welcome Michael.
Pent up demand is slowly ebbing, we are hearing from our partners that in North America.
Your next question comes from the line of Jim Goss from Barrington Research. Please go ahead.
Bookings from the partners are good Europe, maybe a little bit less and that might have to do with the <unk>.
Good morning.
I was wondering what sort of.
Wars that are going on in Ukraine, and in Gaza, Israel. So overall, probably still a positive year overall, we're seeing stronger growth in Europe as you saw growth in North America slowing down a bit but in general.
The experience we've had so far are essentially has gone to a paid model have you been attracting sign ups and do you have any expectations for the take rate for the existing subs.
Coming paid subscribers.
It should be a similar year than before.
And how you might treat the existing subs to choose not to.
Do you anticipate that North America is going to pick up the pace, a little bit or do you think that that.
You've talked in the past about maybe giving them, an occasional emails or something of that nature.
That you are anticipating that North America would have lagged Europe again in 2024.
Wonder if you might have left out that strategy at all.
Europe is finally catching up as we expected. So we're very happy to see that North America was a little bit slower in Q4.
Hi, Jamie Yes, we do see of course sign ups of paid members our members who are paying the membership fee.
And.
The reason for that was that a couple of advertisers were just becoming cautious a bit more cautious because of the awards that I just spoke about.
And.
The numbers a bit higher than what we anticipated so we're happy about that.
But in general it's just too early for me to provide a lot of comment I hope I can provide more next quarter, but right now I'm, just not being able to provide a lot of comments on on this.
I think this is just a temporary situation. So we will see how the rest of 2024 will develop you're optimistic.
Gotcha and then it seems in 2023 that you throttled back a little bit on your sales and marketing spend I think it was like 45% of revenues. It was 47% in 2022 can you talk a little bit about your outlook for sales and marketing spend in 2024.
Okay.
Yes.
I noticed the first flight club had a little bit of a step up to I Wonder if you might talk about your promotional plans for.
Continuing on their process and gaining some greater share greater our subscriber base for.
In Q4, our marketing spend tends to be a bit lower because you don't see it as a good quarter or environment for advertising travel all force for 2024, I cannot really comment much because we now move to a paid membership model. So.
J S.
Yes, we're happy how this develops Christina can answer your question.
Sure.
In 2024, and we're looking to add a couple of additional promotional activities and sales. We typically have one in January and one in July and one in November and we are thinking to add one or two addition at all to see how that does over the course of the year.
It's reading out I'm reading of BMO right now to predict what we will see in 2024.
I Gotcha in general views and anticipate that that will adversely affect margins as you kind of move towards a more of a paid subscription model.
It's obviously spaced them out so we don't cannibalize ourselves with each of the sales were also.
What are your thoughts in general.
I really cannot comment right now maybe next quarter, we will know more but right now I can't I.
And looking to expand into to enter new markets, our first will be Canada.
Just can't comment on that.
Fair enough.
And we're looking forward to seeing the metrics and numbers for that new market. We anticipate that we will find tenants better marketing efficiencies, there, which will allow us to.
And I believe that I know the answer to this question, but I'm going to ask it anyway.
The merchant liabilities came down dramatically about $12 million was.
And grow wallet and grow profitably.
Relatively the cash was relatively stable can you just kind of give us what are the dynamics going on right now to account for that.
And maybe my final question.
To the extent that you now have a subscription.
I know that you've indicated in the past that there were some of these.
Plan for both the core service and just like club is there any thinking about.
Merchant liabilities that probably won't be used but I was just wondering if you can just kind of give us an idea of what the dynamics are there.
Potentially.
Yes. Thank you, we're very happy with the improvement of the balance sheet.
Creating a.
Do okay. It's.
A combination of membership where.
We expect that merchant payables will normalize around to levels, where they are right now and glad to have been before the pandemic.
Someone might be able to get.
Yes.
I'd say a discount on the sum of both of them of them gaining gain access to both men, we get pickups subscriber base that way.
Okay.
Thats all I have for now thank you.
Sure you're welcome Michael.
Yes, it's a great idea of Jim we don't towards yet, but we are looking into it for the future very good IPO of course.
Your next question comes from the line of Jim Goss from Barrington Research. Please go ahead.
Okay I'll leave it go.
Good morning.
At that for now thanks. Thanks.
Was wondering what sort of.
The experience you've had so far are essentially has gone to a paid model.
Your next question comes from the line of Steve Silver from Argus Research. Please go ahead.
You then are attracting sign ups.
And do you have any expectations for the take rate for the existing subs, becoming.
Thank you operator and.
Congratulations to everybody on the strong results in Europe, and the return to profitability there it's great to see.
Coming paid subscribers.
And how you might see the existing subs to choose not to.
Because my question is also about the.
You've talked in the past about maybe giving them occasional emails or something of that nature.
Yes.
Now I'll go you had mentioned a little while ago that.
Wonder if you might have fleshed out that strategy at all.
There might be some near term softness, particularly in North America as a result of the conflicts in the wars going on both in Ukraine, and now in Israel and in the Middle East just trying to get a sense as to the timing of your announcement of the membership model I know you've spoken about it over the past several years.
Hi, Jamie Yes, we do see of course sign ups of paid members members who are paying the membership fee.
And.
The numbers a bit higher than what we anticipated so we're happy about that.
But in general it's just too early for me to provide a lot of comment I hope I can provide more next quarter, but right now I'm just not able to provide a lot of comments on on this.
Since the jacks.
If I called acquisition was first announced that the company would be looking to move towards a subscriber model over time, but.
But given the fact that there is just a lot of turmoil in certain regions around the world and I was just wondering if there's any insight you could share in terms of the thought process is to move.
Okay.
Yeah.
I know noticed.
That's like club head at a little bit of a step up to I Wonder if you might talk about your promotional plans for.
Moving to the membership fee now as compared to possibly.
Continuing that process and gaining some greater share greater subscriber base for.
Seeing how the global situation unfolds over time.
Yes, Steve one is not really related to the auto it all in.
J F.
Yes, we're happy how this develops Christina can answer your question.
In fact, as Ive said, we saw a couple of <unk> tires is becoming a bit more cautious.
Sure.
In 2024, and we're looking to add a couple of additional promotional activities and sales. We typically have one in January and one in July and one in November and we are thinking to add one or two addition at all to see how that does over the course of the year, we try to obviously spaced them out so we don't cannibalize.
Because of the wars, and Ukraine and Israel.
However, we still see strong demand and interest from our members in these.
In January and traveling so it didn't really affect our decision and we're very happy that we made the decision to move to this new.
Ms ourselves with each of the sale.
Paid model so far.
We're also as I mentioned looking to expand into new markets, our first will be to Canada.
Yes.
We are really fine with the timing so.
Didn't have any.
And we're looking forward to being the metrics and numbers for that new market. We anticipate that we'll find kind of better marketing efficiencies, there, which will allow us to.
I didn't really see a in connection of the tool.
Okay. That's helpful and just one more I know you had mentioned the share repurchases and that you expect that to continue.
Grow wallet and grow profitably.
Moving forward and just the the concept that you've spoken about over time in terms of meta being growing very diligently and with discipline.
And maybe my final question to.
To the extent that you now have a subscription.
I'm, just trying to get a sense as meta does ramp up.
Plans for both the core service and Jack's flight club is there any.
Do you expect to be able to grow <unk> to where you want it to go while maintaining modest investment levels or would you expect that at the appropriate time there would be.
About potentially.
Creating a.
Do you.
Or like a combination membership where.
Someone might be able to get.
More resources put into meta.
Sure.
To eventually grow that unit to where you want it to be.
I'd say a discount on the sum of both of them on them again gain access to about when you get pick up subscriber base that way.
It's the first we have always said, we want to manage it in jewelry financially in a prudent manner and we will continue to do so we are generating good cash flow. So that's why we are planning to complete our share repurchase share repurchase program.
Yes, it's a great idea of Jim we don't towards yet, but we are looking into it for the future very good IPO of course.
Okay I'll leave it go.
Okay. Thanks for the color and congratulations.
At that for now thanks. Thanks.
Thanks, Steve.
Your next question comes from the line of Steve Silver from Argus Research. Please go ahead.
Your last question comes from the line of Ed Woo from <unk>. Please go ahead.
And congratulations on the quarter two areas in the travel industry that is growing really rapidly as alternative accommodations as well as booked.
Alright, Thank you operator and.
Relations to everybody on the strong results in Europe, and the return to profitability there it's great to see.
Bookings for activities can you talk about how you guys are trying to.
Good My question is also about the business.
This is Pat.
Be active in that space.
Back now a hugger you'd mentioned a little while ago that.
It was not an area that we actually did much in the past, but now that we are a top end we have paid membership module speaking with some companies about partnerships in the future. So.
There might be some near term softness, particularly in North America as a result of the conflict and the wars going on both in Ukraine, and now in Israel and in the Middle East just trying to get a sense as to the timing of your announcement of the membership model I know you've spoken about it over the past several years since.
We are better positioned now to enter.
Into this conversation so thanks for asking.
Great.
That's all the questions I have I wish you guys. Good luck. Thank you.
The jacks.
Club acquisition was first announced that the company would be looking to move towards a subscriber model over time.
Thank you.
Okay, I'll now turn the call over back to Mr. Holger Bartel.
But given the fact that there is just a lot of turmoil in certain regions around the world and I was just wondering if there's any insight you could share in terms of the thought process is to move.
Dear investors. Thank you so much for your time and support today, we look forward to speaking with you again next quarter.
Moving to the membership fee now as compared to possibly.
Great day.
Thank you ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines at this time have a nice day.
Seeing how the global situation unfolds over time.
<unk> one is not really related to two deoderant all in.
In fact, as I said, we saw a couple of <unk> tires is becoming a bit more cautious.
Because of the wars, and Ukraine and Israel.
However, we still see strong demand and interest from our members in these.
In January and traveling so it didn't really affect our decision and we're very happy that we made the decision to move to this new.
Paid model so far.
Yes, we are.
We are really fine with the timing so I didn't have any.
I didn't really see a in connection of the tool.
Okay. That's helpful and just one more I know you had mentioned the share repurchases and that you expect that to continue.
Moving forward and just the concept that you've spoken about over time in terms of meta being growing very diligently and with discipline.
I'm, just trying to get a sense as meta does ramp up.
Do you expect to be able to grow <unk> to where you wanted to go while maintaining modest investment levels or would you expect that at the appropriate time there would be.
More resources put into meta.
To eventually grow that unit to where you want it to be.
It's the first we have always said, we wanted to manage it in jewelry financially in a prudent manner and we will continue to do so we are generating good cash flow. So that's why we are planning to complete our share repurchase share repurchase program.
Okay. Thanks for the color and congratulations.
Thanks, Steve.
Your last question comes from the line of Ed Woo from <unk>. Please go ahead.
And congratulations on the quarter two areas in the travel industry, that's growing really rapidly as alternative accommodations as well as books.
Bookings for activities can you talk about how you guys are trying to.
And be active in that space.
It was not an area that we actually did much in the past, but now that we are up and we have paid membership module speaking with some companies about partnerships in the future. So.
We are better positioned now to enter.
Into this conversation so thanks for asking.
Great.
That's all the questions I have I wish you guys. Good luck. Thank you.
Thank you.
Okay, I'll now turn the call over back to Mr. Holger Bartel.
The investors. Thank you so much for your time and support today, we look forward to speaking with you again next quarter.
Great day.
Thank you ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines at this time have a nice day.
[music].