XpresSpa Group(US:XWEL)2019-03-28 23:07Financial Data and Key Metrics Changes - For the year ended December 31, 2018, total revenue was $50.1 million, an increase of $1.3 million or 2.6% compared to $48.8 million in 2017 [29] - In Q4 2018, revenue was $11.5 million, a decrease of 2.3% or $0.3 million from $11.8 million in the prior year [35] - Adjusted EBITDA was negative $0.5 million in Q4 2018, compared to positive $0.4 million in the same quarter of the previous year [22] Business Line Data and Key Metrics Changes - The company generated 83% of its revenues from services and 17% from retail sales in 2018 [31] - Comparable store sales decreased by 3% on an annual basis [31] Market Data and Key Metrics Changes - XpresSpa commands approximately 50% market share in the U.S. airport spa services sector, significantly higher than its closest competitor [12] Company Strategy and Development Direction - The company aims to enhance the guest experience, develop a people-first culture, activate new partnerships, and bring health and wellness innovations to its spas [14][15] - 2019 is viewed as a transition year focused on getting the core business healthy, with plans to grow sales, improve scheduling, and launch an XpresSpa app [18] Management's Comments on Operating Environment and Future Outlook - The CEO expressed confidence in improving the financial condition and capitalizing on opportunities, despite a disappointing Q4 [5][22] - Management acknowledged significant problems with the retail supply chain and underutilization of the loyalty program, indicating areas for improvement [17] Other Important Information - The company received a strategic investment of $3 million from Calm, which is expected to enhance brand visibility and customer engagement [24] - The company plans to open its first franchise spa in Austin by Q3 2019 [19] Q&A Session Summary Question: When can we expect to hear more specifics on your near-term priorities? - The CEO stated that he is not in a position to provide further details beyond what has been outlined, as he has only been with the company for a short time [46] Question: Can you tell us about the performance in Q1? - The CEO mentioned that top line sales are performing better than in Q4, although they are still in a negative comparable environment [50] Question: Can you mention any specifics around activating new partnerships? - The CEO indicated that while he cannot disclose specific deals, there are win-win opportunities with other companies in the health and wellness space [53]