OneSpaWorld(US:OSW)2026-01-12 20:02Financial Data and Key Metrics Changes - The company pre-announced preliminary fourth quarter results with a slight downtick in revenue guidance, attributed to weaker performance in November, but December rebounded strongly, leading to a positive outlook for the fourth quarter and 2026 [3][4] - Guest spend reached the highest level ever, with metrics indicating strong performance during the holiday season, particularly Christmas and New Year cruises [12] Business Line Data and Key Metrics Changes - The company is seeing significant growth in the acupuncture and med spa segments, which currently account for about 8% of total revenue and are growing at 10% annually [9] - Changes in revenue recognition in Europe will not impact EBITDA, as the company will now recognize management fees instead of direct revenue from certain cruise lines [6][7] Market Data and Key Metrics Changes - The company noted that pre-booking rates are around 22%, with a goal to increase this to 30%, as pre-booked guests tend to spend 35% more than those who book on board [18][22] - The company is piloting revenue enhancement features on 80 vessels, with plans to expand to 185 vessels by the end of the second quarter [24] Company Strategy and Development Direction - The company is focusing on enhancing its wellness offerings, particularly in the med spa segment, and is exploring options to integrate longevity services into its offerings [10][33] - The company aims to maintain a collaborative relationship with cruise line partners, focusing on growing the overall business rather than competing for smaller slices of revenue [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in consumer spending trends and the ability to maintain pricing power across different macro environments, despite some concerns about consumer nervousness [14][15] - The company is optimistic about the future, with a focus on improving operational efficiency through AI and machine learning initiatives [25][26] Other Important Information - The company returned $92.9 million to shareholders in 2025 through share repurchases and dividends while also investing in debt reduction [38] - Staff retention has improved significantly, with a retention rate of 76%, which is expected to enhance productivity and reduce training costs [31][32] Q&A Session Summary Question: Can you provide insights on the preliminary fourth quarter results? - Management noted a slight revenue guide downtick due to November's performance but highlighted a strong December, leading to a positive outlook for the fourth quarter and 2026 [3][4] Question: What are the implications of closing the Asia land-based operation? - The exit from the Asia land-based operation will impact revenue but not EBITDA, as it was not profitable [6] Question: How is the company addressing the growth in guest spend? - The company has reworked service offerings to encourage longer and higher-priced treatments, which has successfully driven guest spend [11] Question: What is the company's strategy regarding pre-booking? - The company aims to enhance pre-booking capabilities, as pre-booked guests tend to spend significantly more [22] Question: How does the company view its relationships with cruise line partners today? - The company emphasized a collaborative approach with cruise line partners to grow the overall business, contrasting with past competitive dynamics [41][42]