Serko Limited (SKO) Earnings Call Transcript & Summary

Good afternoon. My name is Claudia Batten. I'm the interim Chair of Serko. We apologize for the technical difficulties. This is our second run-through of my opening address. We are very pleased today to welcome you to Serko's 2020 Annual Meeting, and this is our first virtual online meeting. Thank you for your patience. The impacts of COVID-19 this year have been unprecedented. Global outbreaks continue to occur internationally and have prevented me, based in Los Angeles, and Clyde McConaghy, based in Sydney, from traveling to New Zealand for the meeting. The uncertainty of the impact that COVID-19 was likely to have when scheduling the Annual Meeting, coupled with the inability for some directors to fly to Auckland for the meeting, led us to take the prudent approach of holding the meeting virtually this year. This was fortuitous given the return of Auckland back to Level 3 lockdown. While we acknowledge that this may not be the preferred approach for a few shareholders, we're pleased that a virtual meeting allows attendance and engagement by a much greater proportion of our shareholder base. As a tech company, we're also pleased to be able to use the latest technologies to engage with our shareholders, warts and all. I can see online that we have strong attendance, and I'm pleased to see so many shareholders join us today. You will be able to vote and ask questions online during the meeting. I'll provide you with further instructions as we progress through the meeting. If you encounter any issues, please refer to the online portal guide or you can phone the helpline on 0-800-200-220. We will be using some slides during the meeting. You will be able to see these and follow along. They will also be made available on Serko's investor website. It's my pleasure to introduce my fellow directors who are online today: Nonexecutive Directors, Simon Botherway and Clyde McConaghy; and Executive Directors and Serko's Co-Founders, Darrin Grafton and Bob Shaw. I would also like to welcome the members of Serko's management and staff in attendance; as well as our external auditors, Deloitte; and our lawyers, Flex and Wong. Now for the formalities of the meeting. I confirm that the requirement for a quorum for this meeting of 3 shareholders has been met, and I declare the meeting open. The items of business for this meeting and the resolutions to be considered by shareholders are contained in the Notice of Meeting. I will begin by providing an overview of the impact of the COVID-19 pandemic on the business and our response to this material change in operating environment. I will also provide you with an update on current trading conditions. I will then hand over to Darrin to provide you with an update on Serko's strategy and his review of the FY '20 financial year. After Darrin's address, there will then be an opportunity to answer -- to ask questions. We will then attend to the formal business of the meeting addressing auditor remuneration and my reappointment. Following, voting on all resolutions will be conducted by way of poll. Shareholders will be able to cast their vote using the electronic voting card received when online registration is validated. Please refer to the online portal guide or use the helpline specified. Questions will be taken online through the virtual meeting website. [Operator Instructions] You may be aware that I took over as Interim Chair for Simon Botherway in March 2020. This was to enable Simon to receive treatment for a recently diagnosed non-life-threatening medical condition. Simon remains a Director and has continued to attend all Board and Committee meetings since this time. He is currently in managed isolation following recent surgery overseas, which I'm pleased to say went well. At this time, there is no agreed date for Simon's resumption of the Chair role while he recuperates, but we will keep the market updated on this. Simon, Darrin and I are in regular communication and meet weekly to review the key matters for the business. When we consider our FY '20 results, we see that the first 3 quarters of the financial year ended March 31, 2020, were characterized by monthly revenue growth and the achievement of a number of key milestones. Darrin will provide more information about these key milestones in his address shortly. Serko's performance, however, was materially impacted in the fourth quarter of the financial year as COVID-19 became widespread, significantly affecting Serko's travel booking volumes. Clear evidence of a pattern of declining bookings became apparent in mid-February 2020, and this was followed by a sharp decline in March 2020 as lockdown measures were implemented. At its lowest point, daily booking volumes were down in excess of 90% compared to similar days in 2019. The pandemic led us to first downgrade our guidance expectations in February 2020 and then to completely withdraw our guidance expectations in March 2020. While the pandemic struck late in the financial year, it had a disproportionately negative effect on our results. It was extremely disappointing to the Board and the Serko team to finish a great year with results substantially below our original guidance expectations. COVID-19 impacted the business and the FY '20 results in 3 main ways. The first impact was due to seasonality. December and January are typically our lowest months for travel bookings, making February and March critically important for revenue generation. COVID-19 hit at a critical time in our financial year. Secondly, with the massive impact of COVID-19 on the travel industry, we agreed to a number of changes to contracts to support our reseller partners. This included changes to contracted minimum revenues, which had the effect of reducing the revenue we expected to record in the current year, resulting in adverse accounting adjustments. Our FY '20 results were also restricted by materially slowed reseller onboarding in North America in February and March as COVID-19 throttled back all activity in that market. Our immediate response to the COVID-19 pandemic was to introduce measures to look after our people. We had a pandemic plan in place as a result of learnings from managing the SARS epidemic, which informed our response. We also gathered the Board for weekly meetings to assess and monitor the situation. I was proud to see how quickly and effectively our team transitioned to remote working, using technology to retain productivity and interconnectedness. Serko is continuing to leverage the learnings from this period to aid productivity, provide additional flexibility for staff and allow us to utilize global talent. The pandemic has had a substantial impact on the operations and economics of the business. Accordingly, as previously announced to the market, we have reduced cash burn and reprioritized strategic initiatives to position the business for the materially changed operating environment. Wherever possible, we've used this shock to the business and our industry to gain positive connection to our customers, support the learning and growth of our global team and to focus the business on profitable long-term opportunities. We consider our market opportunity to be undiminished, despite the pandemic, and remain confident in the recovery of corporate travel. However, we acknowledge it is likely to take longer than we had hoped to return to pre-COVID levels of travel. In responding to these challenging circumstances, we have reduced the overall size of the Serko team and reprioritized project spend. Our priority has been to retain resource and capacity on key growth initiatives to ensure that we are well positioned for the future and can execute on some of the key opportunities we are seeing coming out of the changes to the travel industry. The main uncertainty is, of course, timing. While we offer no crystal balls, we do have a clear strategy to drive long-term growth. Darrin will outline the main pillars of our strategy and the market opportunities we are seeing in more detail shortly. Serko continues to be well-funded following the completion of an oversubscribed capital raise of $45 million in November 2019, supported by Booking Holdings and our wider shareholder base. As at 31 July 2020, we had a cash balance of $36 million. We continue our rigorous focus on cash flow. Year-to-date, our burn has averaged $1.5 million per month, outperforming our guidance of monthly average cash burn of $2 million, as we started the year at $42 million. We've been assisted by the government subsidy programs and our internal cost rationalizations. This means we've been preserving cash, but it also means we're not pursuing our expansion plans as quickly as we would like. The travel industry is experiencing very challenging economic environment. As a consequence, some industry participants have retrenched or are seeking to be acquired. Such fundamental changes to the value channel are creating opportunities for Serko to roll out our platform internationally sooner than we had previously expected. The Board has agreed to a measured increase in cash burn for the remainder of the financial year to resource Serko to pursue these opportunities. We will remain within our cash burn target and will not exceed our commitment to the market of a $2 million average monthly cash burn. We are razor-focused on rebuilding the value lost when COVID-19 severely impacted our share price. I'm sure you all saw the material drop from the high of $5.80 that was achieved in January of this year to its low in March, around the time New Zealand entered into lockdown. This was demoralizing for the team, but we are determined to continue the great work we've been doing, and we're pleased to see the share price recover. I'd like to take this opportunity to thank our existing and new shareholders for your support at the time of the 2019 capital raise and for your ongoing support. Turning to the impacts of the pandemic on the travel industry. Worldwide government responses to the pandemic, including lockdowns and suspension of all nonessential travel, continue to materially affect our booking volumes, which generate the majority of Serko's revenue, particularly in Australia. Travel bookings have increased as travel restrictions were lifted in New Zealand and by limited Australian domestic travel. In July, we'd seen a return of around 30% of the transacting volume booked in July last year. While this evidenced a steady increase in transactions from the lowest point of only 9% in April, we don't currently expect bookings to increase meaningfully above this level until Australian business starts traveling domestically again. New Zealand's latest lockdown is also resulting in another hopefully short-term drop in transactions. Turning now to Serko's outlook. We are actively preparing for the new normal. Despite the significant changes occurring in our industry, we do consider the business is well positioned for growth when trading conditions improve and the travel industry starts to recover. There are a number of reasons for our optimism. We occupy a strong market position in Australasia, with the majority of our transactions being domestic and Trans-Tasman. We have a pipeline of new customers from our existing reseller partners that we will onboard over the remainder of the financial year. We are focused predominantly on domestic travel within North America, where we continue to add resellers to our platform and develop localized content. Alongside a recovery in transaction volumes, we expect our TMC partners to start to bring back their teams and commence the onboarding of their customers onto Zeno. Our Booking.com business white label is now live in the United Kingdom and Ireland and is about to go live in Germany. It also presents an opportunity to continue to expand use of the Zeno booking tool globally. Darrin will speak to this opportunity in more detail shortly. We have a strong balance sheet and an ongoing commitment to invest in growth opportunities for Serko, and our team is focused and engaged. We are so proud of the work we've done both within Serko and to support and strengthen our wider community. Timing of the recovery of the travel industry, of course, remains highly uncertain. As a result, we continue to be unable to guide the market on our likely revenue for the 2021 financial year with any certainty. We indicated at our full year announcement that we anticipated our core Australasian markets will be operating at between 40% to 70% of their pre-COVID levels by March 2021. As mentioned, transactions have been relatively static at around 30% during July. And should Australia and New Zealand's travel remain restricted, we expect to be at the lower end of this range. However, once travel is less restricted, we could see transactions improve to 60% to 70% based on the experience of New Zealand at Level 1. We continue to take a conservative approach to growth assumptions as most industry reports indicate a slow and largely unpredictable return to full pre-COVID activity levels. While our cash supplies are finite, we have 18 months of cash based on a $2 million burn rate. At this stage, we do not need to raise any further capital, but we'll continue to monitor both our cash burn and capital requirements relative to our growth opportunities. As mentioned at the Annual Meeting last year, the Board has identified that the appointment of a new director will be required over the next couple of years to support Board renewal. We are currently considering the appointment of an additional nonexecutive director, although the process has been intentionally paused while the Board has focused its attention on managing the impacts of COVID-19. Succession planning will continue to be a focus for the Board over the coming year. There is no doubt that the pandemic has tested the resilience of Serko. The response to this by the Serko team has been both exemplary and exceptional. To pivot from a business anticipating a strong growth trajectory to face the realities of the COVID-19 environment has not been an easy or simple transition. We've made a number of very difficult decisions that have had a significant impact on our people. The commitment and agility of the wider Serko team, the Serko executive team and the Board has been unwavering. I commend Darrin on his leadership during this time, the Serko executive for their dedication and the wider Serko team for their sheer determination to thrive at this very difficult personal and professional moment in time. I would like to not only thank Darrin and the whole Serko team for their hard work and commitment to Serko over the past year, but also acknowledge the massive personal sacrifice of time and energy of all Serkodians over the past 6 months. I'd also like to acknowledge the significant contribution of my fellow directors over the past year who met for a staggering 22 additional special meetings to provide governance and support for the 2019 capital raise process, M&A activity and to oversee the risks presented by the COVID-19 pandemic. The last year in Serko's corporate history has been a true team effort. I'll now invite Darrin Grafton, CEO and Co-Founder, to address you. At the conclusion of Darrin's presentation, we will take your questions before we move to the formal business of the meeting, where you will also get the opportunity to ask questions on the particular resolutions being considered.

Thanks, Claudia. And as Claudia highlighted, the COVID-19 pandemic has had a profound impact on the travel industry. Many commentators are predicting that corporate travel volumes are likely to remain below pre-COVID levels until a vaccine or treatment is found. We are seeing consolidation and change occurring within the travel ecosystem. And while we are seeing some existing competitive threats sort of intensify as industry players fight for survival, we are also seeing opportunities for our technology to assist our reseller partners and our corporate travelers around the world. When COVID first hit, we shored up our survival by reducing our cash burn. We have used this less-than-ideal operating environment to actively look for opportunities to optimize our business and prioritize our strategic objectives. And now we are focused on how we can best position ourselves to thrive as the conditions normalize. Research into the impacts of the GFC have shown that companies that invested for growth during the GFC, and effectively balanced protecting their existing business while retooling the business for the post-GFC environment, actually accelerated profitability during and after the recession. We're seeking to do similarly balance that expenditure and protect our existing business with seizing the opportunities to rapidly grow as conditions improve. And we're already seeing changes in the requirements of corporate travelers and our Travel Management Company resellers post-COVID through them. Factors such as duty of care, cost management and flexibility to change travel bookings have become of increased importance. The managed travel channel, supported by our technology, is built to assist with these requirements, positioning us well when travel increases. As discussed at our last Annual Meeting, we continue to target $100 million in revenue. We consider that this opportunity remains undiminished, although the pandemic is likely to have slowed the timing of achieving that goal. We are still working on strategies to achieve this goal in the midterm, but as industry commentators are now predicting a potential 2- to 3-year recovery of travel to pre-COVID levels, it remains slightly uncertain. Our strategic goals remain unchanged despite COVID-19, and these are: one, to sustain and to continue to grow our customer base; and to increase and continue to increase that average revenue per booking or ARPB; and to continue to deliver market-leading technological innovations to underpin our platform for global expansion. And key to the ongoing delivery of these strategic goals are: sustaining and growing our current TMC resellers in our home markets, existing booking volumes are returning to normalized levels and then increasing over time and, of course, our ability to increase that average revenue per booking or ARPB; along with the successful execution of the Booking for Business white label opportunity; and achieving a material increase in booking volumes in North America. I'll address each of these market opportunities in turn. We occupy a strong market position in Australia and New Zealand, with the majority of our travel revenues coming from domestic bookings in these markets. Looking at each of these factors, the return of booking volumes. During the FY '20 financial year, we achieved year-on-year booking growth for the first 11 months, before the full impact of the pandemic was felt in March. However, due to the pandemic, our travel transactions dropped away materially. We've been pleased to see the overall volume of transactions steadily increasing since May. And as Claudia mentioned, they have been sitting at around that 30% of previous monthly volumes for the past month prior to the revised lockdown level in New Zealand. In a large part, this was due to the recovery of domestic travel within New Zealand and has seen some of our Travel Management Company resellers return to around 65% of their previous monthly volumes before the latest Level 3 lockdowns. We see the resumption of travel in New Zealand as a good indicator for what we hope to see in other countries as they manage through these various phases of the pandemic, although subsequent lockdowns will likely continue to impact volumes for some time to come. The Australian statewide lockdowns have meant we have not seen the same uplift in domestic travel within Australia yet, but we are encouraged to see that the reducing infection rates as a result of the latest strategy implemented could make a difference. This suggests that the Australasian market could recover similar levels to New Zealand over the remainder of the calendar year. We do expect to see corporates adopting a more conservative approach to travel in the short term but remain confident that travel will return to pre-COVID levels over time. We've also worked actively with our key resellers throughout COVID to understand the needs of their corporate travelers in a post-COVID environment and are discussing new features that will meet these emerging requirements for higher standards of duty of care, cost management and greater flexibility to change flights and bookings going forward. Although we also need to balance this investment in platform enhancements with cash burn in this environment of reduced activity. We're still achieving customer growth through continuous onboarding of new customers by our TMC resellers such as Orbit and Flight Centre, albeit at lower volumes of transactions due to COVID. The number of corporates booking in July increased to over 3,900, and this is up 700 since our full year announcement in just June 2020, where we reported 3,200 customers for the first 3 weeks of June. As part of achieving our goal of reaching $100 million in revenue, we had a target of acquiring 5 million transactions in Australasia at a $7 ARPB in the medium term. And we made good progress during FY '20 financial year with a peak in February of 24,000 bookings in a single day, and this was up from a peak of 21,000 in the same month in the prior year, and ARPB increasing to $6.46 based on total recurring revenue of $24.1 million from online bookings. Total bookings were 4.2 million for the FY '20 year, including offline bookings, with around 3.72 million that we class as online bookings. Our overall plan for the Australasian market is to capture a greater share of the travel wallet via 3 core areas: firstly, through the content, which is via supplier commissions, such as hotel and ground transportation commissions; secondly, via additional functionality, such as duty of care, compliance, complex multi-international booking functionality and other core market features; and finally, using our newest express Expense offering to increase that average revenue per booking and also to target the small, medium or SME market. The effects of COVID means that it's likely to take longer than originally planned to achieve our midterm goal. However, we think the original opportunity remains intact, and we are also seeing new opportunities arise as a result of the pandemic. We continue to see a significant transition to our premium Zeno product from Serko Online. And at the end of March, 25% of transactions were occurring on the Zeno platform. In July, approximately 35% of the transactions were occurring on Zeno, an increase of 10%. Over 50% of all transacting corporate customers transacted on Zeno in July. We also saw an opportunity with the way expenses needed to be managed during the period of working -- of remote working caused by the COVID-19 lockdowns. And in response to this, we created a light expense product using a direct marketing campaign and activation of a reseller incentive program across our travel management company partners in Australasia. This expense offering resulted in an increased pipeline of expense opportunities and our best months ever for new customer acquisitions, although these were smaller SME customers. In October, we entered into an expanded agreement with Booking.com to provide a white label of the Zeno platform to Booking as a replacement for Booking.com's existing Booking for Business SME offering, providing a revenue share arrangement. This continues to offer an exciting growth opportunity for Serko and notwithstanding the COVID environment. Our teams have worked closely under challenging conditions to enable the Zeno Booking for Business platform to go live in May, with pilot customers across the U.K. and Ireland. We continue to have bookings completed successfully on the platform, albeit still relatively low levels due to the widespread travel restrictions that have been in place. But we're now focused on further stages of the rollout. And the next country for rollout is scheduled to be Germany in September. Booking.com had announced that they are restructuring their business, and we are now investigating with Booking.com a faster migration plan to roll out to additional countries. So this means that Serko is now in the planning stage to accommodate a large-scale migration and build out the functionality and language features required for the proposed new markets. We will inform the market of what this mitigation -- or migration, sorry, program will look like over the coming months as the details are agreed with Booking.com. Of course, this opportunity is significant and potentially gives us access to a much larger addressable market as travel activity recovers over time. And this is in the form of unmanaged SME spend. The Booking.com initiative is being ably led by Jonathan Starkings, who was appointed to lead the Booking.com initiative. Jonathan was formerly the Managing Director of Groupon Travel and our Commercial Director for the Expedia Group. Since March, 3 new travel management resellers have signed agreements to come on to Zeno in the U.S., bringing our total resellers to 8. We're making good progress working through pilot programs with these resellers. Although it is slower than we'd like due to the pandemic, the focus going forward is on building a solid pipeline of transacting customers. Travel activity remains extremely subdued in this market, but we are pleased to have some customers trading within the North American market today, and we expect our transacting customer numbers to increase when the travel normalizes there. This market again provides a significant growth opportunity over time, but it is unlikely to generate a material revenue over the remainder of the financial year. We've added tailored North American content and integrations that have helped us win our largest customer to date in the market, ZS Associates. And development work will continue to expand the functionality around local air, rail and hotel content as well as completing reseller integrations to support the migration of the additional corporates onto our platform for North America. We've also added expense resellers with OMNIA Partners and Oracle NetSuite and are working on activating our travel management resellers to become expense referral partners in North America as well. While FY '20 feels like a long time ago now, as you will have heard, our operating environment has changed materially since then. I want to cover off our performance dashboard for the last financial year for good order. With our expansion plans and the corresponding increase in operating costs, Serko declined to an overall net loss after tax of $9.4 million. And EBITDAF was a loss of $6.1 million, down from a profit of $2.6 million in the prior year. Our operating revenue was still up 11% at $25.9 million for the year, with 93% representing recurring product revenue sources. Recurring core product revenues were up 16% to $24.1 million. And total income, including grants, was $26.8 million, up 9% over the prior period. Annualized transaction monthly revenue or ATMR, historically a forward-looking indicator of recurring revenues, reached a peak during February of $27.5 million, up 6% against the prior year comparative at $26 million. However, it declined to $15 million in March and has subsequently declined further as effects of COVID. Despite the COVID effect, total transactions across our travel platform in that year grew 2% over the previous year, last year. R&D spend was $13.6 million for the period and was up 48% from the prior period, which shows the increased development that was being invested into the product for new territory expansion. Operating costs increased 59% over the prior year to $37.1 million. A more detailed analysis of the financial performance is included in the annual report, which can be found on our website. As a company with strong growth ambitions, we've been continuing to strengthen our executive team. We have appointed Duanne O'Brien as Chief Technology Officer to lead the platform modernization and scalability initiative, and he brings over 25 years experience, specializing in building global enterprise SaaS platforms. We also appointed Sarah Miller, Serko's Company Secretary, to the role of General Counsel. Sarah has worked as a consultant to Serko supporting the Executive and Board since before our IPO. Sarah has over 20 years experience in leading in-house legal functions for dual-listed entities, consulting to a range of companies on transactional and governance matters and working for major law firms in both New Zealand and the U.K. We've also invested in our ability to scale new markets and new partners by appointing Nick Whitehead to Chief Marketing Officer to lead these initiatives globally. And in the last year, we have launched an innovative sales enablement program built around the Zeno partner program to rapidly onboard new travel management resellers and get them to the point of sales effectiveness much more quickly. And as mentioned before, we appointed Jonathan Starkings, an experienced commercial leader with significant experience in online travel, to head up our partnerships with Booking.com. So to recap, we are focused on driving our Australasian business and protecting revenue while investing into content and features needed to enable business travelers to balance both risk and control; and successfully completing the migration of Booking.com for Business customers onto our Zeno platform; and activating the North American market through multiple channels. These 3 core areas will see Serko lay the foundations now that will set us on the path needed to achieve our ambitions of $100 million. Before concluding, I think it's important to acknowledge the extraordinary efforts of the Serko Board and our people over the past year. As Claudia mentioned, our Board has extended themselves well beyond the normal Board schedule of meetings as we have navigated capital raisings, M&A activity and the COVID pandemic. So to our Board, I do extend my sincere thanks. Serko's people have demonstrated an extraordinary resilience and commitment by adapting and continuing to deliver on the most important aspects of our strategy for all our stakeholders. And so to my team, I extend my heartfelt gratitude. We will keep the market updated with any material changes. And I will now hand back to Claudia to moderate any questions that you have.

Thank you, Darrin. I'd now like to give shareholders and proxy holders the opportunity to ask questions to the Board, management or the auditors. There will also be an opportunity to ask questions on each of the proposed resolutions during the formal business session.

Are there any questions online?

Yes, we have received a question from shareholders. We've received one from [ Bruce Parks ] of the New Zealand Shareholders' Association. He has asked, in your comments on Board succession planning, you spoke of appointing an additional director. Does your succession planning also include the replacement of one of the current independent directors?

Thanks, Sarah, and I can talk to that. At this stage, we are only looking to add one additional nonexecutive director to the Board, which would take us to 3 total nonexecutive -- no, I'm sorry, 4 total nonexecutive directors, I was not counting myself, and 2 executive directors. So we'd go from a Board of 5 to a Board of 6. At this stage, we are not considering at all replacing an existing director. Are there any additional questions, Sarah?

There are no additional questions at this time.

Thank you. So we'll now move on to formal business and resolutions. As there are no further questions, we can -- we're now going to look at the resolutions. You can ask questions on each matter being put to shareholders through the virtual meeting website. The resolutions that we will be voting on today will be displayed on the screen. In accordance with best practice in NZX listing rules, I will call a poll on each of the resolutions being considered today. As I mentioned, shareholders will be able to cast their vote using the electronic voting card received when online registration is validated. To vote, you will need to click Get Voting Card within the online meeting platform. You will be asked to enter your shareholder or proxy number to validate. Please then mark your voting card in the way you wish to vote by clicking For, Against or Abstain on the voting card. Once you have made your selection, please click Submit Vote on the bottom of the card to lodge your vote. Voting will remain open until 5 minutes after the conclusion of the meeting, and the results of the vote will be announced via the stock exchanges. If you require any assistance, please refer to the online portal guide or use the helpline specified. Each of the resolutions set out in the Notice of Meeting are to be considered as an ordinary resolution, and as such, must be approved by a simple majority of the votes cast by shareholders entitled to vote in voting on that resolution. The outcome of proxy votes will be displayed for your information after you've been given an opportunity to vote on each resolution. Proxies have been appointed for the purpose of this meeting in respect of approximately 57.85 million shares, representing approximately 62.37% of the total number of shares on issue. The results of the proxies will be displayed following voting. Now moving to the resolutions. Resolution 1 is auditor's remuneration. The proposed resolution is to authorize the directors to fix the auditor's remuneration for the current year. In accordance with the Companies Act, Deloitte has been automatically reappointed as the company's auditor. Details of the statutory audit fees paid to Deloitte for the financial year ended 31 March 2020, are set out in the 2020 annual report. I now propose, as an ordinary resolution, that the directors are authorized to fix the fees and expenses of Deloitte as an auditor -- as the auditor for Serko Limited. Are there any questions online?

Claudia, we have not received any questions online in relation to this motion.

Thank you. Please now select either for, against or abstain for resolution one on the voting card. [Voting]

We'll now move on to Resolution 2, which is the reelection of Claudia Batten as a director. I've asked Clyde McConaghy to manage the second resolution as it concerns my own reelection.

Thanks, Claudia. Resolution 2 relates to the reelection of Claudia Batten to the Board. The Board recommends Claudia wholeheartedly to you as an independent director and unanimously supports her reelection. If I could ask you, Claudia, to make a few comments on this motion.

Thanks, Clyde. So I had kind of 3 key points to make today as I thought about what might be useful for me to share. And largely, they sit in the themes of commitment, aspiration and capability, which all feel very important for all of us right now. So from a commitment standpoint, I mean, I think that I'm in business attire in the middle of a heat wave in Los Angeles should speak volumes for my commitment to this company. But as has been also mentioned in the Annual Meeting, there've been a number of weekend calls, Board calls, additional calls, even calls during my vacation last year, which is now a very distant memory. And at no point has it ever been a problem, a hassle to join those calls that are important to me. And I am very committed to Serko and to supporting Serko generally and then very specifically through this moment in time. From an aspiration standpoint, I guess I reflect on leaving Sydney in February this year with a fully baked plan of what we were going to do with Serko in the coming year. It was a great plan. It was an aspirational plan, and we're all fired up to do it. And now in August, not even 6 months later, we find ourselves in this current position. What's exciting about the moment we're in, though difficult for a lot of people and not without its difficulty for us, is that I think with all of these changes, we can also see them as opportunities. And working with the Serko team to find ways that we can pivot quickly and get to a place where we can create the same, if not a bigger vision for Serko, has been fueling me, frankly, through a time of effectively a pretty forced quarantine in Los Angeles. So my aspirations have not shifted. And if anything, they're bigger than they ever were. And finally, from a capability standpoint, this is not something I take lightly. And I appreciate very much the role of director and representing shareholders in making sure that the decisions that we make in very much in this environment are robust and kind of really balanced, to Darrin's point earlier, creating a future for Serko whilst really protecting us through a very, very uncertain time. I think my history as a entrepreneur, as a technology founder and also as a prior lawyer, allow me to balance those decisions really well and represent you to the best of my capability. And I guess, finally, I'm ready for the fight. When I started my career in law, it was 1999 around Y2K, and we thought the world was over then. I moved to New York in 2002, months after 9/11. And then I set my second business up in 2008 in the midst of the GFC. So I'm fueled by the opportunity that's present within these challenges, and I'm very excited about supporting Serko through this stage. Thank you. Thanks, Clyde.

Thanks very much, Claudia. I'd like to now propose that Claudia be reelected as [ director ] of the company. So I'd like to ask Sarah if there are any questions coming online.

Clyde, we've received no questions online.

Okay. As there are no questions on the matter, I'd like people to take the opportunity to vote. And please select either for, against or abstain on the button on your screen, thank you, on the resolution. [Voting]

Okay. I'll now hand back to Claudia to chair the meeting. Thank you.

Thanks, Clyde. You should now submit your votes if you haven't done so already. Voting will be open until the close of the meeting. Results of the poll will be announced on the NZX and ASX after the conclusion of the meeting. The outcome of proxy votes will now be displayed online for your information. I'd now like to give shareholders a final opportunity to ask questions, whether related to the presentations, the financial statements or the management of the company. You can continue to provide questions online, and we will also address questions already submitted online. We will allow 15 minutes for questions. If we run short of time or are unable to answer your question online today, we will endeavor to respond to you after the meeting. Are there any questions online?

Thanks, Claudia. We've received no further questions online.

Given that there are no further questions from shareholders, I will now close the meeting. Thank you for your online attendance and your patience at Serko's First Virtual Annual Meeting. I now declare the meeting closed. The results of the meeting will be released on the NZX and ASX later today. Thank you.