Good morning, everyone, and welcome to the Travelzoo Third Quarter 2017 Financial Results Conference Call. [Operator Instructions]. Today's call is being recorded. Before introducing you to your host and beginning the company's presentation, the company would like to remind you that all statements made during this conference call and presented in the company's slides that are not statements of historical fact constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could vary materially from those contained in the forward-looking statements. 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 periodic filings with the SEC. Unless required by law, the company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Please note that this call is being webcast from the company's Investor Relations website at www.travelzoo.com/earnings. Please refer to the company's website for important information, including the company's earnings press release issued earlier this morning, along with the slides that accompany today's prepared remarks. An archived recording of this conference call will be available on the Travelzoo Investor Relations website at www.travelzoo.com/ir, beginning approximately 90 minutes after the conclusion of this call. Now it is my pleasure to turn the floor over to your host, Mr. Holger Bartel, Travelzoo's Global CEO. Thank you. You may begin, sir.

Thank you, Operator. Good morning, and thank you for joining us today for Travelzoo's Third Quarter 2017 Financial Results Conference Call. I am Holger Bartel, Global CEO of Travelzoo, and joining me today, as always, is Glen Ceremony, the company's Chief Financial Officer. Glen will walk you through today's format.

Thank you, Holger and everyone, for joining us today. For the format of today's call, I will review our third quarter financial results, and then Holger will provide an update on our business initiatives. Thereafter, we will open the call for our question-and-answer session. Now please open our management presentation, which is available on our Investor Relations website to follow along with our prepared remarks. Now let's turn to Slide 3, which provides the key financial highlights for the quarter. Our revenue for the quarter was $24.7 million, down 8% year-over-year or down 9% in constant currencies. Our diluted earnings per share from continuing operations this quarter was a $0.05 loss, down year-over-year, driven by the lower revenues and a larger loss in Asia. Our members grew to 29.5 million and our social media followers and mobile app downloads continue to increase. Slide 4 highlights our revenue by segment. Revenue in North America was $15 million, representing a year-over-year decrease of 5%, which is better than last quarter. Revenue in Europe was $7.9 million, representing a year-over-year constant currency decrease of 9%. And revenue in Asia Pacific was $1.8 million, representing a year-over-year constant currency decrease of 28%. The next few slides cover further detail of our revenue for each of our 3 segments. Slide 5 shows North America year-over-year revenue of $15 million. Revenues from our core products, Top 20, our new responsive website and from our hotel platform increased year-over-year, yet this was offset by the pullback from our Getaway voucher sales, as we focused more on our hotel platform. Revenues from our local products shrank by the least amount in over 2 years. Revenues were also impacted by the 2 large hurricanes hitting the Caribbean and parts of the U.S. during the quarter. Turning to Slide 6.…

Let me start off by saying that we are pleased with the positive trends continuing in North America, which would have looked much better if we didn't have all these weather events in - the hurricanes and Napa Valley and the - just a lot going on in the third quarter. Although we have not yet reached a year-on-year revenue growth that we would like to achieve, but on the other hand there's clearly more work to be done in Asia Pacific. We regard this as a longer-term attractive opportunity, and we plan to continue to improve both product offering and management there to help improve our members' experience and our financial results. So on Slide 15 I would like to talk about some of the business initiatives that are underway, which we believe will return us to growth mode in the next 6 to 12 months. First, we are expanding our offerings. Being a Travelzoo member is great, but we want to make Travelzoo membership even more attractive. So we are working to add exclusive benefits and member perks. We also know that exclusive offers drive sales and bookings. Bookings from our hotel platform continue to grow, yet we want to accelerate that pace of growth. So we are adding more exclusive rates and offers, which we have found to dramatically increase conversion rates. We've also started to break down the country silos in which our offers reside today, and our hotel platform for deals and special offers for our members is now fully globalized. Members worldwide now have access to any offer that we have negotiated from one of our 25 offices around the world. We're also broadening our offering in the area of packaged vacations, with more exclusive offers for our members. Several partnerships are already underway,…

[Operator Instructions]. Your first question comes from the line of Dan Kurnos from Benchmark.

Great. Let's just start from the top down. Holger, just on sub count. I know you guys have been reinvesting a lot of dollars and going after high-value subs, and we're not really going to see a major acceleration just because, obviously, there's some natural e-mail churn involved there. We are still seeing growth in Europe, and have seen sort of a little bit of a tepid growth in Asia. So just can you tell us how you're thinking about, you know, which market you're kind of deploying more capital to? Understanding that you'd like to ramp the Asia business, but that's taking a little bit longer time. And just how we should think about, once we get through this year - as we look in the next year calling for this return to growth, how we should think about sub growth contributing to that factor versus increase of wallet share?

Yes, you're right. Right now, we do the most in Europe. In the other markets, not quite as much. And I just spoke about that new technology platform that we are implementing to better understand what our members are doing, usage data. It's a technology we'll be implementing over the next 6 months. And one of the key benefits actually is in the area of member acquisition because we will learn what our members are doing, what type of members, what type of geographics, what type of demographics are going after certain offers. And until this is in place, we are slow down a little bit in North America with new member acquisition.

Got it. Okay, that's helpful. And then, just on the local business. North America actually had - I mean, it was down, but it wasn't down. You just sort of stemmed the declines. I know you called sort of a better - the best result, I think, in like sort of 2 years. I'm just curious, how much of that is from frankly, Getaways just being a smaller portion of the underlying number versus how much of it is coming from actually turning of the tide, if you will, in package sales?

Getaways is actually not part of that. Getaways are in the travel line. In local, it's really local offers from restaurants, bars and entertainment. It's also a part of that. And yes, the team in North America did better this quarter. So we're quite encouraged by that. But also want to say, our main focus to drive revenue is in the next few quarters and get back to that year-over-year revenue growth that I would like to achieve next year. Our main focus there and the main source for that will be in the travel products area, particularly in the areas like hotels, vacation packages. I feel that revenues in Getaways - and Glen can - happily commented as well, have now declined, can be replaced by hotel platform revenue at a level where - I don't see that going down that much more. But our results in North America then would have looked much, much better, and we're actually quite excited at the beginning of the quarter if we didn't have these weather events. Because, as you can imagine, if - several islands on the Caribbean are destroyed, and people cannot fly to even Florida or to the south or to Texas, or people cannot fly from Texas and thousands of flights being canceled. That really hit us, because offers that were planned to run in September, just had to be pulled. And so we definitely lost some advertising revenue there. Otherwise, as I said, North America would've looked much better. And overall, it's been encouraging there. Asia on the other hand, as I said, was a bit disappointing. Just taking longer to fill all the positions that we want to fill. But on a good note, where we are able to do that, like in Hong Kong - we appointed earlier this year, a new General Manager in Australia. We have appointed a new General Manager, and in both countries now, we are seeing year-over-year revenue growth - actually you shouldn't call Hong Kong a country. So rather in the region - the territory of Hong Kong. So that's encouraging. So I think we will do better there once we are able to improve the talent and management situation there.

I don't know if - how relevant this is, but just in terms of what you focused on the travel product. Obviously, a lot has been made from the larger players and the alternate lodging space. I know it's a little bit different set of assets or opportunities, North America versus Europe. But, I mean, do you have any thoughts on getting - penetrated more into that channel? Or is that - is it still, "Hey, we've got a hotel opportunity." More traditionally, if would include B and Bs as traditional hotel offerings that we'd like to focus on?

Not an area of focus for us. At least not yet.

I will now turn the call back to Mr. Holger Bartel.

Thank you, again, ladies and gentlemen, for your time and support, and we look forward to speaking with you again next quarter. Bye.