Friday, April 23, 2021

Travelzoo (TZOO)
Risk/Reward Relationship Improves Despite Headwinds

Travelzoo is a US-based company which acts as a publisher of travel and entertainment offers. The company informs a varied number of members in Asia Pacific, Europe, and North America, as well as millions of website users, about the best travel, entertainment and local deals available from various companies. It provides travel, entertainment, and local businesses in a flexible manner to the various customer. The company operates in three geographic segments namely Asia Pacific, Europe, and North America. Travelzoo derives its revenue through advertising fees including listing fees paid by travel, entertainment, and local businesses to advertise their offers on company’s media properties. Most of the company’s revenue is derived from the North America.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q1 in line with previously lowered expectations. Total company revenues were $14.3 million versus our $13.7 million estimate. The revenues benefited from moderating advertising trends. Adjusted EBITDA was roughly $600,000 versus our $15,000 estimate, benefiting from slightly better gross margins.


Q2 outlook appears encouraging.  Management guided Q2 revenues to a range of $16 million to $17 million, with expenses to be roughly $15.5 million. Given the improving revenues, the company is expected to swing toward earnings positive in the quarter …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.