Tuesday, April 13, 2021

Travelzoo (TZOO)
Expecting A Slow Start Toward Recovery

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.

Refining estimates. The company recently released its annual 10K and this report refines our estimates for 2021 and 2022 and posts our look into 2023. While the Covid vaccines provide promise of a return toward “normalcy”, we believe that the travel recovery is off to a sluggish start. We are lowering our full year 2021 and 2022 revenue and adj. EBITDA estimates.


Where should gross margins go? Gross margins in Q4 decreased from 78.8% in Q3 to 77.6% in Q4. The gross margins were significantly down from 88.1% in Q4 2019. Our model assumes a gradual improvement in gross margins to 79.2% in 2021 to 81.0% in 2022 to 81.5% in 2023 …

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.