NEW YORK, Sept. 13, 2023 /PRNewswire/ — Thousands of people visiting Times Square were stopped in their tracks. Splashed across the façade of NASDAQ’s headquarters yesterday were fantastical animals from the Metaverse. Travelzoo META’s Travel Companions gazed out at onlookers and announced with their presence that the future of travel is here. Travelzoo® (NASDAQ: TZOO), a global Internet media company that provides exclusive offers and experiences for members, recently announced the launch of Travelzoo META, a members-only service offering groundbreaking Metaverse travel experiences.
With its launch, Travelzoo META opened registrations for Founding Membership. Founding Members of Travelzoo META will have the opportunity to be the first to experience travel in the Metaverse. Each Founding Member will also be entitled to one of the world’s first personality-based, emotionally-driven Travel Companions (NFTs) that match their personal Metaverse travel style.
Travelzoo META’s experiences are intended to allow its members to explore hard-to-reach corners of the world, like summiting Mount Everest, or travel back in time, to Ancient Rome perhaps. They can also discover new spaces beyond imagination. All this is possible using a mobile or desktop device and a simple browser.
“The Metaverse is too big for companies to ignore,” states global management consulting firm McKinsey & Company. The firm has recently confirmed its estimate of the Metaverse becoming a $5 trillion market by 2030. One of the business segments which McKinsey & Company is particularly bullish on is travel. The Metaverse is expected to have a major impact on the travel industry and change travel experiences for consumers.
Find out how you can be part of the future of travel. Become a Travelzoo META Founding Member at http://meta.travelzoo.com.
About Travelzoo META Travelzoo META is a paid members-only service offering groundbreaking Metaverse travel experiences. Working in partnership with cutting-edge creators, we have access to the latest immersive experiences that are intended to allow members to explore hard-to-reach corners of the world, travel back in time, or discover new spaces beyond imagination.
Travelzoo and Travelzoo META are registered trademarks of Travelzoo. All other names are trademarks and/or registered trademarks of their respective owners.
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid Q2 results. The company reported better than expected revenue and adj. EBITDA in Q2. Revenue was $21.1 million and adj. EBITDA was $4.2 million, compared with our estimates of $20.5 million and $3.4 million, respectively. Revenue growth accelerated to 19% in Q2, compared with 17% growth in Q1.
Strong margins. Adj. EBITDA margins were up to nearly 20%, due in large part to 27% operating profit margins in the North America business segment. Operating profit in Europe, though, still negative, improved to nearly flat (-3%).
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
NEW YORK, July 27, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):
Revenue of $21.1 million, up 19% year-over-year
Consolidated operating profit of $3.3 million
Non-GAAP consolidated operating profit of $4.2 million
Cash flow from operations of $5.1 million
Earnings per share (EPS) of $0.17
Travelzoo, a global Internet media company that provides exclusive offers and experiences for members, today announced financial results for the Second quarter ended June 30, 2023. Consolidated revenue was $21.1 million, up 19% from $17.7 million year-over-year. In constant currencies, revenue was $21.2 million, up 20% year-over-year. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members.
The reported net income attributable to Travelzoo from continuing operations was $2.6 million for Q2 2023. At the consolidated level, including minority interests, the reported net income from continuing operations was $2.7 million. EPS from continuing operations was $0.17, compared to $0.08 in the prior-year period.
Non-GAAP operating profit was $4.2 million. The calculation of non-GAAP operating profit excludes amortization of intangibles ($0.4 million), stock option expenses ($0.4 million) and severance-related expenses ($56,000). See section “Non-GAAP Financial Measures” below.
“Year-over-year revenue growth accelerated from Q1 to Q2,” said Holger Bartel, Travelzoo’s Global CEO. “We will continue to leverage Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for Travelzoo members. With more than 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences.”
Cash Position
As of June 30, 2023, consolidated cash, cash equivalents and restricted cash were $20.2 million. Net cash provided by operations was $5.1 million.
Travelzoo North America
North America business segment revenue increased 14% year-over-year to $14.1 million. Operating profit for Q2 2023 was $3.8 million, or 27% of revenue, compared to an operating profit of $3.3 million in the prior-year period.
Travelzoo Europe
Europe business segment revenue increased 35% year-over-year to $5.9 million. At constant currencies, Europe business segment revenue increased 36% year-over-year. Operating loss for Q2 2023 was $239,000, compared to an operating loss of $1.5 million in the prior-year period.
Jack’s Flight Club
Jack’s Flight Club business segment revenue increased 15% year-over-year to $1.1 million. Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. The number of premium subscribers increased 30% year-over-year. Revenue from increases in subscribers is reported with a lag because we recognize revenue from subscriptions monthly pro rata over the subscription period (quarterly, semi-annually, annually). Operating profit for Q2 2023 was $97,000, compared to an operating profit of $161,000 in the prior-year period. Non-GAAP operating profit for Q2 2023 was $255,000. Non-GAAP operating profit excludes amortization of intangibles ($0.2 million) related to the acquisition.
New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $13,000. Operating loss for Q2 2023 was $338,000.
In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. Travelzoo recorded $4,000 in licensing revenue from the licensee in Japan in Q2 2023. Travelzoo recorded $9,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q2 2023. Licensing revenue is expected to increase going forward.
Members and Subscribers
As of June 30, 2023, we had 30.8 million members worldwide. In North America, the unduplicated number of Travelzoo members was 16.2 million as of June 30, 2023, down 2% from June 30, 2022. In Europe, the unduplicated number of Travelzoo members was 9.2 million as of June 30, 2023, up 1% from June 30, 2022. Jack’s Flight Club had 2.2 million subscribers as of June 30, 2023, up 22% from June 30, 2022.
Discontinued Operations
As announced in a press release on March 10, 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations since March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with U.S. GAAP.
Income Taxes
A provision of $1.1 million for income taxes was recorded for Q2 2023, compared to an income tax expense of $928,000 in the prior-year period. The provision for Q2 2023 does not reflect the expected utilization of NOLs by Travelzoo in the U.S.
Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: amortization of intangibles, stock option expenses, and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Looking Ahead
For Q3 2023, we currently expect growth in revenue and growth in operating profit to continue year-over-year. During the pandemic, we have been able to lower our fixed costs. We believe we can keep our fixed costs relatively low in the foreseeable future.
download the management presentation (PDF format) to be discussed in the conference call
access the webcast.
About Travelzoo
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Travelzoo and Jack’s Flight Club are registered trademarks of Travelzoo.
NEW YORK, July 26, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO), a global Internet media company that provides exclusive offers and experiences for members, today announced that its board of directors has authorized the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock.
Purchases may be made, from time to time, in the open market and will be funded from available cash. The number of shares to be purchased and the timing of purchases will be based on the level of Travelzoo’s cash balances, general business and market conditions, and other factors, including alternative investment opportunities.
About Travelzoo
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Travelzoo, Top 20, and Jack’s Flight Club are registered trademarks of Travelzoo.
NEW YORK, July 21, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):
WHAT:
Travelzoo, a global Internet media company that provides exclusive offers and experiences for members, will host a conference call to discuss the Company’s financial results for the second quarter ended June 30, 2023. Travelzoo will issue a press release reporting its results before the market opens on July 27, 2023.
WHEN:
July 27, 2023 at 11:00 AM ET
HOW:
A live webcast of Travelzoo’s Q2 2023 earnings conference call can be accessed athttp://ir.travelzoo.com/events-presentations. The webcast will be archived within 2 hours of the end of the call and will be available through the same link.
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
BERLIN, July 20, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO), a global Internet media company that provides exclusive offers and experiences for members, has won the top spot in the category of “Best Travel Deals Provider” in a nationwide consumer survey in Germany. The win has particular significance given Germany is the third-largest travel market in the world.
The survey was conducted by renowned research institute ServiceValue GmbH in partnership with Die Welt, one of the country’s most influential national newspapers.
Casting over 900,000 votes, consumers ranked 2,513 companies across 187 categories, making this one of the most comprehensive consumer-voted surveys in Germany. When asked which brand exhibits the highest quality for travel deals, consumers cast the largest number of votes for Travelzoo, naming it “Product Champion”.
Winners in other categories included companies such as Mercedes-Benz, Lufthansa, Rolex, and Amazon.
Travelzoo was also recognized for “high customer value” in a second national survey this month, commissioned by popular broadsheet BILD Zeitung. Consumers cast over 500,000 votes, evaluating 2,198 companies in 138 categories.
Find out why Travelzoo is the choice of judges, industry experts, and more than 30 million members around the world. Become a Travelzoo member today: https://travelzoo.com/signup.
About Travelzoo
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Travelzoo is a registered trademark of Travelzoo. All other names are trademarks and/or registered trademarks of their respective owners.
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Strong Q1 results. The company reported Q1 revenue of $21.6 million, an increase of 17% from the prior year period, beating our estimate of $20.5 million by 5.4%. Adj. EBITDA of $5.6 million beat our estimate of $3.9 million by 44%. The quarter was driven by strong operating results in North America, with 26% revenue growth and strong 31% operating margins.
Favorable margins. The quarter demonstrated favorable 87.5% gross margins and record breaking total company operating margins of 22%, substantially higher than pre-pandemic levels. Management highlighted the transition of Asia Pacific to a licensing model as a major contributor to the record margins.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
NEW YORK, April 27, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):
Revenue of $21.6 million, up 17% year-over-year
In constant currencies, revenue was $22.1 million, up 19% year-over-year
Non-GAAP consolidated operating profit of $5.5 million
Earnings per share (EPS) of $0.23
Travelzoo, a global Internet media company that provides exclusive offers and experiences for members, today announced financial results for the first quarter ended March 31, 2023. Consolidated revenue was $21.6 million, up 17% from $18.5 million year-over-year. In constant currencies, revenue was $22.1 million. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members.
The reported net income attributable to Travelzoo from continuing operations was $3.7 million for Q1 2023. At the consolidated level, including minority interests, the reported net income from continuing operations was $3.7 million. EPS from continuing operations was $0.23, compared to $0.19 in the prior-year period.
Non-GAAP operating profit was $5.5 million. The calculation of non-GAAP operating profit excludes amortization of intangibles ($0.4 million), stock option expenses ($0.4 million) and severance-related expenses ($39,000). See section “Non-GAAP Financial Measures” below.
“We will continue our strategy of leveraging Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for Travelzoo members,” said Holger Bartel, Travelzoo’s Global CEO. “With more than 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences.”
Cash Position As of March 31, 2023, consolidated cash, cash equivalents and restricted cash were $19.8 million. Net cash provided by operations was $535,000.
Reserve Reported revenues include a reserve of $785,000 related to commissions to be earned from vouchers sold. The reserve is initially booked as contra revenue.
Travelzoo North America North America business segment revenue increased 26% year-over-year to $14.8 million. Operating profit for Q1 2023 was $4.5 million, or 31% of revenue, compared to an operating profit of $1.7 million in the prior-year period.
Travelzoo Europe Europe business segment revenue remained consistent year-over-year at $5.9 million. At constant currencies, Europe business segment revenue increased 6% year-over-year. Operating profit for Q1 2023 was $457,000, or 8% of revenue, compared to an operating profit of $178,000 in the prior-year period.
Jack’s Flight Club Jack’s Flight Club business segment revenue increased 15% year-over-year to $948,000. Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. The number of premium subscribers increased 27% year-over-year. Revenue from increases in subscribers is reported with a lag because we recognize revenue from subscriptions monthly pro rata over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q1 2023 was $123,000, compared to a non-GAAP operating profit of $249,000 in the prior-year period. After consolidation with Travelzoo, Jack’s Flight Club’s net income was $20,000, with $12,000 attributable to Travelzoo as a result of recording $168,000 of amortization of intangible assets related to the acquisition.
New Initiatives New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $8,000. Operating loss for Q1 2023 was $217,000.
In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. Travelzoo recorded $8,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q1 2023. Licensing revenue is expected to increase going forward.
Members and Subscribers As of March 31, 2023, we had 30.5 million members worldwide. In North America, the unduplicated number of Travelzoo members was 16.3 million as of March 31, 2023, down 2% from March 31, 2022. In Europe, the unduplicated number of Travelzoo members was 9.1 million as of March 31, 2023, consistent with March 31, 2022. Jack’s Flight Club had 2.0 million subscribers as of March 31, 2023, up 14% from March 31, 2022.
Discontinued Operations As announced in a press release on March 10, 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations since March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with U.S. GAAP.
Income Taxes A provision of $1.4 million for income taxes was recorded for Q1 2023, compared to an income tax expense of $968,000 in the prior-year period. The provision for Q1 2023 does not reflect the expected utilization of NOLs by Travelzoo in the U.S.
Non-GAAP Financial Measures Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: amortization of intangibles, stock option expenses, and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Looking Ahead For Q2 2023, we currently expect growth in revenue and growth in operating profit to continue year-over-year. During the pandemic, we have been able to lower our fixed costs. We believe we can keep our fixed costs relatively low in the foreseeable future.
Conference Call Travelzoo will host a conference call to discuss first quarter 2023 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to
download the management presentation (PDF format) to be discussed in the conference call
access the webcast.
About Travelzoo Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Travelzoo and Jack’s Flight Club are registered trademarks of Travelzoo.
TravelzooCondensed Consolidated Statements of Operations(Unaudited)(In thousands, except per share amounts)
Three months ended
March 31
2023
2022
Revenues
$ 21,601
$ 18,453
Cost of revenues
2,691
2,832
Gross profit
18,910
15,621
Operating expenses:
Sales and marketing
9,296
8,581
Product development
490
453
General and administrative
4,413
4,668
Total operating expenses
14,199
13,702
Operating income
4,711
1,919
Other income, net
350
1,423
Income from continuing operations before income taxes
5,061
3,342
Income tax expense
1,378
968
Income from continuing operations
3,683
2,374
Loss from discontinued operations, net of tax
(2)
(11)
Net income
3,681
2,363
Net income attributable to non-controlling interest
8
4
Net income attributable to Travelzoo
$ 3,673
$ 2,359
Net income attributable to Travelzoo—continuing operations
$ 3,675
$ 2,370
Net loss attributable to Travelzoo—discontinued operations
$ (2)
$ (11)
Income per share—basic
Continuing operations
$ 0.23
$ 0.20
Discontinued operations
$ —
$ —
Net income per share—basic
$ 0.23
$ 0.20
Income per share—diluted
Continuing operations
$ 0.23
$ 0.19
Discontinued operations
$ —
$ —
Net income per share—diluted
$ 0.23
$ 0.19
Shares used in per share calculation from continuing operations—basic
15,697
12,056
Shares used in per share calculation from discontinued operations—basic
15,697
12,056
Shares used in per share calculation from continuing operations—diluted
15,779
12,544
Shares used in per share calculation from discontinued operations—diluted
NEW YORK, April 27, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):
Revenue of $21.6 million, up 17% year-over-year
In constant currencies, revenue was $22.1 million, up 19% year-over-year
Non-GAAP consolidated operating profit of $5.5 million
Earnings per share (EPS) of $0.23
Travelzoo, a global Internet media company that provides exclusive offers and experiences for members, today announced financial results for the first quarter ended March 31, 2023. Consolidated revenue was $21.6 million, up 17% from $18.5 million year-over-year. In constant currencies, revenue was $22.1 million. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members.
The reported net income attributable to Travelzoo from continuing operations was $3.7 million for Q1 2023. At the consolidated level, including minority interests, the reported net income from continuing operations was $3.7 million. EPS from continuing operations was $0.23, compared to $0.19 in the prior-year period.
Non-GAAP operating profit was $5.5 million. The calculation of non-GAAP operating profit excludes amortization of intangibles ($0.4 million), stock option expenses ($0.4 million) and severance-related expenses ($39,000). See section “Non-GAAP Financial Measures” below.
“We will continue our strategy of leveraging Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for Travelzoo members,” said Holger Bartel, Travelzoo’s Global CEO. “With more than 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences.”
Cash Position As of March 31, 2023, consolidated cash, cash equivalents and restricted cash were $19.8 million. Net cash provided by operations was $535,000.
Reserve Reported revenues include a reserve of $785,000 related to commissions to be earned from vouchers sold. The reserve is initially booked as contra revenue.
Travelzoo North America North America business segment revenue increased 26% year-over-year to $14.8 million. Operating profit for Q1 2023 was $4.5 million, or 31% of revenue, compared to an operating profit of $1.7 million in the prior-year period.
Travelzoo Europe Europe business segment revenue remained consistent year-over-year at $5.9 million. At constant currencies, Europe business segment revenue increased 6% year-over-year. Operating profit for Q1 2023 was $457,000, or 8% of revenue, compared to an operating profit of $178,000 in the prior-year period.
Jack’s Flight Club Jack’s Flight Club business segment revenue increased 15% year-over-year to $948,000. Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. The number of premium subscribers increased 27% year-over-year. Revenue from increases in subscribers is reported with a lag because we recognize revenue from subscriptions monthly pro rata over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q1 2023 was $123,000, compared to a non-GAAP operating profit of $249,000 in the prior-year period. After consolidation with Travelzoo, Jack’s Flight Club’s net income was $20,000, with $12,000 attributable to Travelzoo as a result of recording $168,000 of amortization of intangible assets related to the acquisition.
New Initiatives New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $8,000. Operating loss for Q1 2023 was $217,000.
In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. Travelzoo recorded $8,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q1 2023. Licensing revenue is expected to increase going forward.
Members and Subscribers As of March 31, 2023, we had 30.5 million members worldwide. In North America, the unduplicated number of Travelzoo members was 16.3 million as of March 31, 2023, down 2% from March 31, 2022. In Europe, the unduplicated number of Travelzoo members was 9.1 million as of March 31, 2023, consistent with March 31, 2022. Jack’s Flight Club had 2.0 million subscribers as of March 31, 2023, up 14% from March 31, 2022.
Discontinued Operations As announced in a press release on March 10, 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations since March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with U.S. GAAP.
Income Taxes A provision of $1.4 million for income taxes was recorded for Q1 2023, compared to an income tax expense of $968,000 in the prior-year period. The provision for Q1 2023 does not reflect the expected utilization of NOLs by Travelzoo in the U.S.
Non-GAAP Financial Measures Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: amortization of intangibles, stock option expenses, and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Looking Ahead For Q2 2023, we currently expect growth in revenue and growth in operating profit to continue year-over-year. During the pandemic, we have been able to lower our fixed costs. We believe we can keep our fixed costs relatively low in the foreseeable future.
Conference Call Travelzoo will host a conference call to discuss first quarter 2023 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to
download the management presentation (PDF format) to be discussed in the conference call
access the webcast.
About Travelzoo Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Travelzoo and Jack’s Flight Club are registered trademarks of Travelzoo.
TravelzooCondensed Consolidated Statements of Operations(Unaudited)(In thousands, except per share amounts)
Three months ended
March 31
2023
2022
Revenues
$ 21,601
$ 18,453
Cost of revenues
2,691
2,832
Gross profit
18,910
15,621
Operating expenses:
Sales and marketing
9,296
8,581
Product development
490
453
General and administrative
4,413
4,668
Total operating expenses
14,199
13,702
Operating income
4,711
1,919
Other income, net
350
1,423
Income from continuing operations before income taxes
5,061
3,342
Income tax expense
1,378
968
Income from continuing operations
3,683
2,374
Loss from discontinued operations, net of tax
(2)
(11)
Net income
3,681
2,363
Net income attributable to non-controlling interest
8
4
Net income attributable to Travelzoo
$ 3,673
$ 2,359
Net income attributable to Travelzoo—continuing operations
$ 3,675
$ 2,370
Net loss attributable to Travelzoo—discontinued operations
$ (2)
$ (11)
Income per share—basic
Continuing operations
$ 0.23
$ 0.20
Discontinued operations
$ —
$ —
Net income per share—basic
$ 0.23
$ 0.20
Income per share—diluted
Continuing operations
$ 0.23
$ 0.19
Discontinued operations
$ —
$ —
Net income per share—diluted
$ 0.23
$ 0.19
Shares used in per share calculation from continuing operations—basic
15,697
12,056
Shares used in per share calculation from discontinued operations—basic
15,697
12,056
Shares used in per share calculation from continuing operations—diluted
15,779
12,544
Shares used in per share calculation from discontinued operations—diluted
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Strong Q4 results. The company reported strong Q4 operating results, with revenue up 31.6% to $18.6 million and Adj. EBITDA up an impressive 328% to $4.7 million. Notably, the company’s North America segment grew revenue by 53% and reported margins of 29%. The company benefited from favorable travel trends and lower operating expenses, particularly marketing expenses.
Favorable trends. The company has positive revenue and margin momentum moving into 2023. Management highlighted the opportunity for further margin growth given potential advertising price increases in Q2. The company appears to be benefiting from pent up travel demand from its travel enthusiast base.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
NEW YORK, March 22, 2023 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):
Revenue of $18.6 million, up 36% year-over-year
In constant currencies, revenue was $19.4 million, up 42% year-over-year
Non-GAAP consolidated operating profit of $4.8 million
Earnings per share (EPS) of $0.20
Travelzoo, a global Internet media company that provides exclusive offers and experiences for members, today announced financial results for the fourth quarter ended December 31, 2022. Consolidated revenue was $18.6 million, up 36% from $13.7 million year-over-year. In constant currencies, revenue was $19.4 million. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members.
The reported net income attributable to Travelzoo from continuing operations was $2.5 million for Q4 2022. At the consolidated level, including minority interests, the reported net income from continuing operations was $2.5 million. EPS from continuing operations was $0.20, compared to EPS of ($0.27) in the prior-year period.
Non-GAAP operating profit was $4.8 million. The calculation of non-GAAP operating profit excludes impairment of intangible assets ($200,000), amortization of intangibles ($453,000), stock option expenses ($348,000) and severance-related expenses ($200,000). GAAP operating profit was $3.6 million. See section “Non-GAAP Financial Measures” below.
“Revenue growth accelerated in both North America and in Europe, leading to much stronger earnings,” said Holger Bartel, Travelzoo’s Global CEO. “As the recovery from the pandemic continues, we will leverage Travelzoo’s global reach and trusted brand to further improve earnings in future periods.”
“With more than 30 million members, 7 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences.”
Cash Position As of December 31, 2022, consolidated cash, cash equivalents and restricted cash were $19.4 million. Net cash used in operations was $2.3 million for the three months ended December 31, 2022. Cash was used primarily in connection with a decrease of merchant payables by $6.3 million.
Reserve Reported revenues include a reserve of $1.3 million related to commissions to be earned from vouchers sold. The reserve is booked as contra revenue.
Travelzoo North America North America business segment revenue increased 53% year-over-year to $13.1 million. Operating profit for Q4 2022 was $3.7 million, or 29% of revenue, compared to an operating loss of $2.1 million in the prior-year period.
Travelzoo Europe Europe business segment revenue increased 9% year-over-year to $4.7 million. At constant currencies, Europe business segment revenue increased 23% year-over-year. Operating profit for Q4 2022 was $42,000, compared to an operating loss of $1.7 million in the prior-year period.
Jack’s Flight Club On January 13, 2020, Travelzoo acquired 60% of Jack’s Flight Club, a membership subscription service. Jack’s Flight Club revenue increased 6% year-over-year to $855,000. During Q4 2022, premium subscribers increased 27%. Revenue from increases in subscribers is reported with a lag because we recognize revenue from subscriptions monthly pro rata over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q4 2022 was $220,000, compared to a non-GAAP operating profit of $292,000 in the prior-year period. After consolidation with Travelzoo, Jack’s Flight Club’s net loss was $102,000, with $61,000 attributable to Travelzoo as a result of recording $200,000 of intangible assets impairment and $216,000 of amortization of intangible assets related to the acquisition.
Licensing In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. Travelzoo recorded $7,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q4 2022. Licensing revenue is expected to increase going forward.
Members and Subscribers As of December 31, 2022, we had 30.4 million members worldwide. In North America, the unduplicated number of Travelzoo members was 16.3 million as of December 31, 2022, down 4% from December 31, 2021. In Europe, the unduplicated number of Travelzoo members was 9.0 million as of December 31, 2022, up 8% from December 31, 2021. Jack’s Flight Club had 1.9 million subscribers as of December 31, 2022, up 8% from December 31, 2021.
Discontinued Operations As announced in a press release on March 10, 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations since March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with U.S. GAAP.
Income Taxes Income tax expense was $1.1 million in Q4 2022, compared to an income tax benefit of $333,000 in the prior-year period.
Non-GAAP Financial Measures Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: impairment of intangibles, amortization of intangibles, stock option expenses, and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Looking Ahead For Q1 2023, we currently expect higher revenue and profitability. During the pandemic, we have been able to lower our fixed costs. We believe we can keep our fixed costs relatively low in the foreseeable future.
Conference Call Travelzoo will host a conference call to discuss fourth quarter 2022 results today at 11:30 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to
download the management presentation (PDF format) to be discussed in the conference call
access the webcast.
About Travelzoo Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Travelzoo, Top 20, and Jack’s Flight Club are registered trademarks of Travelzoo.
NEW YORK, December 16, 2022 — Travelzoo® (NASDAQ: TZOO), a global Internet media company that provides exclusive offers and experiences for members, updates its guidance for the current quarter ending December 31, 2022, as follows: For Q4 2022, we expect substantially higher revenue of approx. $18.5 million, up 31% year-over-year.
Travelzoo provides this update to clarify that its revenue trend is different from travel suppliers or online travel agencies. As a media and membership business, Travelzoo is benefiting from demand for travel weakening from the heights of the post-pandemic pent-up demand. Travel suppliers are increasingly in need again to promote their offers to Travelzoo members.
Holger Bartel, Global CEO, said: “We have more and better offers for our members again, and revenue growth is accelerating.”
About Travelzoo Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forwardlooking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Attractive merger. On November 25, 2022, the company entered into a stock purchase agreement with Azzurro Capital Inc, the company’s current largest shareholder. Travelzoo will issue 3.41 million shares in exchange for $10 million and Metaverse Travel Experiences (MTE), a fully owned subsidiary of Azzurro. Following the merger, Azzurro will own slightly more than 50% of the outstanding shares. Assuming shareholder approval, the transaction should close by year end.
Terms of the deal. The $10 million can be paid in a combination of cash and promissory notes, at the election of Azzurro. There must be a minimum of $2 million in cash received at the time of closing. The remaining $8 million would be in secured promissory notes that would be repaid in two installments, March and June of 2023. The structure of the deal should allow Travelzoo to absorb the significant NOLs of the acquired company.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
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.
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Misses Fiscal Q3. Revenues increased a modest 1% to $15.8 million, versus our $18.0 million estimate. On a constant currency basis, revenues increased 6% to $16.7 million. Adj. EBITDA missed our estimate, $1.1 million versus our $2.7 million estimate, largely due to lower than expected gross profit margins, which were over 200 basis points lower than expected.
Business too good? Management indicated that the recent results were impacted by a strong rebound in travel, which increased occupancy rates and at very high prices. As such, travel related businesses did not need to advertise and they were unwilling to provide discounted “deals”. This was a consistent message from the “miss” in the second quarter, as well.
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.
