Friday, July 26, 2024
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.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
In line quarter. Second quarter results were largely in line with our estimates. Q2 revenue of $21.1 million was a touch below our estimate of $22.4 million, and roughly flat with the prior year period. Adj. EBITDA in the quarter was $4.9 million, above our estimate of $4.4 million by roughly 11.0%, as a result of lower marketing expenses and higher gross margin. Gross margins were 88.1%, better than our 86.2% estimate.
A focus on subscribers. The Company introduced an annual $40 paid subscription for its travel deals at the beginning of the calendar year. All of its 30 million legacy members will be introduced to the paid model beginning in 2025. Management plans to add new benefits for the paid membership, although it did not yet identify what those benefits might be.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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