Travelzoo Reports Fourth Quarter 2020 Results
On March 17, 2021, Travelzoo (NASDAQ: TZOO) corrected its financial results for Q4 2020. Consolidated revenue fell 51% year-over-year to $12.5 million, with a net income of $702,000 and EPS of $0.02. North America revenue decreased 45% to $8.9 million, while Europe saw a 71% decline to $2.7 million. Cash flow from operations was $9.2 million. A positive note includes the addition of over 2 million members in March 2021. Analysts expect a trend of revenue recovery with reduced operating expenses for Q1 2021.
- Addition of over 2 million new members in the U.S.
- Cash flow from operations stood at $9.2 million.
- Expectation of recovery in revenue and lower operating expenses for Q1.
- Consolidated revenue decreased by 51% year-over-year to $12.5 million.
- Net income from continuing operations dropped to $173,000 for Q4 2020.
- EPS decreased from $0.15 to $0.02 compared to the prior-year period.
- Europe segment revenue fell 71% year-over-year, resulting in an operating loss.
NEW YORK, March 17, 2021 (GLOBE NEWSWIRE) -- A correction has been issued for the release disseminated today at 8:43 AM ET. Figures for EPS for prior periods have been corrected in the Condensed Consolidated Statements of Operations. The complete and corrected release follows:
Travelzoo® (NASDAQ: TZOO):
- Consolidated revenue of
$12.5 million , down51% from$25.3 million year-over-year - Net income of
$702,000 - Non-GAAP consolidated operating profit of
$547,000 - Earnings per share (EPS) of
$0.02 attributable to Travelzoo from continuing operations - Cash flow from operations of
$9.2 million
Travelzoo, a global Internet media company that publishes exclusive offers and experiences for members, today announced financial results for the fourth quarter ended December 31, 2020. Consolidated revenue was
The reported net income attributable to Travelzoo from continuing operations was
Non-GAAP operating profit was
"We see continued improvement in our business. We are seeing irresistibly priced deals from travel companies, and Travelzoo, as the most trusted media brand publishing and recommending deals, is bringing the very best deals to its members," said Holger Bartel, Global CEO.
"In March 2021, we saw the strongest activity from Travelzoo members in the U.S. since March 2020, as measured by user sessions on the Travelzoo site and app."
Cash Position
As of December 31, 2020, consolidated cash, cash equivalents and restricted cash were
Reserve
Reported revenues include a reserve of
Travelzoo North America
North America business segment revenue decreased
Travelzoo Europe
Europe business segment revenue decreased
Jack’s Flight Club
On January 13, 2020, Travelzoo acquired
Licensing
In June 2020, Travelzoo sold its subsidiary in Japan, Travelzoo Japan K.K., to Mr. Hajime Suzuki. In connection with the sale, Travelzoo and Travelzoo Japan K.K. entered into a royalty-bearing licensing agreement for the exclusive use of Travelzoo members in Japan. In August 2020, Travelzoo sold its Singapore subsidiary to Mr. Julian Rembrandt and entered into a royalty-bearing licensing agreement for, among other things, the exclusive use of Travelzoo's members in Australia, New Zealand, and Singapore. Under the licensing agreements, Travelzoo's existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue from Japan was
Members and Subscribers
As of December 31, 2020, we had 30.2 million members worldwide. In Europe, the unduplicated number of Travelzoo members was 8.7 million as of December 31, 2020, down
Discontinued Operations
As announced in a press release on March 10, 2020, Travelzoo decided to exit its Asia Pacific business which in 2019 reduced EPS by
Income Taxes
Income tax benefit was
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 and goodwill, amortization of intangibles, stock option expenses, 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
We currently see a trend of recovery of our revenue. We have been able to reduce our operating expenses significantly. As a result of recovery of revenue and substantially lower operating expenses, we currently expect to achieve for Q1 a result close to break-even or a profit.
Conference Call
Travelzoo will host a conference call to discuss fourth quarter 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,
- and access the webcast.
About Travelzoo
Travelzoo® provides our 30 million members insider deals and one-of-a-kind experiences personally reviewed by one of our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. For over 20 years we have worked 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 Top 20 are registered trademarks of Travelzoo.
| Travelzoo Condensed Consolidated Statements of Operations | |||||||||||||||
| (Unaudited) | Three months ended | Twelve months ended | |||||||||||||
| (In thousands, except per share amounts) | December 31, | December 31, | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Revenues | $ | 12,483 | $ | 25,326 | $ | 53,601 | $ | 104,925 | |||||||
| Cost of revenues | 2,795 | 3,046 | 10,563 | 11,435 | |||||||||||
| Gross profit | 9,688 | 22,280 | 43,038 | 93,490 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | 6,305 | 12,737 | 30,616 | 51,342 | |||||||||||
| Product development | 495 | 1,853 | 3,081 | 6,709 | |||||||||||
| General and administrative | 3,785 | 4,764 | 20,494 | 18,398 | |||||||||||
| Impairment of intangible asset and goodwill | — | — | 2,920 | — | |||||||||||
| Total operating expenses | 10,585 | 19,354 | 57,111 | 76,449 | |||||||||||
| Operating income (loss) | (897 | ) | 2,926 | (14,073 | ) | 17,041 | |||||||||
| Other income (loss), net | 677 | (90 | ) | 455 | (42 | ) | |||||||||
| Income (loss) from continuing operations before income taxes | (220 | ) | 2,836 | (13,618 | ) | 16,999 | |||||||||
| Income tax expense (benefit) | (368 | ) | 1,116 | (2,438 | ) | 4,712 | |||||||||
| Income (loss) from continuing operations | 148 | 1,720 | (11,180 | ) | 12,287 | ||||||||||
| Income (loss) from discontinued operations, net of tax | 554 | (2,319 | ) | (3,390 | ) | (8,132 | ) | ||||||||
| Net income (loss) | 702 | (599 | ) | (14,570 | ) | 4,155 | |||||||||
| Net income (loss) attributable to non-controlling interest | (25 | ) | — | (1,147 | ) | — | |||||||||
| Net income (loss) attributable to Travelzoo | $ | 727 | $ | (599 |
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FAQ
What were Travelzoo's Q4 2020 revenue and earnings results?
In Q4 2020, Travelzoo reported consolidated revenue of $12.5 million and a net income of $702,000.
How did Travelzoo's EPS change in Q4 2020?
Travelzoo's EPS from continuing operations decreased to $0.02 in Q4 2020, down from $0.15 the previous year.
What was the cash flow from operations for Travelzoo in Q4 2020?
Travelzoo's cash flow from operations was $9.2 million for Q4 2020.
How did Travelzoo perform in North America and Europe?
North America revenue decreased by 45% to $8.9 million, while Europe revenue fell by 71% to $2.7 million in Q4 2020.
What are Travelzoo's future expectations post-Q4 2020?
Travelzoo expects a trend of recovery in revenue and significantly lower operating expenses for Q1 2021.
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