Travelzoo Reports Third Quarter 2024 Results
Travelzoo (TZOO) reported Q3 2024 financial results with revenue of $20.1 million, down 2% year-over-year. The company achieved a consolidated operating profit of $4.0 million and non-GAAP operating profit of $4.9 million. Net income was $3.2 million, or $0.26 per share, compared to $0.16 in the prior year. North America revenue decreased 4% to $12.8 million, while Europe revenue increased 1% to $6.1 million. The company maintained a strong cash position with $12.1 million in cash and equivalents, generating $5.3 million in operating cash flow.
Travelzoo (TZOO) ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato di 20,1 milioni di dollari, in calo del 2% rispetto all'anno precedente. L'azienda ha raggiunto un utile operativo consolidato di 4,0 milioni di dollari e un utile operativo non-GAAP di 4,9 milioni di dollari. Il reddito netto è stato di 3,2 milioni di dollari, ovvero 0,26 dollari per azione, rispetto a 0,16 dollari dell'anno precedente. I ricavi in Nord America sono diminuiti del 4% a 12,8 milioni di dollari, mentre i ricavi in Europa sono aumentati dell'1% a 6,1 milioni di dollari. L'azienda ha mantenuto una solida posizione di liquidità con 12,1 milioni di dollari in contante e equivalenti, generando 5,3 milioni di dollari in flusso di cassa operativo.
Travelzoo (TZOO) reportó los resultados financieros del tercer trimestre de 2024 con ingresos de 20,1 millones de dólares, un descenso del 2% interanual. La compañía alcanzó una utilidad operativa consolidada de 4,0 millones de dólares y una utilidad operativa no GAAP de 4,9 millones de dólares. El ingreso neto fue de 3,2 millones de dólares, o 0,26 dólares por acción, en comparación con 0,16 dólares del año anterior. Los ingresos de América del Norte disminuyeron un 4% a 12,8 millones de dólares, mientras que los ingresos de Europa aumentaron un 1% a 6,1 millones de dólares. La empresa mantuvo una sólida posición de efectivo con 12,1 millones de dólares en efectivo y equivalentes, generando 5,3 millones de dólares en flujo de efectivo operativo.
Travelzoo (TZOO)는 2024년 3분기 재무 결과를 발표했으며, 매출은 2010만 달러로, 전년 대비 2% 감소했습니다. 회사는 400만 달러의 consolidated operating profit과 490만 달러의 비GAAP 운영 이익을 달성했습니다. 순이익은 320만 달러, 즉 주당 0.26 달러로, 이전 해의 0.16 달러와 비교됩니다. 북미 지역의 매출은 4% 감소하여 1280만 달러로, 유럽 지역의 매출은 1% 증가하여 610만 달러에 이릅니다. 회사는 현금 및 현금성 자산으로 1210만 달러를 보유하고 있으며, 530만 달러의 운영 현금 흐름을 생성했습니다.
Travelzoo (TZOO) a annoncé les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires de 20,1 millions de dollars, en baisse de 2% par rapport à l'année précédente. L'entreprise a réalisé un bénéfice d'exploitation consolidé de 4,0 millions de dollars et un bénéfice d'exploitation non-GAAP de 4,9 millions de dollars. Le revenu net s'élevait à 3,2 millions de dollars, soit 0,26 dollar par action, contre 0,16 dollar l'année précédente. Les revenus en Amérique du Nord ont diminué de 4% à 12,8 millions de dollars, tandis que les revenus en Europe ont augmenté de 1% à 6,1 millions de dollars. L'entreprise a maintenu une solide position de trésorerie avec 12,1 millions de dollars en liquidités et équivalents, générant 5,3 millions de dollars de flux de trésorerie d'exploitation.
Travelzoo (TZOO) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem Umsatz von 20,1 Millionen Dollar, was einem Rückgang von 2% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte einen konsolidierten Betriebsgewinn von 4,0 Millionen Dollar und einen Non-GAAP-Betriebsgewinn von 4,9 Millionen Dollar. Der Nettogewinn betrug 3,2 Millionen Dollar, oder 0,26 Dollar pro Aktie, verglichen mit 0,16 Dollar im Vorjahr. Der Umsatz in Nordamerika sank um 4% auf 12,8 Millionen Dollar, während der Umsatz in Europa um 1% auf 6,1 Millionen Dollar stieg. Das Unternehmen hat eine starke Liquidität mit 12,1 Millionen Dollar in Bargeld und gleichwertigen Mitteln beibehalten und generierte 5,3 Millionen Dollar an operativem Cashflow.
- EPS increased 62.5% YoY from $0.16 to $0.26
- Operating profit in Europe improved significantly to $1.0 million from $267,000
- Jack's Flight Club premium subscribers increased 14% YoY
- Strong cash flow from operations of $5.3 million
- Company expects higher profitability in Q4 2024 YoY and QoQ
- Revenue declined 2% YoY to $20.1 million
- North America revenue decreased 4% YoY to $12.8 million
- New Initiatives segment reported operating loss of $160,000
Insights
Travelzoo's Q3 2024 results show mixed performance with some concerning trends but also positive developments. The
The company's strategic shift toward a membership fee model starting 2024 is significant, though meaningful revenue impact won't materialize until 2025 as legacy members are exempt for 2024. Strong cash flow generation of
The membership metrics and strategic positioning reveal important market dynamics. The 30.1 million global members represent a substantial base for monetization, particularly with increasing member activity levels. Jack's Flight Club's
The transition to a paid membership structure in 2024 marks a pivotal shift in Travelzoo's business model. While protecting the existing member base by grandfathering them through 2024 may limit short-term gains, it could help maintain member loyalty while gradually building a recurring revenue stream from new members.
- Revenue of
, down$20.1 million 2% year-over-year - Consolidated operating profit of
$4.0 million - Non-GAAP consolidated operating profit of
$4.9 million - Cash flow from operations of
$5.3 million - Earnings per share (EPS) of
$0.26
Travelzoo, the club for travel enthusiasts, today announced financial results for the third quarter ended September 30, 2024. Consolidated revenue was
Net income attributable to Travelzoo was
Non-GAAP operating profit was
"We will continue to leverage Travelzoo's global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more Club Offers for members," said Holger Bartel, Travelzoo's Global CEO. "Travelzoo members are affluent, active, and open to new experiences. We inspire members to travel to places they never imagined they could. Travelzoo is the must-have membership for those who love to travel as much as we do."
Cash Position
As of September 30, 2024, consolidated cash, cash equivalents and restricted cash were
Travelzoo North America
Travelzoo Europe
Jack's Flight Club
Jack's Flight Club is a membership subscription service in which Travelzoo has a
New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was
In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in
Members and Subscribers
As of September 30, 2024, we had 30.1 million members and subscribers worldwide. In
Discontinued Operations
In March 2020, Travelzoo decided to exit its
Income Taxes
A provision of
Share Repurchase Program
During Q3 2024, the Company repurchased 552,679 shares of its outstanding common stock.
Looking Ahead
For Q4 2024, we expect growth in revenue year-over-year, albeit at a smaller pace than in 2023. However, there could be unexpected fluctuations. We also expect for Q4 2024 higher profitability year-over-year and quarter-over-quarter. For 2025, we expect substantial growth in revenue as a result of additional revenue from membership fees.
In December 2023, we announced the introduction of a membership fee for Travelzoo beginning January 1, 2024. We recognize membership fee revenue ratably over the subscription period. Legacy Travelzoo members as of December 31, 2023, which represent more than
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
Conference Call
Travelzoo will host a conference call to discuss third quarter 2024 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
We, Travelzoo®, are the club for travel enthusiasts. Our 30 million members receive 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
590 Madison Avenue
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Investor Relations:
ir@travelzoo.com
Travelzoo | |||||||
Three months ended | Nine months ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues | $ 20,098 | $ 20,599 | $ 63,224 | $ 63,328 | |||
Cost of revenues | 2,548 | 2,665 | 7,708 | 8,236 | |||
Gross profit | 17,550 | 17,934 | 55,516 | 55,092 | |||
Operating expenses: | |||||||
Sales and marketing | 8,247 | 9,840 | 26,231 | 29,278 | |||
Product development | 594 | 525 | 1,763 | 1,533 | |||
General and administrative | 4,664 | 4,460 | 13,875 | 13,188 | |||
Total operating expenses | 13,505 | 14,825 | 41,869 | 43,999 | |||
Operating income | 4,045 | 3,109 | 13,647 | 11,093 | |||
Other income, net | 359 | 314 | 674 | 1,143 | |||
Income from continuing operations before income taxes | 4,404 | 3,423 | 14,321 | 12,236 | |||
Income tax expense | 1,148 | 1,018 | 3,920 | 3,487 | |||
Income from continuing operations | 3,256 | 2,405 | 10,401 | 8,749 | |||
Loss from discontinued operations, net of tax | — | (5) | — | (5) | |||
Net income | 3,256 | 2,400 | 10,401 | 8,744 | |||
Net income attributable to non-controlling interest | 72 | 52 | 54 | 97 | |||
Net income attributable to Travelzoo | $ 3,184 | $ 2,348 | $ 10,347 | $ 8,647 | |||
Net income attributable to Travelzoo—continuing operations | $ 3,184 | $ 2,353 | $ 10,347 | $ 8,652 | |||
Net loss attributable to Travelzoo—discontinued operations | $ — | $ (5) | $ — | $ (5) | |||
Income per share—basic | |||||||
Continuing operations | $ 0.26 | $ 0.16 | $ 0.81 | $ 0.57 | |||
Discontinued operations | $ — | $ — | $ — | $ — | |||
Net income per share—basic | $ 0.26 | $ 0.16 | $ 0.81 | $ 0.57 | |||
Income per share—diluted | |||||||
Continuing operations | $ 0.26 | $ 0.16 | $ 0.79 | $ 0.57 | |||
Discontinued operations | $ — | $ — | $ — | $ — | |||
Net income per share—diluted | $ 0.26 | $ 0.16 | $ 0.79 | $ 0.56 | |||
Shares used in per share calculation from continuing operations—basic | 12,176 | 14,769 | 12,851 | 15,242 | |||
Shares used in per share calculation from discontinued operations—basic | 12,176 | 14,769 | 12,851 | 15,242 | |||
Shares used in per share calculation from continuing operations—diluted | 12,386 | 14,821 | 13,035 | 15,307 | |||
Shares used in per share calculation from discontinued operations—diluted | 12,386 | 14,821 | 13,035 | 15,307 |
Travelzoo | |||
September 30, | December 31, | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 11,429 | $ 15,713 | |
Accounts receivable, net | 13,167 | 12,965 | |
Prepaid income taxes | 1,132 | 629 | |
Prepaid expenses and other | 1,619 | 1,461 | |
Total current assets | 27,347 | 30,768 | |
Deposits and other | 230 | 1,115 | |
Deferred tax assets | 3,193 | 3,196 | |
Restricted cash | 675 | 675 | |
Operating lease right-of-use assets | 6,080 | 6,015 | |
Property and equipment, net | 470 | 578 | |
Intangible assets, net | 1,591 | 2,091 | |
Goodwill | 10,944 | 10,944 | |
Total assets | $ 50,530 | $ 55,382 | |
Liabilities and Equity | |||
Current liabilities: | |||
Accounts payable | $ 4,984 | $ 4,546 | |
Merchant payables | 17,321 | 20,622 | |
Accrued expenses and other | 4,124 | 3,658 | |
Deferred revenue | 3,854 | 2,044 | |
Income tax payable | 1,450 | 766 | |
Operating lease liabilities | 2,624 | 2,530 | |
Liabilities from discontinued operations | 24 | 24 | |
Total current liabilities | 34,381 | 34,190 | |
Long-term tax liabilities | 7,028 | 4,681 | |
Long-term operating lease liabilities | 6,225 | 6,717 | |
Other long-term liabilities | 376 | 911 | |
Total liabilities | 48,010 | 46,499 | |
Common stock | 119 | 136 | |
Tax indemnification | (9,537) | (9,537) | |
Note receivable and account receivable from shareholder | (1,929) | (1,753) | |
Additional paid-in capital | — | 439 | |
Retained earnings | 14,195 | 19,508 | |
Accumulated other comprehensive loss | (5,079) | (4,607) | |
Total Travelzoo stockholders' equity (deficit) | (2,231) | 4,186 | |
Non-controlling interest | 4,751 | 4,697 | |
Total stockholder's equity | 2,520 | 8,883 | |
Total liabilities and Equity | $ 50,530 | $ 55,382 |
Travelzoo | |||||||
Three months ended | Nine months ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Cash flows from operating activities: | |||||||
Net income | $ 3,256 | $ 2,400 | $ 10,401 | $ 8,744 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 179 | 472 | 737 | 1,417 | |||
Stock-based compensation | 457 | 359 | 1,240 | 1,187 | |||
Deferred income tax | (12) | (73) | (39) | (111) | |||
Loss on long-lived assets | — | — | — | 10 | |||
Net foreign currency effects | (154) | 86 | (165) | 53 | |||
Provision of loss (net recoveries) on accounts receivable and refund reserves | 128 | (115) | 121 | (944) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 127 | (571) | (258) | 3,317 | |||
Prepaid income taxes | (134) | 111 | (461) | 1,128 | |||
Prepaid expenses, deposits and other | (69) | (253) | 464 | 2,232 | |||
Accounts payable | (284) | 689 | 430 | (1,704) | |||
Merchant payables | 431 | (153) | (3,348) | (8,757) | |||
Accrued expenses and other | 463 | 197 | 2,162 | 574 | |||
Income tax payable | 315 | 59 | 593 | 293 | |||
Other liabilities | 628 | 435 | 1,381 | 1,854 | |||
Net cash provided by operating activities | 5,331 | 3,643 | 13,258 | 9,293 | |||
Cash flows from investing activities: | |||||||
Proceeds from repayment of note receivable | — | — | — | 113 | |||
Purchases of property and equipment | (46) | (60) | (129) | (217) | |||
Net cash used in investing activities | (46) | (60) | (129) | (104) | |||
Cash flows from financing activities: | |||||||
Repurchase of common stock | (6,183) | (6,896) | (16,605) | (11,766) | |||
Exercise of stock options and taxes paid for net share settlement of equity awards | (335) | — | (592) | (299) | |||
Net cash used in financing activities | (6,518) | (6,896) | (17,197) | (12,065) | |||
Effect of exchange rate on cash, cash equivalents and restricted cash | 96 | (302) | (215) | 80 | |||
Net decrease in cash, cash equivalents and restricted cash | (1,137) | (3,615) | (4,283) | (2,796) | |||
Cash, cash equivalents and restricted cash at beginning of period | 13,243 | 20,197 | 16,389 | 19,378 | |||
Cash, cash equivalents and restricted cash at end of period | $ 12,106 | $ 16,582 | $ 12,106 | $ 16,582 |
Travelzoo | |||||||||
Three months ended September 30, 2024 | Travelzoo North America | Travelzoo | Jack's | New | Consolidated | ||||
Revenues from unaffiliated customers | $ 12,846 | $ 6,021 | $ 1,198 | $ 33 | $ 20,098 | ||||
Intersegment revenues | (24) | 34 | (10) | — | — | ||||
Total net revenues | 12,822 | 6,055 | 1,188 | 33 | 20,098 | ||||
Operating profit (loss) | $ 3,150 | $ 1,028 | $ 27 | $ (160) | $ 4,045 | ||||
Three months ended September 30, 2023 | Travelzoo North America | Travelzoo | Jack's | New | Consolidated | ||||
Revenues from unaffiliated customers | $ 13,094 | $ 6,397 | $ 1,080 | $ 28 | $ 20,599 | ||||
Intersegment revenues | 314 | (414) | 100 | — | — | ||||
Total net revenues | 13,408 | 5,983 | 1,180 | 28 | 20,599 | ||||
Operating profit (loss) | $ 3,015 | $ 267 | $ 144 | $ (317) | $ 3,109 | ||||
Nine months ended September 30, 2024 | Travelzoo North America | Travelzoo | Jack's | New | Consolidated | ||||
Revenues from unaffiliated customers | $ 41,134 | $ 18,605 | $ 3,397 | $ 88 | $ 63,224 | ||||
Intersegment revenues | 50 | 63 | (113) | — | — | ||||
Total net revenues | 41,184 | 18,668 | 3,284 | 88 | 63,224 | ||||
Operating profit (loss) | $ 11,305 | $ 2,922 | $ (106) | $ (474) | $ 13,647 | ||||
Nine months ended September 30, 2023 | Travelzoo North America | Travelzoo | Jack's | New | Consolidated | ||||
Revenues from unaffiliated customers | $ 41,303 | $ 18,937 | $ 3,039 | $ 49 | $ 63,328 | ||||
Intersegment revenues | 996 | (1,180) | 184 | — | — | ||||
Total net revenues | 42,299 | 17,757 | 3,223 | 49 | 63,328 | ||||
Operating profit (loss) | $ 11,284 | $ 485 | $ 196 | $ (872) | $ 11,093 |
Travelzoo | |||||||
Three months ended | Nine months ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
GAAP operating expense | $ 13,505 | $ 14,825 | $ 41,869 | $ 43,999 | |||
Non-GAAP adjustments: | |||||||
Amortization of intangibles (A) | 95 | 384 | 500 | 1,171 | |||
Stock option expenses (B) | 456 | 359 | 1,239 | 1,186 | |||
Severance-related expenses (C) | 330 | — | 360 | 95 | |||
Non-GAAP operating expense | 12,624 | 14,082 | 39,770 | 41,547 | |||
GAAP operating profit | 4,045 | 3,109 | 13,647 | 11,093 | |||
Non-GAAP adjustments (A through C) | 881 | 743 | 2,099 | 2,452 | |||
Non-GAAP operating profit | 4,926 | 3,852 | 15,746 | 13,545 |
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SOURCE Travelzoo
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