Travelzoo (TZOO) Set to Announce Earnings on Thursday

 Travelzoo (TZOO) Set to Announce Earnings on Thursday.

Travelzoo (NASDAQ: TZOO – Get Free Report) is set to release its quarterly earnings results before the market opens on Thursday, July 25th. Analysts anticipate that Travelzoo will report earnings of $0.19 per share for this quarter. Investors who wish to register for the company’s conference call can do so via this link.

Travelzoo (NASDAQ: TZOO – Get Free Report) is scheduled to announce its quarterly earnings results before the market opens on Thursday, July 25th. Analysts expect Travelzoo to report earnings of $0.19 per share for this quarter. Investors interested in registering for the company's conference call can do so via this link.

Travelzoo Stock Rises by 5.2%

Shares of NASDAQ TZOO opened at $8.90 on Tuesday, marking a 5.2% increase. The stock’s 50-day moving average price is $7.93, while the 200-day moving average price is $8.75. Travelzoo has seen a 52-week low of $4.77 and a 52-week high of $11.23. The company’s market capitalization stands at $116.59 million, with a P/E ratio of 9.78 and a beta of 1.74.

Insider Transactions at Travelzoo

In recent news, major shareholder Azzurro Capital Inc sold 20,000 shares of Travelzoo stock on Monday, May 20th, at an average price of $8.51, totalling $170,200.00. Following this sale, Azzurro Capital Inc holds 5,179,871 shares valued at approximately $44,080,702.21. Over the past ninety days, insiders have sold 82,500 shares worth $653,225. Currently, company insiders own 57.45% of Travelzoo’s stock.

Analyst Ratings and Recommendations

Several analysts have recently weighed in on TZOO shares. Barrington Research reaffirmed an “outperform” rating with a $12.00 price target for Travelzoo in a report on Monday, July 15th. Additionally, StockNews.com upgraded Travelzoo from a “buy” rating to a “strong-buy” rating in a research report on Thursday, June 27th.

About Travelzoo

Travelzoo, alongside its subsidiaries, operates as an Internet media company, providing travel, entertainment, and local experiences globally. The company is divided into four segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives. Travelzoo’s offerings include the Travelzoo website, Travelzoo Top 20 email newsletters, standalone email newsletters, Travelzoo Network, Travelzoo mobile applications, Jack's Flight Club website, Jack's Flight Club mobile applications, and Jack's Flight Club newsletters.

Travelzoo, the premier club for travel aficionados, has released its financial results for the first quarter ending March 31, 2024. The company reported a consolidated revenue of $22.0 million, reflecting a 2% increase from $21.6 million in the same period last year. On a constant currency basis, revenue reached $21.8 million, marking a 1% year-over-year rise. This revenue primarily comes from advertising, commissions from Travelzoo member purchases, and membership fees.

Travelzoo's net income attributable to the company for Q1 2024 was $4.2 million, or $0.31 per share, up from $0.23 per share in the previous year. Net income from continuing operations also stood at $4.2 million, or $0.31 per share, compared to $0.23 per share a year earlier.

The non-GAAP operating profit was reported at $6.0 million, excluding amortisation of intangibles ($0.3 million) and stock option expenses ($95,000). Details of these adjustments can be found in the "Non-GAAP Financial Measures" section and the accompanying reconciliation table.

Holger Bartel, Travelzoo's Global CEO, commented, "We will continue to leverage Travelzoo's global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for members. Travelzoo’s value becomes most evident when travel prices soar, as we provide high-quality travel experiences that offer exceptional value."

With over 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo remains a favourite among affluent, active travellers open to new experiences.

Cash Position

As of March 31, 2024, Travelzoo held $16.9 million in consolidated cash, cash equivalents, and restricted cash. Net cash generated from operations was $4.6 million.

Travelzoo North America

Revenue for Travelzoo’s North American segment decreased by 4% year-over-year to $14.2 million. The operating profit for Q1 2024 was $4.4 million, or 31% of revenue, compared to $4.5 million in the prior year.

Travelzoo Europe

In Europe, revenue increased by 13% year-over-year to $6.7 million. Adjusted for constant currencies, the revenue growth was 10%. The operating profit for Q1 2024 was $1.4 million, or 21% of revenue, up from $457,000 in the previous year.

Jack's Flight Club

Travelzoo holds a 60% stake in Jack's Flight Club, a membership subscription service. Revenue from non-affiliated customers rose by 16% year-over-year to $1.1 million, with a 11% increase in premium subscribers. The non-GAAP operating loss for Q1 2024 was $24,000, a decrease from a $123,000 operating profit in the prior year, primarily due to increased marketing expenses related to member growth.

New Initiatives

Revenue from the New Initiatives segment, which includes Licensing and Travelzoo META, was $32,000. The operating loss for Q1 2024 was $130,000.

Travelzoo entered into royalty-bearing licensing agreements in June and August 2020 with local licensees in Japan and Australia, respectively. For Q1 2024, Travelzoo recorded $7,000 in licensing revenue from Japan and $10,000 from Australia, New Zealand, and Singapore. Licensing revenue is expected to grow in the future.

Members and Subscribers

As of March 31, 2024, Travelzoo’s global membership stood at 31.0 million, up from 30.5 million a year earlier. In North America, membership slightly decreased to 16.2 million, while in Europe, it grew to 9.2 million. Jack's Flight Club’s subscribers increased to 2.4 million.

Discontinued Operations

Travelzoo has exited its Asia Pacific business, which is now classified as discontinued operations.

Income Taxes

For Q1 2024, Travelzoo recorded an income tax provision of $1.5 million, compared to $1.4 million in the previous year. The company plans to use net operating losses (NOLs) to offset most of its tax liability for the quarter.

Looking Ahead

Travelzoo anticipates continued revenue growth in Q2 2024, though at a slower pace than 2023, along with higher profitability. A new membership fee, introduced in December 2023, will be applicable from January 2024. Legacy members from December 31, 2023, are exempt from this fee for 2024, with associated revenue expected to begin in 2025.

Non-GAAP Financial Measures

Travelzoo calculates non-GAAP operating income by excluding items such as impairment of intangible assets, amortisation of intangibles, stock option expenses, and severance-related costs. This non-GAAP measure is presented in addition to, and should not be considered a substitute for, GAAP financial measures. A reconciliation of GAAP to non-GAAP operating income is provided in the accompanying table.

Conference Call

Travelzoo will host a conference call to discuss its Q1 2024 results today at 11:00 a.m. ET. For more details, visit Travelzoo’s investor relations page to download the management presentation (PDF format) and access the webcast.

About Travelzoo

Travelzoo® is the go-to club for travel enthusiasts, offering 30 million members exclusive deals and unique experiences reviewed by global deal experts. With partnerships with over 5,000 top travel suppliers, Travelzoo provides access to exceptional travel, entertainment, and lifestyle offers.

Forward-Looking Statements

This press release includes forward-looking statements as defined under applicable securities laws. These statements involve risks and uncertainties and may not reflect actual results. Travelzoo undertakes no obligation to update these statements based on new information or future events.