Travelzoo, the club for travel enthusiasts, will host a conference call to discuss the Company's financial results for the first quarter ended March 31, 2025. Travelzoo will issue a press release reporting its results before the market opens on April 29, 2025.HOW: A live webcast of Travelzoo's Q1 2025 earnings conference call can be accessed at http://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. ...

Membership and Revenue Changes - Starting in 2024, new members in the U.S., Canada, U.K., and Germany will incur an annual fee of $40, while existing members will have their fees waived for 2024 [145]. - The introduction of membership fees is expected to impact the ability to acquire new paying members and transition existing members without affecting the overall membership base [158]. - Membership fees increased by $1.3 million, or 30%, from 2023 to 2024, driven by an increase in subscription fees for Travelzoo and Jack's Flight Club [181]. Financial Performance - Total revenues for 2024 were $83.9 million, a decrease of $575,000 or 0.7% from $84.5 million in 2023 [179]. - Advertising revenue decreased by $1.7 million, or 2%, from 2023 to 2024, primarily due to a $2.1 million decrease in revenues from Top 20 [180]. - Operating income increased to $18.5 million in 2024, representing 22.0% of total revenues, up from 18.5% in 2023 [177]. - Net income attributable to Travelzoo increased to 16.2% in 2024 from 14.6% in 2023 [177]. - Travelzoo North America revenues decreased by $988,000, or 1.8%, in 2024, while income from operations increased to 29% of revenues [195]. - Jack's Flight Club revenues increased by $460,000, or 11%, in 2024, attributed to an increase in subscription fees and premium members [198]. Cash Flow and Financial Position - Cash and cash equivalents increased by $1.3 million to $17.7 million as of December 31, 2024, primarily due to cash provided by operating activities [201]. - Net cash provided by operating activities for 2024 was $21.1 million, compared to $10.7 million in 2023 [204]. - Cash used in financing activities for 2024 was $19 million primarily for the repurchase of common stock, compared to $14.2 million in 2023 [207]. - The company has total contractual commitments of $10.68 million as of December 31, 2024, including long-term operating lease commitments of $9.113 million [212]. - The company has contingencies related to net unrecognized tax benefits, including interest, of approximately $25 million as of December 31, 2024 [212]. - Cash paid for income tax, net of refunds received, in 2024 was $1.9 million, while cash received for income tax refunds in 2023 was $1,000 [206]. - The company believes it has sufficient capital resources to meet anticipated working capital and capital expenditure requirements for at least the next twelve months [209]. - The company may need to sell additional equity or debt securities if unanticipated events arise, which could dilute existing stockholders' ownership [210]. Strategic Initiatives and Market Position - Travelzoo reached 30 million travelers, with a significant focus on enhancing user engagement through its various platforms [143]. - The company launched Travelzoo META in May 2023 to expand its offerings into the metaverse, following the acquisition of Metaverse Travel Experiences, Inc. [147]. - Future revenue generation will depend on maintaining and growing the audience for Travelzoo's publications, with a focus on adapting marketing strategies to new member acquisition [163]. - The company anticipates increased costs for acquiring new paying members compared to previous non-paying members, as it tests new acquisition strategies [166]. - Advertising revenues are influenced by factors such as audience reach, advertiser spending, and competition, with potential shifts in revenue streams due to changes in member purchasing behavior [159]. - The company anticipates fluctuations in costs related to revenues, sales and marketing, product development, and general and administrative expenses, which are expected to continue for the foreseeable future [208].

Core Insights - Travelzoo has been ranked number 1 in the "travel deals" category in a consumer survey conducted in Germany by WirtschaftsWoche, indicating strong consumer preference for the company's offerings [1][2] Company Overview - Travelzoo is a club for travel enthusiasts, reaching 30 million travelers and providing Club Offers that are personally reviewed by deal experts globally [3] - The company maintains long-standing partnerships with thousands of top travel suppliers, allowing access to exclusive deals [3] Survey Details - The survey involved 258,449 consumers in Germany who ranked 1,727 companies across 112 categories, showcasing the extensive reach and influence of the study [2]

Financial Data and Key Metrics Changes - Travelzoo's consolidated Q4 revenue was $20.7 million, down 2% from the prior year, while in constant currencies, revenue was $20.6 million [3] - Operating income increased 8% year over year to $4.9 million, representing 24% of revenue, up from $4.5 million in the prior year [4] - EPS was slightly lower compared to last year due to extraordinary income from discontinued operations and unfavorable FX trends impacting EPS negatively [5][6] - The GAAP operating margin was 23% in Q4 2024, with a non-GAAP operating profit of $5 million, or 26% of revenue, compared to $5.2 million in the prior year [10][11] Business Line Data and Key Metrics Changes - Advertising revenue for Q4 2024 was $19.1 million, with revenue per membership increasing to $1.6 million [7] - Membership fee revenue was introduced in 2024, with legacy members exempt during that year, representing over 95% of Travelzoo's reach [8] - Operating profit increased in North America and JAX Flight Club segments but decreased in Europe [6] Market Data and Key Metrics Changes - The company noted fluctuations in Germany as a primary cause for lower revenues in Europe, which they do not view as a trend [6] - The US economy is performing well, with affluent members showing strong interest in luxury travel, while Europe shows more consumer hesitation [32][33] Company Strategy and Development Direction - The company aims to grow the number of paying members by converting legacy members and adding new benefits to enhance membership value [17] - Travelzoo plans to leverage its global reach and strong relationships with travel suppliers to negotiate more exclusive offers for club members [15] - The company is developing Travelzoo Meta in a financially disciplined manner while focusing on growth in JAX Flight Club's subscription revenue [19][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth in Q1 2025, expecting a 5% incremental growth from membership fees [13] - The company is confident in its ability to maintain low fixed costs and increase operating margins with higher revenues [12] - Management acknowledged the political uncertainty in the US but noted that their member base remains affluent and less affected by budget constraints [32] Other Important Information - The company reported a solid cash position of $17.7 million as of December 31, 2024, even after repurchasing shares [12] - Travelzoo is planning to ramp up marketing spend in 2025 to support member acquisition and growth [61] Q&A Session Summary Question: Can you provide details on the added value of the subscription and the experience with legacy member conversions? - The membership is a twelve-month subscription priced at $40 in the US, offering exclusive club offers and special events for members [24][26] - The company has seen a good number of legacy members convert to paying members, with a robust model for acquiring new members [27][28] Question: What are the current trends in travel, particularly between North America and Europe? - The US economy is doing well, with affluent members continuing to engage in luxury travel, while Europe shows more consumer hesitation [32][33] Question: Can you discuss the engagement levels of non-paying members and what encourages them to join? - There has not been much change in the behavior of non-paying members, but the company is on pace to have 50% more paying members by the end of Q1 compared to last year [46] Question: What caused the weakness in Germany, and is it a trend? - The weakness was attributed to several factors, including delayed advertising and political turmoil, but management does not see it as a worrying trend [56] Question: Will the ramping revenues allow for increased growth investments? - The company plans to increase marketing spend in 2025 and is developing Travelzoo Meta with discipline, ensuring rational spending [61][64]

Financial Performance - Consolidated revenue for Q4 2024 was $20.7 million, a decrease of 2% year-over-year[1] - Net income attributable to Travelzoo was $3.2 million for Q4 2024, or $0.26 per share, compared to $0.27 in the prior-year period[2] - Non-GAAP operating profit was $5.3 million for Q4 2024, excluding amortization of intangibles and stock option expenses[3] - Net income for the three months ended December 31, 2024, was $3,264 million, compared to $3,724 million in 2023, representing a decrease of 12.3%[25] - Total net revenues for the twelve months ended December 31, 2024, were $83,902 million, a slight increase from $84,477 million in 2023, reflecting a decrease of 0.7%[29] - Operating profit for the twelve months ended December 31, 2024, was $18,498 million, compared to $15,572 million in 2023, an increase of 18.5%[29] Segment Performance - North America business segment revenue increased by 1% year-over-year to $13.9 million, with an operating profit of $4.6 million, representing 33% of revenue[5] - Europe business segment revenue decreased by 13% year-over-year to $5.4 million, with an operating profit of $159,000, or 3% of revenue[6] - Revenue from Jack's Flight Club increased by 19% year-over-year to $1.3 million, with a non-GAAP operating profit of $208,000[7] - Operating profit for North America segment increased to $15,883 million in 2024 from $15,254 million in 2023, an increase of 4.1%[29] Cash and Assets - Cash position as of December 31, 2024, was $17.7 million, with cash flow from operations of $7.7 million[4] - Total assets decreased from $55,382 million in 2023 to $54,722 million in 2024, a decline of 1.2%[23] - Cash, cash equivalents, and restricted cash at the end of the period increased from $16,389 million in 2023 to $17,723 million in 2024, an increase of 8.2%[25] Liabilities and Earnings - Total current liabilities rose from $34,190 million in 2023 to $36,496 million in 2024, an increase of 6.8%[23] - Retained earnings decreased from $19,508 million in 2023 to $14,284 million in 2024, a decline of 26.9%[23] Expenses - Sales and marketing expenses for the twelve months ended December 31, 2024, totaled $34,465 million, down from $37,774 million in 2023, a decrease of 6.1%[29] - GAAP operating expense for Q4 2024 was $13,083 million, a decrease from $13,972 million in Q4 2023[31] - Non-GAAP operating expense for Q4 2024 was $12,585 million, compared to $13,203 million in Q4 2023, reflecting a reduction of approximately 4.7%[31] - Total GAAP operating expenses for the twelve months ended December 31, 2024, were $54,931 million, down from $57,971 million in the previous year[31] Profitability Metrics - GAAP operating profit increased to $4,834 million in Q4 2024, up from $4,479 million in Q4 2023, representing a growth of 7.9%[31] - Non-GAAP operating profit for Q4 2024 was $5,332 million, slightly higher than $5,248 million in Q4 2023, indicating a year-over-year increase of 1.6%[31] - Non-GAAP operating profit for the twelve months ended December 31, 2024, reached $21,099 million, compared to $18,754 million in the previous year, marking an increase of 12.5%[31] Future Outlook - For Q1 2025, Travelzoo expects revenue to increase at a higher pace, with a 5% incremental growth from membership fees[15] - Travelzoo introduced a membership fee in 2024, with Legacy Members representing over 95% of the company's reach[16] Share Repurchase - During Q4 2024, Travelzoo repurchased 135,792 shares of its outstanding common stock[14] Non-GAAP Adjustments - Non-GAAP adjustments for Q4 2024 totaled $498 million, down from $769 million in Q4 2023[31] - Stock option expenses for the twelve months ended December 31, 2024, were $1,644 million, slightly higher than $1,566 million in the previous year[31] - Severance-related expenses for the twelve months ended December 31, 2024, amounted to $360 million, compared to $56 million in the previous year[31] - Amortization of intangibles for the twelve months ended December 31, 2024, was $593 million, down from $1,560 million in the previous year[31]

Fourth Quarter 2024 Performance February 25, 2025 Important Notice to Investors Please read this management presentation together with the Company's press release issued earlier today announcing the Company's fourth quarter 2024 financial results and in conjunction with the Company's recent Annual Report and Quarterly Reports as filed with the Securities and Exchange Commission (SEC). Certain statements contained in this presentation that are not historical facts may be forward looking statements within the ...

Travelzoo (TZOO) came out with quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -16.13%. A quarter ago, it was expected that this global media commerce company would post earnings of $0.20 per share when it actually produced earnings of $0.26, delivering a surprise of 30%.Over the last four quarters ...

Financial Performance - Travelzoo reported consolidated revenue of $20.7 million for Q4 2024, a decrease of 2% year-over-year [1] - Net income attributable to Travelzoo was $3.2 million, or $0.26 per share, compared to $0.27 in the prior-year period [2] - Non-GAAP operating profit was $5.3 million, excluding amortization of intangibles and stock option expenses [3] Business Segments - North America segment revenue increased by 1% year-over-year to $13.9 million, with an operating profit of $4.6 million, representing 33% of revenue [5] - Europe segment revenue decreased by 13% year-over-year to $5.4 million, with an operating profit of $159,000, or 3% of revenue [6] - Jack's Flight Club, in which Travelzoo holds a 60% interest, saw revenue increase by 19% year-over-year to $1.3 million [7] Cash Position and Operations - As of December 31, 2024, consolidated cash and cash equivalents were $17.7 million, with net cash provided by operations at $7.7 million [4] - A provision of $1.5 million for income taxes was recorded for Q4 2024, compared to $1.6 million in the prior-year period [12] Future Outlook - For Q1 2025, Travelzoo expects revenue to increase at a higher pace, with membership fee revenue contributing to incremental growth [14] - The company anticipates substantially higher revenue growth for the whole year, driven by recurring membership fee revenue [15] Membership and Reach - Travelzoo reaches 30 million travelers, including members of Jack's Flight Club [10] - In 2024, Travelzoo introduced a membership fee, with Legacy Members exempt during the year, representing over 95% of Travelzoo's reach [16]

Core Viewpoint - Travelzoo (TZOO) is expected to report slower revenue growth in Q4 2024 compared to 2023, with a Zacks Consensus Estimate for revenues at $22.06 million, reflecting a 4.3% year-over-year increase [1][2] Revenue and Earnings Estimates - The earnings estimate is set at 31 cents per share, indicating a 29.17% year-over-year growth, remaining unchanged over the past 30 days [2] - The company delivered a 30% earnings surprise in the last reported quarter, beating the Zacks Consensus Estimate in three of the last four quarters, with an average positive surprise of 11.71% [4] Factors Impacting Performance - North American revenues declined by 4% year over year to $12.8 million in Q3 2024 due to postponed advertiser spending and website launch delays, although management expects normalization in Q4 [7] - Competition from major players like Expedia and Booking.com, as well as specialized platforms, poses significant challenges to Travelzoo's market position [8] Regional Performance - European operations showed resilience with a 1% revenue increase and a significant margin improvement to 17% in Q3, which may support overall results in Q4 [9][10] Membership Fee Model Transition - The transition to a membership fee model presents both opportunities and risks, with management expecting substantial revenue growth in 2025, but early conversion indicators will be crucial [11] Profitability and Cash Flow - Travelzoo maintained a strong operating margin of 20% in Q3 and generated an operating cash flow of $5.3 million, indicating healthy profitability [12] Stock Performance and Valuation - Travelzoo's stock surged 122.2% over the past year, outperforming the broader Zacks Retail-Wholesale sector, which returned 23.9% [13] - The forward P/E ratio of 12.5 suggests the market may undervalue the company's growth potential compared to the Zacks Internet - Commerce industry's 23.98 [16] Investment Considerations - Investors are advised to maintain a Hold position or wait for a better entry point due to mixed near-term outlook, despite the company's strengths in European operations and Jack's Flight Club growth [19] - The execution risks associated with the membership fee strategy and competitive pressures in the online travel space warrant careful consideration before making investment decisions [20]

Core Viewpoint - Travelzoo will host a conference call to discuss its financial results for Q4 2024, with a press release to be issued before the market opens on February 25, 2025 [1] Group 1 - The conference call will provide insights into Travelzoo's financial performance for the fourth quarter ended December 31, 2024 [1] - A live webcast of the earnings conference call will be accessible online, and it will be archived for later viewing [1]