Travelzoo (NASDAQ:TZOO) Q1 2024 Earnings Conference Call April 24, 2024 11:00 AM ET Company Participants Lijun Qi - Principal Accounting Officer Holger Bartel - Global Chief Executive Officer Christina Ciocca - General Counsel & Head of Global Functions Conference Call Participants Michael Kupinski - Noble Capital Markets James Goss - Barrington Research Steve Silver - Argus Research Ed Woo - Ascendiant Capital Operator Thank you for standing by. My name is Krista, and I will be your conference operator tod ...

Important Notice to Investors Part 1: First Quarter 2024 Performance TRAVELZOO Members Millions First Quarter 2024 Performance Certain statements contained in this presentation that are not historical facts may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These forward looking statements may include, but are not limited to, statements about our plans, objectives, expectations ...

Revenue Breakdown - Travelzoo's North America operations accounted for 66% of total revenues, while Europe contributed 29% and Jack's Flight Club made up 5% for the year ended December 31, 2023[160]. - Total revenues increased by $13.9 million, or 19.7%, from $70.6 million in 2022 to $84.5 million in 2023[194]. - Travelzoo North America revenues rose by $8.4 million, or 17.7%, primarily due to a $9.0 million increase in Travel revenues[195]. - Travelzoo Europe revenues increased by $4.6 million, or 23.5%, driven by a $4.1 million rise in Travel revenues[196]. - Jack's Flight Club revenues grew by $695,000, or 20.0%, due to an increase in premium members[197]. Licensing and Membership - The company recognized $71,000 in royalties from licensing agreements in 2023, up from $25,000 in 2022, indicating a significant increase in licensing revenue[155]. - The licensing agreement for Australia, New Zealand, and Singapore generated royalties of $35,000 in 2023, an increase from $25,000 in 2022[158]. - Travelzoo plans to introduce an annual membership fee of $40 for new members starting in 2024, with existing members exempt for that year[154]. - Travelzoo META was launched in May 2023, offering a paid membership service that includes access to metaverse travel experiences and NFTs[156]. - Travelzoo's ability to generate future revenues is heavily dependent on member engagement and the effectiveness of new user acquisition strategies following the introduction of membership fees[176]. Financial Performance - North America revenues increased by $8.4 million, or 17.7%, in 2023, with income from operations as a percentage of revenues rising to 27% from 22%[212]. - Europe revenues increased by $4.6 million, or 23.5%, in 2023, with a turnaround in operations from a loss of $1.8 million in 2022 to a profit of $1.3 million[213]. - Jack's Flight Club revenues rose by $695,000, or 20.0%, in 2023, despite a loss from operations of $23,000[216]. - Other income decreased by $860,000, or 35.8%, in 2023, primarily due to a $1.5 million reduction in German federal government funding for COVID pandemic relief[209]. - Income tax expense was $5.1 million in 2023, up from $3.3 million in 2022, with an effective tax rate of 30% in 2023 compared to 33% in 2022[210][211]. Expenses and Costs - Sales and marketing expenses increased by $4.7 million, or 14.2%, but as a percentage of revenues, they declined from 46.8% in 2022 to 44.7% in 2023[203]. - Cost of revenues decreased as a percentage of revenues from 14.2% in 2022 to 12.9% in 2023, despite an increase in total cost from $10.0 million to $10.9 million[201]. - Product development expenses remained stable at $2.1 million for both years, with a slight decrease in percentage from 2.9% in 2022 to 2.4% in 2023[205]. - General and administrative expenses increased slightly from $17.9 million in 2022 to $18.1 million in 2023[206]. - General and administrative expenses increased by $181,000, or 1.1%, in 2023 compared to 2022, mainly due to a $942,000 rise in travel-related expenses[207]. Cash Flow and Assets - Cash and cash equivalents decreased by $3.0 million to $16.4 million as of December 31, 2023, primarily due to $16.8 million used for stock repurchases[219]. - Net cash provided by operating activities was $10.7 million in 2023, a significant recovery from a net cash used of $23.1 million in 2022[221]. - Total operating lease commitments amounted to $10.7 million as of December 31, 2023, with additional contingencies related to net unrecognized tax benefits of approximately $24.7 million[234]. - The company anticipates that cash on hand will be sufficient to cover operational costs for at least the next twelve months, while also evaluating potential investments[229]. Tax and Accounting - The company utilizes the asset and liability method for accounting for income taxes, recognizing deferred tax assets and liabilities based on future tax consequences[236]. - Deferred tax assets are recognized for deductible temporary differences and net operating loss carryforwards if it is more likely than not that the tax benefits will be realized[236]. - The company records liabilities for uncertain tax positions taken in previously filed tax returns, adjusting reserves based on changing facts and circumstances[237]. - The provision for income taxes includes the impact of reserve provisions and changes to reserves, as well as related net interest[237]. - Significant judgment is required in evaluating uncertain tax positions, which may materially impact financial condition or results of operations[237]. - The company establishes valuation allowances for deferred tax assets that cannot be recognized under certain criteria[236]. - Recent accounting pronouncements are discussed in the notes to consolidated financial statements[238]. - The company is not required to disclose quantitative and qualitative information about market risk as it is classified as a smaller reporting company[239]. Vouchers and Refunds - As of December 31, 2023, Travelzoo had approximately $5.2 million in unredeemed vouchers, down from $8.1 million in 2022, reflecting a decrease in unredeemed sales[165]. - The company recorded a refund reserve of $268,000 for unredeemed vouchers as of December 31, 2023, compared to $1.3 million in 2022, showing improved management of refund liabilities[165].

Exhibit 99.1 Travelzoo 590 Madison Avenue 35th Floor New York, NY 10022 Investor Relations: ir@travelzoo.com FOR IMMEDIATE RELEASE Travelzoo Reports Fourth Quarter 2023 Results NEW YORK, February 28, 2024 — Travelzoo® (NASDAQ: TZOO): Travelzoo, the club for travel enthusiasts, today announced financial results for the fourth quarter ended December 31, 2023. Consolidated revenue was $21.1 million, up 14% from $18.6 million year-over-year. In constant currencies, revenue was $20.8 million, up 12% year-over-ye ...

Travelzoo (NASDAQ:TZOO) Q4 2023 Results Conference Call February 28, 2024 11:00 AM ET Company Participants Holger Bartel - Global Chief Executive Officer Christina Ciocca - Chair, General Counsel, Head of Global Functions Lijun Qi - Finance Director and Principal Accounting Officer Conference Call Participants Michael Kupinski - NOBLE Capital Jim Goss - Barrington Research Steve Silver - Argus Research Ed Woo - Ascendiant Operator Hello, everyone. Welcome to the Travelzoo Fourth Quarter 2023 Financial Resul ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________ Form 10-Q ______________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period f ...

Travelzoo (NASDAQ:TZOO) Q3 2023 Earnings Conference Call October 24, 2023 11:00 AM ET Company Participants Holger Bartel - Global Chief Executive Officer Lijun Qi - Finance Director and Principal Accounting Officer Arveena Ahluwalia - Global Director of META Conference Call Participants Michael Kupinski - Noble Capital Markets Ed Woo - Ascendiant Capital Steve Silver - Argus Research Operator Hello, everyone. Welcome to the Travelzoo Third Quarter 2023 Financial Results Conference Call. All participants hav ...

NASDAQ: TZOO Third Quarter 2023 Performance October 24, 2023 Important Notice to Investors Please read this management presentation together with the Company's press release issued earlier today announcing the Company's third quarter 2023 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 ...

PART I—FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the period [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023, including balance sheets, statements of operations, comprehensive income, cash flows, and stockholders' equity, with accompanying notes detailing accounting policies, acquisitions, and segment performance [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) For the second quarter of 2023, Travelzoo reported revenues of $21.1 million, an increase from $17.7 million in Q2 2022, with net income attributable to the company rising to $2.6 million from $1.0 million year-over-year, while total assets decreased to $59.1 million as of June 30, 2023, and cash from operations for the first six months of 2023 turned positive at $5.6 million Financial Performance (Q2 2023 vs Q2 2022) (in thousands) | Financial Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **Revenues** | $21,128 | $17,689 | | **Gross Profit** | $18,248 | $15,526 | | **Operating Income** | $3,273 | $1,781 | | **Net Income Attributable to Travelzoo** | $2,626 | $1,028 | | **Diluted EPS** | $0.17 | $0.08 | Financial Performance (H1 2023 vs H1 2022) (in thousands) | Financial Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | **Revenues** | $42,729 | $36,142 | | **Gross Profit** | $37,158 | $31,147 | | **Operating Income** | $7,984 | $3,700 | | **Net Income Attributable to Travelzoo** | $6,299 | $3,387 | | **Diluted EPS** | $0.40 | $0.27 | Balance Sheet Summary (in thousands) | Balance Sheet Item | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $31,979 | $35,591 | | **Total Assets** | $59,116 | $67,274 | | **Total Current Liabilities** | $36,232 | $47,534 | | **Total Liabilities** | $48,047 | $58,423 | | **Total Stockholders' Equity** | $11,069 | $8,851 | Cash Flow Summary (Six Months Ended June 30) (in thousands) | Cash Flow Activity (Six Months Ended June 30) | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $5,650 | $(16,990) | | **Net cash used in investing activities** | $(44) | $(1,028) | | **Net cash provided by (used in) financing activities** | $(5,169) | $1,885 | [Note 1: Summary of Significant Accounting Policies](index=11&type=section&id=Note%201%3A%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's core business as a global internet media company providing exclusive travel and entertainment offers to its 30 million members, detailing revenue recognition policies for advertising, transaction-based vouchers, and subscriptions, while confirming its ability to continue as a going concern despite a $572,000 refund reserve against $6.0 million in unredeemed vouchers - Travelzoo is a global internet media company with **30 million members**, offering exclusive travel, entertainment, and lifestyle deals in partnership with over **5,000 suppliers**[24](index=24&type=chunk)[25](index=25&type=chunk) - The company is developing Travelzoo META, a subscription service for Metaverse travel experiences, supported by the acquisition of Metaverse Travel Experiences, LLC (MTE) in December 2022[27](index=27&type=chunk) - As of June 30, 2023, the company had approximately **$6.0 million of unredeemed vouchers** and estimated a corresponding refund liability of **$572,000**, which is recorded as a reduction of revenues[58](index=58&type=chunk) - Management believes the company has the ability to meet its obligations for at least one year from the issuance of the Form 10-Q and has prepared financial statements on a going concern basis[37](index=37&type=chunk) [Note 3: Acquisitions](index=18&type=section&id=Note%203%3A%20Acquisitions) This note details recent acquisitions, primarily the December 2022 acquisition of Metaverse Travel Experiences (MTE) from related-party Azzurro Capital for $15.2 million, alongside the 2022 asset acquisitions of Secret Escapes' Spanish and U.S. member databases for a combined $2.2 million, and provides an update on the 2020 acquisition of Jack's Flight Club, with amortization expense for acquired intangibles totaling $790,000 for the first six months of 2023 - In December 2022, Travelzoo acquired Metaverse Travel Experiences (MTE) from its largest shareholder, Azzurro Capital Inc., as part of a transaction where Travelzoo issued **3.4 million shares** valued at **$15.2 million**[73](index=73&type=chunk)[74](index=74&type=chunk) - In March 2022, the company acquired member databases from Secret Escapes Limited's Spanish and U.S. business units, recording a total of **$2.2 million in intangible assets** from these transactions[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) Acquired Intangible Assets and Estimated Lives (in thousands) | Acquired Intangible Asset | Fair Value | Estimated Life (Years) | | :--- | :--- | :--- | | Customer relationships (Jack's Flight Club) | $3,500k | 5.0 | | Trade name (Jack's Flight Club) | $2,460k | Indefinite | | Non-compete agreements (Jack's Flight Club) | $660k | 4.0 | | Intangible assets (Secret Escape Spain) | $445k | 3.0 | | Intangible assets (Secret Escape U.S.) | $1,751k | 2.3 | - Amortization expense for acquired intangibles was **$388,000 for Q2 2023** and **$790,000 for the six months ended June 30, 2023**[89](index=89&type=chunk) [Note 9: Segment Reporting and Significant Customer Information](index=26&type=section&id=Note%209%3A%20Segment%20Reporting%20and%20Significant%20Customer%20Information) The company operates through four reportable segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives, with North America generating $13.6 million in revenue and $3.8 million in operating profit for Q2 2023, while the United States remains the largest geographical market with $12.7 million in revenue for the quarter - The company has four reportable operating segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives (which includes licensing and Travelzoo META)[117](index=117&type=chunk) Segment Performance (Q2 2023) (in thousands) | Segment (Q2 2023) | Revenues from Unaffiliated Customers | Operating Profit (Loss) | | :--- | :--- | :--- | | **Travelzoo North America** | $13,642 | $3,753 | | **Travelzoo Europe** | $6,462 | $(239) | | **Jack's Flight Club** | $1,011 | $97 | | **New Initiatives** | $13 | $(338) | | **Consolidated** | **$21,128** | **$3,273** | Revenue by Geography (Q2 2023) (in thousands) | Revenue by Geography (Q2 2023) | Amount (in thousands) | | :--- | :--- | | **United States** | $12,749 | | **United Kingdom** | $4,858 | | **Germany** | $1,738 | | **Rest of the world** | $1,783 | | **Total** | **$21,128** | [Note 10: Discontinued Operations](index=29&type=section&id=Note%2010%3A%20Discontinued%20Operations) This note details the company's exit from its Asia Pacific (APAC) business in March 2020, now classified as a discontinued operation, with a pivot to a licensing model in the region for Japan, South Korea, Australia, New Zealand, and Singapore, resulting in minimal financial impact on the income statement - In March 2020, Travelzoo exited its loss-making Asia Pacific business, which has since been classified as discontinued operations[125](index=125&type=chunk) - The company has transitioned to a licensing model in the APAC region, with agreements in Japan, South Korea, Australia, New Zealand, and Singapore, generating royalty payments[126](index=126&type=chunk)[127](index=127&type=chunk) - For the six months ended June 30, 2023, the discontinued operations had **no revenue** and a **net income of $0**, with net cash used in operating activities of only **$1,000**[126](index=126&type=chunk)[128](index=128&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides its perspective on the company's financial performance, highlighting revenue growth across segments driven by the post-pandemic travel recovery, with a 19% YoY revenue increase in Q2 2023, improved operating margins, and a strong positive shift in operating cash flow for the first half of the year, expressing confidence in liquidity despite negative net working capital [Overview and Business Trends](index=34&type=section&id=Overview%20and%20Business%20Trends) Travelzoo, a global internet media company with 30 million members, focuses on curated travel and lifestyle deals, expanding into new areas like Travelzoo META and growing its subscription-based Jack's Flight Club, while navigating post-pandemic travel recovery, the shift to online and mobile platforms, and effective member acquisition cost management, now reinvesting in marketing, technology, and human resources - The company's revenue model depends on advertising fees from travel and local businesses, as well as subscription fees from Jack's Flight Club[155](index=155&type=chunk)[158](index=158&type=chunk) - Business trends impacting performance include the post-pandemic recovery in travel, the shift to mobile usage by consumers, and intense competition in the online advertising space[160](index=160&type=chunk)[163](index=163&type=chunk) - After significant cost-cutting during the pandemic, the company is now reinvesting in marketing, technology, and human resources to support growth[171](index=171&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance for Q2 and H1 2023 compared to 2022, showing total revenue for Q2 2023 increased 19% YoY to $21.1 million, driven by growth in North America and Europe, with operating income rising to $3.3 million from $1.8 million in Q2 2022, attributed to higher travel-related advertising revenue despite increased operating expenses, and an effective tax rate of 29% for Q2 2023 Revenue by Segment (Q2 2023 vs Q2 2022) (in thousands) | Revenue by Segment (Q2 2023 vs Q2 2022) | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | **Travelzoo North America** | $14,133 | $12,378 | +$1,755 | | **Travelzoo Europe** | $5,887 | $4,354 | +$1,533 | | **Jack's Flight Club** | $1,095 | $952 | +$143 | | **Total Revenues** | **$21,128** | **$17,689** | **+$3,439** | - Sales and marketing expenses increased by **$1.7 million in Q2 2023** compared to Q2 2022, primarily due to higher salary and headcount costs (**$619,000**) and increased member acquisition costs (**$498,000**)[188](index=188&type=chunk)[189](index=189&type=chunk) - General and administrative expenses decreased by **$496,000 in Q2 2023** compared to Q2 2022, mainly due to a reduction in salary, headcount, and stock-based compensation expenses[194](index=194&type=chunk)[195](index=195&type=chunk) - The effective tax rate for Q2 2023 was **29%**, a significant decrease from **47% in Q2 2022**, primarily due to lower non-deductible stock compensation[200](index=200&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, Travelzoo held $19.5 million in cash and cash equivalents, with net cash provided by operating activities for the first six months of 2023 at $5.6 million, a significant improvement from a $17.0 million use of cash in the same period of 2022, driven by higher net income and favorable working capital changes, and despite negative net working capital of $4.3 million, management believes cash on hand is sufficient for the next twelve months - The company had **$19.5 million in cash and cash equivalents** as of June 30, 2023, with **$13.3 million held by foreign operations**[211](index=211&type=chunk) Cash Flow Summary (Six Months Ended June 30) (in thousands) | Cash Flow Summary (Six Months Ended June 30) | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $5,650 | $(16,990) | | **Net cash used in investing activities** | $(44) | $(1,028) | | **Net cash provided by (used in) financing activities** | $(5,169) | $1,885 | - The company reported **negative net working capital of $4.3 million** as of June 30, 2023, largely due to the classification of **$23.9 million in merchant payables** as current liabilities[214](index=214&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2023, due to a previously disclosed material weakness in internal control over financial reporting related to insufficient internal expertise for complex, non-routine transactions, for which a remediation plan is actively being implemented - Management concluded that disclosure controls and procedures are **not effective** due to a material weakness in internal control over financial reporting[232](index=232&type=chunk) - The material weakness relates to not having sufficient internal financial staff with the specific expertise to handle complex, non-routine accounting transactions in a complete and timely manner[234](index=234&type=chunk) - A remediation plan is in progress, which includes realigning personnel, recruiting additional finance headcount, improving reporting processes, and implementing new controls[235](index=235&type=chunk) PART II—OTHER INFORMATION This section covers legal proceedings, equity security sales, and other miscellaneous information not included in the financial statements [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 4 of the financial statements, indicating that while the company is subject to various claims in the ordinary course of business, any potential liability is not expected to be material to its financial position or results of operations - The company is subject to a complaint filed in May 2023 regarding alleged short-swing profits under Section 16(b) against its founder Ralph Bartel and related entities[138](index=138&type=chunk) - The company believes that the likelihood of any pending claims resulting in a material liability is remote[91](index=91&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities, noting that during Q2 2023, Travelzoo repurchased 658,938 shares for $4.7 million, completing its June 2022 repurchase program, and subsequently, on July 26, 2023, the board authorized a new stock repurchase program for up to 1,000,000 shares - In Q2 2023, the company repurchased **658,938 shares** of its common stock for an aggregate price of **$4.7 million**[241](index=241&type=chunk)[242](index=242&type=chunk) - The stock repurchase program authorized in June 2022 was completed as of June 30, 2023[242](index=242&type=chunk) - On July 26, 2023, the Board of Directors authorized a new stock repurchase program for up to **1,000,000 shares** of common stock[243](index=243&type=chunk)

NASDAQ: TZOO Second Quarter 2023 Performance July 27, 2023 Important Notice to Investors Please read this management presentation together with the Company's press release issued earlier today announcing the Company's second quarter 2023 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 w ...