Travelzoo (NASDAQ: TZOO ) reported 3Q24 results , mainly in line with 1H24 results. Revenue was down 2% YoY, and operating income was flat QoQ, with members down 2.7% QoQ (although the company stopped reporting comparisons). Measures of traffic and interest onLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term ea ...

Core Points - Travelzoo is conducting its Q3 2024 Earnings Conference Call on October 23, 2024, at 11:00 AM ET [1] - The call features key participants including the Global CEO, Finance Controller for North America, and the Global Director of Premium Membership [1] Company Overview - The company emphasizes that statements made during the conference call that are not historical facts are forward-looking statements, which may differ materially from actual results [2] - Travelzoo does not undertake any obligation to update forward-looking statements unless required by law [3]

Financial Data and Key Metrics - Q3 2024 consolidated revenue was $20.1 million, down 2% YoY, slightly below expectations [4] - Operating income increased 30% YoY to $4 million, representing 20% of revenue, up from $3.1 million in the prior year [4] - Non-GAAP operating profit was $4.9 million, 25% of revenue, compared to $3.9 million in the prior year [6] - Operating cash flow was $5.3 million, with consolidated cash, cash equivalents, and restricted cash totaling $12.1 million as of September 30, 2024 [7] Business Line Data and Key Metrics - Advertising revenue was $18.7 million, while membership fee revenue was $1.4 million, still a small portion of total revenue [5] - Jack's Flight Club saw an 11% YoY increase in revenue to $1.2 million and a 14% increase in premium subscribers [11] - Membership fee revenue is expected to grow substantially in 2025 as legacy members (95% of current members) begin paying fees [5] Market Data and Key Metrics - Europe segment drove higher profits, with operating margins increasing to 17%, closer to North America's 25% [6][14] - North America saw a slight revenue decline due to advertisers delaying spending, but normalization is expected in Q4 [20] Company Strategy and Industry Competition - The company plans to convert legacy members to paying members starting January 1, 2025, and add new benefits to enhance the value of paid membership [10] - Travelzoo META is being developed with financial discipline, focusing on browser-enabled metaverse travel experiences [11] - The company aims to leverage its global reach and strong relationships with travel suppliers to negotiate exclusive offers for members [9] Management Commentary on Operating Environment and Future Outlook - Consumers are becoming more cost-conscious, seeking value and less crowded destinations, which aligns with Travelzoo's strengths [14] - Q4 2024 is expected to show YoY revenue growth, albeit at a slower pace than 2023, with higher profitability anticipated [8] - Substantial revenue growth is expected in 2025 due to membership fee contributions [8] Other Important Information - The company repurchased 552,679 shares during Q3 and plans to continue share repurchases as part of its capital allocation strategy [7][23] - Fixed operating costs are expected to remain low, with higher revenues likely to improve operating margins [7] Q&A Session Summary Question: Consumer behavior and European margin strength [13] - Consumers are increasingly seeking value and less crowded destinations, with hotels and airlines offering more deals [14] - European margins improved due to efficient operations, and the trend is expected to continue [14] Question: Membership fee revenue mix and trends [17] - Membership fee revenue is expected to grow significantly in 2025, with minimal impact in Q4 2024 due to legacy member exemptions [18][20] - No specific forecasts were provided for 2025 membership revenue or mix [21] Question: Paid membership benefits and cash flow usage [22] - Four new member benefits are in development, focusing on enhancing travel experiences [23] - Cash flow will be used for share repurchases, marketing, and growing the member base [23] Question: Jack's Flight Club expansion and membership fees [24] - Jack's Flight Club is available in the U.S., U.K., Canada, and parts of Europe, with potential expansion into additional European markets and languages [24] - Membership fees are comparable across regions, at $60 in the U.S. and adjusted for currency in Europe [25] Question: Customer service and deal research investments [28] - The company is focused on delivering exclusive offers and better travel experiences to members, with a positive outlook for 2025 [29][30] Question: Advertiser reach and member engagement [31] - Advertiser reach will be maintained in 2025, even for non-paying legacy members, with expectations of stable or growing advertising revenue [32] - Paying members are more engaged and active, driving higher value for the company [33]

Third Quarter 2024 Performance October 23, 2024 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 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 me ...

Travelzoo (TZOO) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 30%. A quarter ago, it was expected that this global media commerce company would post earnings of $0.19 per share when it actually produced earnings of $0.23, delivering a surprise of 21.05%.Over the last four quarters, ...

NEW YORK, Oct. 23, 2024 /PRNewswire/ -- Travelzoo® (NASDAQ: TZOO), the club for travel enthusiasts, today announced that its board of directors has authorized a new program to repurchase up to 1,000,000 shares of the Company's outstanding common stock.Purchases may be made, from time to time, in the open market and will be funded from available cash. The number of shares to be purchased and the timing of purchases will be based on the level of Travelzoo's cash balances, general business and market condition ...

NEW YORK, Oct. 23, 2024 /PRNewswire/ -- Travelzoo® (NASDAQ: TZOO):Revenue of $20.1 million, down 2% year-over-yearConsolidated operating profit of $4.0 millionNon-GAAP consolidated operating profit of $4.9 millionCash flow from operations of $5.3 millionEarnings per share (EPS) of $0.26Travelzoo, the club for travel enthusiasts, today announced financial results for the third quarter ended September 30, 2024. Consolidated revenue was $20.1 million, down 2% year-over-year. In constant currencies, revenue was ...

Travelzoo (TZOO) is set to report third-quarter 2024 results on Oct. 23. Travelzoo provided a cautiously optimistic outlook. For the third quarter of 2024, the company expects year-over-year revenue growth, although at a slower pace than in 2023, along with higher profitability. The Zacks Consensus Estimate for revenues is pegged at $21.15 million, indicating 2.7% growth year over year.The Zacks Consensus Estimate for earnings is pegged at 20 cents per share, indicating 25% growth year over year. The estima ...

Travelzoo, the club for travel enthusiasts, will host a conference call to discuss the Company's financial results for the third quarter ended September 30, 2024. Travelzoo will issue a press release reporting its results before the market opens on October 23, 2024.HOW:  A live webcast of Travelzoo's Q3 2024 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. ...

In a striking display of market resilience, Travelzoo (TZOO) has seen its stock surge 22.9% year to date, outpacing the broader Zacks Retail-Wholesale sector, which returned 19.9%, catching the eye of investors. This impressive rally comes as the travel deal publisher navigates a pivotal transition in its business model, raising questions about the sustainability of its growth and the potential for further gains. Travelzoo presents a compelling investment opportunity based on its strategic shift to a paid m ...