While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metric ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) Washington, D.C. 20549 ______________________________________________________________________________ Form 10-Q ______________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from t ...

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Travelzoo (TZOO) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable as it indicates strong future prospects [4] - Travelzoo's historical EPS growth rate is 45%, with projected EPS growth of 18.7% this year, surpassing the industry average of 18.6% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [6] - Travelzoo's year-over-year cash flow growth is 55.4%, significantly higher than the industry average of -4.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 16.3%, compared to the industry average of 7.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - Travelzoo's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 3.3% over the past month [9] Group 5: Overall Assessment - Travelzoo's combination of upward earnings estimate revisions and a Growth Score of B positions it as a potential outperformer and a solid choice for growth investors [10][11]

Finally, we should also recognize that TZOO has a P/CF ratio of 8.68. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.10. Over the past 52 weeks, TZOO's P/CF has been as high as 11.87 and as low as 5.77, with a median of 8.54. The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stoc ...

Group 1 - The consensus price target for Travelzoo (TZOO) indicates a potential upside, with a mean target of $14 suggesting a 39.3% increase from the current price of $10.05 [10] - Analysts have shown a strong agreement in revising TZOO's earnings estimates higher, which correlates with potential near-term stock price movements [7][8] - TZOO has a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a solid potential upside [9] Group 2 - The average short-term price targets for TZOO range from $12 to $17, with a standard deviation of $2.65, reflecting a high degree of agreement among analysts [11] - The stock has gained 32.4% over the past four weeks, suggesting positive momentum that could continue if analyst targets are met [10] - A tight clustering of price targets, indicated by a low standard deviation, suggests analysts have a consensus on the direction and magnitude of TZOO's price movement [5]

Good 2Q24 results in line with expectations Travelzoo's 2Q24 results were good, without many changes YoY, and meeting expectations. Valuation is attractive, but I remain cautious Large insider sales: The company's founder, largest shareholder, and brother of the CEO have been selling shares aggressively. The company he beneficially owns (Azzurro) sold 2.5 million shares in the past twelve months. In the past three months, he sold 360 thousand shares. Uncertainty of business model change: As explained above, ...

Financial Data and Key Metrics Changes - Travelzoo's consolidated Q2 revenue was $21.1 million, consistent with the prior year, while in constant currencies, revenue was $21.2 million, up from $21.1 million year-over-year [29] - Operating income increased by 23% year-over-year, reaching $4.0 million or 19% of revenue, up from $3.3 million in the prior year [29] - GAAP operating margin improved to 19% in Q2 2024 compared to 15% a year ago [31] - Non-GAAP operating profit for Q2 2024 was $4.8 million, representing 23% of revenue, compared to $4.0 million in the prior year [32] - As of June 30, 2024, consolidated cash, cash equivalents, and restricted cash stood at $13.2 million [33] Business Line Data and Key Metrics Changes - Advertising revenue remained stable at $20.0 million for Q2 2024, consistent year-over-year [30] - Revenue from membership fees increased to $1.2 million, with expectations for substantial growth in 2025 as legacy members begin to pay the membership fee [30] Market Data and Key Metrics Changes - The company reported that 91% of its members are open to new destinations and travel ideas, indicating a strong engagement with travel enthusiasts [34] - Management noted that consumers are becoming more value-conscious across all markets, including the U.S., Canada, U.K., Germany, and the rest of Europe [49] Company Strategy and Development Direction - The company aims to convert a large number of legacy members into paying members by January 1, 2025, and is focused on adding new benefits to enhance the value of paid membership [15] - Travelzoo plans to leverage its global reach and strong relationships with travel suppliers to negotiate exclusive offers for its members [14] - The company is developing Travelzoo META, focusing on producing Metaverse travel experiences in a financially disciplined manner [35] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth year-over-year for Q3 2024, albeit at a slower pace than in 2023, and anticipates higher profitability year-over-year [13] - The travel industry is experiencing a shift where consumers are looking for fair prices and excellent value, which aligns with Travelzoo's offerings [49] - Management is cautious about the summer travel season, noting that the trend of increased prices for travel services may be coming to an end as consumers seek more value [42] Other Important Information - The company has maintained a solid cash position even after repurchasing 800,000 shares of its common stock [33] - Management is exploring various uses for cash, including investments in marketing, product development, acquisitions, and share repurchases [40] Q&A Session Summary Question: Metrics on subscription conversion expectations for 2025 - Management did not provide specific estimates for member conversion but noted that each 100,000 members converting at an annual fee of $40 would generate an incremental $4 million in annual revenue [19] Question: Impact of subscription conversion on advertising and margins - Management stated that the transition to a paid membership will not negatively affect the advertising business, particularly the popular Top 20 product [37] Question: Outlook for cash usage and growth initiatives - Management emphasized careful consideration of cash usage for marketing, product investments, acquisitions, and share repurchases, with expectations for improved cash position as legacy members start paying fees in 2025 [40] Question: Progress of the summer travel season and industry outlook - Management indicated that the travel industry is seeing a trend of consumers becoming more value-conscious, which is consistent across all markets [49]

Exhibit 99.1 Investor Relations: ir@travelzoo.com Travelzoo Reports Second Quarter 2024 Results • Consolidated operating profit of $4.0 million • Earnings per share (EPS) of $0.23 Travelzoo, the club for travel enthusiasts, today announced financial results for the second quarter ended June 30, 2024. Consolidated revenue was $21.1 million, consistent year-over-year. In constant currencies, revenue was $21.2 million, up from $21.1 million year-over-year. Travelzoo's reported revenue consists of advertising r ...

Travelzoo, which belongs to the Zacks Internet - Commerce industry, posted revenues of $21.14 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 2.03%. This compares to year-ago revenues of $21.13 million. The company has topped consensus revenue estimates just once over the last four quarters. Travelzoo (TZOO) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.17 per share a year ago. Th ...

Financial Performance - Consolidated revenue for Q2 2024 was $21.1 million, consistent year-over-year, with a slight increase to $21.2 million in constant currencies [18] - Consolidated operating profit was $4.0 million, with a non-GAAP operating profit of $4.8 million, excluding certain expenses [19][24] - Net income attributable to Travelzoo was $2.9 million for Q2 2024, or $0.23 per share, compared to $0.17 per share in the prior-year period [18][30] Business Segments - North America business segment revenue remained consistent year-over-year at $14.1 million, with an operating profit of $3.7 million, or 26% of revenue [3] - Europe business segment revenue increased by 1% year-over-year to $6.0 million, with an operating profit of $512,000, compared to an operating loss in the prior-year period [4] - Revenue from Jack's Flight Club, in which Travelzoo has a 60% ownership interest, increased by 9% year-over-year to $1.1 million, with a 19% increase in premium subscribers [5] Cash Flow and Position - Cash flow from operations was $3.1 million, with consolidated cash, cash equivalents, and restricted cash totaling $13.2 million as of June 30, 2024 [2][18] - The company repurchased 800,000 shares of its outstanding common stock during Q2 2024 [10] Membership and Subscribers - As of June 30, 2024, Travelzoo had 30.8 million members worldwide, consistent with the previous year [8] - Jack's Flight Club had 2.2 million subscribers, including premium subscribers, also consistent with the previous year [8] Future Outlook - For Q3 2024, the company expects year-over-year revenue growth, albeit at a slower pace than in 2023, and anticipates higher profitability [10] - Substantial revenue growth is expected in 2025 due to additional revenue from membership fees introduced in January 2024 [21]