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. ...

Core Viewpoint - Travelzoo (TZOO) has demonstrated strong market resilience with a year-to-date stock surge of 22.9%, outperforming the broader Zacks Retail-Wholesale sector's 19.9% return, amid a significant transition to a paid membership model that raises questions about growth sustainability and future gains [1][2]. Year-to-Date Performance - Travelzoo's stock has increased by 22.9% year to date, indicating strong investor interest [1]. - The broader Zacks Retail-Wholesale sector has returned 19.9% during the same period [1]. Strategic Shift - The company is transitioning to a paid membership model, aiming to convert over 95% of its 29 million legacy members into paying subscribers by January 1, 2025 [5]. - As of June 30, 2024, Travelzoo has a global membership of 30.8 million, presenting significant monetization potential [4]. Revenue Growth Potential - The anticipated membership fee rollout is expected to drive investor optimism and stock gains [5]. - Jack's Flight Club, in which Travelzoo holds a 60% stake, reported a 9% year-over-year revenue increase, reaching $1.1 million, with a 19% rise in premium subscribers [6]. Innovation and New Initiatives - Travelzoo is exploring growth avenues through the Travelzoo META initiative, which focuses on Metaverse travel experiences, although it is still in early stages with revenues of $23,000 in Q2 2024 [7]. Valuation Metrics - Travelzoo's forward P/E ratio stands at 10.62, suggesting potential undervaluation compared to the Zacks Internet - Commerce industry's 25.36 [8]. - The company has a solid cash position of $13.2 million as of June 30, 2024, providing flexibility for growth investments [9]. Financial Performance - In Q2 2024, Travelzoo's revenues remained steady at $21.1 million year over year, with a 23% increase in operating profit to $4.0 million [10]. - The gross profit margin over the last 12 months is reported at 87.6%, indicating strong operational efficiency [10]. Outlook - For Q3 2024, Travelzoo expects year-over-year revenue growth, albeit at a slower pace than in 2023, with a Zacks Consensus Estimate for 2024 revenues at $86.44 million, reflecting a 2.33% increase [11]. - The consensus estimate for 2024 earnings is 97 cents per share, indicating a year-over-year growth of 21.3% [11]. Competitive Landscape - Travelzoo operates in a competitive travel industry, facing challenges from major players like Expedia and Booking.com, as well as emerging AI-driven platforms [14]. - The company's pivot to a paid model may risk losing price-sensitive users to free alternatives [14]. Conclusion - The stock's impressive year-to-date increase raises questions about the sustainability of membership growth and its impact on stock performance [15]. - The company's operational efficiency and innovative monetization strategies provide a strong foundation for optimism, but successful execution of the membership fee strategy will be critical for future growth [15].

Travelzoo (NASDAQ: TZOO ) and its subsidiaries operate websites that provide travel, entertainment, and other local experiences worldwide. Travelzoo has more than 30 million members that use its websites to find the best travel deals possible. The company was founded in 1998 and was Evan Urbanski is an individual investor looking for deep value within stocks across all sectors. He brings quality research to readers of Seeking Alpha hoping to maximize their portfolio. Evan is recently graduated with a degree ...