Travelzoo(TZOO) - 2024 Q4 - Annual Results

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]