Travelzoo(TZOO) - 2025 Q1 - Quarterly Results

Financial Performance - Consolidated revenue for Q1 2025 was $23.1 million, a 5% increase from $22.0 million year-over-year[1] - Net income attributable to Travelzoo was $3.0 million, or $0.25 per share, compared to $0.31 per share in the prior-year period[2] - Total net revenues for Q1 2025 reached $23,140,000, a 5.3% increase from $21,985,000 in Q1 2024[27] - Operating profit for Q1 2025 was $3,744,000, down from $5,591,000 in Q1 2024, representing a decrease of 33%[27] - Non-GAAP operating income for Q1 2025 was $4,361,000, down from $6,003,000 in Q1 2024, indicating a decline of 27.3%[29] - Other income for Q1 2025 was $418,000, compared to $139,000 in Q1 2024, marking a significant increase[27] Revenue Breakdown - North America business segment revenue increased 6% year-over-year to $15.1 million, with an operating profit of $3.6 million, or 24% of revenue[4] - Europe business segment revenue increased 1% year-over-year to $6.7 million, with an operating profit of $0.2 million, or 3% of revenue[5] - Revenues from unaffiliated customers in North America for Q1 2025 were $14,830,000, up from $14,273,000 in Q1 2024, showing an increase of 3.9%[27] - Revenue from Jack's Flight Club increased 20% year-over-year to $1.3 million, with a 13% increase in premium subscribers[6] - Licensing revenue from agreements in Japan and Australia totaled $17,000 in Q1 2025, with expectations for growth going forward[8] Expenses and Cash Flow - Sales and marketing expenses increased to $10,225,000 in Q1 2025, compared to $8,573,000 in Q1 2024, reflecting a rise of 19.3%[27] - Total operating expenses for Q1 2025 were $15,224,000, compared to $13,754,000 in Q1 2024, an increase of 10.7%[29] - The company reported a decrease in other expenses to $9,170,000 in Q1 2025 from $7,821,000 in Q1 2024, reflecting a rise of 17.3%[27] - Cash flow from operations was $3.3 million, with cash, cash equivalents, and restricted cash totaling $12.2 million as of March 31, 2025[11] Shareholder Actions - The company repurchased 590,839 shares of its outstanding common stock during Q1 2025[12] Future Outlook - Travelzoo expects year-over-year revenue growth to double in Q2 2025, with profitability expected to increase over time as recurring membership fees are recognized[13] - Travelzoo reaches 30 million travelers, including members from Jack's Flight Club[9] Intersegment and Other Revenues - Intersegment revenues for Q1 2025 were $298,000, compared to $(45,000) in Q1 2024, indicating a positive shift[27] - The company incurred severance-related expenses of $222,000 in Q1 2025, which were not present in Q1 2024[29]