Travelzoo · NASDAQ:TZOO
Travelzoo — Q1 2023 Earnings Presentation
19 slides from Travelzoo's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Performance
NASDAQ: TZOO First Quarter 2023 Performance April 27, 2023
Slide 2: Important Notice to Investors
Important Notice to Investors Please read this management presentation together with the Company’s press release issued earlier today announcing the Company’s first quarter 2023 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secur
Slide 3: Part 1: First Quarter 2023 Performance
Part 1: First Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 2 | First Quarter 2023 Performance
Slide 4: Revenue up 17% year-over-year, operating profit more than doubled
Revenue was up 17% year-over-year, and operating profit more than doubled. Revenue Operating Profit Members $ millions $ millions Millions 30.7 30.4 30.5 21.6 18.5 4.7 1.9 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q4 2022 Q1 2023 3 | First Quarter 2023 Performance
Slide 5: North America segment revenue increased 26% year-over-year
North America segment revenue increased 26% year-over-year. At constant currencies, Europe segment revenue increased 6%. North America Business Segment Europe Business Segment Revenue $ millions Q1 2022 11.7 5.9 Q1 2023 14.8 5.9 Q1 2023 at constant FX 14.9 6.3 Operating Profit $ millions Q1 2022 1.8
Slide 6: Operating margin reached 22%, higher than before the pandemic
Our operating margin reached 22%—higher than before the pandemic. Operating Margin 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 22% 11% 9% 9% 7% 3% 4% (2%) (26%) 5 | First Quarter 2023 Performance
Slide 7: In North America, the operating margin reached 31%
In North America, the operating margin even reached 31%. North America Business Segment Revenue Operating Margin $ millions Percent Q1 2022 16% 11.7 Q2 2022 12.4 25% Q3 2022 10.5 8% Q4 2022 13.1 29% Q1 2023 14.8 31% 6 | First Quarter 2023 Performance
Slide 8: Q1 2023 non-GAAP operating profit was $5.5 million
Q1 2023 non-GAAP operating profit was $5.5 million. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 0.8 5.5 4.7 0.8 2.7 2.6 1.9 Q1 2022 Q1 2023 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-related expense
Slide 9: Items excluded in the calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit: $ millions Q1 2022 Q1 2023 Adjustments 0.8 0.8 Impairment of intangibles and goodwill 0 0 Amortization of intangibles 0.2 0.4 Stock option expense 0.6 0.4 Severance-related expenses 0.0 0.0 8 | First Quarter 2023 Performance
Slide 10: Cash balance remained unchanged; merchant payables decreased
Our cash balance remained unchanged. Merchant payables decreased by $4.6 million. Cash Balance at End of Quarter* $ millions 36.7 19.4 19.8 Q1 2022 Q4 2022 Q1 2023 * Includes cash, cash equivalents and restricted cash 9 | First Quarter 2023 Performance
Slide 11: North America business segment revenue
North America business segment revenue: North America Revenue by Type $ millions YOY % YOY %* change change 14.8 14.9 (as reported) (constant F/X) 0.6 0.6 (4%) (3%) 11.7 0.6 14.2 14.3 28% 29% 11.1 Q1 2022 Q1 2023 Q1 2023 at constant F/X* Local Travel * Based on constant F/X rates for CAD 10 | First
Slide 12: Europe business segment revenue
Europe business segment revenue: Europe Revenue by Type $ millions YOY % YOY %* change change 6.3 (as reported) (constant F/X) 5.9 5.9 0.4 9% 20% 0.3 0.3 5.6 5.6 5.9 (1%) 6% Q1 2022 Q1 2023 Q1 2023 at constant F/X* Local Travel * Based on constant F/X rates for EUR and GBP 11 | First Quarter 2023 Pe
Slide 13: Fixed costs expected to stay low while revenues grow
We believe we can keep our fixed costs relatively low in the foreseeable future—while revenues are expected to grow. Revenue Operating Expenses and Cost of Revenues $ millions $ millions 26.1 1.6 25.3 3.7 0.2 21.6 22.2 16.5 16.9 18.6 0.8 0.8 15.7 16.1 Q4 2019 Q1 2022 Q1 2023 Q4 2019 Q1 2021 Q1 2023
Slide 14: Global reach: more than 30 million members
With more than 30 million members, 7.5 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences. Travelzoo's Global Reach High-Quality Users, Followers and Subscribers Members* Travelzoo U.S. Member
Slide 15: Part 2: Management Focus
Part 1: First Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 14 | First Quarter 2023 Performance
Slide 16: Management focus
Management focus: • Reach and surpass pre-pandemic number of members and accelerate revenue growth. • Utilize higher operating margins to significantly increase EPS. • Grow Jack’s Flight Club’s profitable subscription revenue. • Launch Travelzoo META. 15 | First Quarter 2023 Performance
Slide 17: Part 3: Travelzoo META
Part 1: First Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 16 | First Quarter 2023 Performance
Slide 18: 17 | First Quarter 2023 Performance
17 | First Quarter 2023 Performance
Slide 19: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com