Travelzoo · NASDAQ:TZOO
Travelzoo — Q2 2025 Earnings Presentation
25 slides from Travelzoo's earnings presentation, Jul 23, 2025
Slide 1: Second Quarter 2025 Performance
Second Quarter 2025 Performance July 23, 2025
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 second quarter 2025 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secu
Slide 3: Second Quarter 2025 Performance
Part 1: Second Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 3 | Second Quarter 2025 Performance
Slide 4: Revenue growth accelerated to 13% year-over-year; operating profit lower
Revenue growth accelerated to 13% year-over-year. Operating profit was lower, as we invested more in member growth. Revenue Operating Profit $ millions $ millions 23.9 21.1 4.0 2.1 Q2 2024 Q2 2025 Q2 2024 Q2 2025 4 | Second Quarter 2025 Performance
Slide 5: Substantially raised investments in acquisition of Club Members
We substantially raised investments in the acquisition of Club Members as we found a favorable (effectively an immediate) payback. Average Acquisition Cost of Return from Club Members Acquired Annual Club Members* in the Quarter and Future Periods Q2 2025, US market Q2 2025, US market $ $ $18 $40 Q1
Slide 6: Membership fee revenue recognized ratably, acquisition costs expensed immediately
As a reminder, with subscription businesses, membership fee revenue is recognized ratably over the subscription period, but acquisition costs are expensed immediately when incurred. Revenue Recognition $ Example: New member joins on June 15, 2025, paying a membership fee of $40 per annum Q2 2025 Q3
Slide 7: Higher member acquisition expenses reduced EPS this quarter
Higher member acquisition expenses, coupled with only a small portion of revenue recognized in the quarter, reduced EPS this quarter, but will increase it over time. Direct member acquisition Revenue generated from these members costs in Q2 2025* in Q2 2025 and in future periods $ millions $ million
Slide 8: Revenue growth came from all segments
Revenue growth came from all segments. With favorable ROI on member acquisition in the UK, we invested heavily there. Jack’s Flight Club revenue increased by 33%. North America Segment Europe Segment Jack’s Flight Club Segment Revenue $ millions Q2 2024 14.1 6.0 1.1 Q2 2025 16.1 6.4 1.4 Operating Pr
Slide 9: Membership fees have started to drive significant revenue growth
Membership fees have started to drive significant revenue growth. Next year, we expect them to account for around 25% of revenue. Global Revenues $ millions Advertising and Commerce Membership Fees Other Q4 2023 19.4 1.2 0.0 Q1 2024 20.9 1.1 0.0 Q2 2024 20.0 1.2 0.0 Q3 2024 18.7 1.4 0.0 Q4 2024 19.1
Slide 10: Acquiring more Club Members lowers GAAP operating margin
Acquiring more Club Members has the effect of lower GAAP operating margin. Still, our goal is to further grow the number of Club Members to bring Travelzoo into high-growth mode. Operating Margin 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 22% 18% 16% 11% 9% 9% 7% 4% (2%) (26%) 10 | Seco
Slide 11: Investments in Club Members occur in all key markets
The investments in Club Members occur in all key markets. Over time, we expect margins to return to previous levels or even exceed them. North America Operating Margin Europe Operating Margin Q1 2023 31% 8% Q2 2023 27% (4%) Q3 2023 22% 4% Q4 2023 29% 13% Q1 2024 31% 21% Q2 2024 26% 8% Q3 2024 25% 17
Slide 12: Total non-GAAP operating profit was $2.4 million
Total non-GAAP operating profit was $2.4 million or 10% of revenue. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 4.8 4.0 0.8 2.4 2.1 0.3 Q2 2024 Q2 2025 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-rel
Slide 13: Items excluded in the calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit: $ millions Q2 2024 Q2 2025 Adjustments* 0.8 0.4 Amortization of intangibles 0.1 0.0 Stock option expense 0.7 0.3 * Numbers don’t add up due to rounding. 13 | Second Quarter 2025 Performance
Slide 14: Cash flow from operations was $1.3 million
Cash flow from operations was $1.3 million. We reduced merchant payables by $2.4 million and repurchased 172,088 shares. Cash Balance at End of Quarter* $ millions 13.2 12.2 11.2 Q2 2024 Q1 2025 Q2 2025 * Includes cash, cash equivalents and restricted cash 14 | Second Quarter 2025 Performance
Slide 15: Second Quarter 2025 Performance
Part 1: Second Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 15 | Second Quarter 2025 Performance
Slide 16: Becoming the place where the world's travel enthusiasts gather
We are becoming the place where the world’s travel enthusiasts gather. Membership empowers you to live your life as a travel enthusiast to the fullest, while respecting different cultures Annual membership (currently $40 for a 12-month period) provides: • Access to Club Offers negotiated and rigorou
Slide 17: Exclusive Club Offers created for Club Members
Here are some of the exclusive Club Offers that we created for Club Members during Q2: $1298—Cook with a Michelin-star chef in Tuscany, £99—B&B for 2 at 30 country inns, including 3-night stay for 2 dinner for 2 £299pp—Northern Iceland adventure on the Arctic $75 pp—2 nights on the Vegas Strip with
Slide 18: Club Offers (continued)
Club Offers (continued) $1999—Maldives: 5 nights in an overwater villa on a Private Island, all-inclusive $999—Weeklong yacht cruise on Croatia’s coast, reg. $2389 18 | Second Quarter 2025 Performance
Slide 19: Worldwide complimentary lounge access for flight delays
Worldwide complimentary lounge access in case of flight delays is another popular benefit among Club Members Complimentary access to an airport lounge if flight is delayed by at least one hour. The benefit is good on any flight on any airline, regardless of where they booked. Bring up to three famil
Slide 20: Travelzoo is loved by affluent, active travel enthusiasts
Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. Audience Demographics Our Audience Compared To The General Population Likely to book an 88% unplanned trip with an attractive offer 78% 60% ages 45+ Open to new destinations 84% 40% ages 18-44 and travel i
Slide 21: Second Quarter 2025 Performance
Part 1: Second Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 21 | Second Quarter 2025 Performance
Slide 22: Management focus
Management focus • Grow the number of (paying) members and accelerate revenue growth by converting Legacy Members and adding new Club Members • Add new benefits to the paid membership • Retain, and grow, our profitable advertising business from the popular Top 20® product • Accelerate revenue growth
Slide 23: Second Quarter 2025 Performance
Part 1: Second Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 23 | Second Quarter 2025 Performance
Slide 24: Travelzoo META
24 | Second Quarter 2025 Performance
Slide 25: Have a good day!
NASDAQ: TZOO HAVE A GOOD DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com