Travelzoo · NASDAQ:TZOO
Travelzoo — Q4 2022 Earnings Presentation
30 slides from Travelzoo's earnings presentation, Mar 22, 2023
Slide 1: Fourth Quarter 2022 Performance
NASDAQ: TZOO Fourth Quarter 2022 Performance March 22, 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 fourth quarter 2022 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secu
Slide 3: Part 1: Fourth Quarter 2022 Performance; Part 2: Management Focus; Part 3: Travelzoo META
Part 1: Fourth Quarter 2022 Performance Part 2: Management Focus Part 3: Travelzoo META 2 | Fourth Quarter 2022 Performance
Slide 4: Revenue growth accelerated in Q4 to 36% year-over-year, leading to much stronger earnings
Revenue growth accelerated in Q4 to 36% year-over-year, leading to much stronger earnings. Financial Performance Revenue Operating Profit/(Loss) Members $ millions $ millions Millions 30.3 30.4 19.4 18.6 13.7 3.6 Q4 2021 Q4 2021 Q4 2022 Q4 2022 Q4 2022 Q4 2021 Q4 2022 (actual) (at constant F/X*) (3.
Slide 5: North America segment revenue increased 53% year-over-year
North America segment revenue increased 53% year-over-year. At constant currencies, Europe segment revenue increased 23%. North America Business Segment Europe Business Segment Revenue $ millions Q4 2021 8.6 4.3 Q4 2022 13.1 4.7 Q4 2022 at constant FX 13.2 5.3 Operating Profit/(Loss) $ millions Q4 2
Slide 6: Our operating margin for all of 2022 reached 11%
Our operating margin for all of 2022 reached 11%—higher than before the pandemic. Operating Margin 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 19% 9% 9% 10% 10% 7% 3% 4% 2% (2%) Operating margin for all of 2022: 11% (26%) 5 | Fourth Quarter 2022 Performance
Slide 7: In North America, the operating margin even reached 29%
In North America, the operating margin even reached 29%. North America Business Segment Revenue Operating Margin $ millions Percent Q4 2021 8.3 (26%) Q1 2022 11.7 15% Q2 2022 12.4 25% Q3 2022 10.5 8% Q4 2022 13.1 29% 6 | Fourth Quarter 2022 Performance
Slide 8: Q4 2022 non-GAAP operating profit was $4.8 million
Q4 2022 non-GAAP operating profit was $4.8 million. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 1.2 4.8 3.6 2.6 1.1 (2.4) (3.8) 1.3 Q4 2021 Q4 2022 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-related
Slide 9: Items excluded in the calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit: $ millions Q4 2021 Q4 2022 Adjustments 1.3 1.2 Impairment of intangibles and goodwill ⎯ 0.2 Amortization of intangibles 0.3 0.5 Stock option expense 1.0 0.3 Severance-related expenses 0.1 0.2 8 | Fourth Quarter 2022 Performance
Slide 10: Our cash balance remained flat while outstanding vouchers decreased greatly
Our cash balance remained flat while the number of outstanding vouchers decreased greatly at the end of 2022. Cash Balance at End of Quarter* $ millions 45.0 20.5 19.4 Q4 2021 Q3 2022 Q4 2022 * Includes cash, cash equivalents and restricted cash 9 | Fourth Quarter 2022 Performance
Slide 11: North America business segment revenue
North America business segment revenue: North America Revenue by Type $ millions YOY % YOY %* change change 13.1 13.2 (as reported) (constant F/X) 0.8 0.8 (10%) (9%) 8.6 0.9 12.3 12.4 61% 62% 7.7 Q4 2021 Q4 2022 Q4 2022 at constant F/X* Local Travel * Based on constant F/X rates for CAD 10 | Fourth
Slide 12: Europe business segment revenue
Europe business segment revenue: Europe Revenue by Type $ millions YOY % YOY %* change change 5.3 (as reported) (constant F/X) 4.7 0.6 (40%) (32%) 4.3 0.5 0.9 4.2 4.7 22% 40% 3.4 Q4 2021 Q4 2022 Q4 2022 at constant F/X* Local Travel * Based on constant F/X rates for EUR and GBP 11 | Fourth Quarter 2
Slide 13: We believe we can keep our fixed costs relatively low
We believe we can keep our fixed costs relatively low in the foreseeable future—while revenues are expected to grow. Financial Performance Revenue Operating Expenses and Cost of Revenues $ millions $ millions 26.1 1.6 25.3 3.7 0.2 22.2 17.4 18.6 1.3 15.0 16.1 1.2 13.7 13.8 Q4 2019 Q4 2021 Q4 2022 Q4
Slide 14: With more than 30 million members, Travelzoo is loved by travel enthusiasts
With more than 30 million members, 7.3 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: Fourth Quarter 2022 Performance Part 2: Management Focus Part 3: Travelzoo META 14 | Fourth Quarter 2022 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 | Fourth Quarter 2022 Performance
Slide 17: Part 3: Travelzoo META
Part 1: Fourth Quarter 2022 Performance Part 2: Management Focus Part 3: Travelzoo META 16 | Fourth Quarter 2022 Performance
Slide 18: 17 | First Quarter 2022 Performance
17 | First Quarter 2022 Performance
Slide 19: Travelzoo META: first look
Travelzoo META: first look 18 | Fourth Quarter 2022 Performance
Slide 20: Travelzoo META: first look
Travelzoo META: first look 19 | Fourth Quarter 2022 Performance
Slide 21: Travelzoo META: first look
Travelzoo META: first look 20 | Fourth Quarter 2022 Performance
Slide 22: Travelzoo META: first look
Travelzoo META: first look 21 | Fourth Quarter 2022 Performance
Slide 23: Travelzoo META: first look
Travelzoo META: first look 22 | Fourth Quarter 2022 Performance
Slide 24: Travelzoo META: first look
Travelzoo META: first look 23 | Fourth Quarter 2022 Performance
Slide 25: Travelzoo META: first look
Travelzoo META: first look 24 | Fourth Quarter 2022 Performance
Slide 26: Travelzoo META: first look
Travelzoo META: first look 25 | Fourth Quarter 2022 Performance
Slide 27: Travelzoo META: first look
Travelzoo META: first look 26 | Fourth Quarter 2022 Performance
Slide 28: Travelzoo META: first look
Travelzoo META: first look 27 | Fourth Quarter 2022 Performance
Slide 29: Travelzoo META: first look
Travelzoo META: first look 28 | Fourth Quarter 2022 Performance
Slide 30: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com