Travelzoo · NASDAQ:TZOO
Travelzoo — Q3 2020 Earnings Presentation
15 slides from Travelzoo's earnings presentation, Oct 21, 2020
Slide 1: Third Quarter 2020 Performance
Third Quarter 2020 Performance October 21, 2020
Slide 2: Important Notice to Investors
1 Important Notice to Investors Please read this management presentation together with the Company’s press release issued earlier today announcing the Company’s third quarter 2020 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Results as filed with the Sec
Slide 3: Part 1: Third Quarter 2020 Performance; Part 2: Management Focus
2 Part 1: Third Quarter 2020 Performance Part 2: Management Focus Third Quarter 2020 Performance
Slide 4: Strong improvement of the business in Q3 after significant Q2 decline
After a significant decline in Q2 due to the effects of the pandemic, 3 we see a strong improvement of the business in Q3. Financial Performance (Continuing Operations) Revenue Operating Income/Loss EPS $ millions $ millions $ per share 23.8 13.8 7.0 0.21 3.4 Q2 2020 Q3 2020 Q2 2020 Q3 2020 Q3 2019
Slide 5: Going forward, we will provide Non-GAAP operating income
Going forward, we will provide information on Non-GAAP operating 4 income* which better explains how we evaluate performance. Non-GAAP Operating Income* GAAP Operating Income $ millions Adjustments Non-GAAP Operating Income* 0.4 3.8 3.4 Q2 2020 2.4 1.2 Q3 2019 (6.7) (2.1) (1.2) Q3 2020 4.6 4.6 * GAA
Slide 6: Details on items excluded from Non-GAAP operating income
Here are the details on the items that are excluded in the calculation 5 of Non-GAAP operating income. $ millions Q3 2019 Q2 2020 Q3 2020 Adjustments 0.4 4.6 2.4 Impairment of intangibles 0 0 0 and goodwill Amortization of intangibles 0 0.5 0.3 Stock option expense 0.3 4.1 1.2 Severance-related expe
Slide 7: Voucher sales driving positive development in cash balance
Our success in voucher sales is driving the positive development 6 in cash balance. Cash Balance at End of Quarter* $ millions 51.7 26.7 19.9 13.3 Q4 2019 Q1 2020 Q2 2020 Q3 2020 * Includes cash, cash equivalents and restricted cash Third Quarter 2020 Performance
Slide 8: North America business segment revenue
North America business segment revenue 7 North America Revenue by Type $ millions 15.3 Highlights 2.4 • Local – YOY 82% decrease YOY % YOY %* due to lockdowns in many 9.1 change change countries, which closed most (as reported) (constant F/X) restaurants, spas, local busi- 0.4 nesses and entertainme
Slide 9: Europe business segment revenue
Europe business segment revenue 8 Europe Revenue by Type $ millions 8.5 Highlights 0.7 • Local – YOY 73% decrease due to lockdowns in many countries, which closed most YOY % YOY %* restaurants, spas, local busi- change change nesses and entertainment. 3.7 (as reported) (constant F/X) 7.7 0.2 • Trave
Slide 10: Permanent benefit from quick adjustment of cost structure in Q2
We believe we will permanently benefit from the quick adjustment of 9 our cost structure in Q2. Non-GAAP Operating Expenses* $ millions and as percentage of revenue 72% 17.2 General & Administrative 18% 4.3 Product Development 5% 1.3 9.8 71% Savings across most areas come from process 3.8 28% optimi
Slide 11: Almost regained profitability in Q3; Q4 close to break-even or profit
As expected, we almost regained profitability in Q3. We will see a result 10 close to break-even or profit in Q4 if we can stay on the current path of recovery. Financial Performance (Continuing Operations) Revenue Operating Expenses and Cost of Revenues $ millions $ millions 23.8 20.4 0.4 20.0 14-
Slide 12: Travelzoo's global reach and high-quality members
With more than 30 million members, 6.5 million mobile app users, 11 and 4 million social media followers, Travelzoo is loved by high-quality travel enthusiasts. Travelzoo's Global Reach High-Quality Users, Followers and Subscribers Members (Email Subscribers) Travelzoo U.S. Member Survey Millions De
Slide 13: Part 2: Management Focus
12 Part 1: Third Quarter 2020 Performance Part 2: Management Focus Third Quarter 2020 Performance
Slide 14: Management Focus
Management Focus 13 • Take advantage of an exceptional industry opportunity for sourcing travel, entertainment, and local deals. • Continue to offer members flexible and worry-free deals for future travel—a format that is working well. • Take the crisis as an opportunity to permanently optimize cost
Slide 15: Thank You
THANK YOU For questions please contact Travelzoo Investor Relations: ir@travelzoo.com travelzoo.com