Travelzoo · NASDAQ:TZOO
Travelzoo — Q1 2021 Earnings Presentation
15 slides from Travelzoo's earnings presentation, Apr 22, 2021
Slide 1: First Quarter 2021 Performance
NASDAQ: TZOO First Quarter 2021 Performance April 22, 2021
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 first quarter 2021 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Results as filed with the Sec
Slide 3: Part 1: First Quarter 2021 Performance; Part 2: Management Focus
2 Part 1: First Quarter 2021 Performance Part 2: Management Focus First Quarter 2021 Performance
Slide 4: Our business continues to improve: revenues and operating income are recovering
Our business continues to improve: Revenues and operating income 3 are recovering. The number of members is growing. Financial Performance (Continuing Operations) Revenue Operating Income Members $ millions $ millions 20.3 31.3 31.8 30.2 14.3 12.5 Q1 2020 Q4 2020 Q1 2021 Q1 2020 Q4 2020 Q1 2021 (0.9
Slide 5: Non-GAAP operating income was in line with our expectations
Non-GAAP operating income, which we use to measure financial 4 performance, was in line with our expectations. Non-GAAP Operating Income* GAAP Operating Income $ millions Adjustments Non-GAAP Operating Income* 0.5 0.6 1.4 1.4 (0.9) (0.8) (1.9) 3.4 (5.3) Q1 2020 Q4 2020 Q1 2021 * GAAP operating incom
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 Q1 2020 Q4 2020 Q1 2021 Adjustments 3.4 1.4 1.4 Impairment of intangibles and 3.0 0.0 0.0 goodwill Amortization of intangibles 0.2 0.3 0.3 Stock option expense 0.0 1.0 0.9 Severance-rela
Slide 7: Voucher sales keep pushing the positive development in cash balance
Our continued success in voucher sales keeps pushing the positive 6 development in cash balance. Cash Balance at End of Quarter* $ millions 72.0 64.2 51.7 26.7 13.3 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 * Includes cash, cash equivalents and restricted cash First Quarter 2021 Performance
Slide 8: North America business segment revenue
North America business segment revenue 7 North America Revenue by Type $ millions 12.7 YOY % YOY %* 1.5 Highlights change change 9.8 (as reported) (constant F/X) • Travel – YOY 20% decrease 0.8 due to lower advertising -46% -46% revenue, partially offset by strong getaway voucher sales. • Local – YO
Slide 9: Europe business segment revenue
Europe business segment revenue 8 Europe Revenue by Type $ millions Highlights 6.9 • Travel – YOY 47% decrease due to reduced activity from 0.7 advertisers, partially offset by YOY % YOY %* strong voucher sales. change change 3.6 (as reported) (constant F/X) • Local – YOY 61% decrease due to lockdow
Slide 10: Quick cost structure adjustment has resulted in lower fixed costs
The quick adjustment of our cost structure right at the beginning of the 9 pandemic has resulted in lower fixed costs. Non-GAAP Operating Expenses* $ millions and as percentage of revenue 96% 19.6 General & 25% 5.1 Administrative Product 7% 1.4 Development 10.6 74% 3.2 23% Savings across most areas
Slide 11: For Q2 2021, we expect revenue to continue to rise
For Q2 2021, we expect revenue to continue to rise. At our reduced 10 expense level, we expect to reach an operating profit. Financial Performance (Continuing Operations) Revenue Operating Expenses and Cost of Revenues $ millions $ millions 25.7 3.4 22.3 20.3 15.1 ~15.5 16–17 13.4 1.5 1.4 14.3 1.4 1
Slide 12: Travelzoo's global reach and high-quality users, followers and subscribers
With more than 30 million members, 6.8 million mobile app users, 11 and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open for new experiences. Travelzoo's Global Reach High-Quality Users, Followers and Subscribers Members (Email Subscribers
Slide 13: Part 2: Management Focus
12 Part 1: First Quarter 2021 Performance Part 2: Management Focus First Quarter 2021 Performance
Slide 14: Management Focus
Management Focus 13 • Expand and seize the exceptional industry opportunities for sourcing travel, entertainment, and local deals. • Continue to offer Travelzoo members flexible and worry- free deals for future travel—a format that is working well. • Grow Jack's Flight Club’s profitable subscriptio
Slide 15: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com