Travelzoo · NASDAQ:TZOO
Travelzoo — Q3 2023 Earnings Presentation
20 slides from Travelzoo's earnings presentation, Oct 24, 2023
Slide 1: Third Quarter 2023 Performance
NASDAQ: TZOO Third Quarter 2023 Performance October 24, 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 third 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: Third Quarter 2023 Performance
Part 1: Third Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 3 | Third Quarter 2023 Performance
Slide 4: Revenue, operating profit and member count all increased year-over-year
Revenue, operating profit and member count all increased year-over-year. Revenue Operating Profit Members $ millions $ millions Millions 30.5 30.8 31.2 20.6 15.9 3.1 0.3 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q2 2023 Q3 2023 4 | Third Quarter 2023 Performance
Slide 5: Revenue growth accelerated compared to the previous quarter and last year
Revenue growth accelerated further compared to the previous quarter, as well as last year. Year-Over-Year Change in Revenue, Percent Travelzoo North America Europe Jack's Flight Club/ New Initiatives 39% 35% 33% 30% 28% 19% 16% 13% 13% 14% 4% 4% FY Q2 Q3 FY Q2 Q3 FY Q2 Q3 FY Q2 Q3 2022 2023 2023 202
Slide 6: North America revenue increased 28% and Europe revenue increased 33%
North America segment revenue increased 28% and Europe segment revenue increased 33% year-over-year. North America Business Segment Europe Business Segment Revenue $ millions Q3 2022 10.5 4.5 Q3 2023 13.4 6.0 Operating Profit $ millions Q3 2022 1.0 (0.6) Q3 2023 3.0 0.3 6 | Third Quarter 2023 Perfor
Slide 7: GAAP operating margin remained at 15% in seasonally slowest quarter
Our GAAP operating margin remained at 15% in what is seasonally the slowest quarter. Operating Margin 2017 2018 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 22% 15% 15% 11% 9% 7% 4% (2%) (26%) 7 | Third Quarter 2023 Performance
Slide 8: In North America, the GAAP operating margin remained high
In North America, the GAAP operating margin remained high. North America Business Segment Revenue Operating Margin $ millions Percent Q3 2022 10.5 8% Q4 2022 13.1 29% Q1 2023 14.8 31% Q2 2023 14.1 27% Q3 2023 13.4 22% 8 | Third Quarter 2023 Performance
Slide 9: Q3 2023 non-GAAP operating profit was $3.9 million
Q3 2023 non-GAAP operating profit was $3.9 million. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 3.9 3.1 0.8 2.6 1.1 0.3 0.8 Q3 2022 Q3 2023 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-related expense
Slide 10: Items excluded in the calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit $ millions Q3 2022 Q3 2023 Adjustments 0.8 0.8 Impairment of intangibles and goodwill — — Amortization of intangibles 0.4 0.4 Stock option expense 0.3 0.4 Severance—related expenses 0.1 0.0 10 | Third Quarter 2023 Performance
Slide 11: Solid cash position after repurchasing one million shares
We maintained a solid cash position even after repurchasing one million shares during the quarter. Cash Balance at End of Quarter* $ millions 20.5 20.2 16.6 Q3 2022 Q2 2023 Q3 2023 * Includes cash, cash equivalents and restricted cash 11 | Third Quarter 2023 Performance
Slide 12: North America business segment revenue
North America business segment revenue North America Revenue by Type $ millions YOY % YOY %* change change 13.4 (as reported) (constant F/X) 0.7 (21%) (20%) 10.5 0.8 12.7 32% 32% 9.7 Q3 2022 Q3 2023 Local Travel 12 | Third Quarter 2023 Performance
Slide 13: Europe business segment revenue
Europe business segment revenue Europe Revenue by Type $ millions YOY % YOY %* change change 6.0 (as reported) (constant F/X) 0.3 22% 13% 4.5 0.3 5.7 34% 24% 4.2 Q3 2022 Q3 2023 Local Travel 13 | Third Quarter 2023 Performance
Slide 14: Fixed costs can stay relatively low; higher revenues would increase margins
We believe we can keep our fixed costs relatively low in the foreseeable future. Higher revenues would thus increase margins. Revenue Operating Expenses and Cost of Revenues $ millions $ millions 21.1 17.8 17.5 20.6 15.6 0.9 0.8 0.8 16.9 16.7 15.8 14.8 Q3 2022 Q2 2023 Q3 2023 Q3 2022 Q2 2023 Q3 2023
Slide 15: Travelzoo's global reach and high-quality members
With more than 30 million members, 7.5 million mobile app users, and 4.1 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. Memb
Slide 16: Part 2: Management Focus
Part 1: Third Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 16 | Third Quarter 2023 Performance
Slide 17: Management focus
Management focus • Reach and surpass pre-pandemic number of members and accelerate revenue growth. • Add more innovative exclusive benefits for travel enthusiasts to make the Travelzoo membership even more valuable. • Utilize higher operating margins to significantly increase EPS. • Grow Jack’s Flig
Slide 18: Part 3: Travelzoo META
Part 1: Third Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 18 | Third Quarter 2023 Performance
Slide 19: 19 | Third Quarter 2023 Performance
19 | Third Quarter 2023 Performance
Slide 20: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com