Travelzoo · NASDAQ:TZOO
Travelzoo — Q2 2021 Earnings Presentation
16 slides from Travelzoo's earnings presentation, Jul 21, 2021
Slide 1: Second Quarter 2021 Performance
NASDAQ: TZOO Second Quarter 2021 Performance July 21, 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 second quarter 2021 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Results as filed with the Se
Slide 3: Part 1: Second Quarter 2021 Performance; Part 2: Management Focus
2 Part 1: Second Quarter 2021 Performance Part 2: Management Focus Second Quarter 2021 Performance
Slide 4: Our business is recovering faster than expected
Our business is recovering faster than expected. With increasing 3 revenues we made a solid operating profit. Financial Performance (Continuing Operations) Revenue Operating Income Members $ millions $ millions 31.8 31.3 19.1 29.3 14.3 7.0 3.5 Q2 2020 Q1 2021 Q2 2020 Q1 2021 Q2 2021 (0.8) Q2 2021 Q2
Slide 5: North America is recovering faster than Europe
North America is recovering faster than Europe. With our adjusted cost 4 structure, operating profit is already equal to 2019. North America Business Segment Europe Business Segment Revenue $ millions Q2 2019 17.9 8.7 Q2 2020 4.2 1.7 Q2 2021 14.0 4.2 78% 48% Operating Income $ millions Q2 2019 3.6 0
Slide 6: Non-GAAP operating profit increased to 26% of revenues
Non-GAAP operating profit, which we use to measure our financial 5 performance, increased to 26% of revenues. Non-GAAP Operating Income* GAAP Operating Income $ millions Adjustments Non-GAAP Operating Income* 1.4 4.9 3.5 0.6 (0.8) 1.4 (2.1) (6.6) 4.5 Q2 2020 Q1 2021 Q2 2021 * GAAP operating income +
Slide 7: Details on items excluded from Non-GAAP operating profit
Here are the details on the items that are excluded in the calculation 6 of Non-GAAP operating profit. $ millions Q2 2020 Q1 2021 Q2 2021 Adjustments 4.5 1.4 1.4 Impairment of intangibles and 0.0 0.0 0.0 goodwill Amortization of intangibles 0.4 0.3 0.3 Stock option expense 4.1 0.9 0.9 Severance-rela
Slide 8: Positive development in cash balance from voucher sales
Our continued success in voucher sales keeps pushing the positive 7 development in cash balance. Cash Balance at End of Quarter* $ millions 82.1 72.0 64.2 51.7 26.7 13.3 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 * Includes cash, cash equivalents and restricted cash Second Quarter 2021 Performa
Slide 9: North America business segment revenue
North America business segment revenue 8 North America Revenue by Type $ millions YOY %* YOY % change change 13.9 14.0 (constant F/X) (as reported) 0.9 0.9 212% 214% 13.0 13.1 233% 235% 4.2 0.3 3.9 Q2 2020 Q2 2021 Q2 2021 at constant F/X* Local Travel * Based on constant F/X rates for CAD Second Qua
Slide 10: Europe business segment revenue
Europe business segment revenue 9 Europe Revenue by Type $ millions YOY %* YOY % change change 4.2 (constant F/X) (as reported) 3.8 0.4 0.5 347% 404% 1.9 0.1 3.4 3.7 91% 112% 1.8 Q2 2020 Q2 2021 Q2 2021 at constant F/X* Local Travel * Based on constant F/X rates for EUR and GBP Second Quarter 2021 P
Slide 11: Quick cost structure adjustment resulted in lower fixed costs
The quick adjustment of our cost structure right at the beginning of the 10 pandemic has resulted in ongoing lower fixed costs. Non-GAAP Operating Expenses* (All Business Segments) $ millions 19.5 General & 4.6 Savings across most areas Administrative come from business and process optimizations. Pr
Slide 12: Mostly fixed operating expenses; profits expected to increase with revenue
As our operating expense consists of mostly fixed costs, we expect 11 profits to increase if revenues continue to rise. Financial Performance (Continuing Operations) Revenue Operating Expenses and Cost of Revenues $ millions $ millions 20-21 ~16.5 19.1 15.1 15.6 13.6 1.4 1.4 1.4 14.3 13.7 14.2 4.5 ~
Slide 13: Travelzoo's global reach and high-quality members
With more than 30 million members, 6.8 million mobile app users, 12 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 14: Part 1: Second Quarter 2021 Performance; Part 2: Management Focus
13 Part 1: Second Quarter 2021 Performance Part 2: Management Focus Second Quarter 2021 Performance
Slide 15: Management Focus
Management Focus 14 • Seize the exceptional industry opportunities for providing 30 million Travelzoo members exclusive and irresistible travel, entertainment, and local offers and experiences. • Continue to offer Travelzoo members flexible and worry- free deals for future travel—a format that is w
Slide 16: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com