Travelzoo · NASDAQ:TZOO
Travelzoo — Q4 2020 Earnings Presentation
16 slides from Travelzoo's earnings presentation, Mar 17, 2021
Slide 1: Fourth Quarter 2020 Performance
NASDAQ: TZOO Fourth Quarter 2020 Performance March 17, 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 fourth quarter 2020 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Results as filed with the Se
Slide 3: Part 1: Fourth Quarter 2020 Performance; Part 2: Management Focus
2 Part 1: Fourth Quarter 2020 Performance Part 2: Management Focus Fourth Quarter 2020 Performance
Slide 4: We see continued improvement in our business
We see continued improvement in our business. Q4 revenue was not 3 indicative of the trend. EPS was positive. Financial Performance (Continuing Operations) Revenue EPS (basic) $ millions $ per share 13.8 12.5 7.0 Q2 2020 Q3 2020 Q4 2020 0.02 Q2 2020 Q3 2020 Q4 2020 (0.20) (0.48) Fourth Quarter 2020
Slide 5: The financial performance is perfectly in line with our expectations
The financial performance is perfectly in line with our expectations. 4 Non-GAAP Operating Income* GAAP Operating Income $ millions Adjustments Non-GAAP Operating Income* 2.9 0.2 3.1 1.2 0.5 2.4 (0.9) 1.4 (1.2) Q4 2019 Q3 2020 Q4 2020 4.6 * GAAP operating income + impairment of intangibles and goodw
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 Q4 2019 Q3 2020 Q4 2020 Adjustments 0.2 2.4 1.4 Impairment of intangibles 0 0 0 and goodwill Amortization of intangibles 0 0.3 0.3 Stock option expense 0.1 1.2 1.0 Severance-related expe
Slide 7: Cash balance at end of quarter
Our continued success in voucher sales keeps pushing the positive 6 development in cash balance. Cash Balance at End of Quarter* $ millions 64.2 51.7 26.7 13.3 Q1 2020 Q2 2020 Q3 2020 Q4 2020 * Includes cash, cash equivalents and restricted cash Fourth Quarter 2020 Performance
Slide 8: North America business segment revenue
North America business segment revenue 7 North America Revenue by Type $ millions 16.2 2.8 Highlights YOY % YOY %* • Local – YOY 78% decrease change change due to lockdowns in the US (as reported) (constant F/X) and Canada, which closed 8.9 0.6 -78% -78% most restaurants, spas, local businesses and
Slide 9: Europe business segment revenue
Europe business segment revenue 8 Europe Revenue by Type $ millions 9.3 Highlights 1.9 • Local – YOY 69% decrease due to lockdowns in the UK and EU countries, which YOY % YOY %* closed most restaurants, change change spas, local businesses and 7.4 (as reported) (constant F/X) entertainment. 2.7 0.3
Slide 10: Quick adjustment of cost structure has lowered 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 72% 17.2 General & 18% 4.3 Administrative Product 5% 1.3 Development 9.1 73% 2.5 20% Savings across most areas c
Slide 11: Q4 2020 was in line with our expectations
Q4 2020 was in line with our expectations. 10 Financial Performance (Continuing Operations) Revenue Operating Expenses and Cost of Revenues $ millions $ millions 25.7 3.4 22.3 20.3 15.1 ~14.7 13.4 14–15 2.4 1.2 13.8 1.4 12.5 12.7 ~13.5 12.0 Q1 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q3 2020 Q4 2020 Q1
Slide 12: Members have become more active in responding to deals
As vaccinations are progressing and consumer confidence is 11 strengthening, our members have become more active in responding to deals and buying them. Member Activity – U.S. Voucher Purchases – UK YOY change in email-generated user sessions Weekly gross purchases indexed against 2020 average on we
Slide 13: More than 30 million members, 6.5 million app users
With more than 30 million members, 6.5 million mobile app users, 12 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 14: Part 1: Fourth Quarter 2020 Performance; Part 2: Management Focus
13 Part 1: Fourth Quarter 2020 Performance Part 2: Management Focus Fourth Quarter 2020 Performance
Slide 15: Management Focus
Management Focus 14 • Expand and seize the exceptional industry opportunities 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. • Grow Jack's Flight Club’s profitable subscription revenue. •
Slide 16: Thank You
NASDAQ: TZOO THANK YOU For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com