Travelzoo · NASDAQ:TZOO
Travelzoo — Q1 2022 Earnings Presentation
23 slides from Travelzoo's earnings presentation, Apr 26, 2022
Slide 1: First Quarter 2022 Performance
NASDAQ: TZOO First Quarter 2022 Performance April 26, 2022
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 first quarter 2022 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secur
Slide 3: Part 1: First Quarter 2022 Performance
Part 1: First Quarter 2022 Performance Part 2: Management Focus Part 3: Travelzoo META 2 | First Quarter 2022 Performance
Slide 4: Revenues continued to recover from the pandemic and earnings turned positive again in Q1
Revenues continued to recover from the pandemic and earnings turned positive again in Q1. Financial Performance (Continuing Operations) Revenue EPS Members $ millions $ per share 31.8 30.2 30.7 18.5 14.3 13.7 Q1 2021 Q4 2021 0.19 Q1 2021 Q4 2021 Q1 2022 (0.14) Q1 2022 Q1 2021 Q4 2021 Q1 2022 (0.27)
Slide 5: Growth in revenues and profits came in both North America and Europe
Growth in revenues and profits came in both North America and Europe. North America Business Segment Europe Business Segment Revenue $ millions Q1 2021 9.8 3.6 Q4 2021 8.6 4.3 Q1 2022 11.7 5.9 Operating Income $ millions Q1 2021 0.0 (0.7) Q4 2021 (2.2) (1.2) Q1 2022 1.7 0.2 4 | First Quarter 2022 Pe
Slide 6: Non-GAAP operating income was $2.7 million—the highest level in two years
Non-GAAP operating income was $2.7 million—the highest level in two years. Non-GAAP Operating Income* GAAP Operating Income $ millions Adjustments Non-GAAP Operating Income* 0.8 2.7 0.6 1.9 1.4 (0.8) (2.3) (3.6) 1.3 Q1 2021 Q4 2021 Q1 2022 * GAAP operating income + impairment of intangibles and good
Slide 7: Details on items excluded from Non-GAAP operating profit
Here are the details on the items that are excluded in the calculation of Non-GAAP operating profit. $ millions Q1 2021 Q4 2021 Q1 2022 Adjustments 1.4 1.3 0.8 Impairment of intangibles and goodwill 0 0 0 Amortization of intangibles 0.3 0.3 0.2 Stock option expense 0.9 0.9 0.6 Severance-related expe
Slide 8: Cash balance reached a lower, expected level
Our cash balance reached a lower, expected level, as more members travelled and redeemed vouchers. Payables decreased accordingly. Cash Balance at End of Quarter* $ millions 72.0 45.0 36.7 Q1 2021 Q4 2021 Q1 2022 * Includes cash, cash equivalents and restricted cash 7 | First Quarter 2022 Performanc
Slide 9: North America business segment revenue
North America business segment revenue North America Revenue by Type YOY %* YOY % $ millions change change 11.9 11.7 (constant F/X) (as reported) 0.6 0.6 -22% -22% 9.8 0.8 11.3 11.1 26% 26% 9.0 Q1 2021 Q1 2022 Q1 2022 at constant F/X* Local Travel * Based on constant F/X rates for CAD 8 | First Quar
Slide 10: Europe business segment revenue
Europe business segment revenue Europe Revenue by Type $ millions YOY %* YOY % change change 6.2 5.9 (constant F/X) (as reported) 0.3 0.3 16% 12% 3.6 0.3 5.9 5.6 80% 70% 3.3 Q1 2021 Q1 2022 Q1 2022 at constant F/X* Local Travel * Based on constant F/X rates for EUR and GBP 9 | First Quarter 2022 Per
Slide 11: Fixed costs lowered during the pandemic
During the pandemic, we have been able to lower our fixed costs. We believe we can keep them relatively low in the foreseeable future—while revenue is expected to grow. Financial Performance Revenue* Operating Expenses and Cost of Revenues* $ millions $ millions 25.9 25.3 3.7 22.2 17.6 15.1 16.5 18.
Slide 12: Travelzoo's Global Reach
With more than 30 million members, 7 million mobile app users, and 4 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. Member S
Slide 13: Part 2: Management Focus
Part 1: First Quarter 2022 Performance Part 2: Management Focus Part 3: Travelzoo META 12 | First Quarter 2022 Performance
Slide 14: Management Focus
Management Focus • Seize the exceptional industry opportunities for providing 30 million Travelzoo members with exclusive and irresistible travel, entertainment, and local offers and experiences. • Increase members in 2022 and accelerate revenue growth. • Grow Jack's Flight Club’s profitable subscr
Slide 15: Part 3: Travelzoo META
Part 1: First Quarter 2022 Performance Part 2: Management Focus Part 3: Travelzoo META 14 | First Quarter 2022 Performance
Slide 16: 15 | First Quarter 2022 Performance
15 | First Quarter 2022 Performance
Slide 17: What is the Metaverse and why is Travelzoo entering the Metaverse?
What is the Metaverse and why is Travelzoo entering the Metaverse? • Metaverse is a network of highly immersive shared virtual worlds focused on social connection and interaction in a computer-generated 3D environment. • We perceive the Metaverse as disruptive and abundant with lucrative opportuniti
Slide 18: What is the market opportunity?
What is the market opportunity? • The Metaverse market size is estimated to be $800 billion in 2024.* • Approximately $400 billon is the anticipated market size for non-gaming related services. * Bloomberg Intelligence, December 1, 2021 17 | First Quarter 2022 Performance
Slide 19: What is Travelzoo META?
What is Travelzoo META? • Travelzoo META is a paid subscription-based service that provides its members with exclusive access to unique and cutting-edge Metaverse travel and entertainment experiences. • The experiences will be sourced from creators globally. • We are partnering with skilled technolo
Slide 20: What is our strategy?
What is our strategy? • We are building Travelzoo META strategically using a phased approach to judiciously navigate the rapidly changing Metaverse environment. • We will measure and assess the performance of each phase and deploy a process of continuous improvement to monitor progress and pursue ne
Slide 21: What is the investment required?
What is the investment required? • Travelzoo META is being built out in a cost-efficient manner with no significant upfront investment. • The cost of licenses for the experiences will be paid for by pre- registrations initially, and annual subscriptions thereafter. 20 | First Quarter 2022 Performanc
Slide 22: What are the status and timing?
What are the status and timing? • Given the newness of the industry, we are spending additional time finalizing a few important technicalities. • Contingent on the status of our technical requirements, we are now planning to launch Phase 1 in May. • We will provide updates, as appropriate. 21 | Firs
Slide 23: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com