Travelzoo · NASDAQ:TZOO
Travelzoo — Q4 2024 Earnings Presentation
20 slides from Travelzoo's earnings presentation, Feb 25, 2025
Slide 1: Fourth Quarter 2024 Performance
Fourth Quarter 2024 Performance February 25, 2025
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 fourth quarter 2024 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secu
Slide 3: Part 1: Fourth Quarter 2024 Performance
Part 1: Fourth Quarter 2024 Performance Part 2: Management Focus Part 3: Travelzoo META 3 | Fourth Quarter 2024 Performance
Slide 4: Revenue was lower than expected, but operating profit increased by 8%
Revenue was lower than we expected, but operating profit increased by 8%. Revenue Operating Profit $ millions $ millions 21.1 20.7 4.5 4.9 Q4 2023 Q4 2024 Q4 2023 Q4 2024 4 | Fourth Quarter 2024 Performance
Slide 5: Operating income up and shares down, but EPS was lower
While operating income increased and outstanding shares decreased, EPS was lower. The strong dollar affected the valuation of non-USD cash and there was one-time extraordinary income last year. Operating Income Outstanding Shares EPS $ million Diluted $ per share (0.01) 13,946 0.03 4.9 0.02 12,358 4
Slide 6: Higher profits from North America and Jack's Flight Club
Higher profits came from North America and Jack’s Flight Club. Europe revenue decreased, but we do not view this as a trend. North America Segment Europe Segment Jack’s Flight Club Segment Revenue $ millions Q4 2023 13.8 6.3 0.9 Q4 2024 13.9 5.4 1.3 Operating Profit $ millions Q4 2023 4.0 0.8 (0.2)
Slide 7: Membership fee revenue expected to drive 2025 growth
Membership fee revenue is expected to substantially drive revenue and profit growth in 2025 when the free membership for Legacy Members* phases out. Global Revenues $ millions Advertising Membership Fees Other Q4 2023 19.4 1.2 0.0 Q1 2024 20.9 1.1 0.0 Q2 2024 20.0 1.2 0.0 Q3 2024 18.7 1.4 0.0 Q4 202
Slide 8: Membership fee revenue recognized ratably over subscription period
We recognize revenue from membership fees ratably over the subscription period. Member acquisition costs, however, are fully recorded as expenses immediately. Revenue Recognition $ Example: New member joins on March 15, 2025, paying a membership fee of $40 per annum Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q
Slide 9: GAAP operating margin remained high at 23%
Our GAAP operating margin remained high at 23%. Operating Margin 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 25% 23% 19% 20% 18% 11% 9% 7% 4% (2%) (26%) 9 | Fourth Quarter 2024 Performance
Slide 10: North America and Europe operating margins
In North America, the GAAP operating margin increased to 33%. In Europe, the margin was affected by lower revenue in Germany. North America Operating Margin Europe Operating Margin Q1 2023 31% 8% Q2 2023 27% (4%) Q3 2023 22% 4% Q4 2023 29% 13% Q1 2024 31% 21% Q2 2024 26% 8% Q3 2024 25% 17% Q4 2024 3
Slide 11: Total non-GAAP operating profit was $5.4 million
Total non-GAAP operating profit was $5.4 million or 26% of revenue. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 5.2 5.4 0.5 4.5 0.8 4.9 Q4 2023 Q4 2024 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-rel
Slide 12: Items excluded in calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit: $ millions Q3 2024 Q4 2024 Adjustments 0.9 0.5 Impairment of intangibles and goodwill — — Amortization of intangibles 0.1 0.1 Stock option expense 0.5 0.4 Severance-related expenses 0.3 0.0 12 | Fourth Quarter 2024 Performance
Slide 13: Operating cash flow grew cash position despite share repurchases
With operating cash flow of $7.7 million, our cash position grew—even after repurchasing 135,792 shares during the quarter. Cash Balance at End of Quarter* $ millions 17.7 16.4 12.1 Q4 2023 Q3 2024 Q4 2024 * Includes cash, cash equivalents and restricted cash 13 | Fourth Quarter 2024 Performance
Slide 14: Fixed costs expected to stay relatively low
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 20.7 16.7 20.1 16.1 16.3 0.8 0.9 0.5 15.9 15.2 15.8 Q4 2023 Q3 2024 Q4 2024 Q4 2023 Q3 2024 Q4 2024
Slide 15: Travelzoo is loved by affluent travel enthusiasts
Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. Travelzoo Reaches 30 Million Travelers Travelzoo U.S. Member Survey* October 2024 53% 56% 59% ages 45+ female have the budget 47% ages 18-44** 44% male** to treat themselves and purchase non- essentials 96
Slide 16: Part 2: Management Focus
Part 1: Fourth Quarter 2024 Performance Part 2: Management Focus Part 3: Travelzoo META 16 | Fourth Quarter 2024 Performance
Slide 17: Management focus
Management focus • Grow the number of (paying) members by converting Legacy Members and adding new Club Members. • Add new benefits to the paid membership • Retain, and grow, our profitable advertising business from the popular Top 20® product • Utilize higher operating margins to increase EPS • Gro
Slide 18: Part 3: Travelzoo META
Part 1: Fourth Quarter 2024 Performance Part 2: Management Focus Part 3: Travelzoo META 18 | Fourth Quarter 2024 Performance
Slide 19: 19 | Fourth Quarter 2024 Performance
19 | Fourth Quarter 2024 Performance
Slide 20: Have a good day!
NASDAQ: TZOO HAVE A GOOD DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com