Travelzoo · NASDAQ:TZOO
Travelzoo — Q1 2024 Earnings Presentation
19 slides from Travelzoo's earnings presentation, Apr 24, 2024
Slide 1: First Quarter 2024 Performance
First Quarter 2024 Performance April 24, 2024
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 2024 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secur
Slide 3: Part 1: Performance, Part 2: Management Focus, Part 3: Travelzoo META
Part 1: First Quarter 2024 Performance Part 2: Management Focus Part 3: Travelzoo META 3 | First Quarter 2024 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 31.1 31.0 21.6 22.0 5.6 4.7 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q4 2023 Q1 2024 4 | First Quarter 2024 Performance
Slide 5: Revenue growth in Europe more than offset slight decline in North America
Revenue growth in our Europe segment more than offset a slight decline in North America. North America Business Segment Europe Business Segment Revenue $ millions Q1 2023 14.8 5.9 Q1 2024 14.2 6.7 Operating Profit $ millions Q1 2023 4.5 0.5 Q1 2024 4.4 1.4 5 | First Quarter 2024 Performance
Slide 6: We expect revenue from membership fees to grow over time
On a consolidated level, we expect revenue from membership fees to grow over time. During 2024, membership fees have been waived for legacy Travelzoo members*. Global Revenues $ millions Advertising Membership Fees Other Q1 2023 20.6 0.9 0.0 Q4 2023 20.0 1.0 0.2 Q1 2024 20.9 1.1 0.0 Includes adverti
Slide 7: Membership fee revenue recognized ratably over the subscription period
Revenue from membership fees is recognized ratably over the period of the subscription. Member acquisition costs, on the other hand, are fully recorded immediately. Revenue Recognition $ Example: New member joined on March 1, 2024, paying a membership fee of $40 per annum Q1 2024 Q2 2024 Q3 2024 Q4
Slide 8: Our GAAP operating margin increased to 25%
Our GAAP operating margin increased to 25%. Operating Margin 2017 2018 2019 2020 2021 2022 2023 Q1 2024 25% 18% 11% 9% 7% 4% (2%) (26%) 8 | First Quarter 2024 Performance
Slide 9: 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 Q1 2023 14.8 31% Q2 2023 14.1 27% Q3 2023 13.4 22% Q4 2023 13.8 29% Q1 2024 14.2 31% 9 | First Quarter 2024 Performance
Slide 10: Total non-GAAP operating profit increased to $6.0 million and 27% of revenue
Total non-GAAP operating profit increased to $6.0 million and 27% of revenue. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 6.0 5.5 5.6 0.4 4.7 0.8 Q1 2023 Q1 2024 * GAAP operating profit + amortization of intangibles + stock option expenses + sev
Slide 11: Items excluded in the calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit. $ millions Q1 2023 Q1 2024 Adjustments 0.8 0.4 Impairment of intangibles and goodwill — — Amortization of intangibles 0.4 0.3 Stock option expense 0.4 0.1 Severance-related expenses — — 11 | First Quarter 2024 Performance
Slide 12: Solid cash position even after repurchasing 400,000 shares
We maintained a solid cash position even after repurchasing 400,000 shares during the quarter. Payables to partners decreased by $2.8 million versus Q4 2023. Cash Balance at End of Quarter* $ millions 19.8 16.4 16.9 Q1 2023 Q4 2023 Q1 2024 * Includes cash, cash equivalents and restricted cash 12 | F
Slide 13: We can keep fixed costs relatively low in the foreseeable future
We believe we can keep our fixed costs relatively low in the foreseeable future. Higher revenues would thus increase margins. Non-GAAP adjustments OPEX and cost of revenues Revenue Operating Expenses and Cost of Revenues $ millions $ millions 21.6 22.0 21.1 16.9 16.7 16.4 0.8 0.8 0.4 16.1 15.9 16.0
Slide 14: More than 30 million members, 8 million mobile app users, 4 million followers
With more than 30 million members, 8 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 15: Part 2: Management Focus
Part 1: First Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 15 | First Quarter 2024 Performance
Slide 16: Management focus
Management focus • Grow the number of Travelzoo members. • Leverage strong existing relationships with top travel suppliers and add new relationships to negotiate more exclusive offers. • Utilize higher operating margins to increase EPS. • Grow Jack’s Flight Club’s profitable subscription revenue. •
Slide 17: Part 3: Travelzoo META
Part 1: First Quarter 2024 Performance Part 2: Management Focus Part 3: Travelzoo META 17 | First Quarter 2024 Performance
Slide 18: 18 | First Quarter 2024 Performance
18 | First Quarter 2024 Performance
Slide 19: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com