Travelzoo · NASDAQ:TZOO
Travelzoo — Q4 2023 Earnings Presentation
20 slides from Travelzoo's earnings presentation, Feb 28, 2024
Slide 1: Fourth Quarter 2023 Performance
NASDAQ: TZOO Fourth Quarter 2023 Performance February 28, 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 Fourth quarter 2023 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 2023 Performance
Part 1: Fourth Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 3 | Fourth Quarter 2023 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 30.4 31.2 31.1 21.1 18.6 4.5 3.6 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q3 2023 Q4 2023 4 | Fourth Quarter 2023 Performance
Slide 5: Strong revenue growth in Europe and Jack's Flight Club; North America slowed
Strong revenue growth continued in our Europe segment and at Jack’s Flight Club while growth slowed in North America. Year-Over-Year Change in Revenue, Percent Travelzoo North America Europe Jack's Flight Club* 33% 34% 30% 29% 28% 28% 13% 14% 13% 4% 5% 4% FY Q3 Q4 FY Q3 Q4 FY Q3 Q4 FY Q3 Q4 2022 202
Slide 6: Europe segment revenue growing at 34%, returned to profitability
With Europe segment revenue growing at 34%, the segment has now also returned to profitability. North America Business Segment Europe Business Segment Revenue $ millions Q4 2022 13.1 4.7 Q4 2023 13.8 6.3 Operating Profit $ millions Q4 2022 4.2 0.0 Q4 2023 4.0 0.8 6 | Fourth Quarter 2023 Performance
Slide 7: GAAP operating margin was 21% for the fourth quarter
Our GAAP operating margin was 21% for the fourth quarter. Operating Margin 2017 2018 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 22% 21% 15% 15% 11% 9% 7% 4% (2%) (26%) 7 | Fourth Quarter 2023 Performance
Slide 8: 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 Q4 2022 13.1 29% Q1 2023 14.8 31% Q2 2023 14.1 27% Q3 2023 13.4 22% Q4 2023 13.8 29% 8 | Fourth Quarter 2023 Performance
Slide 9: Q4 2023 non-GAAP operating profit was $5.2 million
Q4 2023 non-GAAP operating profit was $5.2 million and 25% of revenue. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 5.2 4.8 4.5 0.8 3.6 1.2 Q4 2022 Q4 2023 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-
Slide 10: Items excluded in the calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit $ millions Q4 2022 Q4 2023 Adjustments 1.2 0.8 Impairment of intangibles and goodwill 0.2 — Amortization of intangibles 0.5 0.4 Stock option expense 0.3 0.4 Severance-related expenses 0.2 — 10 | Fourth Quarter 2023 Performance
Slide 11: Solid cash position even after repurchasing 600,000 shares
We maintained a solid cash position even after repurchasing 600,000 shares during the quarter. Outstanding payables to partners for future voucher redemptions decreased. Cash Balance at End of Quarter* $ millions 19.4 16.6 16.4 Q4 2022 Q3 2023 Q4 2023 * Includes cash, cash equivalents and restricted
Slide 12: North America business segment revenue
North America business segment revenue North America Revenue by Type $ millions YOY % YOY %* change change 13.8 (as reported) (constant F/X) 13.1 0.7 (13%) (13%) 0.8 12.4 13.1 7% 6% Q4 2022 Q4 2023 Local Travel 12 | Fourth Quarter 2023 Performance
Slide 13: Europe business segment revenue
Europe business segment revenue Europe Revenue by Type $ millions YOY % YOY %* change change 6.3 (as reported) (constant F/X) 5.3 0.6 11% 5% 0.6 5.7 37% 30% 4.7 Q4 2022 Q4 2023 Local Travel 13 | Fourth Quarter 2023 Performance
Slide 14: We can keep our fixed costs 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 17.5 20.6 16.7 18.6 15.0 0.8 0.8 1.2 16.7 15.9 13.8 Q4 2022 Q3 2023 Q4 2023 Q4 2022 Q3 2023 Q4 2023
Slide 15: Travelzoo's global reach and high-quality users
With more than 30 million members, 8 million mobile app users, and 5 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 16: Part 2: Management Focus
Part 1: Fourth Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 16 | Fourth Quarter 2023 Performance
Slide 17: Management focus
Management focus • Grow the number of Travelzoo club 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 reven
Slide 18: Part 3: Travelzoo META
Part 1: Fourth Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 18 | Fourth Quarter 2023 Performance
Slide 19: 19 | Fourth Quarter 2023 Performance
19 | Fourth Quarter 2023 Performance
Slide 20: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com