Travelzoo · NASDAQ:TZOO
Travelzoo — Q2 2023 Earnings Presentation
26 slides from Travelzoo's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Performance
NASDAQ: TZOO Second Quarter 2023 Performance July 27, 2023
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 second 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: Second Quarter 2023 Performance
Part 1: Second Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 2 | Second Quarter 2023 Performance
Slide 4: Revenue up 19%, operating profit up 84% year-over-year
Revenue was up 19%, and operating profit was up 84% year-over-year. Revenue Operating Profit Members $ millions $ millions Millions 30.7 30.5 30.8 21.1 17.7 3.3 1.8 Q2 2022 Q2 2022 Q2 2022 Q2 2023 Q2 2022 Q1 2023 Q2 2023 3 | Second Quarter 2023 Performance
Slide 5: Revenue growth accelerated, particularly in Europe and Jack's Flight Club
Revenue growth accelerated over Q1 and the previous year, particularly in Europe and at Jack's Flight Club. Year-Over-Year Change in Revenue, Percent Travelzoo North America Europe Jack's Flight Club/ New Initiatives 35% 26% 19% 17% 16% 14% 15% 13% 13% 12% (1%) 4% FY Q1 Q2 FY Q1 Q2 FY Q1 Q2 FY Q1 Q2
Slide 6: North America and Europe segment revenue growth
North America segment revenue increased 14% and Europe segment revenue increased 35% year-over-year. North America Business Segment Europe Business Segment Revenue $ millions Q2 2022 12.4 4.4 Q2 2023 14.1 5.9 Operating Profit $ millions Q2 2022 3.3 (1.5) Q2 2023 3.8 (0.2) 5 | Second Quarter 2023 Per
Slide 7: GAAP operating margin reached 15%
Our GAAP operating margin reached 15% in this seasonally slower quarter. Operating Margin 2017 2018 2019 2020 2021 2022 Q1 2023 Q2 2023 22% 15% 11% 9% 7% 4% (2%) (26%) 6 | Second Quarter 2023 Performance
Slide 8: North America GAAP operating margin was 27%
In North America, the GAAP operating margin was 27%. North America Business Segment Revenue Operating Margin $ millions Percent 8% Q3 2022 10.5 Q4 2022 13.1 29% Q1 2023 14.8 31% Q2 2023 14.1 27% 7 | Second Quarter 2023 Performance
Slide 9: Q2 2023 non-GAAP operating profit was $4.1 million
Q2 2023 non-GAAP operating profit was $4.1 million. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 0.9 4.1 3.3 0.8 2.6 2.6 1.8 Q2 2022 Q2 2023 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-related expense
Slide 10: Items excluded in non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit $ millions Q2 2022 Q2 2023 Adjustments 0.8 0.9 Impairment of intangibles and goodwill — — Amortization of intangibles 0.2 0.4 Stock option expense 0.6 0.4 Severance-related expenses — 0.1 9 | Second Quarter 2023 Performance
Slide 11: Reduced merchant payables while maintaining cash position
While we reduced merchant payables by $4.0 million, we maintained our cash position. Cash Balance at End of Quarter* $ millions 26.7 19.8 20.2 Q2 2022 Q1 2023 Q2 2023 * Includes cash, cash equivalents and restricted cash 10 | Second Quarter 2023 Performance
Slide 12: North America business segment revenue
North America business segment revenue North America Revenue by Type $ millions YOY % YOY %* change change 14.1 (as reported) (constant F/X) 0.7 (28%) (27%) 12.3 0.9 13.4 18% 18% 11.4 Q2 2022 Q2 2023 Local Travel 11 | Second Quarter 2023 Performance
Slide 13: Europe business segment revenue
Europe business segment revenue Europe Revenue by Type $ millions YOY % YOY %* change change 5.9 (as reported) (constant F/X) 0.3 21% 22% 4.4 0.3 5.6 36% 37% 4.1 Q2 2022 Q2 2023 Local Travel 12 | Second Quarter 2023 Performance
Slide 14: Keeping fixed costs relatively low
We believe we can keep our fixed costs relatively low in the foreseeable future. Higher revenues will thus increase margins. Revenue Operating Expenses and Cost of Revenues $ millions $ millions 21.6 17.8 21.1 16.9 15.9 0.9 17.7 0.8 0.8 16.9 16.1 15.1 Q2 2022 Q1 2023 Q2 2023 Q2 2022 Q1 2023 Q2 2023
Slide 15: Travelzoo's global reach and high-quality members
With more than 30 million members, 7.5 million mobile app users, and 4.1 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. Memb
Slide 16: Part 2: Management Focus
Part 1: Second Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 15 | Second Quarter 2023 Performance
Slide 17: Management focus
Management focus • Reach and surpass pre-pandemic number of members and accelerate revenue growth. • Utilize higher operating margins to significantly increase EPS. • Grow Jack’s Flight Club’s profitable subscription revenue. • Develop Travelzoo META with discipline. 16 | Second Quarter 2023 Perform
Slide 18: Part 3: Travelzoo META
Part 1: Second Quarter 2023 Performance Part 2: Management Focus Part 3: Travelzoo META 17 | Second Quarter 2023 Performance
Slide 19: 18 | Second Quarter 2023 Performance
18 | Second Quarter 2023 Performance
Slide 20: Travelzoo META: Update
Travelzoo META: Update • We opened for Founding Membership in Q2 2023. The website is meta.travelzoo.com. • We are accepting 1 million Founding Members—the early adopters of Travelzoo META who will play a pivotal role in shaping the future of travel in the Metaverse. • Founding Membership is a one-t
Slide 21: Travelzoo META: Founding Members only interactive gallery
Travelzoo META: Founding Members only interactive gallery 20 | Second Quarter 2023 Performance
Slide 22: Travelzoo META: Founding Members only interactive gallery
Travelzoo META: Founding Members only interactive gallery 21 | Second Quarter 2023 Performance
Slide 23: Travelzoo META: Founding Members only interactive gallery
Travelzoo META: Founding Members only interactive gallery 22 | Second Quarter 2023 Performance
Slide 24: Travelzoo META: Founding Members only interactive gallery
Travelzoo META: Founding Members only interactive gallery 23 | Second Quarter 2023 Performance
Slide 25: Travelzoo META: Travel Companions
Travelzoo META: Travel Companions 24 | Second Quarter 2023 Performance
Slide 26: Have a nice day!
NASDAQ: TZOO HAVE A NICE DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com