Travelzoo (TZOO) Bundle
A Brief History of Travelzoo
Company Overview
Travelzoo, founded in 1998, has established itself as a leading global Internet media company that provides travel and entertainment deals to its members. As of September 30, 2024, Travelzoo boasts a membership base of approximately 30.1 million members worldwide, with significant representation in North America and Europe.
Financial Performance
In the third quarter of 2024, Travelzoo reported consolidated revenue of $20.1 million, a decrease of 2% year-over-year. The company’s operating profit for the same period was $4.0 million, with a non-GAAP operating profit of $4.9 million .
Segment Performance
The performance by geographical segment for Q3 2024 is reported as follows:
| Segment | Revenue (in millions) | Operating Profit (in millions) | Operating Profit Margin (%) |
|---|---|---|---|
| North America | $12.8 | $3.2 | 25% |
| Europe | $6.1 | $1.0 | 17% |
| Jack's Flight Club | $1.2 | $0.1 | 8.3% |
| New Initiatives | $0.03 | ($0.16) | N/A |
Cash Position
As of September 30, 2024, Travelzoo reported consolidated cash, cash equivalents, and restricted cash totaling $12.1 million. The net cash provided by operations for the quarter was $5.3 million .
Income and Earnings
Travelzoo's net income attributable to the company for Q3 2024 was $3.2 million, translating to earnings per share (EPS) of $0.26, compared to $0.16 in the prior year . Here’s a summary of income performance:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $3.2 | $2.4 |
| EPS (Basic) | $0.26 | $0.16 |
Membership and Subscriber Growth
Travelzoo has seen growth in its membership base, with 15.8 million unduplicated members in North America and 9.1 million in Europe as of September 30, 2024. Additionally, Jack’s Flight Club had 2.1 million subscribers .
Recent Developments
In December 2023, Travelzoo announced the introduction of a membership fee effective January 1, 2024, which is expected to generate additional revenue starting in 2025 . The company repurchased 552,679 shares of its common stock during Q3 2024 .
Income Tax and Future Outlook
A provision of $1.1 million for income taxes was recorded for Q3 2024, reflecting an increase from $1.0 million in the prior-year period . For Q4 2024, Travelzoo anticipates year-over-year revenue growth, although at a reduced pace compared to 2023 .
A Who Owns Travelzoo (TZOO)
Major Shareholders
As of 2024, Travelzoo (NASDAQ: TZOO) has a diversified ownership structure consisting of institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 9.65% | Institutional Investor |
| The Vanguard Group, Inc. | 7.84% | Institutional Investor |
| Wellington Management Company, LLP | 5.72% | Institutional Investor |
| Holger Bartel | 4.32% | Insider |
| State Street Corporation | 4.10% | Institutional Investor |
| Other Individual Shareholders | 64.37% | Retail Investors |
Insider Ownership
Insider ownership plays a significant role in Travelzoo's governance. As of September 30, 2024, the following executives hold notable shares:
- Holger Bartel - CEO, holds approximately 4.32% of the company's shares.
- Other executive officers collectively hold about 1.5% of the shares.
Stock Performance
Travelzoo's stock performance has shown volatility in recent years. As of October 2024, the stock price is approximately $7.00 per share, reflecting a year-to-date decline of 5%. The market capitalization of Travelzoo is approximately $80 million.
Recent Financial Performance
For the third quarter of 2024, Travelzoo reported the following financial highlights:
- Revenue: $20.1 million, down 2% year-over-year.
- Operating Profit: $4.0 million.
- Net Income: $3.2 million, or $0.26 per share.
Membership and Subscriber Base
As of September 30, 2024, Travelzoo had a total of 30.1 million members and subscribers worldwide:
- North America: 15.8 million members.
- Europe: 9.1 million members.
- Jack's Flight Club: 2.1 million subscribers.
Cash Position
Travelzoo's cash position is as follows:
- Cash and cash equivalents: $12.1 million as of September 30, 2024.
- Net cash provided by operations: $5.3 million.
Share Repurchase Program
During Q3 2024, Travelzoo repurchased 552,679 shares of its common stock, demonstrating a commitment to returning value to shareholders.
Future Outlook
Looking ahead, Travelzoo expects growth in revenue year-over-year, albeit at a smaller pace than in 2023. The introduction of a membership fee starting January 1, 2024, is anticipated to enhance revenue streams moving forward.
Travelzoo (TZOO) Mission Statement
Travelzoo's mission is to be the leading global internet media company that provides members with exclusive travel deals and experiences. As of 2024, Travelzoo emphasizes leveraging its global reach and trusted brand to inspire members to explore new destinations. The company aims to enhance the travel experience by connecting its affluent and active members with top travel suppliers and unique offers.
Key Financial Metrics
As of the third quarter of 2024, Travelzoo reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $20.1 million | $20.6 million | -2% |
| Operating Profit | $4.0 million | $3.1 million | 29% |
| Net Income | $3.2 million | $2.4 million | 33% |
| Earnings Per Share (EPS) | $0.26 | $0.16 | 63% |
| Cash Position | $12.1 million | $16.6 million | -27% |
Membership and Subscriber Data
As of September 30, 2024, Travelzoo's membership statistics are as follows:
| Region | Members/Subscribers |
|---|---|
| Worldwide | 30.1 million |
| North America | 15.8 million |
| Europe | 9.1 million |
| Jack's Flight Club Subscribers | 2.1 million |
Revenue Breakdown by Segment
Travelzoo's revenue for Q3 2024 by business segment is detailed below:
| Segment | Revenue (in millions) | Operating Profit (in millions) |
|---|---|---|
| North America | $12.8 | $3.2 |
| Europe | $6.1 | $1.0 |
| Jack's Flight Club | $1.2 | $0.1 |
| New Initiatives | $0.03 | -$0.16 |
Operating Expenses
For Q3 2024, Travelzoo's operating expenses are summarized as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Sales and Marketing | $8.2 |
| Product Development | $0.6 |
| General and Administrative | $4.7 |
| Total Operating Expenses | $13.5 |
Future Outlook
Looking ahead, Travelzoo anticipates growth in revenue for Q4 2024, although at a slower pace than in 2023. The company expects higher profitability year-over-year and quarter-over-quarter, supported by the introduction of a membership fee starting January 1, 2024, which is projected to enhance revenue streams from 2025 onwards.
How Travelzoo (TZOO) Works
Company Overview
Travelzoo Inc. (NASDAQ: TZOO) operates as a global Internet media company. It provides travel, entertainment, and lifestyle deals through its website and other digital platforms. As of September 30, 2024, Travelzoo has approximately 30.1 million members worldwide, with significant segments in North America and Europe.
Financial Performance
For the third quarter of 2024, Travelzoo reported a consolidated revenue of $20.1 million, which represents a 2% decrease from the previous year. The breakdown of revenue sources includes:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Operating Profit (Q3 2024) | Operating Profit (Q3 2023) |
|---|---|---|---|---|
| North America | $12.8 million | $13.1 million | $3.2 million (25% of revenue) | $3.0 million |
| Europe | $6.1 million | $6.0 million | $1.0 million (17% of revenue) | $267,000 |
| Jack’s Flight Club | $1.2 million | $1.1 million | $85,000 | $144,000 |
| New Initiatives | $33,000 | $28,000 | $(160,000) | $(317,000) |
Profitability Metrics
Travelzoo’s net income for the third quarter of 2024 was $3.2 million, or $0.26 per share. This marks an increase from $2.4 million, or $0.16 per share, in Q3 2023. The company reported a non-GAAP operating profit of $4.9 million for Q3 2024.
Cash Position
As of September 30, 2024, Travelzoo had consolidated cash, cash equivalents, and restricted cash amounting to $12.1 million. The net cash provided by operations for Q3 2024 was $5.3 million.
Membership and Subscriber Growth
Travelzoo's membership base has shown significant growth:
- North America: 15.8 million unduplicated members
- Europe: 9.1 million unduplicated members
- Jack’s Flight Club: 2.1 million subscribers (including premium subscribers)
Operational Segments
The operational segments of Travelzoo include:
- North America: Focused on travel deals and offers.
- Europe: Similar offerings with localized content.
- Jack’s Flight Club: Membership subscription service for flight deals.
- New Initiatives: Includes licensing agreements and new business models.
Licensing Agreements
Travelzoo has entered into licensing agreements to expand its brand presence:
- Japan: $7,000 in licensing revenue for Q3 2024
- Australia, New Zealand, and Singapore: $10,000 in licensing revenue for Q3 2024
Share Repurchase Program
During Q3 2024, Travelzoo repurchased 552,679 shares of its outstanding common stock.
Income Tax Provision
For Q3 2024, Travelzoo recorded a provision for income taxes amounting to $1.1 million, compared to $1.0 million in the prior-year period.
Financial Summary
The following table summarizes key financial figures:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Consolidated Revenue | $20.1 million | $20.6 million |
| Net Income | $3.2 million | $2.4 million |
| EPS (Basic) | $0.26 | $0.16 |
| Operating Profit | $4.0 million | $3.1 million |
| Cash and Cash Equivalents | $12.1 million | $16.6 million |
Future Outlook
Travelzoo anticipates growth in revenue for Q4 2024, with expected higher profitability year-over-year and quarter-over-quarter, driven by additional revenue from membership fees introduced in January 2024.
How Travelzoo (TZOO) Makes Money
Revenue Sources
Travelzoo generates revenue through multiple channels, primarily including:
- Advertising Revenues - Derived from partnerships with travel suppliers to promote deals to members.
- Commissions - Earned on purchases made by Travelzoo members through their platform.
- Membership Fees - Starting January 1, 2024, Travelzoo introduced a membership fee for new members.
Financial Performance Overview
As of the third quarter of 2024, Travelzoo reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $20.1 million | $20.6 million |
| Operating Profit | $4.0 million | $3.1 million |
| Net Income | $3.2 million | $2.4 million |
| Earnings Per Share (EPS) | $0.26 | $0.16 |
Segment Performance
Travelzoo's revenue is segmented into different geographical regions and initiatives:
| Segment | Q3 2024 Revenue | Operating Profit |
|---|---|---|
| Travelzoo North America | $12.8 million | $3.2 million (25% of revenue) |
| Travelzoo Europe | $6.1 million | $1.0 million (17% of revenue) |
| Jack’s Flight Club | $1.2 million | $0.085 million |
| New Initiatives | $33,000 | Loss of $160,000 |
Membership and Subscribers
As of September 30, 2024, Travelzoo had:
- 30.1 million members and subscribers worldwide.
- 15.8 million members in North America.
- 9.1 million members in Europe.
- 2.1 million subscribers at Jack’s Flight Club.
Cost Structure
Travelzoo's operating expenses for Q3 2024 were as follows:
| Expense Type | Amount (Q3 2024) |
|---|---|
| Sales and Marketing | $8.2 million |
| Product Development | $594,000 |
| General and Administrative | $4.7 million |
| Total Operating Expenses | $13.5 million |
Cash Flow and Financial Position
As of September 30, 2024, Travelzoo's cash position included:
- Cash, cash equivalents, and restricted cash: $12.1 million
- Net cash provided by operations: $5.3 million
Future Outlook
For Q4 2024, Travelzoo anticipates revenue growth year-over-year and increased profitability quarter-over-quarter, with expectations for substantial growth in 2025 due to additional membership fee revenues.
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Article updated on 8 Nov 2024
Resources:
- Travelzoo (TZOO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Travelzoo (TZOO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Travelzoo (TZOO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.