Travelzoo
NASDAQ:TZOO
Travelzoo
Travelzoo Inc. operates as a global media commerce company that engages in the provision of information to subscribers and website users about travel, entertainment, and local deals available from various companies. The company is headquartered in New York City, New York and currently employs 214 full-time employees. The company went IPO on 2002-08-28. Its segments include Travelzoo North America, Travelzoo Europe and Jack’s Flight Club. Travelzoo North America consists of the Company’s operations in Canada and the United States. Travelzoo Europe consists of the Company’s operations in France, Germany, Spain, and the United Kingdom. Jack’s Flight Club consists of subscription revenue from premium members to access and receive flight deals from Jack’s Flight Club via email or via Android or Apple mobile applications. The Company’s publications and products include the Travelzoo Website (travelzoo.com), the Travelzoo iPhone and Android apps, the Travelzoo Top 20 email newsletter, the Newsflash email alert service and the Travelzoo Network. Its Travelzoo Website includes local deals and getaways listings that allow members to purchase vouchers for deals from local businesses such as spas, hotels and restaurants.
Travelzoo Inc. operates as a global media commerce company that engages in the provision of information to subscribers and website users about travel, entertainment, and local deals available from various companies. The company is headquartered in New York City, New York and currently employs 214 full-time employees. The company went IPO on 2002-08-28. Its segments include Travelzoo North America, Travelzoo Europe and Jack’s Flight Club. Travelzoo North America consists of the Company’s operations in Canada and the United States. Travelzoo Europe consists of the Company’s operations in France, Germany, Spain, and the United Kingdom. Jack’s Flight Club consists of subscription revenue from premium members to access and receive flight deals from Jack’s Flight Club via email or via Android or Apple mobile applications. The Company’s publications and products include the Travelzoo Website (travelzoo.com), the Travelzoo iPhone and Android apps, the Travelzoo Top 20 email newsletter, the Newsflash email alert service and the Travelzoo Network. Its Travelzoo Website includes local deals and getaways listings that allow members to purchase vouchers for deals from local businesses such as spas, hotels and restaurants.
Revenue Growth: Q3 revenue was $22.2 million, up 10% year-over-year, with growth in all reporting segments.
Profitability Impact: Operating profit fell to $0.5 million from $4 million last year, as the company invested heavily in acquiring new Club Members.
Membership Expansion: Club Member growth accelerated 135% year-to-date, with about half coming from new members and half from legacy conversions.
Rising Membership Revenue: Membership fees revenue increased to $3.6 million and is expected to reach about 25% of total revenue next year.
Increased Marketing Spend: Higher marketing expenses drove down EPS by $0.15 this quarter, but management sees quick payback on acquisition costs.
Jack's Flight Club: Revenue up 12% and premium subscribers up 8% year-over-year, with expectations for further subscriber growth in Q4.
Outlook: Management expects revenue growth to continue and accelerate, with profitability to increase as recurring membership revenue builds.
