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Travelzoo Stock Price: Quote, Forecast, Splits & News (TZOO)

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Company Profile

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Travelzoo Price & Performance (TZOO)

Stock Performance

Updated Mar 14, 8:00 PM UTC

TZOO:NASDAQ

$14.48USD

3.72% · $0.52

After Hours

-1.02% · $0.15

Open

$14.26

High

$14.65

Low

$14.00

Market Cap

$170.93M

P/E Ratio

13.7

Volume

143.53K

Year High

$24.85

Year Low

$7.12

News & Market Insights

Travelzoo Faces Downgraded Projections After Earnings Miss
Mar 12, 2025
Travelzoo's full-year financial results revealed a revenue alignment with expectations but a 3% shortfall in earnings per share, leading analysts to lower their 2025 revenue and EPS forecasts. Despite a projected 14% revenue growth for 2025, the consensus price target dropped by 7%, reflecting reduced confidence in its valuation.123
CEO's Stock Sale Raises Questions Amid Travelzoo's Momentum
Mar 10, 2025
Travelzoo CEO Holger Bartel sold 4,000 shares for an average price of $15.42, signaling potential caution despite the stock's 60% annual gain. This follows Q4 results that missed earnings and revenue expectations but showed an 8% rise in operating income, highlighting mixed signals for the company's strategic direction.456
Insider Sales and Analyst Cuts Impact Travelzoo's Outlook
Feb 25, 2025
Recent insider sales, including a major shareholder offloading 40,000 shares, coincide with analysts lowering Travelzoo's price target to $17.00. While insider ownership remains high at 38%, the company faces challenges after missing Q4 revenue forecasts, raising questions about its near-term performance.789

What's Happening

Peers

Earnings

Report Date

Feb 25, 2025

Reported Revenue

20.7M

Avg 1d Change

11.36%

Report Period

Q4 2024

Reported EPS

0.26

Implied Move 1d

13.27%

Transcript

11m

Jeff will start with an overview. Great. Thank you, operator. Welcome to those of you joining us. I'm stepping into the Leju and Chief our Chief Accounting Officer. Please refer to the management presentation to follow along with our prepared remarks. The presentation in PDF format is available on our Investor Relations site at travazim.com/ Let's begin with Slide four. Travelzoo's consolidated Q4 revenue was $20,700,000 down 2% from the prior year. In constant currencies, revenue was $20,600,000 Operating income which we've management call operating profit, increased 8% year over year. Q4 operating profit was 4,900,000.0 or 24% of revenue, up from $4,500,000 in the prior year. While operating income increased and outstanding shares decrease, EPS was slightly lower compared to last year and we'd like to explain why. Year ago, extraordinary income from discontinued operations and relatively high other income from favorable FX trends added $0.05 to quarterly EPS. This year, a strong dollar at the end of twenty twenty four led to negative other end and impacted EPS negatively. Without these effects, the EPS would, in management's opinion, better reflect the positive earnings trend. And JAX Flight Club segments. While revenues in Europe were lower. This was caused primarily by fluctuations in Germany which we do not view as a trend.

12m 36s

Operating profit increase in both our North America and Flight Club segments that decreased in our Europe segment On Slide seven, we break down our categories of revenue. Advertising, membership fee and other. Advertising revenue was $19,100,000 for Q4 twenty twenty four, Revenue for membership fees increased to $1,600,000 dollars We expect this revenue to grow substantially in 2025. 2024, we introduced a membership fee for Travelzoo. Legacy members, who joined before 2024 were exempt from the CE during 2024. Legacy members represent more than 95% of Travelzoo this reach. In 2025, legacy members continue to receive certain travel offers. But club offers and new benefits are only available to club members. We generally see legacy members being excited to become club members. Slide eight shows an example of membership fee revenue Revenue from membership fees is recognized ratably over period of subscription. Member acquisition costs on the other hand are recognized painful at the time of the expense.

13m 46s

On Slide nine, you can see that our GAAP operating margin was 20% in Q4 twenty twenty four. Slide 10 shows that in North America, the GAAP operating margin increased to 33% for Q4 twenty twenty. On Slide 11, we provide information on non GAAP operating profit as we believe better explains how Travelzoo's management evaluates financial performance. Q4 twenty twenty four non GAAP operating dollars that's 26% of revenue compared to non GAAP operating profit of $5,200,000 in the prior year period, Slide 12 provides information about the items excluded in calculation of non GAAP operating profit. Please Our solid cash position grew even after repurchasing 135,792 shares of the company's outstanding common stock, As of 12/31/2024, consolidated cash cash equivalents and restricted cash was $17,700,000 Slide 14 shows how revenues compared to Most of the company's operating expenses except for marketing, are relatively fixed in the short to mid term. We believe we can keep fixed costs relatively low in the foreseeable future. Higher revenues would thus increase operating margin. Now looking ahead, in Q1 twenty twenty five, expect revenue to increase at a higher pace. The pro rata portion of membership fee revenue will already add 5% incremental growth this quarter.

15m 30s

This percentage is expected to increase over subsequent over the subscription period. We acquire new members and more legacy members become club members. For the whole year, we expect substantially higher revenue growth. Over time, we expect profitability to further increase as recurring membership fee revenue will be recognized. I'll now turn the discussion over to Holder. Thank you, Jeff. We will continue to leverage [indiscernible] global reach, our trusted brand and strong relationships suppliers to negotiate more club offers for club members. Travel through members are affluent active and open to new experiences. We inspire travel enthusiasts to travel to places they never imagined they could. Travelzoo is the must have membership for those who love to travel much as we do, Slide 15 provides more information about travel to members. 91% say that they are open to new We are the club of travel enthusiasts. Slide 17 provides an overview of management's focus. We are working to grow the number of paying members as we continue to convert legacy members and add new club members add new benefits to make paid mark membership even more valuable retain and grow our profit profitable advertising business from the Popular Top 20 product utilize higher operating margins to increase EPS Grow Chek Flight Club's profitable subscription revenue develop Travelzoo through meta with discipline.

17m 20s

Now, Kristina will provide a quick update on Travelzoo Meta and Jack Thank you, Holger.

17m 30s

We continue to work on the production of the first metaverse travel experiences. They will be browser enabled stated in previous earnings calls, we are conscious of developing Travelzoo in a financially disciplined way. We will provide additional updates in mid time. Jack's Flight Club in 2024 is expanded the team and increased marketing spend. We increased premium members, We also grew revenue 19% year over year. We continue to generate operating profit. We are well positioned for 2025 to continue this growth trajectory. With a focus on further penetration of both the Canadian and U. S. Markets. I'm now handing over to the operator for questions for Jeff, Holger and me. And we'll take our first question [indiscernible] Kupinski with Noble Capital Markets. Please go ahead.

18m 38s

Thank you. Yes, my question is really related around the subscriptions. Was wondering if you can give us some color on the added value that you're offering for the subscriptions, the pricing, and maybe on the experience so far that you've had with your subscription, how many legacy members do you anticipate to convert to subscriptions And any other additional color that you can give us about how your advertisers are viewing the the subscription offerings and how that is being balanced I guess, with your legacy advertising partners? Hi, Michael. Yes, that's a bunch of questions. So let me start off. The membership is a twelve month membership in The U. S. It's $40 In the other markets, it's around the same. In local currency, And what you receive for that is really all the Travelzoo offers and InfoZoo Travelzoo we have started producing club offers, which are offers that only those who pay for the membership have access to We just came off the last couple of days, our first member days. Member days is an event four times a year.

19m 53s

Where we have special offers exclusive offers for our club members. And those were really quite amazing, I would say. We had for example, a lot of hotels for $99 unheard of. It's a four star hotel centrally located very, very well. We do the TripAdvisor.

20m 15s

We Have A Europe trip with flights for €2.99 We have we had a countryside escape in The UK for £99 with dinner and hotel and breakfast, I mean, quite unbelievable. That's what I'm just giving these examples because that's what's attracting both new members as well as legacy members to convert. How is it going so far? Well, it's all going according to our plans. And it's in line with expectation. We don't release a specific number, but we had a good number of legacy members who already converted to paying members. Before the end of last year. And as we are introducing this club offers and additional member benefits, which are exclusive to the members, This motivates legacy member conversion [indiscernible] the current quarter and over the future, We also see better results in new member acquisition. We have finally built a robust model that allows us to acquire new members at a cost that works for us. So now we have started scaling. In Q1, for example, already on pace to acquire more new members for market than we did entire last year. So we are seeing more growth. And then last our advertisers continue to reach the Travelzoo that they used to reach in the past, So certainly, there's a lot of questions about what's going on.

21m 52s

But they are offers reached the same people. And actually, even more people than in the past. And thing we're also learning is those that have switched to the paid membership model are much more active at much more almost glued to receiving our e mail at top 20. It's a little bit like for sure, when you pay for something, you want to take advantage So the responses, both in terms of activity, click level, purchases that we are seeing from those who have become members of travel through are quite impressive compared to what we saw before. Okay. Thanks for that color. Just a follow-up.

22m 38s

You indicated that there will be an incremental $8,300,000 I think or 5% of revenue growth from subscription in the first quarter. Can you talk about the current trends that you're seeing for travel and update us on differences between North America and Europe?

22m 53s

Outside of the subscription. I would say in The U. S, people, I mean, in The U. S, the economy is doing quite well. There is now more uncertainty from a political perspective and particularly to what it means for consumers, But look, the very, very budget Kornish's Travelzoo a bit hesitant from what we are seeing, but that's not really our member base Our member base is more affluent as we saw earlier from the chart. And higher end luxury travel in The U. S. And in Canada is still doing quite well. In Europe, I would say we see a little bit more hesitation on consumer side, but that's as I always say, that's good for us because if all hotels in London were full, we certainly wouldn't offer a $99 room night the Century located four star hotel for our highly valued travel team Travelzoo, they wouldn't do that. So I'm happy that it was almost a craziness of what we saw our after COVID, I mean, the quality of events travel. All travel companies were so busy. That has certainly ebb and that's good news for us.

24m 12s

Thank you for taking my questions. Appreciate it.

24m 17s

Thank you. And we will take our next question from Patrick Scholl with Barrington Research. Please go ahead. Hi.

24m 26s

I was wondering if you could maybe talk about Like the continued engagement levels of like the of the numbers that haven't joined Club and what I guess sort of has been what tends to encourage them to join? I guess just what share of of those numbers kind of joined ahead of year end and maybe just talking about like if you could talk a little bit [indiscernible] who has how many have joined since the start of the So we don't, Pat, we don't see much of a change in the behavior of the ones that have not become paying members yet. Fee rates are still on click rates per email, so if you are similar to what we saw last year. And we're not specifically deleting information, how many members have converted. Don't want to talk about that. But what I can tell you is that we are currently on pace that at the end of Q1, we will have 50% more paying members than we had at the end of last year and that focus in one quarter is It's good for us and makes us happy, but maybe, Cristina, you can speak a little bit about what motivates legacy members to become members paying members because there's more than just the office.

25m 59s

There's whole range of things that benefit from. Christine, I want to speak about the four minute Sure. In addition to the offers, which we really believe are the core the membership and the service the great service that we've always provided of researching and vetting the off and identifying these offers. We are also adding other benefits In Q4, we added lounge access for Go8 flights and saw quite a good response. Both from legacy members who were interested in that benefit and also from those external to travel due. We've also launched a weekly giveaway where club members have the opportunity to to win to be randomly selected to select any top 20 offer that they would like to take for free.

26m 53s

In addition to that, we've been building out our member service services and have priority member services for club members. And we're excited to potentially add additional benefits as the year Okay. And then you had mentioned weakness in Germany. I guess, can you maybe talk about why you feel that that was more of a one off And maybe just additional commentary around [indiscernible] around Europe and the ad market there. Are there like any it's marketing expenses that you're pulling back on in order to [indiscernible] the PACE service Great. So Europe, we were not happy with Europe in Q4.

27m 42s

Very clearly. And we were disappointed, particularly with Germany. Well, fluctuations were a result of manufacturers. So just some examples, some destination advertising, did not run as planned, some revenue got delayed. Cruise advertising was slow. Then on top of that, on the accounting side, we had higher true up of annual breakage revenue. We have to do that once a year.

28m 7s

It's a true up versus estimates that came in higher than what we expect because more people use And then look, the political turmoil turmoil in Germany in Q4 where the government signed, they just had elections last weekend. All of that didn't help either. Many consumers and travel companies just went into a holding pattern. And as you see, I just all these things came together all at once. But as we said earlier, we don't see that as a trend that would worry us at this time.

28m 41s

Okay. Thank you. Thank you. And we will take our next question from Steve Silver with Argus Research. Please go ahead.

28m 53s

Thanks, operator, and thanks for taking my question. And congratulations on reaching positive net cash Looks like this quarter the cash is outpacing the merchant payables for the first time since the pandemic. So congratulations You guys have been working on that for several years now.

29m 9s

Question is, with the expectation of significant ramping in revenues, it's expected over the course of 2025 whether this might have any read through to your ability to ramp growth investments like Meta while still maintaining discipline know you guys have been active in repurchasing shares. Just curious as to whether the ramp in revenues will allow you to increase growth investments as well?

29m 36s

Well, first thanks for pointing out the positive development in our balance sheet Steve. And now actually Pet also asked about marketing, whether we are planning to spend more. And yes, we are in 2025. We will wrap up marketing spend. We are already doing that in Q1. Why? Number one, we have found a model that works okay? So if we can acquire paying members at a reasonable cost and we benefit from them over long periods of time. The renewable rates are renewal rates so far that we are seeing We are happy with them. And of course, we invest because it's a smart decision for the business to do that. And second, as revenues increase and as we were trying to explain earlier, that 5% incremental revenue growth, we are seeing in Q1, that number will continue to go up throughout the year. Because the subscription revenues are only recognized over the course of twelve months. So it's a little bit difficult to really conceptualize that. But that's why we are already happy with what we are seeing in Q1. Will that affect investment [indiscernible] No, we look at these quite quite independently. And as you also pointed out, Steve, we are developing meta with quite some discipline.

31m 6s

We're not still spending millions and millions of billions of dollars on developing that metaverse experience. We do it rationally. And we don't see that this is affected particularly as our balance sheet is improving and we are generating more cash. Cash flow this quarter or cash flow in Q4 as you saw was among the highest we have seen in quite some time.

31m 33s

Great. Thanks for all the additional color.

31m 38s

Thank you.

31m 39s

And we will take our next question from Ed Woo with Yes, congratulations on the quarter.

31m 48s

I had a question on the Jack Flight Club membership and the Travelzoo are they separate products, are there any plans to combine them so that you have one membership for both products?

32m 5s

I can repeat that. [indiscernible] For now, we are operating the businesses independently and that includes The membership Since we've acquired Jagged Flake Lab, we look for ways to find synergies between the two businesses and that includes some cross promotion and [indiscernible] either Travelview or Travelzoo Flight Club? And we're doing that in a way that makes sense and is beneficial for both brands. And based serve as slightly different [indiscernible] So for now, that's the plan is to keep them independent.

32m 46s

Great. Well, thanks for answering my questions.

32m 48s

Thank you.

32m 53s

Okay. This concludes the Q and A portion of today's [indiscernible] I would like to turn the call back over to Mr. Holger Bartel for closing remarks.

33m 4s

Yes, the investors, thank you for listening for your time and support. We look forward to speaking with you again next quarter. Have a great day.

33m 17s

This concludes today's Travelzoo fourth quarter twenty twenty four earnings call and webcast. You may disconnect your lines at this time and have a wonderful day.

Key Insights

Q4 2024 Financial Performance: Travelzoo reported consolidated revenue of $20.7 million, down 2% year-over-year, but operating profit increased by 8% to $4.9 million, representing 24% of revenue. EPS was slightly lower due to unfavorable FX trends and the absence of extraordinary income from the prior year.
Membership Fee Revenue Growth: Membership fee revenue increased to $1.6 million in Q4 2024, with expectations for substantial growth in 2025 as legacy members convert to paid memberships and new members are acquired. Incremental membership fee revenue is projected to add 5% growth in Q1 2025, with further increases expected throughout the year.
Segment Performance: Operating profit increased in North America and Jack's Flight Club segments but decreased in Europe due to fluctuations in Germany, which management does not view as a long-term trend.
Cash Position and Investments: Travelzoo ended 2024 with $17.7 million in cash and equivalents, even after repurchasing shares. The company plans to increase marketing spend in 2025 to scale member acquisition while maintaining disciplined investments in initiatives like Travelzoo Meta.
Outlook for 2025: Management expects higher revenue growth and profitability driven by recurring membership fee revenue and increased member engagement. The company is also focused on expanding benefits for club members and leveraging its strong brand to negotiate exclusive offers.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$54M	$63M	$71M	$84M	$84M
Cost of Revenue	$11M	$12M	$10M	$11M	$10M
Gross Profit	$43M	$52M	$61M	$74M	$73M
Gross Profit %	80%	82%	86%	87%	88%
R&D Expenses	$3.1M	$2.6M	$2.1M	$2.1M	$2.4M

2020

2021

2022

2023

2024

Revenue

$54M

$63M

$71M

$84M

Cost of Revenue

$11M

$12M

$10M

$11M

$10M

Gross Profit

$43M

$52M

$61M

$74M

$73M

Gross Profit %

80%

82%

86%

87%

88%

R&D Expenses

$3.1M

$2.6M

$2.1M

$2.4M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$15M	$1.2M	$6.6M	$12M	$14M
Dep. & Amort.	$2.3M	$1.8M	$2.2M	$1.9M	$907K
Def. Tax	-$2.6M	$813K	$774K	$48K	-$515K
Stock Comp.	$6.2M	$3.7M	$1.8M	$1.6M	$1.6M
Chg. in WC	$50M	-$12M	-$30M	-$4.2M	$0

2020

2021

2022

2023

2024

Net Income

-$15M

$1.2M

$6.6M

$12M

$14M

Dep. & Amort.

$2.3M

$1.8M

$2.2M

$1.9M

$907K

Def. Tax

-$2.6M

$813K

$774K

$48K

-$515K

Stock Comp.

$6.2M

$3.7M

$1.8M

$1.6M

Chg. in WC

$50M

-$12M

-$30M

-$4.2M

Balance Sheet

Cash

	2019	2020	2021	2022	2023
Cash	$20M	$63M	$44M	$19M	$16M
ST Investments	$105K	$137K	$190K	$153K	$286K
Cash & ST Inv.	$20M	$63M	$44M	$19M	$16M
Receivables	$11M	$4.5M	$15M	$14M	$13M
Inventory	$1.1M	$1.3M	$3.5M	$2.9M	$0

2019

2020

2021

2022

2023

Cash

$20M

$63M

$44M

$19M

$16M

ST Investments

$105K

$137K

$190K

$153K

$286K

Cash & ST Inv.

$20M

$63M

$44M

$19M

$16M

Receivables

$11M

$4.5M

$15M

$14M

$13M

Inventory

$1.1M

$1.3M

$3.5M

$2.9M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Earnings

Report Date

Feb 25, 2025

Reported Revenue

20.7M

Avg 1d Change

11.36%

Report Period

Q4 2024

Reported EPS

0.26

Implied Move 1d

13.27%

Transcript

11m

12m 36s

13m 46s

15m 30s

17m 20s

Now, Kristina will provide a quick update on Travelzoo Meta and Jack Thank you, Holger.

17m 30s

18m 38s

19m 53s

20m 15s

21m 52s

22m 38s

22m 53s

24m 12s

Thank you for taking my questions. Appreciate it.

24m 17s

Thank you. And we will take our next question from Patrick Scholl with Barrington Research. Please go ahead. Hi.

24m 26s

25m 59s

26m 53s

27m 42s

28m 7s

28m 41s

Okay. Thank you. Thank you. And we will take our next question from Steve Silver with Argus Research. Please go ahead.

28m 53s

29m 9s

29m 36s

31m 6s

31m 33s

Great. Thanks for all the additional color.

31m 38s

Thank you.

31m 39s

And we will take our next question from Ed Woo with Yes, congratulations on the quarter.

31m 48s

I had a question on the Jack Flight Club membership and the Travelzoo are they separate products, are there any plans to combine them so that you have one membership for both products?

32m 5s

32m 46s

Great. Well, thanks for answering my questions.

32m 48s

Thank you.

32m 53s

Okay. This concludes the Q and A portion of today's [indiscernible] I would like to turn the call back over to Mr. Holger Bartel for closing remarks.

33m 4s

Yes, the investors, thank you for listening for your time and support. We look forward to speaking with you again next quarter. Have a great day.

33m 17s

This concludes today's Travelzoo fourth quarter twenty twenty four earnings call and webcast. You may disconnect your lines at this time and have a wonderful day.

Key Insights

Q4 2024 Financial Performance: Travelzoo reported consolidated revenue of $20.7 million, down 2% year-over-year, but operating profit increased by 8% to $4.9 million, representing 24% of revenue. EPS was slightly lower due to unfavorable FX trends and the absence of extraordinary income from the prior year.
Membership Fee Revenue Growth: Membership fee revenue increased to $1.6 million in Q4 2024, with expectations for substantial growth in 2025 as legacy members convert to paid memberships and new members are acquired. Incremental membership fee revenue is projected to add 5% growth in Q1 2025, with further increases expected throughout the year.
Segment Performance: Operating profit increased in North America and Jack's Flight Club segments but decreased in Europe due to fluctuations in Germany, which management does not view as a long-term trend.
Cash Position and Investments: Travelzoo ended 2024 with $17.7 million in cash and equivalents, even after repurchasing shares. The company plans to increase marketing spend in 2025 to scale member acquisition while maintaining disciplined investments in initiatives like Travelzoo Meta.
Outlook for 2025: Management expects higher revenue growth and profitability driven by recurring membership fee revenue and increased member engagement. The company is also focused on expanding benefits for club members and leveraging its strong brand to negotiate exclusive offers.

Travelzoo Price & Performance (TZOO)

Stock Performance

Open

High

Low

Market Cap

P/E Ratio

Volume

Year High

Year Low

News & Market Insights

What's Happening

Peers

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Income Statement

Cash Flow

Balance Sheet

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Transcript

Key Insights