Travelzoo (TZOO) Reports 30% YoY Revenue Growth in Q3 2023
Travelzoo (NASDAQ:TZOO) reports Q3 2023 revenue of $20.6 million, a 30% increase year-over-year.
Consolidated operating profit stands at $3.1 million, with a non-GAAP consolidated operating profit of $3.9 million.
Earnings per share (EPS) for the quarter is $0.16, a significant increase from $0.06 in the prior-year period.
Travelzoo's cash position as of September 30, 2023, is $16.6 million, with net cash provided by operations at $3.6 million.
Travelzoo (NASDAQ:TZOO), a global Internet media company, released its Q3 2023 earnings on October 24, 2023. The company reported a 30% year-over-year increase in revenue, reaching $20.6 million from $15.8 million in the same period last year. The reported net income attributable to Travelzoo from continuing operations was $2.4 million for Q3 2023, with an EPS from continuing operations of $0.16, compared to $0.06 in the prior-year period.
Financial Performance
Travelzoo's North America business segment saw a 28% year-over-year increase in revenue, reaching $13.4 million. The operating profit for Q3 2023 was $3.0 million, or 22% of revenue, compared to an operating profit of $1.0 million in the prior-year period. The Europe business segment revenue increased 33% year-over-year to $6.0 million, with an operating profit for Q3 2023 of $267,000.
Jacks Flight Club, a membership subscription service in which Travelzoo has a 60% ownership interest, reported a 39% year-over-year increase in revenue to $1.2 million. The number of premium subscribers increased 23% year-over-year. The New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $28,000.
Member Growth and Future Outlook
As of September 30, 2023, Travelzoo had 31.2 million members worldwide, up from 30.5 million as of September 30, 2022. In North America, the unduplicated number of Travelzoo members was 16.3 million as of September 30, 2023, consistent with September 30, 2022. In Europe, the unduplicated number of Travelzoo members was 9.3 million as of September 30, 2023, up from 9.1 million as of September 30, 2022.
Looking ahead, Travelzoo expects growth in revenue to continue year-over-year for Q4 2023. The company has been able to lower its fixed costs during the pandemic and believes it can keep these costs relatively low in the foreseeable future.
CEO Commentary
Year-over-year revenue growth accelerated from Q2 to Q3, said Holger Bartel, Travelzoos Global CEO. We will continue to leverage Travelzoos global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for members. It is in times of large increases in travel prices that Travelzoo is most valuable for consumers. Travelzoo members enjoy high quality travel experiences that represent outstanding value.
This article first appeared on GuruFocus.
