Technology

Travelzoo Reports Second Quarter 2024 Results

Published

5 months ago

July 25, 2024

NEW YORK, July 25, 2024 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):

Revenue of $21.1 million, consistent year-over-yearConsolidated operating profit of $4.0 millionNon-GAAP consolidated operating profit of $4.8 millionCash flow from operations of $3.1 millionEarnings per share (EPS) of $0.23

Travelzoo, the club for travel enthusiasts, today announced financial results for the second quarter ended June 30, 2024. Consolidated revenue was $21.1 million, consistent year-over-year. In constant currencies, revenue was $21.2 million, up from $21.1 million year-over-year. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members, and membership fees.

Net income attributable to Travelzoo was $2.9 million for Q2 2024, or $0.23 per share, compared with $0.17 in the prior-year period. Net income attributable to Travelzoo from continuing operations was $2.9 million for Q2 2024, or $0.23 per share, compared with $0.17 in the prior-year period.

Non-GAAP operating profit was $4.8 million. Non-GAAP operating profit excludes amortization of intangibles ($88,000), stock option expenses ($0.7 million) and severance-related expenses ($30,000). Please refer to “Non-GAAP Financial Measures” and the tabular reconciliation below.

“We will continue to leverage Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for members,” said Holger Bartel, Travelzoo’s Global CEO. “With more than 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences.”

Cash Position
As of June 30, 2024, consolidated cash, cash equivalents and restricted cash were $13.2 million. Net cash provided by operations was $3.1 million.

Travelzoo North America
North America business segment revenue remained consistent year-over-year at $14.1 million. Operating profit for Q2 2024 was $3.7 million, or 26% of revenue, compared to operating profit of $3.8 million in the prior-year period.

Travelzoo Europe
Europe business segment revenue increased 1% year-over-year to $6.0 million. In constant currencies, Europe business segment revenue increased 1% year-over-year. Operating profit for Q2 2024 was $512,000, or 9% of revenue, compared to operating loss of $239,000 in the prior-year period.

Jack’s Flight Club
Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. Revenue from unaffiliated customers increased 9% year-over-year to $1.1 million. The number of premium subscribers increased 19% year-over-year. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q2 2024 was $25,000. Non-GAAP operating profit excludes amortization of intangibles ($59,000) related to the acquisition of Travelzoo’s ownership interest in Jack’s Flight Club in 2020.

New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $23,000. Operating loss for Q2 2024 was $184,000.

In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Travelzoo recorded $7,000 in licensing revenue from the licensee in Japan in Q2 2024. Travelzoo recorded $11,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q2 2024. Licensing revenue is expected to increase going forward.

Members and Subscribers
As of June 30, 2024, we had 30.8 million members worldwide, consistent with June 30, 2023. In North America, Travelzoo had 16.1 million unduplicated members as of June 30, 2024, down from 16.2 million as of June 30, 2023. In Europe, Travelzoo had 9.2 million unduplicated members as of June 30, 2024, consistent with June 30, 2023. Jack’s Flight Club had 2.2 million subscribers, including premium subscribers, as of June 30, 2024, consistent with June 30, 2023.

Discontinued Operations
In March 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations.

Income Taxes
A provision of $1.3 million for income taxes was recorded for Q2 2024, compared to an income tax expense of $1.1 million in the prior-year period. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its actual tax liability for Q2 2024.

Share Repurchase Program
During Q2 2024, the Company repurchased 800,000 of its outstanding common stock.

Looking Ahead
For Q3 2024, we expect growth in revenue year-over-year, albeit at a smaller pace than in 2023. However, there could be unexpected fluctuations. We also expect for Q3 2024 higher profitability year-over-year. For 2025, we expect substantial growth in revenue as a result of additional revenue from membership fees.

In December 2023, we announced the introduction of a membership fee for Travelzoo beginning January 1, 2024. We recognize membership fee revenue ratably over the subscription period. Legacy Travelzoo members as of December 31, 2023, which represent more than 95% of members, are exempt from the fee during 2024. Therefore, we do not anticipate membership fee revenue from these members before 2025.

Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: amortization of intangibles, stock option expenses and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

Conference Call
Travelzoo will host a conference call to discuss second quarter 2024 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to

download the management presentation (PDF format) to be discussed in the conference callaccess the webcast

About Travelzoo
We, Travelzoo®, are the club for travel enthusiasts. Our 30 million members receive exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.

Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

Three months ended

Six months ended

June 30,

2024

2023

2024

2023

Revenues

$ 21,141

$ 21,128

$ 43,126

$ 42,729

Cost of revenues

2,520

2,880

5,160

5,571

Gross profit

18,621

18,248

37,966

37,158

Operating expenses:

Sales and marketing

9,386

10,142

17,984

19,438

Product development

603

518

1,169

1,008

General and administrative

4,621

4,315

9,211

8,728

Total operating expenses

14,610

14,975

28,364

29,174

Operating income

4,011

3,273

9,602

7,984

Other income, net

176

479

315

829

Income from continuing operations before income taxes

4,187

3,752

9,917

8,813

Income tax expense

1,267

1,091

2,772

2,469

Income from continuing operations

2,920

2,661

7,145

6,344

Income from discontinued operations, net of tax

—

Net income

2,920

2,663

7,145

6,344

Net income (loss) attributable to non-controlling interest

(7)

(18)

Net income attributable to Travelzoo

$ 2,927

$ 2,626

$ 7,163

$ 6,299

Net income attributable to Travelzoo—continuing operations

$ 2,927

$ 2,624

$ 7,163

$ 6,299

Net income attributable to Travelzoo—discontinued operations

$ —

$ 2

$ —

Income per share—basic

Continuing operations

$ 0.23

$ 0.17

$ 0.54

$ 0.41

Discontinued operations

$ —

Net income per share—basic

$ 0.23

$ 0.17

$ 0.54

$ 0.41

Income per share—diluted

Continuing operations

$ 0.23

$ 0.17

$ 0.54

$ 0.40

Discontinued operations

$ —

Net income per share—diluted

$ 0.23

$ 0.17

$ 0.54

$ 0.40

Shares used in per share calculation from continuing operations—basic

12,895

15,275

13,191

15,485

Shares used in per share calculation from discontinued operations—basic

12,895

15,275

13,191

15,485

Shares used in per share calculation from continuing operations—diluted

12,976

15,337

13,300

15,557

Shares used in per share calculation from discontinued operations—diluted

12,976

15,337

13,300

15,557

Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)

June 30,
2024

December 31,
2023

Assets

Current assets:

Cash and cash equivalents

$ 12,567

$ 15,713

Accounts receivable, net

13,220

12,965

Prepaid income taxes

998

629

Prepaid expenses and other

1,726

1,461

Total current assets

28,511

30,768

Deposits and other

223

1,115

Deferred tax assets

3,102

3,196

Restricted cash

675

Operating lease right-of-use assets

5,873

6,015

Property and equipment, net

499

578

Intangible assets, net

1,686

2,091

Goodwill

10,944

Total assets

$ 51,513

$ 55,382

Liabilities and Equity

Current liabilities:

Accounts payable

$ 5,212

$ 4,546

Merchant payables

16,708

20,622

Accrued expenses and other

4,217

3,658

Deferred revenue

3,207

2,044

Income tax payable

1,070

766

Operating lease liabilities

2,389

2,530

Liabilities from discontinued operations

Total current liabilities

32,827

34,190

Long-term tax liabilities

6,323

4,681

Long-term operating lease liabilities

6,342

6,717

Other long-term liabilities

376

911

Total liabilities

45,868

46,499

Common stock

124

136

Tax indemnification

(9,537)

Note receivable from shareholder

(1,753)

Additional paid-in capital

—

439

Retained earnings

17,083

19,508

Accumulated other comprehensive loss

(4,951)

(4,607)

Total Travelzoo stockholders’ equity

966

4,186

Non-controlling interest

4,679

4,697

Total stockholder’s equity

5,645

8,883

Total liabilities and equity

$ 51,513

$ 55,382

Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

Three months ended

Six months ended

June 30,

2024

2023

2024

2023

Cash flows from operating activities:

Net income

$ 2,920

$ 2,663

$ 7,145

$ 6,344

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

175

467

558

945

Stock-based compensation

688

432

783

828

Deferred income tax

(12)

(27)

(38)

Loss on long-lived assets

—

Net foreign currency effects

(14)

(36)

(11)

(33)

Provision of loss (net recoveries) on accounts receivable and refund reserves

(117)

(7)

(829)

Changes in operating assets and liabilities:

Accounts receivable

(150)

3,516

(385)

3,888

Prepaid income taxes

(390)

610

(327)

1,017

Prepaid expenses, deposits and other

(49)

2,325

533

2,485

Accounts payable

(295)

(1,072)

713

(2,393)

Merchant payables

(1,101)

(4,013)

(3,779)

(8,604)

Accrued expenses and other

478

(534)

1,450

377

Income tax payable

224

234

278

234

Other liabilities

556

600

753

1,419

Net cash provided by operating activities

3,056

5,115

7,677

5,650

Cash flows from investing activities:

Proceeds from repayment of note receivable

—

113

Purchases of property and equipment

(48)

(46)

(83)

(157)

Net cash provided by (used in) investing activities

(48)

(83)

(44)

Cash flows from financing activities:

Repurchase of common stock

(6,557)

(4,684)

(10,429)

(4,870)

Exercise of stock options and taxes paid for net share settlement of equity awards

—

(299)

—

(299)

Net cash used in financing activities

(6,557)

(4,983)

(10,429)

(5,169)

Effect of exchange rate on cash, cash equivalents and restricted cash

(73)

211

(311)

382

Net increase (decrease) in cash, cash equivalents and restricted cash

(3,622)

371

(3,146)

819

Cash, cash equivalents and restricted cash at beginning of period

16,865

19,826

16,389

19,378

Cash, cash equivalents and restricted cash at end of period

$ 13,243

$ 20,197

$ 13,243

$ 20,197

Travelzoo

Segment Information from Continuing Operations

(Unaudited)

(In thousands)

Three months ended June 30, 2024

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$ 14,015

$ 6,004

$ 1,099

$ 23

$ 21,141

Intersegment revenues

119

(53)

(66)

—

Total net revenues

14,134

5,951

1,033

21,141

Operating profit (loss)

$ 3,717

$ 512

$ (34)

$ (184)

$ 4,011

Three months ended June 30, 2023

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$ 13,642

$ 6,462

$ 1,011

$ 13

$ 21,128

Intersegment revenues

491

(575)

—

Total net revenues

14,133

5,887

1,095

21,128

Operating profit (loss)

$ 3,753

$ (239)

$ 97

$ (338)

$ 3,273

Six months ended June 30,
2024

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$ 28,288

$ 12,584

$ 2,199

$ 55

$ 43,126

Intersegment revenues

(103)

—

Total net revenues

28,362

12,613

2,096

43,126

Operating profit (loss)

$ 8,155

$ 1,894

$ (133)

$ (314)

$ 9,602

Six months ended June 30,
2023

Travelzoo North

America

Travelzoo Europe

Jack’s Flight Club

New Initiatives

Consolidated

Revenues from unaffiliated customers

$ 28,209

$ 12,540

$ 1,959

$ 21

$ 42,729

Intersegment revenues

682

(766)

—

Total net revenues

28,891

11,774

2,043

42,729

Operating profit (loss)

$ 8,269

$ 218

$ 52

$ (555)

$ 7,984

Travelzoo

Reconciliation of GAAP to Non-GAAP Information

(Unaudited)

(In thousands, except per share amounts)

Three months ended

Six months ended

June 30,

2024

2023

2024

2023

GAAP operating expense

$ 14,610

$ 14,975

$ 28,364

$ 29,174

Non-GAAP adjustments:

Amortization of intangibles (A)

389

405

787

Stock option expenses (B)

688

431

783

827

Severance-related expenses (C)

Non-GAAP operating expense

13,804

14,099

27,146

27,465

GAAP operating profit

4,011

3,273

9,602

7,984

Non-GAAP adjustments (A through C)

806

876

1,218

1,709

Non-GAAP operating profit

4,817

4,149

10,820

9,693

Media Contact:
Investor Relations:
ir@travelzoo.com

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SOURCE Travelzoo

Technology

ResumeTemplates.com Survey Reveals 3 in 10 Gen Zers Believe CEOs Are Evil; Many Support Release of Mangione

Published

38 minutes ago

December 27, 2024

The majority of Gen Zers feel CEOs wield excessive power, with some expressing extreme views about corporate accountability

SEATTLE, Dec. 27, 2024 /PRNewswire-PRWeb/ — ResumeTemplates.com, the leading platform for professional resume templates and career advice, has released findings from a recent survey revealing critical attitudes among Gen Z toward corporate leaders. Conducted in December 2024, the survey of 1,200 U.S.-based Gen Zers highlights the sentiment that CEOs hold excessive power and are overcompensated, with some respondents expressing extreme views about corporate accountability.

According to the survey, more than half of Gen Zers (55%) believe CEOs wield excessive power in society, particularly influencing elections, the economy, and policymaking. Additionally, 59% of respondents believe CEOs are overpaid, with most saying total annual compensation should not exceed $750,000. Only 7% of respondents support unlimited earning potential for CEOs. The survey also found that 39% of Gen Zers believe all levels of a workforce equally contribute to a company’s success, while only 20% think CEOs create the most value within an organization.

The survey also explored Gen Z’s perceptions of corporate leadership. More than half believe CEOs are responsible for driving corporate greed, and 30% of respondents view CEOs as “evil,” reflecting deep skepticism toward corporate leadership.

Additionally, the survey examined opinions on high-profile cases like Brian Thompson’s killing. Among respondents, 21% agreed that “CEOs deserve to lose their lives for their professional actions,” including 7% who strongly agreed. When asked specifically about Brian Thompson’s killing, 22% of respondents believe he definitely (10%) or probably (12%) deserved what happened to him. Regarding Luigi Mangione, Thompson’s accused killer, 21% supported his release, while 51% opposed it.

This survey, conducted December 18, 2024, via Pollfish, gathered responses from 1,200 U.S.-based 18 to 27 year olds. The full report can be viewed here: https://www.resumetemplates.com/3-in-10-gen-zers-say-ceos-are-evil-many-believe-mangione-should-go-free/

ABOUT RESUMETEMPLATES.COM
ResumeTemplates.com offers a comprehensive selection of free, industry-specific resume templates, tailored to meet the needs of various job seekers. The website also provides extensive resources to help facilitate the job application process, including expert advice, resume examples, and tips and tricks for creating impactful resumes. For more information, please visit: https://www.resumetemplates.com/.

Media Contact

Abigail Davis, ResumeTemplates, 000-0000, abigail@resumetemplates.com

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SOURCE ResumeTemplates

Technology

Founder Shares Unforgettable Lessons After Spending $1 Million on a Domain Name

Published

38 minutes ago

December 27, 2024

ATLANTA, Dec. 27, 2024 /PRNewswire/ — VPN.com CEO Michael Gargiulo recently shared invaluable insights with Entrepreneur on the unforgettable lessons he learned while spending $1 million to acquire the premium domain VPN.com.

Gargiulo’s journey to acquiring VPN.com wasn’t just about landing a high-value web address. In the Entrepreneur.com article titled “5 Unforgettable Lessons I Learned Spending $1 Million on a Domain Name”, Gargiulo emphasizes the long-term value a premium domain brings to brand trust, visibility, and scalability.

Investing in a Domain: More Than Just a Name

Gargiulo’s $1 million purchase of VPN.com was more than a simple transaction—it was an investment in the future of his business and the value of owning a recognizable, exact-match domain. “The right domain can change everything for a brand. It immediately creates trust and credibility with customers, and it sets your company apart from the competition,” said Gargiulo.

In the article, he shares five critical lessons learned during his experience, including the importance of patience, timing, and the negotiating power of a premium domain. “A domain isn’t just a digital asset—it’s a business strategy. Acquiring VPN.com helped us stand out in the crowded cybersecurity market and continues to drive our success.”

Brand Trust and Global Recognition

Since acquiring VPN.com, Gargiulo has expanded his company’s mission to help hundreds of millions of people secure a private internet experience. The premium domain has played a pivotal role in building trust with customers, partners, and investors. “A premium domain acts as an instant signal of authority,” Gargiulo noted. “It makes a lasting impression, and in today’s fast-moving digital world, that’s invaluable.”

A Vision for the Future

Gargiulo’s vision for VPN.com extends beyond the domain. With a mission to provide a secure internet experience for one billion people by 2030, VPN.com is at the forefront of internet privacy, security, and premium domain brokerage. Gargiulo’s experience acquiring VPN.com has equipped him with unique insights into the premium domain marketplace, helping businesses recognize the value of digital branding in today’s world.

Read More About Michael Gargiulo’s Insights

To read Gargiulo’s full breakdown of the lessons learned from his $1 million domain purchase, visit the Entrepreneur article here.

In addition, Gargiulo also contributed to the Entrepreneur article “Getting a Divorce With a Six-Figure Domain Portfolio”, where he shares insights on the unique challenges of managing and valuing a high-profile domain portfolio in complex personal and financial situations.

For media inquiries or interviews, please contact:

Michael Gargiulo
855-VPN-FAST
388102@email4pr.com

Visit: vpn.com for more information.

About VPN.com
VPN.com is a global leader in internet security and premium domain brokerage, dedicated to helping entrepreneurs, businesses, and individuals protect their brands and secure their online presence. With a $1 million domain name and a mission to serve one billion people by 2030, VPN.com is at the cutting edge of internet privacy, security, and digital branding.

Learn more about VPN.com’s work:

Michael Gargiulo Shares Insider Secrets on Premium Domain Valuation How to Acquire a Premium Domain Via Stealth Acquisition VPN.com Renews Commitment to Freedom, Digital Liberties, and Brand Protection

For more insights on digital brand protection and domain name acquisition, visit: vpn.com/domains.

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SOURCE VPN.com

Technology

OCR Canada Rebrands to Levata

Published

2 hours ago

December 27, 2024

TORONTO, Dec. 27, 2024 /CNW/ — OCR Canada Ltd., Canada’s leading solutions provider of automated identification data capture (AIDC) products, software, and services for businesses across industries and government organizations, is pleased to announce its rebrand to Levata as of January 1, 2025. This transition unites Canada’s operations with Levata’s global identity, streamlining the company’s messaging while honoring OCR Canada’s more than 40-year legacy of trusted service and expertise.

The name OCR, which originally stood for Optical Character Recognition, reflects a technology that no longer represents the company’s comprehensive offerings. Rebranding to Levata supports the broader strategic vision of uniting Levata across markets under one multinational brand to better communicate the full value Levata delivers to its customers.

“This rebrand is an exciting milestone for Canada,” said Tony Mastrangeli, Executive Vice President & GM of Canada. “While our name is changing, the exceptional service, expertise, and relationships our customers rely on remain the same. Levata will continue to empower businesses with tailored solutions, just as OCR Canada has for more than 40 years.”

The transition follows a successful history of growth in Canada, with OCR Canada joining Levata in 2014. Since then, the Canadian arm has expanded its expertise through strategic acquisitions and established itself as a leading provider of AIDC solutions across industries.

“This rebrand marks the next step in Levata’s long-term vision,” said Dan Nettesheim, CEO of Levata. “By uniting under a single, global identity, we are amplifying our global message that we enable our customers to elevate their potential. Today, we provide solutions beyond OCR and barcoding, we also offer leading technology and services for enterprise mobility, RFID, networking, IT infrastructure, and more to help customers succeed in a competitive and rapidly evolving market.”

To complement this transformation, Levata Canada will launch a French-enabled eCommerce platform in January 2025, further enhancing customer access and experience.

For more information about the rebranding, visit www.Levata.com/en-ca/news/ocr-canada-rebrands-to-levata.

About Levata
Levata enables customers to elevate their potential by providing strategies, solutions, and services that power modern environments. With a broad suite of technology products to enable enterprise mobility, a digital supply chain, a secure workplace, and an elevated customer experience, and the services to move businesses forward, Levata unlocks the power of thousands of organizations worldwide. Levata has operated as a market leader in full-stack technology solutions for over 40 years. Learn more at www.levata.com.

Alana Tufford, Director, Enterprise Marketing
Levata
905-475-5505 x242
branding@levata.com

SOURCE Levata