Q1 2024 Travelzoo Earnings Call Transcript
Key Points
- Travelzoo's consolidated Q1 revenue increased to $22.0 million, up 2% year-over-year.
- Operating profit for Q1 increased by 19% year-over-year, reaching $5.6 million or 25% of revenue.
- Membership fee revenue grew by 16% year-over-year, indicating successful growth in this revenue stream.
- Travelzoo maintained a solid cash position, with cash, cash equivalents, and restricted cash totaling $16.9 million as of March 31, 2024.
- The company successfully repurchased 400,000 shares during the quarter, demonstrating confidence in its stock value.
- Revenue growth is expected to continue in Q2 2024 but at a slower pace compared to 2023.
- North America experienced a slight decline in revenue, attributed to fluctuations in advertising revenue and temporary pauses by advertising partners.
- Legacy Travelzoo members are exempt from membership fees in 2024, potentially delaying revenue generation from these members until 2025.
- The transition to a paid membership model may pose challenges in converting existing free members to paid subscribers.
- While Travelzoo is expanding into new ventures like Travelzoo META, the financial discipline and return on these investments remain uncertain.
Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Travelzoo first quarter 2024 earnings conference call. (Operator Instructions)
Thank you. I would now like to turn the conference over to Lijun Qi, Principal Accounting Officer. You may begin your conference.
Thank you, operator, and welcome to those of you joining us today. Please refer to the management presentation to follow along with our prepared remark. The presentation in PDF format is available on our Investor Relations site at travelzoo.com/ir.
Let's begin with slide number 4. Travelzoo's revenue, operating profit and member count all increased year-over-year. Our consolidated Q1 revenue was $22.0 million, up 2% from $21.6 million in the prior year. In constant currencies, revenue was $21.8 million, an increase of 1% year-over-year.
Operating income which way as management call operating profit increased 19% year-over-year. Q1
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