Here is why Travelzoo shares gained 20%

By: Ruchi Gupta
Ruchi Gupta
Ruchi is a News Reporter at Invezz covering the US stock market. She is located in India but has… read more.
on Apr 27, 2022
  • Travelzoo revue jumped 29% YoY
  • Q1 2022 earnings per share of $0.19
  • Cash and equivalents and restricted cash of $36.7 million

Travelzoo (NASDAQ: TZOO) stock jumped 20% after the internet media firm that offers exclusive experiences and offers to members announced Q1 2022 financial results. The company had consolidated revenue of $18.5 million, representing a 29% YoY increase from $14.3 million.

Net income was $2.4 million

Commissions and advertising revenues made up the company’s total revenue and were generated in relation to purchases Travelzoo members made. For the first quarter of 2022, Travelzoo recorded a net income from ongoing operations of $2.4 million. On a consolidated basis plus minority interests, the company had a net income of $2.4 million from ongoing operations. Earnings per share from ongoing operations were $0.19 relative to $0.14 per share a year earlier.

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Travelzoo had a non-GAAP operating profit of $2.7 million. However, the non-GAAP profit excluded the amortization of intangibles of $0.2 million and share option expenses of $0.5 million. The company’s Global CEO, Holger Bartel, said:

We see continued improvement in our business. We seize the exceptional industry opportunities by providing 30 million Travelzoo members exclusive and irresistible travel, entertainment, and local offers and experiences. Travelzoo members are affluent, active, and open to new experiences. 84% say Travelzoo influences their travel destinations because they trust Travelzoo.

Travelzoo had cash and cash equivalents of $36.7 million

At the end of the quarter, the company had consolidated cash and equivalents plus restricted cash of $36.7 million. The company used $6.8 million in operations, mainly used in relation to a drop in merchant payables by $6 million. Travelzoo also used $1 million in acquiring intangible assets in the first quarter.

The posted revenue during the quarter also included a revenue reserve of $3.8 million connected to commissions generated from the sale of vouchers. The company booked the reserve as contra revenue.

The North American business segment revenue was up 195 YoY to $11.7 million. During the first quarter, operating profit was $1.7 million or 15% of sales relative to operating profit of $39,000 from a year ago. On the other hand, European business unit revenue was up 66% YoY to $5.9 million, while operating profit was 3% of the revenue of $178,000 relative to $696,000 a year ago.

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