Travelzoo (TZOO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $21.1 million, flat year-over-year; operating profit rose 23% to $4.0 million, with a 19% margin.

• Net income attributable was $2.9 million, or $0.23 per share, up from $0.17 per share in Q2 2023.

• Membership base stable at 30.8 million as of June 30, 2024, with over 8 million mobile app users and 4 million social followers.

• Non-GAAP operating profit for Q2 2024 was $4.8 million, or 23% of revenue.

• 800,000 shares repurchased during the quarter, maintaining a strong cash position.

Financial highlights

• Advertising revenue held steady at $20.0 million; membership fees increased to $1.2 million.

• Gross margin for Q2 2024 was 88.1%, up from 86.4% in Q2 2023.

• Operating cash flow was $3.1 million in Q2; cash, cash equivalents, and restricted cash totaled $13.2 million at quarter end.

• Diluted EPS for Q2 2024 was $0.23, up from $0.17 in Q2 2023.

• Cash used for share repurchases in Q2 2024 was $6.6 million.

Outlook and guidance

• Q3 2024 revenue and profitability expected to grow year-over-year, but at a slower pace than 2023.

• Substantial revenue growth anticipated in 2025 due to the introduction of membership fees for legacy members.

• Management expects cash on hand to be sufficient for working capital needs for at least the next twelve months.