Travelzoo ( (TZOO) ) has released its Q4 earnings. Here is a breakdown of the information Travelzoo presented to its investors.
Travelzoo is a global travel club that offers exclusive deals and experiences to its members, operating primarily in the travel and leisure industry. The company is known for its strong relationships with top travel suppliers and its ability to negotiate attractive offers for its members.
In its fourth-quarter 2024 earnings report, Travelzoo announced a slight decline in revenue to $20.7 million, a 2% drop compared to the previous year. Despite this, the company reported an increase in consolidated operating profit by 8% year-over-year, reaching $4.9 million, and earnings per share of $0.26.
Key financial highlights include a robust cash flow from operations amounting to $7.7 million and a strong performance in North America, where revenue increased by 1% to $13.9 million. However, the European segment faced challenges with a 13% decline in revenue, primarily due to fluctuations in Germany. Jack’s Flight Club, in which Travelzoo holds a 60% ownership, showed promising growth with a 19% increase in revenue.
Looking ahead, Travelzoo anticipates a higher pace of revenue growth in the first quarter of 2025, driven by the introduction of membership fees and the transition of Legacy Members to Club Members. The company expects this strategy to enhance profitability over time as recurring membership fee revenue is recognized.