Flies By Expectations
Travelzoo is a US-based company which acts as a publisher of travel and entertainment offers. The company informs a varied number of members in Asia Pacific, Europe, and North America, as well as millions of website users, about the best travel, entertainment and local deals available from various companies. It provides travel, entertainment, and local businesses in a flexible manner to the various customer. The company operates in three geographic segments namely Asia Pacific, Europe, and North America. Travelzoo derives its revenue through advertising fees including listing fees paid by travel, entertainment, and local businesses to advertise their offers on company’s media properties. Most of the company’s revenue is derived from the North America.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
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Exceeds Q1 estimates. Q1 revenues of $18.4 million was better than our $16.8 million estimate, with better than expected revenue growth in Europe and a nice rebound in North America. With costs slightly below estimates, adj. EBITDA was significantly better, $3.0 million versus our $0.6 million estimate.
Operating on all cylinders. Both Europe and North America contributed to the strong revenue. Europe increased 66% to $5.9 million and North America was up 19% to $11.7 million from the year earlier quarter. The company benefited from two acquisitions in the quarter, (not detailed), but enhanced European revenues and saved costs, expanding margins …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.