Movers and SHAKERS
Moving Along The Road To Recovery
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 Q3 expectations. We believe that the company posted one of the best Q3 results in the travel industry, with revenues up a strong 96% from Q2 revenues and a swing toward positive cash flow. Q3 revenues of $10.9 million was above our $9.9 million estimate. In addition, Q3 cash flow from continuing operations, or adjusted EBITDA, was better than expected at a positive $1.17 million versus our loss estimate of $1.53 million.
Strong voucher sales. The company's cash position increased to a significant $51.7 million as of Sept. 30, nearly double the $26.7 million as of June 30, 2020, reflecting strong voucher sales. While redemptions of vouchers are likely to step up in coming quarters, we believe that the company's cash position could increase to $60 million or even $70 million by the end of the fourth quarter based on ...
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.