Monday, November 01, 2021

Travelzoo (TZOO)
The Speedy Recovery Trips

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.

Refer to the full report for the price target, fundamental analysis, and rating.

Q3 disappoints. Total company revenues increased a solid 14% to $15.7 million, but it was well below our $20.7 million estimate and represented a sequential quarterly revenue decline from $19.1 million in Q2. Management believes that news about the Covid Delta variant, prospect of travel restrictions, kept travelers from booking, which adversely affected results.

Despite revenue headwinds, Q4 is expected to be profitable.  The company has significantly reduced fixed costs and has the capability to report profits despite a slower than expected revenue recovery. Revenue visibility remains low. As such, we are lowering our Q4 revenue estimate from $22.5 million to $17.7 million. Our adj. EBITDA estimate is lowered from $6.7 million to $2.5 million. Nonetheless ...

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.