TZOO Earnings Prediction
The chart below shows how TZOO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TZOO sees a -1.09% change in stock price 10 days leading up to the earnings, and a +11.38% change 10 days following the report. On the earnings day itself, the stock moves by +4.33%. This data can give you a slight idea of what to expect for the next quarter's release.
TZOO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
20.68M
-2.23%
2.89%
Gross Margin
86.65%
-0.68%
-0.77%
Operating Margin
23.38%
10.39%
16.15%
Net Margin
15.78%
2.40%
-2.59%
EPS
0.26
-3.70%
0.00%
No Data Available
TZOO Earnings Analysis
Travelzoo Corporation (TZOO.O) Earnings Conference Call
Positive
Q4 Revenue and Income Growth: Travelzoo's consolidated Q4 revenue was $20.7 million, with operating income increasing 8% year-over-year to $4.9 million, representing 24% of revenue.
Segment Profit Growth: Operating profit increased in both North America and Jack's Flight Club segments, indicating strong performance in these areas.
Membership Fee Revenue Growth: Revenue from membership fees increased to $1.6 million, with expectations for substantial growth in 2025 as more legacy members convert to club members.
Operating Margin Analysis: GAAP operating margin was 23% in Q4 2024, with North America achieving a higher margin of 33%.
Q4 Non-GAAP Operating Profit: Non-GAAP operating profit for Q4 2024 was $5.4 million, or 26% of revenue, showing improvement from the prior year.
Strong Cash Position: The company has a solid cash position of $17.7 million as of December 31, 2024, even after share repurchases.
Q1 2025 Revenue Growth: Looking ahead, Q1 2025 is expected to see revenue growth driven by membership fee revenue, with a projected 5% incremental growth this quarter.
Enhanced Member Offers: Travelzoo aims to leverage its global reach and strong relationships with travel suppliers to negotiate more offers for club members, enhancing value for members.
Negative
Q4 Revenue Decline: Consolidated Q4 revenue was $20.7 million, down 2% from the prior year, indicating a slight decline in overall revenue performance.
EPS Decline Despite Income Growth: Despite an increase in operating income, EPS was slightly lower compared to last year due to extraordinary income from discontinued operations and unfavorable foreign exchange trends.
European Revenue Decline: Revenue in Europe decreased, primarily due to fluctuations in Germany, which could indicate instability in that market segment.
Europe Segment Challenges: Operating profit decreased in the Europe segment, suggesting challenges in that region compared to North America and Jack's Flight Club segments.
Membership Fee Impact: The introduction of a membership fee for Travelzoo may alienate legacy members, who represent over 95% of Travelzoo's reach, potentially impacting customer retention.
Fixed Cost Risk Factors: The reliance on fixed operating costs may pose risks if revenue growth does not materialize as expected, especially in the short to midterm.
Investment in Travelzoo META: The company is still in the early stages of developing Travelzoo META, which may require significant investment without guaranteed returns.
TZOO FAQs
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TZOO Earning Call Sentiment
Travelzoo (TZOO) Q4 2024 Earnings Call Transcript
TZOO.O
1.37%Positive
The earnings call presents mixed signals: a slight revenue decline and currency impact on EPS are negatives, but increased operating income and membership fee revenue growth are positives. The Q&A reveals market uncertainties, especially in Europe, and management's reluctance to provide detailed conversion metrics raises concerns. Despite a share repurchase program, fixed costs and competitive pressures pose risks. Overall, the neutral rating reflects the balance between these factors, with no clear catalyst to drive significant stock price movement in the short term.
