Travelzoo Reports Third Quarter 2014 Results
NEW YORK, October 16, 2014 - Travelzoo Inc (NASDAQ: TZOO)., a global Internet media company, today announced financial results for the third quarter ended September 30, 2014, with revenue of $33.5 million, a decrease of 10% year-over-year. Net income was $2.5 million, with earnings per share of $0.17. Non-GAAP net income was $286,000, with non-GAAP earnings per share of $0.02.
• Revenue of $33.5 million, down 10% year-over-year
• Operating profit of $2.7 million
• Earnings per share of $0.17, compared to loss per share of $1.24 in the prior-year period
• Non-GAAP earnings per share of $0.02, compared to $0.19 in the prior-year period
• Cash flow from operations of $508,000
"We continued to invest into our products, and decided to increase our marketing spend by $2.4 million over the previous quarter, which affected earnings per share by $0.12," said Chris Loughlin, chief executive officer. "We remain focused on leveraging our global scale and trusted brand to improve earnings in future periods."
North America business segment revenue decreased 14% year-over-year to $22.6 million. Operating profit for the third quarter was $238,000, or 1% of revenue, down from $2.5 million, or 10% of revenue, in the prior-year period.
Europe business segment revenue decreased 1% year-over-year to $10.9 million. In local currency terms, revenue decreased 9% year-over-year. Operating profit for the third quarter was $196,000, or 2% of revenue, down from $1.5 million, or 13% of revenue in the prior-year period.
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 24.2 million as of September 30, 2014, up 4% from September 30, 2013. In North America, total unduplicated number of subscribers was 17.0 million as of September 30, 2014, up 3% from September 30, 2013. In Europe, total unduplicated number of subscribers was 7.3 million as of September 30, 2014, up 9% from September 30, 2013.
During the third quarter of 2014, Travelzoo generated $508,000 of cash from operating activities. Capital expenditures were $1.5 million, consistent with the prior-year period. As of September 30, 2014, cash and cash equivalents were $57.2 million.