Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 03, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Travelzoo Inc | ||
Entity Central Index Key | 1,133,311 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 51,797,780 | ||
Entity Common Stock, Shares Outstanding | 13,407,235 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 26,838 | $ 35,128 |
Accounts receivable, less allowance for doubtful accounts of $295 and $384 as of December 31, 2016 and 2015, respectively | 14,415 | 16,398 |
Income tax receivable | 542 | 1,356 |
Deferred tax assets | 793 | 1,230 |
Deposits | 105 | 782 |
Prepaid expenses and other | 1,773 | 2,167 |
Total current assets | 44,466 | 57,061 |
Deposits and other | 702 | 516 |
Deferred tax assets | 1,052 | 1,769 |
Restricted cash | 1,152 | 1,328 |
Property and equipment, net | 6,158 | 7,905 |
Total assets | 53,530 | 68,579 |
Current liabilities: | ||
Accounts payable | 19,714 | 23,655 |
Accrued expenses and other | 8,699 | 10,140 |
Deferred revenue | 719 | 1,085 |
Income tax payable | 691 | 477 |
Note payable to related party | 0 | 5,658 |
Total current liabilities | 29,823 | 41,015 |
Long-term tax liabilities | 2,879 | 3,000 |
Long-term deferred rent and other | 2,764 | 3,177 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share (5,000 shares authorized; none issued) | 0 | 0 |
Common stock, $0.01 par value (40,000 shares authorized; 13,462 shares issued and outstanding as of December 31, 2016 and 14,518 shares issued and outstanding as of December 31, 2015) | 135 | 150 |
Additional paid-in capital | 0 | 7,759 |
Retained earnings | 21,716 | 17,386 |
Accumulated other comprehensive loss | (3,787) | (3,908) |
Total stockholders’ equity | 18,064 | 21,387 |
Total liabilities and stockholders’ equity | $ 53,530 | $ 68,579 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Allowance for doubtful accounts | $ 295 | $ 384 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 13,462,000 | 14,518,000 |
Common stock, shares outstanding (in shares) | 13,462,000 | 14,518,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||||||||
Revenues | $ 29,262 | $ 30,440 | $ 34,046 | $ 34,804 | $ 32,051 | $ 33,728 | $ 36,792 | $ 39,145 | $ 128,552 | $ 141,716 | $ 153,240 |
Cost of revenues | 3,331 | 3,361 | 3,612 | 4,009 | 4,328 | 4,742 | 5,208 | 4,546 | 14,313 | 18,824 | 19,174 |
Gross profit | 25,931 | 27,079 | 30,434 | 30,795 | 27,723 | 28,986 | 31,584 | 34,599 | 114,239 | 122,892 | 134,066 |
Operating expenses: | |||||||||||
Sales and marketing | 15,751 | 17,184 | 19,135 | 18,959 | 17,161 | 19,089 | 20,715 | 22,077 | 71,029 | 79,042 | 83,511 |
Product development | 2,164 | 2,317 | 2,089 | 2,875 | 3,316 | 2,917 | 3,206 | 3,089 | 9,445 | 12,528 | 11,326 |
General and administrative | 6,077 | 5,373 | 5,434 | 5,813 | 6,270 | 6,120 | 5,335 | 6,451 | 22,697 | 24,176 | 29,002 |
Unexchanged promotional shares | 0 | 0 | (7,583) | ||||||||
Total operating expenses | 23,992 | 24,874 | 26,658 | 27,647 | 26,747 | 28,126 | 29,256 | 31,617 | 103,171 | 115,746 | 116,256 |
Income from operations | 1,939 | 2,205 | 3,776 | 3,148 | 976 | 860 | 2,328 | 2,982 | 11,068 | 7,146 | 17,810 |
Other income (loss), net | (480) | 251 | (91) | 133 | (376) | (202) | (218) | (446) | (187) | (1,242) | 91 |
Income before income tax | 1,459 | 2,456 | 3,685 | 3,281 | 600 | 658 | 2,110 | 2,536 | 10,881 | 5,904 | 17,901 |
Income tax expense (benefit) | 516 | 837 | 1,665 | 1,232 | 165 | (8,199) | 1,268 | 1,806 | 4,250 | (4,960) | 4,839 |
Net income | $ 943 | $ 1,619 | $ 2,020 | $ 2,049 | $ 435 | $ 8,857 | $ 842 | $ 730 | $ 6,631 | $ 10,864 | $ 13,062 |
Basic net income per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.14 | $ 0.14 | $ 0.03 | $ 0.60 | $ 0.06 | $ 0.05 | $ 0.47 | $ 0.74 | $ 0.88 |
Diluted net income per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.14 | $ 0.14 | $ 0.03 | $ 0.60 | $ 0.06 | $ 0.05 | $ 0.47 | $ 0.74 | $ 0.88 |
Shares used in computing basic net income per share (in shares) | 13,997 | 14,722 | 14,768 | ||||||||
Shares used in computing diluted net income per share (in shares) | 13,997 | 14,722 | 14,809 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 6,631 | $ 10,864 | $ 13,062 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 121 | (1,306) | (2,228) |
Total comprehensive income | $ 6,752 | $ 9,558 | $ 10,834 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2013 | 14,991 | |||||
Beginning balance at Dec. 31, 2013 | $ 30,096 | $ 163 | $ (15,662) | $ 29,490 | $ 16,479 | $ (374) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 982 | 982 | ||||
Tax benefit shortfall from forfeiture/cancellation of stock options | (186) | (186) | ||||
Repurchase of common stock, net (in shares) | (261) | |||||
Repurchase of common stock, net | (5,555) | (5,855) | 300 | |||
Proceeds from sale of shares fractionalized from reverse/forward stock split, including transaction costs | (344) | (344) | ||||
Foreign currency translation adjustment | (2,228) | (2,228) | ||||
Net income | 13,062 | 13,062 | ||||
Ending balance at Dec. 31, 2014 | 35,827 | $ 163 | (21,517) | 30,586 | 29,197 | (2,602) |
Ending balance shares (in shares) at Dec. 31, 2014 | 14,730 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 401 | 401 | ||||
Repurchase of common stock, net (in shares) | (212) | |||||
Repurchase of common stock, net | (1,724) | (1,724) | 0 | |||
Proceeds from sale of shares fractionalized from reverse/forward stock split, including transaction costs | (102) | (102) | ||||
Foreign currency translation adjustment | (1,306) | (1,306) | ||||
Retirement of treasury stock | 0 | $ (13) | 23,241 | (23,228) | ||
Acquisition of Asia Pacific business | (22,573) | (22,573) | ||||
Net income | 10,864 | 10,864 | ||||
Ending balance at Dec. 31, 2015 | $ 21,387 | $ 150 | 0 | 7,759 | 17,386 | (3,908) |
Ending balance shares (in shares) at Dec. 31, 2015 | 14,518 | 14,518 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 933 | 933 | ||||
Repurchase of common stock, net (in shares) | (1,056) | |||||
Repurchase of common stock, net | (9,505) | $ (15) | 0 | (7,189) | (2,301) | |
Foreign currency translation adjustment | 121 | 121 | ||||
Tax benefit shortfall from forfeiture/cancellation of stock options | (1,503) | (1,503) | ||||
Net income | 6,631 | 6,631 | ||||
Ending balance at Dec. 31, 2016 | $ 18,064 | $ 135 | $ 0 | $ 0 | $ 21,716 | $ (3,787) |
Ending balance shares (in shares) at Dec. 31, 2016 | 13,462 | 13,462 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 6,631,000 | $ 10,864,000 | $ 13,062,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 2,530,000 | 2,788,000 | 2,986,000 |
Provision for losses on accounts receivable | 100,000 | (20,000) | 35,000 |
Stock-based compensation | 933,000 | 401,000 | 982,000 |
Deferred income tax | (199,000) | (269,000) | 303,000 |
Impairment of software | 0 | 0 | 249,000 |
Net foreign currency effect | (315,000) | 480,000 | (16,000) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,313,000 | (789,000) | (830,000) |
Income tax receivable | 816,000 | 2,371,000 | (1,114,000) |
Prepaid expenses and other | 957,000 | 675,000 | 822,000 |
Accounts payable | (2,463,000) | (1,139,000) | (7,893,000) |
Reserve for unexchanged promotional shares | 0 | (1,393,000) | (11,333,000) |
Accrued expenses and other | (1,747,000) | (1,681,000) | 52,000 |
Income tax payable | 287,000 | (161,000) | 608,000 |
Other non-current liabilities | (121,000) | (7,935,000) | 500,000 |
Net cash provided by (used in) operating activities | 8,722,000 | 4,192,000 | (1,587,000) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (909,000) | (1,282,000) | (3,813,000) |
Release of restricted cash | 0 | 64,000 | 226,000 |
Net cash used in investing activities | (909,000) | (1,218,000) | (3,587,000) |
Cash flows from financing activities: | |||
Acquisition of the Asia Pacific business | 58,000 | (16,974,000) | 0 |
Payment of loan to related party | (5,658,000) | (3,250,000) | 0 |
Proceeds from loan from related party | 0 | 2,224,000 | 1,000,000 |
Increase in bank overdraft | 0 | 44,000 | 341,000 |
Decrease in bank overdraft | 0 | (385,000) | 0 |
Repurchase of common stock | (9,662,000) | (1,569,000) | (5,555,000) |
Reverse/forward stock split, including transaction costs | 0 | (102,000) | (479,000) |
Net cash used in financing activities | (15,262,000) | (20,012,000) | (4,693,000) |
Effect of exchange rate changes on cash and cash equivalents | (841,000) | (3,251,000) | (3,384,000) |
Net decrease in cash and cash equivalents | (8,290,000) | (20,289,000) | (13,251,000) |
Cash and cash equivalents at beginning of year | 35,128,000 | 55,417,000 | 68,668,000 |
Cash and cash equivalents at end of year | 26,838,000 | 35,128,000 | 55,417,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net | 3,309,000 | 801,000 | 4,606,000 |
Cash paid for interest | 88,000 | 128,000 | 0 |
Note payable for the acquisition of the Asia Pacific business | 0 | 5,658,000 | 0 |
Leasehold improvements funded by landlord | $ 0 | $ 0 | $ 624,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) The Company and Basis of Presentation Travelzoo Inc. (the “Company” or “Travelzoo”) is a global publisher of travel and entertainment offers. We inform our members in Asia Pacific, Europe and North America, as well as website users, about the best travel, entertainment and local deals available from thousands of companies. Our deal experts source, research and test-book offers, recommending only those that meet Travelzoo’s rigorous quality standards. We provide travel, entertainment, and local businesses with a fast, flexible, and cost effective way to reach consumers. Our revenues are generated primarily from advertising fees. Our publications and products include the Travelzoo websites (travelzoo.com, travelzoo.ca, travelzoo.co.uk, travelzoo.de, travelzoo.es, travelzoo.fr, cn.travelzoo.com, travelzoo.co.jp, travelzoo.com.au, travelzoo.com.hk, travelzoo.com.tw, among others), the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, the SuperSearch pay-per-click travel search tool, and the Travelzoo Network , a network of third-party websites that list travel deals published by Travelzoo. Our Travelzoo websites include Local Deals and Getaway listings that allow our members to purchase vouchers for deals from local businesses such as spas, hotels and restaurants. We receive a percentage of the face value of the voucher from the local businesses. We also operate Fly.com , a travel search engine that allows users to quickly and easily find the best prices on flights from hundreds of airlines and online travel agencies. Ralph Bartel, who founded Travelzoo and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. ("Azzurro"). As of December 31, 2016 , Azzurro is the Company's largest stockholder, holding approximately 55.2% of the outstanding shares. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with accounting principles generally accepted in the United States of America. Significant estimates included in the consolidated financial statements and related notes include revenue recognition, valuation allowances for deferred tax assets, uncertainties in income taxes, stock-based compensation, loss contingencies, and useful lives of property, plant and equipment. Actual results could differ materially from those estimates. (b) Revenue Recognition The Company’s revenue consists primarily of advertising sales. Advertising revenues are principally derived from the sale of advertising in Asia Pacific, Europe and North America on the Travelzoo website, in the Travelzoo Top 20 e-mail newsletter, in Newsflash , from SuperSearch , from the Travelzoo Network , and from Fly.com . The Company also generates revenue from the sale of vouchers through our Local Deals and Getaway e-mail alert services and providing hotel bookings. Advertising revenues are recognized in the period in which the advertisement is displayed or the voucher sale has been completed, provided that evidence of an arrangement exists, the fees are fixed or determinable and collection of the resulting receivable is reasonably assured. The Company evaluates each of these criteria as follows: • Evidence of an arrangement. The Company considers an insertion order signed by the advertiser or its agency to be evidence of an arrangement. • Delivery. Delivery is considered to occur when the advertising has been displayed, the click-throughs have been delivered or the voucher sale has been completed, as applicable. • Fixed or determinable fee. The Company's arrangements with its customers specifies the price paid for advertising services. • Collection is deemed reasonably assured . The Company conducts a credit review for all advertising transactions at the time of the arrangement to determine the creditworthiness of the advertiser. Collection is deemed reasonably assured if it is expected that the advertiser will be able to pay amounts under the arrangement as payments become due. Collection is deemed not reasonably assured when an advertiser is perceived to be in financial distress, which may be evidenced by weak industry condition, bankruptcy filing, or previously billed amounts that are past due. If it is determined that collection is not reasonably assured, then revenue is deferred and recognized upon cash collection. Collection is deemed reasonably assured for our voucher sales to consumers as these transactions require the use of credit cards subject to authorization. The Company recognizes revenue for fixed-fee advertising arrangements ratably over the term of the insertion order as described below, with the exception of Travelzoo Top 20 or Newsflash insertions, which are recognized upon delivery. The majority of insertion orders have terms that begin and end in a quarterly reporting period. In the cases where at the end of a quarterly reporting period the term of an insertion order is not complete, the Company allocates the total arrangement fee to each element based on the relative estimated selling price of each element. The Company recognizes revenue for the period based on elements delivered during the period. The Company uses prices stated on its internal rate card, which represents stand-alone sales prices, to establish estimated selling prices. The stand-alone price is the price that would be charged if the advertiser purchased only the individual insertion. Fees for variable-fee advertising arrangements are recognized based on the number of impressions displayed, number of clicks delivered, number of emails sent or number of referrals generated during the period. Insertion orders that include fixed-fee advertising are invoiced upon acceptance of the insertion order and on the first day of each month over the term of the insertion order, with the exception of Travelzoo Top 20 or Newsflash listings, which are invoiced upon delivery. Insertion orders that include variable-fee advertising are invoiced at the end of the month. The Company’s standard terms state that in the event that Travelzoo fails to publish advertisements as specified in the insertion order, the liability of Travelzoo to the advertiser shall be limited to, at Travelzoo’s sole discretion, a pro rata refund of the advertising fee, the placement of the advertisements at a later time in a comparable position, or the extension of the term of the insertion order until the advertising is fully delivered. The Company believes that no significant obligations exist after the full delivery of advertising. Revenues from advertising sold to advertisers through agencies are reported at the net amount billed to the agency. Costs incurred for our affiliate traffic from our Travelzoo Network are classified as cost of revenues in our consolidated statements of operations. For Local Deals and Getaway products , the Company earns a fee for acting as an agent in these transactions which is recorded on a net basis and is included in revenue upon completion of the voucher sale. Certain merchant contracts in foreign locations allow us to retain fees related to vouchers sold that are not redeemed by purchasers upon expiration, which we recognize as revenue after the expiration of the redemption period and after there are no further obligations to provide funds to merchants, members or others. Commission revenues generated through provision of hotel booking reservations to hotels are recognized upon the estimated date the stay occurs at the hotel, which includes estimates of cancellations of the hotel bookings based upon historical patterns. If the hotel booking cannot be canceled then revenue is recognized upon booking. (c) Reserve for Member Refunds The Company records an estimated reserve for member refunds based on our historical experience at the time revenue is recorded for Local Deals and Getaway voucher sales. We accrue costs associated with refunds in accrued expenses on the consolidated balance sheets. We consider many key factors such as the historical refunds based upon the time lag since the sale, historical reasons for refunds, time period that remains until the deal expiration date, any changes in refund procedures and estimates of redemptions and breakage. Should any of these factors change, the estimates made by management will also change, which could impact the level of our future reserves for member refunds. Specifically, if the financial condition of our advertisers, the business that is providing the vouchered service, were to deteriorate, affecting their ability to provide the services to our members, additional reserves for member refunds may be required. Estimated member refunds that are determined to be recoverable from the merchant are recorded in the consolidated statements of operations as a reduction to revenue. We accrue costs associated with refunds in accrued expenses on the consolidated balance sheets. Estimated member refunds that are determined not to be recoverable from the merchant, are presented as a cost of revenue. If our judgments regarding estimated member refunds are inaccurate, reported results of operations could differ from the amount we previously accrued. (d) Allowance for Doubtful Accounts The Company records a provision for doubtful accounts based on its historical experience of write-offs and a detailed assessment of our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, management considers the age of the accounts receivable, historical write-offs, the creditworthiness of the advertiser, the economic conditions of the advertiser’s industry, and general economic conditions, among other factors. Should any of these factors change, the estimates made by management will also change, which could impact the level of the future provision for doubtful accounts. Specifically, if the financial condition of our advertisers were to deteriorate, affecting their ability to make payments, additional provision for doubtful accounts may be required. (e) Advertising Costs Advertising costs are expensed as incurred. Online advertising is expensed as incurred over the period the advertising is displayed. Advertising costs amounted to $22.0 million , $25.6 million and $20.8 million for years ended December 31, 2016, 2015 and 2014 , respectively. (f) Operating Leases The Company leases facilities and equipment under various operating leases. These lease agreements generally include rent holidays rent escalation clauses and renewal periods at the Company's option. The Company recognizes expense for scheduled rent increases on a straight-line basis over the lease term beginning with the date it takes possession of the leased facilities and equipment. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the current lease term, or estimated life, if shorter. (g) Stock-Based Compensation The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized as expense over the related employees’ requisite service periods in the Company’s consolidated statements of operations. See Note 8 to the accompanying consolidated financial statements for a further discussion on stock-based compensation. (h) Foreign Currency All foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income (loss). Realized gains and losses from foreign currency transactions are recognized as gain or loss on foreign currency in the consolidated statements of operations. Total foreign currency transaction net losses of $211,000 , $1.1 million and $105,000 for 2016, 2015 and 2014, respectively, are included in Other income (loss), net in the Company’s consolidated statements of operations. (i) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards and credit carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, valuation allowances must be established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Significant judgment is required in evaluating the Company's uncertain tax positions and determining the Company's provision for income taxes. Although the Company believes it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the progress or closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. (j) Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to certain changes in equity that are excluded from net income (loss). For the Company, other comprehensive income (loss) includes foreign currency translation adjustments. Total comprehensive income (loss) for all periods presented has been disclosed in the consolidated statements of comprehensive loss. (k) Certain Risks and Uncertainties The Company’s cash, cash equivalents and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. The accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. As of December 31, 2016 and 2015 , the Company had one customer that accounted for 16% and 15% , respectively, of accounts receivable. (l) Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with maturities of three months or less on the date of purchase. (m) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Additions and improvements are capitalized. Maintenance and repairs are expensed as incurred. The Company also includes in fixed assets the capitalized cost of internal-use software and website development, including software used to upgrade and enhance its website and processes supporting the Company’s business in accordance with the framework established by the FASB accounting guidance for accounting for the cost of computer software developed or obtained for internal use and accounting for website development costs. Costs incurred in the planning stage and operating stage are expensed as incurred while costs incurred in the application development stage and infrastructure development stage are capitalized, assuming such costs are deemed to be recoverable. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 3 to 5 years for computer hardware and software, capitalized internal-use software and website development costs, and office equipment and office furniture. The Company depreciates leasehold improvements over the term of the lease or the estimated useful life of the asset, whichever is shorter. (n) Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with the accounting standard relating to impairment of long-lived assets, which requires an impairment loss to be recognized on assets to be held and used if the carrying amount of a long-lived asset group is not recoverable from its undiscounted cash flows. The amount of the impairment loss is measured as the difference between the carrying amount and the fair value of the asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. During the year ended December 31, 2014, the Company recorded a charge to write down the value of certain internally developed software applications that were no longer determined to have alternative use for $249,000 . No impairment loss was recognized during years ended December 31, 2016 and 2015 . (o) Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most of the existing revenue recognition guidance in U.S. GAAP when it becomes effective. This new accounting standard is effective for the Company for annual periods in fiscal years beginning after December 15, 2017 (as amended in August 2015 by ASU 2015-14, Deferral of the Effective Date). In December 27, 2016, FASB issued Accounting Standards Update (ASU) 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on construction-type and production-type contracts, and various disclosures. ASU 2016-20 will go into effect once ASU 2014-09 takes effect. The Company has not yet selected the transition method. The Company will implement the provisions of ASU 2014-09 as of January 1, 2018. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern, which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. This accounting standard update applies to all entities and was effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early adoption permitted. The Company adopted this standard during fiscal year 2016. The adoption of this accounting standard update did not have a material impact on its consolidated results of operations, financial position or cash flows. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The updated standard is effective for us beginning on January 1, 2017 with early application permitted as of the beginning of any interim or annual reporting period. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In February 2016, the FASB issued an accounting standard update ASU 2016-02, Leases, which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. This accounting standard update will be effective for the Company on January 1, 2019. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This accounting standard update will be effective for the Company on January 1, 2017 with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which addresses eight classification issues related to the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash, which addresses classification and presentation of changes in restricted cash on the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. Both ASU 2016-15 and ASU 2016-18 are effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017 and should apply using a retrospective transition method to each period presented. These accounting standard updates will be effective for the Company on January 1, 2018. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. This accounting standard update is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. This accounting standard update will be effective for the Company on January 1, 2018 with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method. The following table sets forth the calculation of basic and diluted net income per share (in thousands, except per share amounts): Year Ended December 31, 2016 2015 2014 Basic net income per share: Net income $ 6,631 $ 10,864 $ 13,062 Weighted average common shares 13,997 14,722 14,768 Basic net income per share $ 0.47 $ 0.74 $ 0.88 Diluted net income per share: Net income $ 6,631 $ 10,864 $ 13,062 Weighted average common shares 13,997 14,722 14,768 Effect of dilutive securities: stock options — — 41 Diluted weighted average common shares 13,997 14,722 14,809 Diluted net income per share $ 0.47 $ 0.74 $ 0.88 For the years ended December 31, 2016 , 2015 and 2014 , options to purchase 600,000 , 775,000 and 125,000 shares of common stock, respectively, were not included in the computation of diluted net income per share because the effect would have been anti-dilutive. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid expenses and other consist of the following (in thousands): December 31, 2016 2015 Prepaid expenses $ 1,334 $ 1,630 Other current assets 439 537 Total prepaid expenses and other $ 1,773 $ 2,167 Property and equipment consist of the following (in thousands): December 31, 2016 2015 Computer hardware and software $ 4,969 $ 4,811 Office equipment and office furniture 8,802 9,306 Capitalized internal-use software and website development 3,265 3,089 Leasehold improvements 6,259 6,064 23,295 23,270 Less accumulated depreciation and amortization (17,137 ) (15,365 ) Total $ 6,158 $ 7,905 Depreciation expense was $2.1 million , $2.2 million , and $2.6 million for the years ended December 31, 2016, 2015 and 2014 , respectively. Amortization of capitalized internal-use software and website development costs was $460,000 , $308,000 and $192,000 for the years ended December 31, 2016, 2015 and 2014 , respectively. Changes to the allowance for doubtful accounts and reserve for member refunds are as follows (in thousands): Allowance for doubtful accounts Reserve for Balance at January 1, 2014 $ 436 $ 813 Additions — charged to costs and expenses, or contra revenue, net 170 1,299 Deductions — recoveries of amounts previously charged-off (118 ) — Deductions — write-offs (44 ) (1,313 ) Balance at December 31, 2014 444 799 Additions — charged to costs and expenses, or contra revenue, net 295 776 Deductions — recoveries of amounts previously charged-off (179 ) — Deductions — write-offs (176 ) (1,045 ) Balance at December 31, 2015 384 530 Additions — charged to costs and expenses, or contra revenue, net 107 507 Deductions — recoveries of amounts previously charged-off (89 ) — Deductions — write-offs (107 ) (563 ) Balance at December 31, 2016 $ 295 $ 474 Local Deals and Getaway merchant payable included in accounts payable was $14.8 million and $19.1 million , as of December 31, 2016 and 2015 , respectively. Accrued expenses and other consist of the following (in thousands): December 31, 2016 2015 Accrued advertising expense $ 1,828 $ 1,801 Accrued compensation expense 3,288 4,373 Reserve for member refunds 474 530 Other accrued expenses 2,678 2,963 Deferred rent 431 473 Total accrued expenses and other $ 8,699 $ 10,140 At December 31, 2016 and 2015 , accounts receivable, accounts payable and accrued expenses are not measured at fair value; however, the Company believes that the carrying amounts of these assets and liabilities are a reasonable estimate of their fair value because of their relative short maturity. At December 31, 2015 , the notes payable to related party is not measured at fair value; however, the Company believes that the carrying amounts of these assets and liabilities are a reasonable estimate of their fair value because of their relatively short maturity and subsequent payment. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company was formed as a result of a combination and merger of entities founded by the Company’s principal stockholder, Ralph Bartel. In 2002, Travelzoo.com Corporation was merged into Travelzoo Inc. Under and subject to the terms of the merger agreement, holders of promotional shares of Travelzoo.com Corporation (“Netsurfers”) who established that they had satisfied certain prerequisite qualifications were allowed a period of 2 years following the effective date of the merger to receive one share of Travelzoo Inc. in exchange for each share of common stock of Travelzoo.com Corporation. In 2004, two years following the effective date of the merger, certain promotional shares remained unexchanged. As the right to exchange these promotional shares expired, no additional shares were reserved for issuance. Thereafter, the Company began to offer a voluntary cash program for those who established that they had satisfied certain prerequisite qualifications for Netsurfer promotional shares as further described below. Beginning in 2010, the Company became subject to unclaimed property audits of various states in the United States related to the above unexchanged promotional shares. The Company recorded charges for the estimated settlements with these states of $20.0 million , $3.0 million and $22.0 million in 2011, 2012 and 2013, respectively. In 2014, the Company released $7.6 million of the reserve related to the completion of settlements with the states and in 2015 the Company paid the final settlements outstanding. Although the Company has settled the states unclaimed property claims with all states, the Company may still receive inquiries from certain potential Netsurfer promotional stockholders that had not provided their state of residence to the Company by April 25, 2004. Therefore, the Company is continuing its voluntary program under which it makes cash payments to individuals related to the promotional shares for individuals whose residence was unknown by the Company and who establish that they satisfy the original conditions required for them to receive shares of Travelzoo.com Corporation, and who failed to submit requests to convert their shares into shares of Travelzoo Inc. within the required time period. This voluntary program is not available for individuals whose promotional shares have been escheated to a state by the Company, except those individuals for which their residence was unknown to the Company. The accompanying consolidated financial statements include a charge for payments under this voluntary program in general and administrative expenses of $ 2,000 , $1,000 and $6,000 for the year ended December 31, 2016 , 2015 and 2014 , respectively. The total cost of this voluntary program is not reliably estimable because it is based on the ultimate number of valid requests received and future levels of the Company’s common stock price. The Company’s common stock price affects the potential liability because the amount of cash payments under the program is based in part on the recent level of the stock price at the date valid requests are received. The Company does not know how many of the requests for shares originally received by Travelzoo.com Corporation in 1998 were valid, but the Company believes that only a portion of such requests were valid. In order to receive payment under this voluntary program, a person is required to establish that such person validly held shares in Travelzoo.com Corporation. The Company leases office space in Australia, Canada, China, France, Germany, Hong Kong, Japan, Singapore, Spain, Taiwan, the U.K., and the U.S. under operating leases which expire between March 31, 2017 and November 30, 2024. Rent expense was $5.3 million , $5.8 million and $6.0 million for years ended December 31, 2016, 2015 and 2014 , respectively. Some of these lease agreements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight line basis. On August 20, 2015, as part of the Asia Pacific acquisition, Travelzoo (Europe) Limited issued a promissory note to Azzurro with a principal amount of $5.7 million , with a maturity date of August 20, 2018 and the ability to pay off principal prior to this maturity date with no prepayment penalty and a stated interest rate of 7% . In January 2016, the full amount of the loan was paid off by Travelzoo (Europe) Limited. The Company has purchase commitments which represent the minimum obligations the Company has under agreements with certain vendors. These minimum obligations are less than the Company's projected use for those periods. Payments may be more than the minimum obligations based on actual use. The following summarizes the Company's principal contractual commitments as of December 31, 2016 (in thousands): 2017 2018 2019 2020 2021 Thereafter Total Operating leases $ 5,519 $ 4,584 $ 4,032 $ 3,582 $ 3,003 $ 5,503 $ 26,223 Purchase obligations 733 508 — — — — 1,241 Total commitments $ 6,252 $ 5,092 $ 4,032 $ 3,582 $ 3,003 $ 5,503 $ 27,464 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income tax expense are as follows (in thousands): Year Ended December 31, 2016 2015 2014 U.S. $ 7,902 $ 5,334 $ 14,363 Foreign 2,979 570 3,538 $ 10,881 $ 5,904 $ 17,901 Income tax expense consists of current and deferred components categorized by federal, state and foreign jurisdictions, as shown below. The current provision is generally that portion of income tax expense that is currently payable to the taxing authorities. The Company makes estimated payments of these amounts during the year. The deferred tax provision results from changes in the Company’s deferred tax assets (future deductible amounts) and tax liabilities (future taxable amounts), which are presented in the table below: Current Deferred Total (In thousands) Year Ended December 31, 2016 Federal $ 2,531 $ (123 ) $ 2,408 State 406 23 429 Foreign 1,510 (97 ) 1,413 $ 4,447 $ (197 ) $ 4,250 Year Ended December 31, 2015 Federal $ (5,851 ) $ (238 ) $ (6,089 ) State 337 51 388 Foreign 759 (18 ) 741 $ (4,755 ) $ (205 ) $ (4,960 ) Year Ended December 31, 2014 Federal $ 2,124 $ 294 $ 2,418 State 670 21 691 Foreign 1,725 5 1,730 $ 4,519 $ 320 $ 4,839 Income tax expense differed from the amounts computed by applying the U.S. federal statutory tax rate applicable to the Company’s level of pretax income as a result of the following (in thousands): Year Ended December 31, 2016 2015 2014 Federal tax at statutory rates $ 3,846 $ 2,083 $ 6,265 State taxes, net of federal income tax benefit 284 254 504 Expired capital loss carryforward — — 1,534 Change of valuation allowance 895 816 (586 ) Unexchanged promotional shares — — (2,654 ) Non-deductible expenses and other (38 ) 177 247 Uncertain tax positions (132 ) (7,935 ) 308 Foreign income taxed at different rates (605 ) (355 ) (779 ) Total income tax expense $ 4,250 $ (4,960 ) $ 4,839 The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 7,239 $ 6,940 State income taxes 159 142 Accruals and allowances 447 783 Stock based compensation 771 1,932 Unrealized foreign exchange losses 149 — Deferred revenue 113 292 Deferred rent 625 636 Total deferred tax assets 9,503 10,725 Valuation allowance (7,168 ) (6,940 ) Total deferred tax assets net of valuation allowance 2,335 3,785 Deferred tax liabilities: U.S. tax on undistributed earnings (173 ) (247 ) Property, equipment and intangible assets (351 ) (581 ) Total deferred tax liabilities (524 ) (828 ) Net deferred tax assets $ 1,811 $ 2,957 Changes in the deferred tax assets valuation allowance for the years ended December 31, 2014, 2015 and 2016 are as follows (in thousands): Balance at the beginning of the year Charged (Credited) to expenses Charged (Credited) to other account (*) Balance at end of year Deferred tax assets valuation allowance 2014 $ 7,450 (586 ) (433 ) $ 6,431 2015 $ 6,431 816 (307 ) $ 6,940 2016 $ 6,940 895 (667 ) $ 7,168 (*) Amounts not charged (credited) to expenses are charged (credited) to stockholder's equity or deferred tax assets (liabilities). As of December 31, 2016 , the Company has a valuation allowance of approximately $7.2 million related to foreign net operating loss carryforwards (“NOL”) of approximately $31.2 million for which it is more likely than not that the tax benefit will not be realized. The amount of the valuation allowance represented an increase of approximately $228,000 over the amount recorded as of December 31, 2015 , and was due to the increase in foreign operating losses. If not utilized, foreign NOL of $18.5 million may be carried forward indefinitely, and foreign NOL of $12.7 million will expire at various times between 2017 and 2025. United States income and foreign withholding taxes have not been provided on undistributed earnings for certain non-U.S. subsidiaries. The undistributed earnings on a book basis for the non-U.S. subsidiaries are approximately $ 11.8 million . The Company intends to reinvest these earnings indefinitely in its operations outside the U.S. If the undistributed earnings are remitted to the U.S. these amounts would be taxable in the U.S at the current federal and state tax rates net of foreign tax credits. Also, depending on the jurisdiction any distribution may be subject to withholding taxes at rates applicable for that jurisdiction. The estimated amount of the unrecognized deferred tax liability attributed to future dividend distributions of undistributed earnings is approximately $1.3 million at December 31, 2016 . The total amount of gross unrecognized tax benefits was $2.4 million as of December 31, 2016 , of which up to $1.9 million would affect the Company’s effective tax rate if realized. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits in 2014, 2015, and 2016 is as follows (in thousands): Gross unrecognized tax benefits balance at January 1, 2014 $ 9,987 Increase related to prior year tax positions — Decrease related to prior year tax positions — Increase related to current year tax positions 38 Settlements — Lapse of statute of limitations — Gross unrecognized tax benefits balance at December 31, 2014 10,025 Increase related to prior year tax positions 898 Decrease related to prior year tax positions — Increase related to current year tax positions 11 Settlements — Lapse of statute of limitations (8,264 ) Gross unrecognized tax benefits balance at December 31, 2015 2,670 Increase related to prior year tax positions 10 Decrease related to prior year tax positions — Increase related to current year tax positions — Settlements — Lapse of statute of limitations (323 ) Gross unrecognized tax benefits balance at December 31, 2016 $ 2,357 The Company’s policy is to include interest and penalties related to unrecognized tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in the overall income tax provision in the period that such determination is made. At December 31, 2016 , the Company had approximately $911,000 in accrued interest, of which $119,000 was a net increase in the amount accrued in 2016, and approximately $40,000 in accrued penalties, of which none was accrued in 2016. The Company is in various stages of multiple year examinations by federal taxing authorities. Although the timing of initiation, resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of the gross unrecognized tax benefits related to the method of computing income taxes in certain jurisdictions and losses reported on certain income tax returns could significantly change in the next 12 months. These changes may occur through settlement with the taxing authorities or the expiration of the statute of limitations on the returns filed. The Company is unable to estimate the range of possible adjustments to the balance of the gross unrecognized tax benefits. The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is subject to U.S. federal and certain state tax examinations for certain years after 2008 and is subject to California tax examinations for years after 2005. The material foreign jurisdictions where the Company is subject to potential examinations by tax authorities are the France, Germany, Spain and United Kingdom for tax years after 2009. The Company's 2009 federal income tax return is currently under examination, including a review of the impact of the sale of Asia Pacific business segment in 2009. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating income. The Company has received a Revenue Agent’s Report (RAR) generally issued at the conclusion of an IRS examination, which was consistent with the Notice of Proposed Adjustment it received earlier from the IRS for the 2009 calendar year related to the sale of our Asia Pacific business segment with additional penalties. The RAR proposes an increase to the Company's U.S. taxable income which would result in additional federal tax, federal penalty and state tax expense totaling approximately $31 million , excluding interest and state penalties, if any. The proposed adjustment is primarily driven by IRS’s view that the Asia Pacific business segment assets sold by the Company had a significantly higher valuation than the sales proceeds the Company received upon the sale. The Company disagrees with the proposed adjustments and intends to vigorously contest them. The Company did not make any adjustments to its liabilities for uncertain tax positions related to the RAR for the year ended December 31, 2016 because the Company does not believe the IRS’s valuation of Asia Pacific business segment assets is appropriate. If we are not able to resolve these proposed adjustments at the IRS examination level, we plan to pursue all available administrative and, if necessary, judicial remedies. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): Year Ended December 31, 2016 2015 2014 Beginning balance $ (3,908 ) $ (2,602 ) $ (374 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 121 (1,306 ) (2,228 ) Ending balance $ (3,787 ) $ (3,908 ) $ (2,602 ) There were no amounts reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2016, 2015 and 2014 . Accumulated other comprehensive income (loss) consists of foreign currency translation gain or loss. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company maintains a 401(k) Profit Sharing Plan & Trust (the “401(k) Plan”) for its employees in the United States. The 401(k) Plan allows employees of the Company to contribute up to 80% of their eligible compensation, subject to certain limitations. Since 2006, the Company matches employee contributions up to $1,500 per year. Employee contributions are fully vested upon contribution, whereas the Company’s matching contributions are fully vested after the first year of service. The Company also has various defined contribution plans for its international employees. The Company’s contributions to these benefit plans were approximately $1.9 million , $2.1 million and $2.2 million for the years ended December 31, 2016, 2015 and 2014 , respectively. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Options | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Stock Options | Stock-Based Compensation and Stock Options The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized on a straight-line basis as expense over the related employees’ requisite service periods in the Company’s consolidated statements of income. Cash flows resulting from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows. For the years ended years ended December 31, 2016, 2015 and 2014 , there were no stock option exercises and no excess tax benefits. In January 2012, the Company granted certain executives stock options to purchase 100,000 shares of common stock with an exercise price of $28.98 , of which 25,000 options vest and become exercisable annually starting on January 23, 2013. The options expire in January 2022. During 2014 , 25,000 options were canceled and 25,000 options were forfeited upon the departure of an executive. As of December 31, 2016 , 50,000 of the options are vested and outstanding. In September 2015, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $8.07 , of which 50,000 options became exercisable quarterly starting March 31, 2016. The options expire in September 2025. As of December 31, 2016 , 400,000 options were outstanding, of which 200,000 options were vested. In March 2016, the Company granted certain executives stock options to purchase 150,000 shares of common stock with an exercise price of $8.55 , of which 37,500 options vest and become exercisable annually starting on March 7, 2017. The options expire in March 2026. As of December 31, 2016 , 150,000 options were outstanding and none of these options were vested. Total stock-based compensation for fiscal years 2016 , 2015 and 2014 was $933,000 , $401,000 and $982,000 , respectively. The Company utilized the Black-Scholes option pricing model to value the stock options granted in 2016, 2015 and 2012. The Company used an expected life as defined under the simplified method, which is using an average of the contractual term and vesting period of the stock options. The risk-free interest rate used for the award is based on the U.S. Treasury yield curve in effect at the time of grant. The historical volatility was calculated based upon implied volatility of the Company's historical stock prices. The Company used a forfeiture rate of 0% . To the extent the actual forfeiture rate is different from what we have anticipated, stock-based compensation related to these options will be different from our expectations. The fair value of 2016, 2015 and 2012 stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2012 Weighted-average fair value of options granted per share $ 4.73 $ 4.42 $ 19.08 Historical volatility 58 % 59 % 74 % Risk-free interest rate 1.38 % 1.73 % 1.11 % Dividend yield — — — Expected life in years 6.25 5.75 6.25 As of December 31, 2016 , there was approximately $783,000 of unrecognized stock-based compensation expense related to outstanding 2015 stock options, expected to be recognized over 1 year, and approximately $565,000 of unrecognized stock-based compensation expense relating to outstanding 2016 stock options. This amount is expected to be recognized over 3.2 years. There was no unrecognized stock-based compensation expense relating to 2012 stock options grants. Option activities during the years ended December 31, 2014 , 2015 , and 2016 were as follows: Shares Weighted-Average Weighted-Average Aggregate (In thousands) Outstanding at January 1, 2014 475,000 $ 20.23 6.93 years $ 1,905 Options forfeited and canceled (50,000 ) $ 28.98 Outstanding at December 31, 2014 425,000 $ 19.20 5.79 years $ — Option Granted 400,000 $ 8.07 Options forfeited and canceled (50,000 ) $ 29.58 Outstanding at December 31, 2015 775,000 $ 12.78 5.53 years $ 120 Option Granted 150,000 $ 8.55 Options forfeited and canceled (325,000 ) $ 16.09 Outstanding at December 31, 2016 600,000 $ 9.93 8.55 years $ — Exercisable and fully vested at December 31, 2016 250,000 $ 12.25 8.01 years $ — Outstanding at December 31, 2016 and expected to vest thereafter 350,000 $ 8.28 8.94 years $ 394 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of years ended December 31, 2016, 2015 and 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2016 , 2015 , and 2014 . This amount changes based on the fair value of the Company’s stock. The Company’s policy is to issue shares from the authorized shares to fulfill stock option exercises. Outstanding options at December 31, 2016 were as follows: Exercise Price Shares Outstanding Options Outstanding Weighted- Average Exercise Price Shares Outstanding and Exercisable Options Exercisable Weighted- Average Remaining Contractual Life $ 28.98 50,000 5.07 years $ 28.98 50,000 5.07 years $ 8.07 400,000 8.75 years $ 8.07 200,000 8.75 years $ 8.55 150,000 9.19 years $ 8.55 — — |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program The Company's stock repurchase programs assist in offsetting the impact of dilution from employee equity compensation and for capital allocation purposes. Management is allowed discretion in the execution of the repurchase program based upon market conditions and consideration of capital allocation. In July 2012, the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock. There were 29,000 shares remaining to be repurchased under this program as of December 31, 2013, which were repurchased in 2014. In January 2014 , the Company announced a stock repurchase program authorizing the repurchase of up to 500,000 shares of the Company’s outstanding common stock. During the year ended December 31, 2014 , the Company repurchased 261,000 shares of common stock for an aggregate purchase price of $5.9 million , which were recorded as part of treasury stock as of December 31, 2014 . During the year ended December 31, 2015 , the Company repurchased 212,000 shares of common stock for an aggregate purchase price of $1.7 million , which were recorded as part of treasury stock as of December 31, 2015 . There were 56,000 shares remaining to be repurchased under this program as of December 31, 2015 . The shares repurchased were retired and reflected as a reduction of additional paid-in capital as of December 31, 2016. In February 2016, the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock. During the year ended December 31, 2016, the Company repurchased 1,056,000 shares of common stock for an aggregate purchase price of $9.5 million , which were retired and recorded as a reduction of additional paid-in capital until extinguished with the remaining amount reflected as a reduction of retained earnings. In February 2017 , the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock. |
Segment Reporting and Significa
Segment Reporting and Significant Customer Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting and Significant Customer Information | Segment Reporting and Significant Customer Information The Company manages its business geographically and has three reportable operating segments: Asia Pacific, Europe and North America. Asia Pacific consists of the Company's operations in Australia, China, Hong Kong, Japan, Taiwan, and Southeast Asia. Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. North America consists of the Company’s operations in Canada and the U.S. Management relies on an internal management reporting process that provides revenue and segment operating income (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating income (loss) are appropriate measures of evaluating the operational performance of the Company’s segments. The following is a summary of operating results and assets (in thousands) by business segment: Year Ended December 31, 2016 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 9,658 $ 38,637 $ 80,257 $ — $ 128,552 Intersegment revenues 64 (701 ) 637 — — Total net revenues $ 9,722 $ 37,936 $ 80,894 — $ 128,552 Operating income (loss) $ (3,866 ) $ 6,085 $ 8,849 $ — $ 11,068 Year Ended December 31, 2015 Asia Pacific Europe North America Other (a) Consolidated Revenues from unaffiliated customers $ 10,746 $ 42,588 $ 88,382 $ — $ 141,716 Intersegment revenues (63 ) (456 ) 519 — — Total net revenues $ 10,683 $ 42,132 $ 88,901 — $ 141,716 Operating income (loss) $ (2,435 ) $ 3,871 $ 5,710 $ — $ 7,146 Year Ended December 31, 2014 Asia Pacific Europe North America Other (a) Consolidated Revenues from unaffiliated customers $ 11,160 $ 46,896 $ 95,184 $ — $ 153,240 Intersegment revenues (85 ) (921 ) 1,006 — — Total net revenues $ 11,075 $ 45,975 $ 96,190 — $ 153,240 Operating income (loss) $ (3,378 ) $ 5,818 $ 7,787 $ 7,583 $ 17,810 (a) Amount related to unexchanged promotional shares that include a $7.6 million release of reserve for the year ended December 31, 2014 . As of December 31, 2016 Asia Pacific Europe North Elimination Consolidated Long-lived assets $ 209 $ 763 $ 5,186 $ — $ 6,158 Total assets $ 5,295 $ 49,125 $ 65,961 $ (66,851 ) $ 53,530 As of December 31, 2015 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 369 $ 899 $ 6,652 $ — $ 7,920 Total assets $ 5,845 $ 54,452 $ 71,626 $ (63,344 ) $ 68,579 Revenue for each segment is recognized based on the customer location within a designated geographic region. Property and equipment are attributed to the geographic region in which the assets are located. For the years ended December 31, 2016, 2015 and 2014 , the Company did not have any customers that accounted for 10% or more of revenue. As of December 31, 2016 and 2015 , the Company had one customer that accounted for 16% and 15% , respectively, of accounts receivable. Accounts receivable representing 10% or more of total accounts receivable was related to an advertising technology company that assists us with our Search product traffic monetization by using a traffic auction platform. The following table sets forth the breakdown of revenues (in thousands) by category and segment. Travel revenue includes travel publications ( Top 20 , Website , Newsflash , Travelzoo Network), Getaway vouchers and hotel booking platform. Search revenue includes SuperSearch and Fly.com . Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Year Ended December 31, 2016 2015 2014 Asia Pacific Travel $ 8,845 $ 9,355 $ 9,308 Search 24 34 100 Local 853 1,294 1,667 Total Asia Pacific revenues $ 9,722 $ 10,683 $ 11,075 Europe Travel $ 31,086 $ 33,603 $ 35,847 Search 1,030 2,396 3,009 Local 5,820 6,133 7,119 Total Europe revenues $ 37,936 $ 42,132 $ 45,975 North America Travel $ 54,249 $ 56,054 $ 59,104 Search 13,235 15,427 15,888 Local 13,410 17,420 21,198 Total North America revenues $ 80,894 $ 88,901 $ 96,190 Consolidated Travel $ 94,180 $ 99,012 $ 104,259 Search 14,289 17,857 18,997 Local 20,083 24,847 29,984 Total revenues $ 128,552 $ 141,716 $ 153,240 Revenue by geography is based on the billing address of the advertiser. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. The following table sets forth revenue for individual countries that were 10% or more of total revenue (in thousands): Year Ended December 31, 2016 2015 2014 Revenue United States $ 75,486 $ 83,469 $ 89,311 United Kingdom 23,137 27,825 29,301 Rest of the world 29,929 30,422 34,628 Total revenues $ 128,552 $ 141,716 $ 153,240 The following table sets forth long lived asset by geographic area (in thousands): December 31, 2016 2015 United States $ 4,755 $ 6,167 Rest of the world 1,403 1,753 Total long lived assets $ 6,158 $ 7,920 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On August 20, 2015, Travelzoo acquired the Travelzoo Asia Pacific business (“Asia Pacific”), which includes the Travelzoo businesses in Australia, China, Hong Kong, Japan, Taiwan, and Southeast Asia. This business was independently operated by Azzurro Capital Inc. ("Azzurro") under a licensing agreement with Travelzoo Inc. The Company held an option right to acquire Asia Pacific at fair market value as determined by a third party valuation expert. Under the terms of the definitive acquisition agreement, Travelzoo (Europe) Limited, a United Kingdom subsidiary of the Company, was authorized by the Company to exercise the option right to acquire Asia Pacific for a fair market transaction value of $22.6 million , subject to a working capital adjustment, using available cash of $17.0 million and a promissory note of $5.7 million with a maturity date of three years. The Company’s board of directors established a special committee (the “Special Committee”), consisting of independent and disinterested directors and provided it with the exclusive power and authority to determine whether any potential transaction to acquire Asia Pacific was advisable, fair to and in the best interests of the Company's stockholders other than Azzurro Capital Inc., the principal stockholder of Travelzoo Inc. The Special Committee engaged independent legal counsel and an independent financial advisor, Stout Risius Ross, Inc. (“SRR”). The Special Committee obtained the right to select its own independent financial advisor, SRR, to independently determine the fair market value of Asia Pacific to be used as the option exercise price and received an opinion from SRR regarding the fairness of the Asia Pacific transaction from a financial point of view. SRR determined that $22.6 million represented the fair market value of Asia Pacific to be used as the option exercise price based upon the use of established valuation methodologies. The Special Committee, which was composed solely of independent and disinterested directors, unanimously approved the acquisition of Asia Pacific at the fair market value option exercise price with the assistance of its independent legal and financial advisors. Ralph Bartel, who founded Travelzoo and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. As of December 31, 2016 , Azzurro is the Company's largest stockholder, holding approximately 55.2% of the Company's outstanding shares. Since Azzurro Capital Inc. had a controlling interest in both Travelzoo Inc. and the Travelzoo Asia Pacific business at the time of the transaction and in prior periods, this transaction is accounted for as a common control transaction and a change in reporting entity for the Company. The financial results for Travelzoo Inc. were retrospectively adjusted to include the financial results of Asia Pacific in the 2015 and 2014 as though the transaction occurred at the beginning of each period presented, including the following adjustments: Year Ended December 31, 2015 2014 Revenue $ 10,774 $ 11,218 Operating Loss $ (2,436 ) $ (3,382 ) Net Loss $ (3,096 ) $ (3,288 ) Other Comprehensive Income $ 305 $ 239 Basic and diluted earnings per share $ (0.21 ) $ (0.22 ) The Asia Pacific assets and liabilities have been combined with Travelzoo Inc. at their carrying values as though the transaction occurred at the beginning of each period presented. At December 31, 2015 and December 31, 2014 , Asia Pacific net liabilities, total assets minus total liabilities, were $6.8 million and $4.0 million , respectively. The Asia Pacific transaction proceeds of $22.6 million were reflected as an equity transaction, included in retained earnings, during the period the transaction occurred, which was in the year ended December 31, 2015 . Travelzoo (Europe) Limited, a United Kingdom subsidiary of the Company, acquired the Asia Pacific business, which include certain customary seller indemnifications, through the acquisition of Travelzoo (Asia) Limited, including its wholly owned subsidiaries, and Travelzoo Japan KK. All significant intercompany accounts and transactions between Travelzoo Inc. and the acquired Asia Pacific entities have been eliminated for all periods presented. In November 2014, Azzurro provided a loan to Asia Pacific of $1.0 million with a stated interest rate of 8% . There were $1.0 million loans and $5,000 accrued interest due to Azzurro as of December 31, 2014 . From January 1, 2015 to August 20, 2015 , Azzurro provided loans to the Asia Pacific amounting to $2.2 million with a stated interest rate of 10% . In September 2015, the Company paid the due and outstanding principal loan amount of $3.3 million and accrued interest of $128,000 . On August 20, 2015, as part of the transaction proceeds Travelzoo (Europe) Limited issued a promissory note to Azzurro with a principal amount of $5.7 million , with a maturity date of August 20, 2018 and the ability to pay off principal prior to this maturity date with no prepayment penalty and a stated interest rate of 7% , which is due and payable on a quarterly basis. Accrued interest for the loans and promissory note outstanding was $267,000 for the year ended December 31, 2015 . In January 2016, the full amount of the loan was paid off by Travelzoo (Europe) Limited. On September 28, 2015, Holger Bartel, Executive Chairman and Chairman of the Board of Directors, was granted 400,000 stock options that vest through December 31, 2017 in connection with his appointment to the role of Global Chief Executive Officer. See Note 8 to the accompanying consolidated financial statements for further information. |
Unaudited Quarterly Information
Unaudited Quarterly Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Information | Unaudited Quarterly Information The following represents unaudited quarterly financial data (in thousands, except per share amounts) for 2016 and 2015 : Quarter Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Revenues $ 29,262 $ 30,440 $ 34,046 34,804 $ 32,051 $ 33,728 $ 36,792 $ 39,145 Cost of revenues 3,331 3,361 3,612 4,009 4,328 4,742 5,208 4,546 Gross profit 25,931 27,079 30,434 30,795 27,723 28,986 31,584 34,599 Operating expenses: Sales and marketing 15,751 17,184 19,135 18,959 17,161 19,089 20,715 22,077 General and administrative 6,077 5,373 5,434 5,813 6,270 6,120 5,335 6,451 Product Development 2,164 2,317 2,089 2,875 3,316 2,917 3,206 3,089 Total operating expenses 23,992 24,874 26,658 27,647 26,747 28,126 29,256 31,617 Income from operations 1,939 2,205 3,776 3,148 976 860 2,328 2,982 Other income (loss), net (480 ) 251 (91 ) 133 (376 ) (202 ) (218 ) (446 ) Income before income tax 1,459 2,456 3,685 3,281 600 658 2,110 2,536 Income tax expense (benefit) 516 837 1,665 1,232 165 (8,199 ) 1,268 1,806 Net income $ 943 $ 1,619 $ 2,020 $ 2,049 $ 435 $ 8,857 $ 842 $ 730 Basic net income per share $ 0.07 $ 0.12 $ 0.14 $ 0.14 $ 0.03 $ 0.60 $ 0.06 $ 0.05 Diluted net income per share $ 0.07 $ 0.12 $ 0.14 $ 0.14 $ 0.03 $ 0.60 $ 0.06 $ 0.05 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation Travelzoo Inc. (the “Company” or “Travelzoo”) is a global publisher of travel and entertainment offers. We inform our members in Asia Pacific, Europe and North America, as well as website users, about the best travel, entertainment and local deals available from thousands of companies. Our deal experts source, research and test-book offers, recommending only those that meet Travelzoo’s rigorous quality standards. We provide travel, entertainment, and local businesses with a fast, flexible, and cost effective way to reach consumers. Our revenues are generated primarily from advertising fees. Our publications and products include the Travelzoo websites (travelzoo.com, travelzoo.ca, travelzoo.co.uk, travelzoo.de, travelzoo.es, travelzoo.fr, cn.travelzoo.com, travelzoo.co.jp, travelzoo.com.au, travelzoo.com.hk, travelzoo.com.tw, among others), the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, the SuperSearch pay-per-click travel search tool, and the Travelzoo Network , a network of third-party websites that list travel deals published by Travelzoo. Our Travelzoo websites include Local Deals and Getaway listings that allow our members to purchase vouchers for deals from local businesses such as spas, hotels and restaurants. We receive a percentage of the face value of the voucher from the local businesses. We also operate Fly.com , a travel search engine that allows users to quickly and easily find the best prices on flights from hundreds of airlines and online travel agencies. Ralph Bartel, who founded Travelzoo and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. ("Azzurro"). As of December 31, 2016 , Azzurro is the Company's largest stockholder, holding approximately 55.2% of the outstanding shares. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with accounting principles generally accepted in the United States of America. Significant estimates included in the consolidated financial statements and related notes include revenue recognition, valuation allowances for deferred tax assets, uncertainties in income taxes, stock-based compensation, loss contingencies, and useful lives of property, plant and equipment. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition The Company’s revenue consists primarily of advertising sales. Advertising revenues are principally derived from the sale of advertising in Asia Pacific, Europe and North America on the Travelzoo website, in the Travelzoo Top 20 e-mail newsletter, in Newsflash , from SuperSearch , from the Travelzoo Network , and from Fly.com . The Company also generates revenue from the sale of vouchers through our Local Deals and Getaway e-mail alert services and providing hotel bookings. Advertising revenues are recognized in the period in which the advertisement is displayed or the voucher sale has been completed, provided that evidence of an arrangement exists, the fees are fixed or determinable and collection of the resulting receivable is reasonably assured. The Company evaluates each of these criteria as follows: • Evidence of an arrangement. The Company considers an insertion order signed by the advertiser or its agency to be evidence of an arrangement. • Delivery. Delivery is considered to occur when the advertising has been displayed, the click-throughs have been delivered or the voucher sale has been completed, as applicable. • Fixed or determinable fee. The Company's arrangements with its customers specifies the price paid for advertising services. • Collection is deemed reasonably assured . The Company conducts a credit review for all advertising transactions at the time of the arrangement to determine the creditworthiness of the advertiser. Collection is deemed reasonably assured if it is expected that the advertiser will be able to pay amounts under the arrangement as payments become due. Collection is deemed not reasonably assured when an advertiser is perceived to be in financial distress, which may be evidenced by weak industry condition, bankruptcy filing, or previously billed amounts that are past due. If it is determined that collection is not reasonably assured, then revenue is deferred and recognized upon cash collection. Collection is deemed reasonably assured for our voucher sales to consumers as these transactions require the use of credit cards subject to authorization. The Company recognizes revenue for fixed-fee advertising arrangements ratably over the term of the insertion order as described below, with the exception of Travelzoo Top 20 or Newsflash insertions, which are recognized upon delivery. The majority of insertion orders have terms that begin and end in a quarterly reporting period. In the cases where at the end of a quarterly reporting period the term of an insertion order is not complete, the Company allocates the total arrangement fee to each element based on the relative estimated selling price of each element. The Company recognizes revenue for the period based on elements delivered during the period. The Company uses prices stated on its internal rate card, which represents stand-alone sales prices, to establish estimated selling prices. The stand-alone price is the price that would be charged if the advertiser purchased only the individual insertion. Fees for variable-fee advertising arrangements are recognized based on the number of impressions displayed, number of clicks delivered, number of emails sent or number of referrals generated during the period. Insertion orders that include fixed-fee advertising are invoiced upon acceptance of the insertion order and on the first day of each month over the term of the insertion order, with the exception of Travelzoo Top 20 or Newsflash listings, which are invoiced upon delivery. Insertion orders that include variable-fee advertising are invoiced at the end of the month. The Company’s standard terms state that in the event that Travelzoo fails to publish advertisements as specified in the insertion order, the liability of Travelzoo to the advertiser shall be limited to, at Travelzoo’s sole discretion, a pro rata refund of the advertising fee, the placement of the advertisements at a later time in a comparable position, or the extension of the term of the insertion order until the advertising is fully delivered. The Company believes that no significant obligations exist after the full delivery of advertising. Revenues from advertising sold to advertisers through agencies are reported at the net amount billed to the agency. Costs incurred for our affiliate traffic from our Travelzoo Network are classified as cost of revenues in our consolidated statements of operations. For Local Deals and Getaway products , the Company earns a fee for acting as an agent in these transactions which is recorded on a net basis and is included in revenue upon completion of the voucher sale. Certain merchant contracts in foreign locations allow us to retain fees related to vouchers sold that are not redeemed by purchasers upon expiration, which we recognize as revenue after the expiration of the redemption period and after there are no further obligations to provide funds to merchants, members or others. Commission revenues generated through provision of hotel booking reservations to hotels are recognized upon the estimated date the stay occurs at the hotel, which includes estimates of cancellations of the hotel bookings based upon historical patterns. If the hotel booking cannot be canceled then revenue is recognized upon booking. |
Reserve for Member Refunds | Reserve for Member Refunds The Company records an estimated reserve for member refunds based on our historical experience at the time revenue is recorded for Local Deals and Getaway voucher sales. We accrue costs associated with refunds in accrued expenses on the consolidated balance sheets. We consider many key factors such as the historical refunds based upon the time lag since the sale, historical reasons for refunds, time period that remains until the deal expiration date, any changes in refund procedures and estimates of redemptions and breakage. Should any of these factors change, the estimates made by management will also change, which could impact the level of our future reserves for member refunds. Specifically, if the financial condition of our advertisers, the business that is providing the vouchered service, were to deteriorate, affecting their ability to provide the services to our members, additional reserves for member refunds may be required. Estimated member refunds that are determined to be recoverable from the merchant are recorded in the consolidated statements of operations as a reduction to revenue. We accrue costs associated with refunds in accrued expenses on the consolidated balance sheets. Estimated member refunds that are determined not to be recoverable from the merchant, are presented as a cost of revenue. If our judgments regarding estimated member refunds are inaccurate, reported results of operations could differ from the amount we previously accrued. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company records a provision for doubtful accounts based on its historical experience of write-offs and a detailed assessment of our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, management considers the age of the accounts receivable, historical write-offs, the creditworthiness of the advertiser, the economic conditions of the advertiser’s industry, and general economic conditions, among other factors. Should any of these factors change, the estimates made by management will also change, which could impact the level of the future provision for doubtful accounts. Specifically, if the financial condition of our advertisers were to deteriorate, affecting their ability to make payments, additional provision for doubtful accounts may be required. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Online advertising is expensed as incurred over the period the advertising is displayed. |
Operating Leases | Operating Leases The Company leases facilities and equipment under various operating leases. These lease agreements generally include rent holidays rent escalation clauses and renewal periods at the Company's option. The Company recognizes expense for scheduled rent increases on a straight-line basis over the lease term beginning with the date it takes possession of the leased facilities and equipment. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the current lease term, or estimated life, if shorter. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized as expense over the related employees’ requisite service periods in the Company’s consolidated statements of operations. See Note 8 to the accompanying consolidated financial statements for a further discussion on stock-based compensation. |
Foreign Currency | Foreign Currency All foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income (loss). Realized gains and losses from foreign currency transactions are recognized as gain or loss on foreign currency in the consolidated statements of operations. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards and credit carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, valuation allowances must be established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Significant judgment is required in evaluating the Company's uncertain tax positions and determining the Company's provision for income taxes. Although the Company believes it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the progress or closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to certain changes in equity that are excluded from net income (loss). For the Company, other comprehensive income (loss) includes foreign currency translation adjustments. Total comprehensive income (loss) for all periods presented has been disclosed in the consolidated statements of comprehensive loss. |
Certain Risks and Uncertainties | Certain Risks and Uncertainties The Company’s cash, cash equivalents and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. The accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with maturities of three months or less on the date of purchase. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Additions and improvements are capitalized. Maintenance and repairs are expensed as incurred. The Company also includes in fixed assets the capitalized cost of internal-use software and website development, including software used to upgrade and enhance its website and processes supporting the Company’s business in accordance with the framework established by the FASB accounting guidance for accounting for the cost of computer software developed or obtained for internal use and accounting for website development costs. Costs incurred in the planning stage and operating stage are expensed as incurred while costs incurred in the application development stage and infrastructure development stage are capitalized, assuming such costs are deemed to be recoverable. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 3 to 5 years for computer hardware and software, capitalized internal-use software and website development costs, and office equipment and office furniture. The Company depreciates leasehold improvements over the term of the lease or the estimated useful life of the asset, whichever is shorter. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with the accounting standard relating to impairment of long-lived assets, which requires an impairment loss to be recognized on assets to be held and used if the carrying amount of a long-lived asset group is not recoverable from its undiscounted cash flows. The amount of the impairment loss is measured as the difference between the carrying amount and the fair value of the asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. |
Recent Accounting Pronouncements | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most of the existing revenue recognition guidance in U.S. GAAP when it becomes effective. This new accounting standard is effective for the Company for annual periods in fiscal years beginning after December 15, 2017 (as amended in August 2015 by ASU 2015-14, Deferral of the Effective Date). In December 27, 2016, FASB issued Accounting Standards Update (ASU) 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on construction-type and production-type contracts, and various disclosures. ASU 2016-20 will go into effect once ASU 2014-09 takes effect. The Company has not yet selected the transition method. The Company will implement the provisions of ASU 2014-09 as of January 1, 2018. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern, which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. This accounting standard update applies to all entities and was effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early adoption permitted. The Company adopted this standard during fiscal year 2016. The adoption of this accounting standard update did not have a material impact on its consolidated results of operations, financial position or cash flows. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The updated standard is effective for us beginning on January 1, 2017 with early application permitted as of the beginning of any interim or annual reporting period. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In February 2016, the FASB issued an accounting standard update ASU 2016-02, Leases, which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. This accounting standard update will be effective for the Company on January 1, 2019. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This accounting standard update will be effective for the Company on January 1, 2017 with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which addresses eight classification issues related to the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash, which addresses classification and presentation of changes in restricted cash on the statement of cash flows. The standard requires that restricted cash and restricted cash equivalents be included as components of total cash and cash equivalents as presented on the statement of cash flows. Both ASU 2016-15 and ASU 2016-18 are effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017 and should apply using a retrospective transition method to each period presented. These accounting standard updates will be effective for the Company on January 1, 2018. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. This accounting standard update is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. This accounting standard update will be effective for the Company on January 1, 2018 with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its financial position, results of operations and cash flows. |
Net Income Per Share | Basic net income per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per share | The following table sets forth the calculation of basic and diluted net income per share (in thousands, except per share amounts): Year Ended December 31, 2016 2015 2014 Basic net income per share: Net income $ 6,631 $ 10,864 $ 13,062 Weighted average common shares 13,997 14,722 14,768 Basic net income per share $ 0.47 $ 0.74 $ 0.88 Diluted net income per share: Net income $ 6,631 $ 10,864 $ 13,062 Weighted average common shares 13,997 14,722 14,768 Effect of dilutive securities: stock options — — 41 Diluted weighted average common shares 13,997 14,722 14,809 Diluted net income per share $ 0.47 $ 0.74 $ 0.88 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Assets | Prepaid expenses and other consist of the following (in thousands): December 31, 2016 2015 Prepaid expenses $ 1,334 $ 1,630 Other current assets 439 537 Total prepaid expenses and other $ 1,773 $ 2,167 |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2016 2015 Computer hardware and software $ 4,969 $ 4,811 Office equipment and office furniture 8,802 9,306 Capitalized internal-use software and website development 3,265 3,089 Leasehold improvements 6,259 6,064 23,295 23,270 Less accumulated depreciation and amortization (17,137 ) (15,365 ) Total $ 6,158 $ 7,905 |
Changes in Allowance for Doubtful Accounts and Reserve for Subscriber Refunds | Changes to the allowance for doubtful accounts and reserve for member refunds are as follows (in thousands): Allowance for doubtful accounts Reserve for Balance at January 1, 2014 $ 436 $ 813 Additions — charged to costs and expenses, or contra revenue, net 170 1,299 Deductions — recoveries of amounts previously charged-off (118 ) — Deductions — write-offs (44 ) (1,313 ) Balance at December 31, 2014 444 799 Additions — charged to costs and expenses, or contra revenue, net 295 776 Deductions — recoveries of amounts previously charged-off (179 ) — Deductions — write-offs (176 ) (1,045 ) Balance at December 31, 2015 384 530 Additions — charged to costs and expenses, or contra revenue, net 107 507 Deductions — recoveries of amounts previously charged-off (89 ) — Deductions — write-offs (107 ) (563 ) Balance at December 31, 2016 $ 295 $ 474 |
Schedule of Accrued Expenses | Accrued expenses and other consist of the following (in thousands): December 31, 2016 2015 Accrued advertising expense $ 1,828 $ 1,801 Accrued compensation expense 3,288 4,373 Reserve for member refunds 474 530 Other accrued expenses 2,678 2,963 Deferred rent 431 473 Total accrued expenses and other $ 8,699 $ 10,140 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following summarizes the Company's principal contractual commitments as of December 31, 2016 (in thousands): 2017 2018 2019 2020 2021 Thereafter Total Operating leases $ 5,519 $ 4,584 $ 4,032 $ 3,582 $ 3,003 $ 5,503 $ 26,223 Purchase obligations 733 508 — — — — 1,241 Total commitments $ 6,252 $ 5,092 $ 4,032 $ 3,582 $ 3,003 $ 5,503 $ 27,464 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax Expense by Jurisdiction | The components of income before income tax expense are as follows (in thousands): Year Ended December 31, 2016 2015 2014 U.S. $ 7,902 $ 5,334 $ 14,363 Foreign 2,979 570 3,538 $ 10,881 $ 5,904 $ 17,901 |
Schedule of Income Tax Expense | The deferred tax provision results from changes in the Company’s deferred tax assets (future deductible amounts) and tax liabilities (future taxable amounts), which are presented in the table below: Current Deferred Total (In thousands) Year Ended December 31, 2016 Federal $ 2,531 $ (123 ) $ 2,408 State 406 23 429 Foreign 1,510 (97 ) 1,413 $ 4,447 $ (197 ) $ 4,250 Year Ended December 31, 2015 Federal $ (5,851 ) $ (238 ) $ (6,089 ) State 337 51 388 Foreign 759 (18 ) 741 $ (4,755 ) $ (205 ) $ (4,960 ) Year Ended December 31, 2014 Federal $ 2,124 $ 294 $ 2,418 State 670 21 691 Foreign 1,725 5 1,730 $ 4,519 $ 320 $ 4,839 |
Schedule of Tax Expense to Effective Tax Rate | Income tax expense differed from the amounts computed by applying the U.S. federal statutory tax rate applicable to the Company’s level of pretax income as a result of the following (in thousands): Year Ended December 31, 2016 2015 2014 Federal tax at statutory rates $ 3,846 $ 2,083 $ 6,265 State taxes, net of federal income tax benefit 284 254 504 Expired capital loss carryforward — — 1,534 Change of valuation allowance 895 816 (586 ) Unexchanged promotional shares — — (2,654 ) Non-deductible expenses and other (38 ) 177 247 Uncertain tax positions (132 ) (7,935 ) 308 Foreign income taxed at different rates (605 ) (355 ) (779 ) Total income tax expense $ 4,250 $ (4,960 ) $ 4,839 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 7,239 $ 6,940 State income taxes 159 142 Accruals and allowances 447 783 Stock based compensation 771 1,932 Unrealized foreign exchange losses 149 — Deferred revenue 113 292 Deferred rent 625 636 Total deferred tax assets 9,503 10,725 Valuation allowance (7,168 ) (6,940 ) Total deferred tax assets net of valuation allowance 2,335 3,785 Deferred tax liabilities: U.S. tax on undistributed earnings (173 ) (247 ) Property, equipment and intangible assets (351 ) (581 ) Total deferred tax liabilities (524 ) (828 ) Net deferred tax assets $ 1,811 $ 2,957 |
Changes in the Deferred Tax Assets Valuation Allowance | Changes in the deferred tax assets valuation allowance for the years ended December 31, 2014, 2015 and 2016 are as follows (in thousands): Balance at the beginning of the year Charged (Credited) to expenses Charged (Credited) to other account (*) Balance at end of year Deferred tax assets valuation allowance 2014 $ 7,450 (586 ) (433 ) $ 6,431 2015 $ 6,431 816 (307 ) $ 6,940 2016 $ 6,940 895 (667 ) $ 7,168 (*) Amounts not charged (credited) to expenses are charged (credited) to stockholder's equity or deferred tax assets (liabilities). |
Rollforward of Unrecognized Tax Benefits | Gross unrecognized tax benefits balance at January 1, 2014 $ 9,987 Increase related to prior year tax positions — Decrease related to prior year tax positions — Increase related to current year tax positions 38 Settlements — Lapse of statute of limitations — Gross unrecognized tax benefits balance at December 31, 2014 10,025 Increase related to prior year tax positions 898 Decrease related to prior year tax positions — Increase related to current year tax positions 11 Settlements — Lapse of statute of limitations (8,264 ) Gross unrecognized tax benefits balance at December 31, 2015 2,670 Increase related to prior year tax positions 10 Decrease related to prior year tax positions — Increase related to current year tax positions — Settlements — Lapse of statute of limitations (323 ) Gross unrecognized tax benefits balance at December 31, 2016 $ 2,357 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): Year Ended December 31, 2016 2015 2014 Beginning balance $ (3,908 ) $ (2,602 ) $ (374 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 121 (1,306 ) (2,228 ) Ending balance $ (3,787 ) $ (3,908 ) $ (2,602 ) |
Stock-Based Compensation and 26
Stock-Based Compensation and Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Weighted-Average Assumptions used in Black-Scholes Option Pricing Model | The fair value of 2016, 2015 and 2012 stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2012 Weighted-average fair value of options granted per share $ 4.73 $ 4.42 $ 19.08 Historical volatility 58 % 59 % 74 % Risk-free interest rate 1.38 % 1.73 % 1.11 % Dividend yield — — — Expected life in years 6.25 5.75 6.25 |
Schedule of Option Activity | Option activities during the years ended December 31, 2014 , 2015 , and 2016 were as follows: Shares Weighted-Average Weighted-Average Aggregate (In thousands) Outstanding at January 1, 2014 475,000 $ 20.23 6.93 years $ 1,905 Options forfeited and canceled (50,000 ) $ 28.98 Outstanding at December 31, 2014 425,000 $ 19.20 5.79 years $ — Option Granted 400,000 $ 8.07 Options forfeited and canceled (50,000 ) $ 29.58 Outstanding at December 31, 2015 775,000 $ 12.78 5.53 years $ 120 Option Granted 150,000 $ 8.55 Options forfeited and canceled (325,000 ) $ 16.09 Outstanding at December 31, 2016 600,000 $ 9.93 8.55 years $ — Exercisable and fully vested at December 31, 2016 250,000 $ 12.25 8.01 years $ — Outstanding at December 31, 2016 and expected to vest thereafter 350,000 $ 8.28 8.94 years $ 394 |
Schedule of Outstanding Options | Outstanding options at December 31, 2016 were as follows: Exercise Price Shares Outstanding Options Outstanding Weighted- Average Exercise Price Shares Outstanding and Exercisable Options Exercisable Weighted- Average Remaining Contractual Life $ 28.98 50,000 5.07 years $ 28.98 50,000 5.07 years $ 8.07 400,000 8.75 years $ 8.07 200,000 8.75 years $ 8.55 150,000 9.19 years $ 8.55 — — |
Segment Reporting and Signifi27
Segment Reporting and Significant Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of operating results from continuing operations and assets by business segment | The following is a summary of operating results and assets (in thousands) by business segment: Year Ended December 31, 2016 Asia Pacific Europe North America Other Consolidated Revenues from unaffiliated customers $ 9,658 $ 38,637 $ 80,257 $ — $ 128,552 Intersegment revenues 64 (701 ) 637 — — Total net revenues $ 9,722 $ 37,936 $ 80,894 — $ 128,552 Operating income (loss) $ (3,866 ) $ 6,085 $ 8,849 $ — $ 11,068 Year Ended December 31, 2015 Asia Pacific Europe North America Other (a) Consolidated Revenues from unaffiliated customers $ 10,746 $ 42,588 $ 88,382 $ — $ 141,716 Intersegment revenues (63 ) (456 ) 519 — — Total net revenues $ 10,683 $ 42,132 $ 88,901 — $ 141,716 Operating income (loss) $ (2,435 ) $ 3,871 $ 5,710 $ — $ 7,146 Year Ended December 31, 2014 Asia Pacific Europe North America Other (a) Consolidated Revenues from unaffiliated customers $ 11,160 $ 46,896 $ 95,184 $ — $ 153,240 Intersegment revenues (85 ) (921 ) 1,006 — — Total net revenues $ 11,075 $ 45,975 $ 96,190 — $ 153,240 Operating income (loss) $ (3,378 ) $ 5,818 $ 7,787 $ 7,583 $ 17,810 (a) Amount related to unexchanged promotional shares that include a $7.6 million release of reserve for the year ended December 31, 2014 . |
Reconciliation of assets by business segment | As of December 31, 2016 Asia Pacific Europe North Elimination Consolidated Long-lived assets $ 209 $ 763 $ 5,186 $ — $ 6,158 Total assets $ 5,295 $ 49,125 $ 65,961 $ (66,851 ) $ 53,530 As of December 31, 2015 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 369 $ 899 $ 6,652 $ — $ 7,920 Total assets $ 5,845 $ 54,452 $ 71,626 $ (63,344 ) $ 68,579 |
Breakdown of revenues by type and segment | The following table sets forth the breakdown of revenues (in thousands) by category and segment. Travel revenue includes travel publications ( Top 20 , Website , Newsflash , Travelzoo Network), Getaway vouchers and hotel booking platform. Search revenue includes SuperSearch and Fly.com . Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Year Ended December 31, 2016 2015 2014 Asia Pacific Travel $ 8,845 $ 9,355 $ 9,308 Search 24 34 100 Local 853 1,294 1,667 Total Asia Pacific revenues $ 9,722 $ 10,683 $ 11,075 Europe Travel $ 31,086 $ 33,603 $ 35,847 Search 1,030 2,396 3,009 Local 5,820 6,133 7,119 Total Europe revenues $ 37,936 $ 42,132 $ 45,975 North America Travel $ 54,249 $ 56,054 $ 59,104 Search 13,235 15,427 15,888 Local 13,410 17,420 21,198 Total North America revenues $ 80,894 $ 88,901 $ 96,190 Consolidated Travel $ 94,180 $ 99,012 $ 104,259 Search 14,289 17,857 18,997 Local 20,083 24,847 29,984 Total revenues $ 128,552 $ 141,716 $ 153,240 |
Schedule of revenue for individual countries that exceed 10% of total revenue | The following table sets forth revenue for individual countries that were 10% or more of total revenue (in thousands): Year Ended December 31, 2016 2015 2014 Revenue United States $ 75,486 $ 83,469 $ 89,311 United Kingdom 23,137 27,825 29,301 Rest of the world 29,929 30,422 34,628 Total revenues $ 128,552 $ 141,716 $ 153,240 |
Schedule of long lives assets by geographic area | The following table sets forth long lived asset by geographic area (in thousands): December 31, 2016 2015 United States $ 4,755 $ 6,167 Rest of the world 1,403 1,753 Total long lived assets $ 6,158 $ 7,920 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The financial results for Travelzoo Inc. were retrospectively adjusted to include the financial results of Asia Pacific in the 2015 and 2014 as though the transaction occurred at the beginning of each period presented, including the following adjustments: Year Ended December 31, 2015 2014 Revenue $ 10,774 $ 11,218 Operating Loss $ (2,436 ) $ (3,382 ) Net Loss $ (3,096 ) $ (3,288 ) Other Comprehensive Income $ 305 $ 239 Basic and diluted earnings per share $ (0.21 ) $ (0.22 ) |
Unaudited Quarterly Informati29
Unaudited Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following represents unaudited quarterly financial data (in thousands, except per share amounts) for 2016 and 2015 : Quarter Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Revenues $ 29,262 $ 30,440 $ 34,046 34,804 $ 32,051 $ 33,728 $ 36,792 $ 39,145 Cost of revenues 3,331 3,361 3,612 4,009 4,328 4,742 5,208 4,546 Gross profit 25,931 27,079 30,434 30,795 27,723 28,986 31,584 34,599 Operating expenses: Sales and marketing 15,751 17,184 19,135 18,959 17,161 19,089 20,715 22,077 General and administrative 6,077 5,373 5,434 5,813 6,270 6,120 5,335 6,451 Product Development 2,164 2,317 2,089 2,875 3,316 2,917 3,206 3,089 Total operating expenses 23,992 24,874 26,658 27,647 26,747 28,126 29,256 31,617 Income from operations 1,939 2,205 3,776 3,148 976 860 2,328 2,982 Other income (loss), net (480 ) 251 (91 ) 133 (376 ) (202 ) (218 ) (446 ) Income before income tax 1,459 2,456 3,685 3,281 600 658 2,110 2,536 Income tax expense (benefit) 516 837 1,665 1,232 165 (8,199 ) 1,268 1,806 Net income $ 943 $ 1,619 $ 2,020 $ 2,049 $ 435 $ 8,857 $ 842 $ 730 Basic net income per share $ 0.07 $ 0.12 $ 0.14 $ 0.14 $ 0.03 $ 0.60 $ 0.06 $ 0.05 Diluted net income per share $ 0.07 $ 0.12 $ 0.14 $ 0.14 $ 0.03 $ 0.60 $ 0.06 $ 0.05 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
The Company and Basis of Presentation (Textual) [Abstract] | |||
Advertising expense | $ 22,000,000 | $ 25,600,000 | $ 20,800,000 |
Total foreign currency transaction losses | (315,000) | 480,000 | (16,000) |
Impairment of software | $ 0 | $ 0 | 249,000 |
Customer One | Accounts Receivable | Credit Concentration Risk | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Concentration risk (percentage) | 16.00% | 15.00% | |
Computer hardware and software | Minimum | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Estimated useful lives (in years) | 3 years | ||
Computer hardware and software | Maximum | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Estimated useful lives (in years) | 5 years | ||
Capitalized internal-use software and website development | Minimum | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Estimated useful lives (in years) | 3 years | ||
Capitalized internal-use software and website development | Maximum | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Estimated useful lives (in years) | 5 years | ||
Office equipment and office furniture | Minimum | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Estimated useful lives (in years) | 3 years | ||
Office equipment and office furniture | Maximum | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Estimated useful lives (in years) | 5 years | ||
Azzurro Capital, Inc. | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Percent of outstanding shares | 55.20% | ||
Other Income (Loss) | |||
The Company and Basis of Presentation (Textual) [Abstract] | |||
Total foreign currency transaction losses | $ 211,000 | $ 1,100,000 | $ 105,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic net income per share: | |||||||||||
Net income | $ 943 | $ 1,619 | $ 2,020 | $ 2,049 | $ 435 | $ 8,857 | $ 842 | $ 730 | $ 6,631 | $ 10,864 | $ 13,062 |
Weighted average common shares (in shares) | 13,997 | 14,722 | 14,768 | ||||||||
Basic net income per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.14 | $ 0.14 | $ 0.03 | $ 0.60 | $ 0.06 | $ 0.05 | $ 0.47 | $ 0.74 | $ 0.88 |
Diluted net income per share: | |||||||||||
Net income | $ 943 | $ 1,619 | $ 2,020 | $ 2,049 | $ 435 | $ 8,857 | $ 842 | $ 730 | $ 6,631 | $ 10,864 | $ 13,062 |
Weighted average common shares (in shares) | 13,997 | 14,722 | 14,768 | ||||||||
Effect of dilutive securities: stock options (in shares) | 0 | 0 | 41 | ||||||||
Diluted weighted average common shares (in shares) | 13,997 | 14,722 | 14,809 | ||||||||
Diluted net income per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.14 | $ 0.14 | $ 0.03 | $ 0.60 | $ 0.06 | $ 0.05 | $ 0.47 | $ 0.74 | $ 0.88 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 600 | 775 | 125 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 1,334 | $ 1,630 |
Other current assets | 439 | 537 |
Total prepaid expenses and other | $ 1,773 | $ 2,167 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 23,295 | $ 23,270 | |
Less accumulated depreciation and amortization | (17,137) | (15,365) | |
Property, plant and equipment, net | 6,158 | 7,905 | |
Depreciation expense | 2,100 | 2,200 | $ 2,600 |
Capitalized computer software, amortization | 460 | 308 | $ 192 |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,969 | 4,811 | |
Office equipment and office furniture | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8,802 | 9,306 | |
Capitalized internal-use software and website development | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,265 | 3,089 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 6,259 | $ 6,064 |
Balance Sheet Components - Allo
Balance Sheet Components - Allowance for Doubtful Accounts and Reserve for Subscriber Refunds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | $ 6,940 | $ 6,431 | $ 7,450 |
Additions — charged to costs and expenses, or contra revenue, net | 895 | 816 | (586) |
Balance at end of year | 7,168 | 6,940 | 6,431 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | 384 | 444 | 436 |
Additions — charged to costs and expenses, or contra revenue, net | 107 | 295 | 170 |
Deductions — recoveries of amounts previously charged-off | (89) | (179) | (118) |
Deductions — write-offs | (107) | (176) | (44) |
Balance at end of year | 295 | 384 | 444 |
Reserve for member refunds | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | 530 | 799 | 813 |
Additions — charged to costs and expenses, or contra revenue, net | 507 | 776 | 1,299 |
Deductions — recoveries of amounts previously charged-off | 0 | 0 | 0 |
Deductions — write-offs | (563) | (1,045) | (1,313) |
Balance at end of year | $ 474 | $ 530 | $ 799 |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Local Deals and Getaway merchant payable included in accounts payable | $ 14,800 | $ 19,100 |
Accrued Liabilities Current [Abstract] | ||
Accrued advertising expense | 1,828 | 1,801 |
Accrued compensation expense | 3,288 | 4,373 |
Reserve for member refunds | 474 | 530 |
Other accrued expenses | 2,678 | 2,963 |
Deferred rent | 431 | 473 |
Total accrued expenses and other | $ 8,699 | $ 10,140 |
Commitments and Contingencies36
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2004 | Dec. 31, 2002 | Aug. 20, 2015 | |
Loss Contingencies | |||||||||
Release of reserve related to anticipated settlement agreements | $ 0 | $ 0 | $ 7,583,000 | ||||||
Charge in general and administrative expenses | 2,000 | 1,000 | 6,000 | ||||||
Operating leases, rent expense | 5,300,000 | $ 5,800,000 | 6,000,000 | ||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | |||||||||
2,017 | 5,519,000 | ||||||||
2,018 | 4,584,000 | ||||||||
2,019 | 4,032,000 | ||||||||
2,020 | 3,582,000 | ||||||||
2,021 | 3,003,000 | ||||||||
Thereafter | 5,503,000 | ||||||||
Total | 26,223,000 | ||||||||
Purchase Obligation, Fiscal Year Maturity | |||||||||
2,017 | 733,000 | ||||||||
2,018 | 508,000 | ||||||||
2,019 | 0 | ||||||||
2,020 | 0 | ||||||||
2,021 | 0 | ||||||||
Thereafter | 0 | ||||||||
Total | 1,241,000 | ||||||||
Contractual Obligation, Fiscal Year Maturity | |||||||||
Total Commitments, Due in Next Twelve Months | 6,252,000 | ||||||||
Total Commitments, Due in Second Year | 5,092,000 | ||||||||
Total Commitments, Due in Third Year | 4,032,000 | ||||||||
Total Commitments, Due in Fourth Year | 3,582,000 | ||||||||
Total Commitments, Due in Fifth Year | 3,003,000 | ||||||||
Total Commitments, Due after Fifth Year | 5,503,000 | ||||||||
Total Commitments | $ 27,464,000 | ||||||||
Majority Shareholder | Travelzoo Europe Promissory Note | |||||||||
Loss Contingencies | |||||||||
Related party debt | $ 5,700,000 | ||||||||
Stated percentage (percentage) | 7.00% | ||||||||
Pending Litigation | Unclaimed Property Audits Related to Unexchanged Promotional Shares | |||||||||
Loss Contingencies | |||||||||
Charge related to unclaimed property review | $ 22,000,000 | $ 3,000,000 | $ 20,000,000 | ||||||
Release of reserve related to anticipated settlement agreements | $ 7,600,000 | ||||||||
Travel Zoo Com Corporation | |||||||||
Loss Contingencies | |||||||||
Period for receiving shares under merger (in years) | 2 years | 2 years | |||||||
Number of shares exchanged under merger | 1 |
Income Taxes - Income Before Ta
Income Taxes - Income Before Tax Expense by Jurisdiction (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 7,902 | $ 5,334 | $ 14,363 | ||||||||
Foreign | 2,979 | 570 | 3,538 | ||||||||
Income before income tax | $ 1,459 | $ 2,456 | $ 3,685 | $ 3,281 | $ 600 | $ 658 | $ 2,110 | $ 2,536 | $ 10,881 | $ 5,904 | $ 17,901 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||||||||||
Federal | $ 2,531 | $ (5,851) | $ 2,124 | ||||||||
State | 406 | 337 | 670 | ||||||||
Foreign | 1,510 | 759 | 1,725 | ||||||||
Total | 4,447 | (4,755) | 4,519 | ||||||||
Deferred | |||||||||||
Federal | (123) | (238) | 294 | ||||||||
State | 23 | 51 | 21 | ||||||||
Foreign | (97) | (18) | 5 | ||||||||
Total | (197) | (205) | 320 | ||||||||
Total | |||||||||||
Federal | 2,408 | (6,089) | 2,418 | ||||||||
State | 429 | 388 | 691 | ||||||||
Foreign | 1,413 | 741 | 1,730 | ||||||||
Total income tax expense | $ 516 | $ 837 | $ 1,665 | $ 1,232 | $ 165 | $ (8,199) | $ 1,268 | $ 1,806 | $ 4,250 | $ (4,960) | $ 4,839 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Expense to Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal tax at statutory rates | $ 3,846 | $ 2,083 | $ 6,265 | ||||||||
State taxes, net of federal income tax benefit | 284 | 254 | 504 | ||||||||
Expired capital loss carryforward | 0 | 0 | 1,534 | ||||||||
Change of valuation allowance | 895 | 816 | (586) | ||||||||
Unexchanged promotional shares | 0 | 0 | (2,654) | ||||||||
Non-deductible expenses and other | (38) | 177 | 247 | ||||||||
Uncertain tax positions | (132) | (7,935) | 308 | ||||||||
Foreign income taxed at different rates | (605) | (355) | (779) | ||||||||
Total income tax expense | $ 516 | $ 837 | $ 1,665 | $ 1,232 | $ 165 | $ (8,199) | $ 1,268 | $ 1,806 | $ 4,250 | $ (4,960) | $ 4,839 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 7,239 | $ 6,940 |
State income taxes | 159 | 142 |
Accruals and allowances | 447 | 783 |
Stock based compensation | 771 | 1,932 |
Unrealized foreign exchange losses | 149 | 0 |
Deferred revenue | 113 | 292 |
Deferred rent | 625 | 636 |
Total deferred tax assets | 9,503 | 10,725 |
Valuation allowance | (7,168) | (6,940) |
Total deferred tax assets net of valuation allowance | 2,335 | 3,785 |
Deferred tax liabilities: | ||
U.S. tax on undistributed earnings | (173) | (247) |
Property, equipment and intangible assets | (351) | (581) |
Total deferred tax liabilities | (524) | (828) |
Net deferred tax assets | $ 1,811 | $ 2,957 |
Income Taxes - Changes in the D
Income Taxes - Changes in the Deferred Tax Assets Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the beginning of the year | $ 6,940 | $ 6,431 | $ 7,450 |
Charged (Credited) to expenses | 895 | 816 | (586) |
Charged (Credited) to other account () | (667) | (307) | (433) |
Balance at end of year | $ 7,168 | $ 6,940 | $ 6,431 |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning | $ 2,670 | $ 10,025 | $ 9,987 |
Increase related to prior year tax positions | 10 | 898 | 0 |
Decrease related to prior year tax positions | 0 | 0 | 0 |
Increase related to current year tax positions | 0 | 11 | 38 |
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | (323) | (8,264) | 0 |
Unrecognized tax benefits, ending | $ 2,357 | $ 2,670 | $ 10,025 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||||
Undistributed earnings on a book basis for the non-U.S. subsidiaries | $ 11,800 | |||
Unrecognized deferred tax liability related to undistributed earnings of non-U.S. subsidiaries | 1,300 | |||
Total unrecognized tax benefits | 2,357 | $ 2,670 | $ 10,025 | $ 9,987 |
Unrecognized tax benefits affecting the company's effective income tax rate | 1,900 | |||
Unrecognized tax benefits, interest on income taxes accrued | 911 | |||
Unrecognized tax benefits, increase in interest on income taxes accrued | 119 | |||
Unrecognized tax benefits, income tax penalties accrued | 40 | |||
Tax settlement | 31,000 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, valuation allowance | 7,200 | |||
Operating loss carryforwards | 31,200 | |||
Increase in valuation allowance | 228 | |||
Operating loss carryforward, indefinite | 18,500 | |||
Operating loss carryforward, expiring | $ 12,700 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | $ 21,387,000 | $ 35,827,000 | $ 30,096,000 |
Ending balance | 18,064,000 | 21,387,000 | 35,827,000 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
AOCI | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (3,908,000) | (2,602,000) | (374,000) |
Ending balance | (3,787,000) | (3,908,000) | (2,602,000) |
Foregin Currency Translation | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Other comprehensive income (loss) due to foreign currency translation, net of tax | $ 121,000 | $ (1,306,000) | $ (2,228,000) |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined contribution plan, maximum annual contribution by employee, percent of eligible earnings (up to) | 80.00% | ||
Defined contribution plan, employer matching contribution per employee, amount (up to) | $ 1,500 | ||
Defined contribution plan, period after which cliff vest occurs (in years) | 1 year | ||
Defined contribution plan, employer discretionary contribution amount | $ 1,900,000 | $ 2,100,000 | $ 2,200,000 |
Stock-Based Compensation and 46
Stock-Based Compensation and Stock Options - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2016 | Sep. 30, 2015 | Jan. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Share-based compensation, options, exercises in period (shares) | 0 | 0 | 0 | ||||
Excess tax benefit (tax deficiency) from share-based compensation, financing activities | $ 0 | $ 0 | $ 0 | ||||
Options granted (in shares) | 150,000 | 400,000 | |||||
Exercise price of employee option shares of common stock (in dollars per share) | $ 8.55 | $ 8.07 | |||||
Options outstanding (in shares) | 600,000 | 775,000 | 425,000 | 475,000 | |||
Options forfeited (in shares) | 325,000 | 50,000 | 50,000 | ||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Allocated share-based compensation expense (reversal of) | $ 933,000 | $ 401,000 | $ 982,000 | ||||
Forfeiture rate (percent) | 0.00% | ||||||
Stock Options | Employee Options 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Options granted (in shares) | 100,000 | ||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ 28.98 | ||||||
Options vest and become exercisable annually (in shares) | 25,000 | ||||||
Options vested (in shares) | 50,000 | ||||||
Options outstanding (in shares) | 50,000,000 | ||||||
Options canceled (in shares) | 25,000 | ||||||
Options forfeited (in shares) | 25,000 | ||||||
Unrecognized stock-based compensation expense | $ 0 | ||||||
Stock Options | Employee Options 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Options granted (in shares) | 400,000 | ||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ 8.07 | ||||||
Options vested (in shares) | 200,000 | ||||||
Options outstanding (in shares) | 400,000 | ||||||
Options vest and become exercisable quarterly (in shares) | 50,000 | ||||||
Unrecognized stock-based compensation expense | $ 783,000 | ||||||
Unrecognized compensation expense, period for recognition (in years) | 1 year | ||||||
Stock Options | Employee Options 2016 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Options granted (in shares) | 150,000 | ||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ 8.55 | ||||||
Options vest and become exercisable annually (in shares) | 37,500 | ||||||
Options vested (in shares) | 0 | ||||||
Options outstanding (in shares) | 150,000 | ||||||
Unrecognized stock-based compensation expense | $ 565,000 | ||||||
Unrecognized compensation expense, period for recognition (in years) | 3 years 2 months 12 days |
Stock-Based Compensation and 47
Stock-Based Compensation and Stock Options - Stock Option Valuation Weighted Average Assumptions (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2016$ / shares | |
Employee Options 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Weighted-average fair value of options granted (in dollars per share) | $ 4.73 |
Historical volatility | 58.00% |
Risk-free interest rate | 1.38% |
Dividend yield | 0.00% |
Expected life in years | 6 years 3 months |
Employee Options 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Weighted-average fair value of options granted (in dollars per share) | $ 4.42 |
Historical volatility | 59.00% |
Risk-free interest rate | 1.73% |
Dividend yield | 0.00% |
Expected life in years | 5 years 9 months |
Employee Options 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Weighted-average fair value of options granted (in dollars per share) | $ 19.08 |
Historical volatility | 74.00% |
Risk-free interest rate | 1.11% |
Dividend yield | 0.00% |
Expected life in years | 6 years 3 months |
Stock-Based Compensation and 48
Stock-Based Compensation and Stock Options - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | ||||
Options outstanding, beginning (in shares) | 775,000 | 425,000 | 475,000 | |
Options forfeited and canceled (in shares) | (325,000) | (50,000) | (50,000) | |
Options granted (in shares) | 150,000 | 400,000 | ||
Options outstanding, ending (in shares) | 600,000 | 775,000 | 425,000 | 475,000 |
Weighted-Average Exercise Price | ||||
Options outstanding, weighted average exercise price, beginning (in dollars per share) | $ 12.78 | $ 19.20 | $ 20.23 | |
Options forfeited and canceled, weighted average exercise price (in dollars per share) | 16.09 | 29.58 | 28.98 | |
Options granted, weighted average exercise price (in dollars per share) | 8.55 | 8.07 | ||
Options outstanding, weighted average exercise price, ending (in dollars per share) | $ 9.93 | $ 12.78 | $ 19.20 | $ 20.23 |
Exercisable and fully vested (in shares) | 250,000 | |||
Exercisable and fully vested, weighted average exercise price (in dollars per share) | $ 12.25 | |||
Options Outstanding Weighted- Average Remaining Contractual Life | 8 years 6 months 20 days | 5 years 6 months 11 days | 5 years 9 months 15 days | 6 years 11 months 6 days |
Options Exercisable Weighted- Average Remaining Contractual Life | 8 years 4 days | |||
Vested and expected to vest, outstanding, aggregate intrinsic value (in dollars) | $ 0 | $ 120 | $ 0 | $ 1,905 |
Vested and expected to vest, exercisable, aggregate intrinsic value (in dollars) | $ 0 | |||
Outstanding and expected to vest thereafter (in shares) | 350,000 | |||
Outstanding and expected to vest thereafter, weighted average exercise price (in dollars per share) | $ 8.28 | |||
Outstanding and expected to vest, weighted average remaining contractual life (in years) | 8 years 11 months 10 days | |||
Outstanding and expected to vest, aggregate intrinsic value (in dollars) | $ 394 |
Stock-Based Compensation and 49
Stock-Based Compensation and Stock Options - Outstanding Options (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price of employee option shares of common stock (in dollars per share) | $ 8.55 | $ 8.07 | ||
Shares Outstanding (in shares) | 600,000 | 775,000 | 425,000 | 475,000 |
Options Outstanding Weighted- Average Remaining Contractual Life | 8 years 6 months 20 days | 5 years 6 months 11 days | 5 years 9 months 15 days | 6 years 11 months 6 days |
Options Exercisable Weighted- Average Remaining Contractual Life | 8 years 4 days | |||
Exercise Price 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price of employee option shares of common stock (in dollars per share) | $ 28.98 | |||
Shares Outstanding (in shares) | 50,000 | |||
Options Outstanding Weighted- Average Remaining Contractual Life | 5 years 25 days | |||
Weighted- Average Exercise Price (in dollars per share) | $ 28.98 | |||
Shares Outstanding and Exercisable (in shares) | 50,000 | |||
Options Exercisable Weighted- Average Remaining Contractual Life | 5 years 25 days | |||
Exercise Price 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price of employee option shares of common stock (in dollars per share) | $ 8.07 | |||
Shares Outstanding (in shares) | 400,000 | |||
Options Outstanding Weighted- Average Remaining Contractual Life | 8 years 9 months | |||
Weighted- Average Exercise Price (in dollars per share) | $ 8.07 | |||
Shares Outstanding and Exercisable (in shares) | 200,000 | |||
Options Exercisable Weighted- Average Remaining Contractual Life | 8 years 9 months | |||
Exercise Price 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price of employee option shares of common stock (in dollars per share) | $ 8.55 | |||
Shares Outstanding (in shares) | 150,000 | |||
Options Outstanding Weighted- Average Remaining Contractual Life | 9 years 2 months 8 days | |||
Weighted- Average Exercise Price (in dollars per share) | $ 8.55 | |||
Shares Outstanding and Exercisable (in shares) | 0 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2017 | Feb. 29, 2016 | Jan. 31, 2014 | Jul. 31, 2012 | |
Class of Stock | |||||||
Stock repurchased program authorized number of shares (in shares) | 1,000,000 | 500,000 | 1,000,000 | ||||
Stock repurchase program, remaining number of shares authorized to be repurchased (in shares) | 56,000 | 29,000 | |||||
Subsequent Event | |||||||
Class of Stock | |||||||
Stock repurchased program authorized number of shares (in shares) | 1,000,000 | ||||||
Treasury Stock | |||||||
Class of Stock | |||||||
Stock repurchased during period (in shares) | 1,056,000 | 212,000 | 261,000 | ||||
Aggregate purchase price of shares repurchased | $ 9.5 | $ 1.7 | $ 5.9 |
Segment Reporting and Signifi51
Segment Reporting and Significant Customer Information - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable operating segments | segment | 3 | ||
Concentration Risk [Line Items] | |||
Charge (release of) related to reserve anticipated settlement agreements | $ | $ 0 | $ 0 | $ (7,583) |
Accounts Receivable | Credit Concentration Risk | Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk (percentage) | 16.00% | 15.00% |
Segment Reporting and Signifi52
Segment Reporting and Significant Customer Information - Operating Results from Continuing Operations and Assets by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | $ 29,262 | $ 30,440 | $ 34,046 | $ 34,804 | $ 32,051 | $ 33,728 | $ 36,792 | $ 39,145 | $ 128,552 | $ 141,716 | $ 153,240 |
Operating income (loss) | $ 1,939 | $ 2,205 | $ 3,776 | $ 3,148 | $ 976 | $ 860 | $ 2,328 | $ 2,982 | 11,068 | 7,146 | 17,810 |
Intersegment Eliminations | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating income (loss) | 0 | 0 | 7,583 | ||||||||
Asia Pacific | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | 9,722 | 10,683 | 11,075 | ||||||||
Operating income (loss) | (3,866) | (2,435) | (3,378) | ||||||||
Asia Pacific | Intersegment Eliminations | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | 64 | (63) | (85) | ||||||||
Asia Pacific | Operating Segments | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | 9,658 | 10,746 | 11,160 | ||||||||
Europe | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | 37,936 | 42,132 | 45,975 | ||||||||
Operating income (loss) | 6,085 | 3,871 | 5,818 | ||||||||
Europe | Intersegment Eliminations | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | (701) | (456) | (921) | ||||||||
Europe | Operating Segments | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | 38,637 | 42,588 | 46,896 | ||||||||
North America | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | 80,894 | 88,901 | 96,190 | ||||||||
Operating income (loss) | 8,849 | 5,710 | 7,787 | ||||||||
North America | Intersegment Eliminations | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | 637 | 519 | 1,006 | ||||||||
North America | Operating Segments | |||||||||||
Summary of operating results from continuing operations and assets by business segment | |||||||||||
Revenues | $ 80,257 | $ 88,382 | $ 95,184 |
Segment Reporting and Signifi53
Segment Reporting and Significant Customer Information - Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Revenue for each segment recognized based on customer location | ||
Long-lived assets | $ 6,158 | $ 7,920 |
Total assets | 53,530 | 68,579 |
Intersegment Eliminations | ||
Revenue for each segment recognized based on customer location | ||
Long-lived assets | 0 | 0 |
Total assets | (66,851) | (63,344) |
Asia Pacific | Operating Segments | ||
Revenue for each segment recognized based on customer location | ||
Long-lived assets | 209 | 369 |
Total assets | 5,295 | 5,845 |
Europe | Operating Segments | ||
Revenue for each segment recognized based on customer location | ||
Long-lived assets | 763 | 899 |
Total assets | 49,125 | 54,452 |
North America | Operating Segments | ||
Revenue for each segment recognized based on customer location | ||
Long-lived assets | 5,186 | 6,652 |
Total assets | $ 65,961 | $ 71,626 |
Segment Reporting and Signifi54
Segment Reporting and Significant Customer Information - Revenue by Type and Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Breakdown of revenues by type and segment | |||||||||||
Revenues | $ 29,262 | $ 30,440 | $ 34,046 | $ 34,804 | $ 32,051 | $ 33,728 | $ 36,792 | $ 39,145 | $ 128,552 | $ 141,716 | $ 153,240 |
Travel | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 94,180 | 99,012 | 104,259 | ||||||||
Search | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 14,289 | 17,857 | 18,997 | ||||||||
Local | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 20,083 | 24,847 | 29,984 | ||||||||
Asia Pacific | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 9,722 | 10,683 | 11,075 | ||||||||
Asia Pacific | Travel | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 8,845 | 9,355 | 9,308 | ||||||||
Asia Pacific | Search | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 24 | 34 | 100 | ||||||||
Asia Pacific | Local | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 853 | 1,294 | 1,667 | ||||||||
Europe | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 37,936 | 42,132 | 45,975 | ||||||||
Europe | Travel | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 31,086 | 33,603 | 35,847 | ||||||||
Europe | Search | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 1,030 | 2,396 | 3,009 | ||||||||
Europe | Local | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 5,820 | 6,133 | 7,119 | ||||||||
North America | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 80,894 | 88,901 | 96,190 | ||||||||
North America | Travel | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 54,249 | 56,054 | 59,104 | ||||||||
North America | Search | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | 13,235 | 15,427 | 15,888 | ||||||||
North America | Local | |||||||||||
Breakdown of revenues by type and segment | |||||||||||
Revenues | $ 13,410 | $ 17,420 | $ 21,198 |
Segment Reporting and Signifi55
Segment Reporting and Significant Customer Information - Revenue for Individual Countries that Exceed 10% of Total Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 29,262 | $ 30,440 | $ 34,046 | $ 34,804 | $ 32,051 | $ 33,728 | $ 36,792 | $ 39,145 | $ 128,552 | $ 141,716 | $ 153,240 |
United States | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | 75,486 | 83,469 | 89,311 | ||||||||
United Kingdom | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | 23,137 | 27,825 | 29,301 | ||||||||
Rest of the world | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenues | $ 29,929 | $ 30,422 | $ 34,628 |
Segment Reporting and Signifi56
Segment Reporting and Significant Customer Information - Long Lives Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 6,158 | $ 7,920 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,755 | 6,167 |
Rest of the world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,403 | $ 1,753 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Sep. 28, 2015 | Aug. 20, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2014 |
Related Party Transactions | |||||||
Repayments of related party debt | $ 5,658,000 | $ 3,250,000 | $ 0 | ||||
Employee options granted to purchase shares of common stock (in shares) | 150,000 | 400,000 | |||||
Azzurro Capital, Inc. | |||||||
Related Party Transactions | |||||||
Percent of outstanding shares | 55.20% | ||||||
Travelzoo Asia Pacific Adjustments | Affiliated Entity | |||||||
Related Party Transactions | |||||||
Net liabilities | $ 6,800,000 | 4,000,000 | |||||
Loan Issued to Asia Pacific | Majority Shareholder | |||||||
Related Party Transactions | |||||||
Related party debt | $ 2,200,000 | 1,000,000 | $ 1,000,000 | ||||
Stated percentage (percentage) | 10.00% | 8.00% | |||||
Interest payable | $ 5,000 | ||||||
Repayments of related party debt | $ 3,300,000 | ||||||
Repayments of related party debt, interest | $ 128,000 | ||||||
Travelzoo Europe Promissory Note | Majority Shareholder | |||||||
Related Party Transactions | |||||||
Related party debt | $ 5,700,000 | ||||||
Stated percentage (percentage) | 7.00% | ||||||
Interest payable | $ 267,000 | ||||||
Stock Options Granted | Chief Executive Officer | |||||||
Related Party Transactions | |||||||
Employee options granted to purchase shares of common stock (in shares) | 400,000 | ||||||
Travelzoo Asia Pacific | |||||||
Related Party Transactions | |||||||
Market transaction value | $ 22,600,000 | ||||||
Cash consideration | 17,000,000 | ||||||
Business combination, consideration transferred, liabilities incurred | $ 5,700,000 | ||||||
Note term (in years) | 3 years |
Related Party Transactions - As
Related Party Transactions - Asia Pacific Financial Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions | |||||||||||
Revenues | $ 29,262 | $ 30,440 | $ 34,046 | $ 34,804 | $ 32,051 | $ 33,728 | $ 36,792 | $ 39,145 | $ 128,552 | $ 141,716 | $ 153,240 |
Operating Loss | 1,939 | 2,205 | 3,776 | 3,148 | 976 | 860 | 2,328 | 2,982 | 11,068 | 7,146 | 17,810 |
Net Loss | $ 943 | $ 1,619 | $ 2,020 | $ 2,049 | $ 435 | $ 8,857 | $ 842 | $ 730 | 6,631 | 10,864 | 13,062 |
Other Comprehensive income | $ 6,752 | 9,558 | 10,834 | ||||||||
Affiliated Entity | Travelzoo Asia Pacific Adjustments | |||||||||||
Related Party Transactions | |||||||||||
Revenues | 10,774 | 11,218 | |||||||||
Operating Loss | (2,436) | (3,382) | |||||||||
Net Loss | (3,096) | (3,288) | |||||||||
Other Comprehensive income | $ 305 | $ 239 | |||||||||
Basic and diluted earnings per share (in dollars per share) | $ (0.21) | $ (0.22) |
Unaudited Quarterly Informati59
Unaudited Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 29,262 | $ 30,440 | $ 34,046 | $ 34,804 | $ 32,051 | $ 33,728 | $ 36,792 | $ 39,145 | $ 128,552 | $ 141,716 | $ 153,240 |
Cost of revenues | 3,331 | 3,361 | 3,612 | 4,009 | 4,328 | 4,742 | 5,208 | 4,546 | 14,313 | 18,824 | 19,174 |
Gross profit | 25,931 | 27,079 | 30,434 | 30,795 | 27,723 | 28,986 | 31,584 | 34,599 | 114,239 | 122,892 | 134,066 |
Operating expenses: | |||||||||||
Sales and marketing | 15,751 | 17,184 | 19,135 | 18,959 | 17,161 | 19,089 | 20,715 | 22,077 | 71,029 | 79,042 | 83,511 |
General and administrative | 6,077 | 5,373 | 5,434 | 5,813 | 6,270 | 6,120 | 5,335 | 6,451 | 22,697 | 24,176 | 29,002 |
Product development | 2,164 | 2,317 | 2,089 | 2,875 | 3,316 | 2,917 | 3,206 | 3,089 | 9,445 | 12,528 | 11,326 |
Total operating expenses | 23,992 | 24,874 | 26,658 | 27,647 | 26,747 | 28,126 | 29,256 | 31,617 | 103,171 | 115,746 | 116,256 |
Income from operations | 1,939 | 2,205 | 3,776 | 3,148 | 976 | 860 | 2,328 | 2,982 | 11,068 | 7,146 | 17,810 |
Other income (loss), net | (480) | 251 | (91) | 133 | (376) | (202) | (218) | (446) | (187) | (1,242) | 91 |
Income before income tax | 1,459 | 2,456 | 3,685 | 3,281 | 600 | 658 | 2,110 | 2,536 | 10,881 | 5,904 | 17,901 |
Income tax expense (benefit) | 516 | 837 | 1,665 | 1,232 | 165 | (8,199) | 1,268 | 1,806 | 4,250 | (4,960) | 4,839 |
Net income | $ 943 | $ 1,619 | $ 2,020 | $ 2,049 | $ 435 | $ 8,857 | $ 842 | $ 730 | $ 6,631 | $ 10,864 | $ 13,062 |
Basic net income per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.14 | $ 0.14 | $ 0.03 | $ 0.60 | $ 0.06 | $ 0.05 | $ 0.47 | $ 0.74 | $ 0.88 |
Diluted net income per share (in dollars per share) | $ 0.07 | $ 0.12 | $ 0.14 | $ 0.14 | $ 0.03 | $ 0.60 | $ 0.06 | $ 0.05 | $ 0.47 | $ 0.74 | $ 0.88 |