Travelzoo (TZOO) 10-Q 9 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 05, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Travelzoo
Entity Central Index Key	0001133311
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		11,735,774

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 14,113	$ 18,017
Accounts receivable, less allowance for doubtful accounts of $810 and $692 as of June 30, 2019 and December 31, 2018, respectively	15,323	12,646
Income tax receivable	817	389
Deposits	84	167
Prepaid expenses and other	1,739	1,947
Total current assets	32,076	33,166
Deposits and other	744	685
Deferred tax assets	1,359	1,645
Restricted cash	1,331	1,444
Investment in WeekenGO	2,958	2,694
Operating lease right-of-use assets	14,110
Property and equipment, net	3,346	3,790
Total assets	55,924	43,424
Current liabilities:
Accounts payable	14,419	17,129
Accrued expenses and other	8,720	7,853
Deferred revenue	1,165	1,339
Operating lease liabilities	5,693
Income tax payable	395	489
Total current liabilities	30,392	26,810
Long-term tax liabilities	434	418
Long-term operating lease liabilities	10,788
Long-term deferred rent and other	83	2,137
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value (20,000 shares authorized; 11,865 and 11,962 shares issued and outstanding as of June 30, 2019 and December 31, 2018)	119	120
Additional paid in capital	0	0
Retained earnings	18,337	18,153
Accumulated other comprehensive loss	(4,229)	(4,214)
Total stockholders’ equity	14,227	14,059
Total liabilities and stockholders’ equity	$ 55,924	$ 43,424

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 810	$ 692
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	11,865,000	11,962,000
Common stock, shares outstanding (in shares)	11,865,000	11,962,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenues	$ 28,184	$ 28,075	$ 59,009	$ 58,959
Cost of revenues	2,757	3,016	5,703	6,401
Gross profit	25,427	25,059	53,306	52,558
Operating expenses:
Sales and marketing	15,357	15,628	30,963	31,170
Product development	1,799	2,386	3,502	4,897
General and administrative	5,847	5,967	11,446	11,756
Total operating expenses	23,003	23,981	45,911	47,823
Income from operations	2,424	1,078	7,395	4,735
Other income (expense), net	(143)	30	(242)	191
Income before income taxes	2,281	1,108	7,153	4,926
Income tax expense	953	631	2,705	1,947
Net income	$ 1,328	$ 477	$ 4,448	$ 2,979
Net income per share - basic (in dollars per share)	$ 0.11	$ 0.04	$ 0.37	$ 0.24
Net income per share - diluted (in dollars per share)	$ 0.11	$ 0.04	$ 0.36	$ 0.24
Shares used in computing basic net income (loss) per share (in shares)	12,003	12,462	11,959	12,462
Shares used in computing diluted net income (loss) per share (in shares)	12,278	12,780	12,251	12,622

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 1,328	$ 477	$ 4,448	$ 2,979
Other comprehensive income (loss):
Foreign currency translation adjustment	74	(335)	(15)	(518)
Total comprehensive income	$ 1,402	$ 142	$ 4,433	$ 2,461

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 4,448	$ 2,979
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	663	827
Stock-based compensation	482	522
Deferred income tax	345	(149)
Loss on equity investment in WeekenGO	397	0
Net foreign currency effect	(26)	(136)
Other	26	(43)
Changes in operating assets and liabilities:
Accounts receivable	(2,779)	(897)
Income tax receivable	(428)	(277)
Prepaid expenses and other	239	418
Accounts payable	(2,788)	(3,200)
Accrued expenses and other	1,291	725
Income tax payable	(96)	169
Other liabilities	(174)	(158)
Net cash provided by operating activities	1,600	780
Cash flows from investing activities:
Investment in WeekenGO	(673)	(3,083)
Purchases of property and equipment	(201)	(507)
Net cash used in investing activities	(874)	(3,590)
Cash flows from financing activities:
Proceeds from the issuance of common stock	1,738
Repurchase of common stock	(6,460)	0
Exercise of stock options and taxes paid for net share settlement of equity awards	(26)	0
Net cash used in financing activities	(4,748)	0
Effect of exchange rate changes on cash, cash equivalents and restricted cash	5	(324)
Net decrease in cash, cash equivalents and restricted cash	(4,017)	(3,134)
Cash, cash equivalents and restricted cash at beginning of period	19,461	24,001
Cash, cash equivalents and restricted cash at end of period	15,444	20,867
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net	2,859	$ 2,196
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	997
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$ 1,281

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2017		12,462,000
Beginning balance at Dec. 31, 2017	$ 13,078	$ 125		$ 16,550	$ (3,597)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	173		$ 173
Foreign currency translation adjustment	(183)				(183)
Net income	2,502			2,502
Ending balance (in shares) at Mar. 31, 2018		12,462,000
Ending balance at Mar. 31, 2018	16,884	$ 125	173	20,366	(3,780)
Beginning balance (in shares) at Dec. 31, 2017		12,462,000
Beginning balance at Dec. 31, 2017	13,078	$ 125		16,550	(3,597)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,979
Ending balance (in shares) at Jun. 30, 2018		12,462,000
Ending balance at Jun. 30, 2018	17,375	$ 125	522	20,843	(4,115)
Beginning balance (in shares) at Mar. 31, 2018		12,462,000
Beginning balance at Mar. 31, 2018	16,884	$ 125	173	20,366	(3,780)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	349		349
Foreign currency translation adjustment	(335)				(335)
Net income	477			477
Ending balance (in shares) at Jun. 30, 2018		12,462,000
Ending balance at Jun. 30, 2018	17,375	$ 125	522	20,843	(4,115)
Beginning balance (in shares) at Dec. 31, 2018		11,962,000
Beginning balance at Dec. 31, 2018	14,059	$ 120	0	18,153	(4,214)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	163		163
Repurchase and retirement of common stock, net (in shares)		(100,000)
Repurchase and retirement of common stock	(1,590)	$ (1)	(137)	(1,452)
Taxes paid for net share settlement of equity awards (in shares)		3,000
Taxes paid for net share settlement of equity awards	(26)		(26)
Foreign currency translation adjustment	(89)				(89)
Net income	3,120			3,120
Ending balance (in shares) at Mar. 31, 2019		11,865,000
Ending balance at Mar. 31, 2019	15,637	$ 119	0	19,821	(4,303)
Beginning balance (in shares) at Dec. 31, 2018		11,962,000
Beginning balance at Dec. 31, 2018	14,059	$ 120	0	18,153	(4,214)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,448
Ending balance (in shares) at Jun. 30, 2019		11,865,000
Ending balance at Jun. 30, 2019	14,227	$ 119	0	18,337	(4,229)
Beginning balance (in shares) at Mar. 31, 2019		11,865,000
Beginning balance at Mar. 31, 2019	15,637	$ 119	0	19,821	(4,303)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	319		319
Repurchase and retirement of common stock, net (in shares)		(250,000)
Repurchase and retirement of common stock	(4,869)	$ (2)	(2,055)	(2,812)
Foreign currency translation adjustment	74				74
Net income	$ 1,328			1,328
Exercise of stock options and taxes paid for net share settlement of equity awards (in shares)	250,000
Exercise of stock options and taxes paid for net share settlement of equity awards	$ 1,738	$ 2	1,736
Ending balance (in shares) at Jun. 30, 2019		11,865,000
Ending balance at Jun. 30, 2019	$ 14,227	$ 119	$ 0	$ 18,337	$ (4,229)

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
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® provides our members insider deals and one-of-a-kind experiences personally reviewed by one of our deal experts around the globe. With 25 offices worldwide, we have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. For over 15 years we have worked in partnership with top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals. Travelzoo's revenues are generated primarily from advertising fees. Our publications and products include the Travelzoo website, the Travelzoo iPhone and Android apps, the Travelzoo Top 20 e-mail newsletter, the Newsflash e-mail alert service, and the Travelzoo Network , a network of third-party websites that list travel deals published by Travelzoo. Our Travelzoo website includes Local Deals and Getaways 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. Ralph Bartel, who founded Travelzoo (the "Company") 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 June 30, 2019 , Azzurro is the Company's largest stockholder, holding approximately 48.5% of the Company's outstanding shares. Azzurro currently holds a proxy given to it by Holger Bartel that provides it with a total of 50.6% of the voting power. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial position of the Company and its results of operations and cash flows. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2018, included in the Company’s Form 10-K filed with the SEC on March 11, 2019. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Investments in entities where the Company does not have control, but does have significant influence, are accounted for as equity method investments. In April 2018, Travelzoo entered into an agreement with WeekenGO, a start-up company in Germany. WeekenGO uses new technology to promote vacation packages. Travelzoo invested $ 3.0 million in WeekenGO for a 25% ownership interest. The Company accounts for this private company investment using the equity method of accounting by recording its share of the results of WeekenGO in Other income (expense), net on a one-quarter lag basis. In accounting for the investment, the Company allocated $1.0 million of its purchase price to tangible assets and allocated approximately $ 485,000 of the purchase to technology-related intangible assets to be amortized over a three -year life. The remaining $ 1.5 million of the purchase price was allocated to goodwill. In April 2019, the Company invested an additional $673,000 in WeekenGO and increased the Company's ownership interest to 26.6% . During the three and six months ended June 30, 2019 , the Company recorded $ 198,000 and $409,000 , respectively, for its share of WeekenGO losses, amortization of basis differences and currency translation adjustment. This equity method investment is reported as a long-term investment on the Company's condensed consolidated balance sheets. WeekenGO signed a $ 2.1 million insertion order for advertising with Travelzoo in April 2018. The Company's advertising services provided to WeekenGO in the three and six months ended June 30, 2019 were $239,000 and $ 794,000 , respectively. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other future period, and the Company makes no representations related thereto. (b) Recent Accounting Pronouncements Not Yet Adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract." The new guidance required a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for calendar-year public business entities in 2020. For all other calendar-year entities, it is effective for annual periods beginning in 2021 and interim periods in 2022. Early adoption is 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. (c) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued an ASU 2016-02, "Leases," codified in Accounting Standard Codification 842 ("ASC 842"), which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability on its balance sheet. The Company adopted ASC 842 on January 1, 2019, using the alternative modified transition method with no restatement of prior periods or cumulative adjustment to retained earnings. Upon adoption, the Company elected the package of transition practical expedients: (i) not to reassess prior conclusions related to whether any expired or existing contracts are or contain leases; (ii) not to reassess the lease classification for any expired or existing leases; (iii) not to reassess initial direct costs for existing leases; and (iv) not to reassess certain land easements. Upon adoption of the standard, the Company recognized an operating lease right-of-use assets of approximately $13.4 million and a corresponding operating lease liability of approximately $16.0 million , which includes reclassifying existing deferred rent liability of $2.6 million to operating lease right-of-use assets. (d) Significant Accounting Policies Below are the significant accounting policies as a result of the recently adopted accounting pronouncements. For a comprehensive description of our accounting policies, refer to our Annual Report on Form 10-K for the year ended December 31, 2018. Leases The Company determines if an arrangement contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease payments used to determine the operating lease assets may include lease incentives and stated rent increases. The Company does not include options to extend or terminate until it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The Company elected not to recognize leases with an initial term of 12 months or less on its unaudited condensed consolidated balance sheets. The Company’s leases are reflected in operating lease ROU assets, operating lease liabilities and long-term operating lease liabilities in our unaudited condensed consolidated balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company also has a real estate lease agreement which is subleased to a third party. The Company recognizes sublease income in Other income (expense), net on a straight-line basis over the lease term in its condensed consolidated statements of income. Cash, Cash Equivalents and Restricted Cash Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to refundable deposits and funds held in escrow. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the total amounts shown in the unaudited condensed consolidated statements of cash flows: June 30, December 31, 2019 2018 Cash and cash equivalents $ 14,113 $ 18,017 Restricted cash 1,331 1,444 Total cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows $ 15,444 $ 19,461 The Company’s restricted cash was included in noncurrent assets as of June 30, 2019 and December 31, 2018. Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company generates revenues primarily by delivering advertising on the Travelzoo website, in the Top 20 email newsletter, in Newsflash and from the Travelzoo Network . The Company also generates transaction-based revenues from the sale of vouchers through our Local Deals and Getaways product and operation of a hotel booking platform. The Company's disaggregated revenues are included in "Note 8: Segment Reporting and Significant Customer Information". For fixed-fee website advertising, the Company recognizes revenues ratably over the contracted placement period. For Top 20 email newsletter and other email products, the Company recognizes revenues when the emails are delivered to its members. The Company offers advertising on a cost-per-click basis, which means that an advertiser pays the Company only when a user clicks on an ad on Travelzoo properties or Travelzoo Network members’ properties. For these customers, the Company recognizes revenues each time a user clicks on the ad. The Company also offers advertising on other bases, such as cost-per-impression, which means that an advertiser pays the Company based on the number of times their advertisement is displayed on Travelzoo properties, email advertisements, Travelzoo Network properties, or social media properties. For these customers, the Company recognizes revenues each time an ad is displayed or email delivered. For transaction based revenues, including products such as Local Deals, Getaways and hotel platform, the Company evaluates whether it is the principal (i.e., report revenue on a gross basis) versus an agent (i.e., report revenue on a net basis). The Company reports transaction revenue on a net basis because the supplier is primarily responsible for providing the underlying service and we do not control the service provided by the supplier prior to its transfer to the customer. For Local Deals and Getaways products, the Company earns a fee for acting as an agent for the sale of vouchers that can be redeemed for services with third-party merchants. Revenues are presented net of the amounts due to the third-party merchants for fulfilling the underlying services. Certain merchant contracts allow the Company to retain the proceeds from unredeemed vouchers. With these contracts, the Company estimates the value of vouchers that will ultimately not be redeemed and records the estimate in the same period as the voucher sale. Commission revenue related to our hotel platform is recognized ratably over the period of guest stay, net of an allowance for cancellations based upon historical patterns. For arrangements for booking non-cancelable reservations where the Company’s performance obligation is deemed to be the successful booking of a hotel reservation, we record revenue for the commissions upon completion of the hotel booking. The Company’s contracts with customers may include multiple performance obligations in which the Company allocates revenues to each performance obligation based on its standalone selling price. The Company determines standalone selling price based on its overall pricing objectives, taking into consideration the type of services, geographical region of the customers, normal rate card pricing and customary discounts. Standalone selling price is generally determined based on the prices charged to customers when the product is sold separately. The Company relies upon the following practical expedients and exemptions allowed for in the ASC 606. The Company expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded in sales and marketing expenses. In addition, the Company does not disclose the value of unsatisfied performance obligations for (a) contracts with an original expected length of one year or less and (b) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services performed. Deferred revenue primarily consists of customer prepayments and undelivered performance obligations related to the Company’s contracts with multiple performance obligations. At December 31, 2018 , $1.3 million was recorded as deferred revenue, of which $105,000 and $1.0 million was recognized as revenue during the three and six months ended June 30, 2019 , respectively.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2019
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): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net income $ 1,328 $ 477 $ 4,448 $ 2,979 Denominator: Weighted average common shares—basic 12,003 12,462 11,959 12,462 Effect of dilutive securities: stock options 275 318 292 160 Weighted average common shares—diluted 12,278 12,780 12,251 12,622 Net income per share—basic $ 0.11 $ 0.04 $ 0.37 $ 0.24 Net income per share—diluted $ 0.11 $ 0.04 $ 0.36 $ 0.24 For the three and six months ended June 30, 2019 , options to purchase 200,000 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the three and six months ended June 30, 2018 , options to purchase 300,000 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
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. 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 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. During 2010 through 2014, the Company became subject to unclaimed property audits of various states in the United States related to the above unexchanged promotional shares and completed settlements with all states. Although the Company has settled the 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 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 Company did not make any payments for the three and six months ended June 30, 2019 and 2018 . The total cost of this program cannot be reliably estimated 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 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 has operating leases. Refer to Note 9 for contractual commitments as of June 30, 2019 . Local Deals and Getaways merchant payables included in accounts payable were $9.3 million and $11.8 million , as of June 30, 2019 and December 31, 2018 , respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes In determining the quarterly provisions for income taxes, the Company uses an estimated annual effective tax rate, which is generally based on our expected annual income and statutory tax rates in the U.S., Canada, Japan, Hong Kong, and the U.K. For the three months ended June 30, 2019 and 2018 , the Company's effective tax rate was 42% and 57% , respectively. For the six months ended June 30, 2019 and 2018 , the Company's effective tax rate was 38% and 40% , respectively. The Company's effective tax rate decreased for the three and six months ended June 30, 2019 from the corresponding three and six months ended June 30, 2018 , primarily due to the geographic mix of income from continuing operations, and foreign losses not benefited. As of June 30, 2019 , the Company is permanently reinvested in certain of its non-U.S. subsidiaries and does not have a deferred tax liability related to its undistributed foreign earnings. The estimated amount of the unrecognized deferred tax liability attributed to future withholding taxes on dividend distributions of undistributed earnings for certain non-U.S. subsidiaries, which the Company intends to reinvest the related earnings indefinitely in its operations outside the U.S., is approximately $453,000 . The Company maintains liabilities for uncertain tax positions. At June 30, 2019 , the Company had approximately $213,000 in total unrecognized tax benefits, which if recognized, would favorably affect the Company’s effective income tax rate. 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 June 30, 2019 and December 31, 2018 , the Company had approximately $228,000 and $212,000 in accrued interest, respectively. 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 2014 and is subject to California tax examinations for years after 2013. We do not know what our income taxes will be in future periods. There may be fluctuations that have a material impact on our results of operations. Our income taxes are dependent on numerous factors such as the geographic mix of our taxable income, federal and state and foreign country tax law and regulations and changes thereto, the determination of whether valuation allowances for certain tax assets are required or not, audits of prior years' tax returns resulting in adjustments, resolution of uncertain tax positions and different treatment for certain items for tax versus books. We expect fluctuations in our income taxes from year to year and from quarter to quarter. Some of the fluctuations may be significant and have a material impact on our results of operations.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Beginning balance $ (4,303 ) $ (3,780 ) $ (4,214 ) $ (3,597 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 74 (335 ) (15 ) (518 ) Ending balance $ (4,229 ) $ (4,115 ) $ (4,229 ) $ (4,115 ) There were no amounts reclassified from accumulated other comprehensive loss for the three months ended June 30, 2019 and 2018 .

Stock-Based Compensation and St

Stock-Based Compensation and Stock Options	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [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 condensed consolidated statements of operations. 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 became exercisable annually starting 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. During the first quarter of 2019, the remaining 50,000 options were canceled upon the departure of an executive. Stock-based compensation related to these options was fully expensed. 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. Stock-based compensation related to these options was fully expensed. As of June 30, 2019 , 400,000 options were vested and outstanding. 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. In 2017, 37,500 options were forfeited and 12,500 options were canceled upon the departure of an executive and the compensation expense of $19,000 was reversed. In 2018, 50,000 options were forfeited upon the departure of an executive and the compensation expense of $59,000 was reversed. During the first quarter of 2019, the remaining 50,000 options were net exercised for 4,000 shares of common stock. In October 2017, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $6.95 , of which 50,000 shares are exercisable quarterly starting March 31, 2018 and ending on December 31, 2019. The options expire in 2027. During the six months ended June 30, 2019 , 250,000 options were exercised. As of June 30, 2019 , 150,000 options were outstanding and 50,000 of these options were vested. Total stock-based compensation for the three and six months ended June 30, 2019 , related to these option grants was $143,000 and $287,000 , respectively. As of June 30, 2019 , there was approximately $287,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 0.5 years . In April 2018, the Company granted an employee stock options to purchase 50,000 shares of common stock with an exercise price of $10.50 . The options vest in twelve equal installments. The first installment vested on April 26, 2018 , and the remaining eleven installments vest from June 30, 2018 to December 31, 2020 . During the first quarter of 2019, the Company recognized $34,000 stock-based compensation and canceled the 50,000 options upon the departure of the employee. In May 2018, the Company granted an employee options to purchase 50,000 shares of common stock with an exercise price of $14.70 , of which 12,500 options will vest and become exercisable annually starting on May 2019. As of June 30, 2019 , 50,000 options were outstanding and 12,500 of these options were vested. Total stock-based compensation for the three and six months ended June 30, 2019 , related to these option grants was $22,000 and $45,000 , respectively. As of June 30, 2019 , there was approximately $257,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 2.9 years . In June 2018, the Company granted an employee options to purchase 50,000 shares of common stock with an exercise price of $16.65 , of which 12,500 options will vest and become exercisable annually starting on June 2019 . As of June 30, 2019 , 50,000 options were outstanding and 12,500 of these options were vested. Total stock-based compensation for the three and six months ended June 30, 2019 , related to these option grants was $7,000 and $32,000 , respectively. As of June 30, 2019 , there was approximately $247,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.0 years . In May 2019, the Company granted an employee options to purchase 100,000 shares of common stock with an exercise price of $19.28 , of which 10,000 options vested and became exercisable in May 2019, 15,000 options will vest and become exercisable in August 2019 if certain performance targets are met, and the remaining 75,000 will vest in three equal installments starting on May 20, 2021 and ending on May 20, 2023. As of June 30, 2019 , 100,000 options were outstanding and 10,000 of these options were vested. Total stock-based compensation for the three months ended June 30, 2019 , related to these option grants was $146,000 . As of June 30, 2019 , there was approximately $732,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.9 years .

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jun. 30, 2019
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 assist with capital allocation. Management is allowed discretion in the execution of the repurchase program based upon market conditions and consideration of capital allocation. In February 2019, the Company entered into a Stock Repurchase Agreement with Azzurro, a majority shareholder of the Company and repurchased 100,000 shares of the Company’s common stock for an aggregate purchase price of $1.6 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 May 2019, 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 three months ended June 30, 2019 , the Company repurchased 250,000 shares of common stock for an aggregate purchase price of $4.9 million .

Segment Reporting and Significa

Segment Reporting and Significant Customer Information	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Segments 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, 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 profit (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating profit (loss) are appropriate measures of evaluating the operational performance of the Company’s segments. The following is a summary of operating results (in thousands) by business segment: Three Months Ended June 30, 2019 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 1,557 $ 9,133 $ 17,494 $ 28,184 Intersegment revenues (expenses) 23 (451 ) 428 — Total net revenues 1,580 8,682 17,922 28,184 Operating profit (loss) $ (1,783 ) $ 584 $ 3,623 $ 2,424 Three Months Ended June 30, 2018 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 2,073 $ 8,527 $ 17,475 $ 28,075 Intersegment revenues (expenses) (9 ) (27 ) 36 — Total net revenues 2,064 8,500 17,511 28,075 Operating profit (loss) $ (1,472 ) $ 441 $ 2,109 $ 1,078 Six Months Ended June 30, 2019 Asia Pacific Europe North Consolidated Revenues from unaffiliated customers $ 3,192 $ 20,187 $ 35,630 $ 59,009 Intersegment revenues (expenses) 53 (932 ) 879 — Total net revenues 3,245 19,255 36,509 59,009 Operating profit (loss) $ (3,418 ) $ 2,721 $ 8,092 $ 7,395 Six Months Ended June 30, 2018 Asia Pacific Europe North Consolidated Revenues from unaffiliated customers $ 4,115 $ 18,859 $ 35,985 $ 58,959 Intersegment revenues (expenses) (29 ) (79 ) 108 — Total net revenues 4,086 18,780 36,093 58,959 Operating profit (loss) $ (3,212 ) $ 2,407 $ 5,540 $ 4,735 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. Revenues from unaffiliated customers excludes intersegment revenues and represents revenue with parties unaffiliated with Travelzoo and its wholly owned subsidiaries. For the three and six months ended June 30, 2019 and 2018 , the Company did not have any customers that accounted for 10% or more of revenue. As of June 30, 2019 and December 31, 2018 , the Company did not have any customers that accounted for 10% or more of accounts receivable. 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 ), Getaways vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Asia Pacific Travel $ 1,532 $ 1,930 $ 3,132 $ 3,831 Local 48 134 113 255 Total Asia Pacific revenues $ 1,580 $ 2,064 $ 3,245 $ 4,086 Europe Travel $ 7,565 $ 7,409 $ 17,077 $ 16,462 Local 1,117 1,091 2,178 2,318 Total Europe revenues $ 8,682 $ 8,500 $ 19,255 $ 18,780 North America Travel $ 15,252 $ 14,596 $ 31,569 $ 30,632 Local 2,670 2,915 4,940 5,461 Total North America revenues $ 17,922 $ 17,511 $ 36,509 $ 36,093 Consolidated Travel $ 24,349 $ 23,935 $ 51,778 $ 50,925 Local 3,835 4,140 7,231 8,034 Total revenues $ 28,184 $ 28,075 $ 59,009 $ 58,959 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 countries that exceed 10% of total revenue (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue United States $ 16,329 $ 15,974 $ 33,224 $ 33,092 United Kingdom 4,736 5,159 10,595 11,019 Germany 2,791 2,632 6,432 6,291 Rest of the world 4,328 4,310 8,758 8,557 Total revenues $ 28,184 $ 28,075 $ 59,009 $ 58,959 The following table sets forth property and equipment by geographic area (in thousands): June 30, December 31, 2019 2018 United States $ 2,666 $ 3,035 Rest of the world 680 755 Total long lived assets $ 3,346 $ 3,790

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	Leases The Company has operating leases for real estate and certain equipment. The Company leases office space in Australia, Canada, China, France, Germany, Hong Kong, Japan, Singapore, Spain, the U.K., and the U.S. under operating leases. Our leases have remaining lease terms ranging from less than one year to November 2024. Certain leases include one or more options to renew. In addition, we sublease certain real estate to a third party. All of our leases qualify as operating leases. The following table summarizes the components of lease expense for the six months ended June 30, 2019 ((in thousands): June 30, 2019 Operating lease cost $ 1,158 Short-term lease cost 311 Variable lease cost 296 Sublease income (84 ) Total lease cost $ 1,681 For the three months ended June 30, 2019 , cash payments against the operating lease liabilities totaled $1.3 million . ROU assets obtained in exchange for lease obligations was $997,000 for three months ended June 30, 2019 . The following table summarizes the presentation in our condensed consolidated balance sheets of our operating leases (in thousands): June 30, 2019 Assets: Operating lease right-of-use assets $ 14,110 Liabilities: Operating lease liabilities $ 5,693 Long-term operating lease liabilities 10,788 Total operating lease liabilities $ 16,481 Weighted average remaining lease term (years) 3.76 Weighted average discount rate 5.1 % Maturities of lease liabilities were as follows (in thousands): Years ending December 31, 2019 (excluding the six months ended June 30, 2019) $ 3,023 2020 5,370 2021 3,954 2022 2,593 2023 2,096 Thereafter 1,158 Total lease payments 18,194 Less interest (1,713 ) Present value of operating lease liabilities $ 16,481

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements	Recent Accounting Pronouncements Not Yet Adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract." The new guidance required a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for calendar-year public business entities in 2020. For all other calendar-year entities, it is effective for annual periods beginning in 2021 and interim periods in 2022. Early adoption is 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. (c) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued an ASU 2016-02, "Leases," codified in Accounting Standard Codification 842 ("ASC 842"), which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability on its balance sheet. The Company adopted ASC 842 on January 1, 2019, using the alternative modified transition method with no restatement of prior periods or cumulative adjustment to retained earnings. Upon adoption, the Company elected the package of transition practical expedients: (i) not to reassess prior conclusions related to whether any expired or existing contracts are or contain leases; (ii) not to reassess the lease classification for any expired or existing leases; (iii) not to reassess initial direct costs for existing leases; and (iv) not to reassess certain land easements.
Leases	Leases The Company determines if an arrangement contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease payments used to determine the operating lease assets may include lease incentives and stated rent increases. The Company does not include options to extend or terminate until it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The Company elected not to recognize leases with an initial term of 12 months or less on its unaudited condensed consolidated balance sheets. The Company’s leases are reflected in operating lease ROU assets, operating lease liabilities and long-term operating lease liabilities in our unaudited condensed consolidated balance sheets. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company also has a real estate lease agreement which is subleased to a third party. The Company recognizes sublease income in Other income (expense), net on a straight-line basis over the lease term in its condensed consolidated statements of income.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to refundable deposits and funds held in escrow.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company generates revenues primarily by delivering advertising on the Travelzoo website, in the Top 20 email newsletter, in Newsflash and from the Travelzoo Network . The Company also generates transaction-based revenues from the sale of vouchers through our Local Deals and Getaways product and operation of a hotel booking platform. The Company's disaggregated revenues are included in "Note 8: Segment Reporting and Significant Customer Information". For fixed-fee website advertising, the Company recognizes revenues ratably over the contracted placement period. For Top 20 email newsletter and other email products, the Company recognizes revenues when the emails are delivered to its members. The Company offers advertising on a cost-per-click basis, which means that an advertiser pays the Company only when a user clicks on an ad on Travelzoo properties or Travelzoo Network members’ properties. For these customers, the Company recognizes revenues each time a user clicks on the ad. The Company also offers advertising on other bases, such as cost-per-impression, which means that an advertiser pays the Company based on the number of times their advertisement is displayed on Travelzoo properties, email advertisements, Travelzoo Network properties, or social media properties. For these customers, the Company recognizes revenues each time an ad is displayed or email delivered. For transaction based revenues, including products such as Local Deals, Getaways and hotel platform, the Company evaluates whether it is the principal (i.e., report revenue on a gross basis) versus an agent (i.e., report revenue on a net basis). The Company reports transaction revenue on a net basis because the supplier is primarily responsible for providing the underlying service and we do not control the service provided by the supplier prior to its transfer to the customer. For Local Deals and Getaways products, the Company earns a fee for acting as an agent for the sale of vouchers that can be redeemed for services with third-party merchants. Revenues are presented net of the amounts due to the third-party merchants for fulfilling the underlying services. Certain merchant contracts allow the Company to retain the proceeds from unredeemed vouchers. With these contracts, the Company estimates the value of vouchers that will ultimately not be redeemed and records the estimate in the same period as the voucher sale. Commission revenue related to our hotel platform is recognized ratably over the period of guest stay, net of an allowance for cancellations based upon historical patterns. For arrangements for booking non-cancelable reservations where the Company’s performance obligation is deemed to be the successful booking of a hotel reservation, we record revenue for the commissions upon completion of the hotel booking. The Company’s contracts with customers may include multiple performance obligations in which the Company allocates revenues to each performance obligation based on its standalone selling price. The Company determines standalone selling price based on its overall pricing objectives, taking into consideration the type of services, geographical region of the customers, normal rate card pricing and customary discounts. Standalone selling price is generally determined based on the prices charged to customers when the product is sold separately. The Company relies upon the following practical expedients and exemptions allowed for in the ASC 606. The Company expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded in sales and marketing expenses. In addition, the Company does not disclose the value of unsatisfied performance obligations for (a) contracts with an original expected length of one year or less and (b) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services performed. Deferred revenue primarily consists of customer prepayments and undelivered performance obligations related to the Company’s contracts with multiple performance obligations.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reconciliation of cash, cash equivalents and restricted cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the total amounts shown in the unaudited condensed consolidated statements of cash flows: June 30, December 31, 2019 2018 Cash and cash equivalents $ 14,113 $ 18,017 Restricted cash 1,331 1,444 Total cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows $ 15,444 $ 19,461

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
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): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net income $ 1,328 $ 477 $ 4,448 $ 2,979 Denominator: Weighted average common shares—basic 12,003 12,462 11,959 12,462 Effect of dilutive securities: stock options 275 318 292 160 Weighted average common shares—diluted 12,278 12,780 12,251 12,622 Net income per share—basic $ 0.11 $ 0.04 $ 0.37 $ 0.24 Net income per share—diluted $ 0.11 $ 0.04 $ 0.36 $ 0.24

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Schedule of changes in accumulated balances of other comprehensive loss	The following table summarizes the changes in accumulated other comprehensive loss (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Beginning balance $ (4,303 ) $ (3,780 ) $ (4,214 ) $ (3,597 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 74 (335 ) (15 ) (518 ) Ending balance $ (4,229 ) $ (4,115 ) $ (4,229 ) $ (4,115 )

Segment Reporting and Signifi_2

Segment Reporting and Significant Customer Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Summary of operating results from continuing operations and assets by business segment	The following is a summary of operating results (in thousands) by business segment: Three Months Ended June 30, 2019 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 1,557 $ 9,133 $ 17,494 $ 28,184 Intersegment revenues (expenses) 23 (451 ) 428 — Total net revenues 1,580 8,682 17,922 28,184 Operating profit (loss) $ (1,783 ) $ 584 $ 3,623 $ 2,424 Three Months Ended June 30, 2018 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 2,073 $ 8,527 $ 17,475 $ 28,075 Intersegment revenues (expenses) (9 ) (27 ) 36 — Total net revenues 2,064 8,500 17,511 28,075 Operating profit (loss) $ (1,472 ) $ 441 $ 2,109 $ 1,078 Six Months Ended June 30, 2019 Asia Pacific Europe North Consolidated Revenues from unaffiliated customers $ 3,192 $ 20,187 $ 35,630 $ 59,009 Intersegment revenues (expenses) 53 (932 ) 879 — Total net revenues 3,245 19,255 36,509 59,009 Operating profit (loss) $ (3,418 ) $ 2,721 $ 8,092 $ 7,395 Six Months Ended June 30, 2018 Asia Pacific Europe North Consolidated Revenues from unaffiliated customers $ 4,115 $ 18,859 $ 35,985 $ 58,959 Intersegment revenues (expenses) (29 ) (79 ) 108 — Total net revenues 4,086 18,780 36,093 58,959 Operating profit (loss) $ (3,212 ) $ 2,407 $ 5,540 $ 4,735
Schedule of revenue and long lived assets by geographical location	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 ), Getaways vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings). Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Asia Pacific Travel $ 1,532 $ 1,930 $ 3,132 $ 3,831 Local 48 134 113 255 Total Asia Pacific revenues $ 1,580 $ 2,064 $ 3,245 $ 4,086 Europe Travel $ 7,565 $ 7,409 $ 17,077 $ 16,462 Local 1,117 1,091 2,178 2,318 Total Europe revenues $ 8,682 $ 8,500 $ 19,255 $ 18,780 North America Travel $ 15,252 $ 14,596 $ 31,569 $ 30,632 Local 2,670 2,915 4,940 5,461 Total North America revenues $ 17,922 $ 17,511 $ 36,509 $ 36,093 Consolidated Travel $ 24,349 $ 23,935 $ 51,778 $ 50,925 Local 3,835 4,140 7,231 8,034 Total revenues $ 28,184 $ 28,075 $ 59,009 $ 58,959 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 countries that exceed 10% of total revenue (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue United States $ 16,329 $ 15,974 $ 33,224 $ 33,092 United Kingdom 4,736 5,159 10,595 11,019 Germany 2,791 2,632 6,432 6,291 Rest of the world 4,328 4,310 8,758 8,557 Total revenues $ 28,184 $ 28,075 $ 59,009 $ 58,959 The following table sets forth property and equipment by geographic area (in thousands): June 30, December 31, 2019 2018 United States $ 2,666 $ 3,035 Rest of the world 680 755 Total long lived assets $ 3,346 $ 3,790

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Lease cost	The following table summarizes the components of lease expense for the six months ended June 30, 2019 ((in thousands): June 30, 2019 Operating lease cost $ 1,158 Short-term lease cost 311 Variable lease cost 296 Sublease income (84 ) Total lease cost $ 1,681
Lease assets and liabilities	The following table summarizes the presentation in our condensed consolidated balance sheets of our operating leases (in thousands): June 30, 2019 Assets: Operating lease right-of-use assets $ 14,110 Liabilities: Operating lease liabilities $ 5,693 Long-term operating lease liabilities 10,788 Total operating lease liabilities $ 16,481 Weighted average remaining lease term (years) 3.76 Weighted average discount rate 5.1 %
Lease liability maturity	Maturities of lease liabilities were as follows (in thousands): Years ending December 31, 2019 (excluding the six months ended June 30, 2019) $ 3,023 2020 5,370 2021 3,954 2022 2,593 2023 2,096 Thereafter 1,158 Total lease payments 18,194 Less interest (1,713 ) Present value of operating lease liabilities $ 16,481

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	1 Months Ended		3 Months Ended	6 Months Ended
	Apr. 30, 2019USD ($)	Apr. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2019USD ($)office	Jun. 30, 2018USD ($)	Jan. 01, 2019USD ($)	Dec. 31, 2018USD ($)
Related Party Transaction
Ownership percentage held by related party			48.50%	48.50%
Payment to acquire equity method investment				$ 673	$ 3,083
Operating lease right-of-use assets			$ 14,110	14,110
Operating lease liability			16,481	16,481
Deferred revenue							$ 1,300
Deferred revenue recognized			$ 105	$ 1,000
Majority Shareholder
Related Party Transaction
Percent of outstanding shares held by related party			50.60%	50.60%
Minimum
Related Party Transaction
Number of offices | office				25
Accounting Standards Update 2016-02
Related Party Transaction
Operating lease right-of-use assets						$ 13,400
Operating lease liability						16,000
Reclassification of deferred rent liability to operating lease right of use asset						$ 2,600
WeekenGO
Related Party Transaction
Equity method investment ownership percentage	26.60%	25.00%
Payment to acquire equity method investment	$ 673	$ 3,000
Equity method purchase price allocation, tangible assets		1,000
Goodwill		1,500
Loss from share of equity loss and intangible asset amortization			$ 198	$ 409
WeekenGO | Equity Method Investee
Related Party Transaction
Insertion order signed to advertise with TravelZoo		2,100
Advertising services purchased			$ 239	$ 794
WeekenGO | Technology related intangible
Related Party Transaction
Equity method purchase price allocation, intangible assets		$ 485
Intangible assets, useful life (in years)		3 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 14,113	$ 18,017
Restricted cash	1,331	1,444
Total cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows	$ 15,444	$ 19,461	$ 20,867	$ 24,001

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income	$ 1,328	$ 3,120	$ 477	$ 2,502	$ 4,448	$ 2,979
Denominator:
Weighted average common shares - basic (in shares)	12,003,000		12,462,000		11,959,000	12,462,000
Effect of dilutive securities: stock options (in shares)	275,000		318,000		292,000	160,000
Weighted average common shares - diluted (in shares)	12,278,000		12,780,000		12,251,000	12,622,000
Net income per share - basic (in dollars per share)	$ 0.11		$ 0.04		$ 0.37	$ 0.24
Net income per share - diluted (in dollars per share)	$ 0.11		$ 0.04		$ 0.36	$ 0.24
Anti-dilutive shares not included in computation of net income (loss) per common share (in shares)	200,000		300,000		200,000	300,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2004	Dec. 31, 2002	Jun. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Local deals and getaway merchant payables			$ 9.3	$ 11.8
Travel Zoo Com Corporation
Business Acquisition [Line Items]
Period for receiving shares under merger (in years)	2 years	2 years
Number of shares exchanged under merger (in shares)		1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Effective tax rate, percentage	42.00%	57.00%	38.00%	40.00%
Unrecognized deferred tax liability	$ 453		$ 453
Total unrecognized tax benefits	213		213
Accrued interest and penalties	$ 228		$ 228		$ 212

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 15,637,000	$ 16,884,000	$ 14,059,000	$ 13,078,000
Ending balance	14,227,000	17,375,000	14,227,000	17,375,000
Amounts reclassified from accumulated other comprehensive loss	0	0
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(4,303,000)	(3,780,000)	(4,214,000)	(3,597,000)
Ending balance	(4,229,000)	(4,115,000)	(4,229,000)	(4,115,000)
Foreign Currency Translation
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss) due to foreign currency translation, net of tax	$ 74,000	$ (335,000)	$ (15,000)	$ (518,000)

Stock-Based Compensation and _2

Stock-Based Compensation and Stock Options (Details) $ / shares in Units, $ in Thousands	Jun. 30, 2019USD ($)shares	May 31, 2019installment$ / sharesshares	Jun. 30, 2018$ / sharesshares	May 31, 2018$ / sharesshares	Apr. 30, 2018installment$ / sharesshares	Oct. 31, 2017$ / sharesshares	Mar. 31, 2016$ / sharesshares	Sep. 30, 2015$ / sharesshares	Jan. 31, 2012$ / sharesshares	Jun. 30, 2019USD ($)shares	Mar. 31, 2019shares	Jun. 30, 2019USD ($)shares	Dec. 31, 2018USD ($)shares	Dec. 31, 2017USD ($)shares	Dec. 31, 2014shares
Share-based Compensation Arrangement by Share-based Payment Award
Options exercised (in shares)										250,000
January 2012 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Employee options granted to purchase shares of common stock (in shares)									100,000
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares									$ 28.98
Options vested and become exercisable annually (in shares)									25,000
Options canceled (in shares)											50,000				25,000
Options forfeited (in shares)															25,000
September 2015 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Employee options granted to purchase shares of common stock (in shares)								400,000
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares								$ 8.07
Options vested and become exercisable quarterly (in shares)								50,000
Options vested (in shares)	400,000
Options outstanding (in shares)	400,000									400,000		400,000
March 2016 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Employee options granted to purchase shares of common stock (in shares)							150,000
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares							$ 8.55
Options vested and become exercisable annually (in shares)							37,500
Options exercised (in shares)											50,000
Shares issued upon exercise of options (in shares)	4,000									4,000		4,000
October 2017 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Employee options granted to purchase shares of common stock (in shares)						400,000
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares						$ 6.95
Options vested and become exercisable quarterly (in shares)						50,000
Options vested (in shares)	50,000
Total stock-based compensation expense | $										$ 143		$ 287
Options exercised (in shares)												250,000
Options outstanding (in shares)	150,000									150,000		150,000
Unrecognized stock-based compensation expense | $	$ 287									$ 287		$ 287
Expected duration for recognition of stock based compensation expense (in years)												6 months
April 2018 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Employee options granted to purchase shares of common stock (in shares)					50,000
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares					$ 10.50
Options canceled (in shares)										50,000
Total stock-based compensation expense | $										$ 34
Number of installments | installment					12
May 2018 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Employee options granted to purchase shares of common stock (in shares)				50,000
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares				$ 14.70
Options vested and become exercisable annually (in shares)				12,500
Options vested (in shares)	12,500
Total stock-based compensation expense | $										$ 22		$ 45
Options outstanding (in shares)	50,000									50,000		50,000
Unrecognized stock-based compensation expense | $	$ 257									$ 257		$ 257
Expected duration for recognition of stock based compensation expense (in years)												2 years 10 months 15 days
May 2019 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Employee options granted to purchase shares of common stock (in shares)	100,000
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares		$ 19.28
Options vested (in shares)	10,000
Total stock-based compensation expense | $										146
Unrecognized stock-based compensation expense | $	$ 732									732		$ 732
Expected duration for recognition of stock based compensation expense (in years)												3 years 10 months 21 days
Number of installments | installment		3
Executive Officer | March 2016 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Options canceled (in shares)														12,500
Options forfeited (in shares)													50,000	37,500
Total stock-based compensation expense | $													$ (59)	$ (19)
Employee | June 2018 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Employee options granted to purchase shares of common stock (in shares)			50,000
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares			$ 16.65
Options vested and become exercisable annually (in shares)			12,500
Options vested (in shares)	12,500
Total stock-based compensation expense | $										$ 7		$ 32
Options outstanding (in shares)	50,000									50,000		50,000
Unrecognized stock-based compensation expense | $	$ 247									$ 247		$ 247
Expected duration for recognition of stock based compensation expense (in years)												2 years 11 months 23 days
August 2019 | May 2019 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Options vested and exercisable in future periods (in shares)		15,000
May 20, 2021 | May 2019 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Options vested and exercisable in future periods (in shares)		75,000

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2019	Jun. 30, 2019	May 31, 2019
February 2019 Plan
Class of Stock [Line Items]
Shares repurchased and retired during period (in shares)	100,000
Stock repurchased during period, value	$ 1.6
May 2019 Plan
Class of Stock [Line Items]
Stock repurchased during period, value		$ 4.9
Number of shares authorized for repurchase (in shares)			1,000,000
Shares repurchased during period (in shares)		250,000

Segment Reporting and Signifi_3

Segment Reporting and Significant Customer Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2019segment
Segment Reporting [Abstract]
Number of reportable operating segments	3

Segment Reporting and Signifi_4

Segment Reporting and Significant Customer Information - Operating Results from Continuing Operations and Assets by Business Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues from External Customers and Long-Lived Assets
Revenues	$ 28,184	$ 28,075	$ 59,009	$ 58,959
Operating profit (loss)	2,424	1,078	7,395	4,735
Asia Pacific
Revenues from External Customers and Long-Lived Assets
Revenues	1,580	2,064	3,245	4,086
Operating profit (loss)	(1,783)	(1,472)	(3,418)	(3,212)
Europe
Revenues from External Customers and Long-Lived Assets
Revenues	8,682	8,500	19,255	18,780
Operating profit (loss)	584	441	2,721	2,407
North America
Revenues from External Customers and Long-Lived Assets
Revenues	17,922	17,511	36,509	36,093
Operating profit (loss)	3,623	2,109	8,092	5,540
Operating Segments
Revenues from External Customers and Long-Lived Assets
Revenues				58,959
Operating Segments | Asia Pacific
Revenues from External Customers and Long-Lived Assets
Revenues	1,557	2,073	3,192	4,115
Operating Segments | Europe
Revenues from External Customers and Long-Lived Assets
Revenues	9,133	8,527	20,187	18,859
Operating Segments | North America
Revenues from External Customers and Long-Lived Assets
Revenues	17,494	17,475	35,630	35,985
Intersegment revenues (expenses) | Asia Pacific
Revenues from External Customers and Long-Lived Assets
Revenues	23	(9)	53	(29)
Intersegment revenues (expenses) | Europe
Revenues from External Customers and Long-Lived Assets
Revenues	(451)	(27)	(932)	(79)
Intersegment revenues (expenses) | North America
Revenues from External Customers and Long-Lived Assets
Revenues	$ 428	$ 36	$ 879	$ 108

Segment Reporting and Signifi_5

Segment Reporting and Significant Customer Information - Revenue by Type and Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues from External Customers and Long-Lived Assets
Total revenues	$ 28,184	$ 28,075	$ 59,009	$ 58,959
Asia Pacific
Revenues from External Customers and Long-Lived Assets
Total revenues	1,580	2,064	3,245	4,086
Europe
Revenues from External Customers and Long-Lived Assets
Total revenues	8,682	8,500	19,255	18,780
North America
Revenues from External Customers and Long-Lived Assets
Total revenues	17,922	17,511	36,509	36,093
Travel
Revenues from External Customers and Long-Lived Assets
Total revenues	24,349	23,935	51,778	50,925
Travel | Asia Pacific
Revenues from External Customers and Long-Lived Assets
Total revenues	1,532	1,930	3,132	3,831
Travel | Europe
Revenues from External Customers and Long-Lived Assets
Total revenues	7,565	7,409	17,077	16,462
Travel | North America
Revenues from External Customers and Long-Lived Assets
Total revenues	15,252	14,596	31,569	30,632
Local
Revenues from External Customers and Long-Lived Assets
Total revenues	3,835	4,140	7,231	8,034
Local | Asia Pacific
Revenues from External Customers and Long-Lived Assets
Total revenues	48	134	113	255
Local | Europe
Revenues from External Customers and Long-Lived Assets
Total revenues	1,117	1,091	2,178	2,318
Local | North America
Revenues from External Customers and Long-Lived Assets
Total revenues	$ 2,670	$ 2,915	$ 4,940	$ 5,461

Segment Reporting and Signifi_6

Segment Reporting and Significant Customer Information - Revenue for Individual Countries that Exceed 10% of Total Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue, Major Customer [Line Items]
Total revenues	$ 28,184	$ 28,075	$ 59,009	$ 58,959
United States
Revenue, Major Customer [Line Items]
Total revenues	16,329	15,974	33,224	33,092
United Kingdom
Revenue, Major Customer [Line Items]
Total revenues	4,736	5,159	10,595	11,019
Germany
Revenue, Major Customer [Line Items]
Total revenues	2,791	2,632	6,432	6,291
Rest of the world
Revenue, Major Customer [Line Items]
Total revenues	$ 4,328	$ 4,310	$ 8,758	$ 8,557

Segment Reporting and Signifi_7

Segment Reporting and Significant Customer Information - Long Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets
Long-lived assets	$ 3,346	$ 3,790
United States
Revenues from External Customers and Long-Lived Assets
Long-lived assets	2,666	3,035
Rest of the world
Revenues from External Customers and Long-Lived Assets
Long-lived assets	$ 680	$ 755

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost		$ 1,158
Short-term lease cost		311
Variable lease cost		296
Sublease income		(84)
Total lease cost		1,681
Operating cash flows	$ 1,300	1,281
Operating leases	$ 997	$ 997

Leases - Lease Balance Sheet In

Leases - Lease Balance Sheet Information (Details) $ in Thousands	Jun. 30, 2019USD ($)
Assets:
Operating lease right-of-use assets	$ 14,110
Liabilities:
Operating lease liabilities	5,693
Long-term operating lease liabilities	10,788
Total operating lease liabilities	$ 16,481
Weighted average remaining lease term (years)	3 years 9 months 5 days
Weighted average discount rate	5.10%

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Liability Maturity (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
2019 Remaining	$ 3,023
2020	5,370
2021	3,954
2022	2,593
2023	2,096
Thereafter	1,158
Total lease payments	18,194
Less interest	(1,713)
Present value of operating lease liabilities	$ 16,481

Uncategorized Items - tzoo-2019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 1,314,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 1,314,000