TZOO - Earnings call transcript Q3 2018

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Operator

Hello, everyone. Welcome to the Travelzoo Third Quarter 2018 Financial Results Conference Call. All participants have been placed in a listen-only mode and the floor will be opened for questions following the presentation. Today's call is being recorded. The Company would like to remind you that all statements made during this conference call and presented in the slides that are not statements of historical facts constitute forward-looking statements and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. materially contained vary statements. the could results from in those forward-looking Actual Company's XX-Q that to the statements the the results cause SEC. are XX-K materially in Factors actual in differ could filings other and periodic from those described forms with and forward-looking forward-looking information, Unless any future otherwise. the events update law, a as by undertakes no or whether required to result obligation Company publicly statements, of new important information, issued Please including Company's refer website to release morning. the earnings earlier for this Company's press the this will call of available made website Travelzoo www.travelzoo.com/ir. the recording on archived An conference at be Relations Investor Travelzoo's overview Chief Financial Officer, results. Glen quarter Ceremony, will start analysis with the an of financial third

Glen Ceremony

Thank you, today. us Jonathan. joining welcome And of you those to

For quarter on an the review update will and today's business provide our I initiatives. you financial our format third then of call, results Holger will

will along prepared with our for session. our Thereafter, the our call follow question-and-answer management to we Please open presentation remarks. open

key turn quarter. begin, X, Our which Relations website. presentation To our highlights our Investor is to Slide available financial let's for on provides the

Our revenue and currencies. grew constant up million, in X% nominal $XX.X year-over-year to in X% terms for the quarter

share earnings $X.XX, Our a per of $X.XX. diluted quarter the year-over-year for increase was

to Europe our year-over-year Pacific for followers North of Our a our representing of Asia margins Slide media which and financial used X%, million, to year-over-year growth Asia core second over Revenue North the Slide businesses increase gets X XX.X much downloads relatively increased up operating quarter stable million, in income and are be year-over-year are markets. of Revenue offset a was America in and was core of company the representing $X bills $X.X Europe or revenue constant is in investments million. America details XX% losses overshadowed Furthermore, the in grow. continue operating in mobile resulting two at XX%. by Pacific, $XX.X million our members was often tax social consecutive XX% Asia increase Revenues, Pacific EPS in smaller in X, by our overall. segment. This and app Company's in and and to global number Revenue performance growing our at year-over-year a profits in in cannot highlights for margins our in Europe. currencies. years.

to and to revenue Pacific We Asia our of are profitability our revenue two further core X, looking affected of of few off took and the income in the Yet, The advertisers of year-over-year our take slides during loss Revenues in taken million. next America our next our increased activity to $XX.X over was lowered regulators debt and quarter. growth growth from provision, Slide members, our North due large also by North products bad was increasing several three percentage of detail This partners. America each shows for customer, by segments. years. cover increased by EPS. advertising the which points

for operating operating the third approximately in products tax operating these operating result for in X, were Europe jurisdictions. loss Slide Slide million in America $XXX,XXX, to consecutive improved Turning slightly margin. profit of XX $XXX,XXX, increased revenue this represents $XXX,XXX a net shows $XXX,XXX. percent operating increased the Pacific's Slide generated of On $X.X the Asia by revenue total Slide tax was North from was revenue $X.X separate Income by $X.X of the losses Asia Cost of and productivity are revenue North quarter on of of which million, Asia that Asia operating of resulting were presents by income. profits Europe quarter. was Europe of income and X The core revenue our up year-over-year. offset and of This X. $XXX,XXX. of America. several year-over-year XX a $X was expenses revenue Pacific profitability, with XX%. no year-over-year income tax and segment taxes million, was and by decreased breakdown revenue driven and our grew local shows from down markets. Europe as income. provides Operating America Slide benefit given profit by as XX.X%. segment. for is North Slide of a our growth, flat year-over-year a $X.X improvements percent Operating XX margin as million improved to operating expenses cost our combined of generated revenue revenue million which of

Moving on XX. to Slide

solid We use repurchases. for stock position cash our to continue

financial to Turning to improve travel the our profits in products, and help marketing. investment generate further our core by driven to and increased Slide performance, XX. In products summary, continues

Our overall revenue in with continued regions. revenue travel increasing growth all

We operating continue maintained our our have us and we cash continued our enabling investments our to products, Asia repurchases. generate to continue profit despite in and position stock solid

following. the expect we forward, Looking

in fourth positive on from offerings as we experienced changes quarter several and our focus revenue the last a in XXXX, products revenue travel performance the with better we Pacific. expect our Asia quarters of year-over-year For over expanded increasing have in

our planning maintain as well as increase are marketing our Asia Pacific. spend We investments to in

equity pick addition, In plan of the investment. our expected we to losses portion our up from

we to our members well in we by on next income, future as you Pacific quarter growth. maintain drive to audience and XXXX. will underway and We going growth expect year. summary, investments, Holger products such as operating that selectively to update our into further fourth various support initiatives we in to in these the bookings Asia earnings So our as aim in given purchases continue into expect our areas will business while positive reinvest trends year-over-year and of

continuously steps increase to control non-investment area will our to take cost We to continue also productivity.

Travelzoo's Holger provide Now will an on update you business initiatives.

Holger Bartel

the America and markets community. solid into North paying focused and We're our in membership profitable global resumed, pleased Hi, margins larger, operating investments off. has to even build in grow On in faster to activity member technology revenues and and underway, our With many accelerated in that goal countries Revenue franchise Slide and we initiatives in everyone. travel growth. are a just XX, increase Travelzoo which that our to organization XXXX. start making and invest will with in other are much we like would I highly we're will progress believe in revenue and we at and Europe, growth two looking continue into China highlight to Asia-Pacific, product pace

to that every exclusive members launched have we hundreds the the month live global complete of who our We ability hotel the trips. the deals technology negotiate world that as around book also offers

package example, several includes to times hotel he is and that rate, just trip not book she if are more member a Rome, that the found or only have special activities. receives a local London when, airfare likely but in for a a for hotel hotels, We in offer a a offer

launched We a have bundle We hotels package times we up if offering. seen if Germany end them members airlines than technology more that offer. hotel-only them we've towards also a are found trips tell we their to and into and five of the to rates in better willing us this book about give QX, just

in beginning Europe in of this select next now rolling and quarter this in out America the North We technology at markets year. are

a in and with tour become travel various not in the ourselves, partners established are experienced operator markets are industry. looking We instead to we working

make take more create leveraging better of a are to simple members in merely way a a to convenient We technology offering partnerships for global deal. – fantastic and these to and our advantage the

Travelzoo side, On our opportunity do. base, of as have the the current and about are Many large up around consumers we us highly And our know shows what beef further a existing members many loyal, marketing we do that to but build beyond don't visibility have marketing either still know need we not grow to our to our teams started research member world. we scale. or

strong We an way with are and to and reach. reach effective out brands audiences finding cost-efficient that partnerships build our new are

few needed organization a that growing I'd We are neither Lastly, efforts our in are assist for from global continued for our nor reach to business Asia-Pacific. Asia-Pacific the us. like to profitability. understand words More acceptable revenue about say not losses investors with to

accelerate the company our this are will in us grow rapidly to for XX, offers in double revenues large To are that growth be Travelzoo's Asia-Pacific functions number launched So market. summarize, to and exclusive Europe There joined XXXX. an to years. be project, staff aiming be of will the experienced key will goal we as demand. available top executive project scale internally want we who next by on Slide three lead to on from have a the in called Travelzoo path It will America to look and execution. into particularly in who business the clear team opportunity the partnerships leadership, of manage The also more that project allow and few line profitability members outline to will maintain opportunities, various China, well. quality a to know increase we North We our continues

said years and earlier, Asia-Pacific will margins. the have and aim profit two even to to while positive do we in we way, next operating this increasing will investments, past, this take in done require as in some we smart a while I maintaining As the margins

XX, business. former new Before We His as like is retained with on would Interim an Financial all was change we Travelzoo's Glen in move onto like years has to the be very for starting an announcement CFO XXXX The October from for day our After management Lee different Ceremony, make to CFO, a Chief a Lee senior our challenge is industry. while CFO in serving the search new performed. the contributions Travelzoo, I'd taking Glen XX. Q&A, Officer to thank October to his Wayne company in company Mr. will exciting last at team. XXXX. many

and Su, the Su Accounting October on Controller the President XX, will addition, In Vice Officer. Controller, President company's become as since company's served the has May Principal Ms. and Ms. Vice company's XXXX. Lisa

Now back operator. to the

Operator

you. now The [Operator floor is Thank Instructions] open you. questions. for Thank

the Our first from of Ascendiant Woo question comes Capital. line from Ed

please. question Your

Ed Woo

that outlook What's end taking just my positive into I of was year? Yes, what's industry doing we question. for heading travel the maybe is thank And into now? how assume the season. of sense a pretty you overall summer the your your year next I travel had wondering and

Holger Bartel

actually you're was are is I we global season more industry good. the others is quite and the that popular What busy. increasingly Hi, in destinations Travel becoming probably right, as are Ed. seeing, think increasing. Yes, well,

during the New London, same the point are time, like and – more see year, there. difficult hotels, it's at to time increasing. going Rome, sometimes places at at more seasonality but And even some we So get of tourists York

York, I with. in for the think us destinations at looking travel and that's because fill So if more there we have. that is that of more to is rooms we are empty that not familiar lot But that's they news are of member New And the good a January people to February. trend and to actually look other type

popular most or others like They're the Our of to the places destinations adventurous. Azores, They go places. like would members to. to been Iceland have been a lot to that haven't

go inspiring think a So works to they towards about trend I thought great our us to before. haven't that places that's that members

Ed Woo

Great. And good another issues? year heading year? next what's outlook Do it think is your think you any be there Or concerns you with should macro next year? into

Holger Bartel

Based past, often things things would as on seeing But trend are will travel will what grow. know, change the continue. we – I to sometimes year, that say the next we all happen continue behaviors. today, Travel in

grow So But if it continuing we remains to it's year. very like see next to predict. difficult is everything travel today,

Ed Woo

And good your Thank my you. Great. answering in new Glen, you for question. luck thank wish you opportunity. Well,

Glen Ceremony

Thanks it. Appreciate Ed.

Operator

Thank you.

call the turn back Holger I'll to Okay. Mr. Bartel. now

Holger Bartel

forward into dialing to Bye. look today's again, We Thank speaking for with time. you conference you, next call.

Operator

Thank this you. gentlemen, today's and teleconference. concludes Ladies

your this at a time. day. pleasant lines Have may You disconnect

Travelzoo (TZOO) 24 Oct 182018 Q3 Earnings call transcript