TZOO - Earnings call transcript Q4 2020

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Operator

Hello, everyone. Welcome to the Travelzoo Fourth Quarter 2020 Financial Results Conference Call. [Operator Instructions] 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. Actual results could vary materially from those contained in the forward-looking statements. periodic actual statements differ company's are and and cause in from Form could SEC. XX-Q forward-looking the the described other that results materially to those XX-K Factors with filings in the Unless required no update future result any publicly events a company or statements, as new obligation whether to forward-looking of law, by the undertakes information, otherwise. earlier for company's earnings Please the this refer including morning. to important the information, company's release issued website press the will archive Relations Travelzoo recording on of made An Investor call at be conference travelzoo.com/ir. website available this

Now Travelzoo's it's XXXX quarter Su. overview and Accounting pleasure over my an to turn fourth Lisa Global its financial floor the results. Officer, Lisa to with the Bartel; will start CEO, Holger of Chief

Lisa Su

today. our the along available Thank at to follow remarks. Please prepared on presentation website travelzoo.com/ir. you, PDF and joining open our to operator, management format with welcome presentation those The in of Relations is Investor us you

which income. the calculation Slide $X.X are explains in income, provide Page was management items provides was, first non-GAAP opinion, operating see the evaluates the QX our decided revenue indicative forward can million X in in slide year-over-year We on non-GAAP better in business. number the improvement for operating on Starting of million. continued $XX.X not X, details you The that Travelzoo believe our information to non-GAAP it increase also how has On performance revenue is EPS line our as QX with to performance. this We X our to significant grow to in revenue operating from stabilizing income XXXX, we trend going our shows trend. is that XXXX and expectations. financial $XXX,XXX. shows Slide QX from in with our believe the changed excluded QX QX of QX. the expected see on

Slide X. continue to Let's now

in pushing cash success Our the voucher in development continued balances. our keeps sales positive

were America the consolidated revenue XX% year-over-year, $XX.X recorded and of cash, revenues in a restricted segment. changes, in cash recorded detail and million. segment our business December equivalents, cash by Europe North year-over-year. X X business and revenue decrease XX% the a FX XX, business segment As XXXX, of of decrease Slide neutralizing When

still and previous local from compared the X, that you of line lower expenses as in Non-GAAP in adjustments started resulted revenue sales coming advertisers summary, from advertising Slide to the see picked of process XX, of Slide On structure revenues optimization up as reduced in in at quick company. to stagnated the headcount in Travelzoo's QX, costs. the fixed marketing operating mostly our cost XX%, expectations. was were see quarter has QX and coming pandemic by While back adjustments make use our on the reach. you can beginning with have In

expect QX $XX the revenue Looking in $XX for to be million. ahead, range of we million to

we $XX.X million. approximately expenses, operating For expect

We expect at breakeven for QX to to result a or profit. close

Holger provide and Now additional insights. will information

Holger Bartel

turn Please XX. to Lisa. you, Thank Slide

X. We that Travelzoo spike are in responding more March from enthusiasts Slide for Minister As on started loved removal We to destinations last and of a since going in active Boris COVID-related during noticed Travelzoo who because app. Travelzoo will What trust in deals that a travel say sessions and become the for as the new forward. advantage U.S. by seeing slowly important of Travelzoo strongest is XX. U.S. we progressing vaccination We We high-quality their brand influences Prime as feel competitive members situation site we look our measured U.K., announced by the weeks. restrictions. time XX% affluent, and experiences. them. confidence clearly XXXX, consumer a the trend, as travel happened? more the We now see user Travelzoo travel. soon becoming see much wish in Travelzoo. see improves the active at In open strengthening, consumers buying in to line the purchases activity week particular, for Johnson and this X in quickly arrive are members they deals. members programs the Travelzoo trust

Finally, XX, on of we Slide overview an provide management's focus.

Club's and and continue deals; demand and for for travel; opportunities revenue; travel worry-free high-quality exceptional Jack's deals profitable flexible as We industry expand sourcing will grow the and profitability offer grow local members seize for to travel, Flight future the returns. subscription entertainment

back Now to the operator.

Operator

Capital line NOBLE Markets. [Operator the of Michael first Instructions] Kupinski from question of Our comes

Michael Kupinski

you in a a how then were couple pick the competitor And million eventually I up there? how subscribers what big you follow-ups. to able up? And competitor? And about the potential bit that X the Can that market exited And have was the little subscribers is might pick you talk the U.S.? the

Holger Bartel

when cannot so. I ready will information we topic this Michael, comment do but on more to this on today, issue are some we

Michael Kupinski

will the of talk a bit the to in position subscribers as the as subscribers of on Europe you you you a do can then COVID? little the step to feel kind of -- investment And of the mitigation Okay. -- gain about need to When that in efforts competitive and declines result balance waning kind kind there? of of accelerator

Holger Bartel

the as than travel European U.K. new in of subscribers the adding The a a more little quite Europe have in particularly of lot Unsubscribed decline in know, the Businesses Union, shut and are is slowly, there have subscribers bit actually Europe, been in result we restrictions. been rates Sure. of past. down. a in more lower the actually

we're just add and done because trend travel again. more see the have past. are the we resumes trend and we adding U.K. we the planning we up see reverse clearly in as right picking members But subscribers to now as decline many grow once net-net, this in strongly, not a and So small

Michael Kupinski

little looking there I have seemed new to I I And look promising you. know vehicle what and little you. than was your revenues could for bit a just for little revenue is mean Club. from you to if wondering me. because this And a you Got disappointing then Club you expected. Flight I if would Flight a Jack's Jack's we growth the talk might could forward growth accelerate about talk think about plans softer a

Holger Bartel

been a Flight future. successful -- a a Jack's obviously here. last our people matter as time. -- And It's grow are for think will just over Travelzoo that's we Same longer airline future XX come vouchers been Club We've on offering very of airfares with Yes. to tickets. the that deals In XX airline simply members have flexibility. the now back. of business, bit travel. we They then the But see as months. we've -- the selling more on flying, to right is in that on takes are soon focused solely revenue the little airline I that something lot

Michael Kupinski

if Club planning Jack's Flight moving were just Holger, remember, you airline on the And beyond travel. I

Has trying are happened you thought integrate? were there this Or to You your aspects to -- of point what Flight what at other that incorporate Jack's are not your into yet? Club. business doing yet

Holger Bartel

time We the our just Yes. Flight to Yes, the we when timing this right good it's members. Club U.S. do. started is Jack's introducing have to are And we to pick right. doing when

couple the months. to happen expect of next in we that So

Operator

from next question Jim Goss comes Our of with line the Barrington Research.

Jim Goss

that the it Jack's Or the the rest challenging deal? in you'd about on Club. follow-up to asset? pay some questions purchase wondering that stone the have impact I would cause if Flight of first it was cast situation related I'll First, write-downs to to price is from Michael's

Holger Bartel

please? want you question, answer this to do Lisa,

Lisa Su

Yes.

this put call a It's come that's out. have that thresholds. undeterminable. we At the discuss XX% option this they It we fixed So if based is expect something remaining will to But would later how depends XXXX that on time, number on at achieve on all. I the stone year. not certain purchase that results

Holger Bartel

But our choice just Jim, in be the is to clear, hands.

of the And full right fully. site though. it total acquire fully. are it this we have So to not XXX% consolidate consolidating will we Right now, then we Jack's

Jim Goss

Okay.

in it's staff, of But it's you to is know some on as cost I particularly expenses some one that might strategize might comment of how have growth And and costs sales this then helped wondering saved down you been -- those could your and might of structure. of linings that I you marketing. profile, if silver how be maybe and return that point? rebuilt to some the staffing. on imagine it's out resume the while have roll unpleasant I'm cut to Secondly,

Holger Bartel

are We the right. this anticipating, increases cost in year. not you Jim, structure Yes, any are significant

expenses particularly spend, subscriber for the pre-COVID but below be acquisition, We levels. far increase well will will marketing probably

Jim Goss

had America, be but resurgence seems even I reopening terms great impact the both if was and to key of it Okay. wondering you of in some controls. are leisure at from be there And to in within or, should and hear market in countries? travel, metrics Europe, looking have United that more other border States in strict how Europe North And which we finally, would guess, terms to evaluate insights Europe you that would travel any domestically see also, to I

Holger Bartel

well overall, really are travel. why here metric to gave how this What as into jump example. the to and And It's we back Yes. as confidence about that's companies I correct. probably see seeing consumers earlier consumer looking is other -- U.K. are

Boris not that that from there's as their Asia, but there in there's we that now pent-up the went is one-of-a-kind seeing that Places thought an particular, in immediate can after have Maldives, people general, travel more like travel much even other away, quite interested on are that the jump. when again, further Also more. bit. very Johnson are destinations speech soon they demand It's a cost for about one what by heard for might people clarity experiences before. experiences, safaris. clear in is, As U.K. And up revenues on companies hand, Southeast in we strong might

for and for this industry think good the will something be I entire us. is So that particularly

Jim Goss

later European any into you Okay. than in be that choices? XXXX people would or thinking and are we restrictive correct I sense thinking has am that restrictive going enable certain to how more been the borders? this -- continent or relief soon there's summer more make are to those And thinking you other contagiously before And

Holger Bartel

most see U.S. XX you traffic months recovered already interest quickly. higher Actually, ago. member the and than is

think France which middle we soon a the after. X I U.K., February. a expect to quite has don't bit accelerated since the is it's X of and come of Next Germany, months. matter Spain to And

I happen see as of revenue And think that on quickly. recovery Travelzoo more we will side the will well. the

Operator

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

Ed Woo

you subscribers. of You at this soon mentioned similar travel more that subscriber ramp add quarter growth done, plan to you as adding maybe in to end that to for of terms the on Is up next quarter your the or revenue growth? expectations marketing the expect that as are restrictions expenses maybe

Holger Bartel

us. for opportunity the on depends It

little because a members increased have months bit marketing we even acquisition U.S. now quarter right fact, able the to spend are last COVID. acquire XX in lower costs In than in before this we new or the at

these So opportunities, of of that's we them. will And we take good. it when -- see advantage

Ed Woo

same as opening are Great. things as At now, have least up? or subscriber been or for have increased lower about costs the

Holger Bartel

in right time. the we've Right doing we subscriber what now past. are In lower it's the much seen in not really U.S., the acquisition Europe, because they are than not

Ed Woo

way last Have to Or is, shift was in shift you you rise to of lot alternative in come back have hotels. houses. the my And to The a permanent think of do Great. it's want question a as don't a They in travel? more accommodations. down? of there want cases stay seen people People hotels discussion. stay

Holger Bartel

actually U.K. What faraway and hopefully, there's In little travel places strong more being in a the Very have a U.S., domestic bit more May, the and will after, really will restrictions travel. going quickly in the away on hotels interest in reopen. go we adventurous. to interest seen is

Operator

the last line question Silver comes Argus Steve with Our from Research. of

Steve Silver

from couple A me.

of noticed First, the just Asia, revenues about licensing that is obviously talking getting the there ground the with off out lag. coming I that

in of the directionally, insights QX the in region revenues really would of the in travel might any just of that the have curious even if forward? you of to I trajectory the at if sense some So QX, rebound which just give might transaction. just Asia was there's moving reflect know beginning terms was that

Holger Bartel

In Steve, previous are from so is announcement, countries. reporting that license our things agreements Japan, these as licensee you have we recovering. done in saw of some

China, great So level travel that keep the Southeast little it North in Southeast good. and the a and activity is in is in that America. of Australia, or not our in that's Singapore Asia, restricted licensee more But mind still activity than bit yet. And is Asia

Steve Silver

new of press lot sense as in Okay. opportunity changes just interest world? to release, your of get get that on larger players of whether going players or there start-up as the the opportunities the activity whether subsidiary. one, the might for marketplace maintaining Great. I'm trying moving the the given competition travel as given and the mentioned are share And a to well And smaller as has a then just a really to the divestiture leaving around if disruption U.S. present in market WeGo all in forward? in last market, lot you the might be a dominant the of

Holger Bartel

We still Club today opportunity would for Flight if the service a COVID subscription believe that It is than not think happened. that big I pandemic Jack's -- further and be had us. much really

that's still was paused, just big that but going So us a forward. for opportunity

well. us Tripadvisor announcements subscription seen about obviously make all as we've for a This programs. that, is opportunity great Beyond

them service to members exclusive already. offers because providing We services, valuable are and Travelzoo have provided we very a with it's our

free the forward, fees paying have the also services to But are for we in going members of service We many provided some future, completely probably believe, we have. implement over the there years. excellent that for opportunities for some

Steve Silver

execution the challenging very a on year. Congratulations in

Holger Bartel

Great. so Thank much, you Steve.

Operator

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

Holger Bartel

we you gentlemen, for support. a Have with and again next you to and thank speaking ladies forward quarter. time day. look Yes, great your And

Operator

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

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

Travelzoo (TZOO) 17 Mar 212020 Q4 Earnings call transcript