TZOO - Earnings call transcript Q4 2021

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Operator

Hello, everyone. Welcome to the Travelzoo Fourth Quarter 2021 Financial Results Conference Call. All participants have been placed in a listen-only mode and the floor will be open 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 -- pardon me. historical me conference you the to call are statements like made all slides the would statements Reform not this forward-looking Act of during and of Securities Safe company Harbor to made the that remind statements that and provision The are constitute Private pursuant Litigation facts presented XXXX. in of those vary could the in results contained materially from statements. Actual forward-looking described the in actual results to materially forward-looking Factors and statements in and with are company's that periodic cause could XX-Q the from differ XX-K Forms filings those other the SEC. the undertakes otherwise. forward-looking or of law, by required publicly a information, update new obligation any Unless whether result as company no events to future statements, press release earlier to morning. issued company's Please important refer information, earnings the this for website including company's the be of on recording this available Investor website will call conference at made Relations archived travelzoo.com/ir. Travelzoo the An

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

Lisa Su

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

number begin Let's Slide X. with

Here $XX.X million, our million you can QX from see $XX.X up year-over-year. XX% that revenue was

XXXX saw and more Our segments, in We details go year-over-year Slide a started about a short-term $XX.X in X, more recently operating resulted lifting we $X.XX. increase variant Europe. measures this North surge from have increase was our million. related loss COVID-XX share numbers during to the which Omicron in restrictions. countries two per QX and the business many We On related safety QX America significant as $XX.X into was million travel X.X that the million due effect a of to believe of and loss restrictions slight

revenue QX. had of We are last these three and for the significant operating path decline but of the are showing for on in years Both expected revenue the XXXX, segments income recovery.

Slide XX% million. XX% at XXXX non-GAAP and to income Europe is the from in million North operating net recovered on showing information million, America is our how an Our in operating to as loss we operating North and reserves, Travelzoo $X.X non-GAAP to On believe operating of better million. shows as $X.X a levels, segment the operating in which and of turn details by lowered that profit it our XXXX Slide provide are on QX excluded or improvement same in North is with XXXX, operating QX X has $X.X revenue the loss. business the operating business loss loss America Please million. the we cautionary increase was calculation X, which loss segment XXXX. performance. $X.X revenues, America $X.X income items an profit decided which Slide non-GAAP This With of QX slide the of provides our level evaluate are as has X. reported revenues explains now

level equivalents reached low in million by payables segment FX XXX,XXX up back. year-over-year. partners cash $XX the Slides have the have we see transition million Compared by cash relatively cash, you processor. that and utilizing have We costs. balance year period, December fixed million. switching fixed forward. in local more business to X costs X, future, prior while going of the a North grow. profitability in and We been consolidated decline of a able to picked our result this As is coming lower restricted higher to When Slide segment. the detail and almost by changes, during believe as started a to of had we efficient The should travel increased payment foreseeable segment believe revenues Europe increased both business $XX X the as X can types, receivables expected XXXX, revenue and our keep business pandemic, slight and cash and expected On combined deposits America XX, were revenue can and decreased merchant advertisers both

Looking we in to revenue currently forward, substantially higher return expect and QX. profitability a

trend our continue We of revenue. to a see of recovery

unexpected be could short-term. there However, the in fluctuations

Now to Holger. I over it turn

Holger Bartel

Thanks, Lisa.

more members, company's we know performance levels the continues the to its are as financial activity up. want XXXX. that interest expect to significantly see work also travel we Travelzoo in really improve us entertainment with So industry recovery. companies We And from and

focused Slide million XX XX you quite million mobile as media. travel X by team they're on. million followers X.X a active, are loved travel management are users really social they over Slide shows on So on who see members, XX, app they experiences. We're a we and enthusiasts as what affluent, will and we continue bit, have you

opportunity to to travel, the this time offers accelerate and revenue XXXX XX and industry exclusive, in million that grow First, local with in irresistible members entertainment, We of our area during advantage the provide we experiences. of take exceptional are members growth. are want offers to that want

We as pandemic. on want Flight this subscription for out to demand and we're as return will returns increase coming also travel of revenue. profitable more we And focus to growing of profitability Jack's Club's put profitability course,

questions. back looking forward So and operator to the we're to

Operator

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

Michael Kupinski

do the I in at to Just look have there? that cash. Number plan one, so when And a balances reconcile couple XX you How questions forth, you your a you look two liabilities payables of and higher. million merchant know here. little

Holger Bartel

want to this? address you do Lisa,

Lisa Su

payables XXXX, expect can merchant for profits the grow that And lot because a until XXXX. merchant out of and we we our XXXX. amounts, go fund those can payables out we even Michael, to definitely XXXX,

more a of they're nature. so long-term And

Michael Kupinski

a And I fall, a cruise X,XXX on only were people on had know, ship there last XXX I went that capacity.

first bookings But higher. I now understand on pricing is that bookings up wondering And should ships about the you I you're the talking So up in cruise kind going even was significantly are know can are quarter. of, dramatically that revenue I'm us surprised I've you significantly. if that issues the quarter be a learned give and nicely. had not of that that I some just sense And

the type quarter add You comp pretty was year. bit you of last of more a just easy little first first in the a kind Difficulty] I had wondering [Technical color if on quarter. of first can

Lisa Su

bit a up broke little You there.

Holger Bartel

Yes. things of Michael, quite -- sure, dramatically beginning I of are demand. February say end we that since since the more January, seeing much improved for would

February booking refunds partners members our more gone a versus down seeing January. are have quite with bit We in

it's more bit absurd. with a make to how ago, we higher the but at specific year. to last optimistic, this will quite than a be us. I'm versus year world And much any around higher this we're be only yes, time, year definitely So, as quite that hesitant but expect revenues prediction QX will

Michael Kupinski

North rebound Europe rebound tell flavor much on point? because seeing you of North you you about of of Holger, versus Europe Or Europe? issues us Europe? in seeing as you're kind not as the can little by the America, America North geopolitical can And give a as the America first that going versus me bit this you a Are at quarter, go into

Holger Bartel

countries of both the Atlantic, HTC that the in are and optimism and in. in U.S. the the we Canada, sides on We both European see all

Michael Kupinski

in than expected. kind little step of a and expected? higher sales know going you're Or up. to the revenues come questions, of marketing than as strong in looking I the where bit seeing give Any seems last a a kind of flavor you was a as one not I what little you're it just was Is of, for? that came I it that like us variable that thoughts? you bit if can And that pull cost higher to back

Holger Bartel

bit they secondary this really extraordinary than too absolutely much year. first, positive didn't have drove to over. more QX increased of were that a repeat. we an we're spend there expenses we detail, which in not what expected revenues, Well It's a have But it much up item into couple want and go they because in want higher expense and We control to QX, about actually we're grow members right. over we but

Michael Kupinski

you. and XXXX. here's Well, a Thank to great. Okay, better much improved

Operator

Argus from from Our the Silver comes next question Steve Research.

Steve Silver

question more nature. strategic in My is

prior the Club. And towards guys throughout you shifted mix the pandemic, Flight flow. the revenue pandemic, to you acquire cash Given Jack’s vouchers that to preserve

be about additional core the just reliant been disrupted has fact any and from business as there to the might to by potential so get given in that So continue you're with rubber and less a that Europe. be geopolitical you new may impact the to tension pandemic? prior to trying proactive conditions on to to available normalizing now thinking COVID-XX, sense the for how travel I

Holger Bartel

right our hit, there the [indiscernible] time in bit Jack’s Yes, the after of Jack’s about Well, a beyond Club was in is you we tell and Flight a course. because that end interest we unfortunate pandemic the changing. little the Flight Club services of acquired that lot acquired that in wasn't control,

We So we that opportunity years. Flight really as great Club. last for never really opportunity the Jack’s XXXX two had see over a

recall, the U.K. primarily opportunity they're they might and to you As active U.S. have in the in expand a big

one. first So that's the

quite it the actually is previous was advertising that revenue across board. much, revenue is was business the would much the the lower bit. from voucher in shifting in the came than a QX, side, much, I vouchers On quarters, say up

least, not more course, this fees. in to scale area will of bit continue subscription a of members start then but the we last a on year. will We as experimenting revenue opportunity that And

Operator

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

PatSholl

wanted more This your general advertising was also a I kind other of of questions is of you it and Europe. the to can side, just I maybe couple break territories? revenues. be Pat I And just just Jim. take merchant of share follow-up the Europe the kind guess for of could Eastern on in on on if offset payables sides by really wondering to out was on exposure past kind

Holger Bartel

we the Sure. like we included so was members last the remove it and I Russia, Europe, members what about Eastern and then Europe, affected. to about that are U.S., to countries the the operate I Germany, Lisa one France, not Actually speak Austria, side, Eastern also and Switzerland, Also, first minimal. very it achieved. offers no Spain can in and some was merchant less than our was other handful. forth, were Eastern speak Really many On payables. the are [indiscernible] we're we a and trips Europe. Italy, is surprised, our started was week in but exposure -- don't any U.K., have not there in Europe can in that

other we cancellations this morning if refunds hand, we the On voucher are members. just see seeing or U.S. more particularly to actually checked from

seven last hearing decreased days, refund what in not any and the are about in As in of they actually war are Europe, seeing bit. a the even change little rates result a trend we

still to So are paddle think happened. they people I on are where waiting see what's

travel So that to don't far, members see significantly are changes plans. we their making

Lisa Su

that. would don't And Eastern payables I also of our merchant say echo that Europe. most would go I into

And the so would seen that cause haven't any patterns redemptions company. any concern for I

PatSholl

the -- continue of the for lower of maybe reasons was compensation some if And kind profitability productivity just guess, and headcount to I the higher into the, employee the I operate drive to base, as go then more keep guess I could on revenues on you kind of improve? efficiently worry, of

Holger Bartel

and restructuring result processing. a mainly It's of business the our

So we see we get on this were. We fixed we increases to expenses where year don't versus earlier. don't as see any

as [indiscernible] affect side, rates goes it general more are platform Mike general, our our the that asked the acquisition. purchasing plan base. On spend cost more again it, really But are up, doesn't advertising in and partners and debit we to members fixed revenue with we about and increasing

Operator

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

EdWoo

people In updating? as of, people optimistic do travel you coming just more feel Do Omicron about are think much terms how summer? is

Holger Bartel

we consumers members general to closer trend booking a more bit all their -- a our little that In travel date. see to probably travel members and

I feel, they now. can right travel So

go right So weeks. the in let now me next two

offering Travelzoo we cancel a travel summer, but of In consumers has course But good ability also not or we really see big have for yes, overall entire response response that's providing the terms that to the to of trips. to refund shifted flexibility. these towards industry offers just related,

but that's good So some destinations about crowded then are Travelzoo. already actually quite what's becoming

to together our we about we of We our go was nonstop on are we of XXXX. Today, are on, created telling our we ship members are instead Michael cruise have that telling U.S. XXX passengers specific only partner. exclusively are members the a actually telling have destinations crowded, Madeira in with travelers so for a members that not that who to flight, members our

first the didn't last And had destination our flight this a members think reporting a Madeira, lot on even for few who those in time nonstop you a wonderful New that's So fly time are can went about. and from back they York of to months that there. that the

are travel be industry destinations, might be another able and that less our ideas, recreate from respect for the us do overcrowded we new shift that destination in members we So can might demand in be about that one one service found. tell really that known to new to great we

Ed Woo

is And then my to travel some open seeing capacity, hotels hotel up on last of hotel seeing bigger the them question a capacity? shortages. Are particularly labor or improve and you

Holger Bartel

In little on me XX% over Again, hotels allows plenty in shortages. XX% bit hotel hotels for to those allows Yes a that but my you labor even definitely provide XX%. the where keep and rates much say, I there's hotels occupancy good and heard it's don't us to to and and rate cases, are destinations I go haven't some occupancy their rates higher see deals, just destinations. deliberately a to that other of look, experience about hand, other these was wish no, story some and me at a two-sided XX%, significantly tricky that hotel find high. want

this think April I in had think that don't overall, started. to easing I've would pandemic normal getting when in bit the normal. XXXX are back I most U.S., a much things since seen more in whole are that we the issue the I more industry. Probably hotel say Europe they

Operator

Thank does program. Bartel the any program hand back you. I'd to to this Mr. session remarks. for This question-and-answer today's of like Holger conclude further

Holger Bartel

dialing with nice better next a your time hopefully ladies with support. and no for day. gentlemen, Have further again in no, Yes, speaking remarks. you and But to you thank and we for look much And so numbers. quarter forward

Operator

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

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

Travelzoo (TZOO) 3 Mar 222021 Q4 Earnings call transcript