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0001133311FALSETravelzoo00011333112025-02-252025-02-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
____________________________________________________
FORM 8-K
____________________________________________________
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  February 25, 2025
____________________________________________________

image0a212a14.jpg
(Exact name of registrant as specified in its charter)
____________________________________________________
Delaware 000-50171 36-4415727
(State or Other
Jurisdiction of
Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
590 Madison Avenue, 35th Floor
New York, New York
 10022
(Address of principal executive offices)
 (Zip Code)
 
Registrant’s telephone number, including area code +1 (212) 516-1300
(Former Name or Former Address, if Changed Since Last Report)
____________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

☐       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value TZOO The NASDAQ Stock Market



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
                                         Emerging growth company    ☐    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐ 



Item 2.02.         Results of Operations and Financial Condition.
 
On February 25, 2025, Travelzoo (the "Company") reported its fourth quarter 2024 financial results. A copy of the Company’s press release containing this information is being furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.
 
The information furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
 
Item 7.01.         Regulation FD Disclosure

See Item 2.02, “Results of Operations and Financial Condition,” above.

In addition, a copy of the supplemental earnings presentation discussed during the Company’s earnings call is attached to this report on Form 8-K as Exhibit 99.2 and incorporated herein by reference.


Item 9.01.        Financial Statements and Exhibits.
(d)           Exhibits.  See Exhibit Index



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TRAVELZOO
Date: February 25, 2025 By: /s/ Lijun Qi
Lijun Qi
Chief Accounting Officer



EXHIBIT INDEX
Exhibit Description
Press Release, dated February 25, 2025.
Supplemental investor presentation provided in connection with the fourth quarter 2024 earnings call of Travelzoo, dated February 25, 2025.

EX-99.1 2 ex-99112x31x20248xk.htm EX-99.1 Document

Exhibit 99.1
travellogo11062017a13a.jpg
Travelzoo
590 Madison Avenue
35th Floor
New York, NY 10022

Investor Relations:
ir@travelzoo.com

FOR IMMEDIATE RELEASE

Travelzoo Reports Fourth Quarter 2024 Results

NEW YORK, February 25, 2025 — Travelzoo® (NASDAQ: TZOO):

•Revenue of $20.7 million, down 2% year-over-year
•Consolidated operating profit of $4.9 million, up 8% year-over-year
•Non-GAAP consolidated operating profit of $5.3 million
•Cash flow from operations of $7.7 million
•Earnings per share (EPS) of $0.26

Travelzoo, the club for travel enthusiasts, today announced financial results for the fourth quarter ended December 31, 2024. Consolidated revenue was $20.7 million, down 2% year-over-year. In constant currencies, revenue was $20.6 million. Travelzoo's reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members, and membership fees.

Net income attributable to Travelzoo was $3.2 million for Q4 2024, or $0.26 per share, compared with $0.27 in the prior-year period. Net income attributable to Travelzoo from continuing operations was $3.2 million for Q4 2024, or $0.26 per share, compared with $0.24 in the prior-year period.

Non-GAAP operating profit was $5.3 million. Non-GAAP operating profit excludes amortization of intangibles ($93,000), stock option expenses ($0.4 million). Please refer to “Non-GAAP Financial Measures” and the tabular reconciliation below.

“We will continue to leverage Travelzoo's global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more Club Offers for Club Members,” said Holger Bartel, Travelzoo's Global CEO. “Travelzoo members are affluent, active, and open to new experiences. We inspire travel enthusiasts to travel to places they never imagined they could. Travelzoo is the must-have membership for those who love to travel as much as we do."
1/10


Cash Position
As of December 31, 2024, consolidated cash, cash equivalents and restricted cash were $17.7 million. Net cash provided by operations was $7.7 million.

Travelzoo North America
North America business segment revenue increased 1% year-over-year to $13.9 million. Operating profit for Q4 2024 was $4.6 million, or 33% of revenue, compared to operating profit of $4.0 million in the prior-year period.

Travelzoo Europe
Europe business segment revenue decreased 13% year-over-year to $5.4 million, caused primarily by fluctuations in Germany. In constant currencies, Europe business segment revenue was $5.3 million. Operating profit for Q4 2024 was $159,000, or 3% of revenue, compared to operating profit of $832,000 in the prior-year period.

Jack’s Flight Club
Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. As the number of premium subscribers continues to grow, revenue increased 19% year-over-year to $1.3 million. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q4 2024 was $208,000. Non-GAAP operating profit excludes amortization of intangibles ($58,000) related to the acquisition of Travelzoo’s ownership interest in Jack’s Flight Club in 2020.

New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $19,000. Operating loss for Q4 2024 was $36,000.

In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor.
2/10

Travelzoo recorded $7,000 in licensing revenue from the licensee in Japan in Q4 2024. Travelzoo recorded $12,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q4 2024. Licensing revenue is expected to increase in the future.

Reach
Travelzoo reaches 30 million travelers. This includes Jack's Flight Club. Comparisons to prior periods are no longer meaningful due to strategic developments of the Travelzoo membership.

Discontinued Operations
In March 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations.

Income Taxes
A provision of $1.5 million for income taxes was recorded for Q4 2024, compared to an income tax expense of $1.6 million in the prior-year period. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its actual tax liability for 2024.

Share Repurchase Program
During Q4 2024, the Company repurchased 135,792 shares of its outstanding common stock.

Looking Ahead
For Q1 2025, we expect revenue to increase at a higher pace. The pro rata portion of membership fee revenue will already add 5% incremental growth this quarter. This percentage is expected to increase over subsequent quarters, as membership fee revenue is recognized ratably over the subscription period, we acquire new members, and more Legacy Members become Club Members. For the whole year, we expect substantially higher revenue growth. Over time, we expect profitability to further increase as recurring membership fee revenue will be recognized.

In 2024, we introduced a membership fee for Travelzoo. Legacy Members, who joined before 2024, were exempt from the fee during 2024. Legacy Members represent more than 95% of Travelzoo's reach. In 2025, Legacy Members continue to receive certain travel offers. But Club Offers and new benefits are only available to Club Members. We generally see Legacy Members being excited to become Club Members.

3/10

Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: amortization of intangibles, stock option expenses and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

Conference Call
Travelzoo will host a conference call to discuss fourth quarter 2024 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to
•download the management presentation (PDF format) to be discussed in the conference call
•access the webcast


About Travelzoo
We, Travelzoo®, are the club for travel enthusiasts. We reach 30 million travelers. Club Members receive Club Offers personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with thousands of top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.

Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
4/10

Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
  Three months ended Twelve months ended
  December 31, December 31,
  2024 2023 2024 2023
Revenues $ 20,678  $ 21,149  $ 83,902  $ 84,477 
Cost of revenues 2,761  2,698  10,469  10,934 
Gross profit 17,917  18,451  73,433  73,543 
Operating expenses:
Sales and marketing 8,256  8,496  34,466  37,774 
Product development 644  580  2,407  2,113 
General and administrative 4,183  4,896  18,058  18,084 
Total operating expenses 13,083  13,972  54,931  57,971 
Operating income 4,834  4,479  18,502  15,572 
Other income (expense), net (86) 398  588  1,541 
Income from continuing operations before income taxes 4,748  4,877  19,090  17,113 
Income tax expense 1,484  1,618  5,404  5,105 
Income from continuing operations 3,264  3,259  13,686  12,008 
Income from discontinued operations, net of tax —  465  —  460 
Net income 3,264  3,724  13,686  12,468 
Net income attributable to non-controlling interest 64  5  118  102 
Net income attributable to Travelzoo $ 3,200  $ 3,719  $ 13,568  $ 12,366 
Net income attributable to Travelzoo—continuing operations $ 3,200  $ 3,254  $ 13,568  $ 11,906 
Net income attributable to Travelzoo—discontinued operations $ —  $ 465  $ —  $ 460 
Income per share—basic
Continuing operations $ 0.27  $ 0.24  $ 1.08  $ 0.80 
Discontinued operations $ —  $ 0.03  $ —  $ 0.03 
Net income per share—basic $ 0.27  $ 0.27  $ 1.08  $ 0.83 
Income per share—diluted
Continuing operations $ 0.26  $ 0.24  $ 1.06  $ 0.80 
Discontinued operations $ —  $ 0.03  $ —  $ 0.03 
Net income per share—diluted $ 0.26  $ 0.27  $ 1.06  $ 0.83 
Shares used in per share calculation from continuing operations—basic 11,831  13,873  12,594  14,897 
Shares used in per share calculation from discontinued operations—basic 11,831  13,873  12,594  14,897 
Shares used in per share calculation from continuing operations—diluted 12,358  13,946  12,852  14,964 
Shares used in per share calculation from discontinued operations—diluted 12,358  13,946  12,852  14,964 
5/10

Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 31,
2024		 December 31,
2023
Assets
Current assets:
Cash and cash equivalents $ 17,064  $ 15,713 
Accounts receivable, net 12,825  12,965 
Prepaid income taxes 736  629 
Prepaid expenses and other 1,148  1,461 
Total current assets 31,773  30,768 
Deposits and other 374  1,115 
Deferred tax assets 3,380  3,196 
Restricted cash 675  675 
Operating lease right-of-use assets 5,655  6,015 
Property and equipment, net 423  578 
Intangible assets, net 1,498  2,091 
Goodwill 10,944  10,944 
Total assets $ 54,722  $ 55,382 
Liabilities and Equity
Current liabilities:
Accounts payable $ 6,134  $ 4,546 
Merchant payables 16,294  20,622 
Accrued expenses and other 3,404  3,658 
Deferred revenue 6,545  2,044 
Income tax payable 1,619  766 
Operating lease liabilities 2,472  2,530 
Liabilities from discontinued operations 28  24 
Total current liabilities 36,496  34,190 
Long-term tax liabilities 7,851  4,681 
Long-term operating lease liabilities 5,646  6,717 
Other long-term liabilities 376  911 
Total liabilities 50,369  46,499 
Common stock 118  136 
Tax indemnification (9,537) (9,537)
Note receivable from shareholder —  (1,753)
Additional paid-in capital —  439 
Retained earnings 14,284  19,508 
Accumulated other comprehensive loss (5,327) (4,607)
Total Travelzoo stockholders’ equity (deficit) (462) 4,186 
Non-controlling interest 4,815  4,697 
Total stockholder's equity 4,353  8,883 
Total liabilities and equity $ 54,722  $ 55,382 
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Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
  Three months ended Twelve months ended
  December 31, December 31,
  2024 2023 2024 2023
Cash flows from operating activities:
Net income $ 3,264  $ 3,724  $ 13,686  $ 12,468 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 170  476  907  1,893 
Stock-based compensation 405  381  1,645  1,568 
Deferred income tax (476) 159  (515) 48 
Loss on long-lived assets —  —  —  10 
Net foreign currency effects 132  (115) (33) (62)
Provision of loss (net recoveries) on accounts receivable and refund reserves (81) (72) 40  (1,016)
Changes in operating assets and liabilities:
Accounts receivable 113  (2,231) (145) 1,086 
Prepaid income taxes 354  61  (107) 1,189 
Prepaid expenses, deposits and other 319  1,603  950  3,835 
Accounts payable 1,286  1,181  1,716  (523)
Merchant payables (709) (3,338) (4,057) (12,095)
Accrued expenses and other (661) (665) (289) (685)
Deferred revenue 2,767  (785) 4,557  (191)
Income tax payable 264  456  857  749 
Other liabilities 507  547  1,888  2,401 
Net cash provided by operating activities 7,654  1,382  21,100  10,675 
Cash flows from investing activities:
Proceeds from note receivable —  103  —  216 
Purchases of property and equipment (48) (38) (177) (255)
Net cash used in investing activities (48) 65  (177) (39)
Cash flows from financing activities:
Repurchase of common stock (2,324) (5,015) (18,929) (16,781)
Proceeds from note receivable and account receivable from shareholder 1,920  3,000  1,753  3,000 
Exercise of stock options and taxes paid for net share settlement of equity awards (1,195) (70) (1,787) (369)
Net cash used in financing activities (1,599) (2,085) (18,963) (14,150)
Effect of exchange rate on cash, cash equivalents and restricted cash (390) 445  (605) 525 
Net increase (decrease) in cash, cash equivalents and restricted cash 5,617  (193) 1,355  (2,989)
Cash, cash equivalents and restricted cash at beginning of period 12,106  16,582  16,389  19,378 
Cash, cash equivalents and restricted cash at end of period $ 17,723  $ 16,389  $ 17,744  $ 16,389 
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Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
Three months ended December 31, 2024 Travelzoo North
America		 Travelzoo Europe Jack's Flight Club New Initiatives Consolidated
Revenues from unaffiliated customers $ 13,834  $ 5,508  $ 1,317  $ 19  $ 20,678 
Intersegment revenues 74  (68) (6) —  — 
Total net revenues 13,908  5,440  1,311  19  20,678 
Sales and marketing expenses 4,641  3,110  505  —  8,256 
Other expenses 4,689  2,171  656  55  7,571 
Operating profit (loss) $ 4,578  $ 159  $ 150  $ (36) 4,851 
Other loss, net (86)
Income from continuing operations before income taxes $ 4,765 
Three months ended December 31, 2023 Travelzoo North
America		 Travelzoo Europe Jack's Flight Club New Initiatives Consolidated
Revenues from unaffiliated customers $ 13,534  $ 6,354  $ 1,106  $ 155  $ 21,149 
Intersegment revenues 247  (90) (157) —  — 
Total net revenues 13,781  6,264  949  155  21,149 
Sales and marketing expenses 4,899  3,111  423  63  8,496 
Other expenses 4,912  2,321  745  196  8,174 
Operating profit (loss) $ 3,970  $ 832  $ (219) $ (104) 4,479 
Other income, net 398 
Income from continuing operations before income taxes $ 4,877 

8/10

Twelve months ended December 31, 2024 Travelzoo North
America		 Travelzoo Europe Jack's Flight Club New Initiatives Consolidated
Revenues from unaffiliated customers $ 54,968  $ 24,113  $ 4,714  $ 107  $ 83,902 
Intersegment revenues 124  (42) (82) —  — 
Total net revenues 55,092  24,071  4,632  107  83,902 
Sales and marketing expenses 19,748  12,539  1,898  280  34,465 
Other expenses 19,461  8,451  2,690  337  30,939 
Operating profit (loss) $ 15,883  $ 3,081  $ 44  $ (510) 18,498 
Other income, net 588 
Income from continuing operations before income taxes $ 19,086 
Twelve months ended December 31, 2023 Travelzoo North
America		 Travelzoo Europe Jack's Flight Club New Initiatives Consolidated
Revenues from unaffiliated customers $ 54,837  $ 25,291  $ 4,145  $ 204  $ 84,477 
Intersegment revenues 1,243  (1,270) 27  —  — 
Total net revenues 56,080  24,021  4,172  204  84,477 
Sales and marketing expenses 22,029  13,636  1,788  321  37,774 
Other expenses 18,797  9,068  2,407  859  31,131 
Operating profit (loss) $ 15,254  $ 1,317  $ (23) $ (976) 15,572 
Other income, net 1,541 
Income from continuing operations before income taxes $ 17,113 



9/10

Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)

  Three months ended Twelve months ended
  December 31, December 31,
  2024 2023 2024 2023
GAAP operating expense $ 13,083  $ 13,972  $ 54,931  $ 57,971 
Non-GAAP adjustments:
Amortization of intangibles (A) 93  389  593  1,560 
Stock option expenses (B) 405  380  1,644  1,566 
Severance-related expenses (C) —  —  360  56 
Non-GAAP operating expense 12,585  13,203  52,334  54,789 
GAAP operating profit 4,834  4,479  18,502  15,572 
Non-GAAP adjustments (A through C) 498  769  2,597  3,182 
Non-GAAP operating profit 5,332  5,248  21,099  18,754 

###
10/10
EX-99.2 3 q42024presentationfinal.htm EX-99.2 q42024presentationfinal
Fourth Quarter 2024 Performance February 25, 2025

 
2 | Fourth Quarter 2024 Performance Important Notice to Investors Please read this management presentation together with the Company’s press release issued earlier today announcing the Company’s fourth quarter 2024 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Securities and Exchange Commission (SEC). Certain statements contained in this presentation that are not historical facts may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These forward looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects, expected future financial guidance and intentions, markets in which we participate and other statements contained in this presentation that are not historical facts. When used in this presentation, the words "expect," "predict," "project," "anticipate," "believe," "estimate," "intend," "plan," "seek" and similar expressions are generally intended to identify forward looking statements. Because these forward looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward- looking statements to reflect events or circumstances occurring after the date of this presentation.

 
3 | Fourth Quarter 2024 Performance Part 1: Fourth Quarter 2024 Performance Part 2: Management Focus Part 3: Travelzoo META

 
4 | Fourth Quarter 2024 Performance 21.1 20.7 Q4 2023 Q4 2024 Revenue was lower than we expected, but operating profit increased by 8%. Revenue $ millions Operating Profit $ millions 4.5 4.9 Q4 2023 Q4 2024

 
5 | Fourth Quarter 2024 Performance 0.22 0.26 0.02 0.03 Q4 2023 Q4 2024 While operating income increased and outstanding shares decreased, EPS was lower. The strong dollar affected the valuation of non-USD cash and there was one-time extraordinary income last year. EPS $ per share Operating Income $ million Outstanding Shares Diluted 4.5 4.9 Q4 2023 Q4 2024 13,946 12,358 Q4 2023 Q4 2024 Other income/(loss), including the effects of F/X changes Extra-ordinary income in Q4 2023 from discontinued APAC operations (0.01)

 
6 | Fourth Quarter 2024 Performance 4.0 4.6 13.8 13.9 0.8 0.2 Higher profits came from North America and Jack’s Flight Club. Europe revenue decreased, but we do not view this as a trend. Revenue $ millions North America Segment Europe Segment Q4 2023 Q4 2024 Operating Profit $ millions Q4 2023 Q4 2024 6.3 5.4 0.2 Jack’s Flight Club Segment 0.9 1.3 (0.2)

 
7 | Fourth Quarter 2024 Performance Membership fee revenue is expected to substantially drive revenue and profit growth in 2025 when the free membership for Legacy Members* phases out. Advertising Global Revenues $ millions 19.4 20.9 20.0 18.7 19.1 Q4 2023 Q1 2024 Q2 2024 Membership Fees 1.2 1.1 1.2 1.4 1.6 Other 0.0 0.0 0.0 0.0 0.0 Includes advertising revenues and commissions from travel companies, local and entertainment businesses Includes membership fees and subscription revenues * Legacy Members are those who joined prior to 2024. They were exempt from the fee during 2024. They represent more than 95% of Travelzoo’s reach. Q3 2024 Q4 2024

 
8 | Fourth Quarter 2024 Performance $40 $1.67 $10 $10 $10 $8.33 Payment by member Revenue recognized We recognize revenue from membership fees ratably over the subscription period. Member acquisition costs, however, are fully recorded as expenses immediately. Example: New member joins on March 15, 2025, paying a membership fee of $40 per annum Revenue Recognition $ Revenue recognized Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

 
9 | Fourth Quarter 2024 Performance 4% 7% 9% 11% 18% 25% 19% 20% 23% 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Our GAAP operating margin remained high at 23%. Operating Margin (26%) (2%)

 
10 | Fourth Quarter 2024 Performance In North America, the GAAP operating margin increased to 33%. In Europe, the margin was affected by lower revenue in Germany. North America Operating Margin Europe Operating Margin 31% 27% 22% 29% 31% 26% 25% 33% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 8% 4% 13% 21% 8% 17% 3% (4%)

 
11 | Fourth Quarter 2024 Performance * GAAP operating profit + amortization of intangibles + stock option expenses + severance-related expenses = non-GAAP operating profit Total non-GAAP operating profit was $5.4 million or 26% of revenue. Non-GAAP Operating Profit* $ millions GAAP Operating Profit Adjustments Non-GAAP Operating Profit* 4.9 0.5 5.4 Q4 2024 4.5 0.8 5.2 Q4 2023

 
12 | Fourth Quarter 2024 Performance Items excluded in the calculation of non-GAAP operating profit: $ millions Q3 2024 Q4 2024 Adjustments 0.9 0.5 Impairment of intangibles and goodwill — — Amortization of intangibles 0.1 0.1 Stock option expense 0.5 0.4 Severance-related expenses 0.3 0.0

 
13 | Fourth Quarter 2024 Performance 16.4 12.1 17.7 Q4 2023 Q3 2024 Q4 2024 With operating cash flow of $7.7 million, our cash position grew—even after repurchasing 135,792 shares during the quarter. Cash Balance at End of Quarter* $ millions * Includes cash, cash equivalents and restricted cash

 
14 | Fourth Quarter 2024 Performance Revenue $ millions Operating Expenses and Cost of Revenues $ millions We believe we can keep our fixed costs relatively low in the foreseeable future. Higher revenues would thus increase margins. 15.9 15.2 15.8 0.8 0.9 0.5 Q4 2023 Q3 2024 Q4 2024 16.1 16.316.721.1 20.1 20.7 Q4 2023 Q3 2024 Q4 2024 OPEX and cost of revenues Non-GAAP adjustments

 
15 | Fourth Quarter 2024 Performance Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. * Sources: Travelzoo Travel Outlook 2024 member survey in the U.S.; survey tool Alchemer; October 2023; targeted survey of non-dormant members; n=4,484 ** Google Analytics, average taken over July 2022 to June 2023.; U.S. Department of State – Bureau of Consular Affairs, U.S. Census Bureau Travelzoo Reaches 30 Million Travelers Travelzoo U.S. Member Survey* October 2024 53% ages 45+ 47% ages 18-44** 56% female 44% male** 96% have a valid passport compared to 45% of U.S. population 59% have the budget to treat themselves and purchase non- essentials 91% say they are open to new destinations and travel ideas

 
16 | Fourth Quarter 2024 Performance Part 1: Fourth Quarter 2024 Performance Part 2: Management Focus Part 3: Travelzoo META

 
17 | Fourth Quarter 2024 Performance Management focus • Grow the number of (paying) members by converting Legacy Members and adding new Club Members. • Add new benefits to the paid membership • Retain, and grow, our profitable advertising business from the popular Top 20® product • Utilize higher operating margins to increase EPS • Grow Jack’s Flight Club’s profitable subscription revenue • Develop Travelzoo META with discipline

 
18 | Fourth Quarter 2024 Performance Part 1: Fourth Quarter 2024 Performance Part 2: Management Focus Part 3: Travelzoo META

 
19 | Fourth Quarter 2024 Performance

 
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