Form 8-K - Current report

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): October 23, 2024

____________________________________________________

(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 October 23, 2024, Travelzoo (the "Company") reported its third 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:	October 23, 2024	By:	/s/ Lijun Qi
			Lijun Qi Principal Accounting Officer

EXHIBIT INDEX


Exhibit			Description

99.1			Press Release, dated October 23, 2024.

99.2			Supplemental earnings presentation provided in connection with the third quarter 2024 earnings call of Travelzoo, dated October 23, 2024.

Exhibit 99.1


						Travelzoo 590 Madison Avenue 35th Floor New York, NY 10022 Investor Relations: ir@travelzoo.com

FOR IMMEDIATE RELEASE

Travelzoo Reports Third Quarter 2024 Results

NEW YORK, October 23, 2024 — Travelzoo® (NASDAQ: TZOO):

•Revenue of $20.1 million, down 2% year-over-year

•Consolidated operating profit of $4.0 million

•Non-GAAP consolidated operating profit of $4.9 million

•Cash flow from operations of $5.3 million

•Earnings per share (EPS) of $0.26

Travelzoo, the club for travel enthusiasts, today announced financial results for the third quarter ended September 30, 2024. Consolidated revenue was $20.1 million, down 2% year-over-year. In constant currencies, revenue was $20.0 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 Q3 2024, or $0.26 per share, compared with $0.16 in the prior-year period. Net income attributable to Travelzoo from continuing operations was $3.2 million for Q3 2024, or $0.26 per share, compared with $0.16 in the prior-year period.

Non-GAAP operating profit was $4.9 million. Non-GAAP operating profit excludes amortization of intangibles ($95,000), stock option expenses ($0.5 million) and severance-related expenses ($0.3 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 members,” said Holger Bartel, Travelzoo's Global

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CEO. “Travelzoo members are affluent, active, and open to new experiences. We inspire members 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."

Cash Position

As of September 30, 2024, consolidated cash, cash equivalents and restricted cash were $12.1 million. Net cash provided by operations was $5.3 million.

Travelzoo North America

North America business segment revenue decreased 4% year-over-year to $12.8 million. Operating profit for Q3 2024 was $3.2 million, or 25% of revenue, compared to operating profit of $3.0 million in the prior-year period.

Travelzoo Europe

Europe business segment revenue increased 1% year-over-year to $6.1 million. In constant currencies, Europe business segment revenue was $5.9 million. Operating profit for Q3 2024 was $1.0 million, or 17% of revenue, compared to operating profit of $267,000 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. Revenue from unaffiliated customers increased 11% year-over-year to $1.2 million. The number of premium subscribers increased 14% year-over-year. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q3 2024 was $85,000. 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 $33,000. Operating loss for Q3 2024 was $160,000.

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

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Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Travelzoo recorded $7,000 in licensing revenue from the licensee in Japan in Q3 2024. Travelzoo recorded $10,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q3 2024. Licensing revenue is expected to increase going forward.

Members and Subscribers

As of September 30, 2024, we had 30.1 million members and subscribers worldwide. In North America, Travelzoo had 15.8 million unduplicated members as of September 30, 2024. In Europe, Travelzoo had 9.1 million unduplicated members as of September 30, 2024. Jack’s Flight Club had 2.1 million subscribers, including premium subscribers, as of September 30, 2024. Comparisons to prior periods are no longer meaningful due to strategic developments of the Travelzoo membership and Jack’s Flight Club premium subscriber acquisition. For Travelzoo, the average activity of members is increasing. For Jack’s Flight Club, the premium subscribers are increasing.

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 $1.1 million for income taxes was recorded for Q3 2024, compared to an income tax expense of $1.0 million in the prior-year period. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its actual tax liability for Q3 2024.

Share Repurchase Program

During Q3 2024, the Company repurchased 552,679 shares of its outstanding common stock.

Looking Ahead

For Q4 2024, we expect growth in revenue year-over-year, albeit at a smaller pace than in 2023. However, there could be unexpected fluctuations. We also expect for Q4 2024 higher profitability year-over-year and quarter-over-quarter. For 2025, we expect substantial growth in revenue as a result of additional revenue from membership fees.

In December 2023, we announced the introduction of a membership fee for Travelzoo beginning January 1, 2024. We recognize membership fee revenue ratably over the subscription period. Legacy Travelzoo members as of December 31, 2023, which represent more than 95% of members, are

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exempt from the fee during 2024. Therefore, we do not anticipate membership fee revenue from these members before 2025.

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 third 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. Our 30 million members receive exclusive offers and one-of-a-kind experiences 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 more than 5,000 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.

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Travelzoo

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)


	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenues	$	20,098	$	20,599	$	63,224	$	63,328
Cost of revenues	2,548		2,665		7,708		8,236
Gross profit	17,550		17,934		55,516		55,092
Operating expenses:
Sales and marketing	8,247		9,840		26,231		29,278
Product development	594		525		1,763		1,533
General and administrative	4,664		4,460		13,875		13,188
Total operating expenses	13,505		14,825		41,869		43,999
Operating income	4,045		3,109		13,647		11,093
Other income, net	359		314		674		1,143
Income from continuing operations before income taxes	4,404		3,423		14,321		12,236
Income tax expense	1,148		1,018		3,920		3,487
Income from continuing operations	3,256		2,405		10,401		8,749
Loss from discontinued operations, net of tax	—		(5)		—		(5)
Net income	3,256		2,400		10,401		8,744
Net income attributable to non-controlling interest	72		52		54		97
Net income attributable to Travelzoo	$	3,184	$	2,348	$	10,347	$	8,647

Net income attributable to Travelzoo—continuing operations	$	3,184	$	2,353	$	10,347	$	8,652
Net loss attributable to Travelzoo—discontinued operations	$	—	$	(5)	$	—	$	(5)

Income per share—basic
Continuing operations	$	0.26	$	0.16	$	0.81	$	0.57
Discontinued operations	$	—	$	—	$	—	$	—
Net income per share—basic	$	0.26	$	0.16	$	0.81	$	0.57

Income per share—diluted
Continuing operations	$	0.26	$	0.16	$	0.79	$	0.57
Discontinued operations	$	—	$	—	$	—	$	—
Net income per share—diluted	$	0.26	$	0.16	$	0.79	$	0.56
Shares used in per share calculation from continuing operations—basic	12,176		14,769		12,851		15,242
Shares used in per share calculation from discontinued operations—basic	12,176		14,769		12,851		15,242
Shares used in per share calculation from continuing operations—diluted	12,386		14,821		13,035		15,307
Shares used in per share calculation from discontinued operations—diluted	12,386		14,821		13,035		15,307

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Travelzoo

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)


	September 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	11,429	$	15,713
Accounts receivable, net	13,167		12,965
Prepaid income taxes	1,132		629
Prepaid expenses and other	1,619		1,461
Total current assets	27,347		30,768
Deposits and other	230		1,115
Deferred tax assets	3,193		3,196
Restricted cash	675		675
Operating lease right-of-use assets	6,080		6,015
Property and equipment, net	470		578
Intangible assets, net	1,591		2,091
Goodwill	10,944		10,944
Total assets	$	50,530	$	55,382
Liabilities and Equity
Current liabilities:
Accounts payable	$	4,984	$	4,546
Merchant payables	17,321		20,622
Accrued expenses and other	4,124		3,658
Deferred revenue	3,854		2,044
Income tax payable	1,450		766
Operating lease liabilities	2,624		2,530
Liabilities from discontinued operations	24		24
Total current liabilities	34,381		34,190
Long-term tax liabilities	7,028		4,681
Long-term operating lease liabilities	6,225		6,717
Other long-term liabilities	376		911
Total liabilities	48,010		46,499
Common stock	119		136
Tax indemnification	(9,537)		(9,537)
Note receivable and account receivable from shareholder	(1,929)		(1,753)
Additional paid-in capital	—		439
Retained earnings	14,195		19,508
Accumulated other comprehensive loss	(5,079)		(4,607)
Total Travelzoo stockholders’ equity (deficit)	(2,231)		4,186
Non-controlling interest	4,751		4,697
Total stockholder's equity	2,520		8,883
Total liabilities and Equity	$	50,530	$	55,382

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Travelzoo

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)


	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Cash flows from operating activities:
Net income	$	3,256	$	2,400	$	10,401	$	8,744
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	179		472		737		1,417
Stock-based compensation	457		359		1,240		1,187
Deferred income tax	(12)		(73)		(39)		(111)
Loss on long-lived assets	—		—		—		10
Net foreign currency effects	(154)		86		(165)		53
Provision of loss (net recoveries) on accounts receivable and refund reserves	128		(115)		121		(944)
Changes in operating assets and liabilities:
Accounts receivable	127		(571)		(258)		3,317
Prepaid income taxes	(134)		111		(461)		1,128
Prepaid expenses, deposits and other	(69)		(253)		464		2,232
Accounts payable	(284)		689		430		(1,704)
Merchant payables	431		(153)		(3,348)		(8,757)
Accrued expenses and other	463		197		2,162		574
Income tax payable	315		59		593		293
Other liabilities	628		435		1,381		1,854
Net cash provided by operating activities	5,331		3,643		13,258		9,293
Cash flows from investing activities:
Proceeds from repayment of note receivable	—		—		—		113


Purchases of property and equipment	(46)		(60)		(129)		(217)
Net cash used in investing activities	(46)		(60)		(129)		(104)
Cash flows from financing activities:
Repurchase of common stock	(6,183)		(6,896)		(16,605)		(11,766)

Exercise of stock options and taxes paid for net share settlement of equity awards	(335)		—		(592)		(299)
Net cash used in financing activities	(6,518)		(6,896)		(17,197)		(12,065)
Effect of exchange rate on cash, cash equivalents and restricted cash	96		(302)		(215)		80
Net decrease in cash, cash equivalents and restricted cash	(1,137)		(3,615)		(4,283)		(2,796)
Cash, cash equivalents and restricted cash at beginning of period	13,243		20,197		16,389		19,378
Cash, cash equivalents and restricted cash at end of period	$	12,106	$	16,582	$	12,106	$	16,582

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Travelzoo

Segment Information from Continuing Operations

(Unaudited)

(In thousands)


Three months ended September 30, 2024	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$	12,846	$	6,021	$	1,198	$	33	$	20,098
Intersegment revenues	(24)		34		(10)		—		—
Total net revenues	12,822		6,055		1,188		33		20,098
Operating profit (loss)	$	3,150	$	1,028	$	27	$	(160)	$	4,045

Three months ended September 30, 2023	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$	13,094	$	6,397	$	1,080	$	28	$	20,599
Intersegment revenues	314		(414)		100		—		—
Total net revenues	13,408		5,983		1,180		28		20,599
Operating profit (loss)	$	3,015	$	267	$	144	$	(317)	$	3,109


Nine months ended September 30, 2024	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$	41,134	$	18,605	$	3,397	$	88	$	63,224
Intersegment revenues	50		63		(113)		—		—
Total net revenues	41,184		18,668		3,284		88		63,224
Operating profit (loss)	$	11,305	$	2,922	$	(106)	$	(474)	$	13,647

Nine months ended September 30, 2023	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$	41,303	$	18,937	$	3,039	$	49	$	63,328
Intersegment revenues	996		(1,180)		184		—		—
Total net revenues	42,299		17,757		3,223		49		63,328
Operating profit (loss)	$	11,284	$	485	$	196	$	(872)	$	11,093

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Travelzoo

Reconciliation of GAAP to Non-GAAP Information

(Unaudited)

(In thousands, except per share amounts)


	Three months ended				Nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
GAAP operating expense	$	13,505	$	14,825	$	41,869	$	43,999
Non-GAAP adjustments:
Amortization of intangibles (A)	95		384		500		1,171
Stock option expenses (B)	456		359		1,239		1,186
Severance-related expenses (C)	330		—		360		95
Non-GAAP operating expense	12,624		14,082		39,770		41,547

GAAP operating profit	4,045		3,109		13,647		11,093
Non-GAAP adjustments (A through C)	881		743		2,099		2,452
Non-GAAP operating profit	4,926		3,852		15,746		13,545

###

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Third Quarter 2024 Performance October 23, 2024

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

4 | Third Quarter 2024 Performance 20.6 20.1 Q3 2023 Q3 2024 Revenue was lower than we expected, but operating profit increased by 30%. Revenue $ millions Operating Profit $ millions 3.1 4.0 Q3 2023 Q3 2024

5 | Third Quarter 2024 Performance 3.0 3.2 13.4 12.8 0.3 1.0 Higher profits came particularly from our Europe segment. Revenue $ millions North America Business Segment Europe Business Segment Q3 2023 Q3 2024 Operating Profit $ millions Q3 2023 Q3 2024 6.0 6.1

6 | Third Quarter 2024 Performance Membership fee revenue is still small. We expect it 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 Q3 2023 Q1 2024 Q2 2024 Membership Fees 1.2 1.1 1.2 1.4 Other 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 ones who joined prior to January 1, 2024 and which are exempt from membership fees during 2024. They represent more than 95% of existing members. Q3 2024

7 | Third 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 joined on March 1, 2024, paying a membership fee of $40 per annum Revenue Recognition $ Revenue recognized Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025

8 | Third Quarter 2024 Performance 4% 7% 9% 11% 18% 25% 19% 20% 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Our GAAP operating margin remained high at 20% in what is typically our slowest quarter of the year. Operating Margin (26%) (2%)

9 | Third Quarter 2024 Performance In North America, the GAAP operating margin remained high. In Europe, the margin increased to 17%. North America Operating Margin Europe Operating Margin 31% 27% 22% 29% 31% 26% 25% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 8% -4% 4% 13% 21% 8% 17%

10 | Third 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 $4.9 million or 25% of revenue. Non-GAAP Operating Profit* $ millions GAAP Operating Profit Adjustments Non-GAAP Operating Profit* 4.0 0.9 4.9 Q3 2024 3.1 0.8 3.9 Q3 2023

11 | Third Quarter 2024 Performance Items excluded in the calculation of non-GAAP operating profit: $ millions Q2 2024 Q3 2024 Adjustments 0.8 0.9 Impairment of intangibles and goodwill — — Amortization of intangibles 0.1 0.1 Stock option expense 0.7 0.5 Severance-related expenses — 0.3

12 | Third Quarter 2024 Performance 16.6 13.2 12.1 Q3 2023 Q2 2024 Q3 2024 With operating cash flow of $5.3 million, we maintained a solid cash position—even after repurchasing 552,679 shares during the quarter. Going forward, we expect the cash balance to increase again. Cash Balance at End of Quarter* $ millions * Includes cash, cash equivalents and restricted cash

13 | Third 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. 16.7 16.3 15.2 0.8 0.8 0.9 Q3 2023 Q2 2024 Q3 2024 17.1 16.1 17.5 20.6 21.1 20.1 Q3 2023 Q2 2024 Q3 2024 OPEX and cost of revenues Non-GAAP adjustments

14 | Third Quarter 2024 Performance Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. Travelzoo's Global Reach * Including members of Jack's Flight Club ** 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 High-Quality Users, Followers and Subscribers Travelzoo U.S. Member Survey** October 2023 53% ages 45+ 48% ages 18-44*** 56% female 43% male*** 96% have a valid passport compared to 45% of U.S. population 84% plan to take 2+ domestic trips in 2024 91% say they are open to new destinations and travel ideas • 30 million members* • 8 million mobile app users • 4 million social media followers

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

16 | Third Quarter 2024 Performance Management focus • Convert a large number of legacy members*, which represent more than 95% of members, into (paying) members from January 1, 2025 on • 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 * Legacy members are ones who joined prior to January 1, 2024 and which are exempt from membership fees during 2024

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

18 | Third Quarter 2024 Performance

NASDAQ: TZOO HAVE A GOOD DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com

Cover Page	Oct. 23, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 23, 2024
Entity Registrant Name	Travelzoo
Entity Incorporation, State or Country Code	DE
Entity File Number	000-50171
Entity Tax Identification Number	36-4415727
Entity Address, Address Line One	590 Madison Avenue
Entity Address, Address Line Two	35th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	212
Local Phone Number	516-1300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	TZOO
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001133311
Amendment Flag	false