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): February 25, 2025

____________________________________________________

(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

99.1			Press Release, dated February 25, 2025.

99.2			Supplemental investor presentation provided in connection with the fourth quarter 2024 earnings call of Travelzoo, dated February 25, 2025.

Exhibit 99.1


						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

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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."

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

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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 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.

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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.

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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

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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

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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

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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

###

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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

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

Cover Page	Feb. 25, 2025
Cover [Abstract]
Document Type	8-K
Document Period End Date	Feb. 25, 2025
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