Travelzoo (NASDAQ:TZOO) Q1 2023 Earnings Conference Call April 27, 2023 11:00 AM ET
Company Participants
Holger Bartel - Global Chief Executive Officer
Lijun Qi - Finance Director
Arveena Ahluwalia - General Manager, Travelzoo META
Conference Call Participants
Michael Kupinski - NOBLE Capital Markets
Jim Goss - Barrington Research
Steve Silver - Argus Research
Operator
Hello, everyone. Welcome to the Travelzoo First Quarter 2023 Financial Results Conference Call. [Operator Instructions] Today’s call is being recorded.
The company would like to remind you that all statements made during this conference call and presented in the slides that are not statements of historical facts constitute forward-looking statements and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could vary materially from those contained in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements are described in the company’s Forms 10-K and 10-Q and other SEC filings.
Unless required by law, the company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to the company’s website for important information, including the company’s earnings press release issued earlier today. An archived recording of the conference call will be made available on the Travelzoo Investor Relations website at travelzoo.com/ir.
Now, it is my pleasure to turn the floor over to Travelzoo’s Global CEO, Holger Bartel; its Finance Director, Lijun Qi; and its General Manager, Travelzoo META, Arveena Ahluwalia. Lijun will start an overview of the first quarter’s 2023 financial results.
Lijun Qi
Thank you, operator, and welcome to those of you joining us today. Please refer to the management presentation to follow along with our prepared remarks. The presentation in PDF format is available on our Investor Relations website at travelzoo.com/ir.
Let’s begin with Slide #3. Our consolidated Q1 revenue was $21.6 million, up 17% from $18.5 million in the previous year. In constant currency, revenue was $22.1 million, which is an increase of 19% year-over-year. Operating income, which weighed as management call operating profit, more than doubled year-over-year. Q1 operating profit was $4.7 million or 22% of revenue; up from $1.9 million in the prior year. As of March 31, 2023, we had $30.5 million unduplicated numbers compared to $30.7 million as of March 31, 2022.
On Slide 4, we go into more detail about the revenues and the operating profits of our two largest business segments, North America and Europe. North America segment revenue increased 26% year-over-year from $11.7 million to $14.8 million. The operating profit in North America was $4.5 million in Q1 compared to an operating profit of $1.8 million a year ago. Europe segment revenue remained consistent year-over-year. At constant currencies, Europe revenue increased 6% year-over-year. Europe had an operating profit of $457,000 in Q1 compared to an operating profit of $178,000 in the prior year.