Travelzoo (NASDAQ:TZOO) Q3 2023 Earnings Conference Call October 24, 2023 11:00 AM ET

Company Participants

Holger Bartel - Global Chief Executive Officer

Lijun Qi - Finance Director and Principal Accounting Officer

Arveena Ahluwalia - Global Director of META

Conference Call Participants

Michael Kupinski - Noble Capital Markets

Ed Woo - Ascendiant Capital

Steve Silver - Argus Research

Operator

Hello, everyone. Welcome to the Travelzoo Third Quarter 2023 Financial Results Conference Call. All participants have been placed in a listen-only mode and the floor will be open for questions following the presentation. Today's call is being recorded.

The company would like to remind you that all statements made during this conference call and presented in the slides that are not statements of historical facts constitute forward-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 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 this conference call will be made available on the Travelzoo Investor Relations website at travelzoo.com/ir.

Now it's 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 with an overview.

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 site at travelzoo.com/ir.

Let's begin with slide 4, Travelzoo’s revenue, operating profits and a member count all increased year-over-year. Our consolidated Q3 revenue was $20.6 million, up 30% from $15.8 million in the previous year. In constant currencies, revenue was $20.2 million, which is an increase of 27% year-over-year. Operating income, which we as management call operating profit increased 1,039% year-over-year, Q3 operating profit was $3.1 million, or 15% of revenue up from $273,000 in the prior year. As of September 30, 2023, we had 31.2 million unduplicated members, compared to 30.5 million as of September 30, 2022.