Travelzoo (NASDAQ:TZOO) Q2 2024 Results Conference Call July 25, 2024 11:00 AM ET
Company Participants
Lijun Qi - Principal Accounting Officer
Holger Bartel - Global Chief Executive Officer
Conference Call Participants
Michael Kupinski - NOBLE Capital Markets
James Goss - Barrington Research
Steve Silver - Argus Research
Ed Woo - Ascendiant Capital
Operator
Hello, everyone. Welcome to the Travelzoo Second Quarter 2024 Financial Results Conference Call. [Operator Instructions]. Today's call is being recorded.
The company would like to remind you that all statements made during the 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 Form 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 company's Investor Relations website at travelzoo.com/ir.
It is now my pleasure to turn the floor over to Travelzoo, Global CEO, Holger Bartel; and its Finance Director, Lijun Qi. 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 consolidated Q2 revenue was $21.1 million, consistent with the prior year. In constant currencies, revenue was $21.2 million, up from $21.1 million year-over-year. Operating income, which we, as management, call operating profit increased 23% year-over-year. Q2 operating profit was $4.0 million or 19% of revenue, up from $3.3 million in the prior year. As of June 30, 2024, we had 30.8 million unduplicated members, consistent with June 30, 2023.
Slide 5 shows that revenue remained consistent in our North America segment, an increase in our Europe segment. Operating profit turned positive in Europe.
On Slide 6, we break down our categories of revenues, advertising, membership fees and other. Advertising revenue was $20.0 million for Q2 2024, consistent year-over-year. Revenue from membership fees increased to $1.2 million. We expect this revenue to grow substantially in 2025 for the following reason. At the beginning of 2024, we introduced a membership fee. Those who already members at the time are exempt from the fee during 2024, but they have to pay in 2025. We call this group Legacy Members, and then they represent over 95% of current members.