TZOO - Travelzoo fall in Q2 revenue led by North America pushes stock price down 12%

July, 27 2022 12:01 PM Travelzoo

Travelzoo ( NASDAQ: TZOO ) eroded 11.3% in gains until mid-day trading after it saw a 7% Y/Y drop in Q2 revenue to $17.7M; constant currencies, revenue stood at $18.2M.
North America business segment revenue decreased 11% Y/Y while Europe business segment revenue increased 3%.
Jack's Flight Club, acquired in January 2020, revenue increased 11%.
As of June 30, 2022, the company had 30.7M members worldwide; North America members were down 7% and in Europe it rose 7%.
EPS from continuing operations was $0.08, compared to $0.22 in the prior-year period.
"In Q2, we achieved in North America an operating margin of 25% (highest in six years). Revenue is expected to reach and exceed pre-pandemic levels," Global CEO Holger Bartel commented.
As of June 30, 2022, consolidated cash, cash equivalents and restricted cash were $26.7M; net cash used in operations stood at $10.2M wherein cash was used primarily in connection with a decrease of merchant payables by $11.8M.
Outlook: For Q3 of 2022, the company expects higher revenue Y/Y and profitability.

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