TZOO - Travelzoo (TZOO) - A Flight Delay
Q2 Softer Than Expected. Total company revenues decreased 7.3% to $17.7 million, 12% below our $20.0 million estimate. Gross margins improved better than expected, and, as such, the cash flow impact was muted. Adj. EBITDA was $2.9 million versus our $3.6 million estimate. Gross margins were 87.8%, better than our 85.4% estimate.A one-time blip? Management indicated that the revenue softness in the quarter was due to strong travel demand in the quarter, with rising airfares and hotel rates, but reduced number of flights and hotel occupancy limitations given staffing shortages. The company comped against high "getaway" voucher sales, which it is de-emphasizing as it returns to an advertising driven model. Read More >>