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Travelzoo (TZOO) – Fast Road Toward Recovery

Retail and Consumer
0 min read

Thursday, July 22, 2021

Travelzoo (TZOO)
Fast Road Toward Recovery

Travelzoo is a US-based company which acts as a publisher of travel and entertainment offers. The company informs a varied number of members in Asia Pacific, Europe, and North America, as well as millions of website users, about the best travel, entertainment and local deals available from various companies. It provides travel, entertainment, and local businesses in a flexible manner to the various customer. The company operates in three geographic segments namely Asia Pacific, Europe, and North America. Travelzoo derives its revenue through advertising fees including listing fees paid by travel, entertainment, and local businesses to advertise their offers on company’s media properties. Most of the company’s revenue is derived from the North America.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Q2 tops expected results. Total company revenues were $19.1 million versus our $16.1 million estimate. The revenues benefited from recovering advertising trends, particularly in North America. Adjusted EBITDA was roughly $4.9 million versus our $1.7 million estimate, benefiting from higher gross margins, (86.8% versus our 79.8% estimate).

    What gross margins imply? Management indicated that full year 2021 gross margins are expected to be relatively stable from that of Q2 at 86.8%.  This is quite favorable, indicating that the company is returning toward a more “normalized” business model, one that is based on higher margin advertising, rather than lower margin Travel Voucher sales …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

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