News

Travelzoo (TZOO) – Moving Along The Road To Recovery

Media and Marketing
0 min read

Thursday, October 22, 2020

Travelzoo (TZOO)

Moving Along The Road To 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.

    Exceeds Q3 expectations. We believe that the company posted one of the best Q3 results in the travel industry, with revenues up a strong 96% from Q2 revenues and a swing toward positive cash flow. Q3 revenues of $10.9 million was above our $9.9 million estimate. In addition, Q3 cash flow from continuing operations, or adjusted EBITDA, was better than expected at a positive $1.17 million versus our loss estimate of $1.53 million.

    Strong voucher sales.  The company’s cash position increased to a significant $51.7 million as of Sept. 30, nearly double the $26.7 million as of June 30, 2020, reflecting strong voucher sales. While redemptions of vouchers are likely to step up in coming quarters, we believe that the company’s cash position could increase to $60 million or even $70 million by the end of the fourth quarter based on …



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. 

Share

Inbox Intel from Channelchek.

Informed investors make more money. And it’s all about timing. Get it when it happens.

By clicking submit you are agreeing to the Terms of Use and Privacy Policy
© 2018-2024 Noble Financial Group, Inc. All Rights Reserved. Channelchek is provided at no cost to be used for information purposes only and not as investment advisement.