Friday, March 04, 2022

Travelzoo (TZOO)
Why Investors Should Not Look In The Rearview Mirror

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.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Disappointing results. For the 4th quarter of 2021, the company reported revenue of $14.1 million, 20% below our estimate of $17.6 million. Adj. EBITDA was negative in the quarter, at a loss of $2 million, $4.5 million below our estimate of $2.5 million.

The Omicron effect.  We believe that the Omicron variant, which adversely affected Q4, appears to be waning. In our view, there is a strong pent up demand for travel. While many consumers are booking travel close to the travel time, there appears to be a strong pent up demand for travel ...

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.