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Please note that this call is being webcast from our investor relations website at www.travelzoo.com/earnings. Please refer to our website for important information, including our earnings press release issued earlier this morning, along with the slides that accompany today's prepared remarks.And archive recording of this conference call will be available on the Travelzoo investor relations website at www.travelzoo.com/ir beginning approximately 90 minutes after the conclusion of this call. For the format of today’s call, I will review our second quarter financial results and then Chris will provide an update on our strategy. Thereafter, we will conclude with a question-and-answer session. Now, please open our management presentation, which is available at www.travelzoo.com/earnings. Turning to slide four, this provides you the key financial highlights for the quarter. We achieved revenue of $39.4 million this quarter which is slightly higher than prior quarter despite an expected seasonally slower quarter and up 5% year-over-year. We achieved record earnings per share of $0.45, which is up 53% from our $0.30 earnings per share for the same period last year. And we had growth in new subscribers, helping the Travelzoo brand reach our 25 million worldwide subscriber milestone this quarter. These results are demonstration of our ability to operate a profitable company in a competitive landscape. On slide five, we look at revenue by segment. Revenue in North America was $28.7 million representing a year-over-year growth rate of 4%. In Europe, revenue growth was 7% year-over-year, which is lapping high growth from last year. In local currency, Europe revenue growth was 10% year-over-year. We will provide some more insights on revenue in the next few slides. Turning to slide six, as a reminder we break out our revenue by type. First category of revenue is travel. This includes the products our subscribers and advertisers have enjoyed over the years that present tested high quality deals coming primarily from our flagship products, such as Top 20, Newsflash, website and Network. In addition, our travel revenue includes our Getaway voucher-based formats. This aligns with the way we manage our Getaways offerings along with our existing hotel advertising products included in travel.
The second category of revenue is search. This includes both our search products Fly.com and SuperSearch. We continue to believe these tools are great complements to our business as both provide an easy way for our subscribers to comparison shop for airline, hotels, and car rentals. The third category of revenue is local. This includes both Local Deals voucher-based format, as well as our entertainment business, which contains a mix of voucher-based and non-voucher-based deals. We view these revenues as one category as they represent our efforts to provide subscribers with high quality local deals whether it is a restaurant, spa, activity, show or concert event.Now, let’s take a look at the revenue by type for each segment starting on slide 7. North America second quarter revenue broken down by type, shows travel decreasing sequentially by 6% and increasing 3% year-over-year. The sequential decrease is due primarily to seasonality. The year-over-year increase is due to the increase in our hotel business deals by our Getaways offerings offset by continued reduced spending by certain online travel agencies, as well as airline consolidation and competition. North America Search second quarter revenue was flat sequentially and declined 6% year-over-year. While Fly.com continued to grow, this was offset by declines in SuperSearch revenue caused by our reduced spend, some challenging pricing for traffic acquisitions and reduced spend by the airlines. North America local revenue increased 16% sequentially and increased 15% year-over-year. Our management and sales force divisions continue to build-out a foundation for continued growth. The metrics for us continued to be stable with our deals now reaching 125 markets, an average deal size of approximately 25,000 and almost half the purchases made up of repeat buyers. Read the rest of this transcript for free on seekingalpha.com