Travelzoo Inc (TZOO, Financial) filed Quarterly Report for the period ended 2009-09-30.
Travelzoo Inc publishes Travelzoo and Weekend.com. Reaching several million users per month, Travelzoo lists sales and specials from more than 200 advertisers, including Alamo Rent-a-Car, American Airlines, American Express Travel, Avis Rent A Car, Best Western International, British Airways, Carnival Cruise Lines, Delta Air Lines, Fairmont Hotels & Resorts, Funjet Vacations, Gate 1 Travel, Ian Schrager Hotels, JetBlue Airways, Kimpton Hotel & Restaurant Group, Marriott Hotels, Omni Hotels, Pleasant Holidays, Royal Caribbean Cruises, Six Continents Hotels, Starwood Hotels & Resorts, Vail Resorts, Virgin Atlantic Airways, and Wyndham Hotels & Resorts. Travelzoo Inc has a market cap of $239.59 million; its shares were traded at around $14.57 with a P/E ratio of 182.13 and P/S ratio of 2.94. Travelzoo Inc had an annual average earning growth of 66.8% over the past 5 years.
Our total revenues increased to $70.2 million for the nine months ended September 30, 2009 from $61.2 million for the nine months ended September 30, 2008. This represents an increase of $9.0 million or 15%. $4.5 million of the increase in revenues came from our operations in Europe, which had an increase of 63% in revenues year-over-year and was attributed primarily to a $3.4 million increase in revenue from fixed-fee advertising delivered in the Top 20 e-mail newsletter and on the Travelzoo Web site and a $452,000 increase in revenue from our Newsflash e-mail alert service. In local currency terms, revenues from our operations in Europe increased 104% year-over-year. The strengthening of the U.S. dollar relative to the British Pound Sterling and the Euro in the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008 had an unfavorable impact on the revenues from our operations in Europe. Had foreign exchange rates remained constant in these periods, revenues from our operations in Europe for the nine months ended September 30, 2009 would have been approximately $2.4 million higher than reported revenues of $11.7 million. $4.5 million of the increase in revenues came from our operations in North America and was attributed primarily to a $2.2 million increase in revenues from our publications, which includes the Travelzoo Web site, the Top 20 e-mail newsletter and the Newsflash e-mail alert service and a $1.8 million increase in revenues from our search products, which consist of SuperSearch and Fly.com. We launched Fly.com in February 2009.
Our cost of revenues increased to $4.1 million for the nine months ended September 30, 2009 from $1.9 million for the nine months ended September 30, 2008. As a percentage of revenue, cost of revenues increased to 5.9% for the nine months ended September 30, 2009 from 3.2% for the nine months ended September 30, 2008. The $2.2 million increase in cost of revenues for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008 was primarily due to a $1 million increase in fees we pay related to user searches on Fly.com, a $632,000 increase in depreciation and maintenance costs, and a $404,000 increase in payments made to third-party partners of the Travelzoo Network.
Sales and marketing expenses consist primarily of advertising and promotional expenses, salary expenses associated with sales, marketing and production staff, expenses related to our participation in industry conferences, and public relations expenses. Sales and marketing expenses increased to $13.4 million for the three months ended September 30, 2009 from $10.3 million for the three months ended September 30, 2008. The goal of our advertising was to acquire new subscribers for our e-mail products, increase the traffic to our Web sites, and increase brand awareness for Travelzoo and Fly.com. The $3.1 million increase in sales and marketing expenses for the three months ended September 30, 2009 compared to the three months ended September 30, 2008 was primarily due to a $1.4 million increase in subscriber acquisition expenses, an $850,000 increase in salary and employee related expenses, a $746,000 increase in advertising to acquire traffic to our Web sites, and a $547,000 increase in marketing expenses for Fly.com, offset by a $296,000 decrease in brand and trade marketing expense. For the three months ended September 30, 2009 and 2008, advertising expenses accounted for 63% and 59%, respectively, of total sales and marketing expenses.
Sales and marketing expenses increased to $37.5 million for the nine months ended September 30, 2009 from $32.7 million for the nine months ended September 30, 2008. The $4.8 million increase in sales and marketing expenses for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008 was primarily due to a $2.1 million increase in salary and employee related expenses, a $1.8 million increase in subscriber acquisition expenses, a $1.5 million increase in marketing expenses for Fly.com, and an $878,000 increase in advertising to acquire traffic to our Web sites offset by an $811,000 decrease in brand marketing expenses and a $585,000 decrease in trade and other marketing expenses. For the nine months ended September 30, 2009 and 2008, advertising expenses accounted for 70% and 62%, respectively, of total sales and marketing expenses.
General and administrative expenses increased to $18.4 million for the nine months ended September 30, 2009 from $15.7 million for the nine months ended September 30, 2008. The $2.8 million increase in general and administrative expenses was primarily due to a $1.6 million increase in salary and employee related expenses, a $535,000 increase in depreciation and amortization expenses, and a $220,000 increase in legal and professional service expense.
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Travelzoo Inc publishes Travelzoo and Weekend.com. Reaching several million users per month, Travelzoo lists sales and specials from more than 200 advertisers, including Alamo Rent-a-Car, American Airlines, American Express Travel, Avis Rent A Car, Best Western International, British Airways, Carnival Cruise Lines, Delta Air Lines, Fairmont Hotels & Resorts, Funjet Vacations, Gate 1 Travel, Ian Schrager Hotels, JetBlue Airways, Kimpton Hotel & Restaurant Group, Marriott Hotels, Omni Hotels, Pleasant Holidays, Royal Caribbean Cruises, Six Continents Hotels, Starwood Hotels & Resorts, Vail Resorts, Virgin Atlantic Airways, and Wyndham Hotels & Resorts. Travelzoo Inc has a market cap of $239.59 million; its shares were traded at around $14.57 with a P/E ratio of 182.13 and P/S ratio of 2.94. Travelzoo Inc had an annual average earning growth of 66.8% over the past 5 years.
Highlight of Business Operations:
Newsflash e-mail alert service and an $840,000 increase in revenues from our search products, which consists of SuperSearch and Fly.com. We launched Fly.com in February 2009. $2.2 million of the increase in revenues came from our operations in Europe, which had an increase of 83% in revenues year-over-year and was attributed primarily to a $1.6 million increase in revenue from fixed-fee advertising delivered in the Top 20 e-mail newsletter and on the Travelzoo Web site. In local currency terms, revenues from our operations in Europe increased 110% year-over-year. The strengthening of the U.S. dollar relative to the British Pound Sterling and the Euro in the three months ended September 30, 2009 compared to the three months ended September 30, 2008 had an unfavorable impact on the revenues from our operations in Europe. Had foreign exchange rates remained constant in these periods, revenues from our operations in Europe for the three months ended September 30, 2009 would have been approximately $549,000 higher than reported revenues of $4.8 million.Our total revenues increased to $70.2 million for the nine months ended September 30, 2009 from $61.2 million for the nine months ended September 30, 2008. This represents an increase of $9.0 million or 15%. $4.5 million of the increase in revenues came from our operations in Europe, which had an increase of 63% in revenues year-over-year and was attributed primarily to a $3.4 million increase in revenue from fixed-fee advertising delivered in the Top 20 e-mail newsletter and on the Travelzoo Web site and a $452,000 increase in revenue from our Newsflash e-mail alert service. In local currency terms, revenues from our operations in Europe increased 104% year-over-year. The strengthening of the U.S. dollar relative to the British Pound Sterling and the Euro in the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008 had an unfavorable impact on the revenues from our operations in Europe. Had foreign exchange rates remained constant in these periods, revenues from our operations in Europe for the nine months ended September 30, 2009 would have been approximately $2.4 million higher than reported revenues of $11.7 million. $4.5 million of the increase in revenues came from our operations in North America and was attributed primarily to a $2.2 million increase in revenues from our publications, which includes the Travelzoo Web site, the Top 20 e-mail newsletter and the Newsflash e-mail alert service and a $1.8 million increase in revenues from our search products, which consist of SuperSearch and Fly.com. We launched Fly.com in February 2009.
Our cost of revenues increased to $4.1 million for the nine months ended September 30, 2009 from $1.9 million for the nine months ended September 30, 2008. As a percentage of revenue, cost of revenues increased to 5.9% for the nine months ended September 30, 2009 from 3.2% for the nine months ended September 30, 2008. The $2.2 million increase in cost of revenues for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008 was primarily due to a $1 million increase in fees we pay related to user searches on Fly.com, a $632,000 increase in depreciation and maintenance costs, and a $404,000 increase in payments made to third-party partners of the Travelzoo Network.
Sales and marketing expenses consist primarily of advertising and promotional expenses, salary expenses associated with sales, marketing and production staff, expenses related to our participation in industry conferences, and public relations expenses. Sales and marketing expenses increased to $13.4 million for the three months ended September 30, 2009 from $10.3 million for the three months ended September 30, 2008. The goal of our advertising was to acquire new subscribers for our e-mail products, increase the traffic to our Web sites, and increase brand awareness for Travelzoo and Fly.com. The $3.1 million increase in sales and marketing expenses for the three months ended September 30, 2009 compared to the three months ended September 30, 2008 was primarily due to a $1.4 million increase in subscriber acquisition expenses, an $850,000 increase in salary and employee related expenses, a $746,000 increase in advertising to acquire traffic to our Web sites, and a $547,000 increase in marketing expenses for Fly.com, offset by a $296,000 decrease in brand and trade marketing expense. For the three months ended September 30, 2009 and 2008, advertising expenses accounted for 63% and 59%, respectively, of total sales and marketing expenses.
Sales and marketing expenses increased to $37.5 million for the nine months ended September 30, 2009 from $32.7 million for the nine months ended September 30, 2008. The $4.8 million increase in sales and marketing expenses for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008 was primarily due to a $2.1 million increase in salary and employee related expenses, a $1.8 million increase in subscriber acquisition expenses, a $1.5 million increase in marketing expenses for Fly.com, and an $878,000 increase in advertising to acquire traffic to our Web sites offset by an $811,000 decrease in brand marketing expenses and a $585,000 decrease in trade and other marketing expenses. For the nine months ended September 30, 2009 and 2008, advertising expenses accounted for 70% and 62%, respectively, of total sales and marketing expenses.
General and administrative expenses increased to $18.4 million for the nine months ended September 30, 2009 from $15.7 million for the nine months ended September 30, 2008. The $2.8 million increase in general and administrative expenses was primarily due to a $1.6 million increase in salary and employee related expenses, a $535,000 increase in depreciation and amortization expenses, and a $220,000 increase in legal and professional service expense.
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