Travelzoo Stock Plunges on Q3 Miss, Revenue Weakness in North America

By Benzinga
Benzinga
Benzinga
October 31, 2021 Updated: October 31, 2021

Travelzoo (TZOO) reported third-quarter FY21 revenue growth of 14 percent year-on-year to $15.7 million, missing the consensus of $20.5 million.

Business segment revenue increased 6 percent Y/Y to $9.7 million in North America and rose 43 percent to $5.2 million in Europe.

Jack’s Flight Club revenue declined 19 percent Y/Y to $0.796 million.

EPS of $0.22 missed the consensus of $0.23.

The company used $12.7 million in operating cash flow during the quarter. It held $66.4 million in cash and equivalents.

“Unfortunately, revenue from Travelzoo in North America was negatively impacted by press coverage about the COVID-19 Delta variant and Do Not Travel advisories for nearly 100 countries. We believe this to be a short-term effect,” said Holger Bartel, Global CEO.

Outlook

Travelzoo currently expects to achieve profitability in Q4 2021. The company noted that while it continues to see a trend of revenue recovery, there could be unexpected fluctuations in the short term.

Price Action

TZOO shares traded lower by 12.01 percent at $10.26 on the last check Friday.

By Anusuya Lahiri

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

Benzinga