Travelzoo’s Release of the Company’s Q1 2012 Earning Results in CEO Chris Loughlin Pointing the Finger at Daily Deal site Industry Practices
As Travelzoo released their quarterly results this week, CEO Chris Loughlin, came down hard on the deal industry essentially blaming daily deal sites, which he clarifies that Travelzoo technically is not, for unsustainable practices obstructing the advancement of others in the space. In discussion of the company’s Q1 2012 results, Loughlin stated that the industry at large is “hindered in the short term by industry dynamics.” Furthermore, Loughlin stresses Travelzoo is “the only company (within the deal arena) which is serious about making profits,” of which he explained the company’s long term goals will be met and profits will be obtained as previously predicted.
Travelzoo’s Q1 2012 Earnings
Loughlin’s blunt accusations, come on the tail of recent mass-publicized sales rumors although no official statement has been made either confirming or denying these claims. All in all Travelzoo’s earnings released this week were not all bad:
First Quarter 2012 Financial Highlights:
- Revenue of $39.3 million, up 6% year-over-year
- Non-GAAP net income of $6.7 million, up 12% year-over-year
- Non-GAAP earnings per share of $0.42, compared to $0.37 in the prior-year period and a penny above Street expectations
- GAAP net income of $3.7 million; GAAP earnings per share of $0.23
- Cash flow from operations of $9.8 million
- Newsletter subscriptions came in at 21.8 million, an increase of 9%
The New Travelzoo with Chris Loughlin’s Solution
Travelzoo will now strive for a more profitable approach strictly focusing on “productivity and profitability” in the deal area of their business. Overall Loughlin predicts that the company’s new focus will help them to profit, unlike others, in the longrun from an industry slump that was already looming in the future. Details of this new approach include publishing the best, most profitable deals to all involved, employing only quality mid-level managers, pumping more life into their sales force, smartly accelerating subscriber acquisition and mobile syndication. These tactics are expected to increase profits in Travelzoo’s Local Deals, Travel and Search sectors.
Loughlin did tactically address a popular issues arising in talk of the industry very recently deal, of a possible problem in the mobile sector. He explained it is well known that Travelzoo may lack in the mobile arena, much like their competitors, however it has not yet been a focus of the company, which will change in the future.