Q4 2024 Travelzoo Earnings Call
<unk> earnings call. Today's conference is being recorded currently all callers have been placed in a listen only mode and following management's prepared remarks, the call will be opened for your questions. If he would like to ask a question at that time. Please press star one on your telephone keypad, if you need to remove yourself from the queue Press star two.
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Speaker Change: The company would like to remind you that all statements made during this conference call and presented in our slides that are not statements of historical facts constitute forward looking statements and are made pursuant to safe Harbor provisions of the private Securities Litigation Reform Act of 1095.
Speaker Change: Actual results could vary materially from those contained in our forward looking statements factors that could cause actual results to differ materially from those in the forward looking statements are described in the company's forms 10.
We all colors have been placed in a listen only mode and following the management's prepared remarks, the call will be open for your questions. If you would like to ask a question at that time, Please press star and one on your telephone keypad.
I would like to remove yourself from the question queue Press Star two.
At any time, if you do need assistance, Please press star and zero.
Speaker Change: The company would like to remind you that all statements made during the conference call and presented in the slides that are not statements of historical facts constitute forward looking statements and are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1095.
Speaker Change: Actual results could vary materially from those contained in the forward looking statements factors that could cause actual results to differ materially from those in the forward. Looking statements are described in the company's forms 10-K, and 10-Q and other SEC filings.
Speaker Change: Unless required by law the company undertakes no obligation to update publicly any forward looking statements, whether as a result of new information future events or otherwise.
Speaker Change: Please refer to the company's website for important information, including the Companys earnings press release issued earlier today, an archived recording of the conference call will be made available on the company's Investor Relations website at travels who dot com forward Slash I R.
Speaker Change: Now it is my pleasure to turn the call or to the floor over to travel.
Yes.
A little bit more hesitation on consumer side, but that's as I always say that's good for us because if all hotels in London before we certainly wouldn't offer a $99 who like the centrally located four star Hotel.
For our.
E value traveled remember it will be done with it so.
I'm happy that.
This.
Speaker Change: It was almost the craziness of what we saw all our after COVID-19 and in the call that you're going to travel and all travel companies were so if it gets her thirdly and that's good news for us.
Speaker Change: Thank you for taking my questions I appreciate it.
Speaker Change: Thank you and we'll take our next question from Patrick Schoen with Barrington Research. Please go ahead.
Speaker Change: Hi.
Patrick Schoen: I was wondering if you could maybe talk about like the continued engagement levels.
Speaker Change: Of the members that haven't joined.
Speaker Change: And what I.
Speaker Change: I guess sort of has been in.
Speaker Change: What tends to encourage them to join I guess, just what share of it.
Speaker Change: Of those numbers kind of joined ahead of year end and maybe just talking about like if you could talk a little bit about.
Speaker Change: Who is how many have joined since the start of the year.
Speaker Change: So we don't we don't see much.
Speaker Change: Much of our key inch in the behavior of the warrants that have not become paying members yet.
Speaker Change: He creates all still.
Speaker Change: Click rates per email out to a fairly similar to what we saw last year and.
Speaker Change: Not specifically.
Speaker Change: Believes.
Speaker Change: Releasing information how many members have converted.
Speaker Change: We don't want to talk about that but what I can tell you is dead.
Speaker Change: And we are currently on piece of debt at the end of Q1.
Speaker Change: We will have 50, 50% more team members than we had at the end of last year and that progress in one quarter.
Speaker Change: The property.
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Speaker Change: Sure.
Speaker Change: Let me now.
Speaker Change: These are the core of the membership in this area. The great service that we've always provided of researching and getting the offers and identifying the right.
Speaker Change: We are also adding other benefits in Q4, we added lounge access where I go eat twice in a quite a good response.
Speaker Change: Both from legacy members.
Speaker Change: Who are interested in that benefit and also external to travel deal.
Speaker Change: We've also launched a week when you give away where.
Speaker Change: Club members have the opportunity to fit to win.
Speaker Change: Correct.
Speaker Change: Alright.
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Speaker Change: That was more of a one off and maybe just additional commentary around that.
Speaker Change: Around Europe, and the AD market, there and then.
Speaker Change: Yes.
Speaker Change: Are there like any sort of marketing expenses that youre pulling back on in order to.
Speaker Change: The market the paid service.
Speaker Change: Great. So Europe, we were.
Speaker Change: Not happy with Europe in Q4 very poorly.
Speaker Change: We were disappointed, particularly with Germany will fluctuate.
Speaker Change: Fluctuations were a result of.
Speaker Change: Many factors so.
Speaker Change: Just some examples.
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Speaker Change: Thanks.
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Thank you.
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Speaker Change: [noise] [noise] positive development in our balance sheet as Steve.
Speaker Change: And now.
Speaker Change: Actually pet also asked about marketing, whether we are planning to spend more and yeah. We are we are in 2025, we will wrap up our marketing spend really doing that in Q1.
Speaker Change: Why number one we are following a model that works. Okay. So if we can acquire.
Speaker Change: Ada members at a reasonable cost and the benefit from them over long periods of time the renewal rate.
Speaker Change: In the release, so far at <unk> Oh go ahead.
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Speaker Change: Perfect.
Speaker Change: Quite independent E S.
Speaker Change: As we also pointed out we are developing <unk> with quite.
Speaker Change: Quite some discipline, we're not still spending.
Speaker Change: Millions and millions or billions of dollars on developing that met diverse experience, we do it rationally and we don't see that gives us affected publicly.
Speaker Change: Our balance sheet is improving and we are generating more cash cash flows this quarter or cash flow in Q4 as you saw.
Was among the highest we've seen in quite some time.
Speaker Change: Great. Thanks for all the additional color.
Speaker Change: Thank you and we will take our next question from Edwin Mok with it. Please go ahead.
Edwin Mok: Yes, congratulations on the quarter.
Edwin Mok: A question on the Jack's flight club membership in their travel suite club membership are they separate products Andrew are there any plans to combine them.
Edwin Mok: So that you have one membership to port both products.
Edwin Mok: Okay.
Edwin Mok: I can take that question.
Edwin Mok: For now we are operating the businesses independently and that increase in membership.
Edwin Mok: We since we've acquired Jack's flight club, we look for ways to find synergies between the two businesses and that increase in cross promotion and.
Edwin Mok: Both the membership and the content identified.
Edwin Mok: Hi.
Edwin Mok: Either traveling you're Jack's flight club.
Speaker Change: And we're doing that in a way that makes sense and is beneficial for both brands and they serve a slightly different market. So for now that's the plan and to keep them independent.
Edwin Mok: Great well, thanks for answering my questions. Thank you.
Speaker Change: Yeah.
Speaker Change: Okay. This concludes the Q&A portion of today's call I would like to turn the call back over to Mr. Holger Bartel for closing remarks.
Speaker Change: SBA investors. Thank you for listening for your time and support and we look forward to speaking with you again next quarter.
Speaker Change: Great day.
Speaker Change: This concludes today's travel <unk> fourth quarter 2024 earnings call and webcast. You may disconnect. Your lines at this time and have a wonderful day.
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