Travelzoo, a global Internet media company, reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, Travelzoo generated revenues of $20.1 million, a slight decrease from $20.6 million in the same period of 2023. For the nine months, revenues totaled $63.2 million, down marginally from $63.3 million year-over-year. The decline in revenue was primarily attributed to a decrease in advertising revenues, which fell to $18.6 million in Q3 2024 from $19.4 million in Q3 2023. However, membership fees increased to $1.4 million in Q3 2024, up from $1.2 million in the prior year, reflecting the introduction of a new annual membership fee of $40 for new members starting January 1, 2024.

Operating income for the third quarter improved to $4.0 million, compared to $3.1 million in Q3 2023, while for the nine months, operating income rose to $13.6 million from $11.1 million. Net income for Q3 2024 was $3.3 million, up from $2.4 million in Q3 2023, and for the nine months, net income increased to $10.4 million from $8.7 million. This growth in profitability was supported by a reduction in sales and marketing expenses, which decreased significantly due to lower member acquisition costs.

Travelzoo's total assets decreased to $50.5 million as of September 30, 2024, from $55.4 million at the end of 2023, while total liabilities increased to $48.0 million from $46.5 million. The company reported a deficit in stockholders’ equity of $2.2 million, down from a positive equity of $4.2 million at the end of 2023.

In terms of strategic developments, Travelzoo has been actively repurchasing shares, with 800,000 shares repurchased during the third quarter of 2024. The company has also initiated a remediation plan to address identified weaknesses in its internal controls over financial reporting, which includes hiring additional financial staff and engaging outside experts for complex transactions.

Overall, while Travelzoo faced challenges in revenue generation, particularly in advertising, it demonstrated improved profitability and continued strategic initiatives to enhance its market position.