• Revenue of $33.5 million, down 10% year-over-year
• Operating profit of $2.7 million
• Earnings per share of $0.17, compared to loss per share of $1.24 in the prior-year period
• Non-GAAP earnings per share of $0.02, compared to $0.19 in the prior-year period
• Cash flow from operations of $508,000
"We continued to invest into our products, and decided to increase our marketing spend by $2.4 million over the previous quarter, which affected earnings per share by $0.12," said Chris Loughlin, chief executive officer. "We remain focused on leveraging our global scale and trusted brand to improve earnings in future periods."
North America
North America business segment revenue decreased 14% year-over-year to $22.6 million. Operating profit for the third quarter was $238,000, or 1% of revenue, down from $2.5 million, or 10% of revenue, in the prior-year period.
Europe
Europe business segment revenue decreased 1% year-over-year to $10.9 million. In local currency terms, revenue decreased 9% year-over-year. Operating profit for the third quarter was $196,000, or 2% of revenue, down from $1.5 million, or 13% of revenue in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 24.2 million as of September 30, 2014, up 4% from September 30, 2013. In North America, total unduplicated number of subscribers was 17.0 million as of September 30, 2014, up 3% from September 30, 2013. In Europe, total unduplicated number of subscribers was 7.3 million as of September 30, 2014, up 9% from September 30, 2013.
Asset Management
During the third quarter of 2014, Travelzoo generated $508,000 of cash from operating activities. Capital expenditures were $1.5 million, consistent with the prior-year period. As of September 30, 2014, cash and cash equivalents were $57.2 million.