Travelzoo announced consolidated revenue of $20.1 million for the third quarter ended September 30, 2024, representing a 2% decrease year-over-year. Despite the revenue dip, net income attributable to Travelzoo increased to $3.2 million, or $0.26 per share, compared to $0.16 in the prior-year period. Non-GAAP operating profit reached $4.9 million for the quarter.
The North America segment reported revenue of $12.8 million, down 4% year-over-year, but its operating profit rose to $3.2 million from $3.0 million. Europe's revenue increased by 1% to $6.1 million, with operating profit significantly improving to $1.0 million from $267,000 in the prior year. Jack's Flight Club continued its growth, with revenue up 11% year-over-year to $1.2 million and premium subscribers increasing by 14%.
As of September 30, 2024, Travelzoo held $12.1 million in cash, cash equivalents, and restricted cash, with net cash provided by operations at $5.3 million. The company repurchased 552,679 shares of its common stock during the quarter. Management anticipates year-over-year revenue growth for Q4 2024, albeit at a slower pace than in 2023, and expects higher profitability both year-over-year and quarter-over-quarter.
For 2025, Travelzoo projects substantial revenue growth, driven by additional membership fees. Legacy members, who constitute over 95% of the member base, are exempt from fees in 2024 but will transition to a paid model in 2025. The company noted that membership fee revenue is recognized ratably over the subscription period, while member acquisition costs are expensed immediately.
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