Benzinga | Jul 21, 2021 09:34AM EDT

Travelzoo Shares Shoot Higher On Q2 Earnings Beat, Stronger Q3 Expectations

* Travelzoo (NASDAQ:TZOO) reported second-quarter FY21 revenue growth of 172% year-on-year to $19.1 million, surpassing the analyst consensus of $16.38 million.

* The revenue consists of advertising revenues and commissions derived from and generated in connection with Travelzoo members' purchases.

* North America business segment revenue increased 233% Y/Y to $14.0 million with a 25% operating margin.

* Europe business segment revenue rose 128% Y/Y to $4.2 million.

* Jack's Flight Club revenue declined 9% Y/Y to $0.86 million.

* EPS was $0.22, beating the analyst consensus of $0.06.

* The non-GAAP operating margin was 25.5%.

* The company generated $12.8 million in operating cash flow and held $82.1 million in cash and equivalents.

* Outlook: It expects to report higher revenue and profitability for Q3.

* Price action: TZOO shares traded higher by 14.50% at $13.95 in the market session on the last check Wednesday.