Revenue grew 16% year over year at the New York-based email media and marketing company, to $20 million ($80 million annualized). Fundamentals deteriorated: growth of email newsletter subscriptions slowed and cost-per-subscriber rose. Heavy investment in international operations whacked operating margin, which fell from astronomical 40% to still impressive 29%.
All in, Travelzoo remains a surprisingly profitable and successful business, one that largely flies under the Wall Street radar. Current market capitalisation is $360 million, approximately 20-25 times trailing EPS. Transcript from seekingalpha.