Former NY Moonshot Travelzoo (TZOO) Decelerates

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.

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