Travelzoo (TZOO) shares sunk more than 16% after-hours after the company released ugly Q4 results.
The online travel site made just $46,000 last quarter — less than a penny per share — on $19.1 million of revenue, which fell short of the Street’s expected 14 cents EPS on $20.2 million of revenue.
Why the miss? Losses in Europe and Asia, where the company is expanding. And if you didn’t expect it, you weren’t paying attention, says CEO Ralph Bartel, in the release: “As announced frequently in our investor communications over the last twelve months, our strategy of investing in Asia Pacific and Europe affects our reported earnings.”
Let’s hope it works. Sales back home grew at a snail’s pace: TZOO’s North America Q4 revenue grew 6% to $17.7 million. Release.
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