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Segment Reporting and Significant Customer Information | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segments Reporting and Significant Customer Information | Segment Reporting and Significant Customer Information The Company determines its reportable segments based upon the Company’s chief operating decision maker managing the performance of the business. The Company currently has four reportable operating segments: Travelzoo North America, Travelzoo Europe, Jack’s Flight Club and New Initiatives. Travelzoo North America consists of the Company’s operations in Canada and the U.S. Travelzoo Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. Jack’s Flight Club consists of subscription revenue from premium members to access and receive flight deals from Jack’s Flight Club via email or via Android or Apple mobile applications. New Initiatives consists of Travelzoo licensing business and Travelzoo META subscription service and scouting and development business. Prior periods have been reclassified to conform with the current presentation. Management relies on an internal management reporting process that provides revenue and segment operating profit (loss) for making financial decisions and allocating resources. Management believes that segment revenues and operating profit (loss) are appropriate measures for evaluating the operational performance of the Company’s segments. The following is a summary of operating results by business segment (in thousands):
Three Months Ended September 30, 2023 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | New Initiatives |  | Consolidated
Revenues from unaffiliated customers | $ | 13,094 |  |  | $ | 6,397 |  |  | $ | 1,080 |  |  | $ | 28 |  |  | $ | 20,599 |
Intersegment revenues (expenses) | 314 |  |  | (414) |  |  | 100 |  |  | — |  |  | — |
Total net revenues | 13,408 |  |  | 5,983 |  |  | 1,180 |  |  | 28 |  |  | 20,599 |
Operating profit (loss) | $ | 3,015 |  |  | $ | 267 |  |  | $ | 144 |  |  | $ | (317) |  |  | $ | 3,109 |
Three Months Ended September 30, 2022 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | New Initiatives |  | Consolidated
Revenues from unaffiliated customers | $ | 10,273 |  |  | $ | 4,721 |  |  | $ | 847 |  |  | $ | 8 |  |  | $ | 15,849 |
Intersegment revenues (expenses) | 217 |  |  | (217) |  |  | — |  |  | — |  |  | — |
Total net revenues | 10,490 |  |  | 4,504 |  |  | 847 |  |  | 8 |  |  | 15,849 |
Operating profit (loss) | $ | 1,021 |  |  | $ | (551) |  |  | $ | 12 |  |  | $ | (209) |  |  | $ | 273 |
Nine Months Ended September 30, 2023 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | New Initiatives |  | Consolidated
Revenues from unaffiliated customers | $ | 41,303 |  |  | $ | 18,937 |  |  | $ | 3,039 |  |  | $ | 49 |  |  | $ | 63,328 |
Intersegment revenues (expenses) | 996 |  |  | (1,180) |  |  | 184 |  |  | — |  |  | — |
Total net revenues | 42,299 |  |  | 17,757 |  |  | 3,223 |  |  | 49 |  |  | 63,328 |
Operating profit (loss) | $ | 11,284 |  |  | $ | 485 |  |  | $ | 196 |  |  | $ | (872) |  |  | $ | 11,093 |
Nine Months Ended September 30, 2022 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | New Initiatives |  | Consolidated
Revenues from unaffiliated customers | $ | 34,108 |  |  | $ | 15,243 |  |  | $ | 2,622 |  |  | $ | 18 |  |  | $ | 51,991 |
Intersegment revenues (expenses) | 451 |  |  | (451) |  |  | — |  |  | — |  |  | — |
Total net revenues | 34,559 |  |  | 14,792 |  |  | 2,622 |  |  | 18 |  |  | 51,991 |
Operating profit (loss) | $ | 6,113 |  |  | $ | (1,845) |  |  | $ | 196 |  |  | $ | (491) |  |  | $ | 3,973 |
Property and equipment are attributed to the geographic region in which the assets are located. Revenues from unaffiliated customers excludes intersegment revenues and represents revenue with parties unaffiliated with the Company and its wholly owned subsidiaries. The following is a summary of assets by business segment (in thousands):
As of September 30, 2023 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | New Initiatives |  | Elimination |  | Consolidated
Long-lived assets | $ | 183 |  |  | $ | 102 |  |  | $ | — |  |  | $ | 336 |  |  | $ | — |  |  | $ | 621 |
Total assets excluding discontinued operations | $ | 95,181 |  |  | $ | 19,563 |  |  | $ | 19,744 |  |  | $ | 467 |  |  | $ | (79,154) |  |  | $ | 55,801 |
As of December 31, 2022 | Travelzoo North America |  | Travelzoo Europe |  | Jack’s Flight Club |  | New Initiatives |  | Elimination |  | Consolidated
Long-lived assets | $ | 375 |  |  | $ | 86 |  |  | $ | — |  |  | $ | 196 |  |  | $ | — |  |  | $ | 657 |
Total assets excluding discontinued operations | $ | 97,693 |  |  | $ | 19,253 |  |  | $ | 18,737 |  |  | $ | 267 |  |  | $ | (68,687) |  |  | $ | 67,263 |
For the three and nine months ended September 30, 2023 and 2022, the Company did not have any customers that accounted for 10% or more of revenue. As of September 30, 2023 and December 31, 2022, the Company did not have any customers that accounted for 10% or more of accounts receivable. The following table sets forth the breakdown of revenues (in thousands) by category and segment. Travel revenue includes travel publications (Top 20, Travelzoo website, Standalone email newsletters, Travelzoo Network), Getaways vouchers, hotel platform and vacation packages. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings).
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Travelzoo North America |  |  |  |  |  |  |
Travel | $ | 12,751 |  |  | $ | 9,660 |  |  | $ | 40,349 |  |  | $ | 32,149 |
Local | 657 |  |  | 830 |  |  | 1,950 |  |  | 2,410 |
Total Travelzoo North America revenues | 13,408 |  |  | 10,490 |  |  | 42,299 |  |  | 34,559 |
Travelzoo Europe |  |  |  |  |  |  |
Travel | 5,650 |  |  | 4,230 |  |  | 16,746 |  |  | 13,926 |
Local | 333 |  |  | 274 |  |  | 1,011 |  |  | 866 |
Total Travelzoo Europe revenues | 5,983 |  |  | 4,504 |  |  | 17,757 |  |  | 14,792 |
Jack’s Flight Club | 1,180 |  |  | 847 |  |  | 3,223 |  |  | 2,622 |
New Initiatives | 28 |  |  | 8 |  |  | 49 |  |  | 18 |
Consolidated |  |  |  |  |  |  |
Travelzoo Travel | 18,401 |  |  | 13,890 |  |  | 57,095 |  |  | 46,075 |
Travelzoo Local | 990 |  |  | 1,104 |  |  | 2,961 |  |  | 3,276 |
Jack’s Flight Club | 1,180 |  |  | 847 |  |  | 3,223 |  |  | 2,622 |
New Initiatives | 28 |  |  | 8 |  |  | 49 |  |  | 18 |
Total revenues | $ | 20,599 |  |  | $ | 15,849 |  |  | $ | 63,328 |  |  | $ | 51,991 |
Revenue by geography is based on the billing address of the advertiser. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. The following table sets forth revenue for countries that exceed 10% of total revenue (in thousands):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Revenue |  |  |  |  |  |  |
United States | $ | 12,225 |  |  | $ | 9,599 |  |  | $ | 38,447 |  |  | $ | 31,464 |
United Kingdom | 4,915 |  |  | 3,883 |  |  | 14,735 |  |  | 11,919 |
Germany | 1,992 |  |  | 1,276 |  |  | 5,225 |  |  | 4,485 |
Rest of the world | 1,467 |  |  | 1,091 |  |  | 4,921 |  |  | 4,123 |
Total revenues | $ | 20,599 |  |  | $ | 15,849 |  |  | $ | 63,328 |  |  | $ | 51,991 |
The following table sets forth property and equipment by geographic area (in thousands):
| September 30, |  | December 31,
| 2023 |  | 2022
United States | $ | 122 |  |  | $ | 274 |
China (Hong Kong) | 336 |  |  | 196 |
Rest of the world | 163 |  |  | 187 |
Total long-lived assets | $ | 621 |  |  | $ | 657 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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