Net Income Per Share

9 Months Ended

Sep. 30, 2024

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method.

The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Numerator:
Net income attributable to Travelzoo—continuing operations	$	3,184	$	2,353	$	10,347	$	8,652
Net loss attributable to Travelzoo—discontinued operations	$	—	$	(5)	$	—	$	(5)
Denominator:
Weighted average common shares—basic	12,176		14,769		12,851		15,242
Effect of dilutive securities: stock options	210		52		184		65
Weighted average common shares—diluted	12,386		14,821		13,035		15,307

Income per share—basic
Continuing operations	$	0.26	$	0.16	$	0.81	$	0.57
Discontinued operations	—		—		—		—
Net income per share —basic	$	0.26	$	0.16	$	0.81	$	0.57

Income per share—diluted
Continuing operations	$	0.26	$	0.16	$	0.79	$	0.57
Discontinued operations	—		—		—		—
Net income per share—diluted	$	0.26	$	0.16	$	0.79	$	0.56

For the three and nine months ended September 30, 2024, options to purchase 612,500 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the three and nine months ended September 30, 2023, options to purchase 950,000 and 750,000 shares of common stock, respectively, were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.