Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 03, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Travelzoo Inc | ||
Entity Central Index Key | 0001133311 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | true | ||
Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 90,562,000 | ||
Entity Common Stock, Shares Outstanding | 11,451,329 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 19,505 | $ 18,017 |
Accounts receivable, less allowance for doubtful accounts of $1,126 and $692 as of December 31, 2019 and 2018, respectively | 13,006 | 12,646 |
Income tax receivable | 989 | 389 |
Deposits | 114 | 167 |
Prepaid expenses and other | 2,496 | 1,947 |
Total current assets | 36,110 | 33,166 |
Deposits and other | 820 | 685 |
Deferred tax assets | 2,051 | 1,645 |
Restricted cash | 1,205 | 1,444 |
Operating lease right-of-use assets | 8,886 | |
Property and equipment, net | 2,982 | 3,790 |
Investment in WeekenGO | 2,484 | 2,694 |
Total assets | 54,538 | 43,424 |
Current liabilities: | ||
Accounts payable | 20,406 | 17,129 |
Accrued expenses and other | 7,477 | 7,853 |
Deferred revenue | 896 | 1,339 |
Operating lease liabilities | 5,301 | |
Income tax payable | 914 | 489 |
Total current liabilities | 34,994 | 26,810 |
Long-term tax liabilities | 359 | 418 |
Long-term operating lease liabilities | 8,238 | |
Long-term deferred rent and other | 84 | 2,137 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share (5,000 shares authorized; none issued) | 0 | 0 |
Common stock, $0.01 par value (20,000 and 40,000 shares authorized as of December 31, 2019 and 2018, respectively; 11,479 and 11,962 shares issued and outstanding as of December 31, 2019 and 2018, respectively) | 115 | 120 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 14,200 | 18,153 |
Accumulated other comprehensive loss | (3,452) | (4,214) |
Total stockholders’ equity | 10,863 | 14,059 |
Total liabilities and stockholders’ equity | $ 54,538 | $ 43,424 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Allowance for doubtful accounts | $ 1,126 | $ 692 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 11,479,000 | 11,962,000 |
Common stock, shares outstanding (in shares) | 11,479,000 | 11,962,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||||||||
Revenues | $ 26,898 | $ 25,505 | $ 28,184 | $ 30,825 | $ 27,062 | $ 25,301 | $ 28,075 | $ 30,884 | $ 111,412 | $ 111,322 |
Cost of revenues | 3,206 | 2,980 | 2,757 | 2,946 | 2,880 | 2,987 | 3,016 | 3,385 | 11,889 | 12,268 |
Gross profit | 23,692 | 22,525 | 25,427 | 27,879 | 24,182 | 22,314 | 25,059 | 27,499 | 99,523 | 99,054 |
Operating expenses: | ||||||||||
Sales and marketing | 15,154 | 14,233 | 15,357 | 15,606 | 13,974 | 13,375 | 15,628 | 15,542 | 60,350 | 58,519 |
Product development | 1,905 | 1,478 | 1,799 | 1,703 | 1,799 | 2,297 | 2,386 | 2,511 | 6,885 | 8,993 |
General and administrative | 5,778 | 5,600 | 5,847 | 5,599 | 5,620 | 5,928 | 5,967 | 5,789 | 22,824 | 23,304 |
Total operating expenses | 22,837 | 21,311 | 23,003 | 22,908 | 21,393 | 21,600 | 23,981 | 23,842 | 90,059 | 90,816 |
Income from operations | 855 | 1,214 | 2,424 | 4,971 | 2,789 | 714 | 1,078 | 3,657 | 9,464 | 8,238 |
Other income (loss), net | (135) | (138) | (143) | (99) | (52) | (91) | 30 | 161 | (515) | 48 |
Income before income taxes | 720 | 1,076 | 2,281 | 4,872 | 2,737 | 623 | 1,108 | 3,818 | 8,949 | 8,286 |
Income tax expense | 1,319 | 770 | 953 | 1,752 | 1,173 | 505 | 631 | 1,316 | 4,794 | 3,625 |
Net income | $ (599) | $ 306 | $ 1,328 | $ 3,120 | $ 1,564 | $ 118 | $ 477 | $ 2,502 | $ 4,155 | $ 4,661 |
Income per share—basic: | ||||||||||
Net income per share, basic (in dollars per share) | $ (0.05) | $ 0.03 | $ 0.11 | $ 0.26 | $ 0.13 | $ 0.01 | $ 0.04 | $ 0.20 | $ 0.35 | $ 0.38 |
Income per share—diluted: | ||||||||||
Net income per share, diluted (in dollars per share) | $ (0.05) | $ 0.03 | $ 0.11 | $ 0.26 | $ 0.13 | $ 0.01 | $ 0.04 | $ 0.20 | $ 0.35 | $ 0.37 |
Shares used in computing basic net income per share (in shares) | 11,809 | 12,323 | ||||||||
Shares used in computing diluted net income per share (in shares) | 12,035 | 12,510 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,155 | $ 4,661 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 762 | (617) |
Total comprehensive income | $ 4,917 | $ 4,044 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2017 | 12,462,000 | ||||
Beginning balance at Dec. 31, 2017 | $ 13,078 | $ 125 | $ 0 | $ 16,550 | $ (3,597) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 915 | 915 | |||
Repurchase and retirement of common stock (in shares) | (500,000) | ||||
Repurchase and retirement of common stock | (5,292) | $ (5) | (915) | (4,372) | |
Foreign currency translation adjustment | (617) | (617) | |||
Net income | $ 4,661 | 4,661 | |||
Ending balance shares (in shares) at Dec. 31, 2018 | 11,962,000 | 11,962,000 | |||
Ending balance at Dec. 31, 2018 | $ 14,059 | $ 120 | 0 | 18,153 | (4,214) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 993 | 993 | |||
Repurchase and retirement of common stock (in shares) | (737,000) | ||||
Repurchase and retirement of common stock | (10,816) | $ (5) | (2,703) | (8,108) | |
Foreign currency translation adjustment | 762 | 762 | |||
Net income | $ 4,155 | 4,155 | |||
Exercise of stock options and taxes paid for net share settlement of equity awards (in shares) | 300,000 | 254,000 | |||
Proceeds from exercise of stock options, net of share settlement | $ 1,710 | 1,710 | |||
Ending balance shares (in shares) at Dec. 31, 2019 | 11,479,000 | 11,479,000 | |||
Ending balance at Dec. 31, 2019 | $ 10,863 | $ 115 | $ 0 | $ 14,200 | $ (3,452) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 4,155 | $ 4,661 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,318 | 1,828 |
Stock-based compensation | 993 | 915 |
Deferred income tax | 258 | (336) |
Loss on equity investment in WeekenGO | 821 | 218 |
Net foreign currency effect | 80 | 42 |
Other | 325 | (119) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (728) | (1,519) |
Income tax receivable | (600) | 129 |
Prepaid expenses and other | (626) | 104 |
Accounts payable | 3,061 | (25) |
Accrued expenses and other | (242) | 0 |
Income tax payable | 373 | (392) |
Other long-term liabilities | 2,048 | (189) |
Net cash provided by operating activities | 11,236 | 5,317 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (474) | (752) |
Proceeds from sale of property and equipment | 0 | 150 |
Investment in WeekenGO | (673) | (3,083) |
Net cash used in investing activities | (1,147) | (3,685) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options, net of share settlement | 1,710 | 0 |
Repurchase of common stock | (10,816) | (5,292) |
Net cash used in financing activities | (9,106) | (5,292) |
Effect of exchange rate changes on cash and cash equivalents | 266 | (880) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,249 | (4,540) |
Cash, cash equivalents and restricted cash at beginning of year | 19,461 | 24,001 |
Cash, cash equivalents and restricted cash at end of year | 20,710 | 19,461 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net | 4,720 | $ 4,276 |
Operating leases | 4,066 | |
Operating cash flows | $ 5,625 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) The Company and Basis of Presentation Travelzoo® provides our 30 million members insider deals and one-of-a-kind experiences personally reviewed by one of our deal experts around the globe. With 22 offices worldwide, we have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. For over 20 years we have worked in partnership with more than 5,000 top travel suppliers–our long-standing relationships give Travelzoo members access to irresistible deals. Travelzoo's revenues are generated primarily from advertising fees. Our publications and products include the Travelzoo website, the Travelzoo iPhone and Android apps, the Travelzoo Top 20 email newsletter, the Newsflash email alert service, and the Travelzoo Network , a network of third-party websites that list travel deals published by Travelzoo. The Travelzoo website includes Local Deals and Getaway listings that allow our members to purchase vouchers for deals from local businesses such as spas, hotels and restaurants. We receive a percentage of the face value of the voucher from the local businesses. Ralph Bartel, who founded Travelzoo (the "Company") and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. ("Azzurro"). As of December 31, 2019 , Azzurro is the Company's largest stockholder, holding approximately 47.8% of the Company's outstanding shares. Azzurro currently holds a proxy given to it by Holger Bartel that provides it with a total of 48.2% of the voting power. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with accounting principles generally accepted in the U.S. Significant estimates included in the consolidated financial statements and related notes include revenue recognition, income taxes, stock-based compensation, loss contingencies, and useful lives of property and equipment. Actual results could differ materially from those estimates. In April 2018, the Company entered into an agreement with WeekenGO GmbH ("WeekenGo"), a start-up company in Germany. WeekenGO uses new technology to promote vacation packages. Travelzoo originally invested $3.0 million in WeekenGO for a 25% ownership interest in April 2018. The Company accounts for this private company investment using the equity method of accounting by recording its share of the results of WeekenGO in Other income (expense), net on a one-quarter lag basis. In accounting for the investment, the Company allocated $1.0 million of its purchase price to net tangible assets and allocated approximately $485,000 of the purchase to technology-related intangible assets to be amortized over a three -year life. The remaining $1.5 million of the purchase price was allocated to goodwill. In April 2019, the Company invested an additional $673,000 in WeekenGO and increased the Company's ownership interest to 26.6% . On February 11, 2020, Travelzoo signed an amended investment agreement with WeekenGO and agreed to invest an additional $1.7 million to increase the Company's ownership interest to 33.7% if WeekenGO meets certain internal targets. The Company recorded $882,000 and $218,000 in 2019 and 2018, respectively, for its share of WeekenGO losses, amortization of basis differences and currency translation adjustment. (b) Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. The cumulative effect of the revenue accounting changes made to the Company's consolidated balance sheet as of January 1, 2018 primarily consists of a decrease in accounts payable related to the merchant payable of $1.6 million and a decrease of $270,000 of net deferred tax assets for a net cumulative effect increase of retained earnings of $1.3 million . These changes were due primarily to the new revenue guidance requirement to recognize revenue related to unredeemed Local Deals and Getaway vouchers for selected deals, included in our Europe segment, based upon estimates at the time of sale of the vouchers rather than the Company's past practice of waiting to recognize this revenue until expiration of the legal obligation. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company generates revenues primarily by delivering advertising on the Travelzoo website, in the Top 20 email newsletter, in Newsflash and from the Travelzoo Network . The Company also generates transaction-based revenues from the sale of vouchers through our Local Deals and Getaways products and operation of hotel booking platform and vacation packages. The Company's disaggregated revenues are included in "Note 10: Segment Reporting and Significant Customer Information". For fixed-fee website advertising, the Company recognizes revenues ratably over the contracted placement period. For Top 20 email newsletter and other email products, the Company recognizes revenues when the emails are delivered to its members. The Company offers advertising on a cost-per-click basis, which means that an advertiser pays the Company only when a user clicks on an ad on Travelzoo properties or Travelzoo Network members’ properties. For these customers, the Company recognizes revenues each time a user clicks on the ad. The Company also offers advertising on other bases, such as cost-per-impression, which means that an advertiser pays the Company based on the number of times their advertisement is displayed on Travelzoo properties, email advertisement, Travelzoo Network properties, or social media properties. For these customers, the Company recognizes revenues each time an ad is displayed or email delivered. For transaction based revenues, including products such as Local Deals, Getaways , hotel platform and vacation packages, the Company evaluates whether it is the principal (i.e., report revenue on a gross basis) versus an agent (i.e., report revenue on a net basis). The Company reports transaction revenue on a net basis because the supplier is primarily responsible for providing the underlying service and we do not control the service provided by the supplier prior to its transfer to the customer. For Local Deals and Getaways products, the Company earns a fee for acting as an agent for the sale of vouchers that can be redeemed for services with third-party merchants. Revenues are presented net of the amounts due to the third-party merchants for fulfilling the underlying services. Certain merchant contracts allow the Company to retain the proceeds from unredeemed vouchers. With these contracts, the Company estimates the value of vouchers that will ultimately not be redeemed and records the estimate in the same period as the voucher sale. Commission revenue related to our hotel platform is recognized ratably over the period of guest stay, net of an allowance for cancellations based upon historical patterns. For arrangements for booking non-cancelable reservations where the Company’s performance obligation is deemed to be the successful booking of a hotel reservation, the Company records revenue for the commissions upon completion of the hotel booking. The Company’s contracts with customers may include multiple performance obligations in which the Company allocates revenues to each performance obligation based on its standalone selling price. The Company determines standalone selling price based on its overall pricing objectives, taking into consideration the type of services, geographical region of the customers, normal rate card pricing and customary discounts. Standalone selling price is generally determined based on the prices charged to customers when the product is sold separately. The Company relies upon the following practical expedients and exemptions allowed for in the Topic 606. The Company expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded in sales and marketing expenses. In addition, the Company does not disclose the value of unsatisfied performance obligations for (a) contracts with an original expected length of one year or less and (b) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services performed. Deferred revenue primarily consists of customer prepayments and undelivered performance obligations related to the Company’s contracts with multiple performance obligations. At December 31, 2018, $1.3 million was recorded as deferred revenue, of which $1.1 million was recognized as revenue in 2019. At December 31, 2019, the deferred revenue balance was $896,000 . (c) Reserve for Refunds to Members The Company records an estimated reserve for refunds to members based on our historical experience at the time revenue is recorded for Local Deals and Getaway voucher sales. We accrue costs associated with refunds in accrued expenses on the consolidated balance sheets. We consider many key factors such as the historical refunds based upon the time lag since the sale, historical reasons for refunds, time period that remains until the deal expiration date, any changes in refund procedures and estimates of redemptions and breakage. Should any of these factors change, the estimates made by management will also change, which could impact the level of our future reserve for refunds to member. Specifically, if the financial condition of our advertisers, the business that is providing the vouchered service, were to deteriorate, affecting their ability to provide the services to our members, additional reserves for refunds to members may be required. Estimated member refunds that are determined to be recoverable from the merchant are recorded in the consolidated statements of operations as a reduction to revenue. We accrue costs associated with refunds in accrued expenses on the consolidated balance sheets. Estimated member refunds that are determined not to be recoverable from the merchant, are presented as a cost of revenue. If our judgments regarding estimated member refunds are inaccurate, reported results of operations could differ from the amount we previously accrued. (d) Allowance for Doubtful Accounts The Company records a provision for doubtful accounts based on its historical experience of write-offs and a detailed assessment of our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, management considers the age of the accounts receivable, historical write-offs, the creditworthiness of the advertiser, the economic conditions of the advertiser’s industry, and general economic conditions, among other factors. Should any of these factors change, the estimates made by management will also change, which could impact the level of the future provision for doubtful accounts. Specifically, if the financial condition of our advertisers were to deteriorate, affecting their ability to make payments, additional provision for doubtful accounts may be required. (e) Advertising Costs Advertising costs are expensed as incurred. Online advertising is expensed as incurred over the period the advertising is displayed. Advertising costs amounted to $10.3 million and $8.5 million for years ended December 31, 2019 and 2018 , respectively. (f) Operating Leases The Company determines if an arrangement contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease payments used to determine the operating lease assets may include lease incentives and stated rent increases. The Company does not include options to extend or terminate until it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The Company elected not to recognize leases with an initial term of 12 months or less on its consolidated balance sheets. The Company’s leases are reflected in operating lease ROU assets, operating lease liabilities and long-term operating lease liabilities in our accompanying consolidated balance sheet as of December 31, 2019 . Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company also has a real estate lease agreement which is subleased to a third party. The Company recognizes sublease income in Other income (expense), net on a straight-line basis over the lease term in its consolidated statements of operations. (g) Stock-Based Compensation The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized as expense over the related employees’ requisite service periods in the Company’s consolidated statements of operations. See Note 8 to the accompanying consolidated financial statements for a further discussion on stock-based compensation. (h) Foreign Currency All foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income (loss). Realized gains and losses from foreign currency transactions are recognized as gain or loss on foreign currency in the consolidated statements of operations. Total foreign currency transaction losses of $64,000 for 2019, and total foreign currency transaction net gain of $135,000 for 2018, are included in Other income (loss), net in the Company’s consolidated statements of operations. (i) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards and credit carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, valuation allowances must be established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Significant judgment is required in evaluating the Company's uncertain tax positions and determining the Company's provision for income taxes. Although the Company believes it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the progress or closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. (j) Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to certain changes in equity that are excluded from net income. For the Company, other comprehensive income (loss) includes foreign currency translation adjustments. Total comprehensive income (loss) for all periods presented has been disclosed in the consolidated statements of comprehensive loss. (k) Certain Risks and Uncertainties Our business is subject to risks associated with our ability to attract and retain advertisers and offer products or services on compelling terms to our members. We are exposed to the risk of the travel and tourism industry and the risk of online commerce and payment security systems. The Company’s cash, cash equivalents and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. The accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. As of December 31, 2019 and 2018, the Company did not have any customers that accounted for 10% or more of accounts receivable. (l) Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of highly liquid investments with maturities of three months or less on the date of purchase. Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to refundable deposits and funds held in escrow. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the total amounts shown in the statements of cash flows (in thousands): December 31, December 31, 2019 2018 Cash and cash equivalents $ 19,505 $ 18,017 Restricted cash 1,205 1,444 Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows $ 20,710 $ 19,461 (m) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Additions and improvements are capitalized. Maintenance and repairs are expensed as incurred. The Company also includes in fixed assets the capitalized cost of internal-use software and website development, including software used to upgrade and enhance its website and processes supporting the Company’s business in accordance with the framework established by the FASB accounting guidance for accounting for the cost of computer software developed or obtained for internal use and accounting for website development costs. Costs incurred in the planning stage and operating stage are expensed as incurred while costs incurred in the application development stage and infrastructure development stage are capitalized, assuming such costs are deemed to be recoverable. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 3 to 5 years for computer hardware and software, capitalized internal-use software and website development costs, and office equipment and office furniture. The Company depreciates leasehold improvements over the term of the lease or the estimated useful life of the asset, whichever is shorter. (n) Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with the accounting standard relating to impairment of long-lived assets, which requires an impairment loss to be recognized on assets to be held and used if the carrying amount of a long-lived asset group is not recoverable from its undiscounted cash flows. The amount of the impairment loss is measured as the difference between the carrying amount and the fair value of the asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. No impairment loss was recognized during years ended December 31, 2019 and 2018 . (o) Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which provides new guidance on the measurement of credit losses for financial assets measured at amortized cost, which includes accounts receivable. The new guidance replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. This update is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For Smaller Reporting Companies, the standard will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Entities are required to apply this update on a modified retrospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact on its financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-15, "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract." The new guidance required a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for calendar-year public business entities in 2020. Early adoption is permitted. The Company does not expect the adoption to have a material impact on its financial position, results of operations and cash flows. (p) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued an ASU 2016-02, "Leases," codified in Accounting Standard Codification 842 ("ASC 842"), which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability on its balance sheet. The Company adopted ASC 842 on January 1, 2019, using the alternative modified transition method with no restatement of prior periods or cumulative adjustment to retained earnings. Upon adoption, the Company elected the package of transition practical expedients: (i) not to reassess prior conclusions related to whether any expired or existing contracts are or contain leases; (ii) not to reassess the lease classification for any expired or existing leases; (iii) not to reassess initial direct costs for existing leases; and (iv) not to reassess certain land easements. Upon adoption of the standard effective January 1, 2019, the Company recognized an operating lease right-of-use assets of approximately $13.4 million and a corresponding operating lease liability of approximately $16.0 million , which included reclassifying existing deferred rent liability of $2.6 million to operating lease right-of-use assets. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income 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 per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 Net income $ 4,155 $ 4,661 Weighted average common shares—basic 11,809 12,323 Effect of dilutive securities: stock options 226 187 Weighted average common shares—diluted 12,035 12,510 Net income per share—basic $ 0.35 $ 0.38 Net income per share—diluted $ 0.35 $ 0.37 For the years ended December 31, 2019 and 2018 , options to purchase 200,000 and 200,000 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. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid expenses and other consist of the following (in thousands): December 31, 2019 2018 Prepaid expenses $ 2,303 $ 1,780 Other current assets 193 167 Total prepaid expenses and other $ 2,496 $ 1,947 Property and equipment consist of the following (in thousands): December 31, 2019 2018 Computer hardware and software $ 3,427 $ 3,353 Office equipment and office furniture 8,148 7,814 Capitalized internal-use software and website development 4,390 4,383 Leasehold improvements 6,247 6,140 22,212 21,690 Less accumulated depreciation and amortization (19,230 ) (17,900 ) Total $ 2,982 $ 3,790 Depreciation expense was $1.2 million and $1.6 million for the years ended December 31, 2019 and 2018 , respectively. Amortization of capitalized internal-use software and website development costs was $157,000 and $247,000 for the years ended December 31, 2019 and 2018 , respectively. Changes to the allowance for doubtful accounts and reserve for member refunds are as follows (in thousands): Allowance for doubtful accounts Reserve for Balance at January 1, 2018 $ 315 $ 530 Additions — charged to costs and expenses, or contra revenue 482 688 Deductions — recoveries of amounts previously reserved (104 ) — Deductions — write-offs or refunds (1 ) (839 ) Balance at December 31, 2018 692 379 Additions — charged to costs and expenses, or contra revenue 610 1,007 Deductions — recoveries of amounts previously reserved (147 ) — Deductions — write-offs or refunds (29 ) (1,093 ) Balance at December 31, 2019 $ 1,126 $ 293 Local Deals and Getaway merchant payable included in accounts payable was $13.7 million and $11.8 million , as of December 31, 2019 and 2018 , respectively. Accrued expenses and other consist of the following (in thousands): December 31, 2019 2018 Accrued advertising expense $ 1,774 $ 1,875 Accrued compensation expense 2,955 2,813 Reserve for member refunds 293 382 Other accrued expenses 2,455 2,266 Deferred rent — 517 Total accrued expenses and other $ 7,477 $ 7,853 At December 31, 2019 and 2018 , accounts receivable, accounts payable and accrued expenses are not measured at fair value; however, the Company believes that the carrying amounts of these assets and liabilities are a reasonable estimate of their fair value because of their relative short maturity. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is subject to various claims and legal proceedings, either asserted or unasserted, that arise in the ordinary course of business. The Company accrues for legal contingencies if the Company can estimate the potential liability and if the Company believes it is probable that the case will be ruled against it. If a legal claim for which the Company did not accrue is resolved against it, the Company would record the expense in the period in which the ruling was made. The Company believes that the likelihood of an ultimate amount of liability, if any, for any pending claims of any type (alone or combined) that will materially affect the Company’s financial position, results of operations or cash flows is remote. The ultimate outcome of any litigation is uncertain, however, and unfavorable outcomes could have a material negative impact on the Company’s financial condition and operating results. Regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, negative publicity, diversion of management resources and other factors. The Company was formed as a result of a combination and merger of entities founded by the Company’s principal stockholder, Ralph Bartel. In 2002, Travelzoo.com Corporation was merged into Travelzoo. Under and subject to the terms of the merger agreement, holders of promotional shares of Travelzoo.com Corporation (“Netsurfers”) who established that they had satisfied certain prerequisite qualifications were allowed a period of 2 years following the effective date of the merger to receive one share of Travelzoo in exchange for each share of common stock of Netsurfers. In 2004, two years following the effective date of the merger, certain promotional shares remained unexchanged. As the right to exchange these promotional shares expired, no additional shares were reserved for issuance. Thereafter, the Company began to offer a voluntary cash program for those who established that they had satisfied certain prerequisite qualifications for Netsurfers promotional shares as further described below. During 2010 through 2014, the Company became subject to unclaimed property audits of various states in the United States related to the above unexchanged promotional shares and completed settlements with all states. Although the Company has settled the unclaimed property claims with all states, the Company may still receive inquiries from certain potential Netsurfers promotional stockholders that had not provided their state of residence to the Company by April 25, 2004. Therefore, the Company is continuing its voluntary program under which it makes cash payments to individuals related to the promotional shares for individuals whose residence was unknown by the Company and who establish that they satisfy the original conditions required for them to receive shares of Netsurfers, and who failed to submit requests to convert their shares into shares of Travelzoo within the required time period. This voluntary program is not available for individuals whose promotional shares have been escheated to a state by the Company, except those individuals for which their residence was unknown to the Company. The Company did not make any material payments for 2019 and 2018. The total cost of this program cannot be reliably estimated because it is based on the ultimate number of valid requests received and future levels of the Company’s common stock price. The Company’s common stock price affects the liability because the amount of cash payments under the program is based in part on the recent level of the stock price at the date valid requests are received. The Company does not know how many of the requests for shares originally received by Netsurfers in 1998 were valid, but the Company believes that only a portion of such requests were valid. In order to receive payment under this voluntary program, a person is required to establish that such person validly held shares in Netsurfers. The Company leases office space in Australia, Canada, China, France, Germany, Hong Kong, Japan, Singapore, Spain, the U.K., and the U.S. under operating leases which expire between February 2020 and November 2024. Rent expense was $5.8 million for each of the years ended December 31, 2019 and 2018 , respectively. The Company’s rental income from sublease was approximately $347,000 and $123,000 for the years ended December 31, 2019 and 2018. See Note 13 - Leases for more information. The Company has purchase commitments aggregating approximately $50,000 as of December 31, 2019, which represent the minimum obligations the Company has under agreements with certain suppliers. These minimum obligations are less than the Company's projected use for those periods. Payments may be more than the minimum obligations based on actual use. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes significant changes to the U.S. corporate income tax system including: a federal corporate rate reduction from 35% to 21%; limitations on the deductibility of interest expense and executive compensation; creation of the base erosion anti-abuse tax (“BEAT”), a new minimum tax; and the transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system. The change to a modified territorial tax system resulted in a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”), with future distributions not subject to U.S. federal income tax when repatriated. A majority of the provisions in the Tax Act are effective January 1, 2018. In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. The Company reflected the income tax effects of those aspects of the Tax Act for which the accounting is complete. To the extent a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, a company should record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In connection with the Company's initial analysis of the impact of the Tax Act, the Company has recorded a provisional estimate of discrete net tax expense of $508,000 for the period ended December 31, 2017. This discrete expense consists of provisional estimates of zero expense for the Transition Tax, $173,000 net benefit for the decrease in the Company's deferred tax liability on unremitted foreign earnings, and $681,000 net expense for remeasurement of the Company's deferred tax assets and liabilities for the corporate rate reduction. During the year ended December 31, 2018, we completed our accounting for the income tax effects of the Tax Act. We did not recognize any additional discrete net tax expense in addition to the provisional amounts recorded at December 31, 2017 for the enactment-date effects of the Tax Act, for a total of $508,000 of discrete net tax expense. As of December 31, 2019, the Company is permanently reinvested in certain Non-U.S. subsidiaries and does not have a deferred tax liability related to its undistributed foreign earnings. The estimated amount of the unrecognized deferred tax liability attributed to future withholding taxes on dividend distributions of undistributed earnings for certain non-U.S. subsidiaries, which the Company intends to reinvest the related earnings indefinitely in its operations outside the U.S., is approximately $484,000 at December 31, 2019. The components of income before income tax expense are as follows (in thousands): Year Ended December 31, 2019 2018 U.S. $ 11,553 $ 8,677 Foreign (2,604 ) (391 ) $ 8,949 $ 8,286 Income tax expense consists of current and deferred components categorized by federal, state and foreign jurisdictions, as shown below. The current provision is generally that portion of income tax expense that is currently payable to the taxing authorities. The Company makes estimated payments of these amounts during the year. The deferred tax provision (benefit) results from changes in the Company’s deferred tax assets (future deductible amounts) and tax liabilities (future taxable amounts), which are presented in the table below: Current Deferred Total (In thousands) Year Ended December 31, 2019 Federal $ 2,399 $ 257 $ 2,656 State 516 47 563 Foreign 1,539 36 1,575 $ 4,454 $ 340 $ 4,794 Year Ended December 31, 2018 Federal $ 1,938 $ (260 ) $ 1,678 State 650 22 672 Foreign 1,461 (186 ) 1,275 $ 4,049 $ (424 ) $ 3,625 Income tax expense differed from the amounts computed by applying the U.S. federal statutory tax rate applicable to the Company’s level of pretax income as a result of the following (in thousands): Year Ended December 31, 2019 2018 Federal tax at statutory rates $ 1,879 $ 1,738 State taxes, net of federal income tax benefit 453 586 Change of valuation allowance 2,032 1,565 Uncertain tax positions 61 (177 ) Foreign income taxed at different rates (261 ) (273 ) Foreign equity investment 172 — Non-deductible expenses and other 458 186 Total income tax expense $ 4,794 $ 3,625 The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 11,634 $ 9,805 Operating lease liabilities 2,632 — State income taxes 100 82 Accruals and allowances 327 292 Stock-based compensation 643 910 Unrealized foreign exchange losses 900 151 Deferred revenue — 377 Total deferred tax assets 16,236 11,617 Valuation allowance (11,634 ) (9,723 ) Total deferred tax assets net of valuation allowance 4,602 1,894 Deferred tax liabilities: Deferred revenue (72 ) — Deferred rent — (80 ) Operating lease right-of-use assets (2,423 ) — Property, equipment and intangible assets (56 ) (169 ) Total deferred tax liabilities (2,551 ) (249 ) Net deferred tax assets $ 2,051 $ 1,645 Changes in the deferred tax assets valuation allowance for the years ended December 31, 2018 and 2019 are as follows (in thousands): Balance at the beginning of the year Charged (Credited) to expenses Charged (Credited) to other account (*) Balance at end of year Deferred tax assets valuation allowance 2018 $ 9,249 1,565 (1,091 ) $ 9,723 2019 $ 9,723 2,032 (121 ) $ 11,634 (*) Amounts not charged (credited) to expenses are charged (credited) to stockholder's equity or deferred tax assets (liabilities). As of December 31, 2019 , the Company has a valuation allowance of approximately $11.6 million related to foreign net operating loss (“NOL”) carryforwards of approximately $47.3 million for which it is more likely than not that the tax benefit will not be realized. The amount of the valuation allowance represented an increase of approximately $1.9 million over the amount recorded as of December 31, 2018 , and was due to the increase in foreign operating losses. If not utilized, the foreign NOL of $26.6 million may be carried forward indefinitely, and $20.7 million will expire at various times between 2020 and 2028. The total amount of gross unrecognized tax benefits was $178,000 as of December 31, 2019 , of which up to $152,000 would affect the Company’s effective tax rate if realized. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits in 2018 and 2019 is as follows (in thousands): Gross unrecognized tax benefits balance at January 1, 2018 $ 725 Increase related to current year tax positions 15 Settlements (501 ) Gross unrecognized tax benefits balance at December 31, 2018 239 Increase related to current year tax positions 7 Settlements (68 ) Gross unrecognized tax benefits balance at December 31, 2019 $ 178 The Company’s policy is to include interest and penalties related to unrecognized tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction in the overall income tax provision in the period that such determination is made. At December 31, 2019 , the Company had approximately $207,000 in accrued interest. The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is subject to U.S. federal and certain state tax examinations for certain years after 2011 and is subject to California tax examinations for years after 2006. The material foreign jurisdictions where the Company is subject to potential examinations by tax authorities are the France, Germany, Spain and United Kingdom for tax years after 2010. Although the timing of initiation, resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of the gross unrecognized tax benefits related to the method of computing income taxes in certain jurisdictions and losses reported on certain income tax returns could significantly change in the next 12 months. These changes may occur through settlement with the taxing authorities or the expiration of the statute of limitations on the returns filed. The Company is unable to estimate the range of possible adjustments to the balance of the gross unrecognized tax benefits. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): Year Ended December 31, 2019 2018 Beginning balance $ (4,214 ) $ (3,597 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 762 (617 ) Ending balance $ (3,452 ) $ (4,214 ) There were no amounts reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2019 and 2018 . Accumulated other comprehensive income (loss) consists of foreign currency translation gain or loss. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company maintains a 401(k) Profit Sharing Plan & Trust (the “401(k) Plan”) for its employees in the United States. The 401(k) Plan allows employees of the Company to contribute up to 80% of their eligible compensation, subject to certain limitations. Since 2006, the Company matches employee contributions up to $1,500 per year. Employee contributions are fully vested upon contribution, whereas the Company’s matching contributions are fully vested after the first year of service. The Company also has various defined contribution plans for its international employees. The Company’s contributions to these benefit plans were approximately $2.1 million and $2.0 million for the years ended December 31, 2019 and 2018 , respectively. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Options | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Stock Options | Stock-Based Compensation and Stock Options The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized on a straight-line basis as expense over the related employees’ requisite service periods in the Company’s consolidated statements of income. In January 2012, the Company granted certain executives stock options to purchase 100,000 shares of common stock with an exercise price of $28.98 , of which 25,000 options vest and become exercisable annually starting on January 23, 2013. The options expire in January 2022. During 2014, 25,000 options were canceled and 25,000 options were forfeited upon the departure of an executive. During 2019, the remaining 50,000 options were canceled upon the departure of an executive. Stock-based compensation related to these options was fully expensed. In September 2015, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $8.07 , of which 50,000 options became exercisable quarterly starting March 31, 2016. The options expire in September 2025. As of December 31, 2019 , 400,000 options were vested and outstanding. In March 2016, the Company granted certain executives stock options to purchase 150,000 shares of common stock with an exercise price of $8.55 , of which 37,500 options vest and become exercisable annually starting on March 7, 2017. The options expire in March 2026. In 2017, 37,500 options were forfeited and 12,500 options were canceled upon the departure of an executive and the compensation expense of $19,000 was reversed. In 2018, 50,000 options were forfeited upon the departure of an executive and the compensation expense of $59,000 was reversed. During 2019, the remaining 50,000 options were net exercised for 4,000 shares of common stock. In October 2017, the Company granted an executive stock options to purchase 400,000 shares of common stock with an exercise price of $6.95 , of which 50,000 shares are exercisable quarterly starting March 31, 2018 and ending on December 31, 2019. The options expire in October 2027. During 2019, 250,000 options were exercised. As of December 31, 2019 , 150,000 options were vested and outstanding. Total stock-based compensation related to these option grants was $573,000 for 2019. Stock-based compensation related to these options was fully expensed as of December 31, 2019 . In April 2018, the Company granted an employee stock options to purchase 50,000 shares of common stock with an exercise price of $10.50 . The options vest in twelve equal installments. The first installment vested on April 26, 2018, and the remaining eleven installments vest from June 30, 2018 to December 31, 2020. During 2019, the Company recognized $34,000 stock-based compensation and canceled the 50,000 options upon the departure of the employee. In May 2018, the Company granted an employee options to purchase 50,000 shares of common stock with an exercise price of $14.70 , of which 12,500 options will vest and become exercisable annually starting on May 2019. As of December 31, 2019 , 50,000 options were outstanding and 12,500 of these options was vested. As of December 31, 2019, there was approximately $213,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 2.4 years . In June 2018, the Company granted a nonemployee consultant options to purchase 100,000 shares of common stock with an exercise price of $17.75 , of which 20,000 options vested and became exercisable on June 8, 2018 , 30,000 shares vest no later than July 31, 2018 if certain performance targets were met, and 50,000 shares vest no later than June 30, 2019 if certain performance targets are met. The Company used the contractual life when determining the value of this option. The performance targets for the 30,000 share options were not met by July 31, 2018 and the nonemployee consultant ceased to provide services to the Company. As a result, 80,000 unvested shares of options were forfeited and 20,000 vested options were canceled in 2018 . In June 2018, the Company granted an employee options to purchase 50,000 shares of common stock with an exercise price of $16.65 , of which 12,500 options will vest and become exercisable annually starting on June 2019. As of December 31, 2019 , 50,000 options were outstanding and 12,500 of these options was vested. As of December 31, 2019, there was approximately $206,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 2.5 years . In May 2019, the Company granted an employee options to purchase 100,000 shares of common stock with an exercise price of $19.28 , of which 10,000 options vested and became exercisable in May 2019, 15,000 options vested and become exercisable in September 2019, and the remaining 75,000 will vest in three equal installments starting on May 20, 2021 and ending on May 20, 2023. As of December 31, 2019 , 100,000 options were outstanding and 25,000 of these options were vested. As of December 31, 2019 , there was approximately $420,000 of unrecognized stock-based compensation expense relating to these options. This amount is expected to be recognized over 3.4 years . The Company recorded $993,000 and $915,000 of stock-based compensation in general and administrative expenses for fiscal years 2019 and 2018 , respectively. The Company utilized the Black-Scholes option pricing model to value the stock options. The Company used an expected life as defined under the simplified method, which is using an average of the contractual term and vesting period of the stock options. The risk-free interest rate used for the award is based on the U.S. Treasury yield curve in effect at the time of grant. The Company accounted for forfeitures as they occur. The historical volatility was calculated based upon implied volatility of the Company's historical stock prices. The fair value of 2019 and 2018 stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: 2019 2018 Weighted-average fair value of options granted per share $ 8.78 $ 6.63 Historical volatility 60 % 46 % Risk-free interest rate 2.10 % 2.84 % Dividend yield — — Expected life in years 3.6 5.7 As of December 31, 2019 , there was approximately $419,000 of unrecognized stock-based compensation expense related to outstanding 2019 stock options, expected to be recognized over 3.4 and approximately $418,000 of unrecognized stock-based compensation expense related to outstanding 2018 stock options, expected to be recognized over 2.4 years. There was no unrecognized stock-based compensation expense relating stock options granted prior to 2018. Option activities during the years ended December 31, 2018 and 2019 were as follows: Shares Weighted-Average Weighted-Average Aggregate (In thousands) Outstanding at January 1, 2018 950,000 $ 8.75 8.48 years Option Granted 250,000 $ 15.47 Options forfeited and canceled (150,000 ) $ 14.68 Outstanding at December 31, 2018 1,050,000 $ 9.50 7.53 years Option Granted 100,000 $ 19.28 Exercised options (300,000 ) $ 7.22 Options forfeited and canceled (100,000 ) $ 19.74 Outstanding at December 31, 2019 750,000 $ 10.35 6.01 years $ 1,615 Exercisable and fully vested at December 31, 2019 600,000 $ 8.57 6.22 years $ 1,615 Outstanding at December 31, 2019 and expected to vest thereafter 150,000 $ 17.48 5.15 years $ — The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of years ended December 31, 2019 and 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2019 and 2018 . This amount changes based on the fair value of the Company’s stock. The Company’s policy is to issue shares from the authorized shares to fulfill stock option exercises. Outstanding options at December 31, 2019 were as follows: Exercise Price Options Options Outstanding Weighted-Average Options Outstanding Options Exercisable $ 8.07 400,000 5.75 years $ 8.07 400,000 5.75 years $ 6.95 150,000 7.84 years $ 6.95 150,000 7.84 years $ 14.70 50,000 8.37 years $ 14.70 12,500 8.37 years $ 16.65 50,000 3.47 years $ 16.65 12,500 3.47 years $ 19.28 100,000 4.39 years $ 19.28 25,000 4.39 years 750,000 600,000 |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program The Company's stock repurchase programs assist in offsetting the impact of dilution from employee equity compensation and assist with capital allocation. Management is allowed discretion in the execution of the repurchase program based upon market conditions and consideration of capital allocation. In March 2018, the Company announced a stock repurchase program authorizing the repurchase of up to 500,000 shares of the Company’s outstanding common stock. During the year ended December 31, 2018, the Company repurchased 500,000 shares of common stock for an aggregate purchase price of $5.3 million , which were retired and recorded as a reduction of additional paid-in capital until extinguished with the remaining amount reflected as a reduction of retained earnings. In February 2019, the Company entered into a Stock Repurchase Agreement with Azzurro, a significant shareholder of the Company and repurchased 100,000 shares of the Company’s common stock for an aggregate purchase price of $1.6 million , which were retired and recorded as a reduction of additional paid-in capital until extinguished with the remaining amount reflected as a reduction of retained earnings. In May 2019, the Company announced a stock repurchase program authorizing the repurchase of up to 1,000,000 shares of the Company’s outstanding common stock. During the year ended December 31, 2019, the Company repurchased 436,369 shares of common stock for an aggregate purchase price of $7.2 million , which were retired and recorded as a reduction of additional paid-in capital until extinguished with the remaining amount reflected as a reduction of retained earnings. In November 2019, the Company entered into a SRA with Holger Bartel to repurchase an aggregate of 200,000 shares of the Company’s common stock for an aggregate purchase price of $2.0 million , which were retired and recorded as a reduction of additional paid-in capital until extinguished with the remaining amount reflected as a reduction of retained earnings. |
Segment Reporting and Significa
Segment Reporting and Significant Customer Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting and Significant Customer Information | Segment Reporting and Significant Customer Information The Company manages its business geographically and has three reportable operating segments: Asia Pacific, Europe and North America. Asia Pacific consists of the Company's operations in Australia, China, Hong Kong, Japan, and Southeast Asia. Europe consists of the Company’s operations in France, Germany, Spain, and the U.K. North America consists of the Company’s operations in Canada and the U.S. Management relies on an internal management reporting process that provides revenue and segment operating income for making financial decisions and allocating resources. Management believes that segment revenues and operating income are appropriate measures of evaluating the operational performance of the Company’s segments. The following is a summary of operating results and assets by business segment (in thousands): Year Ended December 31, 2019 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 6,402 $ 39,556 $ 65,454 $ 111,412 Intersegment revenues 88 (2,658 ) 2,570 — Total net revenues $ 6,490 $ 36,898 $ 68,024 $ 111,412 Operating income (loss) $ (7,488 ) $ 4,461 $ 12,491 $ 9,464 Year Ended December 31, 2018 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 7,869 $ 36,468 $ 66,985 $ 111,322 Intersegment revenues (10 ) (319 ) 329 — Total net revenues $ 7,859 $ 36,149 $ 67,314 $ 111,322 Operating income (loss) $ (6,322 ) $ 4,973 $ 9,587 $ 8,238 As of December 31, 2019 Asia Pacific Europe North Elimination Consolidated Long-lived assets $ 121 $ 263 $ 2,598 $ — $ 2,982 Total assets $ 3,215 $ 74,604 $ 66,803 $ (90,084 ) $ 54,538 As of December 31, 2018 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 145 $ 313 $ 3,332 $ — $ 3,790 Total assets $ 3,811 $ 62,942 $ 62,433 $ (85,762 ) $ 43,424 Revenue for each segment is recognized based on the customer location within a designated geographic region. Property and equipment are attributed to the geographic region in which the assets are located. For the years ended December 31, 2019 and 2018 , the Company did not have any customers that accounted for 10% or more of revenue. As of December 31, 2019 and 2018, 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 by category and segment. Travel revenue includes travel publications ( Top 20, Website, Newsflash, Travelzoo Network ), Getaway vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings) (in thousands). Year Ended December 31, 2019 2018 Asia Pacific Travel $ 6,274 $ 7,351 Local 216 508 Total Asia Pacific revenues 6,490 7,859 Europe Travel 32,081 30,856 Local 4,817 5,293 Total Europe revenues 36,898 36,149 North America Travel 57,863 56,145 Local 10,161 11,169 Total North America revenues 68,024 67,314 Consolidated Travel 96,218 94,352 Local 15,194 16,970 Total revenues $ 111,412 $ 111,322 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 individual countries that were 10% or more of total revenue (in thousands): Year Ended December 31, 2019 2018 Revenue United States $ 61,375 $ 61,257 United Kingdom 19,961 21,034 Germany 12,176 12,257 Rest of the world 17,900 16,774 Total revenues $ 111,412 $ 111,322 The following table sets forth long lived assets by geographic area (in thousands): December 31, 2019 2018 United States $ 2,359 $ 3,035 Rest of the world 623 755 Total long lived assets $ 2,982 $ 3,790 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Ralph Bartel, who founded Travelzoo and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc.("Azzurro"). As of December 31, 2019 , Azzurro is the Company's largest stockholder, holding approximately 47.8% of the Company's outstanding shares. Azzurro currently holds a proxy given to it by Holger Bartel that provides it with a total of 48.2% of the voting power. The Company granted Holger Bartel 400,000 stock options that vest through December 31, 2017 on September 28, 2015 and granted 400,000 stock options that vest through December 31, 2019 on October 30, 2017. On September 5, 2019, the Company granted 400,000 stock options that vest through December 31, 2021 on September 5, 2019. This grant is subject to approval by the shareholders of the Company at the 2020 annual meeting of shareholders and may be unwound if approval is not received. See Note 8 for further information. Holger Bartel is the brother of Ralph Bartel and is our Global Chief Executive Officer. In April 2018, the Company entered into an agreement with WeekenGO, a start-up company in Germany. The Company originally invested $3.0 million in WeekenGO for a 25% ownership interest in April 2018. In April 2019, the Company invested an additional $673,000 in WeekenGO and increased the Company's ownership interest to 26.6% . On February 11, 2020,Travelzoo signed an amended investment agreement with WeekenGO and agreed to invest an additional $1.7 million to increase the Company's ownership interest to 33.7% if WeekenGO meets certain internal targets. WeekenGO signed a $2.1 million insertion order for advertising with the Company in 2018. The Company’s advertising revenues from WeekenGO in the years ended December 31, 2019 and 2018 were $1.2 million and $319,000 , respectively. Accounts receivable from WeekenGO as of December 31, 2019 and 2018 were $230,000 and $58,000 , respectively, included in Accounts Receivable in the Consolidated Balance Sheets. On February 13, 2019, the Company entered into a SRA with Azzurro to repurchase an aggregate of 100,000 shares of the Company’s common stock for an aggregate purchase price of $1.6 million . The SRA provides that the purchase price is based on the five (5) day volume weighted average price calculated using the VWAP function on Bloomberg, from the dates of February 6, 2019 through and including February 12, 2019, minus a five percent ( 5% ) discount. The Company’s board of directors established a special committee (the “Special Committee”), consisting of independent and disinterested directors who engaged independent legal counsel and an independent financial advisor, to authorize the transaction. On November 9, 2019, the Company entered into a SRA with Holger Bartel to repurchase an aggregate of 200,000 shares of the Company’s common stock for an aggregate purchase price of $2.0 million . The SRA provides that the purchase price is based on the 10-day volume weighted average price calculated using the VWAP function on Bloomberg, from the dates of October 22, 2019 through and including November 4, 2019, less 4.4% . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for real estate and certain equipment. The Company leases office space in Australia, Canada, China, France, Germany, Hong Kong, Japan, Singapore, Spain, the U.K., and the U.S. under operating leases. Our leases have remaining lease terms ranging from less than one year to November 2024. Certain leases include one or more options to renew. In addition, we sublease certain real estate to a third party. All of our leases qualify as operating leases. The following table summarizes the components of lease expense for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Operating lease cost $ 4,768 Short-term lease cost 815 Variable lease cost 1,242 Sublease income (336 ) Total lease cost $ 6,489 For the year ended December 31, 2019 , cash payments against the operating lease liabilities totaled $5.6 million . ROU assets obtained in exchange for lease obligations was $4.1 million for the year ended December 31, 2019 . The following table summarizes the presentation in our consolidated balance sheet of our operating leases (in thousands): As of December 31, 2019 Assets: Operating lease right-of-use assets $ 8,886 Liabilities: Operating lease liabilities $ 5,301 Long-term operating lease liabilities 8,238 Total operating lease liabilities $ 13,539 Weighted average remaining lease term (years) 3.42 Weighted average discount rate 4.4 % Maturities of lease liabilities were as follows (in thousands): Years ending December 31, 2020 $ 5,440 2021 3,790 2022 2,426 2023 1,927 2024 1,038 Thereafter — Total lease payments 14,621 Less interest (1,082 ) Present value of operating lease liabilities $ 13,539 |
Unaudited Quarterly Information
Unaudited Quarterly Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Information | Unaudited Quarterly Information The following represents unaudited quarterly financial data for 2019 and 2018 (in thousands, except per share amounts): Quarter Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Revenues $ 26,898 $ 25,505 $ 28,184 30,825 $ 27,062 $ 25,301 $ 28,075 $ 30,884 Cost of revenues 3,206 2,980 2,757 2,946 2,880 2,987 3,016 3,385 Gross profit 23,692 22,525 25,427 27,879 24,182 22,314 25,059 27,499 Operating expenses: Sales and marketing 15,154 14,233 15,357 15,606 13,974 13,375 15,628 15,542 Product development 1,905 1,478 1,799 1,703 1,799 2,297 2,386 2,511 General and administrative 5,778 5,600 5,847 5,599 5,620 5,928 5,967 5,789 Total operating expenses 22,837 21,311 23,003 22,908 21,393 21,600 23,981 23,842 Income from operations 855 1,214 2,424 4,971 2,789 714 1,078 3,657 Other income (loss), net (135 ) (138 ) (143 ) (99 ) (52 ) (91 ) 30 161 Income from operations before income taxes 720 1,076 2,281 4,872 2,737 623 1,108 3,818 Income tax expense 1,319 770 953 1,752 1,173 505 631 1,316 Net income (loss) $ (599 ) $ 306 $ 1,328 $ 3,120 $ 1,564 $ 118 $ 477 $ 2,502 Net income (loss) per share—basic: $ (0.05 ) $ 0.03 $ 0.11 $ 0.26 $ 0.13 $ 0.01 $ 0.04 $ 0.20 Net income (loss) per share—diluted $ (0.05 ) $ 0.03 $ 0.11 $ 0.26 $ 0.13 $ 0.01 $ 0.04 $ 0.20 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 13, 2020, Travelzoo (the "Company") entered into a Stock Purchase Agreement (the "SPA") with JFC Travel Group Co. ("JFC"), which owns and operates Jack's Flight Club, and the sellers identified on the signature pages thereto (the "Sellers"), for the purchase of up to 100% of the outstanding capital stock of JFC (the "Shares"). Pursuant to the SPA, on January 13, 2020, the Sellers sold 60% of the Shares to the Company for an aggregate purchase price of $12,000,000 , payable in cash and promissory notes. The promissory notes contain an interest rate of 1.6% per annum and a due date of January 31, 2020, with a one-time right to extend the maturity date up to April 30, 2020, which the Company elected to do. The remaining 40% of the Shares are subject to a call/put option exercisable by the Company or the Sellers, as applicable, on or around January 1, 2021, subject to the terms and conditions set forth in the SPA. The acquisition will be accounted for using the purchase method of accounting in accordance with the business acquisition guidance. Under the purchase accounting method, the total estimated purchase consideration of the acquisition will be allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their relative fair values. The excess of the purchase consideration over the net tangible and identifiable intangible assets acquired and liabilities will be recorded as goodwill. As of the date of the filing of this Form 10-K, the purchase price allocation has not been prepared as there has not been enough time to complete the related activities. On February 28, 2020, Travelzoo entered into an agreement with Adobe Inc. whereby Adobe will provide certain on-demand, managed and professional services for a total consideration of approximately $1.6 million annually for three years, with the first year payable in October 2020 (the “Adobe Agreement”). Travelzoo has a one-time right to terminate the Adobe Agreement at the end of year one, pursuant to the terms and conditions set forth in the Adobe Agreement. On March 3, 2020 (the “New Premises Commencement Date”), Travelzoo moved its New York headquarters from the 37 th floor to the 35 th floor of the same building, pursuant to that certain Second Amendment to Lease, dated as of August 8, 2019, by and between 590 Madison Avenue, LLC and the Company (the “New York Lease”). Pursuant to the New York Lease, upon the New Premises Commencement Date, the annual fixed rent as provided for in the original lease agreement will continue for 10 years until March 2030, with no increases. Additionally, the landlord performed the construction, renovation and relocation work and paid Travelzoo $5.0 million as an incentive, of which $2.5 million was received in November 2019 and $2.5 million was received in March 2020. The Company accounted for the lease incentives as a reduction to the right-of-use asset. The additional lease payments under the New York Lease are approximately $7.4 million . On March 10, 2020, the Company approved its plan to exit its business in Asia Pacific. The Asia Pacific operating segment has incurred losses for several years. Management is evaluating its options to exit the business which could include a sale or disposal of the business or related assets. The Company is also in the process of evaluating the impact on its financial statements for any restructuring or disposal costs that might be incurred as a result of this action but an estimate of such costs cannot be made at this time. As a result of the 2019 Novel Coronavirus outbreak in the first quarter of 2020, the Company expects that its financial results may be negatively impacted in the first quarter of 2020 and beyond, but the extent and duration of such impact in the long-term is uncertain as it is dependent on future developments that can not be reasonably estimated at this time, including but not limited to the severity and transmission rate of the virus, the extent and effectiveness of containment actions taken, including mobility restrictions, and the impact of these and other factors on travel behavior. A significant adverse change in the business climate could affect the value of the Company’s long-lived assets, including its equity method investment in WeekenGO. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation Travelzoo® provides our 30 million members insider deals and one-of-a-kind experiences personally reviewed by one of our deal experts around the globe. With 22 offices worldwide, we have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. For over 20 years we have worked in partnership with more than 5,000 top travel suppliers–our long-standing relationships give Travelzoo members access to irresistible deals. Travelzoo's revenues are generated primarily from advertising fees. Our publications and products include the Travelzoo website, the Travelzoo iPhone and Android apps, the Travelzoo Top 20 email newsletter, the Newsflash email alert service, and the Travelzoo Network , a network of third-party websites that list travel deals published by Travelzoo. The Travelzoo website includes Local Deals and Getaway listings that allow our members to purchase vouchers for deals from local businesses such as spas, hotels and restaurants. We receive a percentage of the face value of the voucher from the local businesses. Ralph Bartel, who founded Travelzoo (the "Company") and who is a Director of the Company is the sole beneficiary of the Ralph Bartel 2005 Trust, which is the controlling shareholder of Azzurro Capital Inc. ("Azzurro"). As of December 31, 2019 , Azzurro is the Company's largest stockholder, holding approximately 47.8% of the Company's outstanding shares. Azzurro currently holds a proxy given to it by Holger Bartel that provides it with a total of 48.2% of the voting power. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with accounting principles generally accepted in the U.S. Significant estimates included in the consolidated financial statements and related notes include revenue recognition, income taxes, stock-based compensation, loss contingencies, and useful lives of property and equipment. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. The cumulative effect of the revenue accounting changes made to the Company's consolidated balance sheet as of January 1, 2018 primarily consists of a decrease in accounts payable related to the merchant payable of $1.6 million and a decrease of $270,000 of net deferred tax assets for a net cumulative effect increase of retained earnings of $1.3 million . These changes were due primarily to the new revenue guidance requirement to recognize revenue related to unredeemed Local Deals and Getaway vouchers for selected deals, included in our Europe segment, based upon estimates at the time of sale of the vouchers rather than the Company's past practice of waiting to recognize this revenue until expiration of the legal obligation. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company generates revenues primarily by delivering advertising on the Travelzoo website, in the Top 20 email newsletter, in Newsflash and from the Travelzoo Network . The Company also generates transaction-based revenues from the sale of vouchers through our Local Deals and Getaways products and operation of hotel booking platform and vacation packages. The Company's disaggregated revenues are included in "Note 10: Segment Reporting and Significant Customer Information". For fixed-fee website advertising, the Company recognizes revenues ratably over the contracted placement period. For Top 20 email newsletter and other email products, the Company recognizes revenues when the emails are delivered to its members. The Company offers advertising on a cost-per-click basis, which means that an advertiser pays the Company only when a user clicks on an ad on Travelzoo properties or Travelzoo Network members’ properties. For these customers, the Company recognizes revenues each time a user clicks on the ad. The Company also offers advertising on other bases, such as cost-per-impression, which means that an advertiser pays the Company based on the number of times their advertisement is displayed on Travelzoo properties, email advertisement, Travelzoo Network properties, or social media properties. For these customers, the Company recognizes revenues each time an ad is displayed or email delivered. For transaction based revenues, including products such as Local Deals, Getaways , hotel platform and vacation packages, the Company evaluates whether it is the principal (i.e., report revenue on a gross basis) versus an agent (i.e., report revenue on a net basis). The Company reports transaction revenue on a net basis because the supplier is primarily responsible for providing the underlying service and we do not control the service provided by the supplier prior to its transfer to the customer. For Local Deals and Getaways products, the Company earns a fee for acting as an agent for the sale of vouchers that can be redeemed for services with third-party merchants. Revenues are presented net of the amounts due to the third-party merchants for fulfilling the underlying services. Certain merchant contracts allow the Company to retain the proceeds from unredeemed vouchers. With these contracts, the Company estimates the value of vouchers that will ultimately not be redeemed and records the estimate in the same period as the voucher sale. Commission revenue related to our hotel platform is recognized ratably over the period of guest stay, net of an allowance for cancellations based upon historical patterns. For arrangements for booking non-cancelable reservations where the Company’s performance obligation is deemed to be the successful booking of a hotel reservation, the Company records revenue for the commissions upon completion of the hotel booking. The Company’s contracts with customers may include multiple performance obligations in which the Company allocates revenues to each performance obligation based on its standalone selling price. The Company determines standalone selling price based on its overall pricing objectives, taking into consideration the type of services, geographical region of the customers, normal rate card pricing and customary discounts. Standalone selling price is generally determined based on the prices charged to customers when the product is sold separately. The Company relies upon the following practical expedients and exemptions allowed for in the Topic 606. The Company expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded in sales and marketing expenses. In addition, the Company does not disclose the value of unsatisfied performance obligations for (a) contracts with an original expected length of one year or less and (b) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services performed. Deferred revenue primarily consists of customer prepayments and undelivered performance obligations related to the Company’s contracts with multiple performance obligations. At December 31, 2018, $1.3 million was recorded as deferred revenue, of which $1.1 million was recognized as revenue in 2019. At December 31, 2019, the deferred revenue balance was $896,000 . |
Reserve for Refunds to Member | Reserve for Refunds to Members The Company records an estimated reserve for refunds to members based on our historical experience at the time revenue is recorded for Local Deals and Getaway voucher sales. We accrue costs associated with refunds in accrued expenses on the consolidated balance sheets. We consider many key factors such as the historical refunds based upon the time lag since the sale, historical reasons for refunds, time period that remains until the deal expiration date, any changes in refund procedures and estimates of redemptions and breakage. Should any of these factors change, the estimates made by management will also change, which could impact the level of our future reserve for refunds to member. Specifically, if the financial condition of our advertisers, the business that is providing the vouchered service, were to deteriorate, affecting their ability to provide the services to our members, additional reserves for refunds to members may be required. Estimated member refunds that are determined to be recoverable from the merchant are recorded in the consolidated statements of operations as a reduction to revenue. We accrue costs associated with refunds in accrued expenses on the consolidated balance sheets. Estimated member refunds that are determined not to be recoverable from the merchant, are presented as a cost of revenue. If our judgments regarding estimated member refunds are inaccurate, reported results of operations could differ from the amount we previously accrued. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company records a provision for doubtful accounts based on its historical experience of write-offs and a detailed assessment of our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, management considers the age of the accounts receivable, historical write-offs, the creditworthiness of the advertiser, the economic conditions of the advertiser’s industry, and general economic conditions, among other factors. Should any of these factors change, the estimates made by management will also change, which could impact the level of the future provision for doubtful accounts. Specifically, if the financial condition of our advertisers were to deteriorate, affecting their ability to make payments, additional provision for doubtful accounts may be required. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Online advertising is expensed as incurred over the period the advertising is displayed. |
Operating Leases | Operating Leases The Company determines if an arrangement contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease payments used to determine the operating lease assets may include lease incentives and stated rent increases. The Company does not include options to extend or terminate until it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The Company elected not to recognize leases with an initial term of 12 months or less on its consolidated balance sheets. The Company’s leases are reflected in operating lease ROU assets, operating lease liabilities and long-term operating lease liabilities in our accompanying consolidated balance sheet as of December 31, 2019 . Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company also has a real estate lease agreement which is subleased to a third party. The Company recognizes sublease income in Other income (expense), net on a straight-line basis over the lease term in its consolidated statements of operations. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for its employee stock options under the fair value method, which requires stock-based compensation to be estimated using the fair value on the date of grant using an option-pricing model. The value of the portion of the award that is expected to vest is recognized as expense over the related employees’ requisite service periods in the Company’s consolidated statements of operations. See Note 8 to the accompanying consolidated financial statements for a further discussion on stock-based compensation. |
Foreign Currency | Foreign Currency All foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income (loss). Realized gains and losses from foreign currency transactions are recognized as gain or loss on foreign currency in the consolidated statements of operations. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards and credit carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, valuation allowances must be established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Significant judgment is required in evaluating the Company's uncertain tax positions and determining the Company's provision for income taxes. Although the Company believes it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the progress or closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to certain changes in equity that are excluded from net income. For the Company, other comprehensive income (loss) includes foreign currency translation adjustments. Total comprehensive income (loss) for all periods presented has been disclosed in the consolidated statements of comprehensive loss. |
Certain Risks and Uncertainties | Certain Risks and Uncertainties Our business is subject to risks associated with our ability to attract and retain advertisers and offer products or services on compelling terms to our members. We are exposed to the risk of the travel and tourism industry and the risk of online commerce and payment security systems. The Company’s cash, cash equivalents and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. The accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of highly liquid investments with maturities of three months or less on the date of purchase. Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to refundable deposits and funds held in escrow. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Additions and improvements are capitalized. Maintenance and repairs are expensed as incurred. The Company also includes in fixed assets the capitalized cost of internal-use software and website development, including software used to upgrade and enhance its website and processes supporting the Company’s business in accordance with the framework established by the FASB accounting guidance for accounting for the cost of computer software developed or obtained for internal use and accounting for website development costs. Costs incurred in the planning stage and operating stage are expensed as incurred while costs incurred in the application development stage and infrastructure development stage are capitalized, assuming such costs are deemed to be recoverable. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 3 to 5 years for computer hardware and software, capitalized internal-use software and website development costs, and office equipment and office furniture. The Company depreciates leasehold improvements over the term of the lease or the estimated useful life of the asset, whichever is shorter. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company accounts for long-lived assets in accordance with the accounting standard relating to impairment of long-lived assets, which requires an impairment loss to be recognized on assets to be held and used if the carrying amount of a long-lived asset group is not recoverable from its undiscounted cash flows. The amount of the impairment loss is measured as the difference between the carrying amount and the fair value of the asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. |
Recent Accounting Pronouncements Note Yet Adopted & Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which provides new guidance on the measurement of credit losses for financial assets measured at amortized cost, which includes accounts receivable. The new guidance replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. This update is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For Smaller Reporting Companies, the standard will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Entities are required to apply this update on a modified retrospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact on its financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-15, "Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract." The new guidance required a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The guidance is effective for calendar-year public business entities in 2020. Early adoption is permitted. The Company does not expect the adoption to have a material impact on its financial position, results of operations and cash flows. (p) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued an ASU 2016-02, "Leases," codified in Accounting Standard Codification 842 ("ASC 842"), which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability on its balance sheet. The Company adopted ASC 842 on January 1, 2019, using the alternative modified transition method with no restatement of prior periods or cumulative adjustment to retained earnings. Upon adoption, the Company elected the package of transition practical expedients: (i) not to reassess prior conclusions related to whether any expired or existing contracts are or contain leases; (ii) not to reassess the lease classification for any expired or existing leases; (iii) not to reassess initial direct costs for existing leases; and (iv) not to reassess certain land easements. Upon adoption of the standard effective January 1, 2019, the Company recognized an operating lease right-of-use assets of approximately $13.4 million and a corresponding operating lease liability of approximately $16.0 million , which included reclassifying existing deferred rent liability of $2.6 million to operating lease right-of-use assets. |
Net Income Per Share | Net Income Per Share Basic net income 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the total amounts shown in the statements of cash flows (in thousands): December 31, December 31, 2019 2018 Cash and cash equivalents $ 19,505 $ 18,017 Restricted cash 1,205 1,444 Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows $ 20,710 $ 19,461 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share | The following table sets forth the calculation of basic and diluted net income per share (in thousands, except per share amounts): Year Ended December 31, 2019 2018 Net income $ 4,155 $ 4,661 Weighted average common shares—basic 11,809 12,323 Effect of dilutive securities: stock options 226 187 Weighted average common shares—diluted 12,035 12,510 Net income per share—basic $ 0.35 $ 0.38 Net income per share—diluted $ 0.35 $ 0.37 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Assets | Prepaid expenses and other consist of the following (in thousands): December 31, 2019 2018 Prepaid expenses $ 2,303 $ 1,780 Other current assets 193 167 Total prepaid expenses and other $ 2,496 $ 1,947 |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2019 2018 Computer hardware and software $ 3,427 $ 3,353 Office equipment and office furniture 8,148 7,814 Capitalized internal-use software and website development 4,390 4,383 Leasehold improvements 6,247 6,140 22,212 21,690 Less accumulated depreciation and amortization (19,230 ) (17,900 ) Total $ 2,982 $ 3,790 |
Changes in Allowance for Doubtful Accounts and Reserve for Subscriber Refunds | Changes to the allowance for doubtful accounts and reserve for member refunds are as follows (in thousands): Allowance for doubtful accounts Reserve for Balance at January 1, 2018 $ 315 $ 530 Additions — charged to costs and expenses, or contra revenue 482 688 Deductions — recoveries of amounts previously reserved (104 ) — Deductions — write-offs or refunds (1 ) (839 ) Balance at December 31, 2018 692 379 Additions — charged to costs and expenses, or contra revenue 610 1,007 Deductions — recoveries of amounts previously reserved (147 ) — Deductions — write-offs or refunds (29 ) (1,093 ) Balance at December 31, 2019 $ 1,126 $ 293 |
Schedule of Accrued Expenses | Accrued expenses and other consist of the following (in thousands): December 31, 2019 2018 Accrued advertising expense $ 1,774 $ 1,875 Accrued compensation expense 2,955 2,813 Reserve for member refunds 293 382 Other accrued expenses 2,455 2,266 Deferred rent — 517 Total accrued expenses and other $ 7,477 $ 7,853 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax Expense by Jurisdiction | The components of income before income tax expense are as follows (in thousands): Year Ended December 31, 2019 2018 U.S. $ 11,553 $ 8,677 Foreign (2,604 ) (391 ) $ 8,949 $ 8,286 |
Schedule of Income Tax Expense | The deferred tax provision (benefit) results from changes in the Company’s deferred tax assets (future deductible amounts) and tax liabilities (future taxable amounts), which are presented in the table below: Current Deferred Total (In thousands) Year Ended December 31, 2019 Federal $ 2,399 $ 257 $ 2,656 State 516 47 563 Foreign 1,539 36 1,575 $ 4,454 $ 340 $ 4,794 Year Ended December 31, 2018 Federal $ 1,938 $ (260 ) $ 1,678 State 650 22 672 Foreign 1,461 (186 ) 1,275 $ 4,049 $ (424 ) $ 3,625 |
Schedule of Tax Expense to Effective Tax Rate | Income tax expense differed from the amounts computed by applying the U.S. federal statutory tax rate applicable to the Company’s level of pretax income as a result of the following (in thousands): Year Ended December 31, 2019 2018 Federal tax at statutory rates $ 1,879 $ 1,738 State taxes, net of federal income tax benefit 453 586 Change of valuation allowance 2,032 1,565 Uncertain tax positions 61 (177 ) Foreign income taxed at different rates (261 ) (273 ) Foreign equity investment 172 — Non-deductible expenses and other 458 186 Total income tax expense $ 4,794 $ 3,625 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 11,634 $ 9,805 Operating lease liabilities 2,632 — State income taxes 100 82 Accruals and allowances 327 292 Stock-based compensation 643 910 Unrealized foreign exchange losses 900 151 Deferred revenue — 377 Total deferred tax assets 16,236 11,617 Valuation allowance (11,634 ) (9,723 ) Total deferred tax assets net of valuation allowance 4,602 1,894 Deferred tax liabilities: Deferred revenue (72 ) — Deferred rent — (80 ) Operating lease right-of-use assets (2,423 ) — Property, equipment and intangible assets (56 ) (169 ) Total deferred tax liabilities (2,551 ) (249 ) Net deferred tax assets $ 2,051 $ 1,645 |
Changes in the Deferred Tax Assets Valuation Allowance | Changes in the deferred tax assets valuation allowance for the years ended December 31, 2018 and 2019 are as follows (in thousands): Balance at the beginning of the year Charged (Credited) to expenses Charged (Credited) to other account (*) Balance at end of year Deferred tax assets valuation allowance 2018 $ 9,249 1,565 (1,091 ) $ 9,723 2019 $ 9,723 2,032 (121 ) $ 11,634 (*) Amounts not charged (credited) to expenses are charged (credited) to stockholder's equity or deferred tax assets (liabilities). |
Rollforward of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits in 2018 and 2019 is as follows (in thousands): Gross unrecognized tax benefits balance at January 1, 2018 $ 725 Increase related to current year tax positions 15 Settlements (501 ) Gross unrecognized tax benefits balance at December 31, 2018 239 Increase related to current year tax positions 7 Settlements (68 ) Gross unrecognized tax benefits balance at December 31, 2019 $ 178 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): Year Ended December 31, 2019 2018 Beginning balance $ (4,214 ) $ (3,597 ) Other comprehensive income (loss) due to foreign currency translation, net of tax 762 (617 ) Ending balance $ (3,452 ) $ (4,214 ) |
Stock-Based Compensation and _2
Stock-Based Compensation and Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Weighted-Average Assumptions used in Black-Scholes Option Pricing Model | The fair value of 2019 and 2018 stock options was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: 2019 2018 Weighted-average fair value of options granted per share $ 8.78 $ 6.63 Historical volatility 60 % 46 % Risk-free interest rate 2.10 % 2.84 % Dividend yield — — Expected life in years 3.6 5.7 |
Schedule of Option Activity | Option activities during the years ended December 31, 2018 and 2019 were as follows: Shares Weighted-Average Weighted-Average Aggregate (In thousands) Outstanding at January 1, 2018 950,000 $ 8.75 8.48 years Option Granted 250,000 $ 15.47 Options forfeited and canceled (150,000 ) $ 14.68 Outstanding at December 31, 2018 1,050,000 $ 9.50 7.53 years Option Granted 100,000 $ 19.28 Exercised options (300,000 ) $ 7.22 Options forfeited and canceled (100,000 ) $ 19.74 Outstanding at December 31, 2019 750,000 $ 10.35 6.01 years $ 1,615 Exercisable and fully vested at December 31, 2019 600,000 $ 8.57 6.22 years $ 1,615 Outstanding at December 31, 2019 and expected to vest thereafter 150,000 $ 17.48 5.15 years $ — |
Schedule of Outstanding Options | Outstanding options at December 31, 2019 were as follows: Exercise Price Options Options Outstanding Weighted-Average Options Outstanding Options Exercisable $ 8.07 400,000 5.75 years $ 8.07 400,000 5.75 years $ 6.95 150,000 7.84 years $ 6.95 150,000 7.84 years $ 14.70 50,000 8.37 years $ 14.70 12,500 8.37 years $ 16.65 50,000 3.47 years $ 16.65 12,500 3.47 years $ 19.28 100,000 4.39 years $ 19.28 25,000 4.39 years 750,000 600,000 |
Segment Reporting and Signifi_2
Segment Reporting and Significant Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Operating Results from Continuing Operations and Assets by Business Segment | The following is a summary of operating results and assets by business segment (in thousands): Year Ended December 31, 2019 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 6,402 $ 39,556 $ 65,454 $ 111,412 Intersegment revenues 88 (2,658 ) 2,570 — Total net revenues $ 6,490 $ 36,898 $ 68,024 $ 111,412 Operating income (loss) $ (7,488 ) $ 4,461 $ 12,491 $ 9,464 Year Ended December 31, 2018 Asia Pacific Europe North America Consolidated Revenues from unaffiliated customers $ 7,869 $ 36,468 $ 66,985 $ 111,322 Intersegment revenues (10 ) (319 ) 329 — Total net revenues $ 7,859 $ 36,149 $ 67,314 $ 111,322 Operating income (loss) $ (6,322 ) $ 4,973 $ 9,587 $ 8,238 |
Reconciliation of Assets by Business Segment | As of December 31, 2019 Asia Pacific Europe North Elimination Consolidated Long-lived assets $ 121 $ 263 $ 2,598 $ — $ 2,982 Total assets $ 3,215 $ 74,604 $ 66,803 $ (90,084 ) $ 54,538 As of December 31, 2018 Asia Pacific Europe North America Elimination Consolidated Long-lived assets $ 145 $ 313 $ 3,332 $ — $ 3,790 Total assets $ 3,811 $ 62,942 $ 62,433 $ (85,762 ) $ 43,424 |
Breakdown of Revenues by Type and Segment | The following table sets forth the breakdown of revenues by category and segment. Travel revenue includes travel publications ( Top 20, Website, Newsflash, Travelzoo Network ), Getaway vouchers and hotel platform. Local revenue includes Local Deals vouchers and entertainment offers (vouchers and direct bookings) (in thousands). Year Ended December 31, 2019 2018 Asia Pacific Travel $ 6,274 $ 7,351 Local 216 508 Total Asia Pacific revenues 6,490 7,859 Europe Travel 32,081 30,856 Local 4,817 5,293 Total Europe revenues 36,898 36,149 North America Travel 57,863 56,145 Local 10,161 11,169 Total North America revenues 68,024 67,314 Consolidated Travel 96,218 94,352 Local 15,194 16,970 Total revenues $ 111,412 $ 111,322 |
Schedule of Revenue for Individual Countries that Exceed 10% of Total Revenue | The following table sets forth revenue for individual countries that were 10% or more of total revenue (in thousands): Year Ended December 31, 2019 2018 Revenue United States $ 61,375 $ 61,257 United Kingdom 19,961 21,034 Germany 12,176 12,257 Rest of the world 17,900 16,774 Total revenues $ 111,412 $ 111,322 |
Schedule of Long Lives Assets by Geographic Area | The following table sets forth long lived assets by geographic area (in thousands): December 31, 2019 2018 United States $ 2,359 $ 3,035 Rest of the world 623 755 Total long lived assets $ 2,982 $ 3,790 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease cost | The following table summarizes the components of lease expense for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Operating lease cost $ 4,768 Short-term lease cost 815 Variable lease cost 1,242 Sublease income (336 ) Total lease cost $ 6,489 |
Lease assets and liabilities | The following table summarizes the presentation in our consolidated balance sheet of our operating leases (in thousands): As of December 31, 2019 Assets: Operating lease right-of-use assets $ 8,886 Liabilities: Operating lease liabilities $ 5,301 Long-term operating lease liabilities 8,238 Total operating lease liabilities $ 13,539 Weighted average remaining lease term (years) 3.42 Weighted average discount rate 4.4 % |
Lease liability maturity | Maturities of lease liabilities were as follows (in thousands): Years ending December 31, 2020 $ 5,440 2021 3,790 2022 2,426 2023 1,927 2024 1,038 Thereafter — Total lease payments 14,621 Less interest (1,082 ) Present value of operating lease liabilities $ 13,539 |
Unaudited Quarterly Informati_2
Unaudited Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following represents unaudited quarterly financial data for 2019 and 2018 (in thousands, except per share amounts): Quarter Ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Revenues $ 26,898 $ 25,505 $ 28,184 30,825 $ 27,062 $ 25,301 $ 28,075 $ 30,884 Cost of revenues 3,206 2,980 2,757 2,946 2,880 2,987 3,016 3,385 Gross profit 23,692 22,525 25,427 27,879 24,182 22,314 25,059 27,499 Operating expenses: Sales and marketing 15,154 14,233 15,357 15,606 13,974 13,375 15,628 15,542 Product development 1,905 1,478 1,799 1,703 1,799 2,297 2,386 2,511 General and administrative 5,778 5,600 5,847 5,599 5,620 5,928 5,967 5,789 Total operating expenses 22,837 21,311 23,003 22,908 21,393 21,600 23,981 23,842 Income from operations 855 1,214 2,424 4,971 2,789 714 1,078 3,657 Other income (loss), net (135 ) (138 ) (143 ) (99 ) (52 ) (91 ) 30 161 Income from operations before income taxes 720 1,076 2,281 4,872 2,737 623 1,108 3,818 Income tax expense 1,319 770 953 1,752 1,173 505 631 1,316 Net income (loss) $ (599 ) $ 306 $ 1,328 $ 3,120 $ 1,564 $ 118 $ 477 $ 2,502 Net income (loss) per share—basic: $ (0.05 ) $ 0.03 $ 0.11 $ 0.26 $ 0.13 $ 0.01 $ 0.04 $ 0.20 Net income (loss) per share—diluted $ (0.05 ) $ 0.03 $ 0.11 $ 0.26 $ 0.13 $ 0.01 $ 0.04 $ 0.20 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) member in Millions | Feb. 11, 2020USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Dec. 31, 2019USD ($)memberoffice | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) |
Accounting Policies | |||||||
Number of members | member | 30 | ||||||
Payments to acquire equity method investments | $ 673,000 | $ 3,083,000 | |||||
Decrease in accounts payable related to the merchant payable | 20,406,000 | 17,129,000 | |||||
Decrease to net deferred tax assets | 2,051,000 | 1,645,000 | |||||
Net cumulative effect increase of retained earnings | $ 1,314,000 | ||||||
Deferred revenue | 896,000 | 1,300,000 | |||||
Deferred revenue, revenue recognized in period | 1,100,000 | ||||||
Advertising costs | 10,300,000 | 8,500,000 | |||||
Total foreign currency transaction gain (loss) | (80,000) | (42,000) | |||||
Impairment of software | 0 | 0 | |||||
Operating lease right-of-use assets | 8,886,000 | ||||||
Operating lease liability | $ 13,539,000 | ||||||
Minimum | |||||||
Accounting Policies | |||||||
Number of offices (more than) | office | 22 | ||||||
Computer hardware and software | Minimum | |||||||
Accounting Policies | |||||||
Estimated useful lives (in years) | 3 years | ||||||
Computer hardware and software | Maximum | |||||||
Accounting Policies | |||||||
Estimated useful lives (in years) | 5 years | ||||||
Capitalized internal-use software and website development | Minimum | |||||||
Accounting Policies | |||||||
Estimated useful lives (in years) | 3 years | ||||||
Capitalized internal-use software and website development | Maximum | |||||||
Accounting Policies | |||||||
Estimated useful lives (in years) | 5 years | ||||||
Office equipment and office furniture | Minimum | |||||||
Accounting Policies | |||||||
Estimated useful lives (in years) | 3 years | ||||||
Office equipment and office furniture | Maximum | |||||||
Accounting Policies | |||||||
Estimated useful lives (in years) | 5 years | ||||||
Azzurro Capital, Inc. | |||||||
Accounting Policies | |||||||
Percent of outstanding shares | 47.80% | ||||||
Other Income (Loss) | |||||||
Accounting Policies | |||||||
Total foreign currency transaction gain (loss) | $ (64,000) | 135,000 | |||||
Accounting Standards Update 2016-02 | |||||||
Accounting Policies | |||||||
Operating lease right-of-use assets | $ 13,400,000 | ||||||
Operating lease liability | 16,000,000 | ||||||
Deferred rent liability | $ (2,600,000) | ||||||
WeekenGO | |||||||
Accounting Policies | |||||||
Payments to acquire equity method investments | $ 673,000 | $ 3,000,000 | |||||
Ownership interest percentage | 26.60% | 25.00% | |||||
Equity method investment, related identifiable tangible assets | $ 1,000,000 | ||||||
Goodwill | 1,500,000 | ||||||
Loss share of investee loss and amortization | $ 882,000 | $ 218,000 | |||||
Technology-Based Intangible Assets | WeekenGO | |||||||
Accounting Policies | |||||||
Equity method investment, related identifiable intangible assets | $ 485,000 | ||||||
Finite-lived intangible asset, useful life | 3 years | ||||||
Including Holger Proxy | |||||||
Accounting Policies | |||||||
Ownership percentage of voting power | 48.20% | ||||||
Subsequent Event | WeekenGO | |||||||
Accounting Policies | |||||||
Payments to acquire equity method investments | $ 1,700,000 | ||||||
Ownership interest percentage | 33.70% | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||
Accounting Policies | |||||||
Decrease in accounts payable related to the merchant payable | 1,600,000 | ||||||
Decrease to net deferred tax assets | 270,000 | ||||||
Retained Earnings | |||||||
Accounting Policies | |||||||
Net cumulative effect increase of retained earnings | 1,314,000 | ||||||
Retained Earnings | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||
Accounting Policies | |||||||
Net cumulative effect increase of retained earnings | $ 1,300,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 19,505 | $ 18,017 | |
Restricted cash | 1,205 | 1,444 | |
Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows | $ 20,710 | $ 19,461 | $ 24,001 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||||||||||
Net income | $ (599) | $ 306 | $ 1,328 | $ 3,120 | $ 1,564 | $ 118 | $ 477 | $ 2,502 | $ 4,155 | $ 4,661 |
Denominator: | ||||||||||
Weighted average common shares—basic (in shares) | 11,809 | 12,323 | ||||||||
Effect of dilutive securities: stock options (in shares) | 226 | 187 | ||||||||
Weighted average common shares—diluted (in shares) | 12,035 | 12,510 | ||||||||
Income per share—basic: | ||||||||||
Net income per share, basic (in dollars per share) | $ (0.05) | $ 0.03 | $ 0.11 | $ 0.26 | $ 0.13 | $ 0.01 | $ 0.04 | $ 0.20 | $ 0.35 | $ 0.38 |
Income per share—diluted: | ||||||||||
Net income per share, diluted (in dollars per share) | $ (0.05) | $ 0.03 | $ 0.11 | $ 0.26 | $ 0.13 | $ 0.01 | $ 0.04 | $ 0.20 | $ 0.35 | $ 0.37 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 200 | 200 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 2,303 | $ 1,780 |
Other current assets | 193 | 167 |
Total prepaid expenses and other | $ 2,496 | $ 1,947 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 22,212 | $ 21,690 |
Less accumulated depreciation and amortization | (19,230) | (17,900) |
Property, plant and equipment, net | 2,982 | 3,790 |
Depreciation expense | 1,200 | 1,600 |
Capitalized computer software, amortization | 157 | 247 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,427 | 3,353 |
Office equipment and office furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 8,148 | 7,814 |
Capitalized internal-use software and website development | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,390 | 4,383 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 6,247 | $ 6,140 |
Balance Sheet Components - Allo
Balance Sheet Components - Allowance for Doubtful Accounts and Reserve for Subscriber Refunds (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at the beginning of the year | $ 692 | $ 315 |
Additions — charged to costs and expenses, or contra revenue | 610 | 482 |
Deductions — recoveries of amounts previously reserved | (147) | (104) |
Deductions — write-offs or refunds | (29) | (1) |
Balance at end of year | 1,126 | 692 |
Reserve for member refunds | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at the beginning of the year | 379 | 530 |
Additions — charged to costs and expenses, or contra revenue | 1,007 | 688 |
Deductions — recoveries of amounts previously reserved | 0 | 0 |
Deductions — write-offs or refunds | (1,093) | (839) |
Balance at end of year | $ 293 | $ 379 |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Local Deals and Getaway merchant payable included in accounts payable | $ 13,700 | $ 11,800 |
Accrued Liabilities Current [Abstract] | ||
Accrued advertising expense | 1,774 | 1,875 |
Accrued compensation expense | 2,955 | 2,813 |
Reserve for member refunds | 293 | 382 |
Other accrued expenses | 2,455 | 2,266 |
Deferred rent | 0 | 517 |
Total accrued expenses and other | $ 7,477 | $ 7,853 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2004 | Dec. 31, 2002 | |
Loss Contingencies | ||||
Operating leases, rent expense | $ 5,800 | |||
Operating leases, rent expense | $ 5,800 | |||
Sublease income | 347 | $ 123 | ||
Purchase Obligation | $ 50 | |||
Travel Zoo Com Corporation | ||||
Loss Contingencies | ||||
Period for receiving shares under merger (in years) | 2 years | 2 years | ||
Number of shares exchanged under merger | 1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Provisional income tax expense as result of Tax Cuts and Jobs Act | $ 508,000 | ||
Provisional transition tax as result of the Tax Cuts and Jobs Act | 0 | ||
Income tax benefit due to remeasure of foreign deferred tax liabilities as result of the Tax Cuts and Jobs Act | 173,000 | ||
Income tax expense due to remeasure of deferred taxes as result of the Tax Cuts and Jobs Act | 681,000 | ||
Income tax expense as result of 2017 Tax Cuts and Jobs Act | $ 508,000 | ||
Unrecognized deferred tax liability | 484,000 | ||
Total unrecognized tax benefits | 178,000 | 239,000 | $ 725,000 |
Unrecognized tax benefits affecting the company's effective income tax rate | 152,000 | ||
Unrecognized tax benefits, interest on income taxes accrued | 207,000 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, valuation allowance | 11,600,000 | ||
Operating loss carryforwards | 47,300,000 | ||
Increase in valuation allowance | $ 1,900,000 | ||
Operating loss carryforward, indefinite | 26,600,000 | ||
Operating loss carryforward, expiring | $ 20,700,000 |
Income Taxes - Income Before Ta
Income Taxes - Income Before Tax Expense by Jurisdiction (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||||||||
U.S. | $ 11,553 | $ 8,677 | ||||||||
Foreign | (2,604) | (391) | ||||||||
Income before income taxes | $ 720 | $ 1,076 | $ 2,281 | $ 4,872 | $ 2,737 | $ 623 | $ 1,108 | $ 3,818 | $ 8,949 | $ 8,286 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | ||||||||||
Federal | $ 2,399 | $ 1,938 | ||||||||
State | 516 | 650 | ||||||||
Foreign | 1,539 | 1,461 | ||||||||
Total | 4,454 | 4,049 | ||||||||
Deferred | ||||||||||
Federal | 257 | (260) | ||||||||
State | 47 | 22 | ||||||||
Foreign | 36 | (186) | ||||||||
Total | 340 | (424) | ||||||||
Total | ||||||||||
Federal | 2,656 | 1,678 | ||||||||
State | 563 | 672 | ||||||||
Foreign | 1,575 | 1,275 | ||||||||
Total income tax expense | $ 1,319 | $ 770 | $ 953 | $ 1,752 | $ 1,173 | $ 505 | $ 631 | $ 1,316 | $ 4,794 | $ 3,625 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Expense to Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||||||||
Federal tax at statutory rates | $ 1,879 | $ 1,738 | ||||||||
State taxes, net of federal income tax benefit | 453 | 586 | ||||||||
Change of valuation allowance | 2,032 | 1,565 | ||||||||
Uncertain tax positions | 61 | (177) | ||||||||
Foreign income taxed at different rates | (261) | (273) | ||||||||
Foreign equity investment | 172 | 0 | ||||||||
Non-deductible expenses and other | 458 | 186 | ||||||||
Total income tax expense | $ 1,319 | $ 770 | $ 953 | $ 1,752 | $ 1,173 | $ 505 | $ 631 | $ 1,316 | $ 4,794 | $ 3,625 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 11,634 | $ 9,805 |
Operating lease liabilities | 2,632 | 0 |
State income taxes | 100 | 82 |
Accruals and allowances | 327 | 292 |
Stock-based compensation | 643 | 910 |
Unrealized foreign exchange losses | 900 | 151 |
Deferred revenue | 0 | 377 |
Total deferred tax assets | 16,236 | 11,617 |
Valuation allowance | (11,634) | (9,723) |
Total deferred tax assets net of valuation allowance | 4,602 | 1,894 |
Deferred tax liabilities: | ||
Deferred revenue | 72 | 0 |
Deferred rent | 0 | (80) |
Operating lease right-of-use assets | (2,423) | 0 |
Property, equipment and intangible assets | (56) | (169) |
Total deferred tax liabilities | (2,551) | (249) |
Net deferred tax assets | $ 2,051 | $ 1,645 |
Income Taxes - Changes in the D
Income Taxes - Changes in the Deferred Tax Assets Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at the beginning of the year | $ 9,723 | $ 9,249 |
Charged (Credited) to expenses | 2,032 | 1,565 |
Charged (Credited) to other account | (121) | (1,091) |
Balance at end of year | $ 11,634 | $ 9,723 |
Income Taxes - Rollforward of U
Income Taxes - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning | $ 239 | $ 725 |
Increase related to current year tax positions | 7 | 15 |
Settlements | (68) | (501) |
Unrecognized tax benefits, ending | $ 178 | $ 239 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 14,059,000 | $ 13,078,000 |
Ending balance | 10,863,000 | 14,059,000 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
AOCI | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (4,214,000) | (3,597,000) |
Ending balance | (3,452,000) | (4,214,000) |
Foregin Currency Translation | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Other comprehensive income (loss) due to foreign currency translation, net of tax | $ 762,000 | $ (617,000) |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Defined contribution plan, maximum annual contribution by employee, percent of eligible earnings (up to) | 80.00% | |
Defined contribution plan, employer matching contribution per employee, amount (up to) | $ 1,500 | |
Defined contribution plan, period after which cliff vest occurs (in years) | 1 year | |
Defined contribution plan, employer discretionary contribution amount | $ 2,100,000 | $ 2,000,000 |
Stock-Based Compensation and _3
Stock-Based Compensation and Stock Options - Narrative (Details) | Dec. 31, 2019USD ($)shares | May 31, 2019installment$ / sharesshares | Jun. 30, 2018$ / sharesshares | May 31, 2018$ / sharesshares | Apr. 30, 2018installment$ / sharesshares | Oct. 31, 2017$ / sharesshares | Mar. 31, 2016$ / sharesshares | Sep. 30, 2015$ / sharesshares | Jan. 31, 2012$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 100,000 | 250,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 19.28 | $ 15.47 | |||||||||||
Options forfeited (in shares) | 100,000 | 150,000 | |||||||||||
Options outstanding (in shares) | 750,000 | 750,000 | 1,050,000 | 950,000 | |||||||||
Options exercised (in shares) | 300,000 | ||||||||||||
Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Allocated share-based compensation expense (reversal of) | $ | $ 993,000 | $ 900,000 | |||||||||||
Unrecognized stock-based compensation expense | $ | $ 419,000 | $ 419,000 | |||||||||||
Unrecognized compensation expense, period for recognition (in years) | 3 years 4 months 24 days | ||||||||||||
Stock Options | Employee Options 2012 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 100,000 | ||||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 28.98 | ||||||||||||
Options vest and become exercisable annually (in shares) | 25,000 | ||||||||||||
Options canceled (in shares) | 50,000 | 25,000 | |||||||||||
Options forfeited (in shares) | 25,000 | ||||||||||||
Stock Options | Employee Options 2015 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 400,000 | ||||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 8.07 | ||||||||||||
Options vest and become exercisable quarterly (in shares) | 50,000 | ||||||||||||
Options vested (in shares) | 400,000 | ||||||||||||
Options outstanding (in shares) | 400,000 | 400,000 | |||||||||||
Stock Options | Employee Options 2016 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 150,000 | ||||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 8.55 | ||||||||||||
Options vest and become exercisable annually (in shares) | 37,500 | ||||||||||||
Shares issued (in shares) | 4,000 | 4,000 | |||||||||||
Options exercised (in shares) | 50,000 | ||||||||||||
Unrecognized stock-based compensation expense | $ | $ 0 | $ 0 | |||||||||||
Stock Options | Employee Options 2017 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 400,000 | ||||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 6.95 | ||||||||||||
Options vest and become exercisable quarterly (in shares) | 50,000 | ||||||||||||
Options vested (in shares) | 150,000,000 | ||||||||||||
Allocated share-based compensation expense (reversal of) | $ | $ 573,000 | ||||||||||||
Options outstanding (in shares) | 150,000 | 150,000 | |||||||||||
Options exercised (in shares) | 250,000 | ||||||||||||
Unrecognized stock-based compensation expense | $ | $ 418,000 | $ 418,000 | |||||||||||
Unrecognized compensation expense, period for recognition (in years) | 2 years 5 months 1 day | ||||||||||||
Stock Options | April 2018 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 50,000 | ||||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 10.50 | ||||||||||||
Options canceled (in shares) | 50,000 | ||||||||||||
Allocated share-based compensation expense (reversal of) | $ | $ 34,000 | ||||||||||||
Vesting installments | installment | 12 | ||||||||||||
Stock Options | May 2018 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 50,000 | ||||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 14.70 | ||||||||||||
Options vest and become exercisable annually (in shares) | 12,500 | ||||||||||||
Options vested (in shares) | 12,500 | ||||||||||||
Options outstanding (in shares) | 50,000 | 50,000 | |||||||||||
Unrecognized stock-based compensation expense | $ | $ 213,000 | $ 213,000 | |||||||||||
Unrecognized compensation expense, period for recognition (in years) | 2 years 4 months 24 days | ||||||||||||
Stock Options | May 2019 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 100,000 | 100,000 | |||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 19.28 | ||||||||||||
Options vested (in shares) | 25,000 | 10,000 | |||||||||||
Vesting installments | installment | 3 | ||||||||||||
Unrecognized stock-based compensation expense | $ | $ 420,000 | $ 420,000 | |||||||||||
Unrecognized compensation expense, period for recognition (in years) | 3 years 4 months 24 days | ||||||||||||
Executive Officer | Stock Options | Employee Options 2016 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options canceled (in shares) | 12,500 | ||||||||||||
Options forfeited (in shares) | 50,000 | 37,500 | |||||||||||
Allocated share-based compensation expense (reversal of) | $ | $ (59,000) | $ (19,000) | |||||||||||
Nonemployee Consultant | Stock Options | June 2018 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 100,000 | ||||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 17.75 | ||||||||||||
Options vest and become exercisable annually (in shares) | 20,000 | ||||||||||||
Options canceled (in shares) | 20,000 | ||||||||||||
Options forfeited (in shares) | 80,000 | ||||||||||||
Employee | Stock Options | June 2018 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options granted (in shares) | 50,000 | ||||||||||||
Exercise price of employee option shares of common stock (in dollars per share) | $ / shares | $ 16.65 | ||||||||||||
Options vest and become exercisable annually (in shares) | 12,500 | ||||||||||||
Options vested (in shares) | 12,500 | ||||||||||||
Options outstanding (in shares) | 50,000 | 50,000 | |||||||||||
Unrecognized stock-based compensation expense | $ | $ 206,000 | $ 206,000 | |||||||||||
Unrecognized compensation expense, period for recognition (in years) | 2 years 6 months | ||||||||||||
July 31, 2018 | Nonemployee Consultant | Stock Options | June 2018 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options vested (in shares) | 30,000 | ||||||||||||
June 30, 2019 | Nonemployee Consultant | Stock Options | June 2018 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options vested (in shares) | 50,000 | ||||||||||||
September 2019 | Stock Options | May 2019 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options vested and exercisable in future periods (in shares) | 15,000 | ||||||||||||
May 20, 2021 | Stock Options | May 2019 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||
Options vested and exercisable in future periods (in shares) | 75,000 |
Stock-Based Compensation and _4
Stock-Based Compensation and Stock Options - Stock Option Valuation Weighted Average Assumptions (Details) - Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Options 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Weighted-average fair value of options granted (in dollars per share) | $ 8.78 | |
Historical volatility | 60.00% | |
Risk-free interest rate | 2.10% | |
Dividend yield | 0.00% | |
Expected life in years | 3 years 7 months 20 days | |
Employee Options 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Weighted-average fair value of options granted (in dollars per share) | $ 6.63 | |
Historical volatility | 46.00% | |
Risk-free interest rate | 2.84% | |
Dividend yield | 0.00% | |
Expected life in years | 5 years 8 months 12 days |
Stock-Based Compensation and _5
Stock-Based Compensation and Stock Options - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Options outstanding, beginning (in shares) | 1,050,000 | 950,000 | |
Options granted (in shares) | 100,000 | 250,000 | |
Options forfeited and canceled (in shares) | (100,000) | (150,000) | |
Options exercised (in shares) | (300,000) | ||
Options outstanding, ending (in shares) | 750,000 | 1,050,000 | 950,000 |
Weighted-Average Exercise Price | |||
Options outstanding, weighted average exercise price, beginning (in dollars per share) | $ 9.50 | $ 8.75 | |
Options granted, weighted average exercise price (in dollars per share) | 19.28 | 15.47 | |
Options forfeited and canceled, weighted average exercise price (in dollars per share) | 19.74 | 14.68 | |
Options exercised, weighted average exercise price (in dollars per share) | 7.22 | ||
Options outstanding, weighted average exercise price, ending (in dollars per share) | $ 10.35 | $ 9.50 | $ 8.75 |
Exercisable and fully vested (in shares) | 600,000 | ||
Exercisable and fully vested, weighted average exercise price (in dollars per share) | $ 8.57 | ||
Options outstanding weighted-average remaining contractual life | 6 years 3 days | 7 years 6 months 11 days | 8 years 5 months 23 days |
Options exercisable weighted-average remaining contractual life | 6 years 2 months 19 days | ||
Vested and expected to vest, outstanding, aggregate intrinsic value | $ 1,615 | ||
Vested and expected to vest, exercisable, aggregate intrinsic value | $ 1,615 | ||
Outstanding and expected to vest thereafter (in shares) | 150,000 | ||
Outstanding and expected to vest thereafter, weighted average exercise price (in dollars per share) | $ 17.48 | ||
Outstanding and expected to vest, weighted average remaining contractual life | 5 years 1 month 24 days | ||
Outstanding and expected to vest, aggregate intrinsic value | $ 0 |
Stock-Based Compensation and _6
Stock-Based Compensation and Stock Options - Outstanding Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercise price of employee option shares of common stock (in dollars per share) | $ 19.28 | $ 15.47 | |
Shares Outstanding (in shares) | 750,000 | 1,050,000 | 950,000 |
Options Outstanding Weighted-Average Remaining Contractual Life | 6 years 3 days | 7 years 6 months 11 days | 8 years 5 months 23 days |
Shares outstanding and exercisable (in shares) | 600,000 | ||
Options Exercisable Weighted-Average Remaining Contractual Life | 6 years 2 months 19 days | ||
Exercise Price 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercise price of employee option shares of common stock (in dollars per share) | $ 8.07 | ||
Shares Outstanding (in shares) | 400,000 | ||
Options Outstanding Weighted-Average Remaining Contractual Life | 5 years 9 months | ||
Weighted- average exercise price (in dollars per share) | $ 8.07 | ||
Shares outstanding and exercisable (in shares) | 400,000 | ||
Options Exercisable Weighted-Average Remaining Contractual Life | 5 years 9 months | ||
Exercise Price 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercise price of employee option shares of common stock (in dollars per share) | $ 6.95 | ||
Shares Outstanding (in shares) | 150,000 | ||
Options Outstanding Weighted-Average Remaining Contractual Life | 7 years 10 months 2 days | ||
Weighted- average exercise price (in dollars per share) | $ 6.95 | ||
Shares outstanding and exercisable (in shares) | 150,000 | ||
Options Exercisable Weighted-Average Remaining Contractual Life | 7 years 10 months 2 days | ||
Exercise Price 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercise price of employee option shares of common stock (in dollars per share) | $ 14.70 | ||
Shares Outstanding (in shares) | 50,000 | ||
Options Outstanding Weighted-Average Remaining Contractual Life | 8 years 4 months 12 days | ||
Weighted- average exercise price (in dollars per share) | $ 14.70 | ||
Shares outstanding and exercisable (in shares) | 12,500 | ||
Options Exercisable Weighted-Average Remaining Contractual Life | 8 years 4 months 12 days | ||
Exercise Price 4 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercise price of employee option shares of common stock (in dollars per share) | $ 16.65 | ||
Shares Outstanding (in shares) | 50,000 | ||
Options Outstanding Weighted-Average Remaining Contractual Life | 3 years 5 months 19 days | ||
Weighted- average exercise price (in dollars per share) | $ 16.65 | ||
Shares outstanding and exercisable (in shares) | 12,500 | ||
Options Exercisable Weighted-Average Remaining Contractual Life | 3 years 5 months 19 days | ||
Exercise Price 5 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercise price of employee option shares of common stock (in dollars per share) | $ 19.28 | ||
Shares Outstanding (in shares) | 100,000 | ||
Options Outstanding Weighted-Average Remaining Contractual Life | 4 years 4 months 20 days | ||
Weighted- average exercise price (in dollars per share) | $ 19.28 | ||
Shares outstanding and exercisable (in shares) | 25,000 | ||
Options Exercisable Weighted-Average Remaining Contractual Life | 4 years 4 months 20 days |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | May 31, 2019 | Feb. 13, 2019 | Mar. 31, 2018 | |
March 2018 Plan | ||||||
Class of Stock | ||||||
Stock repurchased program authorized number of shares (in shares) | 500,000 | |||||
Stock repurchased during period (in shares) | 500,000 | |||||
Aggregate purchase price of shares repurchased | $ 5.3 | |||||
February 2019 Plan | ||||||
Class of Stock | ||||||
Stock repurchased program authorized number of shares (in shares) | 100,000 | |||||
Stock repurchased during period (in shares) | 100,000 | |||||
Aggregate purchase price of shares repurchased | $ 1.6 | |||||
Repurchase May 2019 Plan | ||||||
Class of Stock | ||||||
Stock repurchased program authorized number of shares (in shares) | 1,000,000 | |||||
Aggregate purchase price of shares repurchased | $ 7.2 | |||||
Stock repurchased during period (in shares) | 436,369 | |||||
November 2019 Plan | ||||||
Class of Stock | ||||||
Stock repurchased during period (in shares) | 200,000 | |||||
Aggregate purchase price of shares repurchased | $ 2 |
Segment Reporting and Signifi_3
Segment Reporting and Significant Customer Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable operating segments | 3 |
Segment Reporting and Signifi_4
Segment Reporting and Significant Customer Information - Operating Results from Continuing Operations and Assets by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | $ 26,898 | $ 25,505 | $ 28,184 | $ 30,825 | $ 27,062 | $ 25,301 | $ 28,075 | $ 30,884 | $ 111,412 | $ 111,322 |
Operating income (loss) | $ 855 | $ 1,214 | $ 2,424 | $ 4,971 | $ 2,789 | $ 714 | $ 1,078 | $ 3,657 | 9,464 | 8,238 |
Asia Pacific | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | 6,490 | 7,859 | ||||||||
Operating income (loss) | (7,488) | (6,322) | ||||||||
Asia Pacific | Operating Segments | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | 6,402 | 7,869 | ||||||||
Asia Pacific | Intersegment Eliminations | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | 88 | (10) | ||||||||
Europe | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | 36,898 | 36,149 | ||||||||
Operating income (loss) | 4,461 | 4,973 | ||||||||
Europe | Operating Segments | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | 39,556 | 36,468 | ||||||||
Europe | Intersegment Eliminations | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | (2,658) | (319) | ||||||||
North America | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | 68,024 | 67,314 | ||||||||
Operating income (loss) | 12,491 | 9,587 | ||||||||
North America | Operating Segments | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | 65,454 | 66,985 | ||||||||
North America | Intersegment Eliminations | ||||||||||
Summary of operating results from continuing operations and assets by business segment | ||||||||||
Revenues | $ 2,570 | $ 329 |
Segment Reporting and Signifi_5
Segment Reporting and Significant Customer Information - Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue for each segment recognized based on customer location | ||
Long-lived assets | $ 2,982 | $ 3,790 |
Total assets | 54,538 | 43,424 |
Intersegment Eliminations | ||
Revenue for each segment recognized based on customer location | ||
Long-lived assets | 0 | 0 |
Total assets | (90,084) | (85,762) |
Asia Pacific | Operating Segments | ||
Revenue for each segment recognized based on customer location | ||
Long-lived assets | 121 | 145 |
Total assets | 3,215 | 3,811 |
Europe | Operating Segments | ||
Revenue for each segment recognized based on customer location | ||
Long-lived assets | 263 | 313 |
Total assets | 74,604 | 62,942 |
North America | Operating Segments | ||
Revenue for each segment recognized based on customer location | ||
Long-lived assets | 2,598 | 3,332 |
Total assets | $ 66,803 | $ 62,433 |
Segment Reporting and Signifi_6
Segment Reporting and Significant Customer Information - Revenue by Type and Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Breakdown of revenues by type and segment | ||||||||||
Revenues | $ 26,898 | $ 25,505 | $ 28,184 | $ 30,825 | $ 27,062 | $ 25,301 | $ 28,075 | $ 30,884 | $ 111,412 | $ 111,322 |
Travel | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 96,218 | 94,352 | ||||||||
Local | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 15,194 | 16,970 | ||||||||
Asia Pacific | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 6,490 | 7,859 | ||||||||
Asia Pacific | Travel | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 6,274 | 7,351 | ||||||||
Asia Pacific | Local | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 216 | 508 | ||||||||
Europe | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 36,898 | 36,149 | ||||||||
Europe | Travel | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 32,081 | 30,856 | ||||||||
Europe | Local | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 4,817 | 5,293 | ||||||||
North America | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 68,024 | 67,314 | ||||||||
North America | Travel | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | 57,863 | 56,145 | ||||||||
North America | Local | ||||||||||
Breakdown of revenues by type and segment | ||||||||||
Revenues | $ 10,161 | $ 11,169 |
Segment Reporting and Signifi_7
Segment Reporting and Significant Customer Information - Revenue for Individual Countries that Exceed 10% of Total Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | ||||||||||
Revenues | $ 26,898 | $ 25,505 | $ 28,184 | $ 30,825 | $ 27,062 | $ 25,301 | $ 28,075 | $ 30,884 | $ 111,412 | $ 111,322 |
United States | ||||||||||
Revenue, Major Customer [Line Items] | ||||||||||
Revenues | 61,375 | 61,257 | ||||||||
United Kingdom | ||||||||||
Revenue, Major Customer [Line Items] | ||||||||||
Revenues | 19,961 | 21,034 | ||||||||
Germany | ||||||||||
Revenue, Major Customer [Line Items] | ||||||||||
Revenues | 12,176 | 12,257 | ||||||||
Rest of the world | ||||||||||
Revenue, Major Customer [Line Items] | ||||||||||
Revenues | $ 17,900 | $ 16,774 |
Segment Reporting and Signifi_8
Segment Reporting and Significant Customer Information - Long Lives Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,982 | $ 3,790 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,359 | 3,035 |
Rest of the world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 623 | $ 755 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Feb. 11, 2020 | Sep. 05, 2019 | Oct. 30, 2017 | Sep. 28, 2015 | Apr. 30, 2019 | Feb. 28, 2019 | Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 13, 2019 |
Related Party Transactions | ||||||||||
Employee options granted to purchase shares of common stock (in shares) | 100,000 | 250,000 | ||||||||
Payments to acquire equity method investments | $ 673,000 | $ 3,083,000 | ||||||||
Accounts receivable | $ 13,006,000 | 12,646,000 | ||||||||
Azzurro Capital, Inc. | ||||||||||
Related Party Transactions | ||||||||||
Percent of outstanding shares | 47.80% | |||||||||
Stock Options Granted | Chief Executive Officer | ||||||||||
Related Party Transactions | ||||||||||
Employee options granted to purchase shares of common stock (in shares) | 400,000 | 400,000 | ||||||||
February 2019 Plan | ||||||||||
Related Party Transactions | ||||||||||
Stock repurchased program authorized number of shares (in shares) | 100,000 | |||||||||
Aggregate purchase price | $ 1,600,000 | |||||||||
Stock repurchase program discount on purchase price | 5.00% | |||||||||
Stock repurchased during period (in shares) | 100,000 | |||||||||
Aggregate purchase price of shares repurchased | $ 1,600,000 | |||||||||
November 2019 Plan | ||||||||||
Related Party Transactions | ||||||||||
Stock repurchase program discount on purchase price | 4.40% | |||||||||
Stock repurchased during period (in shares) | 200,000 | |||||||||
Aggregate purchase price of shares repurchased | $ 2,000,000 | |||||||||
WeekenGO | ||||||||||
Related Party Transactions | ||||||||||
Payments to acquire equity method investments | $ 673,000 | $ 3,000,000 | ||||||||
Ownership percentage | 26.60% | 25.00% | ||||||||
WeekenGO | Equity Method Investee | ||||||||||
Related Party Transactions | ||||||||||
Future expected revenue | 2,100,000 | |||||||||
Purchases from related party | $ 1,200,000 | 319,000 | ||||||||
Accounts receivable | $ 230,000 | $ 58,000 | ||||||||
Including Holger Proxy | ||||||||||
Related Party Transactions | ||||||||||
Ownership percentage of voting power | 48.20% | |||||||||
Subsequent Event | WeekenGO | ||||||||||
Related Party Transactions | ||||||||||
Payments to acquire equity method investments | $ 1,700,000 | |||||||||
Ownership percentage | 33.70% | |||||||||
Stock Options | September 2019 Executive Options | Stock Options Granted | Chief Executive Officer | ||||||||||
Related Party Transactions | ||||||||||
Employee options granted to purchase shares of common stock (in shares) | 400,000 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 4,768 |
Short-term lease cost | 815 |
Variable lease cost | 1,242 |
Sublease income | (336) |
Total lease cost | 6,489 |
Operating cash flows | 5,600 |
Operating leases | $ 4,066 |
Leases - Lease Balance Sheet In
Leases - Lease Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets: | |
Operating lease right-of-use assets | $ 8,886 |
Liabilities: | |
Operating lease liabilities | 5,301 |
Long-term operating lease liabilities | 8,238 |
Total operating lease liabilities | $ 13,539 |
Weighted average remaining lease term (years) | 3 years 5 months 1 day |
Weighted average discount rate | 4.40% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 5,440 |
2021 | 3,790 |
2022 | 2,426 |
2023 | 1,927 |
2024 | 1,038 |
Thereafter | 0 |
Total lease payments | 14,621 |
Less interest | (1,082) |
Present value of operating lease liabilities | $ 13,539 |
Unaudited Quarterly Informati_3
Unaudited Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenues | $ 26,898 | $ 25,505 | $ 28,184 | $ 30,825 | $ 27,062 | $ 25,301 | $ 28,075 | $ 30,884 | $ 111,412 | $ 111,322 |
Cost of revenues | 3,206 | 2,980 | 2,757 | 2,946 | 2,880 | 2,987 | 3,016 | 3,385 | 11,889 | 12,268 |
Gross profit | 23,692 | 22,525 | 25,427 | 27,879 | 24,182 | 22,314 | 25,059 | 27,499 | 99,523 | 99,054 |
Operating expenses: | ||||||||||
Sales and marketing | 15,154 | 14,233 | 15,357 | 15,606 | 13,974 | 13,375 | 15,628 | 15,542 | 60,350 | 58,519 |
Product development | 1,905 | 1,478 | 1,799 | 1,703 | 1,799 | 2,297 | 2,386 | 2,511 | 6,885 | 8,993 |
General and administrative | 5,778 | 5,600 | 5,847 | 5,599 | 5,620 | 5,928 | 5,967 | 5,789 | 22,824 | 23,304 |
Total operating expenses | 22,837 | 21,311 | 23,003 | 22,908 | 21,393 | 21,600 | 23,981 | 23,842 | 90,059 | 90,816 |
Income from operations | 855 | 1,214 | 2,424 | 4,971 | 2,789 | 714 | 1,078 | 3,657 | 9,464 | 8,238 |
Other income (loss), net | (135) | (138) | (143) | (99) | (52) | (91) | 30 | 161 | (515) | 48 |
Income before income taxes | 720 | 1,076 | 2,281 | 4,872 | 2,737 | 623 | 1,108 | 3,818 | 8,949 | 8,286 |
Income tax expense | 1,319 | 770 | 953 | 1,752 | 1,173 | 505 | 631 | 1,316 | 4,794 | 3,625 |
Net income | $ (599) | $ 306 | $ 1,328 | $ 3,120 | $ 1,564 | $ 118 | $ 477 | $ 2,502 | $ 4,155 | $ 4,661 |
Income (loss) per share—basic: | ||||||||||
Net income per share, basic (in dollars per share) | $ (0.05) | $ 0.03 | $ 0.11 | $ 0.26 | $ 0.13 | $ 0.01 | $ 0.04 | $ 0.20 | $ 0.35 | $ 0.38 |
Income (loss) per share—diluted: | ||||||||||
Net income per share, diluted (in dollars per share) | $ (0.05) | $ 0.03 | $ 0.11 | $ 0.26 | $ 0.13 | $ 0.01 | $ 0.04 | $ 0.20 | $ 0.35 | $ 0.37 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 03, 2020 | Jan. 13, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Feb. 28, 2020 |
Subsequent Event [Line Items] | |||||
Operating lease payment | $ 5,600,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Payments for tenant improvements | $ 5,000,000 | $ 2,500,000 | |||
Operating lease payment | $ 7,400,000 | ||||
JFC Travel Group Co. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Maximum purchase of outstanding capital stock | 100.00% | ||||
Aggregate purchase price of shares repurchased | $ 12,000,000 | ||||
Interest rate, percentage | 1.60% | ||||
JFC Travel Group Co. | Stock Purchase Agreement | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Remaining percentage of shares | 60.00% | ||||
Forecast | JFC Travel Group Co. | Stock Purchase Agreement | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Remaining percentage of shares | 40.00% | ||||
Adobe Inc. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Sales order with Adobe Inc. | $ 1,600,000 |