Travelzoo (Nasdaq: TZOO) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Travelzoo missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.

Gross margins dropped, operating margins shrank, and net margins improved.

Revenue details
Travelzoo recorded revenue of $39.3 million. The five analysts polled by S&P Capital IQ looked for sales of $41.8 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $37.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.42. The five earnings estimates compiled by S&P Capital IQ predicted $0.40 per share on the same basis. GAAP EPS were $0.23 for Q1 compared to -$0.85 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 89.7%, 380 basis points worse than the prior-year quarter. Operating margin was 24.3%, 270 basis points worse than the prior-year quarter. Net margin was 9.5%, 4,730 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $41.8 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $164.3 million. The average EPS estimate is $1.53.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 463 members out of 650 rating the stock outperform, and 187 members rating it underperform. Among 183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Travelzoo a green thumbs-up, and 66 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Travelzoo is outperform, with an average price target of $31.

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