Travelzoo 2004 Annual Report Download - page 41

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Reach
The following table sets forth the number of subscribers of each of our e-mail publications as of
December 31, 2004 and 2003 and the total number of page views for selected sections of the Travelzoo Web
site for the years ended December 31, 2004 and 2003. Management considers the Travelzoo homepage and
the front pages of destination categories as indicators for the growth of our Web site traÇc. Management
reviews these non-Ñnancial metrics for two reasons: First, to monitor our progress in increasing the reach of
our products. Second, to evaluate if we are able to convert higher reach into higher revenues.
Year Ended December 31, Year-over-Year
2004 2003 Growth
Subscribers:
Travelzoo Top 20 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 8,028,000 6,148,000 °31%
NewsÖash ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,676,000 2,658,000 °76%
Page views of selected sections of Travelzoo Web site:
Homepage ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31,835,000 21,532,000 °48%
Front pages of destination categories ÏÏÏÏÏÏÏÏÏÏÏÏÏ 55,858,000 41,025,000 °36%
Management believes that the increase in reach of its products in the year ended December 31, 2004 was
in line with its strategy and goals.
The Company's revenues for the year ended December 31, 2004 increased by 87% from the previous year.
In the year ended December 31, 2003, 100% of revenues were generated from the Travelzoo Web site and the
Travelzoo Top 20 newsletter. In the year ended December 31, 2004, 80% of revenues were generated from the
Travelzoo Web site and the Travelzoo Top 20 newsletter. The number of subscribers of the Travelzoo Top 20
newsletter increased by 31%. Page views of selected sections of the Travelzoo Web site increased by 48% and
36%. Management believes that the data for the years ended December 31, 2004 and 2003 indicate that the
Company was able to generate higher revenues as reach increased.
Revenues
Our total revenues increased to $33.7 million for the year ended December 31, 2004 from $18.0 million
for the year ended December 31, 2003. This represents an increase of 87%. Total revenues for the year ended
December 31, 2003 increased to $18.0 million from $9.8 million for the year ended December 31, 2002. This
represents an increase of 83%.
16% of our revenue growth in 2004 came from our new product, SuperSearch. The remaining 84% of
revenue growth is attributable to an increase in our advertising rates and an increase in the number of clients
and the volume of advertising sold. Approximately 25% of the revenue growth in 2004 is attributable to an
increase in our advertising rates. Due to the increase in the reach of our publications, we increased the prices
for advertising placements in 2004 on average by 22%. Approximately 59% of our revenue growth in 2004 is
attributable to an increase in the number of clients and in an increase in volume of advertising sold to existing
clients.
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