Travelzoo 2007 Annual Report Download - page 55

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Reach
The following table sets forth the number of subscribers of each of our e-mail publications in North America,
Europe, and Asia Pacific as of December 31, 2007 and 2006 and the total number of page views for the homepages
of the Travelzoo Web sites in North America, Europe, and Asia Pacific for the years ended December 31, 2007 and
2006. Management considers page views for the Travelzoo homepages as indicators for the growth of Web site
traffic. Management reviews these non-financial metrics for two reasons: First, to monitor our progress in
increasing the reach of our products. Second, to evaluate whether we are able to convert higher reach into higher
revenues.
2007 2006
Year-Over-Year
Growth(1)
Year Ended December 31,
Subscribers:
North America
Travelzoo Top 20.......................... 10,487,000 9,751,000 8%
Newsflash ............................... 8,404,000 7,545,000 11%
Europe
Travelzoo Top 20.......................... 1,346,000 625,000 115%
Newsflash ............................... 1,249,000 551,000 127%
Asia Pacific
Travelzoo Top 20.......................... 214,000 — —
Newsflash ............................... 180,000 — —
Page views of homepages of Travelzoo Web sites:
North America ............................. 33,663,000 40,983,000 (18)%
Europe ................................... 8,593,000 3,447,000 149%
Asia Pacific ............................... 879,000 — —
(1) The comparability of year-over-year changes of page views of the homepages of Travelzoo Web sites may be
limited due to the design and navigation of the Web sites. Additionally, we believe that the increased use of
security software has adversely affected the tracking of page views.
In North America, revenues for the year ended December 31, 2007 increased by 10% from the previous year.
The total number of subscribers in North America to the Travelzoo Top 20 e-mail newsletter as of December 31,
2007 increased by 8% compared to December 31, 2006 and page views of the homepages of the Travelzoo North
America Web sites in North America for the year ended December, 31, 2007 decreased by 18% from the previous
year. In North America, revenues increased at a higher rate than the growth in reach.
In Europe, revenues for the year ended December 31, 2007 increased by 81% from the previous year. The total
number of subscribers in Europe to the Travelzoo Top 20 e-mail newsletter as of December 31, 2007 increased by
115% compared to December 31, 2006 and page views of the homepages of the Travelzoo Web sites in Europe for
the year ended December 31, 2007 increased by 149% from the previous year. In Europe, revenues increased at a
lower rate than the rate of growth in reach. Management believes that the lower rate of growth in revenues is due to
the start up of operations in Germany and France. In Germany and France, we focused on rapidly building a
significant subscriber base.
In Asia Pacific, we began operations in Australia, China, Hong Kong, Japan, and Taiwan in 2007. We did not
generate any significant revenues in Asia Pacific for the year ended December 31, 2007.
Revenues
Our total revenues increased to $78.9 million for the year ended December 31, 2007 from $69.5 million for the
year ended December 31, 2006. This represents an increase of 14%. Our total revenues increased to $69.5 million
for the year ended December 31, 2006 from $50.8 million for the year ended December 31, 2005. This represents an
increase of 37%.
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