What caused TZOO's EPS to miss forecasts in 2024?

Travelzoo's (TZOO) EPS fell short of forecasts in 2024 due to a combination of factors:

1. **Revenue Shortfall in Q4**: The most recent quarter's revenue fell slightly short of expectations, with Travelzoo reporting a total revenue of $20.68 million for Q4 2024, which was not enough to meet the forecast. This shortfall, particularly in the context of an overall revenue decline, would directly impact the EPS calculation by reducing the total profit divided by the number of outstanding shares.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|TZOO|TZOO.O|Travelzoo|2024 Q1|-1715000|2.1985E7|185|
|TZOO|TZOO.O|Travelzoo|2024 Q2|-579000|2.1141E7|185|
|TZOO|TZOO.O|Travelzoo|2024 Q3|-1040000|2.0098E7|185|
|TZOO|TZOO.O|Travelzoo|2024 Q4|-1430000|2.0678E7|185|

2. **European Performance Strength**: While Travelzoo's European segment showed strong performance, as indicated by a 30% year-over-year increase in operating profit for Q3 2024, the positive impact of this segment's performance may not have been enough to offset revenue shortfalls in other areas. This suggests that the strong performance was not adequately leveraged to increase overall revenue to meet forecasts.
3. **Overall Revenue Trend**: Travelzoo's historical revenue trends have shown fluctuations, with Q2 and Q4 2024 revenues being slightly below expectations. This could imply that while individual quarters may have strong performance, such as the European segment's profitability, the overall annual revenue may not meet forecasted levels.

In summary, Travelzoo's EPS missing forecasts in 2024 was primarily due to a revenue shortfall, particularly in Q4, despite strong performance in certain segments like Europe. This shortfall, combined with other factors affecting overall revenue, led to the EPS falling below expectations.