Travelzoo (TZOO) has reported 33.92 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $2.74 million, or $0.21 a share in the quarter, compared with $2.05 million, or $0.14 a share for the same period last year.

Revenue during the quarter dropped 7.78 percent to $28.43 million from $30.83 million in the previous year period. Gross margin for the quarter expanded 121 basis points over the previous year period to 88.72 percent. Total expenses were 92.75 percent of quarterly revenues, up from 90.77 percent for the same period last year. That has resulted in a contraction of 198 basis points in operating margin to 7.25 percent.

Operating income for the quarter was $2.06 million, compared with $2.85 million in the previous year period.

"We will continue our strategy of leveraging Travelzoo’s global reach, trusted brand, and worldwide relationships with top travel suppliers to negotiate more exclusive offers for Travelzoo members," said Holger Bartel, chairman and Global chief executive officer. "With more than 25 offices worldwide we have our pulse on outstanding travel, entertainment, and lifestyle experiences."

Cash flow from investing activities was $2.77 million for the quarter as against cash outgo of $0.15 million in the last year period.

The company has spent $1.76 million cash to carry out financing activities during the quarter as against cash outgo of $7.51 million in the last year period.

Cash and cash equivalents stood at stood at $28.59 million as at Mar. 31, 2017.