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Travelzoo Reports Second Quarter 2024 Results

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2 years ago

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NEW YORK, July 25, 2024 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):

Revenue of $21.1 million, consistent year-over-yearConsolidated operating profit of $4.0 millionNon-GAAP consolidated operating profit of $4.8 millionCash flow from operations of $3.1 millionEarnings per share (EPS) of $0.23

Travelzoo, the club for travel enthusiasts, today announced financial results for the second quarter ended June 30, 2024. Consolidated revenue was $21.1 million, consistent year-over-year. In constant currencies, revenue was $21.2 million, up from $21.1 million year-over-year. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members, and membership fees.

Net income attributable to Travelzoo was $2.9 million for Q2 2024, or $0.23 per share, compared with $0.17 in the prior-year period. Net income attributable to Travelzoo from continuing operations was $2.9 million for Q2 2024, or $0.23 per share, compared with $0.17 in the prior-year period.

Non-GAAP operating profit was $4.8 million. Non-GAAP operating profit excludes amortization of intangibles ($88,000), stock option expenses ($0.7 million) and severance-related expenses ($30,000). Please refer to “Non-GAAP Financial Measures” and the tabular reconciliation below.

“We will continue to leverage Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for members,” said Holger Bartel, Travelzoo’s Global CEO. “With more than 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences.”

Cash Position
As of June 30, 2024, consolidated cash, cash equivalents and restricted cash were $13.2 million. Net cash provided by operations was $3.1 million.

Travelzoo North America
North America business segment revenue remained consistent year-over-year at $14.1 million. Operating profit for Q2 2024 was $3.7 million, or 26% of revenue, compared to operating profit of $3.8 million in the prior-year period.

Travelzoo Europe
Europe business segment revenue increased 1% year-over-year to $6.0 million. In constant currencies, Europe business segment revenue increased 1% year-over-year. Operating profit for Q2 2024 was $512,000, or 9% of revenue, compared to operating loss of $239,000 in the prior-year period.

Jack’s Flight Club 
Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. Revenue from unaffiliated customers increased 9% year-over-year to $1.1 million. The number of premium subscribers increased 19% year-over-year. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q2 2024 was $25,000. Non-GAAP operating profit excludes amortization of intangibles ($59,000) related to the acquisition of Travelzoo’s ownership interest in Jack’s Flight Club in 2020.

New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $23,000. Operating loss for Q2 2024 was $184,000.

In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Travelzoo recorded $7,000 in licensing revenue from the licensee in Japan in Q2 2024. Travelzoo recorded $11,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q2 2024. Licensing revenue is expected to increase going forward.

Members and Subscribers 
As of June 30, 2024, we had 30.8 million members worldwide, consistent with June 30, 2023. In North America, Travelzoo had 16.1 million unduplicated members as of June 30, 2024, down from 16.2 million as of June 30, 2023. In Europe, Travelzoo had 9.2 million unduplicated members as of June 30, 2024, consistent with June 30, 2023. Jack’s Flight Club had 2.2 million subscribers, including premium subscribers, as of June 30, 2024, consistent with June 30, 2023.

Discontinued Operations
In March 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations.

Income Taxes
A provision of $1.3 million for income taxes was recorded for Q2 2024, compared to an income tax expense of $1.1 million in the prior-year period. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its actual tax liability for Q2 2024.

Share Repurchase Program
During Q2 2024, the Company repurchased 800,000 of its outstanding common stock.

Looking Ahead 
For Q3 2024, we expect growth in revenue year-over-year, albeit at a smaller pace than in 2023. However, there could be unexpected fluctuations. We also expect for Q3 2024 higher profitability year-over-year. For 2025, we expect substantial growth in revenue as a result of additional revenue from membership fees.

In December 2023, we announced the introduction of a membership fee for Travelzoo beginning January 1, 2024. We recognize membership fee revenue ratably over the subscription period. Legacy Travelzoo members as of December 31, 2023, which represent more than 95% of members, are exempt from the fee during 2024. Therefore, we do not anticipate membership fee revenue from these members before 2025.

Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: amortization of intangibles, stock option expenses and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

Conference Call
Travelzoo will host a conference call to discuss second quarter 2024 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to

download the management presentation (PDF format) to be discussed in the conference callaccess the webcast

About Travelzoo
We, Travelzoo®, are the club for travel enthusiasts. Our 30 million members receive exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.

Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

Revenues

$         21,141

$         21,128

$    43,126

$    42,729

Cost of revenues

2,520

2,880

5,160

5,571

Gross profit

18,621

18,248

37,966

37,158

Operating expenses:

Sales and marketing

9,386

10,142

17,984

19,438

Product development

603

518

1,169

1,008

General and administrative

4,621

4,315

9,211

8,728

Total operating expenses

14,610

14,975

28,364

29,174

Operating income

4,011

3,273

9,602

7,984

Other income, net

176

479

315

829

Income from continuing operations before income taxes

4,187

3,752

9,917

8,813

Income tax expense

1,267

1,091

2,772

2,469

Income from continuing operations

2,920

2,661

7,145

6,344

Income from discontinued operations, net of tax

—

2

—

—

Net income

2,920

2,663

7,145

6,344

Net income (loss) attributable to non-controlling interest

(7)

37

(18)

45

Net income attributable to Travelzoo

$           2,927

$           2,626

$      7,163

$      6,299

Net income attributable to Travelzoo—continuing operations

$           2,927

$           2,624

$      7,163

$      6,299

Net income attributable to Travelzoo—discontinued operations

$                —

$                  2

$           —

$           —

Income per share—basic

Continuing operations

$             0.23

$             0.17

$        0.54

$        0.41

Discontinued operations

$                —

$                —

$            —

$           —

Net income per share—basic

$             0.23

$             0.17

$        0.54

$        0.41

Income per share—diluted

Continuing operations

$             0.23

$             0.17

$        0.54

$        0.40

Discontinued operations

$                —

$                —

$           —

$           —

Net income per share—diluted

$             0.23

$             0.17

$        0.54

$        0.40

Shares used in per share calculation from continuing operations—basic

12,895

15,275

13,191

15,485

Shares used in per share calculation from discontinued operations—basic

12,895

15,275

13,191

15,485

Shares used in per share calculation from continuing operations—diluted

12,976

15,337

13,300

15,557

Shares used in per share calculation from discontinued operations—diluted

12,976

15,337

13,300

15,557

 

Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)

June 30,
2024

December 31,
2023

Assets

Current assets:

Cash and cash equivalents

$             12,567

$            15,713

Accounts receivable, net

13,220

12,965

Prepaid income taxes

998

629

Prepaid expenses and other

1,726

1,461

Total current assets

28,511

30,768

Deposits and other

223

1,115

Deferred tax assets

3,102

3,196

Restricted cash

675

675

Operating lease right-of-use assets

5,873

6,015

Property and equipment, net

499

578

Intangible assets, net

1,686

2,091

Goodwill

10,944

10,944

Total assets

$             51,513

$            55,382

Liabilities and Equity

Current liabilities:

Accounts payable

$               5,212

$              4,546

Merchant payables

16,708

20,622

Accrued expenses and other

4,217

3,658

Deferred revenue

3,207

2,044

Income tax payable

1,070

766

Operating lease liabilities

2,389

2,530

Liabilities from discontinued operations

24

24

Total current liabilities

32,827

34,190

Long-term tax liabilities

6,323

4,681

Long-term operating lease liabilities

6,342

6,717

Other long-term liabilities

376

911

Total liabilities

45,868

46,499

Common stock

124

136

Tax indemnification

(9,537)

(9,537)

Note receivable from shareholder

(1,753)

(1,753)

Additional paid-in capital

—

439

Retained earnings

17,083

19,508

Accumulated other comprehensive loss

(4,951)

(4,607)

Total Travelzoo stockholders’ equity

966

4,186

Non-controlling interest

4,679

4,697

Total stockholder’s equity

5,645

8,883

Total liabilities and equity

$             51,513

$            55,382

 

Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

Cash flows from operating activities:

Net income

$            2,920

$            2,663

$     7,145

$     6,344

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

175

467

558

945

Stock-based compensation

688

432

783

828

Deferred income tax

(12)

30

(27)

(38)

Loss on long-lived assets

—

10

—

10

Net foreign currency effects

(14)

(36)

(11)

(33)

Provision of loss (net recoveries) on accounts receivable and refund reserves

26

(117)

(7)

(829)

Changes in operating assets and liabilities:

Accounts receivable

(150)

3,516

(385)

3,888

Prepaid income taxes

(390)

610

(327)

1,017

Prepaid expenses, deposits and other

(49)

2,325

533

2,485

Accounts payable

(295)

(1,072)

713

(2,393)

Merchant payables

(1,101)

(4,013)

(3,779)

(8,604)

Accrued expenses and other

478

(534)

1,450

377

Income tax payable

224

234

278

234

Other liabilities

556

600

753

1,419

Net cash provided by operating activities

3,056

5,115

7,677

5,650

Cash flows from investing activities:

Proceeds from repayment of note receivable

—

74

—

113

Purchases of property and equipment

(48)

(46)

(83)

(157)

Net cash provided by (used in) investing activities

(48)

28

(83)

(44)

Cash flows from financing activities:

Repurchase of common stock

(6,557)

(4,684)

(10,429)

(4,870)

Exercise of stock options and taxes paid for net share settlement of equity awards

—

(299)

—

(299)

Net cash used in financing activities

(6,557)

(4,983)

(10,429)

(5,169)

Effect of exchange rate on cash, cash equivalents and restricted cash

(73)

211

(311)

382

Net increase (decrease) in cash, cash equivalents and restricted cash

(3,622)

371

(3,146)

819

Cash, cash equivalents and restricted cash at beginning of period

16,865

19,826

16,389

19,378

Cash, cash equivalents and restricted cash at end of period

$          13,243

$          20,197

$   13,243

$   20,197

 

Travelzoo

Segment Information from Continuing Operations

(Unaudited)

(In thousands)

 

Three months ended June 30, 2024

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$       14,015

$         6,004

$         1,099

$              23

$          21,141

Intersegment revenues

119

(53)

(66)

—

—

Total net revenues

14,134

5,951

1,033

23

21,141

Operating profit (loss)

$         3,717

$            512

$            (34)

$          (184)

$            4,011

Three months ended June 30, 2023

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$       13,642

$         6,462

$         1,011

$              13

$          21,128

Intersegment revenues

491

(575)

84

—

—

Total net revenues

14,133

5,887

1,095

13

21,128

Operating profit (loss)

$         3,753

$          (239)

$              97

$          (338)

$            3,273

Six months ended June 30,
2024

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$       28,288

$       12,584

$         2,199

$              55

$          43,126

Intersegment revenues

74

29

(103)

—

—

Total net revenues

28,362

12,613

2,096

55

43,126

Operating profit (loss)

$         8,155

$         1,894

$          (133)

$          (314)

$            9,602

Six months ended June 30,
2023

Travelzoo North

America

Travelzoo Europe

Jack’s Flight Club

New Initiatives

Consolidated

Revenues from unaffiliated customers

$       28,209

$       12,540

$         1,959

$              21

$          42,729

Intersegment revenues

682

(766)

84

—

—

Total net revenues

28,891

11,774

2,043

21

42,729

Operating profit (loss)

$         8,269

$            218

$              52

$          (555)

$            7,984

 

Travelzoo

Reconciliation of GAAP to Non-GAAP Information

(Unaudited)

(In thousands, except per share amounts)

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

GAAP operating expense

$   14,610

$   14,975

$   28,364

$   29,174

Non-GAAP adjustments:

Amortization of intangibles (A)

88

389

405

787

Stock option expenses (B)

688

431

783

827

Severance-related expenses (C)

30

56

30

95

Non-GAAP operating expense

13,804

14,099

27,146

27,465

GAAP operating profit

4,011

3,273

9,602

7,984

Non-GAAP adjustments (A through C)

806

876

1,218

1,709

Non-GAAP operating profit

4,817

4,149

10,820

9,693

Media Contact:
Investor Relations:
ir@travelzoo.com

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SOURCE Travelzoo

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Technology

Monster Energy and Call of Duty® Take Over Cosm Los Angeles for Immersive Modern Warfare® 4 Launch Celebration

Published

3 minutes ago

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October 25, 2026

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Celebrities, athletes and creators came together for an action-packed night of gaming, immersive entertainment and exclusive experiences on Cosm’s massive Shared Reality Display. 

INGLEWOOD, Calif., Oct. 25, 2026 /PRNewswire/ — Monster Energy transformed Cosm Los Angeles into the ultimate gamer’s destination on Friday night as fans came together to celebrate the highly anticipated launch of Call of Duty®: Modern Warfare® 4 at an immersive event fueled by Monster Energy.

Set against Cosm’s spectacular 87-foot-diameter, 12K+ LED dome, the Monster Energy x Call of Duty celebration brought the action of one of gaming’s most anticipated franchises into the real world. Guests experienced live gameplay, special celebrity appearances, interactive activations, and real-life displays inspired by the game, including the Monster Energy Operator Skin, alongside a lineup of Polaris vehicles including the DAGOR, which is playable in Modern Warfare 4 – all in an electrifying atmosphere that blurred the lines between gaming and reality.

The event drew a guest list spanning entertainment, sports and gaming, including actors O’Shea Jackson Jr., Trevor Jackson and Khleo Thomas, who arrived by Slingshot, rapper Symba, social media star Lin Lamar (Pinkchyu), and Monster Energy UFC fighters Johnny Walker and Jalin Turner.

Guests lined up around the block for a jam-packed program, featuring a live edition of The Flank, hosted by ZooMaa and Ben Nissim, including an interview with Infinity Ward developer Jacky Reynolds and the reveal of the CDL Launch Invitational groups. Fans also got a closer look at Modern Warfare 4’s DMZ mode during a gameplay showcase led by Infinity Ward game designer Roman Spazafumo.

The gaming action continued with artists, athletes and gaming creators, including Jericho, Jaybroski, Tyler Rizzi, Johnny Walker and LAFC’s Denis Bouanga, facing off in two-versus-two matchups, while fans tested their own skills in king-of-the-hill rounds. Monster Energy’s skate team also took to the virtual battlefield, swapping their boards for controllers, with Ishod Wair, Filipe Mota and Elliot Sloan going head-to-head in a Modern Warfare 4 showdown.

“With Call of Duty, we’re always looking for ways to push the experience beyond the screen,” said Jordi Gayola, CMO of the Americas at Monster Energy. “Bringing this launch to Cosm gave us an incredible opportunity to put fans, athletes and creators right in the middle of the action. It’s about bringing our worlds together and creating the kind of unforgettable experience that only Monster Energy can deliver.”

Beyond the main gameplay, fans enjoyed exclusive merchandise giveaways and immersive experiences, while the Modern Warfare 4-themed experience extended to the menu, which featured Korean-inspired dishes including kimchi mandu, Korean corn cheese nachos, and gochujang-glazed wings, alongside complimentary Monster Energy throughout the venue.

The launch also spotlighted Monster Energy’s ongoing Call of Duty promotional partnership, running through March 31, 2027. Fans can earn 15 minutes of Double XP per qualifying Monster Energy Original Green, Zero Sugar or Zero Ultra can, alongside exclusive in-game rewards, including a Large Decal, two weapon blueprints and two Operator Skins unlocked across the first five cans. The collaboration also extends beyond the game through four Monster Energy x Polaris vehicle sweepstakes at participating 7-Eleven, Hy-Vee, QuikTrip and RTG stores, with entry via retailer-specific QR codes in-store.

For more information on the Monster Energy x Call of Duty partnership, promotion and rewards, visit callofduty.monsterenergy.com.

Images from the Monster Energy Call of Duty®: Modern Warfare® 4 Launch Day are available HERE. 

Photo Credit: Randy Shropshire/Getty Images for Monster Energy.

About Monster Energy
Based in Corona, California, Monster Energy is a leading marketer of energy drinks and alternative beverages. Known for its connection to action sports, motorsports, music, gaming and athletes around the world, Monster Energy fuels the passions of its fans through products, partnerships and experiences that bring communities together. For more information, visit MonsterEnergy.com.

Media Contact:
press@monsterenergy.com 

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SOURCE Monster Energy

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Come Back to Firefox: Mozilla launches its most ambitious campaign yet to bring people back to the independent alternative to big tech browsers

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1 hour ago

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October 25, 2026

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As tracking and unwanted AI reshape the web, Firefox reunites the internet’s original viral icons to make the case for a browser that puts people back in control.

SAN FRANCISCO, Oct. 25, 2026 /PRNewswire/ — In its new campaign, Come Back to Firefox, the independent browser by Mozilla reunites personalities behind some of the early internet’s biggest viral videos and memes for one simple message: The internet you loved is still here, and Firefox is the easiest way back.

This multi-market campaign is aimed at people who once used Firefox and left. While it nods to the past, Firefox continues to evolve, giving people more reasons to love and rediscover it today. It arrives after a transformative year for the browser:

Business growth and partnerships: A dedicated Enterprise browser giving organizations expert support and control over their data. Technical partnerships with NVIDIA and Mistral, extending what Firefox can do from gaming to AI.

Increased protection and control: New products and features shipped including a free built-in VPN to help keep browsing private, with no extra download or cost. AI Controls, to let people decide when and whether to use AI, and an Ad Blocker for Firefox on iOS for fewer ads and trackers.

Brand and culture: A new modern design, a first sports partnership with Wrexham AFC and World Cup presence connecting Firefox to one of the year’s biggest cultural moments.

“Firefox was there then, we’re here now, and what we stand for matters more than ever,” said John Solomon, Chief Marketing Officer at Mozilla. “People who left Firefox years ago will find a browser that’s more private and gives them more control, including over AI.”

The Campaign

Come Back to Firefox brings together some of the world’s most memorable internet icons: Numa Numa Guy, Bad Luck Brian, Overly Attached Girlfriend, Kelly of “Shoes” fame, Where the Hell Is Matt?, Annoying Orange, Apparently Kid, Tay Zonday, Chuck Testa, Success Kid, and Evolution of Dance. Each takes on a modern frustration with humor:

Overly Attached Girlfriend may have wanted to know everything about you, but your browser shouldn’t.Dancing Matt boogied all over the world, without any corporations tracking him or selling his personal data.And while Annoying Orange is still incredibly annoying, he’s not as annoying as forced AI features.

The campaign launches in the United States Sunday, October 25th, with two distinct 30-second commercials airing on NBC. Next, it rolls out in Germany, France, and the United Kingdom.

“Being on set was a reminder of why those moments mattered,” said Solomon. “Ordinary people making things on the internet that made it feel so surprising and fun, and that’s the feeling we wanted to bring back.”

The campaign was created by award-winning independent agency We Believers, and brought to life by directing collective Sunny Sixteen and production company nobodys. Together, they meticulously recreated each performance, look, and even the sets from the original videos, taking each internet personality back to where their story began.

“We wanted an idea that truly belongs to Firefox, a challenger browser that helped shape the internet’s golden years and stayed independent as Big Tech took over,” said Gustavo Lauria, Founder and CCO at We Believers.

The campaign is one of Firefox’s most ambitious yet but is rooted in what has always set the browser apart from Big Tech: its commitment to putting people before profits and giving them more control over their online experience. Now, Firefox says it’s never been a better time for people who once used the browser to take another look.

About Firefox

Firefox is a web browser developed by Mozilla, built to give people more choice and control over their online experience. With built-in tracking protection, customization options, and a commitment to an open internet, Firefox offers an alternative to browsers developed by the world’s largest technology companies. Learn more at firefox.com/welcomeback.

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SOURCE Mozilla

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Best AI Tools for Small Business Marketing (2026): CapCut Featured for Creating Professional Video and Visual Content by Expert Consumers

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October 25, 2026

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NEW YORK, Oct. 25, 2026 /PRNewswire/ — Expert Consumers has recognized CapCut in its 2026 coverage of the best AI tools for small business marketing, highlighting the platform’s collection of AI-powered features for creating and editing video, images, audio, and other visual content. The recognition reflects growing interest in tools that support practical marketing activities, including campaign development, promotional content production, and adapting creative assets for different digital channels.

Best AI Marketing Tools

Seedance 2.0 – an AI video generation model that creates videos from text prompts or imagesSeedream – an AI image generation model that creates high-quality visuals from text prompts

Small businesses face growing pressure to maintain an active digital presence while managing limited time and resources. From product photography and promotional videos to social media graphics and campaign materials, effective marketing depends on a steady supply of relevant, engaging content. Artificial intelligence is creating new ways to simplify these tasks and help businesses turn creative ideas into usable marketing assets.

CapCut provides a range of AI-assisted capabilities that support several stages of content production. These include prompt-based video generation, AI image creation, background removal, image expansion, music generation, and photo animation. For small businesses managing marketing internally, these functions offer options for developing creative assets without relying entirely on manual production processes.

AI Video Generation Supports Promotional Campaigns

Video is an important format for demonstrating products, explaining services, and introducing new offerings. Small businesses can use video across social media, websites, digital advertisements, and online product pages. Producing content regularly, however, can require considerable planning and editing.

CapCut’s Seedance 2.0 AI video generator offers a prompt-based approach to video creation. Users can describe a creative concept and generate video content that serves as a starting point for further editing.

For a small retailer preparing a product promotion, AI-generated video can help explore different visual approaches before a final concept is selected. A service provider could use the same process to develop ideas for an explainer or an introductory campaign.

Prompt-based generation can reduce the effort involved in developing initial concepts. Generated material still requires review to ensure the finished video accurately represents the business, communicates the intended message, and follows relevant brand guidelines.

AI Image Creation Helps Develop Marketing Materials

Visual content plays a central role in how businesses present products and services online. Promotional graphics, campaign imagery, and social media visuals need to communicate a clear message while maintaining a recognizable style.

CapCut’s Seedream AI image generator enables users to generate images from text prompts. The tool can support concept drafts, campaign planning, and experimentation with different visual directions before final assets are prepared.

For example, a small business planning a seasonal campaign could explore different visual themes and compositions during the early planning stage. These drafts can help establish a creative direction before additional time is spent refining the final materials.

CapCut’s GPT Image 2 provides another option for generating images from natural language instructions. The feature can support the development of promotional imagery, marketing graphics, and other visual assets.

AI image generation gives businesses more opportunities to test creative ideas during campaign development. However, generated images should be checked for visual errors, accurate product representation, and consistency with the intended brand identity before publication.

Image Editing Simplifies Content Preparation

Creating new marketing assets is only part of the production process. Existing photographs and graphics often need adjustments before they are suitable for different platforms.

CapCut’s AI background removal tool helps isolate subjects from their original backgrounds. This can simplify the preparation of product photographs, promotional graphics, and other images that require a different visual setting.

For a small retailer, background removal can make it easier to prepare product images for online listings or promotional materials. Separated subjects can be incorporated into new compositions without recreating the entire image.

The AI Image Extender addresses a separate challenge: adapting images to different dimensions. The tool generates additional visual content beyond an image’s original boundaries, helping users adjust compositions without relying entirely on cropping or stretching.

A campaign may require square graphics for social media, vertical visuals for mobile viewing, and horizontal banners for a website. Image expansion provides another option for adapting existing assets to those formats.

These editing capabilities can help reduce repetitive production work while supporting a more consistent presentation across marketing channels.

AI Audio and Photo Animation Expand Creative Options

Marketing content often combines visuals, movement, and sound. Music can establish a mood, support storytelling, and help create a more complete video presentation.

CapCut’s SeedMusic AI audio generator supports AI-assisted music creation based on prompts. The feature can help develop audio for promotional videos, product demonstrations, and social media content.

Generated music offers a starting point for matching audio to a campaign’s intended atmosphere. Before publication, businesses should review the output and confirm that the applicable usage terms cover the intended commercial application.

CapCut also provides a Photo-to-3D tool that transforms still images into more dynamic visual presentations. This capability can help repurpose existing photography for promotional videos, social posts, and digital campaigns.

For small businesses with an existing collection of product images, adding movement can provide another way to present familiar assets. The approach also expands the range of creative formats available without requiring every campaign to begin with new photography.

Connecting AI Tools to Everyday Marketing Workflows

The practical value of AI-powered creative tools depends on how effectively they address specific marketing needs. Small businesses do not necessarily need every available feature for every campaign. Selecting tools according to content requirements can help keep production focused.

A retailer might begin with Seedream to explore campaign concepts, then use GPT Image 2 to generate supporting visuals. Background removal can help prepare product photography, while AI Image Extender can adapt selected assets to different layouts. Seedance 2.0 can support video concept development, with SeedMusic offering an option for accompanying audio.

A service-based business might prioritize short promotional videos, explanatory graphics, and social media content instead. The same collection of tools can support different production requirements depending on the business model and campaign objectives.

Using AI does not remove the need for creative direction or quality control. Content should be checked for factual accuracy, appropriate product representation, brand consistency, and compliance with advertising requirements. Human review also helps ensure that generated assets serve a clear marketing purpose rather than adding unnecessary material to a campaign.

AI-Assisted Marketing for Small Businesses

Interest in the best AI tools for small business marketing reflects the need for practical ways to produce and adapt digital content. Businesses must balance the demand for regular campaign updates with the resources available for creative production.

Expert Consumers’ recognition of CapCut highlights the platform’s range of AI-assisted functions for video generation, image creation, editing, audio production, and photo animation. These capabilities offer small businesses several options for developing marketing materials across digital channels.

As AI becomes more integrated into content production, effective use will depend on matching the right tools to specific tasks. With clear campaign objectives, careful editing, and appropriate review, CapCut’s creative features can help businesses develop marketing assets while reducing some of the repetitive work involved in preparing content for publication.

Visit the Expert Consumers site for the full review.

About CapCut

CapCut is an AI-powered photo and video editing platform designed to make high-quality video creation accessible across devices. The platform supports creators, businesses, and everyday users with tools for video editing, AI video generation, captions, templates, audio, and visual editing. CapCut is available across mobile, web, desktop, and iPad experiences, helping users create, edit, and prepare video content for social media, marketing, education, and personal projects.

About Better Business Advice: Better Business Advice covers the news and strategies driving modern business success. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided.

View original content:https://www.prnewswire.com/news-releases/best-ai-tools-for-small-business-marketing-2026-capcut-featured-for-creating-professional-video-and-visual-content-by-expert-consumers-302918043.html

SOURCE ExpertConsumers.org

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