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TripAdvisor (TRIP) Q3 Loss Narrower Than Expected, Sales Top

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TripAdvisor Inc. (TRIP - Free Report) reported adjusted third-quarter 2020 loss of 17 cents per share, narrower than the Zacks Consensus Estimate of a loss of 29 cents. Earnings of 58 cents per share were reported in the year-ago quarter.

Revenues for the third quarter were $151 million, surpassing the Zacks Consensus Estimate by 2.3%. However, the top line was down 65% year over year.

For July, August, and September, monthly unique users on Tripadvisor sites were approximately 67%, 73%, and 74%, respectively.

TripAdvisor, Inc. Price, Consensus and EPS Surprise

TripAdvisor, Inc. Price, Consensus and EPS Surprise

TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote

Revenue Segments

TripAdvisor reports revenues in three segments: Hotels, Media & Platform, Experiences & Dining, and Other.

Revenues of $80 million (accounting for 53% of total revenues) from the Hotels, Media & Platform segment were down 66% from the year-ago quarter.

Revenues of $53 million from the Experiences & Dining segment, which accounted for 35% of total revenues, were also down 62% year over year.

The Other segment contributed the remaining 12% to total revenues. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $18 million, down 63% from the year-ago quarter.

Operating Results

TripAdvisor’s operating expenses (selling & marketing, technology & content, and general & administrative) of $151 million were down 50.2% from $303 million a year ago. Operating loss was $46 million for the third quarter versus operating profit of 68 million in the year-ago period.

On a GAAP basis, the company recorded net loss of $48 million or loss of 36 cents per share versus net income of $50 million or earnings of 36 cents in the prior-year quarter.

Balance Sheet & Cash Flow

TripAdvisor exited the quarter with cash and cash equivalents of roughly $446 million, down from $698 million recorded in the second quarter.

Accounts receivables were $91 million, up from $74 million in the second quarter.

As of Sep 30, 2020, the company had a long-term debt of $490 million.
Cash flow from operations was ($31) million versus ($78) million in the second quarter. Capex was $15 million, in line with the second quarter. Free cash flow was ($42) million versus ($93) million in the second quarter.

Zacks Rank & Stocks to Consider

Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Marchex, Inc. (MCHX - Free Report) , Overstock.com, Inc. (OSTK - Free Report) and Revolve Group, Inc. (RVLV - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Marchex, Overstock.com, and Revolve Group is currently projected at 15%, 20% and 17.3%, respectively.

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