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TripAdvisor (TRIP) Q2 Earnings Miss Mark, Revenues Rise Y/Y
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TripAdvisor (TRIP - Free Report) reported adjusted second-quarter 2021 loss of 7 cents per share, wider than the Zacks Consensus Estimate of a loss of 6 cents. The company incurred a loss of 76 cents per share in the year-ago quarter.
Revenues of $235 million surpassed the consensus mark by 18.1% and increased 298% year over year.
For April, May and June, monthly unique users on TripAdvisor sites were approximately 59%, 71%, and 79%, respectively. The company witnessed a sequential improvement in monthly unique user base driven by the ongoing vaccination drive, relaxing government restrictions and a rebound in leisure travel trend, mainly in the United States.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor reports revenues in three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Hotels, Media & Platform: The segment generated revenues of $156 million (accounting for 66% of revenues), which increased 311% year over year. Revenues from TripAdvisor-branded hotels increased 323% from the prior-year quarter to $131 million. In addition, TripAdvisor-branded display and platform increased 257% year over year to $25 million.
Experiences & Dining: The company generated revenues of $68 million (29% of total revenues) from this segment. The figure increased 386% from the year-ago quarter.
Other: Revenues from this segment came in at $11 million (5% of revenues), increasing 57% year over year. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China.
Operating Results
TripAdvisor’s selling & marketing costs increased 128% year over year to $123 million, driven by increasing spending in SEM and other online traffic acquisitions across all segments and businesses to meet the rising consumer travel demand amid the travel sector recovery period.
General & administrative costs were up 7% year over year to $46 million.
Technology & content costs increased 6% year over year to $54 million.
Operating loss was $35 million for the second quarter compared with a loss of $164 million in the year-ago period.
Balance Sheet & Cash Flow
As of Jun 30, 2021, cash and cash equivalents were $775 million, up from $674 million reported on Mar 31, 2021.
Long-term debt as of Jun 30, 2021 was $832 million compared with $831 million on Mar 31, 2021.
Cash provided by operating activities was $126 million in the second quarter against $19 million of cash used in operating activities in the first quarter.
Additionally, free cash flow was $112 million for the reported quarter.
Guidance
For the third quarter of 2021, TripAdvisor expects revenues and adjusted EBITDA to improve sequentially.
Zacks Rank & Stocks to Consider
TripAdvisor currently carries a Zacks Rank #3 (Hold).
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TripAdvisor (TRIP) Q2 Earnings Miss Mark, Revenues Rise Y/Y
TripAdvisor (TRIP - Free Report) reported adjusted second-quarter 2021 loss of 7 cents per share, wider than the Zacks Consensus Estimate of a loss of 6 cents. The company incurred a loss of 76 cents per share in the year-ago quarter.
Revenues of $235 million surpassed the consensus mark by 18.1% and increased 298% year over year.
For April, May and June, monthly unique users on TripAdvisor sites were approximately 59%, 71%, and 79%, respectively. The company witnessed a sequential improvement in monthly unique user base driven by the ongoing vaccination drive, relaxing government restrictions and a rebound in leisure travel trend, mainly in the United States.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote
Quarter Details
TripAdvisor reports revenues in three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Hotels, Media & Platform: The segment generated revenues of $156 million (accounting for 66% of revenues), which increased 311% year over year. Revenues from TripAdvisor-branded hotels increased 323% from the prior-year quarter to $131 million. In addition, TripAdvisor-branded display and platform increased 257% year over year to $25 million.
Experiences & Dining: The company generated revenues of $68 million (29% of total revenues) from this segment. The figure increased 386% from the year-ago quarter.
Other: Revenues from this segment came in at $11 million (5% of revenues), increasing 57% year over year. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China.
Operating Results
TripAdvisor’s selling & marketing costs increased 128% year over year to $123 million, driven by increasing spending in SEM and other online traffic acquisitions across all segments and businesses to meet the rising consumer travel demand amid the travel sector recovery period.
General & administrative costs were up 7% year over year to $46 million.
Technology & content costs increased 6% year over year to $54 million.
Operating loss was $35 million for the second quarter compared with a loss of $164 million in the year-ago period.
Balance Sheet & Cash Flow
As of Jun 30, 2021, cash and cash equivalents were $775 million, up from $674 million reported on Mar 31, 2021.
Long-term debt as of Jun 30, 2021 was $832 million compared with $831 million on Mar 31, 2021.
Cash provided by operating activities was $126 million in the second quarter against $19 million of cash used in operating activities in the first quarter.
Additionally, free cash flow was $112 million for the reported quarter.
Guidance
For the third quarter of 2021, TripAdvisor expects revenues and adjusted EBITDA to improve sequentially.
Zacks Rank & Stocks to Consider
TripAdvisor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector include AutoNation (AN - Free Report) , Conns (CONN - Free Report) and Five Below (FIVE - Free Report) . While AutoNation and Conns sport a Zacks Rank #1 (Strong Buy), Five Below carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for AutoNation, Conns and Five Below are currently projected at 20.2%, 23% and 32.6%, respectively.