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TripAdvisor (TRIP) Reports Q4 Loss, Y/Y Revenue Increase

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TripAdvisor (TRIP - Free Report) reported an adjusted fourth-quarter 2021 loss of 1 cent per share versus the Zacks Consensus Estimate for earnings of 9 cents. Further, the bottom line is narrower than the loss of 41 cents per share reported in the year-ago quarter. The company reported earnings per share of 16 cents in the prior quarter.

Revenues of $241 million skyrocketed 108% year over year. However, the figure missed the consensus mark by 2.3% and declined 20.5% sequentially.

For the fourth quarter, monthly unique users on TripAdvisor sites were approximately 73% driven by the progress in the vaccination drive, relaxing government restrictions and an increase in consumer travel.

Strength in Tripadvisor Plus subscription offerings also benefited the quarterly performance.

Yet, travel disruptions caused by Omicron — the rapidly spreading COVID-19 variant — were concerns.

TripAdvisor, Inc. Price, Consensus and EPS Surprise

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 $133 million (accounting for 55% of revenues), which increased 80% year over year. Revenues from TripAdvisor-branded hotels increased 84% from the prior-year quarter to $105 million. In addition, TripAdvisor-branded display and platform increased 65% year over year to $28 million.

Experiences & Dining: The company generated revenues of $98 million (41% of total revenues) from this segment. The figure increased 172% from the year-ago quarter, driven by the Viator point of sale despite the negative impacts of the coronavirus pandemic.

Other: Revenues from this segment came in at $10 million (4% of revenues), increasing 67% year over year. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China.

Operating Results

TripAdvisor’s selling & marketing costs increased 91% year over year to $126 million, driven by increasing spending in search engine marketing 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 5% year over year to $46 million.

Technology & content costs decreased 7% year over year to $51 million.

The company reported an operating loss of $28 million for the fourth quarter compared with $92 million in the year-ago period.

Balance Sheet & Cash Flow

As of Dec 31, 2021, cash and cash equivalents were $723 million, up from $682 million reported on Sep 30, 2021.

Long-term debt as of Dec 31, 2021 was $833 million. TRIP’s long-term debt was $832 million as of Sep 30, 2021.

Cash provided by operating activities was $65 million for the fourth quarter versus cash used in operating activities of $64 million in the third quarter.

Additionally, free cash flow was $51 million for the fourth quarter.

Zacks Rank & Stocks to Consider

TripAdvisor currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the retail-wholesale sector include DICK’s Sporting Goods (DKS - Free Report) , Lowe’s Companies (LOW - Free Report) and Dollar Tree (DLTR - 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.

DICK’s is scheduled to release fourth-quarter fiscal 2021 results on Mar 8. It has gained 48.7% over a year. The long-term earnings growth rate for DKS is currently projected at 11.7%.

Lowe’s is slated to report fourth-quarter fiscal 2021 results on Feb 23. It has gained 28.1% over a year. The long-term earnings growth rate for LOW is currently projected at 13.8%.

Dollar is slated to report fourth-quarter fiscal 2021 results on Mar 2. It has gained 27% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.2%.

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