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TripAdvisor (TRIP) Posts In-Line Q1 Loss, Sees Revenue Rise Y/Y

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TripAdvisor (TRIP - Free Report) reported an adjusted first-quarter 2022 loss of 9 cents per share, in line with the Zacks Consensus Estimate. The bottom line is narrower than the year-ago quarter’s loss of 39 cents per share. TRIP reported a loss per share of 1 cent in the prior quarter.

Revenues of $262 million skyrocketed 113% year over year. The same further surpassed the consensus mark by 4.2% and increased 8.7% sequentially.

The top-line increase was driven by a recovery in consumer travel demand owing to the progress in vaccination drives and the relaxation of government restrictions.

For the first quarter, monthly unique users on TripAdvisor-branded sites increased 27% from the year-ago quarter’s level.

TripAdvisor, Inc. Price, Consensus and EPS Surprise

TripAdvisor, Inc. Price, Consensus and EPS Surprise

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

Quarterly Details

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

Hotels, Media & Platform: The segment generated revenues of $160 million (accounting for 61% of revenues), up 82% year over year. Revenues from TripAdvisor-branded hotels, including hotel auction and B2B subscription offerings, increased 84% from the prior-year quarter’s level to $136 million. In addition, TripAdvisor-branded display and platform increased 71% year over year to $24 million.

Experiences & Dining: The segment generated revenues of $92 million (35% of total revenues) from this segment. The figure skyrocketed 229% from the year-ago quarter’s level, driven by increased experiences and dining revenues and the Viator point of sale business.

Other: Revenues from this segment came in at $10 million (4% of revenues), increasing 43% year over year. This segment includes revenues from rentals, flights and cars, and cruise.

Operating Results

TripAdvisor’s selling and marketing costs increased 93% year over year to $141 million, driven by higher spending on search engine marketing and other online traffic acquisitions across all segments and businesses to meet rising consumer travel demand amid the travel-sector recovery period.

General and administrative costs were up 5% from the year-ago quarter’s level to $40 million.

Technology and content costs of $54 million decreased 2% on a year-over-year basis.

TRIP reported an operating loss of $20 million for the first quarter of 2022 compared with $84 million loss in the fourth quarter of 2021.

In the reported quarter, non-GAAP adjusted EBITDA was $27 million against  ($26) million in the same quarter last year.

Balance Sheet & Cash Flow

As of Mar 31, 2022, cash and cash equivalents were $781 million, up from $723 million reported on Dec 31, 2021.

Long-term debt as of Mar 31, 2022 was $834 million. TRIP’s long-term debt was $833 million as of Dec 31, 2021.

Cash provided by operating activities was $86 million for the reported quarter compared with $65 million in the prior quarter.

Additionally, free cash flow was $72 million for the first quarter.

Zacks Rank & Other Stocks to Consider

TripAdvisor currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the retail-wholesale sector are AutoNation (AN - Free Report) , Costco Wholesale (COST - Free Report) and Dollar Tree (DLTR - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AutoNation has gained 15.7% over a year. The long-term earnings growth rate for AN is currently projected at 23.6%.

Shares of Costco Wholesale have rallied 39.9% over a year. The long-term earnings growth rate for COST is currently projected at 9.1%.

Dollar has gained 41.7% over a year. The long-term earnings growth rate for DLTR is currently projected at 15.5%.