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TripAdvisor (TRIP - Free Report) reported non-GAAP fourth-quarter 2022 earnings of 16 cents per share, beating the Zacks Consensus Estimate of 5 cents. The bottom line compares favorably with the year-ago quarter’s loss of 1 cent per share.
Revenues of $354 million rose 47% year over year and surpassed the Zacks Consensus Estimate of $344 million. Top-line growth was driven by rising demand for travel industry-related services. Strong momentum across Tripadvisor Core and Viator contributed well to top-line growth.
The well-performing TheFork segment benefited the company.
However, adverse foreign currency fluctuations and macroeconomic headwinds affected the quarterly performance.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor reports revenues under three segments: Tripadvisor Core, Viator and TheFork.
Tripadvisor Core: Revenues summed $217 million (accounting for 61.3% of revenues), up 34% year over year. Revenues from Tripadvisor-branded hotels, including hotel auction and B2B subscription offerings, increased 36% from the prior-year quarter’s level to $140 million. Tripadvisor-branded display and platform revenues jumped 14% year over year to $33 million.
Revenues from Tripadvisor experiences and dining were $34 million, increased 70% year over year. Other revenues, consisting of rentals, flights, cars and cruise revenues, remained flat with the prior-year quarter’s figure of $10 million.
Viator: Revenues totaled $127 million (35.9% of the top line). The figure skyrocketed 115% from the year-ago quarter.
TheFork: Revenues were $33 million (9.3% of revenues), increasing 10% year over year.
Operating Results
TripAdvisor’s selling and marketing costs increased 54% year over year to $194 million.
General and administrative costs were up 26.1% from the year-ago quarter’s level to $58 million. Technology and content costs of $60 million increased 17.6% on a year-over-year basis.
TRIP reported an operating loss of $13 million in the fourth quarter compared with the $28-million loss reported in the prior-year quarter.
In the reported quarter, the total adjusted EBITDA margin was 12%, flat on a year-over-year basis.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash and cash equivalents were $1.02 billion, down from $1.07 billion as of Sep 30, 2022.
Long-term debt of $836 million remained flat with the previous quarter’s figure.
Cash used in operations was $40 million against $60 million of cash generated from operations in the prior quarter.
Additionally, free cash flow was an outflow of $55 million in the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #3 (Hold).
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TripAdvisor (TRIP) Q4 Earnings & Revenues Beat, Rise Y/Y
TripAdvisor (TRIP - Free Report) reported non-GAAP fourth-quarter 2022 earnings of 16 cents per share, beating the Zacks Consensus Estimate of 5 cents. The bottom line compares favorably with the year-ago quarter’s loss of 1 cent per share.
Revenues of $354 million rose 47% year over year and surpassed the Zacks Consensus Estimate of $344 million. Top-line growth was driven by rising demand for travel industry-related services. Strong momentum across Tripadvisor Core and Viator contributed well to top-line growth.
The well-performing TheFork segment benefited the company.
However, adverse foreign currency fluctuations and macroeconomic headwinds affected the quarterly performance.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote
Quarterly Details
TripAdvisor reports revenues under three segments: Tripadvisor Core, Viator and TheFork.
Tripadvisor Core: Revenues summed $217 million (accounting for 61.3% of revenues), up 34% year over year. Revenues from Tripadvisor-branded hotels, including hotel auction and B2B subscription offerings, increased 36% from the prior-year quarter’s level to $140 million. Tripadvisor-branded display and platform revenues jumped 14% year over year to $33 million.
Revenues from Tripadvisor experiences and dining were $34 million, increased 70% year over year. Other revenues, consisting of rentals, flights, cars and cruise revenues, remained flat with the prior-year quarter’s figure of $10 million.
Viator: Revenues totaled $127 million (35.9% of the top line). The figure skyrocketed 115% from the year-ago quarter.
TheFork: Revenues were $33 million (9.3% of revenues), increasing 10% year over year.
Operating Results
TripAdvisor’s selling and marketing costs increased 54% year over year to $194 million.
General and administrative costs were up 26.1% from the year-ago quarter’s level to $58 million. Technology and content costs of $60 million increased 17.6% on a year-over-year basis.
TRIP reported an operating loss of $13 million in the fourth quarter compared with the $28-million loss reported in the prior-year quarter.
In the reported quarter, the total adjusted EBITDA margin was 12%, flat on a year-over-year basis.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash and cash equivalents were $1.02 billion, down from $1.07 billion as of Sep 30, 2022.
Long-term debt of $836 million remained flat with the previous quarter’s figure.
Cash used in operations was $40 million against $60 million of cash generated from operations in the prior quarter.
Additionally, free cash flow was an outflow of $55 million in the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are Agilent Technologies (A - Free Report) , Arista Networks (ANET - Free Report) and Garmin (GRMN - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent has gained 8.4% in the past year. A’s long-term earnings growth rate is projected at 10%.
Arista Networks has gained 6.1% in the past year. The long-term earnings growth rate for ANET is projected at 17.5%.
Garmin has lost 24.6% in the past year. The long-term earnings growth rate for GRMN is projected at 5.6%.