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TripAdvisor (TRIP - Free Report) reported non-GAAP second-quarter 2023 earnings of 34 cents per share, missing the Zacks Consensus Estimate by 8.1%. The bottom line was down 8% year over year.
Revenues of $494 million surged 18% year over year and surpassed the Zacks Consensus Estimate of $474 million.
Top-line growth was driven by growing demand for travel industry-related services. Further, strong momentum across Viator contributed well to the top line.
Further, a well-performing TheFork segment benefited the company.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor reports revenues under three segments: Tripadvisor Core, Viator and TheFork.
Tripadvisor Core: Revenues summed $279 million (accounting for 56.5% of revenues), up 2% year over year. The figure came below the consensus mark of $286 million. Tripadvisor-branded display and platform revenues jumped 14% year over year to $42 million. Revenues from Tripadvisor experiences and dining were $50 million, increasing by 43% year over year.
However, revenues from Tripadvisor-branded hotels decreased 7% from the prior-year quarter’s level to $174 million. Other revenues consisting of rentals, flights, cars and cruise revenues were $13 million, down 7% year over year.
Viator: Revenues totaled $216 million (43.7% of the top line). The figure was up 59% from the year-ago quarter’s level. The figure surpassed the Zacks Consensus Estimate of $180 million.
TheFork: Revenues came in at $38 million (7.7% of revenues), increasing 19% year over year. The figure lagged the consensus mark of $38.3 million.
Operating Results
TripAdvisor’s selling and marketing costs increased 24% year over year to $270 million.
General and administrative costs were up 68% from the year-ago quarter’s level to $47 million. Technology and content costs of $71 million increased 34% on a year-over-year basis.
TRIP reported an operating margin that contracted 620 basis points (bps) year over year to 8.9% in the second quarter.
In the reported quarter, the total adjusted EBITDA margin was 18%, which contracted 810 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Jun 30, 2023, cash and cash equivalents were $1.14 billion compared with $1.13 billion as of Mar 31, 2023.
Long-term debt stood at $838 million at the end of the second quarter compared with $837 million at the end of the previous quarter.
Cash generated from operations was $105 million in the reported quarter, down from $135 million in the prior quarter.
Additionally, free cash flow was $90 million in the second quarter.
Zacks Rank & Other Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #4 (Sell).
Some better ranked stocks in the broader technology sector are Salesforce (CRM - Free Report) , AvidXchange (AVDX - Free Report) and Akamai Technologies (AKAM - Free Report) , each carrying a Zacks Rank #2.
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TripAdvisor (TRIP) Q2 Earnings Miss, Revenues Beat Estimates
TripAdvisor (TRIP - Free Report) reported non-GAAP second-quarter 2023 earnings of 34 cents per share, missing the Zacks Consensus Estimate by 8.1%. The bottom line was down 8% year over year.
Revenues of $494 million surged 18% year over year and surpassed the Zacks Consensus Estimate of $474 million.
Top-line growth was driven by growing demand for travel industry-related services. Further, strong momentum across Viator contributed well to the top line.
Further, a well-performing TheFork segment benefited the company.
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 $279 million (accounting for 56.5% of revenues), up 2% year over year. The figure came below the consensus mark of $286 million. Tripadvisor-branded display and platform revenues jumped 14% year over year to $42 million. Revenues from Tripadvisor experiences and dining were $50 million, increasing by 43% year over year.
However, revenues from Tripadvisor-branded hotels decreased 7% from the prior-year quarter’s level to $174 million. Other revenues consisting of rentals, flights, cars and cruise revenues were $13 million, down 7% year over year.
Viator: Revenues totaled $216 million (43.7% of the top line). The figure was up 59% from the year-ago quarter’s level. The figure surpassed the Zacks Consensus Estimate of $180 million.
TheFork: Revenues came in at $38 million (7.7% of revenues), increasing 19% year over year. The figure lagged the consensus mark of $38.3 million.
Operating Results
TripAdvisor’s selling and marketing costs increased 24% year over year to $270 million.
General and administrative costs were up 68% from the year-ago quarter’s level to $47 million. Technology and content costs of $71 million increased 34% on a year-over-year basis.
TRIP reported an operating margin that contracted 620 basis points (bps) year over year to 8.9% in the second quarter.
In the reported quarter, the total adjusted EBITDA margin was 18%, which contracted 810 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Jun 30, 2023, cash and cash equivalents were $1.14 billion compared with $1.13 billion as of Mar 31, 2023.
Long-term debt stood at $838 million at the end of the second quarter compared with $837 million at the end of the previous quarter.
Cash generated from operations was $105 million in the reported quarter, down from $135 million in the prior quarter.
Additionally, free cash flow was $90 million in the second quarter.
Zacks Rank & Other Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #4 (Sell).
Some better ranked stocks in the broader technology sector are Salesforce (CRM - Free Report) , AvidXchange (AVDX - Free Report) and Akamai Technologies (AKAM - Free Report) , each carrying a Zacks Rank #2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Salesforce shares have gained 70.7% in the year-to-date period. The long-term earnings growth rate for CRM is currently projected at 19.25%.
AvidXchange shares have increased 21.1% in the year-to-date period. The long-term earnings growth rate for AVDX is currently projected at 22.90%.
Akamai shares have gained 9.5% in the year-to-date period. The long-term earnings growth rate for AKAM is currently projected at 10%.