We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TripAdvisor (TRIP - Free Report) reported non-GAAP first-quarter 2024 earnings of 12 cents per share, which significantly jumped from the prior-year quarter’s 5 cents. The figure also beat the Zacks Consensus Estimate, which was pegged at break even.
Revenues of $395 million increased 6% year over year and surpassed the Zacks Consensus Estimate of $390.9 million.
Top-line growth was driven by the strong momentum in the Viator segment. A well-performing TheFork segment also benefited the company.
However, softness across Tripadvisor-branded hotels was concerning.
TRIP has lost 15.7% year to date against the industry’s rally of 16.8%.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor reports revenues under three segments: Tripadvisor Core, Viator and TheFork.
Brand Tripadvisor: Revenues summed $240 million (accounting for 60.8% of the total revenues), down 2% year over year. The figure lagged the consensus mark of $244 million. Media and advertising revenues jumped 10% year over year to $33 million. Revenues from experiences and dining were $36 million, increasing 9% year over year.
However, revenues from branded hotels decreased 5% year over year to $159 million. Other revenues within the segment were $12 million, which declined 8% year over year.
Viator: Revenues totaled $141 million (35.7%). The figure increased 23% year over year and surpassed the Zacks Consensus Estimate of $135 million.
TheFork: Revenues came in at $41 million (10.4%), increasing 17% year over year. The figure beat the consensus mark of $38.9 million.
Operating Results
TripAdvisor’s selling and marketing costs increased 1% year over year to $221 million. As a percentage of revenues, the figure contracted 300 basis points (bps) year over year.
General and administrative costs were up 17% from the year-ago quarter to $56 million. As a percentage of revenues, the figure expanded 100 bps year over year.
Technology and content costs of $76 million increased 12% on a year-over-year basis. As a percentage of revenues, the figure rose 100 bps year over year.
TRIP reported an operating loss of $15 million in the quarter under review, which was wider than the loss of $14 million in the year-ago quarter.
In the reported quarter, the total adjusted EBITDA margin was 12%, which expanded 300 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash and cash equivalents were $1.17 billion compared with $1.07 billion as of Dec 31, 2023.
The long-term debt stood at $840 million at the end of the first quarter compared with the previous quarter’s $839 million.
Tripadvisor generated $139 million of cash from operations in the reported quarter against $19 million of cash used in operations in the prior quarter.
The free cash flow was $123 million in the first quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #3 (Hold).
Image: Bigstock
TripAdvisor (TRIP) Q1 Earnings & Revenues Beat, Rise Y/Y
TripAdvisor (TRIP - Free Report) reported non-GAAP first-quarter 2024 earnings of 12 cents per share, which significantly jumped from the prior-year quarter’s 5 cents. The figure also beat the Zacks Consensus Estimate, which was pegged at break even.
Revenues of $395 million increased 6% year over year and surpassed the Zacks Consensus Estimate of $390.9 million.
Top-line growth was driven by the strong momentum in the Viator segment. A well-performing TheFork segment also benefited the company.
However, softness across Tripadvisor-branded hotels was concerning.
TRIP has lost 15.7% year to date against the industry’s rally of 16.8%.
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.
Brand Tripadvisor: Revenues summed $240 million (accounting for 60.8% of the total revenues), down 2% year over year. The figure lagged the consensus mark of $244 million. Media and advertising revenues jumped 10% year over year to $33 million. Revenues from experiences and dining were $36 million, increasing 9% year over year.
However, revenues from branded hotels decreased 5% year over year to $159 million. Other revenues within the segment were $12 million, which declined 8% year over year.
Viator: Revenues totaled $141 million (35.7%). The figure increased 23% year over year and surpassed the Zacks Consensus Estimate of $135 million.
TheFork: Revenues came in at $41 million (10.4%), increasing 17% year over year. The figure beat the consensus mark of $38.9 million.
Operating Results
TripAdvisor’s selling and marketing costs increased 1% year over year to $221 million. As a percentage of revenues, the figure contracted 300 basis points (bps) year over year.
General and administrative costs were up 17% from the year-ago quarter to $56 million. As a percentage of revenues, the figure expanded 100 bps year over year.
Technology and content costs of $76 million increased 12% on a year-over-year basis. As a percentage of revenues, the figure rose 100 bps year over year.
TRIP reported an operating loss of $15 million in the quarter under review, which was wider than the loss of $14 million in the year-ago quarter.
In the reported quarter, the total adjusted EBITDA margin was 12%, which expanded 300 bps on a year-over-year basis.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash and cash equivalents were $1.17 billion compared with $1.07 billion as of Dec 31, 2023.
The long-term debt stood at $840 million at the end of the first quarter compared with the previous quarter’s $839 million.
Tripadvisor generated $139 million of cash from operations in the reported quarter against $19 million of cash used in operations in the prior quarter.
The free cash flow was $123 million in the first quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #3 (Hold).
Investors interested in the broader retail-wholesale sector can consider some better-ranked stocks like The Gap (GPS - Free Report) , Amazon (AMZN - Free Report) and Target (TGT - Free Report) . The Gap sports a Zacks Rank #1 (Strong Buy), and Amazon and Target carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap has lost 3.9% in the year-to-date period. The long-term earnings growth rate for GPS is estimated at 12%.
Shares of Amazon have gained 50.7% in the year-to-date period. The long-term earnings growth rate for AMZN is projected at 29.60%.
Target has gained 11.5% in the year-to-date period. The long-term earnings growth rate for TGT is anticipated to be 11.36%.