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TripAdvisor (TRIP - Free Report) reported first-quarter 2025 non-GAAP earnings of 14 cents per share, which increased 17% from the prior-year quarter. The figure beat the Zacks Consensus Estimate by 180%.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Revenues of $398 million increased 1% year over year. The figure beat the Zacks Consensus Estimate by 2.31%. The top line was driven by its marketplace businesses, such as Viator and TheFork, both of which showed growth in the reported quarter.
Quarterly Details of TRIP
Brand Tripadvisor: Revenues totaled $219 million (accounting for 55% of the total revenues) for the segment, down 8% year over year. The figure beat the consensus mark of $214 million. Media and advertising revenues decreased 6% year over year to $31 million.
Revenues from experiences and dining were $30 million, decreasing 15% year over year. Performance in experiences was driven by Brand Tripadvisor’s segment-specific marketing strategy and ROI targets.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
Revenues from branded hotels decreased 7% year over year to $148 million. Other revenues within the segment totaled $10 million, representing a 19% decline year over year.
Viator: The segment’s revenues totaled $156 million, accounting for 39.1% of the total revenues. The figure increased 10% year over year and beat the Zacks Consensus Estimate of $155 million.
TheFork: Revenues for the segment totaled $46.4 million, accounting for 11.7% of the total revenues and increasing 12% year over year. The figure beat the consensus mark of $46.04 million.
TRIP’s Operating Results
TripAdvisor’s cost of sales increased 9% year over year to $27 million for the first quarter. As a percentage of revenues, the figure expanded 50 bps year over year.
Marketing costs were up 6% from the year-ago quarter to $172 million. As a percentage of revenues, the figure expanded 200 bps year over year.
General and administrative costs were down 41% from the year-ago quarter to $17 million. As a percentage of revenues, the figure contracted 300 bps year over year.
Technology costs totaled $22 million, which increased 4% on a year-over-year basis. As a percentage of revenues, the figure expanded 20 bps year over year.
TRIP reported an operating loss of $15 million in the quarter under review, which was in line with the loss of $15 million in the year-ago quarter.
In the reported quarter, the total adjusted EBITDA margin was 11%, which contracted by 80 bps on a year-over-year basis.
Balance Sheet & Cash Flow of TRIP
As of March 31, 2025, cash and cash equivalents were $1.2 billion compared with $1.1 billion as of Dec. 31, 2024.
The long-term debt was $1.16 billion at the end of the first quarter compared with the previous quarter’s $831 million.
TripAdvisor reported $102 million of cash from operations in the reported quarter against negative cash from operations of $2 million in the prior quarter.
The company reported free cash flow of $83 million in the first quarter.
Q2 2025 Guidance
TRIP expects its revenue growth for the second quarter of 2025 to be between 5% and 8%.
For Viator, the company expects mid-teens growth in the number of experiences booked and revenue growth of approximately 9% to 11%.
For Brand Tripadvisor, the company expects a sequential improvement in revenues of flat to a 2% decline year over year.
For TheFork, TRIP expects revenues to grow sequentially in the range of 26% to 28%, which includes approximately six percentage points of currency benefit at current rates.
For the second quarter of 2025, the adjusted EBITDA margin is expected to be approximately in the range of 16-18%.
Image: Bigstock
TripAdvisor Q1 Earnings Beat Estimates, Revenues Rise Y/Y
TripAdvisor (TRIP - Free Report) reported first-quarter 2025 non-GAAP earnings of 14 cents per share, which increased 17% from the prior-year quarter. The figure beat the Zacks Consensus Estimate by 180%.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Revenues of $398 million increased 1% year over year. The figure beat the Zacks Consensus Estimate by 2.31%. The top line was driven by its marketplace businesses, such as Viator and TheFork, both of which showed growth in the reported quarter.
Quarterly Details of TRIP
Brand Tripadvisor: Revenues totaled $219 million (accounting for 55% of the total revenues) for the segment, down 8% year over year. The figure beat the consensus mark of $214 million. Media and advertising revenues decreased 6% year over year to $31 million.
Revenues from experiences and dining were $30 million, decreasing 15% year over year. Performance in experiences was driven by Brand Tripadvisor’s segment-specific marketing strategy and ROI targets.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote
Revenues from branded hotels decreased 7% year over year to $148 million. Other revenues within the segment totaled $10 million, representing a 19% decline year over year.
Viator: The segment’s revenues totaled $156 million, accounting for 39.1% of the total revenues. The figure increased 10% year over year and beat the Zacks Consensus Estimate of $155 million.
TheFork: Revenues for the segment totaled $46.4 million, accounting for 11.7% of the total revenues and increasing 12% year over year. The figure beat the consensus mark of $46.04 million.
TRIP’s Operating Results
TripAdvisor’s cost of sales increased 9% year over year to $27 million for the first quarter. As a percentage of revenues, the figure expanded 50 bps year over year.
Marketing costs were up 6% from the year-ago quarter to $172 million. As a percentage of revenues, the figure expanded 200 bps year over year.
General and administrative costs were down 41% from the year-ago quarter to $17 million. As a percentage of revenues, the figure contracted 300 bps year over year.
Technology costs totaled $22 million, which increased 4% on a year-over-year basis. As a percentage of revenues, the figure expanded 20 bps year over year.
TRIP reported an operating loss of $15 million in the quarter under review, which was in line with the loss of $15 million in the year-ago quarter.
In the reported quarter, the total adjusted EBITDA margin was 11%, which contracted by 80 bps on a year-over-year basis.
Balance Sheet & Cash Flow of TRIP
As of March 31, 2025, cash and cash equivalents were $1.2 billion compared with $1.1 billion as of Dec. 31, 2024.
The long-term debt was $1.16 billion at the end of the first quarter compared with the previous quarter’s $831 million.
TripAdvisor reported $102 million of cash from operations in the reported quarter against negative cash from operations of $2 million in the prior quarter.
The company reported free cash flow of $83 million in the first quarter.
Q2 2025 Guidance
TRIP expects its revenue growth for the second quarter of 2025 to be between 5% and 8%.
For Viator, the company expects mid-teens growth in the number of experiences booked and revenue growth of approximately 9% to 11%.
For Brand Tripadvisor, the company expects a sequential improvement in revenues of flat to a 2% decline year over year.
For TheFork, TRIP expects revenues to grow sequentially in the range of 26% to 28%, which includes approximately six percentage points of currency benefit at current rates.
For the second quarter of 2025, the adjusted EBITDA margin is expected to be approximately in the range of 16-18%.
Zacks Rank and Stocks to Consider
Currently, TRIP carries a Zacks Rank #3 (Hold).
Advance Auto Parts (AAP - Free Report) , Alibaba (BABA - Free Report) and Canada Goose (GOOS - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While AAP sports a Zacks Rank #1 (Strong Buy), BABA and GOOS presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Advance Auto Parts shares have lost 16.3% year to date. AAP is set to report its first-quarter 2025 results on May 22.
Alibaba shares have gained 4.9% year to date. BABA is set to report its fourth-quarter fiscal 2025 results on May 15.
Canada Goose shares have gained 8.2% year to date. GOOS is set to report its fourth-quarter fiscal 2025 results on May 21.