TripAdvisor TRIP reported third-quarter 2024 non-GAAP earnings of 50 cents per share, which declined 4% from the prior-year quarter. The figure beat the Zacks Consensus Estimate by 13.64%.
Revenues of $532 million remained flat year over year. The figure beat the Zacks Consensus Estimate of $526 million.
The top line was affected by headwinds in TRIP’S legacy hotel meta offering which was partially offset by growth in the Viator and The Fork segment.
TRIP’s experience category’s strong performance due to secular tailwinds, lower online presence and increased popularity of experiences contributed to the company’s top line. However, travel planning and guidance proved to be a headwind for the top line for its labor-intensive and time-consuming nature.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote
Quarterly Details of TRIP
Brand Tripadvisor: Revenues summed $255 million (accounting for 47.9% of the total revenues) for the segment, down 12% year over year. The figure beat the consensus mark of $254 million. Media and advertising revenues increased 5% year over year to $40 million, driven by the growth in off-platform revenues, Wanderlab studio’s offering and programmatic advertising, partially offset by the decrease in direct advertising revenues.
Revenues from experiences and dining were $51 million, decreasing 7% year over year. The metric was impacted by the growing momentum of the self-service sales model in the B2B segment and a decrease in experience revenues. Revenues from branded hotels decreased 17% year over year to $151 million due to softness in pricing in hotel meta. Other revenues within the segment were $13 million, which declined 19% year over year.
Viator: The segment’s revenues totaled $270 million (accounting for 50.7% of the total revenues). The figure increased 10% year over year and lagged the Zacks Consensus Estimate of $271 million.
TheFork: Revenues for the segment was $49 million (accounting for 9.2% of the total revenues), increasing 17% year over year. The figure beat the consensus mark of $46.41 million.
TRIP’s Operating Results
TripAdvisor’s selling and marketing costs remained flat year over year to $271 million. As a percentage of revenues, the figure remained flat year over year as well.
General and administrative costs were up 4% from the year-ago quarter to $51 million. As a percentage of revenues, the figure expanded 100 bps year over year.
Technology and content costs of $73 million increased 11% on a year-over-year basis. As a percentage of revenues, the figure rose 200 bps year over year.
TRIP reported an operating margin of 13.16% in the quarter under review, which expanded 116 bps year over year.
In the reported quarter, the total adjusted EBITDA margin was 22.93%, which contracted 90 bps on a year-over-year basis.
Balance Sheet & Cash Flow of TRIP
As of Sept. 30, 2024, cash and cash equivalents were $1.11 billion compared with $1.18 billion as of June 30, 2024.
The long-term debt was $832 million at the end of the third quarter compared with the previous quarter’s $841 million.
Tripadvisor reported $44 million of negative cash from operations in the reported quarter against $52 million of cash generated in the prior quarter.
The negative free cash flow was $64 million in the third quarter.
TRIP’s Zacks Rank & Other Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader retail-wholesale sector are Alibaba BABA, Boot Barn BOOT and Dutch Bros BROS. All three stocks sport a Zacks Rank #1 (Strong Buy) each, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BABA’s shares have gained 24.4% in the year-to-date period. The long-term earnings growth rate for BABA is projected at 10.44%.
BOOT’s shares have gained 65.6% in the year-to-date period. The long-term earnings growth rate for BOOT is expected to be 12.99%.
BROS’ shares have gained 29.5% in the year-to-date period. The long-term earnings growth rate for BROS is anticipated to be 30%.
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