TripAdvisor Q4 Earnings Report: A Breakdown
TripAdvisor recently released its fourth-quarter 2023 earnings report, and the results were mixed. While the company beat expectations in terms of earnings and revenues, there were some concerns about certain segments of the business.
Earnings and Revenues Beat Expectations
TripAdvisor reported non-GAAP fourth-quarter 2023 earnings of 38 cents per share, significantly higher than the Zacks Consensus Estimate of 22 cents per share. Revenues also exceeded expectations, coming in at $390 million compared to the consensus estimate of $372.9 million.
The Viator segment showed strong momentum, driving top-line growth for the company. Additionally, TheFork segment performed well, contributing to the overall revenue increase. However, weakness in hotel meta offerings in Europe was a point of concern for the company.
Segment Performance
TripAdvisor reports revenues under three segments: Tripadvisor Core, Viator, and TheFork.
– Tripadvisor Core: Revenues totaled $218 million, with media and advertising revenues increasing by 6% year over year. Revenues from experiences and dining also saw a 12% increase, while revenues from Tripadvisor-branded hotels decreased due to a decline in European hotel meta offerings.
– Viator: Revenues reached $161 million, up 27% year over year.
– TheFork: Revenues came in at $39 million, increasing by 18% year over year.
Operating Results and Balance Sheet
TripAdvisor saw improvements in its operating results, with operating income of $31 million compared to an operating loss in the year-ago quarter. The company also saw an expansion in adjusted EBITDA margin.
As of December 31, 2023, TripAdvisor had $1.07 billion in cash and cash equivalents, with long-term debt remaining flat compared to the previous quarter. The company used cash in operations in the reported quarter, resulting in free cash outflow.
Outlook and Industry Comparison
TripAdvisor currently holds a Zacks Rank #3 (Hold), with analysts expecting an in-line return from the stock in the next few months. The company is part of the Zacks Internet – Commerce industry, where it faces competition from players like Amazon.
Amazon, another player in the same industry, has seen a 5.3% gain in the past month. The company reported strong revenues and earnings for the quarter ended December 2023, with expectations of continued growth in the current quarter.
Overall, TripAdvisor’s recent earnings report shows a mixed performance, with some areas of strength and areas for improvement. Investors will be watching closely to see how the company addresses these challenges and capitalizes on its strengths in the coming quarters.
