Tripadvisor Inc Shares Plummet After Revenue Misses Estimates

Tripadvisor released its latest earnings report after closing bell tonight, posting adjusted earnings of 53 cents per share or non-GAAP net income of $78 million on $421 million in revenue. Analysts had been expecting earnings of 52 cents per share and $437 million in revenue. In last year’s third quarter, the online booking platform reported $415 million in revenue and non-GAAP earnings of 53 cents per share or $78 million.


Tripadvisor’s hotel revenue dips

Hotel revenue declined 6% year over year to $320 million, while non-hotel revenue surged 35% to $101 million. GAAP net income declined 26% to $55 million from last year’s $74 million, while adjusted EBITDA fell 12% to $114 million from $130 million last year. GAAP earnings tumbled 27% to 37 cents per share from last year’s 51 cents per share.

North America revenue made up 56% of total revenue, while Europe, the Middle East and Africa made up 32%. The Asia Pacific region accounted for 9% of revenue, while Latin America contributed 3%.

“Revenue growth rates improved throughout the third quarter after withstanding some significant headwinds during the first half of this year,” Tripadvisor Chief Financial Officer Ernst Teunissen said in a statement. “This improvement was evident in the U.S, where Click-based and transaction revenue per hotel shopper growth improved throughout the quarter and was positive towards the end of the quarter. We continue to invest for long-term growth.”

Free cash flow plunged 272% to -$108 million from the -$29 million in the third quarter of last year. The company said it used $87 million in cash flow for operations during the quarter.

Tripadvisor’s engagement grows

Tripadvisor said the number of average monthly unique visitors jumped 11% year over year to 390 million, while user reviews and opinions increased by almost 50%, reaching 435 million as of the end of September. The reviews and opinions cover about 1.05 million hotels and accommodations, 830,000 vacation rentals, 4.2 million restaurants and 730,000 attractions and experiences.

The company’s long-term debt stood at $20 million as of the end of September, while short-term debt was at $76 million.

Shares of Tripadvisor tanked in after-hours trades, falling by as much as 12.17% to $55.42 after tonight’s earnings release.