Yahoo Finance TripAdvisor (TRIP) Q4 Earnings & Revenues Beat, Rise Y/Y
TripAdvisor TRIP reported non-GAAP fourth-quarter 2022 earnings of 16 cents per share, beating the Zacks Consensus Estimate of 5 cents. The bottom line compares favorably with the year-ago quarter’s loss of 1 cent per share.
Revenues of $354 million rose 47% year over year and surpassed the Zacks Consensus Estimate of $344 million. Top-line growth was driven by rising demand for travel industry-related services. Strong momentum across Tripadvisor Core and Viator contributed well to top-line growth.
The well-performing TheFork segment benefited the company.
However, adverse foreign currency fluctuations and macroeconomic headwinds affected the quarterly performance.
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.
Tripadvisor Core: Revenues summed $217 million (accounting for 61.3% of revenues), up 34% year over year. Revenues from Tripadvisor-branded hotels, including hotel auction and B2B subscription offerings, increased 36% from the prior-year quarter’s level to $140 million. Tripadvisor-branded display and platform revenues jumped 14% year over year to $33 million.
Revenues from Tripadvisor experiences and dining were $34 million, increased 70% year over year. Other revenues, consisting of rentals, flights, cars and cruise revenues, remained flat with the prior-year quarter’s figure of $10 million.
Viator: Revenues totaled $127 million (35.9% of the top line). The figure skyrocketed 115% from the year-ago quarter.
TheFork: Revenues were $33 million (9.3% of revenues), increasing 10% year over year.
Operating Results
TripAdvisor’s selling and marketing costs increased 54% year over year to $194 million.
General and administrative costs were up 26.1% from the year-ago quarter’s level to $58 million. Technology and content costs of $60 million increased 17.6% on a year-over-year basis.
TRIP reported an operating loss of $13 million in the fourth quarter compared with the $28-million loss reported in the prior-year quarter.
In the reported quarter, the total adjusted EBITDA margin was 12%, flat on a year-over-year basis.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash and cash equivalents were $1.02 billion, down from $1.07 billion as of Sep 30, 2022.
Long-term debt of $836 million remained flat with the previous quarter’s figure.
Cash used in operations was $40 million against $60 million of cash generated from operations in the prior quarter.
Additionally, free cash flow was an outflow of $55 million in the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are Agilent Technologies A, Arista Networks ANET and Garmin GRMN, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent has gained 8.4% in the past year. A’s long-term earnings growth rate is projected at 10%.
Arista Networks has gained 6.1% in the past year. The long-term earnings growth rate for ANET is projected at 17.5%.
Garmin has lost 24.6% in the past year. The long-term earnings growth rate for GRMN is projected at 5.6%.
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