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TripAdvisor (TRIP - Free Report) reported non-GAAP first-quarter 2023 earnings of 5 cents per share, beating the Zacks Consensus Estimate by 66.7%. The bottom line compares favorably with the year-ago quarter’s loss of 9 cents per share.
Revenues of $371 million surged 42% year over year and surpassed the Zacks Consensus Estimate of $357.75 million. Top-line growth was driven by growing demand for travel industry-related services. Strong momentum across Tripadvisor Core and Viator contributed well to the top line.
Further, a 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 reports revenues under three segments: Tripadvisor Core, Viator and TheFork.
Tripadvisor Core: Revenues summed $244 million (accounting for 66% of revenues), up 28% year over year. Revenues from Tripadvisor-branded hotels increased 24% from the prior-year quarter’s level to $168 million. Tripadvisor-branded display and platform revenues jumped 15% year over year to $30 million.
Revenues from Tripadvisor experiences and dining were $33 million, increasing 65% year over year. Other revenues consisting of rentals, flights, cars and cruise revenues were $13 million, up 30% year over year.
Viator: Revenues totaled $115 million (31% of the top line). The figure skyrocketed 105% from the year-ago quarter’s level.
TheFork: Revenues came in at $35 million (9% of revenues), increasing 35% year over year.
Operating Results
TripAdvisor’s selling and marketing costs increased 55.3% year over year to $219 million.
General and administrative costs were up 20% from the year-ago quarter’s level to $48 million. Technology and content costs of $68 million increased 25.9% on a year-over-year basis.
TRIP reported an operating loss of $14 million in the first quarter compared with a $20 million loss in the prior-year quarter.
In the reported quarter, total adjusted EBITDA margin was 9%, down 100 basis points on a year-over-year basis.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash and cash equivalents were $1.13 billion, up from $1.02 billion as of Dec 31, 2022.
Long-term debt stood at $837 million at the end of the first quarter compared with $836 million at the end of the previous quarter.
Cash generated from operations was $135 million in the reported quarter compared with $40 million of cash used in operations in the prior quarter.
Additionally, free cash flow was $119 million in the first quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #3 (Hold).
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TripAdvisor (TRIP) Q1 Earnings & Revenues Beat, Rise Y/Y
TripAdvisor (TRIP - Free Report) reported non-GAAP first-quarter 2023 earnings of 5 cents per share, beating the Zacks Consensus Estimate by 66.7%. The bottom line compares favorably with the year-ago quarter’s loss of 9 cents per share.
Revenues of $371 million surged 42% year over year and surpassed the Zacks Consensus Estimate of $357.75 million. Top-line growth was driven by growing demand for travel industry-related services. Strong momentum across Tripadvisor Core and Viator contributed well to the top line.
Further, a 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 $244 million (accounting for 66% of revenues), up 28% year over year. Revenues from Tripadvisor-branded hotels increased 24% from the prior-year quarter’s level to $168 million. Tripadvisor-branded display and platform revenues jumped 15% year over year to $30 million.
Revenues from Tripadvisor experiences and dining were $33 million, increasing 65% year over year. Other revenues consisting of rentals, flights, cars and cruise revenues were $13 million, up 30% year over year.
Viator: Revenues totaled $115 million (31% of the top line). The figure skyrocketed 105% from the year-ago quarter’s level.
TheFork: Revenues came in at $35 million (9% of revenues), increasing 35% year over year.
Operating Results
TripAdvisor’s selling and marketing costs increased 55.3% year over year to $219 million.
General and administrative costs were up 20% from the year-ago quarter’s level to $48 million. Technology and content costs of $68 million increased 25.9% on a year-over-year basis.
TRIP reported an operating loss of $14 million in the first quarter compared with a $20 million loss in the prior-year quarter.
In the reported quarter, total adjusted EBITDA margin was 9%, down 100 basis points on a year-over-year basis.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash and cash equivalents were $1.13 billion, up from $1.02 billion as of Dec 31, 2022.
Long-term debt stood at $837 million at the end of the first quarter compared with $836 million at the end of the previous quarter.
Cash generated from operations was $135 million in the reported quarter compared with $40 million of cash used in operations in the prior quarter.
Additionally, free cash flow was $119 million in the first quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are The Kroger Co. (KR - Free Report) , Ulta Beauty (ULTA - Free Report) and Rush Enterprises (RUSHA - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kroger has gained 9.2% on a year-to-date basis. The long-term earnings growth rate for KR is currently projected at 5.99%.
Ulta Beauty has gained 9.8% on a year-to-date basis. The long-term earnings growth rate for ULTA is currently projected at 12.26%.
Rush Enterprises has lost 3.1% on a year-to-date basis. The long-term earnings growth rate for RUSHA is currently projected at 15%.