TripAdvisor Shares Drop 4% Despite Q3 Earnings Beat Amid Flat Revenue Growth
TripAdvisor (NASDAQ:TRIP) reported third-quarter results that topped analyst expectations, yet its stagnant revenue growth led to a 4% drop in share price in pre-market today.
The travel platform posted adjusted earnings per share of $0.50, surpassing the forecasted $0.44, while revenue reached $532 million, above the $527.72 million estimate but unchanged year-over-year. Net income stood at $39 million, or $0.27 per share, with adjusted EBITDA totaling $122 million, representing 23% of total revenue.
The company refrained from providing specific guidance for the upcoming quarters, leaving investors uncertain about future growth prospects.
| Symbol | Price | %chg |
|---|---|---|
| SONA.JK | 3830 | -0.52 |
| PANR.JK | 850 | -2.94 |
| 032350.KS | 10800 | -1.11 |
| 039130.KS | 49850 | -3.71 |
TripAdvisor to be Acquired by Apollo, Bloomberg Says
Apollo Global Management is reportedly considering a bid for Tripadvisor (NASDAQ:TRIP), the travel guidance company, according to a Bloomberg report. TripAdvisor has sought advice from financial consultants to navigate the interest from Apollo.
While discussions between Apollo and TripAdvisor are at an initial phase and might not lead to a deal, the news has already impacted TripAdvisor's stock, which saw a slight increase yesterday. Including net debt, TripAdvisor's valuation is roughly estimated at about $3.5 billion, as per the data compiled by Bloomberg.
Tripadvisor Shares Up 35% Since Q2 Earnings Announcement
Tripadvisor, Inc. (NASDAQ:TRIP) shares rose more than 35% since the company’s reported Q2 results at the start of the month. The EPS came in at $0.37, beating the Street estimate of $0.26. Revenue was $417 million, better than the Steet estimate of $389.61 million.
The company guided for Q3 sequential revenue improvement, low mid-single-digits above 2019 levels, while EBITDA margin guidance of low-to mid-20% is below Q3/19 level of 30%, on Viator/TheFork reinvestments, and higher margin Hotel B2B still lagging 2019. July Hotel Auction revenue improved in the back-half of the month to above 2019, while the rest of the business exhibited no weakness.
Analysts at Oppenheimer provided a review of the company following the earnings report, noting that the strong quarter was a result of strong Viator results (160% of 2019 levels) and US/Europe hotel auction reaching 100% of 2019 levels.
According to the analysts, the new segment disclosure provides better detail into Viator/TheFork, allowing investors to perform better SOTP analysis. The new CEO highlighted leveraging the company's data to create a customer-centric approach, ultimately leading to higher engagement, and monetization.
