Yahoo Finance TripAdvisor (TRIP) Q1 Earnings & Revenues Beat, Rise Y/Y
TripAdvisor TRIP 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, Ulta Beauty ULTA and Rush Enterprises RUSHA. 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%.
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