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TripAdvisor (TRIP) Q2 Earnings Beat Mark, Revenues Rise Y/Y

Zacks Equity Research
·4-min read

TripAdvisor TRIP reported adjusted second-quarter 2022 earnings of 37 cents per share, which surpassed the Zacks Consensus Estimate by 37%. TRIP reported a loss per share of 9 cents and 7 cents in the prior quarter and the year-ago quarter, respectively.

Revenues of $417 million surged 77% year over year and 59%, sequentially. The same also surpassed the consensus mark by 6.1%.

Top-line growth was driven by increased consumer travel demand owing to the continued relaxation of government restrictions.

For the second quarter, average monthly unique users on Tripadvisor-branded sites increased 19% from the year-ago quarter’s level.

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Strong performance across experiences offerings, recovery across Tripadvisor Core, Viator and TheFork segments, and increased bookings to European destinations remained tailwinds.

However, inflationary pressure and the coronavirus-pandemic related headwinds affected the quarterly performance.

TripAdvisor, Inc. Price, Consensus and EPS Surprise

TripAdvisor, Inc. Price, Consensus and EPS Surprise
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: The segment generated revenues of $274 million (accounting for 66% of revenues), up 49% year over year. Revenues from Tripadvisor-branded hotels, including hotel auction and B2B subscription offerings, increased 44% from the prior-year quarter’s level to $188 million. Tripadvisor-branded display and platform revenues jumped 42% year over year to $37 million. Revenues from Tripadvisor experiences and dining (includes intersegment eliminations of $25 million) were $35 million, skyrocketing 119% year over year. Other revenues consisting of rentals, flights, cars and cruise revenues were up 27% from the prior-year quarter’s level to $14 million.

Viator: The segment generated revenues of $136 million (33% of total revenues). The figure skyrocketed 240% from the year-ago quarter’s level, driven by seasonality, pent-up travel demand and expansion of the experiences travel category.

TheFork: Revenues from this segment came in at $32 million (8% of revenues), increasing 78% year over year. The uptick was attributed to easing of restrictions and the return of dining to the pre-pandemic levels.

Operating Results

TripAdvisor’s selling and marketing costs increased 76% year over year to $217 million, induced by higher spending on search engine marketing and other online traffic acquisitions across all segments and businesses to meet rising consumer travel demand amid the travel-sector recovery period.

General and administrative costs were down 39% from the year-ago quarter’s level to $28 million.

Technology and content costs of $53 million decreased 2% on a year-over-year basis.

TRIP reported an operating income of $63 million for the second quarter against a $35-million loss in the first quarter.

In the reported quarter, total adjusted EBITDA was $109 million compared with $25 million in the same quarter last year.

Balance Sheet & Cash Flow

As of Jun 30, 2022, cash and cash equivalents were $1.05 billion, up from $781 million reported on Mar 31, 2022.

Long-term debt as of Jun 30, 2022, was $835 million. TRIP’s long-term debt was $834 million as of Mar 31, 2022.

Cash provided by operating activities was $295 million for the reported quarter compared with $86 million in the prior quarter.

Additionally, free cash flow was $282 million in the second quarter.

Zacks Rank & Stocks to Consider

TripAdvisor currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the retail-wholesale sector are Dollar General DG, Costco Wholesale COST and Dollar Tree DLTR, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dollar General has gained 6.4% on a year-to-date basis. The long-term earnings growth rate for the DG stock is currently projected at 12.2%.

Costco Wholesale has lost 5.2% on a year-to-date basis. The long-term earnings growth rate for the COST stock is currently projected at 9.2%.

Dollar Tree has returned 16.6% on a year-to-date basis. The long-term earnings growth rate for the DLTR stock is currently projected at 15.5%.


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