TripAdvisor Inc
Q2 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.35%.
Did TRIP Beat Earnings? Q2 2024 Results
TripAdvisor posted a mixed second quarter for 2024, delivering a narrow earnings beat alongside a modest revenue miss as its growth segments gained meaningful ground but its legacy core continued to weigh on top-line results. The company reported non-GAAP diluted EPS of $0.39, edging past the $0.37 consensus by 5.41%, while revenue of $497.00 million fell just short of the $504.83 million estimate, rising only 0.6% year-over-year. The clearest story inside the results was the divergence between segments; Viator contributed $244.00 million in revenue, up 13%, and swung to $10.00 million in adjusted EBITDA from a prior-year loss, while TheFork similarly turned profitable, even as Brand TripAdvisor's revenue slid 10% to $250.00 million. Adjusted EBITDA for the consolidated business reached $97.00 million, a 20% margin. Management pointed to improving execution and product investment across all three segments as the foundation for sustainable long-term revenue and profit growth, signaling confidence despite the near-term top-line pressure.
- Viator experiences revenue growth of 13% driven by gross bookings value growth of approximately 8%
- Selling and marketing cost efficiency improved to 53% of revenue from 55% year-over-year
- All three segments contributed to profitability for the first time
- TheFork achieved positive adjusted EBITDA of $3 million vs. loss of $4 million year-ago
- Brand Tripadvisor branded hotels revenue declined 14% creating top-line headwinds
“Our second quarter consolidated financial results were in-line with our expectations, which reflects ongoing progress on our segment strategies. This was the first quarter on record that each of our three segments contributed to our profitability. Our teams continue to deliver value through product innovation, marketing efficiency, and day-to-day execution, which we expect to drive long-term sustainable growth in revenue and profit as we build on our durable position across travel and experiences.”
TripAdvisor CEO, on the earnings call
Forward Guidance & Outlook
Management expressed confidence that segment strategies are setting the groundwork for an attractive long-term financial profile, with expectations that product innovation, marketing efficiency, and day-to-day execution will drive long-term sustainable growth in revenue and profit. The company anticipates a net cash inflow of $25 million to $35 million from competent authority refunds and federal tax benefits related to the IRS audit settlement within the next twelve months.
TRIP YoY Financials
TRIP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.