Tripadvisor unveils mixed quarter, with 1% revenue growth, and stock sinks

By Claudia Assis

Tripadvisor's sales fell below Wall Street's forecast

Shares of Tripadvisor Inc. fell 11.5% in the extended session Tuesday after the online travel company reported second-quarter revenue that was below Wall Street's expectations, saying that it ran into "anticipated top-line headwinds" in the quarter.

Its below-forecast revenue "reflects ongoing competitive dynamics impacting" its Tripadvisor brand, which also negatively affected results last quarter, Wedbush analyst Scott Devitt said in a note.

Profitability "was a source of strength," he said, reflecting better growth and investments in Tripadvisor's brands Viator, a website where travelers book guided tours and other activities and experiences, and TheFork, an online restaurant-reservation platform.

Tripadvisor (TRIP)earned $24 million, or 17 cents a share, matching its performance in the second quarter of 2023. Adjusted for one-time items, the company earned 39 cents a share.

Revenue rose 1% to $497 million.

Analysts polled by FactSet expected adjusted EPS of 37 cents on sales of $504.8 million.

"Our consolidated performance reflected the strength of combined contributions across the segments, despite some of the anticipated top-line headwinds in the quarter," Chief Financial Officer Mike Noonan said in a statement, without detailing the difficulties.

-Claudia Assis

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08-06-24 2012ET

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