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TripAdvisor Inc (TRIP)
NASDAQ:TRIP
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TripAdvisor
(NASDAQ:TRIP)62Neutral
Positive Factors
Earnings
Tripadvisor produced a strong quarter to finish the year, revenue beat by 3% growing 5.4% YoY, a big acceleration from the revenue decline in Q3.
Strategic Moves
Merger with Liberty Tripadvisor removes overhang & reduces share count by 18.6%.
Negative Factors
Financial Performance
Brand Tripadvisor’s transformation from a hotel meta-led business to a business focused on travel planning and guidance remains in its early days and is weighing on revenue and Adj. EBITDA growth in the near term.
Market Challenges
The metasearch business continued to struggle with revenue down HSDs vs. OTA marketing spend up mid-teens as dollars shift to other channels.
TripAdvisor (TRIP) vs. S&P 500 (SPY)
Market Cap
$1.94B
Dividend YieldN/A
Average Volume (3M)2.78M
Price to Earnings (P/E)835.8
Beta (1Y)1.32
Revenue Growth2.63%
EPS Growth-58.77%
CountryUS
Employees2,845
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)0.02
Shares Outstanding127,581,730
10 Day Avg. Volume3,298,799
30 Day Avg. Volume2,777,477
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.10
Price to Cash Flow (P/CF)-168.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.20Price Target Upside31.98% Upside
Rating ConsensusHold
Number of Analyst Covering12
TripAdvisor Business Overview & Revenue Model
Company DescriptionTripAdvisor, Inc. is a leading online travel company that operates across various sectors of the travel industry, providing travelers with a comprehensive platform to plan and book their trips. The company's core offerings include reviews and recommendations for hotels, restaurants, attractions, and travel experiences. TripAdvisor also offers a robust booking platform where users can reserve accommodations, flights, and other travel-related services. With a significant global presence, TripAdvisor leverages its extensive user-generated content to help travelers make informed decisions about their travel plans.
How the Company Makes MoneyTripAdvisor makes money primarily through advertising and booking commissions. Its main revenue streams include cost-per-click advertising, where travel-related businesses pay for clicks generated from TripAdvisor's site to their own websites, and display-based advertising, where brands pay for ad placements on TripAdvisor's platform. Additionally, the company earns commissions from bookings made through its platform, including hotel reservations, experiences, and dining. Partnerships with various travel service providers also contribute to its revenue, as TripAdvisor facilitates and enhances the visibility of their offerings to a broad audience. The company's success is significantly supported by its vast database of user-generated reviews and its ability to drive traffic to its platform.
TripAdvisor Financial Statement Overview
Summary
TripAdvisor's financial performance shows a strong recovery with improved profitability and revenue growth. The balance sheet is solid with low leverage and high liquidity, but cash flow management needs attention due to a decline in free cash flow growth.Income Statement
TripAdvisor has demonstrated strong revenue growth with a notable recovery from 2020 lows, reflected in a revenue increase from $604M in 2020 to $1.835B in 2024. The gross profit margin is consistently high, maintaining a 100% margin in the latest year due to revenue equaling gross profit. EBIT and EBITDA margins have improved significantly year-over-year, indicating enhanced operational efficiency. Net profit margin turned positive, showing profitability improvements, although it remains modest.78
Positive
Balance Sheet
The company maintains a solid balance sheet with a debt-to-equity ratio decreasing from 0.53 in 2019 to 0.06 in 2024, showcasing effective debt management. The equity ratio has remained stable, ensuring financial stability. Return on equity improved significantly, reflecting better utilization of equity to generate profits. High levels of cash and cash equivalents provide liquidity and reduce financial risk.82
Very Positive
Cash Flow
Operating cash flow has been positive, although it declined from 2023 to 2024. Free cash flow also saw a reduction. The operating cash flow to net income ratio is strong, underscoring effective cash generation relative to net income. However, the decline in free cash flow growth rate suggests potential challenges in cash generation moving forward.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.83B | 1.79B | 1.49B | 902.00M | 604.00M | Gross Profit |
| 1.70B | 1.64B | 1.38B | 828.00M | 549.00M | EBIT |
| 92.00M | 126.00M | 101.00M | -131.00M | -285.00M | EBITDA |
| 218.00M | 256.00M | 208.00M | -29.00M | -209.00M | Net Income Common Stockholders |
| 5.00M | 10.00M | 20.00M | -148.00M | -289.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.06B | 1.07B | 1.02B | 723.00M | 418.00M | Total Assets |
| 2.56B | 2.54B | 2.57B | 2.29B | 1.97B | Total Debt |
| 903.00M | 912.00M | 929.00M | 927.00M | 608.00M | Net Debt |
| -161.00M | -155.00M | -92.00M | 204.00M | 190.00M | Total Liabilities |
| 1.62B | 1.67B | 1.71B | 1.50B | 1.08B | Stockholders Equity |
| 943.00M | 871.00M | 861.00M | 789.00M | 886.00M |
| Cash Flow | Free Cash Flow | |||
| 70.00M | 172.00M | 344.00M | 54.00M | -249.00M | Operating Cash Flow |
| 144.00M | 235.00M | 400.00M | 108.00M | -194.00M | Investing Cash Flow |
| -73.00M | -63.00M | -52.00M | -54.00M | -56.00M | Financing Cash Flow |
| -63.00M | -127.00M | -27.00M | 263.00M | 341.00M |
TripAdvisor Technical Analysis
Negative
13.79
Price Trends
15.92
Negative
15.32
Negative
15.79
Negative
Market Momentum
-0.62
Positive
27.34
Positive
7.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIP, the sentiment is Negative. The current price of 13.79 is below the 20-day moving average (MA) of 16.47, below the 50-day MA of 15.92, and below the 200-day MA of 15.79, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 27.34 is Positive, neither overbought nor oversold. The STOCH value of 7.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRIP.
TripAdvisor Risk Analysis
TripAdvisor disclosed 46 risk factors in its most recent earnings report. TripAdvisor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TripAdvisor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $38.35B | 17.10 | 8.12% | ― | 27.28% | 49.14% | |
77 Outperform | $160.74B | 28.37 | -146.32% | 0.71% | 11.11% | 47.03% | |
72 Outperform | $24.32B | 20.86 | 79.25% | ― | 6.64% | 69.85% | |
72 Outperform | $2.19B | 17.59 | 17.86% | ― | 5.61% | 37.61% | |
72 Outperform | $87.56B | 34.10 | 31.48% | ― | 11.95% | -44.02% | |
62 Neutral | $1.94B | 835.76 | 0.53% | ― | 2.63% | -58.77% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
TRIP
TripAdvisor
13.79
-12.87
-48.27%
TCOM
Trip.com Group Ltd. Sponsored ADR
59.36
17.08
40.40%
EXPE
Expedia
188.70
54.67
40.79%
BKNG
Booking Holdings
4,898.40
1,498.30
44.07%
YELP
Yelp
33.64
-4.16
-11.01%
ABNB
Airbnb
141.42
-17.91
-11.24%
TripAdvisor Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -22.09% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
Tripadvisor demonstrated strong growth in its experiences and dining segments, particularly with Viator's significant market advances and TheFork's profitability. However, the decline in Brand Tripadvisor revenue and challenges in the hotel meta business presented notable obstacles. The overall sentiment is balanced, with promising strategic initiatives countered by existing revenue challenges.Highlights
Strong Q4 and FY 2024 Financial Performance
Tripadvisor finished 2024 with consolidated revenue growth of 5% in Q4, reaching $411 million, and 3% for the full year with $1.8 billion. Adjusted EBITDA for the full year was $339 million, highlighting a strong financial position.
Viator Growth and Market Leadership
Viator’s gross bookings value reached $4.2 billion in 2024. Revenue grew 14% for the year, accelerating to 16% in Q4, with direct booking volume growing nearly 30% for the full year. Viator's mobile app was the fastest-growing channel, with booking volume up more than 80%.
TheFork Achieves Profitability
TheFork segment grew revenue by 18% to $181 million and delivered full year profitability for the first time, representing an adjusted EBITDA improvement of $19 million over the last year.
Strategic Focus on Experiences Category
Tripadvisor is focusing on the experiences category, with Viator and TheFork contributing 56% of Group revenue. Experiences revenue is expected to be the largest contributor for the first time in 2025.
Membership Growth and Engagement
Membership grew mid-single digits in 2024, accelerating each quarter. Monthly active members in the U.S. grew twice the global rate, indicating strong engagement improvements.
Lowlights
Brand Tripadvisor Revenue Decline
Brand Tripadvisor revenue declined by 8% in 2024. Branded hotels revenue was $125 million, down 7% in Q4, and experiences and dining revenue declined by 8%.
Q1 2025 Expected Revenue Decline
Consolidated revenue for Q1 2025 is expected to be flat to a low single-digit decline, affected by currency and holiday timing headwinds.
Challenges in Hotel Meta Business
Hotel Meta faced variability, with a decline in branded hotels revenue due to structural challenges, impacting overall Brand Tripadvisor performance.
Negative Free Cash Flow
Q4 operating cash flow was negative $2 million, and free cash flow was negative $25 million, although this was an improvement of $10 million from previous periods.
Company Guidance
In the Tripadvisor Fourth Quarter 2024 Conference Call, the company reported a 5% increase in consolidated revenue to $411 million for Q4, with an adjusted EBITDA of $73 million, representing 18% of revenue. For the full year 2024, revenue reached $1.8 billion, and adjusted EBITDA was $339 million. Notably, Viator and TheFork together contributed $52 million of incremental adjusted EBITDA compared to the prior year. Viator's gross bookings value (GBV) hit nearly $4.2 billion, with a 30% rise in direct booking volume and an 80% surge in mobile app booking volume. TheFork segment saw an 18% revenue growth, marking its first full-year profitability. Looking forward to 2025, Tripadvisor anticipates a 5% to 7% increase in consolidated revenue and an adjusted EBITDA margin of 16% to 18%, focusing on enhancing customer experiences and expanding its market share.TripAdvisor Corporate Events
M&A TransactionsBusiness Operations and Strategy
Tripadvisor Announces Strategic Merger with Liberty Holdings
Positive
Dec 19, 2024
Tripadvisor, Inc. and Liberty TripAdvisor Holdings, Inc. announced they have entered into a merger agreement where Tripadvisor will acquire Liberty TripAdvisor. The transaction simplifies Tripadvisor’s capital structure, retiring a significant portion of its shares and creating strategic flexibility. The merger, valued at approximately $435 million, is expected to close in the second quarter of 2025 and will result in Tripadvisor operating without a controlling stockholder, allowing it to focus on its strategic vision and operational strategies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.