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Tripadvisor (TRIP)
:TRIP
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TripAdvisor
(NASDAQ:TRIP)
Rating:68Neutral
Price Target:
$19.00
▲(6.80%Upside)
Positive Factors
Financial Performance
Revenue and adjusted EBITDA for 1Q25 exceeded estimates, indicating a better-than-anticipated financial performance.
Growth Opportunities
Opportunities exist to drive growth through AI trip planning, expanding memberships, and improving on-platform bookings.
Strategic Interest
Activist Starboard Value's recent purchase of a 9% stake in Tripadvisor could help unlock more value for Viator.
Negative Factors
Competition
Tripadvisor's core hotel price comparison business is facing challenges from competitors like Google and OTAs.
Market Pressure
Intensifying competition from companies like Airbnb and Booking.com could pressure Viator's take-rates, margins, and market share.
Profit Margins
Viator and TheFork have lower margins compared to the core business, negatively impacting overall consolidated EBITDA.
TripAdvisor (TRIP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.33B
Dividend YieldN/A
Average Volume (3M)4.75M
Price to Earnings (P/E)48.8
Beta (1Y)1.33
Revenue Growth1.43%
EPS Growth121.44%
CountryUS
Employees2,770
SectorConsumer Cyclical
Sector Strength68
IndustryTravel Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding118,092,100
10 Day Avg. Volume3,839,857
30 Day Avg. Volume4,745,170
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)3.99
Price to Sales (P/S)0.00
P/FCF Ratio26.54
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit1.48
Enterprise Value/Ebitda2.46
Forecast
1Y Price Target
$16.02Price Target Upside-9.95% Downside
Rating ConsensusHold
Number of Analyst Covering13
TripAdvisor Business Overview & Revenue Model
Company DescriptionTripAdvisor, Inc. operates as an online travel company. It operates in two segments, Hotels, Media & Platform; and Experiences & Dining. The company operates TripAdvisor-branded websites, including tripadvisor.com in the United States; and localized versions of the website in 40 markets and 20 languages. It also manages and operates other travel media brands that provide users the comprehensive travel-planning and trip-taking resources in the travel industry, such as bokun.io, cruisecritic.com, flipkey.com, thefork.com, helloreco.com, holidaylettings.co.uk, holidaywatchdog.com, housetrip.com, jetsetter.com, niumba.com, seatguru.com, singleplatform.com, vacationhomerentals.com, and viator.com. In addition, the company provides information and services for consumers to research and book restaurants reservation in travel destinations; and vacation and short-term rental properties, including full home, condominiums, villas, beach properties, cabins, and cottages. As of December 31, 2020, it featured 1 billion reviews and opinions on 1 billion hotels and other accommodations, restaurants, experiences, airlines, and cruises. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.
How the Company Makes MoneyTripAdvisor generates revenue primarily through advertising and subscription-based models. The company's key revenue streams include hotel and restaurant advertising, which involves charging hotels, travel agencies, and restaurants for exposure on its platform. Additionally, TripAdvisor earns money from commission fees on bookings made through its platform, affiliate marketing partnerships, and offering premium subscription services like TripAdvisor Plus. The company also benefits from strategic partnerships with other travel companies, enhancing its service offerings and expanding its user base.
TripAdvisor Key Performance Indicators (KPIs)
Any
Viator Gross Booking Value
Measures the total value of bookings made through Viator, indicating the platform's popularity and growth in the travel and experiences market.
Measures the total value of bookings made through Viator, indicating the platform's popularity and growth in the travel and experiences market.
Data provided by:
Main Street Data
Main Street DataTripAdvisor Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 39.42%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive outcomes, including the completion of the merger with Liberty TripAdvisor Holdings, growth in the Viator and TheFork segments, and the integration of AI technologies. However, these were balanced by declines in Brand Tripadvisor revenue and challenges in media and advertising, as well as risks associated with macroeconomic uncertainty.Q1-2025 Updates
Positive Updates
Merger with Liberty TripAdvisor Holdings
Tripadvisor closed its merger transaction with Liberty TripAdvisor Holdings, effectively purchasing all shares held by LTRIP and no longer having a controlling shareholder.
Positive Financial Performance
Consolidated revenue was $398 million, representing 1% growth, or approximately 3% growth in constant currency. Adjusted EBITDA was $44 million or 11% of revenue, exceeding expectations.
Viator Segment Growth
Booked experiences grew 15% and revenue grew 10%, or approximately 12% in constant currency to $156 million. The adjusted EBITDA loss of $18 million represented an 8 point improvement in margin.
TheFork Revenue Growth
Revenue grew 12% or 16% in constant currency to $46 million. Q1 revenue growth from software subscriptions exceeded 90%.
AI Integration and Strategic Partnerships
Tripadvisor established new strategic partnerships with Amazon Alexa and Microsoft Azure, and is integrating AI to enhance customer service, engineering, content moderation, and business analytics.
Negative Updates
Brand Tripadvisor Revenue Decline
Brand Tripadvisor revenue was $219 million, a decline of 8% with Branded Hotels revenue declining by 7%.
Challenges in Media and Advertising
Media and Advertising revenue declined 6% to $31 million due to overall traffic volume dynamics.
Experiences and Dining Revenue Decline
Experiences and dining revenue was $30 million, a decline of 15% due to product transitions and headwinds in B2B restaurant revenue.
Potential Impact from Macroeconomic Uncertainty
Tripadvisor acknowledged the potential for negative impacts on business due to macroeconomic uncertainty and noted early signs of pressure in average booking value and cancellation rates.
Company Guidance
During Tripadvisor's first quarter 2025 conference call, several key metrics and strategic initiatives were highlighted. The company reported consolidated revenue of $398 million, marking a 1% growth or approximately 3% growth in constant currency. The Viator segment saw a 15% increase in booked experiences and a 10% revenue growth, which translates to 12% in constant currency, reaching $156 million. The adjusted EBITDA loss for Viator improved by 8 percentage points, indicating a positive shift in margins. TheFork, Tripadvisor's European dining offering, experienced a 12% revenue increase or 16% in constant currency, totaling $46 million. Brand Tripadvisor's revenue was $219 million, although it faced an 8% decline, but adjusted EBITDA was $65 million, or 30% of revenue, driven by favorable pricing in Hotel Meta. Overall, Tripadvisor's strategic focus on leveraging AI, optimizing its marketing channels, and enhancing customer engagement across its platforms are designed to drive long-term growth, margin improvements, and shareholder returns.TripAdvisor Financial Statement Overview
Summary
TripAdvisor demonstrates strong financial performance with robust revenue growth and improved profitability. However, high leverage levels and the need for better cash flow generation are areas of concern.Income Statement
TripAdvisor shows strong income statement performance with a consistent revenue growth trajectory from $604M in 2020 to $1.838B in TTM. The gross profit margin is robust at 83.3% for TTM, indicating efficient cost management. Net profit margin has notably improved to 5.8% in TTM from negative in prior years, reflecting a turnaround in profitability. EBITDA margin of 10.4% in TTM suggests decent operating efficiency. However, EBIT margin at 6.1% points to room for operational improvements.82
Very Positive
Balance Sheet
TripAdvisor's balance sheet reflects moderate stability with a debt-to-equity ratio of 1.97 in TTM, indicating a high leverage level though slightly reduced from prior years. The equity ratio stands at 23.3%, denoting a solid equity base. Return on equity improved to 16.6% in TTM, showcasing enhanced shareholder returns. However, the high debt levels could pose potential risks if not managed carefully.76
Positive
Cash Flow
The cash flow statement shows a positive trajectory with free cash flow growth, reaching $81M in TTM. The operating cash flow to net income ratio of 1.0 in TTM highlights adequate cash generation relative to earnings. Free cash flow to net income ratio at 0.76 indicates healthy cash flow management. Despite these strengths, reduced free cash flow compared to previous years suggests areas for improvement in cash generation.70
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 |
| EBITDA | 218.00M | 256.00M | 208.00M | -29.00M | -209.00M |
| Net Income | 5.00M | 10.00M | 20.00M | -148.00M | -289.00M |
Balance Sheet | |||||
| Total Assets | 2.56B | 2.54B | 2.57B | 2.29B | 1.97B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.07B | 1.02B | 723.00M | 418.00M |
| Total Debt | 903.00M | 912.00M | 929.00M | 927.00M | 608.00M |
| 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
Positive
17.79
Price Trends
15.01
Positive
14.17
Positive
14.74
Positive
Market Momentum
1.01
Negative
66.81
Neutral
28.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIP, the sentiment is Positive. The current price of 17.79 is above the 20-day moving average (MA) of 16.18, above the 50-day MA of 15.01, and above the 200-day MA of 14.74, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 66.81 is Neutral, neither overbought nor oversold. The STOCH value of 28.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRIP.
TripAdvisor Risk Analysis
TripAdvisor disclosed 50 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $185.57B | 35.48 | -146.32% | 0.79% | 9.47% | 20.70% | |
74 Outperform | $24.08B | 22.32 | 119.16% | 0.42% | 5.57% | 61.19% | |
73 Outperform | $41.82B | 18.59 | 12.49% | 0.44% | 16.23% | 56.05% | |
72 Outperform | $1.63B | 102,695.56 | 96.85% | ― | 9.63% | -113.00% | |
69 Neutral | $9.14B | 115.76 | 22.38% | ― | 18.13% | -55.21% | |
68 Neutral | $2.33B | 48.79 | 5.91% | ― | 1.43% | 121.44% | |
61 Neutral | €5.84B | 12.25 | -11.12% | 4.17% | 3.79% | -34.20% |
* Consumer Cyclical Sector Average
Performance Comparison
TRIP
TripAdvisor
17.79
0.36
2.07%
TCOM
Trip.com Group Ltd. Sponsored ADR
63.30
18.22
40.42%
EXPE
Expedia
189.44
61.52
48.09%
MMYT
Makemytrip
100.40
9.53
10.49%
BKNG
Booking Holdings
5,775.53
1,999.11
52.94%
DESP
Despegar
19.50
7.29
59.71%
TripAdvisor Corporate Events
Executive/Board ChangesShareholder Meetings
TripAdvisor Elects Directors at Annual Meeting
Neutral
Jun 20, 2025
On June 18, 2025, TripAdvisor, Inc. held its annual stockholders meeting where eight directors were elected to the board, including Matt Goldberg and M. Greg O’Hara, with significant support. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating continued confidence in their financial oversight.
The most recent analyst rating on (TRIP) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on TripAdvisor stock, see the TRIP Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.