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TripAdvisor Inc (TRIP)
NASDAQ:TRIP
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TripAdvisor
(NASDAQ:TRIP)
71Outperform
Positive Factors
Revenue Growth
TRIP expects 2Q revenue growth to accelerate to +5%-8% Y/Y, a much better guide than expected.
Stock Buyback
Tripadvisor announced it will acquire Liberty Tripadvisor's shares, effectively buying back 27 million of its own shares, which is expected to positively impact the company's stock.
Strategic Value
There is potential for greater strategic control by TRIP Board & Management team, which could unlock shareholder value.
Negative Factors
Legacy Business Pressure
Estimates come down as we scale back Brand TripAdvisor contributions with ongoing pressure in the legacy business.
Metasearch Business Struggles
The metasearch business continued to struggle with revenue down HSDs vs. OTA marketing spend up mid-teens as dollars shift to other channels.
Revenue Decline
Brand Tripadvisor revenues still declined 9% YoY, and EBITDA is down 17%, with these trends expected to continue into Q2.
TripAdvisor (TRIP) vs. S&P 500 (SPY)
Market Cap
$1.67B
Dividend YieldN/A
Average Volume (3M)2.51M
Price to Earnings (P/E)773.3
Beta (1Y)1.32
Revenue Growth1.43%
EPS Growth121.44%
CountryUS
Employees2,860
SectorConsumer Cyclical
Sector Strength60
IndustryTravel Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding118,090,850
10 Day Avg. Volume2,000,029
30 Day Avg. Volume2,511,253
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.19
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.16
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.92Price Target Upside12.65% Upside
Rating ConsensusHold
Number of Analyst Covering14
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 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 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 experiences market.
Measures the total value of bookings made through Viator, indicating the platform's popularity and growth in the travel experiences market.
Data provided by:
Main Street Data
Main Street DataTripAdvisor Financial Statement Overview
Summary
TripAdvisor's financials reflect a strong recovery from pandemic-related disruptions, with marked improvements in profitability and revenue. The balance sheet is robust with reduced leverage and high liquidity, supporting financial stability. While cash flow management remains adequate, attention to sustaining free cash flow growth is necessary. Overall, the company is well-positioned for continued 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
Positive
15.02
Price Trends
13.34
Positive
14.61
Positive
14.67
Positive
Market Momentum
0.29
Negative
68.55
Neutral
92.89
Negative
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 15.02 is above the 20-day moving average (MA) of 12.66, above the 50-day MA of 13.34, and above the 200-day MA of 14.67, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 92.89 is Negative, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $167.99B | 32.30 | -146.32% | 0.69% | 9.47% | 20.70% | |
76 Outperform | $40.10B | 17.57 | 12.91% | 0.45% | 18.12% | 69.44% | |
75 Outperform | $12.35B | 52.84 | 23.09% | ― | 28.51% | 367.34% | |
72 Outperform | $1.63B | 102,695.56 | 96.85% | ― | 9.63% | -113.00% | |
71 Outperform | $1.67B | 773.33 | 5.91% | ― | 1.43% | 121.44% | |
70 Outperform | $20.64B | 18.08 | 119.16% | 0.24% | 5.57% | 61.19% | |
61 Neutral | $6.66B | 11.77 | 3.06% | 3.96% | 2.60% | -21.54% |
* Consumer Cyclical Sector Average
Performance Comparison
TRIP
TripAdvisor
15.02
-3.62
-19.42%
TCOM
Trip.com Group Sponsored ADR
61.45
6.80
12.44%
EXPE
Expedia
156.66
44.23
39.34%
MMYT
Makemytrip
97.92
22.32
29.52%
BKNG
Booking Holdings
5,072.54
1,358.56
36.58%
DESP
Despegar
19.46
7.34
60.56%
TripAdvisor Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 17.71%|
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 Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
TripAdvisor Enhances Financial Flexibility with New Loans
Positive
Mar 20, 2025
On March 20, 2025, TripAdvisor announced the establishment of Tack-On Incremental Term B Loans under an amended credit agreement. This financial move, involving multiple lenders and led by Goldman Sachs, aims to support general corporate purposes, including refinancing existing senior notes and covering associated costs. The initiative is expected to enhance TripAdvisor’s financial flexibility and operational capacity.
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.