TripAdvisor (NASDAQ:TRIP) shares gained 4.2% premarket following the announcement of its fourth-quarter earnings, which surpassed analyst expectations. The travel platform reported adjusted earnings per share (EPS) of $0.38, significantly higher than the $0.22 consensus estimate. Revenue for the quarter was also above forecasts, coming in at $390 million against analysts' predictions of $375.47 million.
The company's fourth-quarter performance reflects a 10% increase in revenue compared to the same period last year, showcasing a robust recovery trajectory. TripAdvisor's full-year revenue reached a record $1.788 billion, marking a 20% growth YoY. The adjusted EBITDA for the quarter stood at $84 million, or 22% of revenue, while the full-year adjusted EBITDA was $334 million, representing 19% of revenue.
TripAdvisor's CEO Matt Goldberg expressed satisfaction with the fiscal 2023 results, highlighting the achievement of an all-time high revenue for the Tripadvisor Group and the diversification of the company's portfolio. Experiences now account for over 40% of the company's revenue, indicating a strategic shift and growth in this segment.
Investors responded positively to the earnings release, with the stock price moving up by 4.2%. The earnings and revenue beat is the primary driver behind the stock's rise, signaling investor confidence in the company's growth and operational efficiency.
In his statement, CEO Matt Goldberg said, "We are pleased with our fiscal 2023 results. On a consolidated basis, our $1.8 billion revenue was an all-time high for Tripadvisor Group, reflecting annual growth of 20%." He also noted the company's success in diversifying its revenue streams and achieving significant growth in its experiences segment.
The company's financials indicate a solid end to the fiscal year, with a net income of $32 million, or $0.22 diluted EPS, for the fourth quarter, and a net income of $10 million, or $0.08 diluted EPS, for the full year. The adjusted figures were even more impressive, with a non-GAAP net income of $55 million, or $0.38 diluted EPS, for the quarter, and $186 million, or $1.29 diluted EPS, for the year.
TripAdvisor's strong quarterly performance and optimistic outlook from its CEO provide a positive signal to the market as the company continues to navigate the post-pandemic travel landscape.
Reacting to the report, analysts at Bernstein maintained an Outperform rating and $28 price target on the stock. They said the results are "likely a sideshow
with news that Liberty Tripadvisor, Tripadvisor’s controlling shareholder, authorized talks about a possible transaction where both companies would be acquired concurrently for cash."
Nevertheless, the firm added that the "results itself were probably one of the best beats Tripadvisor has printed as a public company."