Investing.com - TripAdvisor Inc (NASDAQ:TRIP) shares tumbled in aftermarket trade, after it posted disappointing fourth-quarter earnings results.
TripAdvisor reported Q4 earnings per share (EPS) of $0.16 on $316 million in revenue, much lower than Wall Street estimates of $0.31 EPS on 327.19 million in revenue.
The online travel agency suffered from a dip in advertising and subscription revenue, which ultimately led to a 1% decrease in annual revenue, when compared to a year ago Moreover, TripAdvisors’ hefty investments in 2016 to help grow its instant booking platform and increase mobile conversation weighed on top-line growth and hampered profits.
“The instant booking rollout induced significant revenue headwinds in 2016, muting revenue growth and significantly impacting profitability” the company said in prepared remarks.
TripAdvisor's shares have shed nearly 20% over the past year, however Chief Financial Officer Ernst Teunissen remains optimistic: “we believe we turned a corner in the fourth quarter, as growth rates improved, led by the U.S. In 2017, we are prioritizing revenue growth as well as making the investments necessary to drive monetization, growth and profitability on our platform.” he said in a press release.
TripAdvisor closed at $52.70 but was down more than 5% to $49.99 in aftermarket trade.