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Investing.com -- TripAdvisor, Inc. (NASDAQ:TRIP) reported third-quarter earnings on Thursday that exceeded analyst expectations, with adjusted earnings per share of $0.65, beating the consensus estimate of $0.56 by $0.09.
Revenue for the quarter came in at $553 million, slightly below the analyst estimate of $562.92 million but up 4% YoY. The company’s shares rose 1.6% following the announcement.
The travel platform announced a strategic realignment of its operating model to support an experiences-led growth strategy, expecting to achieve at least $85 million in annualized gross cost savings by 2027.
This reset aims to extend TripAdvisor’s leadership position in the experiences segment, which now represents nearly 60% of the company’s revenue.
"Our performance in the third quarter reflects the progress we’ve made in our marketplace businesses, particularly our continued success building on our scale position in the experiences category," said Chief Executive Officer Matt Goldberg.
"The shift in our operating model we are announcing today positions Tripadvisor Group as an experiences-led and AI-enabled company."
The company’s Viator segment, which focuses on experiences, showed strong performance with revenue increasing 9% YoY to $294 million and adjusted EBITDA surging 63% to $50 million. Meanwhile, the Brand Tripadvisor segment saw an 8% decline in revenue to $235 million.
Total adjusted EBITDA for the quarter was $123 million, representing 22.2% of revenue, essentially flat compared to the same period last year. The company ended the quarter with approximately $1.2 billion in cash and cash equivalents, an increase of $154 million from December 31, 2024.
As part of its strategic shift, TripAdvisor plans to unify Viator and Tripadvisor experiences under one team and roadmap, while leveraging its data and content for AI-enabled opportunities.
The company will also narrow its focus at Brand Tripadvisor to prioritize experiences and data strategies while simplifying its portfolio of legacy offerings.
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