NEW YORK - Tripadvisor, Inc. (NASDAQ:TRIP), a leading online travel platform, reported its first-quarter financial results with a notable adjusted earnings per share (EPS) beat.
However, Tripadvisor shares fell more than 30% after the company said its special committee, which was formed to evaluate a proposed take-out, turned down the offer. It will continue to evaluate any proposed alternatives, the company added.
The company also announced a first-quarter adjusted EPS of $0.12, surpassing the analyst consensus of $0.05.
The company's revenue reached $395 million, a 6% increase compared to the same quarter last year, and marginally above the consensus estimate of $394.76 million.
"1Q results were generally in line with expectations, showing stabilization in core and faster growth in Viator," B. Riley analysts said in a note.
The net loss for the quarter stood at $59 million, or a loss of $0.43 per share, which included a substantial income tax expense due to an IRS audit settlement.
Tripadvisor's CEO, Matt Goldberg, expressed satisfaction with the first-quarter results, attributing the modest growth to the diversification of the company's portfolio, particularly in the experiences offerings.
"We believe that our unique position in travel and experiences, coupled with positive signals we are seeing as a result of our segment strategies, will drive continued momentum across Tripadvisor Group," Goldberg stated.
CFO Mike Noonan highlighted the company's balanced approach to growth and investment, which was evident in the first-quarter performance.
"We delivered revenue growth of six percent, or $395 million, and adjusted EBITDA of $47 million, or 12 percent of revenue," said Noonan. He also emphasized the company's operational execution and focus on long-term growth and profitability.
Despite the positive remarks from the company's management, investors responded to the soft sales figures with concern, leading to the double-digit percentage drop in the stock price. The market's reaction underscores the challenges Tripadvisor faces in a competitive travel industry landscape.
As the company navigates through the fiscal year, the focus remains on its strategic initiatives to bolster its position in the travel and experiences sector. However, the first-quarter results have set a cautious tone among investors regarding the company's sales trajectory in the near term.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.