TripAdvisor (TRIP) Q2 Earnings Beat, Revenues Miss Estimates

Core Insights - TripAdvisor reported second-quarter 2024 non-GAAP earnings of 39 cents per share, a 15% increase year over year, surpassing the Zacks Consensus Estimate by 2.6% [1] - Revenues reached $497 million, a 1% year-over-year increase, but fell short of the Zacks Consensus Estimate of $505.5 million [1] - Growth was primarily driven by the Viator segment, while the Tripadvisor-branded hotels segment showed weakness [1] Quarterly Details - Tripadvisor segment revenues totaled $250 million, accounting for 50.3% of total revenues, down 10% year over year, and below the consensus mark of $264 million [2] - Media and advertising revenues decreased 2% year over year to $41 million [2] - Revenues from experiences and dining were $48 million, a 4% decline year over year [2] - Revenues from branded hotels fell 14% year over year to $150 million [2] - Viator segment revenues reached $244 million, representing 49.1% of total revenues, a 13% increase year over year, exceeding the Zacks Consensus Estimate of $240 million [2] - TheFork segment generated $42 million, an 11% year-over-year increase, but was below the consensus mark of $43.6 million [2] Operating Results - Selling and marketing costs decreased 3% year over year to $263 million, contracting 200 basis points as a percentage of revenues [3] - General and administrative costs rose 19% year over year to $56 million, expanding 100 basis points as a percentage of revenues [3] - Technology and content costs increased 6% year over year to $75 million, rising 100 basis points as a percentage of revenues [3] - Operating margin for the quarter was 7.2%, a contraction of 170 basis points year over year [3] - Total adjusted EBITDA margin was 20%, expanding 180 basis points year over year [3] Balance Sheet & Cash Flow - As of June 30, 2024, cash and cash equivalents were $1.18 billion, slightly up from $1.17 billion as of March 31, 2024 [4] - Long-term debt stood at $841 million, a slight increase from $840 million in the previous quarter [4] - Cash generated from operations was $53 million, down from $139 million in the prior quarter [4] - Free cash flow for the second quarter was $37 million [4]