TripAdvisor(TRIP) ZACKS·2025-05-08 17:55Core Insights - TripAdvisor (TRIP) reported first-quarter 2025 non-GAAP earnings of 14 cents per share, a 17% increase year over year, exceeding the Zacks Consensus Estimate by 180% [1] - Revenues for the quarter reached $398 million, a 1% year-over-year increase, also beating the Zacks Consensus Estimate by 2.31% [1] Revenue Breakdown - Brand Tripadvisor generated revenues of $219 million, accounting for 55% of total revenues, but saw an 8% decline year over year, surpassing the consensus estimate of $214 million [2] - Media and advertising revenues decreased by 6% year over year to $31 million [2] - Revenues from experiences and dining were $30 million, down 15% year over year [2] - Revenues from branded hotels decreased by 7% year over year to $148 million, with other revenues in this segment totaling $10 million, reflecting a 19% decline [3] - Viator's revenues totaled $156 million, representing 39.1% of total revenues, marking a 10% year-over-year increase and beating the Zacks Consensus Estimate of $155 million [3] - TheFork generated revenues of $46.4 million, accounting for 11.7% of total revenues, with a 12% year-over-year increase, exceeding the consensus mark of $46.04 million [4] Operating Results - TripAdvisor's cost of sales increased by 9% year over year to $27 million, expanding as a percentage of revenues by 50 basis points [5] - Marketing costs rose by 6% year over year to $172 million, with a 200 basis point increase as a percentage of revenues [5] - General and administrative costs decreased by 41% year over year to $17 million, contracting by 300 basis points as a percentage of revenues [5] - Technology costs totaled $22 million, a 4% year-over-year increase, with a 20 basis point expansion as a percentage of revenues [6] - The company reported an operating loss of $15 million, consistent with the loss from the previous year [6] - The total adjusted EBITDA margin was 11%, contracting by 80 basis points year over year [6] Balance Sheet & Cash Flow - As of March 31, 2025, cash and cash equivalents were $1.2 billion, up from $1.1 billion as of December 31, 2024 [7] - Long-term debt increased to $1.16 billion from $831 million in the previous quarter [7] - The company reported $102 million in cash from operations, a recovery from negative cash from operations of $2 million in the prior quarter [8] - Free cash flow for the first quarter was $83 million [8] Q2 2025 Guidance - TripAdvisor expects revenue growth for Q2 2025 to be between 5% and 8% [9] - For Viator, the company anticipates mid-teens growth in the number of experiences booked and revenue growth of approximately 9% to 11% [9] - Brand Tripadvisor expects a sequential improvement in revenues, projecting a flat to a 2% decline year over year [9] - For TheFork, revenues are expected to grow sequentially in the range of 26% to 28%, including approximately six percentage points of currency benefit at current rates [10] - The adjusted EBITDA margin for Q2 2025 is expected to be in the range of 16-18% [10]