Why Is TripAdvisor (TRIP) Down 2.8% Since Last Earnings Report?

Core Insights - TripAdvisor reported non-GAAP Q4 2023 earnings of 38 cents per share, exceeding the Zacks Consensus Estimate by 72.7% and significantly up from 7 cents in the prior year [2] - Revenues reached $390 million, a 10% year-over-year increase, surpassing the Zacks Consensus Estimate of $372.9 million, driven by strong performance in the Viator and TheFork segments [2][3] - The company experienced a decline in hotel meta offerings in Europe, which negatively impacted revenues from Tripadvisor-branded hotels [2][3] Revenue Breakdown - Tripadvisor Core segment generated $218 million, accounting for 55.9% of total revenues, with a slight increase of 0.5% year over year [3] - Viator segment revenues totaled $161 million, representing 41.3% of total revenues and a 27% year-over-year increase [3][4] - TheFork segment revenues were $39 million, making up 10% of total revenues, with an 18% year-over-year increase [4] Operating Results - Selling and marketing costs decreased by 7.7% year over year to $179 million, while general and administrative costs fell by 18.9% to $47 million [5] - Technology and content costs increased by 13.4% year over year to $68 million [5] - TripAdvisor reported operating income of $31 million, a significant improvement from an operating loss of $13 million in the prior year [5] Financial Position - As of December 31, 2023, cash and cash equivalents were $1.07 billion, down from $1.12 billion as of September 30, 2023 [6] - Long-term debt remained flat at $839 million [6] - The company reported a free cash outflow of $35 million in the fourth quarter [6] Market Position and Outlook - TripAdvisor holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [7] - The company has a Growth Score of B but lags in Momentum Score with an F, while maintaining a Value Score of B [6][7] - In comparison, Amazon, a peer in the Internet - Commerce industry, reported a 13.9% year-over-year revenue increase and has a Zacks Rank 2 (Buy) [7][8]