Tripadvisor Stock Shows Guarded Reaction Despite Q4 Beat: Retail Remains On Sidelines

Brand Tripadvisor accounted for roughly half of the total revenue but witnessed a 6% revenue drop.

Tripadvisor, Inc. (TRIP) shares fell during Thursday’s pre-market session despite the online travel company's better-than-expected fiscal year 2024 fourth-quarter earnings and revenue. Investors apparently focused on Tripadvisor brand's revenue decline and the fall in a key profitability metric.

The Needham, Massachusetts-based company reported fourth-quarter adjusted earnings per share (EPS) of $0.30 compared to $0.38 a year ago. According to FinChat, Wall Street expected the firm to report EPS of $0.20.

Quarterly revenue climbed 5% year over year (YoY) to $411 million from $390 million, in line with the guidance for low-to-mid single-digit growth. This compares with an analyst estimate of $400.01 million.

Brand Tripadvisor accounted for roughly half of the total revenue but witnessed a 6% revenue drop. Viator and TheFork, which contributed $186 million and $48 million, respectively, to the top line, grew revenue by 16% and 23%.

Viator is an online marketplace offering tours, activities and excursions while TheFork is an online restaurant booking platform.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $73 million, with the EBITDA margin at 18%. This marked a decline from the $84 million reported for the year-ago quarter.

CEO Matt Goldberg said, "We achieved record revenue, driven by growth in experiences, which is increasingly becoming the strategic and financial center of gravity of the Group, as we build on our leadership position in this large and fast-growing market.

The executive noted that Tripadvisor, Viator, and TheFork each contributed to the group’s profit in 2024.

Looking ahead, Goldberg said the company will continue its strategic progress across segments.

CFO Mike Noonan said, “Our 2025 plan reflects a disciplined approach to investment in our key initiatives and resource alignment, which we believe lays the foundation for long-term growth in revenue and profit.” 

Tripadvisor announced in December an agreement to acquire Liberty TripAdvisor Holdings, Inc. (LTRPA) with the objective of simplifying capital structure, creating strategic flexibility, and retire a large portion of its shares to improve balance sheet health. The deal is expected to close in the second quarter of 2025.

On Stocktwits, retail sentiment toward Tripadvisor stock stayed ‘neutral’ (45/100), and the message volume remained ‘low.’

Ahead of the opening bell, a Stocktwits user said the shares could hit the low 20s in earnings reaction.

In premarket trading, Tripadvisor stock fell 0.79% to $17.56. The stock has tacked on nearly 20% so far this year. 

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