NEW YORK - TripAdvisor Inc. (NASDAQ:TRIP) reported third quarter earnings that surpassed analyst expectations, but flat revenue growth sent shares tumbling 11% in after-hours trading.
The travel review platform posted adjusted earnings per share of $0.50, beating the analyst consensus of $0.44. Revenue for the quarter came in at $532 million, slightly above estimates of $527.72 million but unchanged YoY.
TripAdvisor's net income for the quarter was $39 million, or $0.27 per share. Adjusted EBITDA reached $122 million, representing 23% of revenue.
Chief Executive Officer Matt Goldberg commented on the results, stating, "We are pleased with the Group's third quarter results, which are representative of the diverse categories in which we operate, and the segment strategies we are executing."
Chief Financial Officer Mike Noonan noted that adjusted EBITDA outpaced expectations "due to solid execution from our teams as well as the timing of certain growth initiatives."
Despite the earnings beat, the flat revenue growth appears to have disappointed investors, as reflected in the sharp stock decline following the report. The company did not provide specific guidance for upcoming quarters.
TripAdvisor emphasized its focus on executing segment strategies, including a shift to an engagement-led approach for its core brand and pursuing higher-growth opportunities in its Viator and TheFork businesses.
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