Trip

TripAdvisor Inc (NASDAQ:TRIP) announced financial results for the third quarter ended September 30, 2016.

“In the third quarter, content and community grew quickly off of massive bases and we continued improving our products and our platform,” said Steve Kaufer, President and Chief Executive Officer of TripAdvisor. “We are focused on building for the long-term, delivering the best end-to-end user experience in travel and creating more value for partners in our marketplace.”

Chief Financial Officer Ernst Teunissen added, “Revenue growth rates improved throughout the third quarter after withstanding some significant headwinds during the first half of this year. This improvement was evident in the U.S, where Click-based and transaction revenue per hotel shopper growth improved throughout the quarter and was positive towards the end of the quarter. We continue to invest for long-term growth.”

Third Quarter 2016 Summary

  • Revenue was $421 million, an increase of 1% year-over-year (an increase of approximately 3% on a constant currency basis).
  • GAAP Net Income was $55 million, a decrease of 26% year-over-year, or $0.37 per diluted share.
  • Adjusted EBITDA was $114 million, a decrease of 12% year-over-year (a decrease of approximately 9% on a constant currency basis).
  • Non-GAAP net income was $78 million, or $0.53 per diluted share.
  • Cash flow used in operations was $87 million and Free cash flow was negative $108 million.
  • Average monthly unique visitors reached 390 million*, up 11% year-over-year.
  • User reviews and opinions grew nearly 50% year-over-year and reached 435 million at September 30, 2016, covering approximately 1,050,000 hotels and accommodations, 830,000 vacation rentals, 4.2 million restaurants and 730,000 attractions and experiences.

Third Quarter 2016 Other Financial Highlights

Revenue for the third quarter of 2016 was $421 million, an increase of $6 million, or 1% year-over-year (an increase of approximately 3% on a constant currency basis).

Cash and cash equivalents, short and long term marketable securities were $756 million as of September 30, 2016, an increase of $58 million from December 31, 2015.

Long-term debt was $20 million as of September 30, 2016, which reflects net repayments of $180 million since December 31, 2015 against our 2015 credit facility outstanding borrowings.

Short-term debt was $76 million as of September 30, 2016, an increase of $75 million from December 31, 2015, as the Company entered into a new revolving credit facility (“2016 credit facility”) and subsequently borrowed $73 million during the three months ended September 30, 2016.

Cash flow provided by operating activities was negative $87 million for the third quarter of 2016, a decrease of $97 million from the third quarter of 2015, driven primarily by the seasonality and timing of customer receipts, income tax payments, vendor payments and deferred merchant payables.

Employees – TripAdvisor had 3,400 employees as of September 30, 2016, compared to 3,350 at June 30, 2016 and 3,000 employees at September 30, 2015. (Original Source)

Shares of Tripadvisor are falling nearly 13% to $55 in after-hours trading. TRIP has a 1-year high of $87.50 and a 1-year low of $53.48. The stock’s 50-day moving average is $62.87 and its 200-day moving average is $64.52.

On the ratings front, TRIP stock has been the subject of a number of recent research reports. In a report released yesterday, Cantor analyst Naved Khan maintained a Hold rating on TRIP, with a price target of $67, which represents a potential upside of 6% from where the stock is currently trading. Separately, on the same day, RBC’s Andrew Bruckner reiterated a Hold rating on the stock and has a price target of $55.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Naved Khan and Andrew Bruckner have a yearly average return of 18.7% and 1.5% respectively. Khan has a success rate of 79% and is ranked #59 out of 4181 analysts, while Bruckner has a success rate of 53% and is ranked #1736.

Overall, one research analyst has rated the stock with a Sell rating, while 6 research analysts have assigned a Hold rating=. When considering if perhaps the stock is under or overvalued, the average price target is $63.75 which is 1.0% above where the stock opened today.

TripAdvisor, Inc. owns and operates a portfolio of online travel brands. The company operates its business through two segments: Hotel and Other. The Hotel segment includes revenue generated from services related to hotels, including click-based and display-based advertising revenue from making hotel room nights, airline reservations, and cruise reservations available for price comparison and booking, as well as subscription-based products such as Business Listings, transaction-based products such as Jetsetter and Tingo, and other revenue related to hotels. The Other segment consists of the aggregation of three operating segments, which include its attractions, restaurants and vacation Rentals businesses.