Fri, Jul. 24, 9:17 AM
Thu, Jul. 23, 6:17 PM
- In addition to missing Q2 estimates, TripAdvisor (NASDAQ:TRIP) has used its earnings call to cut its full-year revenue growth to low-to-mid 20s growth from a prior outlook for high-20s growth; consensus is at 27.2%. EBITDA growth is now only expected to be in the low-to-mid single digits.
- The travel site blames international click-based (metasearch) ad prices and forex. Click ad revenue rose 13% Y/Y in Q2 to $266M (66% of total revenue), a slowdown from Q1's 20%. Display ad revenue rose 8% to $40M, and subscription, transaction, and other revenue rose 94% to $99M.
- Regional performance: North America remained strong, with regional revenue growing 31% to $211M. But EMEA revenue growth slowed to 19% (to $12&M) from Q1's 30%, and Asia-Pac growth to 14% (to $48M) from 20%. Latin America grew 46% to $19M.
- Other numbers: Hotel-related revenue rose 13% to $343M (85% of total). Other revenue (boosted by M&A) rose 210% to $62M. Traffic growth is still healthy: Average monthly unique visitors +30% to 375M, with mobile app downloads rising by 25M Q/Q to 215M (195M for the core TripAdvisor app). Weighing on EPS: GAAP costs/expenses rose 46% Y/Y to $326M, thanks partly to a 51% increase in sales/marketing spend to $192M.
- Priceline (NASDAQ:PCLN), which received 88% of its Q1 bookings from international markets (to a large extent Europe), is down 1.2% AH. Priceline's Q2 report is due on Aug. 5.
- TripAdvisor's Q2 results, PR
Thu, Jul. 23, 5:43 PM
Tue, Jun. 30, 11:47 AM
- Piper's Michael Olson reports checks for online travel trends through May point to a strong Q2 for the industry.
- Priceline (PCLN +2.8%), Expedia (EXPE +2%), Travelzoo (TZOO +3%), HomeAway (AWAY +1.6%), and TripAdvisor (TRIP +0.9%) are outperforming to varying degrees amid a 0.5% gain for the Nasdaq. Aside from Expedia, the group has been pressured by a mixture of forex and company-specific concerns. Piper has a neutral rating on Expedia due to valuation concerns, and Overweight ratings on Priceline, TripAdvisor, and HomeAway.
- Separately, Expedia has named worldwide engineering SVP Aman Bhutani the president of the Brand Expedia Group, which covers Expedia.com, Travelocity, Wotif, and Expedia's JV with AirAsia - CEO Dara Khosrowshahi has been handling the job for over 3 years. GeekWire notes Bhutani has a strong reputation within the company for making data-driven tech decisions and experimenting with product changes.
- Previously: Deutsche downgrades Priceline, cites Airbnb
- Previously: Macquarie: HomeAway is cheap if Airbnb is worth $24B
Wed, Jun. 17, 2:50 PM
- Marriott (MAR +0.2%) is adding its hotel portfolio to TripAdvisor's (TRIP +14.5%) Instant Booking platform. The solution will allow TripAdvisor users to make bookings at Marriott's 4,200+ hotels without leaving its site/apps. Marriott/TripAdvisor also plan to take steps to "introduce new customers to Marriott's broad portfolio of 19 industry-leading brands."
- The deal represents a major shot in the arm for Instant Booking, which was launched only 12 months ago. TripAdvisor is better known to many users for showing listings (via its metasearch platform) that can be booked on 3rd-party platforms such as Priceline and Expedia.
- TripAdvisor has soared above $87 on the news.
Wed, May 6, 6:34 PM
- Though TripAdvisor (NASDAQ:TRIP) missed Q1 estimates amid heavy forex pressures, the company used its CC (webcast) to reiterate guidance for high-20s 2015 revenue growth; consensus is at 27.3%.
- Q1 revenue growth was 29% Y/Y in actual dollars, and 36% in constant currency. Click-based (search ad-driven) revenue +20% to $249M (69% of total revenue); display ads (expected to be soft) +9% to $35M; subscription, transaction, and other +88% to $79M.
- Regional performance: North American revenue +25% Y/Y to $182M; EMEA +33% to $120M; Asia-Pac +20% to $42M; Latin America +90% to $19M. International was 53% of total revenue.
- Other numbers: GAAP costs/expenses rose 48% Y/Y to $273M, thanks in large part to a 55% increase in sales/marketing spend to $157M. Headcount rose by 100 Q/Q and 800 Y/Y to 2.9K. Monthly unique visitors +31% Y/Y to 340M. Cumulative mobile app downloads are up to 190M.
- Shares have risen to $80.59 AH. Expectations were fairly low going in.
- Q1 results, PR
Wed, May 6, 4:11 PM
Tue, May 5, 11:29 AM
- RBC's Mark Mahaney has downgraded TripAdvisor (TRIP -2.2%) to Sector Perform ahead of tomorrow afternoon's Q1 report, albeit while keeping his target at $91.
- Mahaney thinks TripAdvisor's revenue concentration spells risk - the company depends heavily on a handful of major online travel firms - and is worried about the performance of its display ad ops; several Internet companies have reported weak Q1 ad sales, often while citing the pricing impact of an industry shift towards programmatic (automated) ad buys. He's more partial to Priceline and Expedia.
- TripAdvisor surged in February after posting mixed Q4 results and offering strong 2015 sales guidance, but gradually returned a chunk of its gains. Shares remain down 30% from a 52-week high of $111.24.
Tue, Mar. 3, 2:22 PM| Tue, Mar. 3, 2:22 PM | Comment!
Thu, Feb. 19, 2:28 PM
- Expedia (EXPE +2%) and TripAdvisor (TRIP +3.9%) are having a good day after Priceline beat Q4 estimates in spite of being heavily pressured by a weak euro, and reported 17% Y/Y bookings growth (above guidance of 8%-15%).
- The online travel giant's Q1 guidance - 4%-11% revenue growth vs. a 13.5% consensus, and 2%-9% bookings growth (14%-21% in constant currency) - is light, but better than feared given forex and Priceline's history of guiding conservatively.
- The shoe was on the other foot last week: Priceline rallied in response to TripAdvisor's results and the Expedia/Orbitz deal.
Thu, Feb. 12, 12:45 PM
Thu, Feb. 12, 9:15 AM| Thu, Feb. 12, 9:15 AM | 5 Comments
Wed, Feb. 11, 6:45 PM
- In addition to beating Q4 revenue estimates (while missing on EPS), TripAdvisor (NASDAQ:TRIP) guided on its CC (webcast) for high-20s 2015 revenue growth, above a 24% consensus. Adjusted EBITDA is expected to grow at a low-to-mid teens clip.
- A 97% Y/Y increase in subscription, transaction, & other revenue (to $71M) provided a big lift to Q4 sales. Click-based (metasearch ad) sales rose 25% to $181M, and display ad sales rose 13% to $36M. North America sales +35%, EMEA +39%; Asia-Pac +13%. Forex had a 4% impact on sales growth.
- GAAP costs/expenses +25% Y/Y to $228M (compares with 35% revenue growth). Sales/marketing spend totaled $115M, up from $107M a year ago but down from Q3's $159M (boosted by a TV ad campaign).
- TRIP +13.7% AH to $76.50. After having tumbled in November thanks to TripAdvisor's Q3 report, shares went into earnings close to a 52-week low of $66.04.
- Q4 results, PR (.pdf), earnings slides (.pdf)
Wed, Feb. 11, 5:36 PM
Wed, Feb. 11, 4:08 PM
Thu, Jan. 8, 9:59 AM
- Believing "the best days for shares may be behind it," Stifel's Scott Devitt has downgraded Google (GOOG -1.4%) to Hold. "Google is in the early to mid stages of a core business maturation. The company continues to find growth outside of search, but in structurally lower-margin business [segments] such as Google Play and YouTube."
- Devitt adds Google will face stiff competition as it further expands into vertical search categories such as travel, local, and e-commerce - some of those efforts have been faring well - and echoes other analysts in arguing Facebook's growing share of digital ad spend poses a threat.
- Devitt has also downgraded Priceline (PCLN -1.3%) to Hold, citing concerns about forex - the impact of a weak euro is already well-known - high marketing spend, and growing competition. "The online travel market continues to benefit from secular tailwinds such as mobile adoption, but we believe that shifts in the competitive landscape and macro headwinds warrant a moderate 2015 outlook."
- TripAdvisor (TRIP +0.4%) has been cut to Hold due to worries about delayed booking service launches and higher marketing spend, as well as growth concerns about TripAdvisor's core metasearch service (previous).
- Google, Priceline and TripAdvisor were already fairly close to their 52-week lows going into today. Google and Priceline both now trade for 17x 2015E EPS. Their 2015 revenue growth consensus estimates are respectively at 19% and 17%.
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