TripAdvisor (NASDAQ:TRIP) shares ticked higher on Wednesday evening after forecasting strong summer travel, joining a host of travel CEOs expecting the same.
The Massachusetts-based online travel company narrowly missed on earnings per share, while a 113% increase in revenue from 2021 topped estimates by $12.3 million. Additionally, average monthly users rose by 27% to about three-quarters of the levels reached in 2019.
“After an Omicron-impacted January, our business picked up strongly in February and March, resulting in exceeding our own expectations for the quarter,” CEO Steve Kaufer said. “We are optimistic about the remainder of 2022 and the increasing demand for travel, and are excited to help provide great advice and guidance to our community of travelers as they venture out again into the world.”
CFO Ernst Teunissen added that positive travel trends are particularly pronounced in Events & Dining as well as Hotels, Media, & Platform categories. The two businesses grew 229% and 82% from 2021 respectively in the quarter.
Shares rose over 6% in extended trading on the optimistic commentary.
“We see great opportunity in these categories in the future, and believe that our investments to capture more market share are delivering strong top line growth,” Teunissen said.
To be sure, increasing expenses remain a concern. Total operating expenses rose 36% year over year driven by increased direct costs from credit card payments, a 93% increase in selling and marketing expenses, and general administrative costs.
Read more on the quarterly results.