TripAdvisor gains nearly 5% as investors cheer Q4 earnings (NASDAQ:TRIP)
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Shares of online travel platform TripAdvisor (NASDAQ:TRIP) rose +4.90% to $26.56 in premarket trading on Thursday, after closing in negative territory in the previous session, despite beating analyst estimates for fourth quarter profit and revenue.
The solid earnings report comes a day after the company said it had formed a special committee to explore options, including a potential sale, sending its shares higher, with market cap hitting about $3.5 billion.
A Wells Fargo analyst said Tripadvisor (TRIP) may be worth about $25 a share or more in a potential takeover.
On a consolidated basis, Tripadvisor (TRIP) reported $1.8 billion in revenue, an all-time high, reflecting annual growth of 20%.
“We exited the year with solid financial results, delivering fourth quarter revenue of $390 million, reflecting year-over year growth of 10%. Adjusted EBITDA of $84 million, or 22% of revenue, came in better than expected due favorable channel mix and disciplined marketing spend,” said Chief Financial Officer Mike Noonan. “In 2024, we will continue to prioritize our segment strategies, which focus on long-term growth and profitability.”
The company’s general and administrative costs were $47 million for the fourth quarter, or 12% of consolidated revenue, a decrease of 19% year-over-year.
Tripadvisor will host a conference call on Feb. 15 at 8:30 a.m., Eastern Time.
