On November 6, 2023, TripAdvisor Inc (TRIP, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a 16% YoY growth in revenue, reaching $533 million. Net income also saw an 8% YoY increase, standing at $27 million, or $0.19 diluted EPS.
Financial Highlights
Adjusted EBITDA for the quarter was $127 million, or 24% of revenue. The company's Viator segment saw a significant 41% YoY growth in revenue, reaching $245 million. The Tripadvisor Core segment reported a modest 2% YoY growth, with revenue at $290 million. TheFork segment also saw a 20% YoY increase in revenue, reaching $42 million.
Operating expenses for the quarter were $469 million, marking a 21% YoY increase. This was primarily driven by a 34% YoY increase in the cost of revenue, which stood at $43 million, and a 16% YoY rise in selling and marketing costs, which reached $272 million. Technology and content costs also saw a 20% YoY increase, reaching $66 million.
Company Performance and Future Plans
CEO Matt Goldberg expressed satisfaction with the company's performance, attributing the healthy growth to their efforts to capitalize on their leadership position in the experiences category. CFO Mike Noonan also highlighted the solid financial results, particularly the better-than-expected performance across experiences and in the Tripadvisor Core hotel meta offering.
The company also announced a new share repurchase program, authorized by the Board of Directors on September 7, 2023. The program allows for the repurchase of $250 million in shares of the company's common stock over a term of two years.
Financial Position
As of September 30, 2023, TripAdvisor Inc (TRIP, Financial) had approximately $1.1 billion of cash and cash equivalents, marking an increase of $103 million from December 31, 2022. This increase was driven by positive operating cash flows during the year, including an income tax refund of $49 million during the third quarter of 2023 associated with an IRS audit settlement.
Segment Highlights
The Tripadvisor Core segment saw a 2% YoY growth in revenue, reaching $290 million. The Viator segment reported a significant 41% YoY growth in revenue, reaching $245 million. TheFork segment also saw a 20% YoY increase in revenue, reaching $42 million.
Overall, TripAdvisor Inc (TRIP, Financial) delivered a solid performance in Q3 2023, with healthy growth across key financial metrics. The company continues to capitalize on its leadership position in the experiences category, driving revenue growth and exceeding financial expectations.
Explore the complete 8-K earnings release (here) from TripAdvisor Inc for further details.
