TripAdvisor Surpasses Q1 Expectations with Year-over-Year Revenue Growth

Updated On: May 8, 2025 2:41 pm

TripAdvisor Reports Strong Q1 Earnings, Positive Revenue Growth

TripAdvisor (TRIP) announced its first-quarter 2025 results, showing non-GAAP earnings of 14 cents per share, a 17% increase from the same period last year. This performance exceeded the Zacks Consensus Estimate by an impressive 180%.

Revenues for the quarter reached $398 million, a slight increase of 1% year over year, and also surpassed the Zacks Consensus Estimate by 2.31%. Growth was primarily fueled by strong performance in its marketplace segments, including Viator and TheFork.

Detailed Breakdown of Quarterly Results

Brand Tripadvisor: This segment generated $219 million in revenues, accounting for 55% of total revenues but reflecting an 8% decline year over year. Nonetheless, it surpassed the consensus estimate of $214 million. Media and advertising revenues in this segment decreased by 6% to $31 million. Revenue from experiences and dining also fell, totaling $30 million, a 15% drop year over year. The decline was influenced by targeted marketing strategies aimed at improving ROI.

TripAdvisor, Inc. Price, Consensus, and EPS Surprise

TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote

Branded hotel revenues saw a 7% year-over-year decline to $148 million, while other revenues within this segment fell by 19% to $10 million.

Viator: For the Viator segment, revenues hit $156 million, making up 39.1% of total revenues. This marks a 10% increase from the previous year and surpassed the consensus estimate of $155 million.

TheFork: Revenues from TheFork totaled $46.4 million, or 11.7% of total revenues, reflecting a year-over-year increase of 12% and exceeding the consensus estimate of $46.04 million.

TRIP’s Operating Results

TripAdvisor reported a 9% year-over-year increase in its cost of sales, reaching $27 million for the first quarter. This led to a 50 basis point rise in costs as a percentage of revenue.

Marketing costs also increased, up 6% to $172 million, expanding by 200 basis points as a percentage of revenues. In contrast, general and administrative costs fell 41% to $17 million, with a 300 basis point contraction relative to revenues.

Technology costs amounted to $22 million, a 4% rise year over year, with a 20 basis point increase in the costs relative to overall revenues.

TripAdvisor posted an operating loss of $15 million, consistent with the loss reported in the prior year. The adjusted EBITDA margin for the quarter stood at 11%, reflecting an 80 basis point contraction year over year.

Balance Sheet and Cash Flow Overview

As of March 31, 2025, TripAdvisor held $1.2 billion in cash and cash equivalents, up from $1.1 billion as of December 31, 2024. The long-term debt rose to $1.16 billion, compared to $831 million in the prior quarter.

The company generated $102 million in cash from operations this quarter, a notable improvement from negative cash flow of $2 million in the previous quarter. Free cash flow for the first quarter stood at $83 million.

Q2 2025 Guidance

TripAdvisor anticipates revenue growth to fall between 5% and 8% for the second quarter of 2025.

For the Viator segment, the company expects mid-teens growth in the number of experiences booked, with revenue growth projected at 9% to 11%.

The Brand Tripadvisor segment is expected to see flat to a 2% decline in revenues compared to the previous year.

For TheFork, projected revenue growth ranges from 26% to 28%, including about six percentage points of currency benefits at current rates. The adjusted EBITDA margin for Q2 2025 is estimated to fall between 16% and 18%.

Current Zacks Rank and Stock Considerations

TripAdvisor currently holds a Zacks Rank #3 (Hold).

Advance Auto Parts (AAP), Alibaba (BABA), and Canada Goose (GOOS) are alternative stocks within the sector that may be worth considering. AAP presently has a Zacks Rank #1 (Strong Buy), while both BABA and GOOS hold a Zacks Rank #2 (Buy).

Advance Auto Parts has seen a 16.3% decline in shares year to date, expecting its first-quarter 2025 results on May 22. Alibaba’s shares have gained 4.9% year to date, with its fourth-quarter fiscal 2025 results due on May 15. Canada Goose shares rose 8.2% year to date, with fourth-quarter fiscal 2025 results set for May 21.