TripAdvisor revenues dip following drop in subscriptions and ads
TRAVEL review website TripAdvisor Inc reported lower-than-expected quarterly revenue, hurt by a fall in display advertisements on its websites and a drop in subscription revenue.
Shares of the company, which owns websites such as TripAdvisor.com and Oyster.com, fell 5.1 percent to US$49.99 in extended trading on Wednesday.
TripAdvisor’s total revenue in the fourth quarter was US$316 million, missing the average analyst estimate of US$326.5 million, according to Thomson Reuters I/B/E/S.
On an adjusted basis, the company earned 16 cents per share, well below analysts’ estimate of 31 cents per share.
The company’s revenue from display-based advertising and subscription fell 2.8 percent to US$69 million.
Needham, Massachusetts-based TripAdvisor, which aggregates reviews and opinions about destinations and hotels, said its referral and transaction revenue was US$154 million, flat from last year.
TripAdvisor’s referral revenue has been under pressure since the company rolled out its instant booking feature, which allows booking of hotel rooms directly through the company’s website.
The company’s other hotel revenue, which include revenue from non-TripAdvisor branded websites, fell 20.7 percent to US$29 million.
Net income fell to US$1 million, or one cent per share, in the quarter ended December 31, from US$3 million, or two cents per share, a year earlier. – Reuters
- IoT is revolutionizing what it means for healthcare to be “smart”
- To survive, asset managers need to embrace disruptive technologies
- Can AI help train your salespeople faster and more intelligently?
- Interview: What will ISA’s Global Cybersecurity Alliance actually do?
- Here’s why the agriculture industry needs drone technology