Tripadvisor Slumps on Downbeat Earnings, Co-Founder’s Exit
By Dhirendra Tripathi
Investing.com – Tripadvisor stock (NASDAQ:TRIP) fell 8.3% on Tuesday as third-quarter numbers fell short of estimates and the company said its Co-Founder and CEO Steve Kaufer will step down next year after more than 20 years with it.
Kaufer will continue to lead the company until a successor is found. Several operational indicators remained below the same quarter in 2019.
More was expected from the travel guidance company as most economies, including U.S. and Europe, reopened and people looked to travel. Analysts expected the upcoming holiday season to propel the company higher but the doubling of revenue to $303 million wasn’t enough to meet that expectation.
The company’s outlook lacked the confidence traders wanted. It said the pandemic-related challenges continue to add near-term uncertainty to the recovery, and therefore it is not anticipating the current-quarter revenue to show a meaningful improvement compared to 2019 levels. That compares with last week’s positive commentary from Airbnb (NASDAQ:ABNB).
Third-quarter consolidated revenue was around 71% of revenue in the 2019 quarter.
Overall, average monthly unique users on Tripadvisor websites were approximately 76% of 2019’s comparable period.
Net profit was $1 million, riding on higher revenue and was partially offset by selling and marketing expenses incurred on rising demand for travel.
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