TripAdvisor, Inc. (NASDAQ: TRIP) reported its third quarter financial results after the closing bell on Wednesday and smashed analysts’ earnings estimates.TripAdvisor shares surged by over 15% at the opening bell on Thursday.
For the third quarter, TripAdvisor reported revenue of USD 458 Million, increasing 4% year over year, but missing estimates of USD 469.1 Million. The Company reported earnings per share of USD 0.72 cents, increasing 100% year over year and crushing estimates of USD 0.24 cents.
The stronger than expected results were driven by its Non-Hotel revenue, which drove in USD 153 Million in sales, increasing 20% year over year. Hotel revenue was USD 305 Million for the quarter, decreasing 2% year over year. Other Hotel revenue was USD 30 Million in the quarter, decreasing by 27% year over year.
TripAdvisor branded click-based and transactions revenue was USD 194 Million in the quarter, slightly declining by 1% year over year. TripAdvisor branded display-based advertising and subscription revenue was USD 81 Million in the quarter, increasing by 7% year over year.
Hotel adjusted EBITDA was USD 146 Million for the quarter, increasing 54% year over year. Non-Hotel adjusted EBITDA was USD 99 Million for the quarter, increasing by 94% year over year.
“We delivered a strong third quarter, delivering increased operating efficiency while investing for long-term profitable growth,” said Chief Executive Officer Steve Kaufer. “Product enhancements, platform expansion and progressive marketing optimizations continue to hit the mark and contributed to improved financial results.” said Chief Financial Officer Ernst Teunissen.
“Q3 had a number of very positive developments. Revenue per hotel shopper grew 5%, and revenue growth accelerated in our key Non-Hotel offerings. Hotel adjusted EBITDA nearly doubled year-over-year and consolidated adjusted EBITDA grew 54%. We are on track to deliver strong profit growth in 2018, and we are well-positioned heading into 2019.” added Kaufer.