Please ensure Javascript is enabled for purposes of website accessibility

Why TripAdvisor Soared High Above the Market Today

By Eric Volkman - May 5, 2022 at 6:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company more than doubled its revenue in the inaugural quarter of 2022.

What happened

TripAdvisor (TRIP 2.56%) bucked the sharp downward trend of the wider stock market on Thursday. In contrast to the yawning 3.6% drop of the S&P 500 index, the online travel agency and advice board operator's shares scored a 5.1% gain on the day. That was thanks to two encouraging developments.

So what

TripAdvisor unveiled its first-quarter results after market hours on Wednesday. Lifted by the thrust of the tourism sector's continued recovery, the company managed to double its revenue and then some year over year, to $262 million.

Two happy people taking a stroll while dressed in light jackets.

Image source: Getty Images.

Of its two business segments, experiences and dining saw the more dramatic improvement, with its take rising by almost 230% to $92 million. Hotels, media, and platform, meanwhile, notched a more-than-respectable 82% rise.

Although the company didn't quite ascend into profitability, it managed to significantly narrow its bottom-line loss. Under non-GAAP (adjusted) standards, this was $13 million ($0.24), far better than the year-ago shortfall of $53 million.

This represented a mixed quarter for TripAdvisor. Although analysts following the stock were collectively expecting only $250.4 million in revenue, they believed the adjusted net loss would be even narrower, at $0.08 per share. 

"After an Omicron-impacted January, our business picked up strongly in February and March, resulting in exceeding our own expectations for the quarter," CEO Steve Kaufer said. 

Now what

Although TripAdvisor didn't proffer any guidance -- a situation that usually worries investors -- optimism still swirled around the company.

Perhaps that was also due to an apparently smooth CEO transition. The company announced that Kaufer is being replaced by Matt Goldberg, who has long and wide experience in both the media and travel sectors with stints as an executive at such businesses Lonely Planet travel guides and News Corp.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

TripAdvisor, Inc. Stock Quote
TripAdvisor, Inc.
$18.64 (2.56%) $0.47

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.