What happened

Shares of Lindblad Expeditions Holdings (LIND 0.22%) were down 8.9% as of 12:16 p.m. ET on Monday after the company reported second-quarter financial results. The results might have disappointed investors, but the quarter points to a steady recovery for the cruise ship operator.

Revenue came in at $91 million, up 19% year over year, as Lindblad was operating with its full fleet of ships during the quarter. The higher demand for expeditions lifted the bottom-line performance, with the company's net loss narrowing to $30 million compared to a loss of $36 million in the year-ago quarter. 

So what

Lindblad got hit hard during the pandemic. It still has a way to go before recovering to pre-pandemic revenue levels of $343 million in 2019, but it is ramping up operations and experiencing a steady upward trend in demand.  

Despite inflationary pressures in the economy and the Russia-Ukraine conflict, management described the demand for travel experiences as strong and expects it to keep growing. 

The company provided early indicators for a strong 2023. Next year's bookings are up 26% compared to 2020 bookings at this point in 2019.  This is despite the company still dealing with higher cancellations and softer near-term demand due to the pandemic.

Now what 

The higher demand amid a relatively weakened economy reflects the long-term opportunity in the type of exploration and adventure experiences that Lindblad offers.

Before the pandemic hit, expedition cruises were growing rapidly. Lindblad's strong recovery this year shows it could be on the verge of picking up where it left off in 2019, when revenue was on pace to double by 2020 from 2015 levels. 

Analysts currently anticipate Lindblad to finish 2022 with $349 million in revenue, an increase of 137% over last year, before growing another 34% next year. Investors looking for an undervalued travel stock might want to keep Lindblad on their watch list.