Tripadvisor Inc (NASDAQ:TRIP)’s Adjusted EBITDA Margin Rises By 10 Percentage Points In 4Q

Tripadvisor Inc (NASDAQ:TRIP) said that its adjusted EBITDA margin advanced ten percentage points in the fourth quarter to 34% from 24% in the preceding year quarter. However, this was not enough for the company to record earnings that could surpass the Street analysts’ estimations. Its earnings fell shy of predictions by two cents a share.

Have technical analyst identified a strong wedge in TRIP?

Tripadvisor Inc (NASDAQ:TRIP)’s cash flow from operating activities witnessed a 13% fall to $62 million in the December quarter. The company’s President and CEO, Steve Kaufer, said that last year was a foundation year for its future. He said that the company was able to allow users to complete their booking in its biggest demand categories, i.e. hotels, attractions, and restaurants.

4Q Results

Tripadvisor Inc (NASDAQ:TRIP)’s net income climbed 80% to $36 million from $20 million and earnings surged 78.6% to 25 cents a share from 14 cents a share in the year-ago quarter. On an adjusted basis too, net income jumped 73.3% to $52 million from $30 million while earnings grew 66.7% to 35 cents a share from 21 cents a share during the period under review. Street analysts estimated the company to earn 37 cents a share.

Revenue of Tripadvisor Inc (NASDAQ:TRIP) advanced 35.2% to $288 million from $213 million in the previous year quarter, which was higher than the analysts’ predictions of $285.01 million. Its click-based advertising increased 25% while display-based advertising grew 13% in the December quarter. Subscription, transaction, and other revenue witnessed 97% uptick. The company’s cash and cash equivalents remained at $594 million at the end of the December quarter.

Full Year Results

Tripadvisor Inc (NASDAQ:TRIP) reported net income of $226 million, up 10.2% from $205 million. Similarly, its earnings advanced 9.9% to $1.55 a share from $1.41 a share in 2013. On an adjusted basis, net income grew 16% to $193 million and earnings 15% to $1.93 a share in 2014.

Websites of Tripadvisor Inc (NASDAQ:TRIP) had over 2.5 billion unique visitors in 2014 based on Google Analytics. The company said that it reached close to 175 million mobile app downloads representing YOY growth of 110%.

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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