Digital Booking Sites

TripAdvisor Q2 Profits Jump 26 Percent, Says Metasearch Boost Is Still to Come

Jul 24, 2013 3:06 pm

Skift Take

TripAdvisor had a great quarter and expects an additional year-end boost from its new hotel metasearch and first-ever ad campaign, which will hit international markets in the second half of this year.

— Samantha Shankman

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TripAdvisor Inc reported a 26 percent jump in quarterly profit as more people visited the company’s travel website, generating higher advertising revenue, sending its shares up 18 percent in after-hours trading.

The company aggregates reviews and opinions about destinations and accommodations and depends on ads and subscriptions for revenue.

TripAdvisor has been trying to create a larger presence in advertising through television, radio and print media. The company said it kicked off its first offline ad campaign in the second quarter.

TripAdvisor, which was spun off from online travel agency Expedia Inc in 2011, said more than 1 billion people visited its website during the first half of the year.

Revenue from click-based advertising rose 21 percent to $182.8 million for the second quarter ended June. It accounted for 74 percent of total revenue. The company also reported sizeable jumps in display- and subscription-based advertising.

Total revenue jumped 25 percent to $246.9 million.

Net income attributable to TripAdvisor rose to $67 million, or 46 cents per share, from $53 million, or 37 cents per share, a year earlier. Excluding one-time items, the company earned 52 cents per share.

Analysts on average were expecting earnings of 49 cents per share on revenue of $236.6 million, according to Thomson Reuters I/B/E/S.

The company’s shares were trading at $72 in extended trade after closing at $61.14 on the Nasdaq on Wednesday. They have gained about 45 percent so far this year.

Reporting by Sagarika Jaisinghani in Bangalore.

Copyright (2013) Thomson Reuters.

Additional notes from Skift:

  • Next quarter will be the first in which TripAdvisor’s new hotel metasearch service is fully rolled out, which CEO Steve Kaufer expects will have a “significant impact” on Q3 earnings.
  • During the earnings call, Kaufer also explained that app downloads have increased 125 percent year-over-year to 50 million downloads. The download growth was driven by acquired assets GateGuru and JetSetter.

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