TripAdvisor Misses Q3 Earnings Expectations

TripAdvisor Inc TRIP announced financial results Tuesday for the third quarter ended September 30, 2014. Total revenue was $354 million, above expectations of $348.81 million and up 39 percent year-over-year.

Non-GAAP net income was $71 million, or $0.48 per diluted share, below analyst estimates of $0.60 and up 9 percent year-over-year. Net income was $54 million, or $0.37 per diluted share, down 4 percent year-over-year.

Adjusted EBITDA was $119 million, or 34% of revenue, up 14 percent year-over-year.

The press release indicated that the company had more than 315 million average monthly unique visitors to TripAdvisor’s websites during the third quarter.

“The biggest news for the quarter was our Viator acquisition, which expands our presence into the tours and attractions reservation business. We are thrilled to welcome such a great team to the TripAdvisor family, and are very excited to build on our leadership position in this fast-growing category. While this acquisition helped accelerate Q3 total revenue growth, it was partially offset by lower than expected Click-based revenue growth. Importantly, our business fundamentals remain strong, and we will continue on our path of investing for long term growth,” said Steve Kaufer, TripAdvisor’s President and Chief Executive Officer.

TripAdvisor traded at $74.51 in the after-hours session, down 11.08 percent.