TripAdvisor tumbles on profit miss, Q4 revenue slowdown outlook

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Nov 8 (Reuters) - TripAdvisor Inc’s shares sank astir 19% successful premarket commercialized connected Tuesday, a time aft the online question steadfast reported a anemic quarterly nett and flagged a slowdown successful gross successful the existent quarter.

Shares of the institution were trading astatine $19.17 earlier the doorbell and were connected people to unfastened astatine their lowest level since August.

Currency fluctuations, chiefly successful euros, shaved disconnected gross maturation by astir 11 percent points during the 3rd quarter, compared with a twelvemonth earlier.

Higher selling expenses besides dragged down TripAdvisor’s results, with the institution posting adjusted nett of 28 cents per stock for the 3rd 4th versus analysts’ mean expectations of 38 cents per share, according to Refinitiv data.

U.S. question booking firms are spending heavy connected selling to get much radical to publication flights and accommodations connected their apps and websites, arsenic they look to currency successful connected a post-pandemic roar successful tourism.

TripAdvisor’s selling and selling costs jumped 58% to $234 cardinal during the quarter, and the institution said it expects selling walk successful the 4th fourth to output benefits adjacent year.

The steadfast besides flagged that its gross is acceptable to emergence successful low-single digits compared with 2019 levels, implying a humble slowdown from 3rd quarter.

The outlook comes aft abrogation rental institution Airbnb Inc past week forecast holiday-quarter gross could autumn abbreviated of marketplace expectations, saying a beardown dollar had started to unit its concern and that bookings would moderate.

“We are optimistic astir the semipermanent opportunities successful travel, contempt a betterment way that is apt to stay uneven by period and by circumstantial gross line, and little reliably accordant comparative to pre-pandemic,” TripAdvisor said connected Monday.

The institution besides bushed gross estimates, helped by sustained request for question and dining. Its shares person fallen astir 13% this year, outperforming peers Expedia Group Inc, Booking Holdings Inc and Airbnb Inc, which person mislaid betwixt astir 24% and 50%. (Reporting by Priyamvada C successful Bengaluru; editing by Uttaresh.V)

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