Here’s Why Shares of TripAdvisor Are Soaring Today
Travel review website operator TripAdvisor Inc reported a quarterly profit that beat analysts’ estimates, as the company earned more from display ads and subscriptions.
The company’s shares rose 15.6% to $62.65 in trading on Thursday morning.
TripAdvisor, which owns websites such as Tripadvisor.com and Oyster.com, said display ads revenue rose 17% and subscription revenue jumped 23 percent in the fourth quarter ended Dec. 31.
However, click-based advertising revenue, its biggest, fell 1%.
The company during the quarter accelerated the roll out of its instant booking feature to more countries.
The feature, launched in 2014 in the United States and UK, allows travelers to book a hotel directly from the company’s website instead of being directed to a third-party booking site.
The company’s net income fell to $3 million, or 2 cents per share, from $36 million, or 25 cents per share, a year earlier.
Excluding items, TripAdvisor earned 45 cents per share.
Total revenue rose 7.3% to $309 million.
Analysts on average had expected quarterly earnings of 33 cents per share and revenue of $298.7 million, according to Thomson Reuters I/B/E/S.
See original article on Fortune.com
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