TripAdvisor Inc. (NASDAQ/TRIP) reported its second-quarter financials on Thursday July 24th. The company said its expenses rose in the second quarter, countering growth in revenue.
Investors were disappointed with the results. Shares of TripAdvisor slumped 8.4% to $86.50 in pre-market trading after the company’s earnings missed expectations.
The online travel booking company reported second-quarter earnings of $79.0 million, or 54 cents per diluted share, falling from the previous year’s $81.0 million, or 55 cents per share profit. (Source: TripAdvisor, July 24, 2015.)
The net income fell 15% to $58.0 million, or 40 cents per share compared to $68 million, or $0.47 per diluted share, for the second quarter of 2014. The company also reported that the number of average monthly unique visitors surged 30% to 375 million.
“We grew content by 50% reaching more than a quarter-of-a-billion reviews and opinions; we grew community by more than 30% to 375 million monthly unique users, we further deepened our relationships with large hotel partners to power direct bookings, and we extended our global reach in our newer attractions and restaurants businesses,” CEO Steve Kaufer said in a statement.
The company expanded its relationships with Marriott International and another major chain as well as Mandarin Oriental, Langham Hospitality, and AmericInn, adding these chains to the TripAdvisor instant booking platform.
TripAdvisor acquired Sydney, Australia-based Dimmi and has extended its global restaurant reservation business into 12 countries, including: Australia, Belgium, Brazil, Denmark, France, Italy, Portugal, Spain, Sweden, Switzerland, Turkey, and the Netherlands.
The company is trying to attract customers in China, too. TripAdvisor unveiled a new global brand name for TripAdvisor in Chinese: Mao Tu Ying, which means “owl” and “journey” and reinforces that TripAdvisor provides smart advice for travelers by travelers around the world.
The Newton, MA-based online travel booking company has been a subject of various research reports. Analysts have mixed views on the company’s outlook. Analysts at Oppenheimer raised their price target on shares of Tripadvisor from $90.00 to $105.00 and gave the company an “outperform” rating. Analysts at RBC Capital reiterated a “hold” rating and set a $91.00 price target on shares.