TripAdvisor shares dropped more than 5 per cent in after-hours trading on Wednesday after it unveiled quarterly results that showed the travel-review website’s profit and sales falling short of analysts’ estimates as it attempts to bolster its brand awareness by investing in growth initiatives.
TripAdvisor said that revenue clocked in at $316m during the three-month period ending December 31, a 2 per cent rise from the year-ago period but below the $327m forecast by Wall Street analysts surveyed by Bloomberg.
Net income during the same period was $1m, translating to diluted earnings per share of just 1 cent, below the $20.4m in income and 14 cents per share that analysts had predicted. The company said its results were “dampened” by its “significant investments” in growth initiatives during the quarter, and that it hopes to turn a corner and focus on growing revenue in the coming year.
“2016 was an important transition year and one of great progress towards creating the best user experience in travel,” said chief executive Steve Kaufer.
TripAdvisor has struggled to distinguish itself in the increasingly crowded field of travel websites. While it initially launched as a travel review site, it has since expanded its offerings, and now has price comparison and booking tools.
The company’s shares have fallen 16.6 per cent in the past 12 months.
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