Tripadvisor will not sell, the company confirmed early Wednesday in a release reporting its first quarter earnings results ahead of its scheduled earnings call.
“The special committee has determined that at this time, there is no transaction with a third party that is in the best interests of the company and its stockholders,” Tripadvisor said in its earnings release.
The decision follows Tripadvisor’s February announcement that it had formed a committee and hired an advisor “to evaluate any proposals that may be brought forward for a potential transaction.”
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Days before, Liberty Tripadvisor Holdings, which is responsible for a majority voting stake of the company, gave its board approval on February 9 to engage in discussions “with respect to a potential transaction.”
While Tripadvisor won’t sell now, it stopped short of saying the company isn’t for sale, noting the special committee will still evaluate proposed alternatives if deemed appropriate. Tripadvisor said it doesn’t plan to share further updates unless something is “definitive.”
Tripadvisor sees slight Q1 growth
Matt Goldberg, CEO of Tripadvisor, said the company’s first quarter results provide a “solid start” to 2024.
“We believe that our unique position in travel and experiences, coupled with positive signals we are seeing as a result of our segment strategies, will drive continued momentum across Tripadvisor Group,” Goldberg said in the release.
Tripadvisor posted $395 million in total revenue for its first quarter of 2024, a 6% bump year over year. The company’s adjusted EBITDA was $47 million.
Tripadvisor also saw a net loss of $59 million, which included the net impact of a $42 million incremental income tax expense, which had been a result of an IRS audit settlement.
“Our disciplined approach to balancing growth and investment was reflected in our first quarter results,” chief financial officer Mike Noonan said. “We remain pleased with our operational execution, which is driving solid financial outcomes, and remain focused on segment priorities in support of long-term growth and profitability.”
Tripadvisor saw revenue shifts across its three segments – the brand Tripadvisor, Viator and TheFork.
Viator saw a marked rise – with a posted 23% bump in revenue year over year. Meanwhile, the Tripadvisor brand saw a 2% dip and TheFork saw a 17% rise.
Viator also saw year-over-year growth of around 15% in gross bookings valued at approximately $1 billion.
Tripadvisor’s active first quarter
In February, Tripadvisor reported its 2023 full-year earnings – reporting $1.78 billion in revenue, a 20% bump compared with 2022. The company’s adjusted EBIDTA sat at $334 million for 2023 – a 13% rise.
Tripadvisor’s success was heavily bolstered by Viator, which experienced 49% growth in revenue in 2023 — then saw a significant change in the first quarter.
Viator president Ben Drew announced in April he was departing from the company after four years in the position to pursue another opportunity. No successor has been named.
Also during the quarter, Tripadvisor shuttered Tripadvisor Plus – its attempt at a subscription program meant to provide traveler discounts, bolster bookings and revenue for suppliers. Tripadvisor Plus launched in beta in December 2020 and to the public in June 2021.
This story will be updated.