TripAdvisor, Inc. (TRIP) has reported 55.17 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $13 million, or $0.09 a share in the quarter, compared with $29 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35 million, or $0.24 a share compared with $49 million or $0.33 a share, a year ago.
Revenue during the quarter grew 5.68 percent to $372 million from $352 million in the previous year period. Gross margin for the quarter contracted 2 basis points over the previous year period to 95.43 percent. Total expenses were 92.74 percent of quarterly revenues, up from 88.07 percent for the same period last year. That has resulted in a contraction of 467 basis points in operating margin to 7.26 percent.
Operating income for the quarter was $27 million, compared with $42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $73 million compared with $85 million in the prior year period. At the same time, adjusted EBITDA margin contracted 452 basis points in the quarter to 19.62 percent from 24.15 percent in the last year period.
"2017 is off to a productive start," said chief executive officer Steve Kaufer. "Our 500 million reviews and opinions continue to forge TripAdvisor brand affinity around the world, and we are building on this strength as we further streamline the hotel shopping experience. Later in Q2, we plan to launch a brand advertising campaign to build user awareness of TripAdvisor as not only a great place to research a hotel, but a great place to find the lowest prices when a user is ready to book."
Operating cash flow improves
TripAdvisor, Inc. has generated cash of $134 million from operating activities during the quarter, up 8.06 percent or $10 million, when compared with the last year period.
Cash flow from investing activities was $98 million for the quarter, up 790.91 percent or $87 million, when compared with the last year period.
The company has spent $114 million cash to carry out financing activities during the quarter as against cash outgo of $98 million in the last year period.
Cash and cash equivalents stood at $731 million as on Mar. 31, 2017, up 11.94 percent or $78 million from $653 million on Mar. 31, 2016.
Working capital increases marginally
TripAdvisor, Inc. has recorded an increase in the working capital over the last year. It stood at $551 million as at Mar. 31, 2017, up 3.57 percent or $19 million from $532 million on Mar. 31, 2016. Current ratio was at 2.22 as on Mar. 31, 2017, down from 2.23 on Mar. 31, 2016.
Days sales outstanding went down to 50 days for the quarter compared with 55 days for the same period last year.
At the same time, days payable outstanding went down to 58 days for the quarter from 71 for the same period last year.
Debt increases substantially
TripAdvisor, Inc. has witnessed an increase in total debt over the last one year. It stood at $217 million as on Mar. 31, 2017, up 95.50 percent or $106 million from $111 million on Mar. 31, 2016. Total debt was 9.54 percent of total assets as on Mar. 31, 2017, compared with 5.01 percent on Mar. 31, 2016. Debt to equity ratio was at 0.16 as on Mar. 31, 2017, up from 0.08 as on Mar. 31, 2016.
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