TripAdvisor (TRIP) has reported 25.68 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $55 million, or $0.37 a share in the quarter, compared with $74 million, or $0.51 a share for the same period last year. On an adjusted basis, net profit for the quarter was stable at $78 million, or $0.53 a share, when compared with the last year period. Revenue during the quarter went up marginally by 1.45 percent to $421 million from $415 million in the previous year period. Gross margin for the quarter contracted 66 basis points over the previous year period to 95.49 percent. Total expenses were 84.32 percent of quarterly revenues, up from 78.80 percent for the same period last year. That has resulted in a contraction of 553 basis points in operating margin to 15.68 percent.
Operating income for the quarter was $66 million, compared with $88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $114 million compared with $130 million in the prior year period. At the same time, adjusted EBITDA margin contracted 425 basis points in the quarter to 27.08 percent from 31.33 percent in the last year period.
"In the third quarter, content and community grew quickly off of massive bases and we continued improving our products and our platform," said Steve Kaufer, president and chief executive officer of TripAdvisor. "We are focused on building for the long-term, delivering the best end-to-end user experience in travel and creating more value for partners in our marketplace."
Operating cash flow declinesTripAdvisor has generated cash of $277 million from operating activities during the nine month period, down 18.29 percent or $62 million, when compared with the last year period. The company has spent $141 million cash to meet investing activities during the nine month period as against cash outgo of $126 million in the last year period.
The company has spent $133 million cash to carry out financing activities during the nine month period as against cash outgo of $93 million in the last year period.
Cash and cash equivalents stood at $611 million as on Sep. 30, 2016, up 7.76 percent or $44 million from $567 million on Sep. 30, 2015.
Working capital declines
TripAdvisor has witnessed a decline in the working capital over the last year. It stood at $516 million as at Sep. 30, 2016, down 12.10 percent or $71 million from $587 million on Sep. 30, 2015. Current ratio was at 2.15 as on Sep. 30, 2016, down from 2.65 on Sep. 30, 2015.
Days sales outstanding went down to 53 days for the quarter compared with 54 days for the same period last year.
At the same time, days payable outstanding went down to 119 days for the quarter from 158 for the same period last year.
Debt comes down significantly
TripAdvisor has recorded a decline in total debt over the last one year. It stood at $96 million as on Sep. 30, 2016, down 66.67 percent or $192 million from $288 million on Sep. 30, 2015. Total debt was 4.22 percent of total assets as on Sep. 30, 2016, compared with 13.10 percent on Sep. 30, 2015. Debt to equity ratio was at 0.06 as on Sep. 30, 2016, down from 0.22 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
