Online travel company TripAdvisor Inc. (TRIP) on Tuesday reported a 29 percent increase in profit for the first quarter on double-digit revenue growth, particularly click-based advertising revenue. Both revenue and adjusted earnings per share beat analysts' estimates.
Separately, TripAdvisor said it has acquired vacation rentals website Niumba.com. Terms of the deal were not disclosed.
Newton, Massachusetts-based TripAdvisor was spun off from online travel company Expedia, Inc. (EXPE) in December 2011 and operates independently of Expedia.
Steve Kaufer, President and CEO of TripAdvisor said, "Our first quarter results are evidence that our underlying fundamentals are extremely healthy. Our traffic growth accelerated, and hotel shoppers, members and valuable content continue to grow at a rapid clip on a global basis."
TripAdvisor's click-based advertising revenue for the quarter grew 24 percent from the year-ago period to $179.4 million and represented 78 percent of total revenue.
Display-based advertising revenue increased 14 percent to $24.6 million and represented 11 percent of total revenue. Revenue from subscription, transaction and other surged 51 percent to $25.9 million. Related-party revenue from Expedia increased 17 percent from last year to $60.51 million.
TripAdvisor's first-quarter net income was $62.30 million or $0.43 per share, up from $48.11 million or $0.35 per share in the previous-year quarter.
Adjusted net income for the quarter was $73.07 million or $0.50 per share, compared to $52.53 million or $0.38 per share in prior-year period. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 25 percent to $229.92 million from $183.72 million in the same period last year, while analysts had a consensus revenue estimate of $223.76 million.
TripAdvisor said that its latest acquisition, Niumba, features more than 230,000 properties globally and brings to TripAdvisor the world's largest collection of Spanish vacation rentals with more than 120,000 properties in Spain.
Niumba will continue to operate as an independent brand and website from its offices in Madrid. The company's listings will remain on Niumba.com and will soon additionally be featured on TripAdvisor and Holiday Lettings.
TRIP closed Tuesday's regular trading session at $55.01, down $0.16 or 0.29 percent on a volume of 2.90 million shares. In after-hours, the stock further declined $1.01 or 1.84 percent to $54.00.
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