Author: Buynholdisdead Date: 05/17/2014
TripAdvisor (Trip)
Price: $82.16
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Reported May 6th 4:30pm
Today the price is $82.16: The PE ratio is 58.09 The P/S is 12.04. The stock went up $2.62 the day after the report.
Fourth Quarter and Full Year 2011 Financial Results
February 8,2012 earnings highlights:
** Revenue was $137,798 million
** TTM Revenue was $637,063 million or $4.72 per share
** Quarterly Related-party revenue from Expedia = $37.5 million
** Earnings were $0.16
** TTM earnings were $1.32
**Gross Profits were $135 million
** YoY Gross Profits were $626 million
** Quarterly Gross margins 98%: Operating margins 24%
**YOY Gross margins 98% : Operating margins 42%
** Diluted share count 134,865,250
** Cash $183.5 million: debt $46.7 million
**Free Cash Flow Quarterly $20.9 million
** YoY Free Cash Flow $196.6 million
First Quarter 2012 Financial Results
May 1st, 2012 earnings highlights:
** Revenue was $183.7 million
** TTM Revenue
** Quarterly Related-party revenue from Expedia = $51.6 million
** Earnings were $0.35
** TTM earnings were
**Gross Profits were $180.9 million
** YoY Gross Profits
** Quarterly Gross margins 99%: Operating margins 40%
**YOY Gross margins: Operating margins
** Diluted share count 136,157,675
** Cash $208.6 million: debt $44.6 million
**Free Cash Flow Quarterly $22.4 million
** YoY Free Cash Flow
**Trading range Low $30.12 High $37.89
**P/E ratio range
**P/S range
Second Quarter 2012 Financial Results
July 24th, 2012 earnings highlights:
** Revenue was $197 million
** TTM Revenue
** Quarterly Related-party revenue from Expedia = $55.7 million
** Earnings were $0.37
** TTM earnings were
**Gross Profits were $194.2 million
** YoY Gross Profits
** Quarterly Gross margins 99%: Operating margins 42%
**YOY Gross margins: Operating margins
** Diluted share count 141,736,894
** Cash $478 million: debt $54.4 million
**Free Cash Flow Quarterly $55.8 million
** YoY Free Cash Flow
**Trading range Low $39.40 High $47.81
**P/E ratio range
**P/S range
Third Quarter 2012 Financial Results
November 1st, 2012 earnings highlights:
** Revenue was $212.7 million
** TTM Revenue
** Quarterly Related-party revenue from Expedia = $56.9 million
** Earnings were $0.41
** TTM earnings were
**Gross Profits were $209.8 million
** YoY Gross Profits
** Quarterly Gross margins 99%: Operating margins 43%
**YOY Gross margins: Operating margins
** Diluted share count 143,656,985
** Cash $548.4 million: debt $64.5 million
**Free Cash Flow Quarterly $69.1 million
** YoY Free Cash Flow
**Trading range Low $28.63 High $39.00
**P/E ratio range
**P/S range
Fourth Quarter 2012 Financial Results
February 13, 2013 earnings highlights:
** Revenue was $169.4 million up 23% from 137.8 million
** TTM Revenue $ 763 million up 20% from $637.1 million
** Quarterly Related-party revenue from Expedia = $39.5 million
** Earnings were $0.23 up 44% from $.16
** TTM earnings were $1.37 up 4% from $1.32
**Gross Profits were $166 million up 23% from 135 million
** YoY Gross Profits were $ 750.9 million up 20% from $626.2 million
** Quarterly Gross margins 98%: Operating margins 28%
**YOY Gross margins: 98% Operating margins 39%
** Diluted share count 143,813,851
** Cash $486.5 million: debt $72.1 million
**Free Cash Flow Quarterly $62.4 million up 197% from $21 million
** YoY Free Cash Flow 209.8 million up 7% from $196.6 million
**Trading range Low $32.50 High $49.35
**P/E ratio range 23.37 to 36.02
**P/S range 6.13 to 9.30
First Quarter 2013 Financial Results
May 7th, 2013 earnings highlights:
** Revenue was $229.9 million up 36% from 169.4 million
** TTM Revenue $ 809.2 million up 23% from $657.3 million
** Quarterly Related-party revenue from Expedia = $60,511 million
** Earnings were $0.43 up 23% from $.35
** TTM earnings were $1.45 up 10% from $1.32
**Gross Profits were $226.3 million up 25% from 181 million
** YoY Gross Profits were $ 796.2 million up 21% from $660.2 million
** Quarterly Gross margins 98%: Operating margins 38%
**YOY Gross margins: 98% Operating margins 38%
** Diluted share count 144,655,240
** Cash $401.1 million: debt $61.3 million
**Free Cash Flow Quarterly $34.4 million up 54% from $22.4 million
** YoY Free Cash Flow 221.8 million up 30% from $170.7 million
**Trading range Low $42.04 High $56.80
**P/E ratio range 28.99 to 39.17
**P/S range 7.52 to 10.15
Second Quarter 2013 Financial Results
July 24th, 2013 earnings highlights:
** Revenue was $246.9 million up 25% from 197 million
** TTM Revenue $ 859.1 million up 25% from $685.1 million
** Quarterly Related-party revenue from Expedia = $54,322 million
** Earnings were $0.46 up 24% from $.37
** TTM earnings were $1.54 up 20% from $1.28
**Gross Profits were $242.7 million up 25% from 194.2 million
** YoY Gross Profits were $ 844.7 million up 23% from $687.9 million
** Quarterly Gross margins 98%: Operating margins 38%
**YOY Gross margins: 98% Operating margins 37%
** Diluted share count 145,664,210
** Cash $396.1 million: debt $64.6 million
**Free Cash Flow Quarterly $75.3 million up 35% from $55.8 million
** YoY Free Cash Flow 241.3 million up 41% from $171.4 million
**Trading range Low $51.72 High $65.41
**P/E ratio range 33.58 to 42.47
**P/S range 8.77 to 11.09
Third Quarter 2013 Financial Results
October 23rd, 2013 earnings highlights:
** Revenue was $255.1 million up 20% from 212.7 million
** TTM Revenue $ 901.5 million up 26% from $717 million
** Quarterly Related-party revenue from Expedia = $56.2 million
** Earnings were $0.38 down 7% from $.41
** TTM earnings were $1.51 up 18% from $1.28
**Gross Profits were $249.9 million up 19% from 209.8 million
** YoY Gross Profits were $ 884.8 million up 26% from $703.5 million
** Quarterly Gross margins 98%: Operating margins 33%
**YOY Gross margins: 98% Operating margins 35%
** Diluted share count 145,454,000
** Cash $432.4 million: debt $66.2 million
**Free Cash Flow Quarterly $129.3 million up 87% from $69.1 million
** YoY Free Cash Flow 301.4 million up 80% from $168.2 million
**Trading range Low $68.11 High $82.19
**P/E ratio range 45.11 to 54.43
**P/S range 10.99 to 13.26
Fourth Quarter 2013 Financial Results
February 11th, 2014 earnings highlights:
** Revenue was $212.7 million up 26% from 169.4 million
** TTM Revenue $ 944.7 million up 24% from $763.1 million
** Quarterly Related-party revenue from Expedia = $46.4 million up from 39.5 million (Analyst thought this would drop when they were spun off from Expedia.)
**Gross Profits were $208.1 million up 25% from 165.9 million
** YoY Gross Profits were $ 926.9 million up 23% from $750.9 million
** Quarterly Gross margins 98%: Operating margins 13%
**YOY Gross margins: 98% Operating margins 31%
** Net Income $20.3 million down 40% from $33.7 million
** EPS were $0.14 down 39% from $.23
** TTM EPS were $1.41 up 3% from $1.37
** Diluted share count 145,280,000 up from 143,814,000
** Cash $482.4 million: debt $68.5 million
**Free Cash Flow Quarterly $55.1 million down 12% from $62.4 million
** YoY Free Cash Flow 294.1 million up 40% from $209.8 million
**Trading range Low $72.57 High $93.13
**P/E ratio range 51.5 to 66.0
**P/S range 11.16 to 14.32
First Quarter 2014 Financial Results
May 6th, 2014 earnings highlights:
** Revenue was $281 million up 22% from 230 million
**Sequentially Revenue was up 32%
** TTM Revenue $996 million up 21% from $824 million
**Gross Profits were $273 million up 21% from 226 million
** YoY Gross Profits were $ 974 million up 22% from $796 million
** Quarterly Gross margins 97%: Operating margins 34%
**YOY Gross margins: 98%
** Net Income $68 million up 10% from $62 million
** EPS were $.47 up 9% from $.43
** TTM EPS were $1.45 flat from $1.45
** Diluted share count 146 million up from 145 million
** Cash $461 million down QoQ from 482.4 million
**Debt $71 million up from $68.5 million
**Stock based compensation was Flat at 14 million YoY
**Free Cash Flow Quarterly was $89 million up 154% from $35 million
**Trading range Low $75.13 to High $109.79
**P/E ratio range 51.81 to 75.72
**P/S range 11…01 to 16.09
This was another strong quarter with revenue up 22% YoY and sequentially up 32%. Gross profits were up 21%, and the Gross margins were 97%, with operating margins of 34%. Those are pretty amazing gross margins but they really are more of a software based company and that is why they have such high Gross Margins, while the operating margins are very good at 34%, what is eating into their operating margins are the Selling and Marketing. Since they are an International company, and in a very competitive market, they need to keep advertising in order to compete. I would suspect that once they get to scale this will come down in relation to revenue. The more people using their Site, planning trips, giving reviews, the bigger they will get and the less Advertising they will have to do. Moving down the Income Statement the Net Income was only up 10% with EPS only up 9%, and TTM EPS flat. They had a stock based compensation of 14 million for the quarter. This was 5% for the quarter so it is incrementally moving down. This is something Tome said needed watching so I will be keeping track of this quarter over quarter. Their Free Cash Flow was up 154% YoY. That is pretty amazing and should show the strength of the company.
Stats:
**Click-based advertising up 16% YoY. Represented 74% of revenue compared to 78% in first quarter of 2013.
**Display-based advertising- up 28% YoY. Represented 11% of total revenue compared to 13% in first quarter of 2013.
**Subscription, transaction and other- up 62% YoY. represented 15% of revenue compared to 11% in the First quarter of 2013.
**Revenue from North America grew 20% representing 52% of total revenue.
**Revenue from Europe, Middle East, and Africa grew 27% representing 32% of total revenue
**Revenue from Asia-Pacific grew 30% representing 12% of total revenue.
**Revenue from Latin America was flat representing 4% of revenue.
**International revenue was 51% of total revenue up from 50% of revenue
** Nearly 260 million Monthly Unique Visitors during quarter ended March 31, 2014 at approximately 10% of the world’s monthly unique visitors in online travel during the quarter according to Google Analytics.
**(All numbers QoQ)TripAdvisor has more than 150 million reviews and opinions, up from 125 million, on more than 4.0 million places to stay, eat, and things to do, up from 3.7 million - including more than 810,000 hotels and accommodations, up from 775,000. They have 600,000 vacation rentals up from 550,000, 2.2 million restaurants up from 2 million, and 420,000 attractions and 140,000 destinations up from 400,000 and 139,000 respectively.
**TripAdvisor launched localized versions of its website in New Zealand, Philippines, South Africa, and Vietnam bringing its total points of sale to 39.
**TripAdvisor app-downloads reached 100 million up from 82 million last quarter, and up more than 170% YoY . According to Distimo, TripAdvisor is not the most popular travel app based on total App store downloads.
**Trip Advisor launched its new hotel booking feature, Instant Booking, on Android and mobile web browsers.
**Trip Advisor added Extended Stay America as well as the Oberoi Group and ITC Hotels, tow of India’s leading hotel brands as new Business Listings customers.
Conclusion:
The last report I did on this I said I was waiting for this company to reach a P/E of 30 before I bought more. I thought this would be a reasonable and great buy for this company. I still think it would be a great buy for this company. I am just not sure that I will see that any time soon. I am mulling on purchasing some more right now because in order to get a P/E of 30, I think we might need to see them make a big mistake, which I don’t see happening, or we go into a recession, which I don’t believe is going to happen. The last time we had a P/E of 30 was the first quarter of 2013. They just bolted on an international restaurant reservation company called La Fourchette, a vacation rental business, Vacation Home Rentals and travel expert network, Tripbod, in England. Their best quarter is usually the Third quarter. They make the majority of their money from advertisements, Click-based advertisement and the majority of that is Hotel shoppers. The Business Listings and Vacation Rental product is something that they just started recently and is growing very fast from a small base. I think in a few years you will hear your friends talking about going on vacations and someone will tell you to just “Trip it”. This will be the Google of the Travel Industry. You want to take a vacation then you will go on TripAdvisor to plan all of your needs. You heard it here first you all need a vacation so just “Trip it”.
Andy
As always any questions, statements, or corrections are greatly appreciated.