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$TRIP 1Q15 10-Q: At 1Q15-end, total current assets were $894MM vs. $747MM at 4Q14-end. Total assets were $2.09Bil vs. $1.96Bil at 4Q14-end. Total current liabilities were $452MM vs. $381MM at 4Q14-end. Cash and cash equivalents were $505MM vs. $455MM at 4Q14-end.
ReviewPush, which provides online review management services, has entered into a licensing partnership with TripAdvisor. This partnership helps ReviewPush to integrate $TRIP's reviews into its platform, which would help its customers to manage all their reviews at one place.
$TRIP's 3Q advertising spend was $42MM, which was the primary reason for opex growth YoY. So far this year, total ad spend is $58MM out of $70-80MM earmarked for 2017. The company is yet to reap benefits from its ad campaign, but believes it will improve its top line. TV ad campaign would be a bigger component of direct marketing budget for 2018.
The silver lining in $TRIP's 3Q results was its growing user base. Average monthly unique visitors surged 17% to 455MM. User reviews and opinions rose 32% YoY to 570MM and revenue per hotel shopper growth was negative 11%. Even though the user base continues to grow, it remains an uphill task for $TRIP to monetize audience growth to its top line.
Fall in hotel revenues makes $TRIP's 3Q results unmemorable. Revenue improved 4% to $439MM vs. 3Q16. Sales from hotel segment slipped 3% to $312MM, while its non-hotel business showed an impressive 26% YoY sales growth. It's important to note that hotel segment brought in 71% of total revenues. Free cash flow deficit was $150MM vs. $109MM in 3Q16.
During 2Q17, $TRIP's Non-Hotel segment revenue grew 31% YoY. The company's user reviews grew 39% YoY to 535MM, covering approx. 1.1MM hotels and accommodations, 800,000 vacation rentals, 4.4MM restaurants and 830,000 activities and attractions.
Online travel portal $TRIP reported 8% rise in its 2Q17 revenue to $424MM. However, net income during the quarter fell 21% to $27MM, or $0.19 per share, compared to $34MM, or $0.23 per share during 2Q16. Excluding items, the company earned $0.38 per share. Average monthly unique visitors reached nearly 415MM, up 18% YoY.
$TRIP expects the non-hotel segment in aggregate to be EBITDA positive in 2017 and margins to be robust. The company sees this business as a growth and investment business and expects profitability to come through sooner than expected. In 1Q17, revenue and profits came in better than expected and $TRIP expects efficiencies from this business.
$TRIP said revenue per shopper growth in the US will be driven by instant booking, which had a dilutive effect initially but has now begun to improve. In mobile, $TRIP has seen meaningful growth as users have switched to using mobile apps and the web along with improved revenue per session from users using $TRIP’s mobile app.
In 1Q17, $TRIP's revenue per hotel shopper growth was 2%, up nine percentage points sequentially. The revenue per hotel shopper growth rate improved for the fourth straight quarter and returned to positive YoY growth for the first time since the early days of the instant booking rollout in 2014.
For FY17, $TRIP reiterated its expectation for double-digit consolidated revenue growth as well as double-digit click-based and transaction revenue growth. It also reiterated its expectation of flat to down absolute adjusted EBITDA compared to FY16, now inclusive of its brand advertising investment.
Online travel portal $TRIP posted 6% growth in total revenue to $372MM in 1Q17. However, net income was down to $13MM, or $0.09 per share, compare to $29MM, or $0.20 per share a year ago. Excluding special items, EPS was $0.24. Average monthly unique visitors reached nearly 390MM during the quarter, up 14% YoY.
$TRIP saw instant booking monetization conversion rate improvement in 2016 over the last year. The US instant book conversion rates improved 20% YoY and the company is making improvements here. $TRIP is seeing good trends in this area and this has not been affected by the increased marketing expenditure.