TripAdvisor Is Down Over 30% After Q1 Results - What's Going On?
Portfolio Pulse from Nabaparna Bhattacharya
TripAdvisor, Inc. (NASDAQ:TRIP) shares plummeted over 30% in premarket trading following its Q1 results announcement. Despite beating earnings and revenue expectations with a 6% year-over-year revenue increase and a 42% jump in adjusted EBITDA, the company faces a significant income tax expense of $42 million for Q1 2024 and anticipates a net operating cash outflow of $110 to $120 million in Q2 2024 due to a tax settlement. Additionally, TripAdvisor's special committee sees no potential transaction with a third party, despite previous discussions.
May 08, 2024 | 1:11 pm
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TripAdvisor's stock plummeted over 30% premarket after reporting Q1 results that included a significant income tax expense and an anticipated large net operating cash outflow in Q2 2024, despite beating earnings and revenue expectations.
The sharp decline in TripAdvisor's stock price is directly attributed to the financial results and forecasts disclosed in the Q1 report. Despite outperforming earnings and revenue expectations, the significant income tax expense for Q1 2024 and the anticipated substantial net operating cash outflow for Q2 2024 have negatively impacted investor sentiment. Additionally, the announcement that no transaction with a third party is expected further contributes to the negative outlook.
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