Tripadvisor Q3 revenue up across all segments, most sharply for Viator

The financial results out of Tripadvisor continue to tell a
similar story each quarter – Viator is showing the most growth, and its revenue
is now inching toward surpassing revenue from the Tripadvisor Core, which
includes hotel metasearch, subscriptions and display ads, Tripadvisor
experiences and dining. 

In the period from July through September this year, Viator
revenue came in at $245 million, up 41% year over year, and it accounted for 46% of
Tripadvisor’s total revenue in Q3 of $533 million. Total revenue for the
company was up 16% year over year.

Tripadvisor Core, meanwhile, had revenue of $290 million in
the quarter – up just 2% year over year. In a statement regarding the results,
the company said, within Core, branded hotels revenue was $181 million, a decline
of 4% year over year. “Within branded hotels, growth in the hotel B2B offering
was offset by declines in the hotel meta offering. Hotel meta performance was
primarily a result of declines in Europe, and lesser so in the [United States], which more
than offset growth in Rest of World.”

Net income in Q3 was $27 million and adjusted EBITDA was
$127 million or 24% of revenue, which the company said exceeded expectations.

“We are pleased to deliver another quarter of healthy
growth, driven by our efforts to capitalize on our leadership position in the
large and growing experiences category,” said Matt Goldberg, Tripadvisor CEO.

“Our teams delivered results that exceeded expectations
financially while continuing to execute more efficiently and effectively in
pursuit of our strategic goals.” 

Tripadvisor’s selling and marketing costs were $272 million
in Q3, up 16% year over year, and represented 51% of revenue, similar to the
figure from Q3 2022.

Tripadvisor has been working to integrate generative artificial intelligence into
its platform. The company’s latest update came two weeks ago with the launch
of AI-powered review summaries. And earlier in October Tripadvisor, along
with Booking.com, Expedia Group, Amazon and other non-travel sites, announced a
coalition
that will work to bring more trust and authenticity to online reviews.

*This story will be updated after Tripadvisor’s call with analysts Tuesday morning.