Tripadvisor (NASDAQ:TRIP) stock surged in after hours trade after it reported expectation beating financials for the fourth quarter, with revenue up 47% year-on-year.
Significantly for the online travel portal, its US$354 million fourth-quarter revenue for 2022 was some 106% above pre-Covid comparatives from 2019.
For the whole year, Tripadvisor said revenue had increased 65% from last year to a total of US$1.5 billion.
Shares gained US$1.75 or 7% immediately after the release, to trade at US$26.88.
It highlighted increased consumer demand for travel industry-related services as the driver for revenue growth, thanks to the easing of travel restrictions and the continuing recovery of the travel sector.
Elsewhere, amongst the after-hours announcements. Airbnb (NASDAQ:ABNB) also surprised to the upside buoyed by the travel sector recovery to report its first-ever annual profit.
Whilst revenues were up, Tripadvisor (NASDAQ:TRIP)'s operating expenses, meanwhile, were expectedly higher against the inflationary backdrop, coming in at US$367 million for the quarter and US$1.39 billion for the full year – it spent US$194 million and US$784 million on marketing for the respective periods.
Tripadvisor reported a US$3 million net loss for the fourth quarter, and a profit of US$20 million for the year, narrowing from the prior year comparatives of a loss of US$29 million and a loss of US$148 million. It ended 2022 with around US$1.02 billion in cash, up US$298 million from the start of the year.
“We are pleased with our fourth quarter, which exceeded our expectations and brought to close a strong fiscal 2022 across each of our segments,” chief executive Matt Goldberg said in a statement.
Mike Noonan, Tripadvisor's chief financial officer, added: “We delivered solid year-over-year revenue growth of 65% and witnessed a healthy increase in profit margins.
“Our performance is indicative of our focused execution as we sought to invest in the growth areas of our business while driving operating efficiencies across the company. As we look to 2023 and beyond, we expect to maintain this approach as we pursue opportunities across our company’s portfolio.”