TripAdvisor Inc. (NASDAQ: TRIP) saw its stock plunge by over 5% in after-hours trading on Tuesday, despite reporting better-than-expected earnings for the third quarter of 2024. The travel company's revenue for the quarter fell short of Wall Street estimates, raising concerns about its growth prospects amid ongoing competitive pressures.

For the three months ended September 30, TripAdvisor posted adjusted earnings per share (EPS) of $0.50, surpassing the consensus analyst estimate of $0.44. However, the company's revenue of $532 million was slightly lower than the expected $527.9 million, representing a 0.2% year-over-year decline.

While TripAdvisor's earnings performance exceeded expectations, the revenue miss appeared to overshadow the positive earnings surprise, triggering a sell-off in the company's shares. Analysts cited competitive challenges and concerns over the company's ability to drive top-line growth as potential factors behind the stock's decline.