TripAdvisor (TRIP) stock plummeted 7.12% in the pre-market trading session on Thursday, following the release of its fourth-quarter and full-year 2024 earnings results.
The travel guidance and booking platform reported a 5.4% year-over-year increase in Q4 revenue to $411 million, exceeding analysts' estimates of $400 million. However, the company's non-GAAP earnings of $0.30 per diluted share fell short of expectations, declining from $0.38 a year earlier and missing the consensus estimate of $0.21.
While TripAdvisor's revenue growth indicates a continued recovery in the travel industry, the disappointing earnings results suggest that the company may be facing challenges in managing costs or facing increased competition, which could be weighing on investor sentiment and driving the stock's sharp decline.