Tripadvisor will not sell, the company said Wednesday in a release reporting its first-quarter results ahead of its scheduled earnings call.
"The special committee has determined that at this time, there is no transaction with a third party that is in the best interests of the company and its stockholders," Tripadvisor said.
The decision follows Tripadvisor's February announcement that it had formed a committee and hired an advisor "to evaluate any proposals that may be brought forward for a potential transaction."
Days before, Liberty Tripadvisor Holdings, which is responsible for a majority voting stake of the company, gave its board approval on Feb. 9 to engage in discussions "with respect to a potential transaction."
While Tripadvisor won't sell now, it stopped short of saying the company isn't for sale, noting the special committee will still evaluate proposed alternatives if deemed appropriate. Tripadvisor said it doesn't plan to share further updates unless something is "definitive."
Tripadvisor said it would not be taking questions on the topic during the earnings call.
Tripadvisor reports slight Q1 growth
Tripadvisor CEO Matt Goldberg said the company's first quarter results provide a "solid start" to 2024.
"We believe that our unique position in travel and experiences, coupled with positive signals we are seeing as a result of our segment strategies, will drive continued momentum across Tripadvisor Group," Goldberg said in the release.
Tripadvisor posted $395 million in total revenue for its first quarter of 2024, a 6% bump year over year. The company's adjusted EBITDA was $47 million.
Tripadvisor reported a net loss of $59 million, which included the net impact of a $42 million incremental income tax expense, which had been a result of an IRS audit settlement.
"Our disciplined approach to balancing growth and investment was reflected in our first-quarter results," CFO Mike Noonan said. "We remain pleased with our operational execution, which is driving solid financial outcomes, and remain focused on segment priorities in support of long-term growth and profitability."
Tripadvisor saw revenue shifts across its three segments: the Tripadvisor brand, Viator and TheFork.
Viator had a 23% bump in revenue year over year. Meanwhile, revenue dipped 2% for the Tripadvisor brand and rose 17% at TheFork.
Viator also saw year-over-year growth of around 15% in gross bookings, valued at approximately $1 billion.
Source: Phocuswire