Analyst Note| Dan Wasiolek |
Narrow-moat TripAdvisor’s second-quarter sales rebounded to 56% of 2019 levels, ahead of our 50% estimate and up from 33% three months earlier, as improving vaccination rates expanded the travel recovery to regions like Europe. TripAdvisor’s experiences and dining segment revenue recovered to 56% of prepandemic marks in the quarter versus the 49% reported last quarter, with U.S. experience bookings ahead of 2019 levels in June. Brand hotel platform sales also increased to 62% of 2019 levels, up from 34% in the first quarter, with metasearch revenue nearly recovered in June. EBITDA progressed to $25 million in the quarter (10.6% margin), from negative $74 million last quarter, driven by the demand recovery and a streamlined cost structure.