By Dave Sebastian
Tripadvisor Inc. swung to a loss for the second quarter as revenue fell 86% amid the steep decline in tourism due to the Covid-19 pandemic.
The travel site on Thursday posted net loss of $153 million, or $1.14 a share, compared with a profit of $34 million, or 24 cents a share, in the comparable quarter last year. Adjusted losses were 76 cents a share.
Analysts polled by FactSet were expecting losses of 82 cents a share, or 60 cents a share on an adjusted basis.
Revenue was $59 million, down from $422 million in the year-ago period. Analysts were looking for $52.4 million. It previously said it expected little to no revenue.
The company expects revenue to improve in the third quarter from the second quarter, though still meaningfully lower than the year-ago period, Steve Kaufer, co-founder and chief executive, and Ernst Teunissen, chief financial officer, said in a letter to shareholders.
"We are encouraged that consumer travel demand trends have been gradually improving since the April nadir," Mr. Kaufer said. "Travel's recovery path will likely be uneven by geography and by sector as businesses and borders reopen and consumer confidence in their own health and safety is restored."
The company lost $74 million in adjusted earnings before interest, taxes, depreciation and amortization, narrower than the $85 million loss it had expected.
Tripadvisor said it had $698 million in cash and cash equivalents as of June 30 and $700 million in outstanding borrowings from its revolving credit facility. It said it expects to receive a cash refund of federal income taxes in the second or third quarter of 2021 as a result of the Cares Act, which Congress passed in March for Covid-19 relief.
The company has sold eight travel websites to the travel-marketing startup Hopjump as it reorganizes itself. It has also laid off about a quarter of its workforce.
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