Hotel revenues were bleak for hospitality firm TripAdvisor as revenues fell and expansion expenses rose in the most recent quarter.
Shares closed 18% lower since the beginning of the year through Wednesday.
The company’s hotel revenues, which represent 80% of its top line, dipped 7.9% year on year in the latest quarter to $316 million.
In contrast, expenses shot up, as the company poured resources into marketing to expand its business. Its marketing budget rose 5.2% year on year.
According to chief executive Steve Kaufer, these initiatives are expected to pull up the business as it forays into mobile offerings and increases bookable supply. He added that these are long term investments for the company.
In the latest quarter, profit declined around 70% to $34 million from $58 million compared to the same period last year. Adjusted profit per share also fell to 38 cents from 54 cents.
Similarly, revenue slid 3.5% to $391 million, with the company unable to meet market expectations of around $403 million.