After Wednesday's close, TripAdvisor reported fourth-quarter 2016 Non-GAAP earnings of $0.16 per share, $0.15 below the consensus estimate. Revenue rose 2.3%, year to year, to $316 million versus the estimate of $327.2 million.
Hotel revenue fell 3% to $252 million, while non-hotel revenue increased 31% to $64 million. Hotel revenue was 80% of total company revenue.
Revenue per hotel shopper (RPS) was down 7% to $0.43, but that was an improvement from the first quarter of 2016, when RPS was down 21%. Management is encouraged by the trend and believes it indicates the company is on the right track with its instant booking technology and site improvements.
Non-GAAP net income fell 65% to $23 million. Cash flow from operating activities and free cash flow were down 41% and 52%, respectively.
Cost of sales continues to soar. During the quarter, sales and marketing expenses increased 19% to $172 million.
For the full year, total revenue fell 1% to $1.48 billion. Hotel revenue was down 6% to $1.19 billion and non-hotel revenue was up 27% to $290 million. Cash flow from operating activities and free cash flow declined 23% and 19%, respectively.