TripAdvisor got tripped up by big marketing costs, posting Q2 results that fell far short of Wall Street expectations. TripAdvisor's Q2 selling and marketing costs, which include stepped up spending on TV ads in the U.S., France and Australia, surged 53% from the year-earlier quarter to $127 million.
Company CFO Julie Bradley said on a conference call with analysts that TripAdvisor spent $10 million in Q2 on TV ads and will accelerate spending on TV ads this quarter.
TripAdvisor didn't issue a formal outlook, but Bradley said the company is reiterating its full-year 2014 guidance for revenue growth "in the high 20s to low 30s." Said CEO Steve Kaufer on the call: "We will continue investing aggressively in TV through October of this year and expect to expand this channel next year."
TripAdvisor said Q2 revenue surged 31% to $323 million, beating analyst forecasts of $321.8 million.
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