TripAdvisor (TRIP) shares retreated more than 7% after hours Wednesday as the company reported Q3 non-GAAP net income of $0.58 a share compared with $0.72 a share a year earlier, and that was below the consensus on Capital IQ for $0.62.
Revenue fell to $428 million from $458 million, while the Street was expecting $460.1 million.
Separately, the company said it has formed a strategic partnership with Trip.com Group Limited (TCOM), formerly known as Ctrip.com International Ltd. (CTRP), that includes a joint venture, a content sharing agreement and a governance agreement.
TripAdvisor’s subsidiary TripAdvisor Singapore Pvt. Ltd. has signed a joint venture agreement with Ctrip Investment Holding Ltd., a subsidiary of Trip.com, under which Trip.com will be the majority shareholder of the new joint venture entity which will operate globally as TripAdvisor China. TripAdvisor will own 40% of the joint venture and will contribute a long-term exclusive brand and content license and other assets of its China business.
TripAdvisor and Trip.com have signed global content agreements for the distribution of selected TripAdvisor content on major Trip.com brands, including Trip.com, Ctrip, Skyscanner and Qunar.
Under a governance agreement between both the companies, Trip.com Group will have a nomination right for one TripAdvisor, Inc. board seat after receiving the required approvals of the transaction.