On Tuesday, TripAdvisor Inc (NASDAQ:TRIP)’s shares plunged about 19 per cent in premarket trade, a day after the online travel company posted a weak quarterly profit and indicated a slowdown in revenue in the current quarter.

Shares of TripAdvisor were trading at USD 19.17 before the bell and were at their lowest level since August.
Reportedly, currency fluctuations shaved off revenue growth by about 11 percentage points during Q3 compared with a year earlier.

Higher marketing expenses also lowered TripAdvisor’s results, with the company posting an adjusted profit of 28 cents per share for Q3 versus analysts’ average expectations of 38 cents per share.

It is to be noted that travel booking companies in the US are spending heavily on marketing to attract more people towards booking flights and accommodations on their apps and websites.

The company’s selling and marketing costs leapt 58 per cent to USD 234 million during the quarter. The company expects marketing spending in Q4 to yield benefits next year.

The company also flagged its revenue to grow in low-single digits compared with 2019, indicating a modest slowdown from the third quarter.