TripAdvisor's third-quarter profit fell because of a 58% jump in costs and expenses that weighed on a 39% boost in sales to $354 million.
The company's click-based revenue was below forecasts.
However, TripAdvisor's recent acquisition of tours-and-activities platform Viator helped earnings, according to a conference call (see Seeking Alpha's transcript).
TripAdvisor earnings: The company posted a net income of $54 million, or 37 cents a share, in the three months ending in September.
That was lower than the $68 million, or 47 cents a share, of the same period a year earlier.
Analysts had been hoping for 50 cents a share or more, according to FactSet.
Analysts at investment bank Cowen & Company believe that TripAdvisor's switch to an instant booking model may mean a short term shortfall in revenue, as suppliers have to be coaxed into trying its auction marketplace.
Analysts at investment bank Pacific Crest Securities downgraded their ranking of TripAdvisor's stock from "outperform" to "perform."
The Wall Street Journal's summary was this:
"Like Priceline and its other peers, the portal has been increasing spending in advertising along with offering discounts and loyalty programs to confront pressure from a growing set of players, from referral sites that search multiple sites to startups that offer unpublished discounts and stays in apartments and spare rooms."