5 Things Guru Bob Peck Is Saying About TripAdvisor

On Thursday, SunTrust's Bob Peck shared five key highlights from Tripadvisor Inc TRIP's recent fourth quarter report.

1. Organic revenue (ex. acquisitions) grew approximately 26 percent in the quarter and 28 percent for the entire fiscal year.

2. The company's revenue guidance of "high 20s" percent growth year over year is slightly ahead of the Street's expectations, and includes a full year from the La Fourchette and Viator acquisitions, as well as continued organic growth of approximately 22 percent.

3. A disclosure on profitability showcases core margins of approximately 42 percent, which has been declining in each of the last two years, and will continue into 2015 given a year over year EBITDA growth guidance of mid-to high-teens.

4. Hotel shopper growth improved to 23 percent in the quarter while revenue per shopper rose 3 percent.

5. A model transition to Instant Booking is ongoing, and the company's strategy to position itself in the marketplace will take time to play out, but the transition process and corresponding investments will weigh on shares.

Shares remain Neutral-rated with an unchanged $85 price target.