TripAdvisor hotel revenue down by 9%, adjusted EBITDA up by 17%
08/08/2019|2:40:49 PM|TripAdvisor

TripAdvisor announced financial results for the second quarter ended June 30, 2019.

“We delivered strong second quarter and first half 2019 profitability amidst ongoing investments aimed at future growth”, said Chief Executive Officer Steve Kaufer. “We are operating with increased customer focus, and we are laying the foundation to deepen customer relationships with our platform and monetize our significant influence in travel.”

Second Quarter 2019 Operational and Financial Highlights

* Total Revenue was $422 million, a 3% decrease year-over-year. We estimate that excluding changes in foreign currency Total Revenue growth was approximately flat year-over-year.

* GAAP Net Income grew 6% to $34 million, while Non-GAAP Net Income grew 10% to $64 million. GAAP Net Income and Non-GAAP Net Income were impacted by a cumulative income tax expense of $15 million recorded during the three months ended June 30, 2019. We recorded this expense in response to a June 7, 2019, three-judge panel opinion issued from the Ninth Circuit Court of Appeals in Altera Corp. v. Commissioner, which reversed a United States Tax Court decision regarding the treatment of share-based compensation expense in a cost sharing arrangement.

* Total Adjusted EBITDA grew 17% to $128 million, and Total Adjusted EBITDA margin increased by 5% year-over-year to 30%. We estimate that excluding year-over-year changes in foreign currency Total Adjusted EBITDA grew approximately 22%.

* Hotels, Media & Platform segment revenue was $254 million, a 7% decrease year-over-year. Hotels, Media & Platform segment Adjusted EBITDA grew 27% to $108 million, and Hotels, Media & Platform segment Adjusted EBITDA margin improved to 43%, a 12% increase compared to Q2 2018, primarily due to increased efficiency of direct selling and marketing expenses. We estimate that excluding year-over-year changes in foreign currency Total Hotels, Media & Platform Segment Adjusted EBITDA grew approximately 31%.

* Experiences & Dining segment revenue grew 28% to $125 million, while Experiences & Dining segment Adjusted EBITDA reflected increased strategic investments to drive long-term growth initiatives. We estimate that excluding year-over-year changes in foreign currency Total Experiences & Dining Segment Revenue grew approximately 33%.

* Other revenue decreased 32% to $43 million, primarily driven by the elimination of some marginal and unprofitable revenue within some non-TripAdvisor branded offerings, which reduced revenue and increased profitability.

* Cash and cash equivalents and short-term marketable securities was $966 million and there was no outstanding debt as of June 30, 2019.

* Cash flow from operating activities for the three months ended June 30, 2019, was $181 million, a 3% decrease year-over-year, reflecting the timing of payments and collections year-over-year. Free cash flow for the three months ended June 30, 2019 was $160 million, a 6% decrease year-over-year reflecting the timing of payments and collections, in addition to increased capital expenditures year-over-year.

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