Tripadvisor today announced financial results for the first quarter ended March 31, 2021.
Consumer demand - January, February, and March 2021 monthly unique users on Tripadvisor-branded websites improved sequentially and were approximately 53%, 56%, and 58%, respectively, of 2019’s comparable period (pre-COVID-19 timeframe), driven by vaccine progress and leisure travel’s improving recovery, particularly in the U.S. We note that U.S. monthly unique users in March 2021 approached nearly 80% of 2019 levels while traffic outside the U.S. was approximately half of 2019 levels for the same period.
Revenue - Q1 2021 total revenue of $123 million declined 56% year-over-year and was approximately 33% of 2019’s comparable period (pre-COVID-19 timeframe), which is roughly in line with Q4 2020 performance. Monthly revenue performance improved sequentially throughout the quarter, driven primarily by improved leisure travel demand in the U.S. Improvements were partially offset by more muted recovery trends outside of the U.S., most notably Europe.
Cost performance – Total operating expenses were $207 million, down 32% year-over-year.
Profitability - Our consolidated net loss of $80 million was slightly higher in Q1 2021 as compared to Q4 2020, driven by lower income tax benefits in Q1 2021. Our Q1 2021 adjusted EBITDA was negative $26 million, slightly better than Q4 2020 driven by a sequential increase in revenue. The Company continues to expect the majority of its fixed cost savings will persist in 2021 and, as such, the business is positioned for operating leverage as leisure travel demand and revenue improve.
Cash & Liquidity - As of March 31, 2021, Tripadvisor had $674 million of cash and cash equivalents, an increase of $256 million from December 31, 2020, with nearly $500 million in available borrowing capacity under our revolving credit facility.
“Q1 demonstrated consumers want to get back out there and travel,” said Chief Executive Officer Steve Kaufer. “Traffic and revenue trends improved as vaccination rates climbed, particularly in the U.S. market. While the recovery remains uneven globally, there is light ahead. We think leisure travel is poised for a potential inflection later this year as the recovery broadens.”
Kaufer continued, “We believe we are advantageously positioned for the rebound and beyond. We remain focused on serving customers, leveraging our competitive advantages, and building our business to deliver long-term, diverse growth.”
Chief Financial Officer Ernst Teunissen added, “In Q1, we continued to execute well on factors within our control. We maintained prudent cost discipline, we further fortified our balance sheet, and we leaned into strategic areas with growth potential. We believe we have positioned the business for enhanced operating leverage and long-term shareholder value creation.”
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