On August 6, 2024, Tripadvisor Inc (TRIP, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Tripadvisor, the world's leading travel metasearch company, reported revenue of $497 million, reflecting a year-over-year growth of 1%, but falling short of the analyst estimate of $504.83 million. The company achieved a net income of $24 million, or $0.17 per share, surpassing the estimated earnings per share of $0.15.
Company Overview
Tripadvisor offers a comprehensive platform with 1 billion reviews and information on approximately 8 million accommodations, restaurants, experiences, airlines, and cruises. In 2023, 58% of its revenue came from the core Brand Tripadvisor segment, which includes hotel revenue generated through advertising on its metasearch platform. Viator, its experiences brand, contributed 41% of sales, while TheFork, its dining brand, represented 9% of revenue.
Performance and Challenges
Tripadvisor's Q2 2024 performance was mixed, with revenue growth of 1% year-over-year to $497 million, slightly below the analyst estimate of $504.83 million. The company's net income remained flat at $24 million, or $0.17 per share, compared to the same period last year. Non-GAAP net income was $57 million, or $0.39 per share, reflecting a 16% increase year-over-year.
Despite the revenue growth, the Brand Tripadvisor segment faced a 10% decline in revenue to $250 million. This was offset by strong performances from Viator and TheFork, which saw revenue increases of 13% and 11%, respectively.
Financial Achievements
Tripadvisor's adjusted EBITDA for Q2 2024 was $97 million, or 20% of revenue, up from $90 million in the same period last year. This improvement highlights the company's ability to manage costs and drive profitability across its segments.
“Our second quarter consolidated financial results were in-line with our expectations, which reflects ongoing progress on our segment strategies,” said Chief Executive Officer Matt Goldberg. “This was the first quarter on record that each of our three segments contributed to our profitability.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenue | $497 million | $494 million | 1% |
| Net Income | $24 million | $24 million | 0% |
| Adjusted EBITDA | $97 million | $90 million | 8% |
| Non-GAAP Net Income | $57 million | $49 million | 16% |
| Free Cash Flow | $37 million | $90 million | (59%) |
Balance Sheet and Cash Flow
As of June 30, 2024, Tripadvisor had $1.2 billion in cash and cash equivalents, an increase of $109 million from December 31, 2023. This increase was driven by operating cash flows, partially offset by $25 million in share repurchases. The company's free cash flow for the quarter was $37 million, down from $90 million in the same period last year.
Segment Highlights
Brand Tripadvisor: Revenue was $250 million, a 10% decline year-over-year. Adjusted EBITDA was $84 million, or 34% of revenue.
Viator: Revenue grew 13% year-over-year to $244 million, with a gross bookings value of approximately $1.2 billion. Adjusted EBITDA was $10 million, or 4% of revenue.
TheFork: Revenue increased 11% year-over-year to $42 million. Adjusted EBITDA was $3 million, or 7% of revenue.
Analysis
Tripadvisor's Q2 2024 results reflect a balanced performance with notable strengths in its Viator and TheFork segments, despite challenges in the Brand Tripadvisor segment. The company's ability to maintain profitability and improve adjusted EBITDA margins is a positive indicator for long-term growth. However, the decline in free cash flow and the challenges faced by the core Brand Tripadvisor segment highlight areas that require strategic focus.
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Explore the complete 8-K earnings release (here) from Tripadvisor Inc for further details.
