NEWTON, MA, February 8, 2012 -- TripAdvisor, Inc. (NASDAQ: TRIP) today announced financial results for the fourth quarter and the year ended December 31, 2011.
• Fourth quarter 2011 revenues were $137.8 million, a 30% increase over fourth quarter 2010; full year 2011 revenues were $637.1 million, a 31% increase over full year 2010
• Fourth quarter 2011 GAAP net income was $22.0 million, a 19% increase over fourth quarter 2010;full year 2011 GAAP net income was $177.7 million, a 28% increase over full year 2010
• Fourth quarter 2011 GAAP earnings per share (EPS) was $0.16 per diluted share compared to $0.14 for the fourth quarter 2010; full year 2011 GAAP EPS was $1.32 per diluted share compared to $1.04 per diluted share for the full year 2010
• Fourth quarter 2011 Adjusted EBITDA increased 20% over fourth quarter 2010 to $55.1 million, or 40% of revenue; full year 2011 Adjusted EBITDA increased 24% over full year 2010 to $322.9 million, or 51% of revenue
• Full year 2011 free cash flow was $196.6 million, a 10% increase over full year 2010
“The fourth quarter capped an exciting end to a great year for TripAdvisor, as we grew our valuable user and content base, extended our platform and product offerings, and completed our spin-off from Expedia”, said Steve Kaufer, CEO of TripAdvisor. “In 2012 we expect to build upon our success and continue to drive shareholder value making the necessary investments to accelerate growth and profitability.”
Discussion of Fourth Quarter and Full Year 2011 Results
Revenues for the fourth quarter of 2011 were $137.8 million, an increase of $31.5 million, or 30%, compared to the fourth quarter of 2010. Revenues for the year ended December 31, 2011 were $637.1 million, an increase of $152.4 million, or 31%, compared to the year ended December 31, 2010.
• Click-based advertising – Revenues from click-based advertising totaled $99.8 million for the fourth quarter of 2011, an increase of 24% compared to the fourth quarter of 2010. Click-based advertising revenue represented 72% of total revenue in the fourth quarter of 2011, compared to 76% in the fourth quarter of 2010. Revenues from click-based advertising totaled $500.0 million for the year ended December 31, 2011, an increase of 30% compared to the year ended December 31, 2010. Click-based advertising revenue represented 79% of total revenue for the year ended December 31, 2011, compared to 79% of revenue for the year ended December 31, 2010.
• Display-based advertising – Revenues from display-based advertising totaled $22.9 million for the fourth quarter of 2011, an increase of 26% compared to the fourth quarter of 2010. Displaybased advertising revenue represented 17% of total revenue in the fourth quarter of 2011, compared to 17% in the fourth quarter of 2010. Revenues from display-based advertising totaled $85.7 million for the year ended December 31, 2011, an increase of 19% compared to the year ended December 31, 2010. Display-based advertising revenues represented 13% of total revenue for the year ended December 31, 2011, compared to 15% in the year ended December 31, 2010.
• Subscription and other – Revenues from subscription and other totaled $15.1 million for the fourth quarter of 2011, an increase of 101%, compared to the fourth quarter of 2010. Subscription and other revenue represented 11% of total revenue in the fourth quarter of 2011, compared to 7% in the fourth quarter of 2010. Revenues from subscription and other totaled $51.4 million for the year ended December 31, 2011, an increase of 76% compared to the year ended December 31, 2010. Subscription and other revenues represented 8% of total revenue for the year ended December 31, 2011, compared to 6% for the year ended December 31, 2010.
For the fourth quarter of 2011, revenues from the U.S. totaled $72.1 million, and represented 52% of total revenue. Revenues from the U.K. totaled $19.4 million, and represented 14% of total revenue for the fourth quarter of 2011. Revenues from the rest of the world totaled $46.3 million, and represented 34% of total revenue for the fourth quarter of 2011. For the year ended December 31, 2011, revenues from the U.S. totaled $348.1 million, and represented 55% of total revenue. Revenues from the U.K. totaled $99.7 million, and represented 15% of total revenue for the year ended December 31, 2011. Revenues from the rest of the world totaled $189.3 million, and represented 30% of total revenue for the year ended December 31, 2011. Click-based advertising revenue by geography is measured by the point-of-sale on which the transaction occurs. Related-party revenues from Expedia totaled $37.5 million for the fourth quarter of 2011, an increase of $1.0 million, or 3%, compared to the fourth quarter of 2010. Related-party revenues from Expedia totaled $211.0 million for the year ended December 31, 2011, an increase of $39.9 million, or 23%, compared to the year ended December 31, 2010.
GAAP net income for the fourth quarter of 2011 was $22.0 million, or $0.16 per diluted share, compared to GAAP net income of $18.4 million, or $0.14 per diluted share, for the fourth quarter of 2010. GAAP net income for the year ended December 31, 2011 was up 28% to $177.7 million, or $1.32 per diluted share, compared to GAAP net income of $138.8 million, or $1.04 per diluted share, for the year ended December 31, 2010. For the fourth quarter and year ended December 31, 2010, we computed diluted earnings per share using the number of shares of common stock and Class B common stock outstanding immediately following the spin-off from Expedia, as no TripAdvisor equity awards were outstanding prior to the spin-off.
Adjusted EBITDA for the fourth quarter of 2011 was $55.1 million, and Adjusted EBITDA margin was 40%, compared to Adjusted EBITDA of $46.0 million and Adjusted EBITDA margin of 43% for the fourth quarter of 2010. Adjusted EBITDA and Adjusted EBITDA margin for the year ended December 31, 2011 was $322.9 million and 51% of revenue, compared to $261.0 million and 54% of revenue for the year ended December 31, 2010.
Other Fourth Quarter 2011 and Recent Business Highlights
• TripAdvisor began trading as an independent public company on The NASDAQ Global Select Market on December 21, 2011, under the ticker symbol "TRIP," following the completion of its spin-off from Expedia, Inc.
• TripAdvisor has personalized the trip planning experience for more than 85 million Facebook users, receiving more than 1.5 billion travel “pins” as of December 31, 2011. TripAdvisor users who are also Facebook users are approximately 27% more engaged in TripAdvisor site usage and are twice as likely to contribute content than the average TripAdvisor user.
• TripAdvisor reached 13 million total downloads of mobile apps and 16 million unique visitors per month via mobile devices as of December 31, 2011. TripAdvisor also launched 20 free mobile City Guides for Android and iOS, offering access to TripAdvisor traveler reviews on hotels, restaurants and attractions, as well as suggested itineraries and offline-accessible interactive walking tours.
• TripAdvisor signed new partnerships in Brazil, Russia, India and China. Pursuant to the partnership agreements, these companies are displaying TripAdvisor ratings and reviews on their sites to help travelers make more informed travel planning decisions.
• TripAdvisor announced partnership deals with several leading vacation rental websites around the globe. Once the properties contemplated by these agreements are integrated, TripAdvisor expects that its total vacation rental listings inventory will exceed 200,000 properties.
• TripAdvisor appointed Julie M.B. Bradley as Chief Financial Officer. Ms. Bradley oversees corporate finance, investor relations, accounting, corporate development, human resources and real estate.
