TripAdvisor Reports First Quarter 2013 Financial Results
NEWTON, MA, May 7, 2013 -- TripAdvisor, Inc. (NASDAQ: TRIP), the world's largest travel site, announced financial results for the first quarter ended March 31, 2013.
• Revenue for the first quarter increased to $229.9 million, up 36% quarter-over-quarter and up 25% year over-year.
• Net income for the first quarter increased 86% quarter-over-quarter and increased 29% year-over-year to $62.3 million, or $0.43 per diluted share.
• Non-GAAP net income for the first quarter increased 77% quarter-over-quarter and 39% year-over-year to $73.1 million, or $0.50 per diluted share.
• Adjusted EBITDA for the first quarter increased 70% quarter-over-quarter and 30% year-over-year to $109.3million, or 48% of revenue.
• Cash flow from operations for the first quarter increased 47% year-over-year to $43.7 million, or 19% of revenue; free cash flow for the first quarter increased 54% year-over-year to $34.4 million, or 15% of revenue.
“Our first quarter results are evidence that our underlying fundamentals are extremely healthy,” said Steve Kaufer, President and CEO of TripAdvisor. “Our traffic growth accelerated, and hotel shoppers, members and valuable content continue to grow at a rapid clip on a global basis. Integrating our new metasearch hotel pricing and availability engine has been a wonderful complement to our ongoing strides to make the site more engaging, personalized and social. We look forward to kicking off the busy summer travel season.”
Discussion of First Quarter 2013 Results
Revenue for the first quarter of 2013 was $229.9 million, an increase of $46.2 million, or 25%, compared to the first quarter of 2012.
• Click-based advertising – Revenue from click-based advertising totaled $179.4 million for the first quarter of 2013, an increase of 24% compared to the first quarter of 2012. Click-based advertising revenue represented 78% of total revenue in the first quarter of 2013, compared to 79% in the first quarter of 2012.
• Display-based advertising – Revenue from display-based advertising totaled $24.6 million for the first quarter of 2013, an increase of 14% compared to the first quarter of 2012. Display-based advertising revenue represented 11% of total revenue in the first quarter of 2013, compared to 12% in the first quarter of 2012.
• Subscription, transaction and other – Revenue from subscription, transaction and other totaled $25.9million for the first quarter of 2013, an increase of 51%, compared to the first quarter of 2012. Subscription, transaction and other revenue represented 11% of total revenue in the first quarter of 2013, compared to 9% in the first quarter of 2012.
For the first quarter of 2013, revenue from North America totaled $121.5 million, representing 53% of total revenue. Revenue from the Europe, Middle East and Africa region totaled $71.3 million, representing 31% of total revenue for the first quarter of 2013. Revenue from the Asia-Pacific region totaled $26.9 million, representing 12% of total revenue for the first quarter of 2013. Revenue from the Latin America region totaled $10.2 million, representing 4% of total revenue for the first quarter of 2013. International revenue was 50% of total revenue during the quarter, which was consistent with the fourth quarter of 2012 and up from 48% in the first quarter of 2012. Click-based advertising revenue by geography is based on the geographic location of our websites.
Related-party revenue from Expedia totaled $60.5 million for the first quarter of 2013, an increase of $8.9million, or 17%, compared to the first quarter of 2012.
GAAP net income for the first quarter of 2013 was $62.3 million, or $0.43 per diluted share, compared to GAAP net income of $48.1 million, or $0.35 per diluted share, for the first quarter of 2012.
Non-GAAP net income for the first quarter of 2013 was $73.1 million, or $0.50 per diluted share, compared to non-GAAP net income of $52.5 million, or $0.38 per diluted share, for the first quarter of 2012.
Adjusted EBITDA for the first quarter of 2013 was $109.3 million, and Adjusted EBITDA margin was 47.6%, compared to Adjusted EBITDA of $84.2 million and Adjusted EBITDA margin of 45.8% for the first quarter of 2012.
Cash flow from operating activities for the first quarter of 2013 was $43.7 million, an increase of $13.9 million, or 47%, compared to the first quarter of 2012.
As of March 31, 2013, cash and cash equivalents and short and long-term marketable securities were $597.0 million, up $388.4 million since March 31, 2012 and up $11.3 million since December 31, 2012.
As of March 31, 2013, TripAdvisor had 1,632 employees, up from 1,311 employees at March 31, 2012 and 1,575at December 31, 2012.
In the Company’s earnings release and the related conference call or webcast, the Company may use or discuss non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and free cash flow, which are non-GAAP financial measures as defined by the Securities and Exchange Commission. Please refer to the section below entitled “Use of non-GAAP Financial Measures” for definitions of these nonGAAP financial measures and the financial schedules attached to this press release for reconciliation of nonGAAP financial measures to the most directly comparable GAAP financial measure.
Other First Quarter 2013 and Recent Business Highlights
• TripAdvisor’s travel community averaged more than 200 million monthly unique visitors for the quarter ended March 31, 2013, according to Google Analytics. At approximately 11% of the world’s monthly unique visitors in online travel, according to comScore, TripAdvisor remains the largest travel website in the world.
• TripAdvisor user-generated content continued to grow at a rate of more than 60 contributions per minute and reached the 100 million review and opinion milestone, covering more than 700,000 hotels and accommodations, 1.1 million restaurants and 260,000 attractions in more than 125,000 destinations throughout the world. TripAdvisor syndicates its content to more than 600 travel-related partners and TripAdvisor widgets can be found on more than 75,000 sites around the globe.
• TripAdvisor averaged more than 33 million monthly Facebook visitors to its website and Facebook app during the quarter, and remains the #1 travel app on Facebook, according to AppData, and nearly doubled its marketable members year-over-year to 48 million according to company logs.
• Downloads of TripAdvisor, City Guides and SeatGuru mobile apps doubled year-over-year to nearly 36million and TripAdvisor’s average unique monthly visitors via smartphone and tablet devices grew 300% year-over-year to more than 62 million for the quarter ended March 31, 2013, according to company logs.
• TripAdvisor entered an exclusive agreement with Samsung to pre-install TripAdvisor’s market-leading mobile application onto the new Samsung GALAXY S 4. In addition to pre-installing TripAdvisor’s industry-leading app, Samsung is using TripAdvisor’s user content to power its Travel Widget, Lock Screen Slideshow and City Information in Samsung Story Album.
• TripAdvisor launched Delayed Ad Call functionality for its Display-based advertising product, a first for the travel advertising industry, which charges customers only when the ad unit is in a users’ view. This innovation is designed to increase clients’ confidence in the value of Display Advertising and provide a more true representation of their media investment.
• TripAdvisor Vacation Rentals’ FlipKey and Holiday Lettings brands introduced a free-to-list option for property owners, driving accelerated traffic, listings and inquiries during the first quarter.
• TripAdvisor acquired TinyPost, a site that lets you write over photos and turn them into stories. Subsequent to the end of the quarter, TripAdvisor acquired leading travel private sale site, Jetsetter, cruise research and planning site, CruiseWise, and leading Spanish vacation rental site, Niumba, complementing TripAdvisor’s existing brands in those areas of the travel ecosystem.