NEWTON, MA, May 6, 2014 — TripAdvisor, Inc. (NASDAQ: TRIP), the world’s largest travel website*, today announced financial results for the first quarter ended March 31, 2014.
• Total revenue of $281 million, up 32% quarter-over-quarter and up 22% year-over-year.
• Net income of $68 million, or $0.47 per diluted share, up 240% quarter-over-quarter and up 10% year-over-year.
• Non-GAAP net income of $80 million, or $0.54 per diluted share, up 167% quarter-over-quarter and up 10% year-over-year.
• Adjusted EBITDA of $122 million, or 43% of revenue, up 135% quarter-over-quarter and up 12% year-over-year.
• Cash flow from operating activities of $109 million, or 39% of revenue, up 54% quarter-over-quarter and up 148% year-over-year.
• Free cash flow of $89 million, or 32% of revenue, up 62% quarter-over-quarter and up 154% year-over-year.
• TripAdvisor enters the international restaurant reservation space by entering into exclusivity to acquire La Fourchette.
“2014 is off to a great start as we reinforce our leadership position in travel, making the TripAdvisor experience even better for users and partners alike,” said Steve Kaufer, President and CEO of TripAdvisor. “We eclipsed 150 million traveler reviews and opinions on more than four million businesses around the globe and it’s our valuable content that helps users choose their accommodations, pick where to eat, and decide what to do while they are on a trip. With more than a quarter of a billion monthly visitors on our site each month and record user engagement on mobile, we are focused on reducing friction and delighting users throughout all phases of travel planning and trip-taking.”
Discussion of First Quarter 2014 Results
Revenue for the first quarter of 2014 was $281 million, an increase of $51 million, or 22%, compared to the first quarter of 2013.
• Click-based advertising – Revenue from click-based advertising totaled $207 million for the first quarter of 2014, an increase of 16% compared to the first quarter of 2013. Click-based advertising revenue represented 74% of total revenue in the first quarter of 2014, compared to 78% in the first quarter of 2013.
• Display-based advertising – Revenue from display-based advertising totaled $32 million for the first quarter of 2014, an increase of 28% compared to the first quarter of 2013. Display-based advertising revenue represented 11% of total revenue in the first quarter of 2014, compared to 11% in the first quarter of 2013.
• Subscription, transaction and other – Revenue from subscription, transaction and other totaled $42 million for the first quarter of 2014, an increase of 62%, compared to the first quarter of 2013. Subscription, transaction and other revenue represented 15% of total revenue in the first quarter of 2014, compared to 11% in the first quarter of 2013.
For the first quarter of 2014, revenue from North America grew 20% year-over-year to $146 million, representing 52% of total revenue. Revenue from the Europe, Middle East and Africa region grew 27% year-over-year to $90 million, representing 32% of total revenue. Revenue from the Asia-Pacific region grew 30% year-over-year to $35 million, representing 12% of total revenue. Revenue from the Latin America region was flat year-over-year at $10 million, representing 4% of total revenue. International revenue was 51% of total revenue during the first quarter of 2014, up from 50% in the first quarter of 2013. Click-based advertising revenue by geography is based on the geographic location of our websites.
GAAP net income for the first quarter of 2014 was $68 million, or $0.47 per diluted share, compared to GAAP net income of $62 million, or $0.43 per diluted share, for the first quarter of 2013.
Non-GAAP net income for the first quarter of 2014 was $80 million, or 0.54 per diluted share, compared to non-GAAP net income of $73 million, or $0.50 per diluted share, for the first quarter of 2013.
Adjusted EBITDA for the first quarter of 2014 was $122 million, and Adjusted EBITDA margin was 43%, compared to Adjusted EBITDA of $109 million and Adjusted EBITDA margin of 47% for the first quarter of 2013.
Cash flow from operating activities for the first quarter 2014 was $109 million, an increase of $65 million, or 148%, compared to the first quarter of 2013.
As of March 31, 2014, cash and cash equivalents and short and long term marketable securities were $745 million, up $75 million since December 31, 2013.
TripAdvisor had 2,102 employees as of March 31, 2014, up from 1,632 at March 31, 2013 and 2,017 employees at December 31, 2013.
Other First Quarter 2014 and Recent Business Highlights
• TripAdvisor averaged nearly 260 million monthly unique visitors** during the quarter ended March 31, 2014. At approximately 10% of the world’s monthly unique visitors in online travel during the quarter, TripAdvisor remains the largest travel website in the world.*
• TripAdvisor eclipsed 150 million reviews and opinions on more than 4.0 million places to stay, places to eat and things to do – including more than 810,000 hotels and accommodations and approximately 600,000 vacation rentals, 2.2 million restaurants and 420,000 attractions in 140,000 destinations throughout the world.
• TripAdvisor launched localized versions of its website in Austria, New Zealand, Philippines, South Africa, and Vietnam bringing its total points of sale to 39.
• TripAdvisor’s mobile audience grew to more than 44% of total traffic including more than 110 million average unique monthly visitors via smartphone and tablet devices during the quarter, according to company log files. This includes a record of more than 125 million visitors via tablet or phone in March.
• TripAdvisor’s family of mobile apps – including TripAdvisor, TripAdvisor City Guides (offline access), Jetsetter (hotel flash sale), SeatGuru (air), and GateGuru (air) – reached more than 100 million downloads, up nearly 170% year-over-year. According to data from Distimo, a global leader in business intelligence and app market data, TripAdvisor is now the most popular travel app based on total App Store downloads***. TripAdvisor also recently launched its new hotel booking feature, Instant Booking, on Android and mobile web browsers.
• TripAdvisor added Extended Stay America as well as the Oberoi Group and ITC Hotels, two of India’s leading hotel brands, as new Business Listings customers.
• TripAdvisor’s free Review Express product has been used by 47,000 hospitality businesses, including 30,000 small to medium-sized hotels and bed & breakfasts, since its May 2013 launch.
• Subsequent to the end of the quarter, TripAdvisor entered into an exclusivity agreement to acquire leading online restaurant reservation site, La Fourchette (www.lafourchette.com). The company also acquired vacation rental business, Vacation Home Rentals (www.vacationhomerentals.com) and travel expert network, Tripbod (www.tripbod.com).
