Fourth quarter 2014 total revenue of $288 million, up 35% year-over-year; full year 2014 total revenue increased to $1,246 million, up 32% year-over-year.
• Fourth quarter 2014 net income of $36 million, or $0.25 per diluted share, up 80% year-over-year; full year 2014 net income increased to $226 million, or $1.55 per diluted share, up 10% year-over-year.
• Fourth quarter 2014 non-GAAP net income of $52 million, or $0.35 per diluted share, up 73% year-over-year; full year 2014 non-GAAP net income increased to $284 million, or 1.93 per diluted share, up 16% year-over-year.
• Fourth quarter 2014 Adjusted EBITDA of $98 million, or 34% of revenue, up 88% year-over-year; full year 2014 Adjusted EBITDA increased to $468 million, or 38% of revenue, up 23% year-over-year.
• Fourth quarter 2014 cash flow from operating activities was $62 million, or 22% of revenue; full year 2014 cash flow from operations increased to $387 million, or 31% of revenue, up 11% year-over-year.
• TripAdvisor’s websites had more than 2.5 billion unique visitors during 2014, according to Google Analytics.
“We were very pleased with how we ended 2014. Most importantly, 2014 was a year in which we laid the foundation for TripAdvisor’s future. In addition to helping users plan a trip through our rich content, global travel community and price comparison tools, we have begun enabling more users to complete their booking in our three largest demand categories: hotels, attractions, and restaurants. This makes TripAdvisor the most comprehensive one-stop shop in travel. Starting in 2015, we plan to aggressively scale and promote this more complete user proposition,” said Steve Kaufer, TripAdvisor’s President and Chief Executive Officer.
Discussion of Fourth Quarter and Full Year 2014 Results
Total revenue for the fourth quarter of 2014 was $288 million, an increase of $75 million, or 35% (approximately 39% on a local currency basis) compared to the fourth quarter of 2013. Total revenue for the year ended December 31, 2014 was $1,246 million, an increase of $301 million, or 32%, compared to the year ended December 31, 2013.
• Click-based advertising – Revenue from click-based advertising totaled $181 million for the fourth quarter of 2014, an increase of 25% (approximately 30% on a local currency basis) compared to the fourth quarter of 2013. Click-based advertising revenue represented 63% of total revenue in the fourth quarter of 2014, compared to 68% in the fourth quarter of 2013. Revenue from click-based advertising totaled $870 million for year ended December 31, 2014, an increase of 25% compared to the year ended December 31, 2013. Click-based advertising revenue represented 70% of total revenue for the year ended December 31, 2014, compared to 74% for the year ended December 31, 2013.
• Display-based advertising – Revenue from display-based advertising totaled $36 million for the fourth quarter of 2014, an increase of 13% compared to the fourth quarter of 2013. Display-based advertising revenue represented 13% of total revenue in the fourth quarter of 2014, compared to 15% in the fourth quarter of 2013. Revenue from display-based advertising totaled $140 million for year ended December 31, 2014, an increase of 18% compared to the year ended December 31, 2013. Display-based advertising revenue represented 11% of total revenue for the year ended December 31, 2014, compared to 13% for the year ended December 31, 2013.
• Subscription, transaction and other – Revenue from subscription, transaction and other totaled $71 million for the fourth quarter of 2014, an increase of 97%, compared to the fourth quarter of 2013. Subscription, transaction and other revenue represented 25% of total revenue in the fourth quarter of 2014, compared to 17% in the fourth quarter of 2013. Revenue from subscription, transaction and other totaled $236 million for year ended December 31, 2014, an increase of 82% compared to the year ended December 31, 2013. Subscription, transaction and other revenue represented 19% of total revenue for the year ended December 31, 2014, compared to 14% for the year ended December 31, 2013.
For the fourth quarter of 2014, revenue from North America grew 35% year-over-year to $146 million, representing 51% of total revenue. Revenue from the Europe, Middle East and Africa region grew 39% year-over-year to $89 million, representing 31% of total revenue. Revenue from the Asia-Pacific region grew 13% year-over-year to $36 million, representing 13% of total revenue. Revenue from the Latin America region grew 89% year-over-year to $17 million, representing 6% of total revenue. International revenue was 52% of total revenue during the fourth quarter of 2014, flat from 52% in the fourth quarter of 2013.
For the year ended December 31, 2014, revenue from North America grew 27% year-over-year to $629 million, representing 50% of total revenue. Revenue from the Europe, Middle East and Africa region grew 39% year-over-year to $405 million, representing 33% of total revenue. Revenue from the Asia-Pacific region grew 28% year-over-year to $156 million, representing 13% of total revenue. Revenue from the Latin America region grew 47% year-over-year to $56 million, representing 4% of total revenue. International revenue was 52% of total revenue for 2014, up from 51% in 2013. Click-based advertising revenue by geography is based on the geographic location of our websites.
GAAP net income for the fourth quarter of 2014 was $36 million, or $0.25 per diluted share, compared to GAAP net income of $20 million, or $0.14 per diluted share, for the fourth quarter of 2013. GAAP net income for the year ended December 31, 2014 was up 10% to $226 million, or $1.55 per diluted share, compared to GAAP net income of $205 million, or $ 1.41 per diluted share, for the year ended December 31, 2013.
Non-GAAP net income for the fourth quarter of 2014 was $52 million, or $0.35 per diluted share, compared to non-GAAP net income of $30 million, or $0.21 per diluted share, for the fourth quarter of 2013. Non-GAAP net income for the year ended December 31, 2014 was up 16% to $284 million, or 1.93 per diluted share, compared to non-GAAP net income of $245 million, or $1.68 per diluted share, for the year ended December 31, 2013.
Adjusted EBITDA for the fourth quarter of 2014 was $98 million, and Adjusted EBITDA margin was 34%, compared to Adjusted EBITDA of $52 million and Adjusted EBITDA margin of 24% for the fourth quarter of 2013. Adjusted EBITDA for the year ended December 31, 2014 was $468 million and Adjusted EBITDA margin was 38%, compared to Adjusted EBITDA of $379 million and Adjusted EBITDA margin of 40% for the year ended December 31, 2013.
Cash flow from operating activities for the fourth quarter of 2014 was $62 million, a decrease of $9 million, or 13%, compared to the fourth quarter of 2013. Cash flow from operating activities for the year ended December 31, 2014 was $387 million, an increase of $38 million, or 11%, compared to the year ended December 31, 2013.
As of December 31, 2014, cash and cash equivalents and short and long term marketable securities were $594 million, a decrease of $76 million year-over-year.
As of December 31, 2014, TripAdvisor had 2,793 employees, up from 2,017 at December 31, 2013 and 2,719 employees at September 30, 2014.
Year End 2014 and Other Recent Business Highlights
• TripAdvisor’s travel community reached more than 315 million monthly unique visitors** during the year ended December 31, 2014, including nearly 50% via mobile devices (tablet and smartphone). At approximately 11% of the world’s monthly unique visitors in online travel at the end of 2014, TripAdvisor remains the largest travel website in the world*.
• TripAdvisor has more than 200 million reviews and opinions on more than 4.5 million places to stay, places to eat and things to do – including more than 915,000 hotels and accommodations and more than 650,000 vacation rentals, 2.4 million restaurants and more than 500,000 attraction listings in 147,000 destinations throughout the world.
• TripAdvisor reached nearly 175 million mobile app downloads, up 110% year-over-year – including downloads of TripAdvisor, TripAdvisor City Guides, Jetsetter, SeatGuru, and GateGuru. Also, the core TripAdvisor app has been downloaded more than 155 million times and had its six straight quarter of greater than 100% growth.
• TripAdvisor and Viator announced a new tours and activities supplier platform, Marketplace. Launching sometime in 2015, Marketplace will enable more partners to list their business on, and more users to book tours and activities through, Viator.
• TripAdvisor acquired three restaurant reservation businesses in the fourth quarter – mytable.it, restopolis, and Iens – establishing its leadership position in online restaurant reservations in Europe. In addition to Lafourchette’s core markets of France, Spain, and Switzerland, TripAdvisor’s restaurant coverage now spans 20,000 listings in Belgium, Italy, Turkey, Sweden, Denmark and the Netherlands.
• TripAdvisor launched an Instant Booking beta for independent hoteliers and is working with more than 30 connectivity partners, enabling travelers to book the hotel of their choice on the TripAdvisor site.
