TripAdvisor announced financial results for the third quarter ended September 30, 2019.
Total revenue, GAAP Net Income and adjusted EBITDA decreased 7%, 28% and 12% year-over-year, respectively.
In light of these results and ongoing trends, TripAdvisor:
* Announces a comprehensive cost structure evaluation
* Declares a special cash dividend of $3.50 per share, returning an estimated $490 million of capital to shareholders
* Authorizes the repurchase of an additional $100 million in shares of common stock, which increases the amount available under its share repurchase program to $250 million
TripAdvisor also announces a strategic partnership with Trip.com Group that includes a joint venture, a content sharing agreement and a governance agreement.
“Q3 was more difficult than we anticipated, but we are taking action,” said Chief Executive Officer Steve Kaufer. “We are driving non-auction revenue growth in our HM&P and E&D segments; we are containing costs; and we are returning more capital to shareholders. We are also excited to announce our strategic partnership with Trip.com Group.”
Third Quarter Highlights
* Total Revenue was $428 million, a 7% decrease year-over-year.
* GAAP Net Income was $50 million, a 28% decrease year-over-year.
* Total Adjusted EBITDA was $129 million, a 12% decrease year-over-year.
* Hotels, Media & Platform segment revenue was $238 million, a 12% decrease year-over-year.
* Experiences & Dining segment revenue grew 19% to $141 million, the segment's Adjusted EBITDA
reflected ongoing long-term growth investments.
* Other revenue decreased 30% to $49 million, primarily driven by the elimination of some marginal and unprofitable revenue within some non-TripAdvisor branded offerings near the end of last year, which reduced revenue and increased profitability.
* Cash and cash equivalents and short-term marketable securities was $933 million and there was no outstanding debt as of September 30, 2019.
* Cash flow from operating activities for the three months ended September 30, 2019 decreased by $13 million. Free cash flow for the three months ended September 30, 2019 decreased by $21 million year-over-year, reflecting an increase in capital expenditures year-over-year.
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