Tripadvisor today announced financial results for the third quarter ended September 30, 2020.
Total revenue recovered to down 65% year-over-year (versus down 86% in the second quarter) and our continued cost discipline drove a narrowed net loss and generated positive adjusted EBITDA. Tripadvisor posted Q3 revenue of USD 151 million, a net loss of USD 48 million, and adjusted EBITDA of USD 15 million, all of which were better than internal projections when it last reported in August.
Since April, consumer demand for travel – as measured by travelers on the Tripadvisor platform - has been recovering. During Q3 2020, in July, August and September, monthly unique users on Tripadvisor sites were approximately 67%, 73%, and 74%, respectively, of last year’s comparable period.
Q3 2020 revenue of USD 151 million was 35% of last year’s comparable period and showed improvement versus 14% of Q2 2020. Monthly performance during Q3 2020 also improved. Specifically, July consolidated revenue was approximately 30% of last year’s comparable period and August and September revenue were approximately 40% of last year’s comparable period.
As of September 30, 2020, Tripadvisor had USD 446 million of cash and cash equivalents, an increase of USD 127 million from December 31, 2019, with nearly USD 1 billion in available borrowing capacity under our 2015 Credit Facility.
Given that the rate of recovery for travel and dining has slowed entering Q4 and, in some geographies, taking a step back, as well as the typical seasonality inherent to travel and its business, Tripadvisor expects Q4 revenue and adjusted EBITDA will be lower than Q3.
“As we enter 2021, we expect the travel industry’s recovery will remain uneven. However, we are encouraged by the signs of pent up travel demand and remain confident that leisure travel will eventually fully return. We also believe our streamlined cost structure can enable us to regain prior profitability ahead of regaining prior revenue levels.”
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