NEWTON, MA, July 24, 2012 -- TripAdvisor, Inc. (NASDAQ: TRIP), the world’s largest travel website, today reported financial results for the second quarter ended June 30, 2012.
•Revenue for the second quarter increased to $197.1 million, up 7% from the prior quarter and up 16% from the second quarter of 2011
•Net income for the second quarter increased 10% quarter-over-quarter and declined 2% year-over-year to $53.0 million, or $0.37 per diluted share
•Non-GAAP net income for the second quarter increased 12% quarter-over-quarter and 4% year-over-year to $58.9 million, or $0.41 per diluted share
•Adjusted EBITDA for the second quarter increased 15% quarter-over-quarter and 5% year-over-year to $96.9 million, or 49% of revenue
•Cash flow from operations for the second quarter increased 108% quarter-over-quarter and 2% year-over-year to $61.8 million, or 31% of revenue
•Free cash flow for the second quarter increased 150% quarter-over-quarter and 1% year-over-year to $55.8 million, or 28% of revenue
“TripAdvisor posted record revenue and Adjusted EBITDA results in the second quarter,” said Steve Kaufer, President and CEO of TripAdvisor. “With more than 75 million reviews and opinions, 56 million unique monthly visitors, 32 million marketable members and 22 million mobile app downloads, TripAdvisor’s global community is strong and growing. Travelers are increasingly looking to TripAdvisor to help them plan and take the perfect trip.”
Discussion of Second Quarter 2012 Results
Revenues for the second quarter of 2012 were $197.1 million, an increase of $27.9 million, or 16%, compared to the second quarter of 2011.
•Click-based advertising – Revenues from click-based advertising totaled $151.1 million for the second quarter of 2012, an increase of 13% compared to the second quarter of 2011. Click-based advertising revenue represented 77% of total revenue in the second quarter of 2012, compared to 79% in the second quarter of 2011.
•Display-based advertising – Revenues from display-based advertising totaled $26.6 million for the second quarter of 2012, an increase of 14% compared to the second quarter of 2011. Display-based advertising revenue represented 13% of total revenue in the second quarter of 2012, compared to 14% in the second quarter of 2011.
•Subscription and other – Revenues from subscription and other totaled $19.4 million for the second quarter of 2012, an increase of 59% compared to the second quarter of 2011. Subscription and other revenue represented 10% of total revenue in the second quarter of 2012, compared to 7% in the second quarter of 2011.
For the second quarter of 2012, revenues from the U.S. totaled $101.4 million, and represented 51% of total revenue, compared to 56% in the second quarter of 2011. Revenues from the U.K. totaled $29.6 million, and represented 15% of total revenue for the second quarter of 2012, compared to 16% in the second quarter of 2011. Revenues from the rest of the world totaled $66.1 million, and represented 34% of total revenue for the second quarter of 2012, compared to 28% in the second quarter of 2011. Click-based advertising revenue and Display-based advertising revenue by geography are measured by the point-of-sale on which the transaction occurs.
Related-party revenues from Expedia totaled $55.7 million for the second quarter of 2012, a decrease of $3.5 million, or 6%, compared to the second quarter of 2011.
GAAP net income for the second quarter of 2012 was $53.0 million, or $0.37 per diluted share, compared to GAAP net income of $54.1 million, or $0.41 per diluted share, for the second quarter of 2011. For the second quarter ended June 30, 2011, we computed diluted earnings per share using the number of shares of common stock and Class B common stock outstanding immediately following the spin-off from Expedia, as no TripAdvisor equity awards were outstanding prior to the spin-off.
Adjusted EBITDA for the second quarter of 2012 was $96.9 million, and Adjusted EBITDA margin was 49%, compared to Adjusted EBITDA of $92.5 million and Adjusted EBITDA margin of 55% for the second quarter of 2011.
Cash flow from operating activities for the second quarter 2012 was $61.8 million, an increase of $1.2 million, or 2%, compared to the second quarter of 2011. Free cash flow for the second quarter of 2012 was $55.8 million, an increase of 1% compared to the second quarter of 2011.
Other Second Quarter 2012 and Recent Business Highlights
•TripAdvisor’s travel community grew to an average of more than 54 million monthly unique visitors, including 56 million in May alone, according to comScore data for the quarter ended June 30, 2012. According to company logs, TripAdvisor now has more than 32 million marketable members, up more than 25% since March 31, 2012.
•TripAdvisor members added user-generated content at an accelerated rate of more than 50 contributions per minute. The company now has over 75 million reviews and opinions on more than 610,000 hotels and accommodations, 880,000 restaurants and 200,000 attractions in more than 110,000 destinations throughout the world.
•TripAdvisor reached 32 million Facebook visitors to its website and Facebook app as of June 30, 2012, according to AppData. TripAdvisor enhanced its Social tie-in with Facebook by introducing “Friend of a Friend” functionality, by adding login through Facebook capability on mobile devices and by launching its Local Picks Facebook app, which highlights best restaurants according to locals and friends.
•TripAdvisor reached more than 22 million total downloads of its TripAdvisor, City Guides and SeatGuru mobile apps and reached more than 27 million unique visitors via mobile devices during Q2. TripAdvisor unveiled a brand new app for iPad and also launched 30 new City Guides across iOS and Android, bringing its total to 50 cities covered.
•TripAdvisor introduced Mobile Upgrade for Business Listings subscribers, which allows hoteliers to showcase special offers to travelers using TripAdvisor on a mobile device.
•TripAdvisor honored top businesses with the prestigious 2012 Certificate of Excellence, which honors hospitality excellence and is given only to the top 10% of accommodations and top 5% of restaurants and attractions establishments that consistently achieve outstanding traveler reviews on TripAdvisor. In addition, winners are now able to download Certificate of Excellence 2012 widgets to showcase their achievements on their websites.
•TripAdvisor released the inaugural Travelers’ Choice® Restaurants, which recognized 576 favorite dining establishments in popular cities worldwide, based on millions of valuable traveler reviews and opinions on TripAdvisor.
