TripAdvisor announced financial results for the fourth quarter and full year ended December 31, 2018.
Chief Financial Officer Ernst Teunissen said, “We are very pleased with our strong Q4 and full year 2018 results. We expect double-digit consolidated adjusted EBITDA growth in 2019, with differentiated revenue and profit focus by segment.”
Q4 Total Revenue accelerated to 8% growth, or $346 million. Full-year Total Revenue grew 4% to approximately $1.62 billion.
Q4 GAAP Net Income grew to $7 million and full year GAAP Net Income grew to $113 million. This increase year-over-year was primarily due to $73 million in additional tax expense related to the impact of the 2017 Tax Act in the fourth quarter of 2017 that did not reoccur in 2018, partially offset by expenses of $5 million attributed to a legal settlement in the fourth quarter of 2018.
Q4 Non-GAAP Net Income grew 375% to $38 million. Full year Non-GAAP Net Income grew 67% to $240 million.
Q4 Total Adjusted EBITDA grew 38% to $87 million, and Q4 Total Adjusted EBITDA margin improved to 25%, a 500 basis point increase compared to Q4 2017. Full-year Total Adjusted EBITDA grew 27% to $422 million, and full year Total Adjusted EBITDA margin improved to 26%, increasing 500 basis points year-over-year.
Q4 Hotel Revenue was $240 million, a 2% decrease year-over-year. Q4 Hotel Adjusted EBITDA grew 25% to $79 million, and Hotel Adjusted EBITDA margin improved to 33%, a 700 basis point increase compared to Q4 2017.
Full-year Hotel Revenue was approximately $1.16 billion, a 3% decrease year-over-year. Hotel Adjusted EBITDA grew 24% to $356 million, and Hotel Adjusted EBITDA margin improved to 31%, a 700 basis point increase compared to 2017.
Average monthly unique visitors on TripAdvisor-branded websites and applications grew 2% in Q4 2018 and grew to 490 million* during the 2018 peak summer travel season. Average monthly unique hotel shoppers declined 11% and 4% in Q4 2018 and in the full year of 2018, respectively period-over-period.
TripAdvisor-branded click-based and transaction revenue grew 1% in Q4 2018 and declined 4% in the full year of 2018, while Revenue per Hotel Shopper grew 14% in Q4 2018 and declined 2% in full year of 2018 year-over-year.
Q4 Non-Hotel Revenue grew 38% to $106 million and Non-Hotel Adjusted EBITDA grew to $8 million. Full-year Non-Hotel Revenue grew 27% to $458 million and Non-Hotel Adjusted EBITDA grew 47% to $66 million.
Cash and cash equivalents and short-term marketable securities was $670 million and there was no outstanding debt as of December 31, 2018.
Cash flow from Operating activities for the year ended December 31, 2018, was $405 million, an increase of $167 million, or 70%, year-over-year. Full-year Free cash flow grew 98% to $344 million.
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