TripAdvisor (TRIP) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue was $497 million, up 1% year-over-year, with adjusted EBITDA of $97 million (20% of revenue), and net income of $24 million, flat compared to Q2 2023.

• All three segments—Brand Tripadvisor, Viator, and TheFork—were profitable, with Viator and TheFork delivering double-digit revenue growth and Brand Tripadvisor declining 10%.

• Management emphasized ongoing product innovation, marketing efficiency, and execution as drivers for long-term growth, with a focus on engagement-led strategies and app-based models.

• Portfolio diversification increased, with Viator and TheFork contributing more to the profit mix.

• Net loss for H1 2024 improved to $(35) million from $(49) million in the prior year period.

Financial highlights

• Q2 2024 revenue: $497 million (+1% year-over-year); adjusted EBITDA: $97 million (20% margin); net income: $24 million ($0.17 per share); free cash flow: $37 million.

• Brand Tripadvisor revenue declined 10% to $250 million, with adjusted EBITDA of $84 million (34% margin).

• Viator revenue grew 13% to $244 million, with gross booking value up 8% to $1.2 billion and adjusted EBITDA of $10 million (4% margin).

• TheFork revenue increased 11% to $42 million, with adjusted EBITDA of $3 million (7% margin), marking its most profitable quarter.

• Ended the quarter with $1.2 billion in cash and equivalents; repurchased 1.37–1.4 million shares for $25 million.

Outlook and guidance

• Q3 2024 consolidated revenue expected to be flat or slightly down year-over-year; full-year consolidated revenue growth forecasted at low single digits, at the low end of prior guidance.

• Full-year adjusted EBITDA margin expected to deleverage by 100–200 basis points.

• Brand Tripadvisor revenue projected to decline mid- to high single digits for the year, with margin down 400 basis points.

• Viator and TheFork expected to show improved profitability and operating efficiencies.

• Company anticipates a net cash inflow of $25–$35 million in the next twelve months from a tax settlement refund.