TripAdvisor (TRIP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $532 million, flat year-over-year, with adjusted EBITDA of $122 million (23% margin), and all three segments—Brand Tripadvisor, Viator, and TheFork—profitable, reaffirming full-year estimates.

• Net income rose 44% to $39 million, driven by lower restructuring costs and reduced income tax expense.

• Strategic focus remains on scaling growth drivers, especially in experiences and dining, while managing headwinds in legacy hotel meta offerings.

• CEO highlighted operational rigor and segment strategies as drivers of profitability.

Financial highlights

• Brand Tripadvisor revenue declined 12% year-over-year to $255 million; Adjusted EBITDA was $87 million (34% margin).

• Viator revenue grew 10% to $270 million, with gross booking value up 9% to $1.1 billion; Adjusted EBITDA was $30 million (11% margin).

• TheFork delivered record revenue of $49 million, up 17% year-over-year, and Adjusted EBITDA of $5 million (10% margin).

• Operating cash flow was negative $44 million and free cash flow negative $64 million, reflecting seasonality and working capital changes.

• Ended Q3 with nearly $1.1 billion in cash and cash equivalents.

Outlook and guidance

• Full-year 2024 revenue and Adjusted EBITDA expected in line with prior outlook; consolidated Adjusted EBITDA margin to deleverage by 100 basis points year-over-year.

• Q4 revenue growth expected to accelerate sequentially to low/mid-single digits year-over-year; Viator and TheFork to see sequential acceleration, while Brand Tripadvisor remains flat.

• Brand Tripadvisor margin expected at ~20% in Q4; Viator in high single digits; TheFork roughly flat year-over-year.

• 2025 priorities include extending leadership in experiences, focusing Tripadvisor on planning/guidance and app bookings, and building on TheFork’s momentum.