TripAdvisor (TRIP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $532–$533 million, flat year-over-year, with all three segments profitable and Viator and TheFork delivering double-digit revenue growth.

• Adjusted EBITDA was $122 million, or 23% of revenue, slightly below last year, reflecting operational outperformance, delayed investments, and increased Viator investment.

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

• Strategic focus remains on scaling experiences, innovating in travel planning, and expanding B2C/B2B offerings, while managing headwinds in legacy Hotel Meta.

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

Financial highlights

• Brand Tripadvisor revenue declined 12% year-over-year to $255 million, with Adjusted EBITDA of $87 million (34% margin); Viator revenue grew 10% to $270 million with $30 million Adjusted EBITDA (11% margin); TheFork revenue rose 17% to $49 million with $5 million Adjusted EBITDA (10% margin).

• Cost of revenue increased 9% to $47 million; selling and marketing costs were flat at $271 million.

• Cash and cash equivalents stood at $1.1 billion as of September 30, 2024; available borrowing capacity under the Credit Facility was $497 million.

• Free cash flow for Q3 was negative $64 million, impacted by seasonality and working capital changes.

• Net income margin was 7.3% for Q3 2024.

Outlook and guidance

• Full-year 2024 revenue and Adjusted EBITDA are in line with previous guidance; Q4 expected to see sequential acceleration in consolidated revenue growth to low/mid-single digits year-over-year.

• Brand Tripadvisor revenue declines expected to be flat sequentially; Viator and TheFork to accelerate to mid-teens and mid-20s growth, respectively.

• Adjusted EBITDA margin in Q4 expected to show year-over-year deleverage, with brand Tripadvisor at ~20%, Viator in high single digits, and TheFork flat.

• Management expects continued investment in Viator and TheFork to drive long-term growth and market share, with a focus on improving unit economics and profitability.

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