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8-K - FORM 8-K - TripAdvisor, Inc.d572478d8k.htm

Exhibit 99.1

 

LOGO

TripAdvisor Reports Second Quarter 2013 Financial Results

NEWTON, MA, July 24, 2013 – TripAdvisor, Inc. (NASDAQ: TRIP), the world’s largest travel site*, today announced financial results for the second quarter ended June 30, 2013.

 

   

Revenue for the second quarter increased to $246.9 million, up 7% quarter-over-quarter and up 25% year-over-year.

 

   

Net income for the second quarter increased 8% quarter-over-quarter and increased 26% year-over-year to $67.0 million, or $0.46 per diluted share. Non-GAAP net income for the second quarter increased 4% quarter-over-quarter and 28% year-over-year to $75.7 million, or $0.52 per diluted share.

 

   

Adjusted EBITDA for the second quarter increased 3% quarter-over-quarter and 16% year-over-year to $112.8 million, or 46% of revenue.

 

   

Cash flow from operations for the second quarter increased 45% year-over-year to $89.6 million, or 36% of revenue; free cash flow for the second quarter increased 35% year-over-year to $75.3 million, or 30% of revenue.

 

   

TripAdvisor repurchased 675,000 common shares for an aggregate purchase price of $42.4 million.

 

   

More than one billion travelers visited TripAdvisor’s website during the first half of the year.

“There was a lot for TripAdvisor fans to be excited about during the second quarter,” said Steve Kaufer, President and CEO of TripAdvisor. “Our strong financial performance was driven by continued traffic growth. We also kicked off our first-ever offline ad campaign to enhance brand awareness. Perhaps most notably, we bid ‘adieu’ to pop-ups and rolled out our new hotel metasearch display, which makes it easier for travelers to find a great hotel as they plan their perfect trip.”

Discussion of Second Quarter 2013 Results

Revenue for the second quarter of 2013 was $246.9 million, an increase of $49.8 million, or 25%, compared to the second quarter of 2012.

 

   

Click-based advertising – Revenue from click-based advertising totaled $182.8 million for the second quarter of 2013, an increase of 21% compared to the second quarter of 2012. Click-based advertising revenue represented 74% of total revenue in the second quarter of 2013, compared to 77% in the second quarter of 2012.

 

   

Display-based advertising – Revenue from display-based advertising totaled $31.4 million for the second quarter of 2013, an increase of 18% compared to the second quarter of 2012. Display-based advertising revenue represented 13% of total revenue in the second quarter of 2013 and 2012, respectively.

 

   

Subscription, transaction and other – Revenue from subscription, transaction and other totaled $32.7 million for the second quarter of 2013, an increase of 68% compared to the second quarter of 2012.

Subscription, transaction and other revenue represented 13% of total revenue in the second quarter of 2013, compared to 10% in the second quarter of 2012.

For the second quarter of 2013, revenue from North America totaled $133.6 million, representing 54% of total revenue. Revenue from the Europe, Middle East and Africa region totaled $73.4 million, representing 30% of total revenue for the second quarter of 2013. For the Asia-Pacific region, revenue totaled $30.0 million, representing 12% of total revenue for the second quarter of 2013. Revenue from the Latin America region totaled $9.9 million, representing 4% of total revenue for the second quarter of 2013. International revenue was 49% of total revenue during the quarter, which was slightly lower than the first quarter of 2013 due to the staggered rollout of hotel metasearch throughout the quarter, and consistent with the second quarter of 2012. Click-based advertising revenue by geography is based on the geographic location of our websites.


Related-party revenue from Expedia totaled $54.3 million for the second quarter of 2013, a decrease of $1.4 million, or 3%, compared to the second quarter of 2012.

GAAP net income for the second quarter of 2013 was $67.0 million, or $0.46 per diluted share, compared to GAAP net income of $53.0 million, or $0.37 per diluted share, for the second quarter of 2012.

Non-GAAP net income for the second quarter of 2013 was $75.7 million, or $0.52 per diluted share, compared to non-GAAP net income of $58.9 million, or $0.41 per diluted share, for the second quarter of 2012.

Adjusted EBITDA for the second quarter of 2013 was $112.8 million, and Adjusted EBITDA margin was 46%, compared to Adjusted EBITDA of $96.9 million and Adjusted EBITDA margin of 49% for the second quarter of 2012.

Cash flow from operating activities for the second quarter of 2013 was $89.6 million, an increase of $27.9 million, or 45%, compared to the second quarter of 2012.

As of June 30, 2013, cash and cash equivalents and short and long-term marketable securities were $616.0 million, up $137.7 million since June 30, 2012 and up $30.2 million since December 31, 2012.

During the second quarter of 2013, the Company repurchased 675,000 common shares for an aggregate purchase price of $42.4 million.

As of June 30, 2013, TripAdvisor had 1,799 employees, up from 1,444 employees at June 30, 2012 and 1,632 at March 31, 2013.

In the Company’s earnings release and the related conference call or webcast, the Company may use or discuss non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and free cash flow, which are non-GAAP financial measures as defined by the U.S. Securities and Exchange Commission. Please refer to the section below entitled “Use of non-GAAP Financial Measures” for definitions of these non-GAAP financial measures and the financial schedules attached to this press release for reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure.

Other Second Quarter 2013 and Recent Business Highlights

 

   

TripAdvisor’s travel community averaged more than 220 million monthly unique visitors for the quarter ended June 30, 2013, according to Google Analytics. At approximately 11% of the world’s monthly unique visitors in online travel, according to comScore, TripAdvisor remains the largest travel website in the world.

 

   

TripAdvisor user-generated content grew at a rate of more than 70 contributions per minute covering more than 725,000 hotels and accommodations, 1.3 million restaurants and 300,000 attractions in more than 130,000 destinations throughout the world. TripAdvisor syndicates its content to nearly 700 travel-related partners and TripAdvisor widgets can be found on more than 93,000 sites around the globe.

 

   

TripAdvisor averaged nearly 38 million monthly Facebook visitors to its website and Facebook app during the quarter, and remains the #1 travel app on Facebook, according to AppData. In addition, TripAdvisor grew marketable members more than 80% year-over-year to 53 million, according to company logs.

 

   

TripAdvisor launched hotel metasearch functionality in early June, providing users with inline room pricing and availability.

 

   

TripAdvisor kicked-off its first television ad campaign in the United States, testing ads in Boston, MA, Raleigh, NC, Seattle, WA, Portland, OR, Columbus, OH, and Houston, TX.

 

   

Downloads of TripAdvisor, City Guides and SeatGuru mobile apps doubled year-over-year. Including downloads of Jetsetter and GateGuru, TripAdvisor reached 50 million cumulative downloads and average unique monthly visitors via smartphone and tablet devices grew over 200% year-over-year to approximately 79 million for the quarter ended June 30, 2013, according to company logs.


   

In addition to its previously announced Jetsetter, CruiseWise, and Niumba acquisitions, TripAdvisor acquired GateGuru, the leading mobile resource for flight and airport information around the world, complimenting TripAdvisor’s existing Flights product and SeatGuru brand in the air travel ecosystem.

 

   

TripAdvisor introduced Review Express, a free marketing tool that makes it easy for property owners to invite guests to write a review on TripAdvisor.

Conference Call

TripAdvisor will host a conference call today, July 24, 2013 at 5:00 p.m., Eastern Time, to discuss TripAdvisor’s second quarter 2013 operating results, as well as other forward-looking information about TripAdvisor’s business. Domestic callers may access the earnings conference call by dialing (877) 224-9081 (International callers, dial (224) 357-2223). Investors and other interested parties may also go to the Investor Relations section of TripAdvisor’s website at http://ir.tripadvisor.com/events.cfm for a live webcast of the conference call. Please access the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. A replay of the conference call will be available on TripAdvisor’s website noted above or by phone (dial (855) 859-2056 and enter the pass code 71899833) until July 31, 2013 and the webcast will be accessible at http://ir.tripadvisor.com/events.cfm for at least twelve months following the conference call.

About TripAdvisor

TripAdvisor®  is the world’s largest travel site*, enabling travelers to plan and have the perfect trip. TripAdvisor offers trusted advice from real travelers and a wide variety of travel choices and planning features with seamless links to booking tools. TripAdvisor branded sites make up the largest travel community in the world, with more than 230 million unique monthly visitors**, and more than 100 million reviews and opinions covering more than 2.7 million accommodations, restaurants and attractions. The sites operate in 30 countries worldwide, including China under daodao.com. TripAdvisor also includes TripAdvisor for Business, a dedicated division that provides the tourism industry access to millions of monthly TripAdvisor visitors.

TripAdvisor, Inc. (NASDAQ: TRIP) manages and operates websites under 20 other travel media brands:

www.airfarewatchdog.com, www.bookingbuddy.com, www.cruisecritic.com, www.everytrail.com,

www.familyvacationcritic.com, www.flipkey.com, www.gateguru.com, www.holidaylettings.co.uk, www.holidaywatchdog.com,

www.independenttraveler.com, www.jetsetter.com, www.niumba.comwww.onetime.com, www.seatguru.com,

www.smartertravel.com, www.tingo.comwww.travelpod.com, www.virtualtourist.com, www.whereivebeen.com, and

www.kuxun.cn.

 

* Source: comScore Media Metrix for TripAdvisor Sites, worldwide, June 2013
** Source: Google Analytics, worldwide data, June 2013


TripAdvisor, Inc.

SELECTED FINANCIAL INFORMATION

(in thousands, except for share and per share data)

Consolidated Statements of Operations

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     June 30, 2013     March 31, 2013     June 30, 2012     June 30, 2013     June 30, 2012  

Revenue

   $ 192,615      $ 169,408      $ 141,408      $ 362,023      $ 273,535   

Related-party revenue from Expedia

     54,322        60,511        55,740        114,833        107,328   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     246,937        229,919        197,148        476,856        380,863   

Costs and expenses:

          

Cost of revenue

     4,284        3,644        2,926        7,928        5,660   

Selling and marketing (1)

     82,574        79,291        64,243        161,865        131,632   

Technology and content (1)

     31,903        28,815        21,574        60,718        39,415   

General and administrative (1)

     25,552        22,433        18,252        47,985        34,506   

Depreciation

     6,876        6,324        4,715        13,200        8,996   

Amortization of intangible assets

     1,630        1,109        1,760        2,739        3,599   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses:

     152,819        141,616        113,470        294,435        223,808   

Operating income

     94,118        88,303        83,678        182,421        157,055   

Total other expense, net

     (4,216     (3,867     (6,944     (8,083     (9,180
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     89,902        84,436        76,734        174,338        147,875   

Provision for income taxes

     (22,914     (22,137     (23,569     (45,051     (46,539
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     66,988        62,299        53,165        129,287        101,336   

Net (income) loss attributable to non-controlling interest

     —          —          (146     —          (206
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to TripAdvisor Inc

   $ 66,988      $ 62,299      $ 53,019      $ 129,287      $ 101,130   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share attributable to TripAdvisor, Inc:

          

Basic

   $ 0.47      $ 0.44      $ 0.38      $ 0.90      $ 0.74   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.46      $ 0.43      $ 0.37      $ 0.89      $ 0.73   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

          

Basic

     143,530,691        143,063,325        139,277,792        143,297,008        136,515,686   

Diluted

     145,664,210        144,655,240        141,736,894        145,159,725        138,947,284   

(1)    Includes stock-based compensation as follows:

       

       

Selling and marketing

   $ 2,244      $ 2,315      $ 923      $ 4,559      $ 2,001   

Technology and content

     4,024        6,398        2,426        10,422        3,938   

General and administrative

     3,940        4,898        3,419        8,838        5,521   


TripAdvisor, Inc.

Consolidated Balance Sheets

(Unaudited)

 

     June 30,
2013
    December 31,
2012
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 200,058      $ 367,515   

Short-term marketable securities

     196,037        118,970   

Accounts receivable, net of allowance for doubtful accounts of $2,918 and $2,818 at June 30, 2013 and December 31, 2012, respectively

     137,981        81,459   

Receivable from Expedia, Inc., net

     35,239        23,971   

Taxes receivable

     18,072        24,243   

Deferred income taxes, net

     7,026        5,971   

Prepaid expenses and other current assets

     17,059        10,365   
  

 

 

   

 

 

 

Total current assets

     611,472        632,494   

Long-term assets:

    

Long-term marketable securities

     219,865        99,248   

Property and equipment, net

     54,601        43,802   

Deferred income taxes, net

     1,050        502   

Other long-term assets

     14,460        13,274   

Intangible assets, net

     52,122        38,190   

Goodwill

     502,015        471,684   
  

 

 

   

 

 

 

Total Assets

   $ 1,455,585      $ 1,299,194   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 9,153      $ 12,796   

Deferred merchant payables

     31,251        1,303   

Deferred revenue

     42,416        31,563   

Credit facility borrowings

     24,633        32,145   

Borrowings, current

     40,000        40,000   

Taxes payable

     12,006        14,597   

Accrued expenses and other current liabilities

     81,840        63,236   
  

 

 

   

 

 

 

Total current liabilities

     241,299        195,640   

Deferred income taxes, net

     8,064        11,023   

Other long-term liabilities

     34,263        25,563   

Borrowings, net of current portion

     320,000        340,000   
  

 

 

   

 

 

 

Total Liabilities

     603,626        572,226   

Stockholders’ equity:

    

Preferred stock, $0.001 par value

    

Authorized shares: 100,000,000

     —          —     

Shares issued and outstanding: 0 and 0

    

Common stock $0.001 par value

     131        130   

Authorized shares: 1,600,000,000

    

Shares issued: 131,127,919 and 130,060,138

    

Shares outstanding: 130,452,919 and 130,060,138

    

Class B common stock $0.001 par value

     13        13   

Authorized shares: 400,000,000

    

Shares issued and outstanding: 12,799,999 and 12,799,999

    

Additional paid-in capital

     573,472        531,256   

Retained earnings

     325,725        196,438   

Accumulated other comprehensive loss

     (4,975     (869

Treasury stock-common stock, at cost, 675,000 and 0 shares, at June 30, 2013 and December 31, 2012, respectively

     (42,407     —     
  

 

 

   

 

 

 

Total Stockholders’ Equity

     851,959        726,968   
  

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 1,455,585      $ 1,299,194   
  

 

 

   

 

 

 


TripAdvisor, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     June 30, 2013     March 31, 2013     June 30, 2012     June 30, 2013     June 30, 2012  

Operating activities:

          

Net income

   $ 66,988      $ 62,299        53,165      $ 129,287      $ 101,336   

Adjustments to reconcile net income to net cash provided by operating activities:

          

Depreciation of property and equipment, including internal-use software and website development

     6,876        6,324        4,715        13,200        8,996   

Stock-based compensation

     10,208        13,611        6,768        23,819        11,460   

Amortization of intangible assets

     1,630        1,109        1,760        2,739        3,599   

Amortization of deferred financing costs

     198        203        211        401        475   

Amortization of discounts and premiums on marketable securities, net

     1,389        1,249        —          2,637        —     

Deferred tax benefit

     (1,302     (2,674     (45     (3,976     (74

Excess tax benefits from stock-based compensation

     (4,293     (949     (328     (5,242     (2,011

Provision (recovery) for doubtful accounts

     322        334        (863     656        (1,300

Foreign currency transaction losses (gains), net

     926        1,613        2,812        2,539        2,323   

Other, net

     833        (263     472        570        509   

Changes in operating assets and liabilities, net of effects from acquisitions:

     5,846        (39,190     (6,909     (33,343     (33,836
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     89,621        43,666        61,758        133,287        91,477   

Investing activities:

          

Acquisitions, net of cash acquired

     (30,379     (1,197     —          (31,576     —     

Capital expenditures, including internal-use software and website development

     (14,334     (9,264     (5,910     (23,598     (13,249

Proceeds from Expedia, Inc. related to Spin-Off

     —          —          —          —          7,028   

Purchases of marketable securities

     (132,910     (213,683     —          (346,593     —     

Sales of marketable securities

     53,638        14,415        —          68,053        —     

Maturities of marketable securities

     45,932        30,997        —          76,929        —     

Other, net

     350        —          —          350        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (77,703     (178,732     (5,910     (256,435     (6,221

Financing activities:

          

Repurchase of common stock

     (34,115     —          —          (34,115     —     

Proceeds from credit facilities

     2,979        3,723        4,734        6,701        7,627   

Payments to credit facilities

     —          (14,728     —          (14,728     (10,000

Principal payments on long-term debt

     (10,000     (10,000     (5,000     (20,000     (10,000

Proceeds from exercise of stock options and warrants

     13,388        6,459        216,843        19,847        225,769   

Payment of minimum withholding taxes on net share settlements of equity awards

     (303     (5,232     (76     (5,534     (3,035

Excess tax benefits from stock-based compensation

     4,293        949        328        5,242        2,011   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used by) provided by financing activities

     (23,758     (18,829     216,829        (42,587     212,372   

Effect of exchange rate changes on cash and cash equivalents

     31        (1,753     (3,061     (1,722     (2,919
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (11,809     (155,648     269,616        (167,457     294,709   

Cash and cash equivalents at beginning of period

     211,867        367,515        208,625        367,515        183,532   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 200,058      $ 211,867      $ 478,241      $ 200,058      $ 478,241   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Use of Non-GAAP Financial Measures

To supplement the financial measures presented in TripAdvisor’s press release and related conference call or webcast in accordance with accounting principles generally accepted in the United States (“GAAP”), TripAdvisor also reports Non-GAAP net income, Non-GAAP net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and free cash flow, which are supplemental measures to GAAP and are defined by the U.S. Securities and Exchange Commission as non-GAAP financial measures. A “non-GAAP financial measure” refers to a numerical measure of a company’s historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in such company’s financial statements.

TripAdvisor defines “Non-GAAP net income” as net income before expenses related to stock-based compensation and amortization of intangible assets and non-recurring expenses, net of related tax effects.

TripAdvisor defines “Non-GAAP net income per diluted share” as Non-GAAP net income divided by non-GAAP weighted average diluted shares outstanding, which includes dilution from options and warrants per the treasury stock method and includes all weighted average shares relating to RSUs in shares outstanding for Non-GAAP net income per diluted share.

TripAdvisor defines “Adjusted EBITDA” as net income (loss), plus: (1) provision for income taxes; (2) other (income) expense, net; (3) depreciation of property and equipment, including internal use software and website development; (4) amortization of intangible assets; (5) stock-based compensation; and (6) non-recurring expenses. Adjusted EBITDA is the primary metric by which management evaluates the performance of its business and on which internal budgets are based. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis. Adjusted EBITDA eliminates items that are either not part of TripAdvisor’s core operations such as the costs incurred to spin-off from Expedia or those costs that do not require a cash outlay, such as stock-based compensation. Adjusted EBITDA also excludes depreciation and amortization expense, which is based on TripAdvisor’s estimate of the useful life of tangible and intangible assets. These estimates could vary from actual performance of the asset, are based on historical costs and other factors and may not be indicative of current or future capital expenditures. We believe that by excluding certain items, such as stock-based compensation and non-recurring expenses, Adjusted EBITDA corresponds more closely to the cash that operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.

TripAdvisor defines “Adjusted EBITDA margin” as Adjusted EBITDA as a percentage of revenue.

TripAdvisor defines “Non-GAAP Selling and Marketing” and “Non GAAP Technology and Content” expenses as GAAP Selling and Marketing and GAAP Technology and Content expenses, respectively, before stock-based compensation expense. The Company defines “Non-GAAP General and Administrative” expense as GAAP General and Administrative expense, including related-party shared services expense and before stock-based compensation expense.

TripAdvisor defines “free cash flow” as net cash provided by (used in) operating activities less capital expenditures, which are purchases of property and equipment, including capitalization of internal-use software development costs. We believe that these non-GAAP financial measures are useful measures for analysts and investors to evaluate our future on-going performance as these measures allow a more meaningful comparison of our projected cash earnings and performance with our historical results from prior periods and to the results of our competitors. Moreover, management uses these measures internally to evaluate the performance of our business as a whole.

TripAdvisor provides these non-GAAP financial measures as additional information relating to TripAdvisor’s operating results as a complement to results provided in accordance with GAAP. Management believes that investors should have access to the same set of tools that management uses to analyze our results. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to the financial information presented in accordance with GAAP and should not be considered measures of TripAdvisor’s liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company’s performance to that of other companies. TripAdvisor endeavors to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures.


Pursuant to the requirements of Regulation G, we present a reconciliation of these non-GAAP financial measures to the nearest GAAP measure below.

TripAdvisor, Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except for share and per share data)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     June 30, 2013     March 31, 2013     June 30, 2012     June 30, 2013     June 30, 2012  

Non-GAAP operating expenses:

          

GAAP Selling and marketing

   $ 82,574      $ 79,291      $ 64,243      $ 161,865      $ 131,632   

Subtract: Stock-based compensation expense

     2,244        2,315        923        4,559        2,001   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Selling and marketing

   $ 80,330      $ 76,976      $ 63,320      $ 157,306      $ 129,631   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Technology and content

   $ 31,903      $ 28,815      $ 21,574      $ 60,718      $ 39,415   

Subtract: Stock-based compensation expense

     4,024        6,398        2,426        10,422        3,938   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Technology and content

   $ 27,879      $ 22,417      $ 19,148      $ 50,296      $ 35,477   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP General and administrative

   $ 25,552      $ 22,433      $ 18,252      $ 47,985      $ 34,506   

Subtract: Stock-based compensation expense

     3,940        4,898        3,419        8,838        5,521   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP General and administrative

   $ 21,612      $ 17,535      $ 14,833      $ 39,147      $ 28,985   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income and net income per share:

          

GAAP net income

   $ 66,988      $ 62,299      $ 53,019      $ 129,287      $ 101,130   

Add: Stock based compensation expense

     10,208        13,611        6,768        23,819        11,460   

Add: Amortization of intangible assets

     1,630        1,109        1,760        2,739        3,599   

Subtract: Income tax effect of Non-GAAP adjustments (1)

     3,149        3,945        2,619        6,985        4,744   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 75,677      $ 73,074      $ 58,928      $ 148,860      $ 111,445   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP diluted shares

     145,664,210        144,655,240        141,736,894        145,159,725        138,947,284   

Add: Additional restricted stock units

     823,214        412,163        598,639        617,689        622,845   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted shares

     146,487,424        145,067,403        142,335,533        145,777,414        139,570,129   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP net income per diluted share

   $ 0.46      $ 0.43      $ 0.37      $ 0.89      $ 0.73   

Non-GAAP net income per diluted share

     0.52        0.50        0.41        1.02        0.80   

Adjusted EBITDA:

          

Net Income

   $ 66,988      $ 62,299      $ 53,165      $ 129,287      $ 101,336   

Add: Other expense, net

     4,216        3,867        6,944        8,083        9,180   

Add: Provision for income tax

     22,914        22,137        23,569        45,051        46,539   

Add: Depreciation and amortization

     8,506        7,433        6,475        15,939        12,595   

Add: Stock-based compensation expense

     10,208        13,611        6,768        23,819        11,460   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 112,832      $ 109,347      $ 96,921      $ 222,179      $ 181,110   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Divide by:

          

Revenue

   $ 246,937      $ 229,919      $ 197,148      $ 476,856      $ 380,863   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     45.7     47.6     49.2     46.6     47.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow:

          

Net cash provided by operating activities

   $ 89,621      $ 43,666      $ 61,758      $ 133,287      $ 91,477   

Subtract: Capital expenditures

     14,334        9,264        5,910        23,598        13,249   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

   $ 75,287      $ 34,402      $ 55,848      $ 109,689      $ 78,228   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Represents the reduction in the income tax benefit recorded for all periods presented based on our effective tax rate, adjusted for non-GAAP items.


Safe Harbor Statement

Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to TripAdvisor’s future financial performance on both a GAAP and non-GAAP basis, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, expectations relating to growth and the company’s strategic initiatives, and statements regarding management’s plans, objectives and strategies, constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors detailed in the Company’s filings with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. TripAdvisor is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Investors

(617) 795.7848

ir@tripadvisor.com

Media

(617) 670.6575

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SOURCE: TripAdvisor