TripAdvisor(TRIP)2025-02-20 12:05Business Segments - Tripadvisor operates across three business segments: Brand Tripadvisor, Viator, and TheFork, connecting a global audience with travel experiences [207]. - Brand Tripadvisor has over 1 billion user-generated reviews and opinions on more than 9 million experiences, attracting hundreds of millions of visitors annually [208]. - Viator offers nearly 400,000 bookable experiences from over 65,000 operators, focusing on enhancing brand loyalty and user experience [209]. - TheFork has a network of approximately 55,000 partner restaurants across 11 countries, with nearly 40 million app downloads and over 20 million reviews [210]. Financial Performance - Revenue for fiscal year 2024 was $1,835 million, a 3% increase compared to $1,788 million in 2023, and a 20% increase from $1,492 million in 2022 [231]. - Total costs and expenses for fiscal year 2024 were $1,743 million, reflecting a 5% increase from $1,662 million in 2023, and a 19% increase from $1,391 million in 2022 [231]. - Net income for fiscal year 2024 was $5 million, a 50% decrease compared to $10 million in 2023, and a 50% decrease from $20 million in 2022 [231]. - Adjusted EBITDA for fiscal year 2024 was $339 million, a 1% increase from $334 million in 2023, and a 13% increase from $295 million in 2022 [231]. Segment Revenue Changes - Revenue from the Brand Tripadvisor segment decreased by $82 million to $949 million in 2024, an 8% decline compared to $1,031 million in 2023 [235]. - Tripadvisor-branded hotels revenue decreased by $74 million to $585 million in 2024, primarily due to a decrease in hotel meta revenue [239]. - Viator segment revenue increased by $103 million to $840 million in 2024, a 14% increase compared to $737 million in 2023 [245]. - TheFork segment revenue increased by $27 million to $181 million in 2024, an 18% increase compared to 2023, driven by higher booking volumes and pricing adjustments [249]. Expenses and Costs - Total marketing expenses rose by $24 million to $729 million in 2024, primarily due to increased costs in the Viator and TheFork segments [260]. - Personnel costs increased by $1 million to $595 million in 2024, with stock-based compensation rising by $24 million to $120 million [266]. - General and administrative expenses increased by $12 million to $91 million in 2024, largely due to a $10 million accrual for a potential regulatory settlement [278]. - Cost of sales increased by $12 million to $131 million in 2024, primarily due to higher direct costs associated with credit card processing fees [254]. Debt and Financing - The company plans to acquire Liberty TripAdvisor for approximately $435 million, including $392 million in cash and shares, with an expected closing in Q2 2025 [216]. - A $500 million Term Loan B Facility was issued on July 8, 2024, maturing in 2031, to redeem outstanding Senior Notes [219]. - The Company completed the sale of $345 million of the 2026 Senior Notes, which have an interest rate of 0.25% per annum, payable semi-annually until maturity on April 1, 2026 [307]. - The Company issued a $500 million Term Loan B Facility on July 8, 2024, maturing on July 8, 2031, with an interest rate of SOFR plus 2.75% [308]. Cash Flow and Investments - During the year ended December 31, 2024, net cash provided by operating activities was $144 million, a decrease of $91 million compared to 2023 [319]. - The Company repurchased 1,366,385 shares of its common stock at an average price of $18.28 per share, totaling $25 million during the year ended December 31, 2024 [311]. - Net cash used in investing activities increased by $10 million in 2024 compared to 2023, primarily due to higher capital expenditures [321]. Market Outlook and Growth - The global experiences market is expected to grow as consumers increasingly book experiences online, benefiting Tripadvisor's segments [214]. - Overall, the company remains optimistic about future growth, citing strong demand and a robust pipeline of new products [353]. - Market expansion efforts led to a 25% increase in international sales, particularly in the Asia-Pacific region [353]. - The company provided guidance for the next quarter, expecting revenue to be between $62 billion and $64 billion, indicating a growth rate of 5% to 7% [353]. Regulatory and Audit Matters - The company is under audit by the IRS and various other tax authorities, which could materially affect its financial position and results of operations [333]. - The company made a payment of $141 million to the IRS in connection with an audit settlement during the second quarter of 2024 [314]. Currency and Foreign Operations - A hypothetical 10% decrease in foreign currency exchange rates relative to the U.S. dollar would generate an estimated unrealized loss of approximately $35 million related to a decrease in net assets as of December 31, 2024 [347]. - The company recorded net foreign currency exchange losses of $3 million, $5 million, and $9 million for the years ended December 31, 2024, 2023, and 2022, respectively [348].