TripAdvisor(TRIP) - 2024 Q1 - Quarterly Results

Revenue Performance - Revenue for Q1 2024 was $395 million, representing a year-over-year growth of 6% compared to $371 million in Q1 2023[1]. - Viator's revenue grew by 23% year-over-year to $141 million, with gross bookings value increasing by approximately 15% to around $1 billion[7]. - TheFork's revenue increased by 17% year-over-year to $41 million, with total bookings growing by approximately 10%[8]. - The Brand Tripadvisor segment reported revenue of $240 million, a decline of 2% year-over-year, with branded hotels revenue down 5% to $159 million[6]. - Total revenue for FY 2023 was $1,788 million, with a year-over-year growth of 20%[37]. - The company expects Q1 2024 revenue to be approximately $395 million, indicating a 6% year-over-year growth[37]. Profitability and Loss - Net loss for Q1 2024 was $59 million, or $0.43 loss per share, which includes a $42 million impact from an IRS audit settlement[1][10]. - Non-GAAP net income for Q1 2024 was $17 million, or $0.12 per share, reflecting a 143% increase from $7 million in Q1 2023[3][4]. - Net income for the three months ended March 31, 2024, was a loss of $59 million, an improvement from a loss of $73 million in the same period last year[19]. - GAAP Net Income for Q1 2024 was $(59) million, while Non-GAAP Net Income was $17 million, showing a significant improvement from $(73) million in Q1 2023[34]. Expenses and Costs - Total costs and expenses for Q1 2024 were $410 million, a 6% increase year-over-year, driven by higher costs in revenue, technology, and general administration[4][5]. - Stock-based compensation expense for FY 2023 totaled $96 million, with Q1 2024 at $28 million[34]. - The company expects to incur a $10 million expense related to a regulatory settlement in Q1 2024[36]. Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2024, were approximately $1.2 billion, an increase of $104 million from December 31, 2023[5]. - Net cash provided by operating activities was $139 million, slightly up from $135 million year-over-year[19]. - Cash and cash equivalents at the end of the period were $1,171 million, compared to $1,132 million at the end of the same period last year[19]. - Free cash flow is defined as cash provided by operations less capital expenditures, offering insights into underlying cash flow trends[30]. - Capital expenditures were subtracted from cash flow provided by operations, resulting in Free Cash Flow of $119 million in Q1 2024[34]. Assets and Liabilities - Total assets increased to $2,738 million as of March 31, 2024, up from $2,537 million at December 31, 2023, representing an 8% growth[16]. - Current assets rose to $1,511 million, a 16.5% increase from $1,297 million in the previous period[16]. - Total liabilities increased to $1,913 million, up 14.8% from $1,666 million[16]. - Long-term debt remained stable at $840 million, compared to $839 million in the previous period[16]. - Stockholders' equity decreased to $825 million from $871 million, reflecting a decline of 5.3%[16]. Financial Metrics and Definitions - Tripadvisor defines "non-GAAP net income (loss)" as GAAP net income (loss) excluding several specific items, including stock-based compensation and legal reserves[28]. - Non-GAAP diluted EPS is calculated as non-GAAP net income (loss) divided by GAAP diluted shares, providing a per-share performance measure[28]. - Adjusted EBITDA for Q1 2024 was $47 million, or 12% of revenue, up 42% from $33 million in Q1 2023[3][4]. - Adjusted EBITDA does not reflect cash expenditures or future capital requirements, limiting its usefulness as a comparative measure[27]. - The reconciliation of non-GAAP financial measures to GAAP measures is presented to comply with Regulation G[31]. - Tripadvisor's financial measures aim to provide supplemental information to investors regarding the company's operational performance[30]. Segment Performance - Adjusted EBITDA for FY 2023 reached $334 million, with Q3 2023 contributing $127 million, a notable increase compared to $33 million in Q1 2023[34]. - GAAP Total Brand Tripadvisor Segment Revenue growth was 7% for FY 2023, while the Viator segment saw a 49% increase[34]. - The Tripadvisor segment revenue growth on a constant currency basis was 30% in Q1 2024, while Viator segment revenue growth was 115%[34]. - The company reported a decline in adjusted EBITDA margin for Viator to 7% in Q1 2024[37].