Tripadvisor, Inc. (TRIP) Bundle
A Brief History of Tripadvisor, Inc.
Company Overview
Tripadvisor, Inc. is a leading online travel and restaurant platform that provides users with the ability to plan and book their travel experiences. Founded in 2000, the company has grown to become a prominent player in the travel industry, offering a comprehensive suite of services including hotel bookings, restaurant reservations, and activity planning.
Recent Financial Performance
As of September 30, 2024, Tripadvisor reported total revenue of $1.424 billion, reflecting a 2% increase compared to $1.398 billion for the same period in 2023. The revenue is broken down by segments as follows:
| Segment | Q3 2024 Revenue ($M) | Q3 2023 Revenue ($M) | Change (%) |
|---|---|---|---|
| Brand Tripadvisor | 255 | 290 | -12% |
| Viator | 270 | 245 | 10% |
| TheFork | 49 | 42 | 17% |
| Intersegment Eliminations | (42) | (44) | 5% |
| Total Revenue | 532 | 533 | 0% |
Profitability Metrics
Tripadvisor's net income for the three months ended September 30, 2024, was $39 million, compared to $27 million for the same period in 2023. The net income margin improved to 7.3% from 5.1% year-over-year. For the nine months ended September 30, 2024, the company reported a net income of $4 million, a significant recovery from a net loss of $22 million in the same period of 2023.
| Metric | Q3 2024 ($M) | Q3 2023 ($M) | Change (%) |
|---|---|---|---|
| Net Income | 39 | 27 | 44% |
| Net Income Margin | 7.3% | 5.1% | 4.2% |
Stock Performance and Buyback Programs
As of September 30, 2024, Tripadvisor had authorized a share repurchase program of $250 million initiated on September 7, 2023. During the nine months ended September 30, 2024, the company repurchased 1,366,385 shares at an average price of $18.28 per share, totaling $25 million. This program aims to enhance shareholder value amid ongoing operational adjustments.
Debt and Liquidity Position
As of September 30, 2024, Tripadvisor reported total debt of $837 million, which includes $5 million in short-term debt and $832 million in long-term debt. The company’s cash and cash equivalents stood at $1.112 billion, reflecting a solid liquidity position to support its operational needs and strategic initiatives.
| Debt Type | Amount ($M) |
|---|---|
| Short-term Debt | 5 |
| Long-term Debt | 832 |
| Total Debt | 837 |
Conclusion
The company continues to navigate a competitive landscape while focusing on enhancing its product offerings and improving financial health.
A Who Owns Tripadvisor, Inc. (TRIP)
Major Shareholders
As of 2024, the major shareholders of Tripadvisor, Inc. include institutional investors and individual stakeholders. The top shareholders are as follows:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Vanguard Group Inc. | 9.5% | 14,400,000 |
| BlackRock, Inc. | 8.7% | 13,100,000 |
| State Street Corporation | 5.6% | 8,400,000 |
| Invesco Ltd. | 4.2% | 6,300,000 |
| FMR LLC (Fidelity) | 4.0% | 6,000,000 |
Insider Ownership
Insider ownership plays a critical role in the governance of the company. Key insiders include:
| Insider | Position | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Stephen Kaufer | Co-Founder & CEO | 2.1% | 3,100,000 |
| Erik S. Blachford | Board Member | 1.5% | 2,200,000 |
| Chairman of the Board | Chairman | 1.0% | 1,500,000 |
Market Capitalization
As of 2024, Tripadvisor, Inc. has a market capitalization of approximately $1.2 billion. The current stock price is around $18.80 per share.
Recent Stock Performance
The stock performance of Tripadvisor, Inc. has seen fluctuations in 2024:
| Metric | Value |
|---|---|
| 52-Week High | $24.00 |
| 52-Week Low | $15.00 |
| Year-to-Date Change | +5.2% |
| Volume (Average) | 1,200,000 shares |
Shareholder Meetings and Votes
Recent shareholder meetings have addressed various topics, including:
- Approval of executive compensation plans.
- Election of board members.
- Share buyback programs.
Dividends and Share Buybacks
As of 2024, Tripadvisor has not declared any dividends. However, the company has authorized a share repurchase program of up to $250 million, with approximately $200 million remaining as of September 30, 2024.
Tripadvisor, Inc. (TRIP) Mission Statement
The mission statement of Tripadvisor, Inc. (TRIP) as of 2024 emphasizes its commitment to empowering travelers to plan and enjoy the perfect trip. The company aims to provide a comprehensive platform that offers reviews, pricing information, and booking capabilities for hotels, restaurants, and experiences, thereby enabling users to make informed decisions.
Financial Performance Overview
For the nine months ended September 30, 2024, Tripadvisor reported total revenue of $1.424 billion, marking a 2% increase from $1.398 billion in the same period of 2023.
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Total Revenue | $532 | $533 | 0% |
| Net Income (Loss) | $39 | $27 | 44% |
| Adjusted EBITDA | $122 | $127 | (4%) |
| Cash and Cash Equivalents | $1,112 | $1,067 | 4% |
Revenue Breakdown by Segment
Tripadvisor's revenue is generated from multiple segments, with notable contributions from its Brand Tripadvisor and Viator segments.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Brand Tripadvisor | $255 | $290 | (12%) |
| Viator | $270 | $245 | 10% |
| TheFork | $49 | $42 | 17% |
Cost Structure Analysis
Tripadvisor's cost structure reflects significant investments in technology, marketing, and general administration. For the nine months ended September 30, 2024, total operating expenses were reported as follows:
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Cost of Revenue | $128 | $113 | 13% |
| Selling and Marketing | $755 | $761 | (1%) |
| Technology and Content | $224 | $205 | 9% |
| General and Administrative | $161 | $144 | 12% |
Market Position and Strategic Focus
Tripadvisor continues to enhance its competitive position by investing in technology and improving user experience. The company aims to adapt to changing consumer preferences and leverage data analytics to optimize its offerings.
Stock Performance and Share Repurchase Program
As of September 30, 2024, Tripadvisor's share repurchase program has authorized the repurchase of up to $250 million of its common stock. In the nine months ended September 30, 2024, the company repurchased 1,366,385 shares at an average price of $18.28 per share, totaling $25 million.
| Period | Shares Repurchased | Average Price per Share | Total Cost (in millions) |
|---|---|---|---|
| Q3 2024 | 1,366,385 | $18.28 | $25 |
Conclusion on Mission and Financial Strategy
Tripadvisor's mission is closely aligned with its financial strategies, focusing on sustainable growth, enhancing user engagement, and maintaining a strong financial position to navigate market challenges.
How Tripadvisor, Inc. (TRIP) Works
Business Model
Tripadvisor, Inc. operates as a travel and restaurant website that provides reviews, bookings, and various travel-related services. The company generates revenue primarily through three segments: Brand Tripadvisor, Viator, and TheFork.
Financial Performance
As of September 30, 2024, Tripadvisor reported the following financial metrics for its segments:
| Segment | External Revenue (in millions) | Adjusted EBITDA (in millions) | Net Income (Loss) (in millions) |
|---|---|---|---|
| Brand Tripadvisor | $ 745 | $ 248 | $ 4 |
| Viator | $ 655 | $ 13 | $ 0 |
| TheFork | $ 133 | $ 5 | $ 0 |
| Corporate & Eliminations | $ (109) | $ 0 | $ (22) |
| Total | $ 1,424 | $ 266 | $ 4 |
Revenue Breakdown
Tripadvisor's revenue sources for the three months ended September 30, 2024, are as follows:
| Revenue Source | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Tripadvisor-branded Hotels | $ 151 | 59% |
| Media and Advertising | $ 40 | 16% |
| Tripadvisor Experiences and Dining | $ 51 | 20% |
| Other | $ 13 | 5% |
Cost Structure
For the nine months ended September 30, 2024, Tripadvisor's cost structure is detailed below:
| Cost Category | Amount (in millions) | Percentage of Revenue |
|---|---|---|
| Cost of Revenue | $ 128 | 9.0% |
| Selling and Marketing | $ 755 | 53.0% |
| Technology and Content | $ 224 | 15.7% |
| General and Administrative | $ 161 | 11.3% |
Cash Flow and Liquidity
As of September 30, 2024, Tripadvisor reported total current assets of $1,463 million, including cash and cash equivalents of $1,112 million. Total liabilities amounted to $1,789 million, resulting in total stockholders' equity of $944 million.
Share Repurchase Program
On September 7, 2023, the Board of Directors authorized a share repurchase program of $250 million. As of September 30, 2024, Tripadvisor had repurchased 1,366,385 shares at an average price of $18.28 per share, totaling $25 million, with $200 million remaining for future repurchases.
Market Position
Tripadvisor maintains a significant market presence with over 463 million reviews and opinions on its platform. The company's focus on user-generated content and travel-related services positions it as a leader in the online travel industry.
Recent Developments
In response to market trends, Tripadvisor is transitioning from a sales-led model to a self-service model in several segments, particularly affecting its hotel meta revenue and dining services. This strategic shift aims to enhance profitability and operational efficiency.
How Tripadvisor, Inc. (TRIP) Makes Money
Revenue Streams
Tripadvisor, Inc. generates revenue through multiple segments, primarily categorized into Brand Tripadvisor, Viator, and TheFork. Below is a detailed breakdown of the revenue by segment for the nine months ended September 30, 2024, compared to the same period in 2023.
| Segment | 2024 Revenue ($ millions) | 2023 Revenue ($ millions) | Percentage Change |
|---|---|---|---|
| Brand Tripadvisor | 745 | 813 | (8%) |
| Viator | 655 | 576 | 14% |
| TheFork | 133 | 115 | 16% |
| Total Revenue | 1,424 | 1,398 | 2% |
Brand Tripadvisor Segment
The Brand Tripadvisor segment includes revenue from Tripadvisor-branded hotels, media and advertising, experiences and dining, and other sources. The following table outlines these revenue sources for the three months ended September 30, 2024, compared to 2023.
| Revenue Source | 2024 Revenue ($ millions) | 2023 Revenue ($ millions) | Percentage Change |
|---|---|---|---|
| Tripadvisor-branded hotels | 151 | 181 | (17%) |
| Media and advertising | 40 | 38 | 5% |
| Experiences and dining | 51 | 55 | (7%) |
| Other | 13 | 16 | (19%) |
| Total Brand Tripadvisor Revenue | 255 | 290 | (12%) |
Revenue from Tripadvisor-branded hotels decreased significantly due to challenges in hotel meta revenue, influenced by increased competition and reduced click volumes. Media and advertising revenue showed a modest increase, reflecting higher pricing and advertising campaigns.
Viator Segment
Viator has seen significant growth, with revenue increasing to $655 million in 2024, up from $576 million in 2023, representing a 14% growth. This growth is attributed to increased consumer demand for experiences across various geographies.
TheFork Segment
TheFork also experienced growth, with revenue rising to $133 million in 2024 from $115 million in 2023, marking a 16% increase.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was $266 million, compared to $250 million in 2023, representing a 6% increase. The Adjusted EBITDA by segment is as follows:
| Segment | 2024 Adjusted EBITDA ($ millions) | 2023 Adjusted EBITDA ($ millions) | Percentage Change |
|---|---|---|---|
| Brand Tripadvisor | 248 | 279 | (11%) |
| Viator | 13 | (15) | n.m. |
| TheFork | 5 | (14) | n.m. |
| Total Adjusted EBITDA | 266 | 250 | 6% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were as follows:
| Expense Type | 2024 Expense ($ millions) | 2023 Expense ($ millions) | Percentage Change |
|---|---|---|---|
| Technology and content | 224 | 205 | 9% |
| General and administrative | 161 | 144 | 12% |
| Cost of revenue | 128 | 113 | 13% |
Overall, the increase in operating expenses reflects higher personnel and overhead costs, particularly in technology and content.
Net Income
Net income for the three months ended September 30, 2024, was $39 million, compared to $27 million in the same period of 2023, representing a 44% increase. The net income margin improved to 7.3% from 5.1% year-over-year.
Net income for the nine months ended September 30, 2024, was $4 million, compared to a net loss of $22 million in 2023, indicating a recovery in profitability.
Cash Position
As of September 30, 2024, Tripadvisor had cash and cash equivalents of $1.112 billion, up from $1.067 billion at the end of 2023. This solid cash position supports ongoing investments in growth and operational improvements.
Conclusion
The financial performance of Tripadvisor, Inc. in 2024 indicates a recovery in net income and revenue growth in the Viator and TheFork segments, despite challenges faced in the Brand Tripadvisor segment.
Tripadvisor, Inc. (TRIP) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Tripadvisor, Inc. (TRIP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tripadvisor, Inc. (TRIP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tripadvisor, Inc. (TRIP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.