Tripadvisor, Inc. is a leading global travel technology company that operates a family of well-known brands, including Tripadvisor, Viator, and TheFork. The company has demonstrated resilience in navigating the dynamic travel industry, leveraging its extensive user-generated content, large global audience, and innovative product offerings to drive sustainable growth.
The Tripadvisor Group operates across three reportable segments: Brand Tripadvisor, Viator, and TheFork. Brand Tripadvisor serves as the world's most trusted and essential travel guidance platform, offering travelers an online global platform to discover, generate, and share authentic user-generated content in the form of ratings and reviews. Viator enables travelers to discover and book iconic, unique, and memorable experiences from operators around the globe, while TheFork provides an online marketplace that enables diners to discover and book online reservations at approximately 55,000 restaurants across Europe.
Tripadvisor has built a strong foundation over its 24-year history, amassing a global audience of hundreds of millions of visitors annually and a vast repository of over 1 billion user-generated ratings and reviews. The company's strategy is focused on leveraging these core assets to provide travelers with a compelling user experience, drive deeper engagement, and diversify its monetization streams across its key offerings in accommodations, experiences, and dining.
Financial Performance
In the fiscal year 2023, Tripadvisor reported annual revenue of $1,788 million, annual net income of $100 million, annual operating cash flow of $235 million, and annual free cash flow of $172 million. The company's financial performance has demonstrated resilience, with the travel industry's recovery from the COVID-19 pandemic and the company's strategic initiatives driving improved results.For the first quarter of 2024, Tripadvisor reported revenue of $395 million, a 6% increase compared to the same period in 2023. Adjusted EBITDA for the quarter was $47 million, representing a 42% year-over-year improvement. The company's segment performance was mixed, with the Brand Tripadvisor segment reporting a 2% revenue decline, while Viator and TheFork segments delivered strong growth of 23% and 17%, respectively.
Segment Performance
Brand Tripadvisor
The Brand Tripadvisor segment reported revenue of $240 million in the first quarter of 2024, a 2% decline compared to the same period in 2023. This decline was primarily driven by a 5% decrease in Tripadvisor-branded hotels revenue, which was partially offset by a 10% increase in media and advertising revenue and a 9% increase in Tripadvisor experiences and dining revenue.The company's focus on engagement-led strategies, such as enhancing the mobile app experience, shifting marketing efforts to reinforce engagement, and leveraging data and AI to deliver personalized content, has shown promising results. Tripadvisor has seen improvements in key metrics, including overall audience, active members, and app users, as well as average revenue per user.
Viator
Viator's revenue grew 23% year-over-year to $141 million in the first quarter of 2024, driven by strong consumer demand for experiences across all geographies. The segment's gross booking value (GBV) grew 15% to approximately $1 billion, reflecting both volume and pricing growth. Viator continues to focus on balancing growth, profitability, and market share, with a strategic emphasis on building brand awareness, improving the customer experience, and driving repeat bookings.TheFork
TheFork's revenue grew 17% year-over-year to $41 million in the first quarter of 2024, driven by a combination of increased booking volume and pricing growth. The segment's adjusted EBITDA loss improved significantly, from a loss of $9 million in the first quarter of 2023 to a loss of $4 million in the first quarter of 2024, reflecting lower personnel costs and improved operational efficiency.Liquidity and Capital Resources
As of March 31, 2024, Tripadvisor had $1.2 billion in cash and cash equivalents and $497 million of available borrowing capacity under its revolving credit facility. The company's strong liquidity position provides financial flexibility to support its strategic initiatives and navigate potential macroeconomic uncertainties.Outlook and Guidance
For the full year 2024, Tripadvisor expects consolidated revenue to grow in the low- to mid-single digits and adjusted EBITDA to be flat to low single-digit growth. The company's outlook reflects a more cautious view, primarily due to expected trends in the second quarter, including the impact of a recent search engine algorithm update and the timing of the Easter holiday.At the Brand Tripadvisor segment, the company expects revenue declines in the mid-single digits for the full year, as it continues to execute on its strategic transformation initiatives. Viator is expected to see a step-down in revenue growth compared to 2023, as the segment prioritizes the balance between growth, profitability, and market share. TheFork is expected to achieve full-year profitability in 2024, with a step-down in revenue growth from the prior year.