Tripadvisor : TRIP 20251Q Investor Presentation vF

Published: 2025-05-07 11:58:23 ET TRIP

Published on 05/07/2025 at 11:58

Tripadvisor

Q1 FY 2025 Investor Presentation

May 2025

The world's most trusted source for travel and experiences

Strategic position as the leading platform across the traveler journey

BRAND

World's largest online travel guidance platform

Leading global online bookable experiences platform

Leading European online restaurant discovery and booking platform

Large Global Audience

Trusted Brands

Unique, Community-Driven Content

Strong Partner Relationships

Data

Technology

World Class Talent

Tripadvisor 4

Financial Highlights

1Q 2025 Highlights

BRAND

Progressing engagement-led strategy through product delivery

Profile reflects shift from legacy model to scaling engagement-led growth opportunities

Balancing scale, growth, profitability, and market share

10% year over year revenue growth (12% in constant currency*) and meaningful margin expansion

Positioned to drive sustainable profitable growth

12% year over year growth (16% constant currency*) driven by reinvestment of significant cost savings in top line growth initiatives

* Constant currency growth rate is a non-GAAP financial measure. For a reconciliation to reported revenue, please refer to the company's earnings release dated May 7, 2025

Tripadvisor Group: Addressing the traveler journey

BRAND

A diversified position in the large and growing global travel and experiences industry

Revenue Mix % of Total1

2015

LTM 2025 2

47%

2015

LTM 2025 2

2015

LTM 2025 2

43%

91%

LTM 1Q25

Revenue2

$929 million

-10% y/y growth

$855 million

12% y/y growth

$186 million

16% y/y growth

LTM 1Q25 Adj. EBITDA2

(% margin)

$288 million

31%

$43 million

$5 million

Source: Company filings

Note: Adjusted EBITDA is our segment profit measure and is defined as net income (loss) plus: (1) provision (benefit) for income taxes; (2) other income (expense), net; (3) depreciation and amortization; (4) stock-based compensation; (5) goodwill, long-lived assets and intangible asset impairments; (6) legal reserves, settlements, and other (including indirect tax reserves related to audit settlements and the impact of one-time changes resulting from enacted indirect tax legislation); (7) restructuring and other related reorganization costs; (8) transaction-related expenses; and (9) non-recurring expenses and income unusual in nature or infrequently occurring.

Excludes segment eliminations

Last twelve months ending March 31, 2025

Consolidated Results: Quarterly Revenue & Adjusted EBITDA

Consolidated Revenue ($M)

Consolidated Adj. EBITDA ($M)

As % of Rev 12% 20% 23% 18% 11%

Note: Consolidated Adjusted EBITDA is a non-GAAP measure. Please refer to "Non-GAAP Reconciliations" in the Appendix for definitions of our non-GAAP financial measures, as

Quarterly Revenue & Adjusted EBITDA by Segment

Brand Tripadvisor

Viator

TheFork

Revenue ($M)

Adj. EBITDA ($M)

Revenue ($M)

Adj. EBITDA ($M)

Tripadvisor 9

Note: Adjusted EBITDA is our segment profit measure and is defined as net income (loss) plus:(1) provision (benefit) for income taxes; (2) other income (expense), net; (3) depreciation and amortization; (4) stock-based compensation; (5) goodwill, long-lived assets and intangible asset impairments; (6) legal reserves, settlements, and other (including indirect tax reserves related to audit settlements and the impact of one-time changes resulting from enacted indirect tax legislation); (7) restructuring and other related reorganization costs; (8) transaction-related expenses; and (9) non-recurring expenses and income unusual in nature or infrequently occurring.

Quarterly Free Cash Flow & Liquidity

Free Cash Flow ($M)

Liquidity position at 3/31/2025 ($M)

1,651

Tripadvisor

Notes: Q2 2024 cash from operations and free cash flow included a U.S. Federal tax payment of $141 million and Q4 2024 cash from operations included a refund of $42 million, both related to a separate previously disclosed IRS audit settlement.

Cash and cash equivalents of $1,154 million includes approximately $341 million, net of financing costs from proceeds received from the issuance of our Tack-On Incremental Term Loan B Facility, largely offset by the funding of approximately $327 million provided on March 20, 2025 to Liberty Tripadvisor as part of the December 2024 Merger Agreement.

Free cash flow is a non-GAAP measure. Please refer to "Non-GAAP Reconciliations" in the Appendix for definitions of our non-GAAP financial measures, as well as

10 reconciliations to the most directly comparable GAAP measure.

Segment Level Overview

Overview

Trusted source for end-to-end travel guidance

Travelers:

Community-driven insight and engagement through reviews and forums

Bookings for hotels, experiences, restaurants, and other categories

Partners:

Global hotel meta platform

Key advertising platform for travel brands and beyond

Durable asset that is difficult to replicate

✔ Trusted brand

✔ Authentic UGC

✔ Large community of contributors

✔ Large global audience

Global Travel Market Gross Bookings ($T)

1.8

1.4

2019-2026 CAGR

Source: Phocuswright (includes air, hotel, rail, packaged travel, car rental and cruise)

Trip planning the core pillar of engagement

Product, data and technology are enablers of our strategy

Expand our two-track marketplace model

Accelerate experiences

Hotel and other partners

Differentiated app experience

Guidance-led experience

Booking capabilities

Drive more member benefits

Rewarding most engaged travelers

Ability to earn and redeem rewards across bookings

[Brand]

We're almost there! One moment while we transfer you to [Brand] to review your selections and complete your purchase

Deliver world-class guidance through authentic traveler content

Deepen engagement by empowering travelers with planning products

Fuel diverse monetization paths through seamless bookings

~300M

Monthly Unique Users

Global Markets

Summary Highlights

1B+

Reviews & Opinions

+100M

Active Members*

Valuable assets including a trusted brand, global audience, scalable content model, high-intent data, and significant supply footprint

Multiple ways of connecting consumers with our partners

Note: All figures as of year end 2024 unless otherwise noted

Leading global online experiences platform

Overview

Platform connecting travelers and tour operators

Travelers:

Easy discovery of high-quality experiences reviewed and confirmed by travelers

Flexibility to book and cancel

Leading customer service

Operators:

Expanded distribution

Hassle free bookings

Marketing and analytics products to manage and grow their business

Favorable tailwinds for global experiences

✔ Offline to online growing faster than overall market

✔ 4x faster growth of consumer spending on experience-related services v. goods1

1. Phocuswright/Arival

Global Tours and Experiences Market (Gross Bookings $B)

2019-2026 CAGR

Source: Arival and company information

Investment today in building market share

Building scale

Total Gross Booking Value (all POS)

+$4B or

~23% CAGR (2019-2024)

Acquiring users today, building a long-term profitable business

Delivering increasing profitability through

Higher rates of repeat bookers

Higher subsequent repeat order values

GBV that comes increasingly through our most profitable channels

Summary Highlights

$4B+

FY2024 GBV

~400K

Bookable Experiences

~4x more bookable experiences vs closest competitor1

65K+

Operators

Mid-20s

Take Rates

4,000+

Demand Partners

Including Nearly Every Travel Brand

Note: All figures as of year end 2024 unless otherwise noted

All restaurants in Europe

500k+

Restaurants in Top 5 countries*

Leading marketplace for restaurant bookings in Europe

Overview

Platform for European restaurant listings and reservations

Diners:

Restaurant discovery and booking

Photos, reviews, menu and pricing info to guide decision-making

Restaurateurs:

Visibility and reach to diners

Marketing and yield management tools

Digital solution to manage bookings, and optimize operations

Customer behavior data

Leader in an underpenetrated market

✔ Leading player in every EU market in which TheFork operates, currently present in 11 countries across Europe

✔ Unmatched volume and diversity of content in core markets

✔ Primarily app-based bookings

✔ Large repeat user base

55k+

Bookable restaurants

Balancing growth and increasing profitability

Grow restaurant base

Value-add products and services

Tools that elevate partners: booking and yield management, analytic insights and CRM

Reach more travelers

Product focus (app)

Unmatched volume and diversity of content in core markets

Driving awareness in key markets

Drive profitability

Rationalizing footprint to focus on core European markets

Modernized technology platform

Number of Countries Operating

55K+

Bookable Restaurants

~75%

Bookings via Mobile App

20M+

Ratings, Reviews & Photos

75%+

Bookings from Repeat Diners

Note: All figures as of year end 2024 unless otherwise noted

Segment Strategy Summary

Brand Tripadvisor: Focusing on engagement and delivering world-class guidance products to fuel our diverse monetization paths

Viator: Reinforcing our leadership position in experiences by investing in awareness, enhanced products, and repeat bookings to capture more market share

restaurants as the leader in the European dining market

TheFork: Driving profitable revenue growth by delivering value to both diners and

Thank You

Appendix

The Company believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enables comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating and analyzing our business.

(1) Includes a one-time charge of $4 million during the second quarter of 2024, resulting from enacted tax legislation in Canada during June 2024 related to digital services taxes, which required retrospective application back to January 1, 2022. This amount represents the one-time retrospective liability for the periods prior to April 1, 2024, while all prospective periods are included within Adjusted EBITDA. In addition, this amount includes an estimated accrual for the potential settlement of a regulatory related matter of $10 million, expensed during the first quarter of 2024.

(2) Depreciation and amortization. Includes capitalized website development amortization.

(3) Adjusted EBITDA. A non-GAAP measure which is defined as net income (loss) plus: (1) provision (benefit) for income taxes; (2) other income (expense), net; (3) depreciation and amortization; (4) stock-based compensation; (5) goodwill, intangible asset, and long-lived asset impairments; (6) legal reserves, settlements and other, including indirect tax reserves related to audit settlements and the impact of one-time changes resulting from enacted indirect tax legislation; (7) restructuring and other related reorganization costs; (8) transaction related expenses; and (9) non-recurring expenses and income unusual in nature or infrequently occurring. These items are excluded from our Adjusted EBITDA measure because these items are noncash in nature, or because the amount is not driven by core operating results and renders comparisons with prior periods less meaningful.

(4) Free Cash Flow. A non-GAAP measure which is defined as net cash provided by operating activities less capital expenditures, which are purchases of property and equipment, including capitalization of website development costs. We believe this financial measure can provide useful supplemental information to help investors better understand underlying trends in our business, as it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the unaudited condensed consolidated statements of cash flows.

We use the operating metric described below to assist us in measuring our operations performance, identifying trends, formulating projections and making strategic decisions for the Viator segment. We are not aware of any uniform standards for calculating this metric, which may hinder comparability with other companies that may calculate similarly titled metrics in a different way. Management believes it is useful to monitor this metric together and not individually as it does not make business decisions based upon any single metric. We regularly review our processes and may adjust how we calculate this metric to improve its accuracy. We make this key metric available to investors because we believe it is useful both because it allows for greater transparency with respect to key metrics used by management in its financial and operational

decision-making, and because it may be used to help analyze the health of our business. This metric should not be considered as an alternative to any measure of financial performance calculated in accordance with GAAP.

Gross Booking Value ("GBV") represents the total dollar value of experience bookings powered by the Viator platform in a given period prior to any adjustments such as date changes, refunds or cancellations. GBV is an operational measure that provides an indication of total engagement and economic activity driven by our platform in a given period by all marketplace constituents (travelers, experience operators, and partners). Management uses GBV for operational decision-making purposes to monitor the growth, scale, and reach of its online marketplace as well as assess the health of its global ecosystem. Accordingly, management does not consider GBV to be an indicator of revenue or any other financial statement measure.

Disclaimer

TripAdvisor Inc. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 15:57 UTC.