(in $millions, except per share amounts and percentages)
Reconciliation from GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP): GAAP Net Income (Loss)
Add: Provision (benefit) for income taxes (1)(2) Add: Other expense (income), net
Add: Restructuring and other related reorganization costs Add: Impairment of goodwill
Add: Legal reserves and settlements Add: Stock-based compensation expense Add: Depreciation and amortization (3)
Adjusted EBITDA (Non-GAAP) (4)
Reconciliation from GAAP Net Income (Loss) to Non-GAAP Net Income (Loss): GAAP Net Income (Loss)
Add: Stock-based compensation expense
2018
Q1
Q2
Q3
Q4
$5 16 2 - - - 29 28 $80
$32 10 7 - - - 31 29 $109
$69
$7
18 15
2 1
- - - 29 28 $146
- - 5 28 31 $87
$5 29
$32 31
$69 $7
29 28
Add: Legal reserves and settlements - - - 5
Add: Restructuring and other related reorganization costs Add: Impairment of goodwill
Add: Amortization of intangible assets Add: (Gain)/Loss on investments Add: Loss on sale of business
Add: Income tax impact related to U.S. Tax Cuts and Jobs Act of 2017 (1) Subtract: Income tax effect of Non-GAAP adjustments (5)
Subtract: Income tax impact related to CARES Act (2)
Non-GAAP Net Income (Loss) (6)
Reconciliation from GAAP Earnings per Share (EPS) to Non-GAAP EPS: GAAP Diluted Shares Outstanding (7)
GAAP Diluted Earnings (Loss) per Share Non-GAAP Diluted EPS (8)
Ex-Foreign Exchange Reconciliation: GAAP Total Revenue growth
Estimated effects of foreign exchange (9)
Non-GAAP Total Revenue growth before fx effect
Adjusted EBITDA growth (Non-GAAP)
Estimated effects of foreign exchange (9)
Non-GAAP Adjusted EBITDA growth before fx effect
Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow: Cash flow provided by (used in) operations
Subtract: Capital expenditures
Free Cash Flow (Non-GAAP) (10)
2019
2020
140 $0.04
$0.30
$174 15 $159
10% 7% 3%
$42
(3)%
2% 5%
- - 8 - - 5 5 -
140 $0.23
$0.41
$186 16 $170
$58
2% 2% (0)%
8% 5% 3%
- - 8 - - (5) 8 -
141 141 $0.49 $0.05 $0.72 $0.27
- - 8 (1) - 2 6 - $101
4% 8% (1)% (1)% 5% 9% 54% 38%
(2)% 56%
$14 15 ($1)
(3)% 41%
- - 10 - - (2) 10 - $38
$31 16 $15
FY*
140 $0.81 $1.71
$113
$113 118 5 - - 34 (1)
116 $422
- - 29 - $240
$405 61 $344
4% 1% 3% 27%
1% 26%
118
60
10 - -
5
Q1
141 $0.18 $0.36
$165
$182 17
(1%)
(3%) 2% 11%
(7%) 18%
$26
$26 27 - - - 8 - - - 10 - $51
- - - 27 31 $89
7 (2)
Q2
141 $0.24 $0.45
- - - 32 30 $128
$160
$181 21
(3%)
(3%) 0% 17%
(5%) 22%
$34
$34 32 - - - 7 - - - 9 - $64
34 (2)
Q3
140 140 $0.36 $0.11 $0.58 $0.38
(12%) 6%
- - - 29 32 $129
($22)
(7%) (3%)
(2%) (1%) (5%) (2%)
(3%) (9%)
$50
$50 29 - - - 9 - - - 7 - $81
$1 23
23 (5)
Q4
(1%) 7%
$15
$15 35 - 1 - 10 1 - - 9 - $53
33 $92
$37
$59 22
35
5
3
1 - -
FY*
141 $0.89 $1.77
$126
$126 124 - 1 - 33 1 - - 35 - $250
126 $438
$341
$424 83
(3%)
(2%) (1%)
(3%) 7%
124
4%
68
(7)
1 - -
($0.12) (0.54)
Q1 | Q2 | Q4 | FY* |
($16) | ($153) | (73) $ | (289) |
(11) | (26) | (31) | (80) |
- | 15 | 12 | 40 |
33 | (1) | 41 | |
- | 3 | - | 3 |
- | - | - | - |
25 | 28 | 29 | 109 |
32 | 30 | 31 | 125 |
($74) | $15 | ($33) | ($51) |
($153) | ($48) | ($73) | ($289) |
25 | 28 | 29 | 109 |
- | - | - | - |
33 | - | (1) | 41 |
- | 3 | - | 3 |
6 | 6 | 6 | 26 |
(1) | (1) | (1) | (3) |
5 | - | - | 6 |
- | - | - | - |
12 | 8 | 14 | 37 |
5 | 3 | 1 | 23 |
($102) | ($23) | ($55) | ($167) |
134 | 134 | 135 | 135 |
($1.14) | ($0.36) $ | (2.14) | |
($0.76) | ($0.17) $ | ($1.24) | |
(86%) | (65%) | (61)% | |
0% | 0% | 0% | |
(86%) | (65%) | (61)% | |
n.m. | (88%) | n.m. | |
n.m. | 1% | n.m. | |
n.m. | (89%) | n.m. | |
($78) | ($31) | (194) | |
15 | 11 | 55 | |
($93) | ($42) | ($249) |
Q3
($48) $
9 - - 26 32 $40
(10) 12 -($16) 26 - 9 - 7 (1)
- - 2 14 $9
138
$0.07 (0.41)
(26%) (65)%
(1%) 1%
(25%) (66)%
$
(55%)
n.m.
(1%) (54%)n.m n.m.
($70) 20
(15) 9
($90)
($24)
(in $millions, except percentages)
Segments - Revenue:
Total Revenue
Growth % (y/y)
Hotels, Media & Platform
Growth % (y/y)
TripAdvisor-branded hotels
Growth % (y/y)
TripAdvisor-branded display and platform
Growth % (y/y)
Experiences & Dining
Growth % (y/y)
Other (11)
Growth % (y/y)
Percent of Total Revenue:
TripAdvisor-branded hotels TripAdvisor-branded display and platform Experiences & Dining
Other (11)
GAAP Net Income (Loss): (12) GAAP Net Income (Loss)
Growth % (y/y)
GAAP Net Income (Loss) margin
Segments - Adjusted EBITDA: Total Adjusted EBITDA (4)
Growth % (y/y)
Hotels, Media & Platform
Growth % (y/y)
Experiences & Dining
Growth % (y/y)
Other (11)
Growth % (y/y)
Percent of Total Adjusted EBITDA:
Hotels, Media & Platform Experiences & Dining Other (11)
Adjusted EBITDA Margin by Segment:
Total (13)
Hotels, Media & Platform Experiences & Dining Other (11)
2018
2019
2020
Q1
Q2
Q3
Q4
FY*Q1
Q2
Q3
Q4
FY*Q1
Q2
Q3
Q4
FY*
$378 2% 253
$433 2% 272
$458 $346 4% 8% 270 206 2% (1)%
$1,615 4% 1,001
$376
$422
$428 $335
$1,560
$278
$59
$151 $116
$604
(1)%
(3)%
(7)% (3)%
(3)%
(26)%
(86)%
(65)% (65)%
(61)%
254 0% 216
254
238 194
939
169
38
80 74
361
(6)%
(3)%
(2)%
(7)%
(12)% (6)%
(6)%
(33)%
(85)%
(66)% (62)%
(62)%
217
231
229 170 3% 2% 41 36
848
211
197 155
779
137
31
67 57
292
36 13% 62 51% 63 3%
(9)%
(10)%
41 3% 98 32% 63
(4)%
(19)% (12)%
118 94 34% 54% 70 46
(2)% (14)%
(62)%
57% 10% 16% 17%
$80 10% 77
67% 7 75%
(5)%
$5
1%
(4)
$109 8% 85 9% 16 23% 8
(20)%
53% 9% 23% 15%
$32 19% 7%
176% n.m.
$146 $87 54% 38% 97 70 102% 17% 28 9 27% n.m.
(16)% 167%
50% 49% 9% 11% 26% 27% 15% 13%
$69
15%
21 8
$7
2%
96% (5)% 9%
78% 15% 7%
67% 81% 19% 10% 14% 9%
78% 11% 11%
118% (27)%
9%
84% 6% 10%
72% 79% 12% 8% 16% 13%
21% 30% (6)% 11%
25% 31% 16% 13%
32% 25% 36% 34% 24% 10% 30% 17%
26% 33% 13% 19%
24% 41% (30)% 19%
30% 43% 6% 30%
30% 27% 39% 38% 11% 6% 43% 38%
28% 40% 1% 33%
14% 31% (23)% 23%
(125)% (87)% (271)% (43)%
10% (28)%
56% 17%
5% (16)%
2% (61)%
4% (42)% 26%
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 an estimated U.S. Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") transition tax expense of $2 million and $5 million for the three months ended September 30, 2018 and March 31, 2018, respectively; a transition tax benefit of $5 million for the three months ended June 30, 2018; as well as a tax benefit of $2 million related to the remeasurement of deferred taxes for the three months ended December 31, 2018, respectively.
(2) Relates to tax benefits recorded by the Company, pertaining to the tax rate differential in tax years applicable to U.S. loss carryforwards that become eligible for carryback under the CARES Act enacted in March 2020.
(3) Depreciation and amortization. Includes internal use software and website development amortization.
(4) 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 and other stock-settled obligations; (5) goodwill, long-lived assets and intangible asset impairments; (6) legal reserves and settlements; (7) restructuring and other related reorganization costs; and (8) non-recurring expenses and income. 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.
(5) Income Tax Effect of Non-GAAP Adjustments. The non-GAAP adjustments described are reported on a pre-tax basis. The income tax effect on non-GAAP adjustments was calculated based on the individual impact that these items had on our GAAP consolidated income tax expense for the periods presented.
(6) Non-GAAP Net Income (Loss). Defined as GAAP net income (loss) excluding, net of their related tax effects (which excludes the impact of significant one time changes resulting from tax legislation such as the 2017 Tax Act): (1) stock-based compensation expense and other stock-settled obligations; (2) amortization of intangible assets; (3) goodwill, intangible asset, and other long-lived asset impairments; (4) legal reserves and settlements; (5) restructuring and other related reorganization costs; and (6) certain gains, losses, and other non-recurring income or expenses that we do not believe are indicative of our ongoing operating results. We believe non-GAAP net income is an operating performance measure which provides investors and analysts with useful supplemental information about the financial performance of our business, as it incorporates our unaudited condensed consolidated statement of operations, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of certain expenses, infrequently occurring items and items not directly tied to the core operations of our businesses, and also enables comparison of financial results between periods where certain items may vary independent of business performance.
(7) GAAP Diluted Shares Outstanding. Includes potential dilutive effect of common equivalent shares as if the Company had generated net income for the three months ended March 31, 2020 when calculating non-GAAP diluted EPS given the Company had non-GAAP net income; but a GAAP net loss in that period. In periods of a non-GAAP net loss, common equivalent shares are excluded from the calculation of non-GAAP Diluted EPS as their inclusion would have an antidilutive effect.
(8) Non-GAAP Diluted EPS. Defined as non-GAAP net income (loss) divided by GAAP diluted shares. We believe non-GAAP EPS is useful to investors because it represents, on a per share basis, our unaudited condensed consolidated statement of operations, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, interest income, income taxes and foreign exchange gains or losses, but excluding the effects of certain expenses not directly tied to the core operations of our businesses.
(9) Foreign Exchange Impact. Calculated on a constant currency basis by excluding the estimated effects of foreign exchange on revenue and expenses by translating actual revenue and expenses for the current year three months ended using the prior period exchange rates. We believe this is a useful measure that facilitates management's internal comparison to our historical performance because it excludes the effects of foreign currency volatility that is not indicative of our core operating results.
(10) 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 internal-use software 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.
(11) Other consists of the combination of our Rentals, Flights & Car, and Cruises and does not constitute a reportable segment.
(12) The Company does not calculate or report net income by segment.
(13) Adjusted EBITDA Margin. Defined as Adjusted EBITDA divided by Revenue.
* Full-year and year-to-date totals reflect data as reported and may differ from the summation of the quarterly data due to rounding.
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TripAdvisor Inc. published this content on 18 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 February 2021 21:13:07 UTC.