TripAdvisor (TRIP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $532 million, flat year-over-year, with Adjusted EBITDA of $122 million (23% margin), and all three segments—Brand Tripadvisor, Viator, and TheFork—profitable.

• Net income rose 44% to $39 million, driven by lower restructuring costs and reduced income tax expense.

• Viator and TheFork delivered double-digit revenue growth, offsetting a 12% decline in Brand Tripadvisor revenue.

• CEO highlighted operational rigor and segment strategies as drivers of profitability.

• Strategic focus remains on scaling growth drivers, especially in experiences and dining, while managing legacy Hotel Meta headwinds.

Financial highlights

• Q3 2024 revenue: $532 million (flat year-over-year); net income: $39 million; Adjusted EBITDA: $122 million (23% margin).

• Brand Tripadvisor revenue declined 12% to $255 million; Adjusted EBITDA was $87 million (34% margin).

• Viator revenue grew 10% to $270 million, with gross booking value up 9% to $1.1 billion; Adjusted EBITDA was $30 million (11% margin).

• TheFork delivered record revenue of $49 million, up 17% year-over-year, and Adjusted EBITDA of $5 million (10% margin).

• Cash and cash equivalents stood at $1.1 billion as of September 30, 2024.

Outlook and guidance

• Full-year 2024 revenue and Adjusted EBITDA expected in line with prior outlook; consolidated Adjusted EBITDA margin to deleverage by 100 basis points year-over-year.

• Q4 revenue growth expected to accelerate sequentially to low/mid-single digits year-over-year; Viator and TheFork to see sequential acceleration, while Brand Tripadvisor remains flat.

• Management expects continued investment in Viator and TheFork to drive long-term growth and market share, with a focus on improving unit economics and profitability.

• Brand Tripadvisor margin expected at ~20% in Q4; Viator in high single digits; TheFork roughly flat year-over-year.

• 2025 priorities include extending leadership in experiences, focusing Tripadvisor on planning/guidance and app bookings, and building on TheFork’s momentum.