• Total revenue increased 25% (approximately 35% on a constant currency basis) to $405 million, compared to $323 million for the second quarter of 2014.
• GAAP net income was $58 million, or $0.40 per diluted share, compared to $68 million, or $0.47 per diluted share, for the second quarter of 2014. Non-GAAP net income was $79 million, or $0.54 per diluted share, compared to $81 million, or $0.55 per diluted share, for the second quarter of 2014.
• Adjusted EBITDA decreased 5% (and increased approximately 15% on a constant currency basis) to $123 million, compared to $129 million for the second quarter of 2014.
• Cash flow from operating activities was $200 million, or 49% of revenue, up 102% quarter-over-quarter and up 27% yearover-year; Free cash flow was $177 million, or 44% of revenue, up 160% quarter-over-quarter and up 30% year-over-year.
• The Company enhanced its financial position by entering into a $1 billion five-year credit facility, which will be used for general corporate purposes.
• Average monthly unique visitors grew 30% compared to the second quarter of 2014, reaching 375 million* and TripAdvisor now has 250 million traveler reviews and opinions around the world.
• The Company signed six new instant booking partnerships, including with Marriott International and another major chain. TripAdvisor is now partnered with six of the top 10 global hotel chains to power direct bookings.
“Our long-term business prospects grew stronger in the second quarter,” said Steve Kaufer, President and CEO of TripAdvisor. “We grew content by 50% reaching more than a quarter-of-a-billion reviews and opinions; we grew community by more than 30% to 375 million monthly unique users, we further deepened our relationships with large hotel partners to power direct bookings, and we extended our global reach in our newer attractions and restaurants businesses.”
“We are making tremendous strides towards our long-term goal of helping more users around the world plan and book the perfect trip.”
Second Quarter 2015 Financial Highlights
Total revenue increased 25% to $405 million, compared to $323 million for the second quarter of 2014. Excluding the impact of yearover-year changes in foreign exchange rates, total revenue would have increased by approximately 35% compared to the second quarter of 2014.
• Click-based advertising revenue (“CPC revenue”) increased 13% to $266 million, and represented 66% of total revenue, compared to 73% for the second quarter of 2014. Excluding the impact of year-over-year changes in foreign exchange rates, click-based advertising revenue would have increased by approximately 24% compared to the second quarter of 2014.
• Display-based advertising revenue increased 8% to $40 million, and represented 10% of total revenue, compared to 11% for the second quarter of 2014.
• Subscription, transaction and other revenue increased 94% to $99 million, and represented 24% of total revenue, compared to 16% for the second quarter of 2014.
North America revenue increased 31% to $211 million, and represented 52% of total revenue, compared to 50% for the second quarter of 2014. Europe, Middle East and Africa revenue increased 19% to $127 million, and represented 31% of total revenue, compared to 33% for the second quarter of 2014. Asia-Pacific revenue increased 14% to $48 million, and represented 12% of total revenue, compared to 13% for the second quarter of 2014. Latin America revenue increased 46% to $19 million, and represented 5% of total revenue, compared to 4% for the second quarter of 2014. International revenue (total revenue excluding-U.S. revenue) was 50% of total revenue during the second quarter of 2015, compared to 53% for the second quarter of 2014.
GAAP net income was $58 million, or $0.40 per diluted share, compared to GAAP net income of $68 million, or $0.47 per diluted share, for the second quarter of 2014. Non-GAAP net income for the second quarter of 2015 was $79 million, or $0.54 per diluted share, compared to non-GAAP net income of $81 million, or $0.55 per diluted share, for the second quarter of 2014.
Adjusted EBITDA decreased 5% to $123 million, for an Adjusted EBITDA margin of 30%, compared to Adjusted EBITDA of $129 million and Adjusted EBITDA margin of 40% for the second quarter of 2014. Excluding the impact of year-over-year changes in foreign exchange rates, Adjusted EBITDA would have increased by approximately 15% compared to the second quarter of 2014.
Cash flow from operating activities for the second quarter 2015 was $200 million, an increase of $42 million, or 27%, year-over-year.
As of June 30, 2015, cash and cash equivalents and short and long term marketable securities were $746 million, up $152 million since December 31, 2014.
As of June 30, 2015, TripAdvisor had approximately 3,000 employees, up from approximately 2,400 at June 30, 2014 and 2,900 employees at March 31, 2015.
Segment Information
Hotel segment revenue increased 13% (approximately 22% on a constant currency basis) to $343 million, and represented 85% of total revenue. Hotel segment Adjusted EBITDA decreased 4% to $125 million, for an Adjusted EBITDA margin of 36%. Other segment revenue increased 210% to $62 million, and represented 15% of total revenue. Growth in our Other segment revenue was driven primarily by acquisitions in our attractions and restaurants businesses. Other segment Adjusted EBITDA was negative and decreased to negative $2 million for the second quarter of 2015, and Adjusted EBITDA margin was negative 3%.
Second Quarter 2015 Operational Highlights
• TripAdvisor reached 375 million average monthly unique visitors for an increase of 30% year-over-year.
• TripAdvisor has 250 million reviews and opinions on 5.2 million places to stay, places to eat and things to do – including 950,000 hotels and accommodations and 720,000 vacation rentals, 3.0 million restaurants and 560,000 attractions around the world.
• TripAdvisor reached 215 million mobile app downloads, including 195 million downloads of the core TripAdvisor app. TripAdvisor also recently announced the launch of the TripAdvisor app on Apple Watch, Android Wear, and Pebble smartwatches. The free app helps travelers find nearby things to do with access to TripAdvisor traveler reviews and ratings of hotels, restaurants and attractions.
• TripAdvisor expanded its relationships with Marriott International and another major chain as well as Mandarin Oriental, Langham Hospitality, and Americinn, adding these chains to the TripAdvisor instant booking platform.
• TripAdvisor acquired Sydney, Australia-based Dimmi and has extended its global restaurant reservation business into 12 countries, including: Australia, Belgium, Brazil, Denmark, France, Italy, Portugal, Spain, Sweden, Switzerland, Turkey, and the Netherlands.
• TripAdvisor unveiled a new global brand name for TripAdvisor in Chinese: Mao Tu Ying, which means “owl” and “journey” and reinforces that TripAdvisor provides smart advice for travelers by travelers around the world.
• TripAdvisor announced its 5th annual Certificate of Excellence award winners, recognizing over 340,000 outstanding businesses worldwide, including hotels, restaurants and attractions.
