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TripAdvisor, Inc. (TRIP)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $398.2M (+1% y/y), GAAP diluted EPS was -$0.08, and non-GAAP diluted EPS was $0.14; Adjusted EBITDA was $43.8M (11.0% margin) . Versus S&P Global consensus, revenue modestly beat ($398.0M vs $387.7M*) and non-GAAP EPS materially beat ($0.14 vs $0.051*) .
  • Segment mix: Viator revenue grew 10% to $155.8M with GBV ~$1.1B (+10%) and 5.0M experience bookings (+15%); Brand Tripadvisor declined 8% to $219.4M; TheFork grew 12% to $46.4M .
  • Q2 2025 guidance: consolidated revenue growth 5–8% and Adjusted EBITDA margin ~16–18%; FY 2025 guidance maintained at 5–7% revenue growth and 16–18% Adjusted EBITDA margin .
  • Capital structure simplification: closed Liberty TripAdvisor merger; net share count reduced by 23.8M and company now has a single class of shares with no controlling stockholder—management plans to restart repurchases ($200M authorization) and pay down 2026 converts, targeting stable cash and net leverage .
  • Management tone: “meeting or exceeding our expectations across the board” and “healthy performance in marketplace offerings and stable trends in hotels,” while monitoring macro uncertainty .

What Went Well and What Went Wrong

What Went Well

  • Viator scaled with healthy unit growth: revenue +10% to $155.8M, GBV ~$1.1B (+10% cc +12%), 5.0M bookings (+15%); margins improved 800 bps y/y to -11.3% Adjusted EBITDA, supported by direct/app and third‑party channel progression .
  • Brand Tripadvisor hotel meta pricing strengthened sequentially, driven by product optimizations and higher‑value clicks in US and Europe; Brand Adjusted EBITDA of $64.9M (~29.6% margin) exceeded internal expectations on better hotel meta performance and lower costs .
  • Liquidity remained strong with cash and equivalents at $1.154B (+$90M q/q), aided by $102M operating cash flow and $83M free cash flow in Q1 .

Quote: “We are pleased with our first quarter results, meeting or exceeding our expectations across the board” — CEO Matt Goldberg .
Quote: “Consolidated adjusted EBITDA of $44 million…exceeded expectations due to revenue outperformance at Brand Tripadvisor and lower‑than‑anticipated fixed costs” — CFO Mike Noonan .

What Went Wrong

  • Brand Tripadvisor revenue declined 8% y/y, with branded hotels -7% and media -6% amid traffic and volume headwinds from paid channel comps and product changes trading volume for quality clicks .
  • Consolidated marketing intensity increased to ~43.1% of revenue (from 41.1%), reflecting higher spend to support growth; cost of sales rose to ~6.7% of revenue on transaction-related costs .
  • GAAP loss of -$11M persisted despite non‑GAAP profitability, as interest expense and restructuring costs ($10M) weighed on GAAP results; free cash flow declined y/y ($83M vs $123M) .

Financial Results

Consolidated performance vs prior periods and estimates

MetricQ1 2024Q4 2024Q1 2025Q1 2025 ConsensusQ1 2025 Actual
Revenue ($USD Millions)$395.1 $411.1 $398.2 $387.7*$398.0
GAAP Diluted EPS ($)-$0.43 $0.01 -$0.08 N/A-$0.08
Non-GAAP Diluted EPS ($)$0.12 $0.30 $0.14 $0.051*$0.14
Adjusted EBITDA ($USD Millions)$46.7 $73.0 $43.8 N/A$43.8
Adjusted EBITDA Margin (%)11.8% 18.0% 11.0% N/A11.0%
Cash from Operations ($USD Millions)$139 -$2 $102 N/A$102
Free Cash Flow ($USD Millions)$123 -$25 $83 N/A$83

Values with asterisks retrieved from S&P Global.

Segment revenue and profitability

MetricQ1 2024Q4 2024Q1 2025
Brand Tripadvisor Revenue ($M)$240 $204 $219.4
Brand Tripadvisor Adj. EBITDA ($M)$77.7 $53.0 $64.9
Viator Revenue ($M)$141.1 $186.0 $155.8
Viator Adj. EBITDA ($M)-$27.5 $20.0 -$17.6
TheFork Revenue ($M)$41.3 $48.0 $46.4
TheFork Adj. EBITDA ($M)-$3.5 $0.0 -$3.5

KPIs and operating metrics

KPIQ3 2024Q4 2024Q1 2025
Viator GBV ($USD Billions)~$1.1 ~$0.84 ~$1.1
Viator Experience Bookings (Millions)N/AN/A5.0
Viator Adj. EBITDA Margin (%)11.3% 11.0% -11.3%
Brand Tripadvisor Hotel Revenue ($M)$151 $125 $148
Cash & Equivalents ($M)$1,112 $1,064 $1,154

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue Growth (y/y %)Q2 2025N/A5–8% New
Consolidated Adjusted EBITDA Margin (%)Q2 2025N/A~16–18% New
Viator Revenue Growth (y/y %)Q2 2025N/A~9–11% New
Viator Adjusted EBITDA Margin (%)Q2 2025N/AMid–high single digits New
Brand Tripadvisor Revenue Growth (y/y %)Q2 2025N/AFlat to -2% New
Brand Tripadvisor Adjusted EBITDA Margin (%)Q2 2025N/A~26–28% New
TheFork Revenue Growth (y/y %)Q2 2025N/A26–28% (incl. ~6pt FX benefit) New
TheFork Adjusted EBITDA Margin (%)Q2 2025N/AMid‑teens New
Consolidated Revenue Growth (y/y %)FY 20255–7% (Feb guidance) 5–7% (maintained) Maintained
Consolidated Adjusted EBITDA Margin (%)FY 202516–18% (Feb guidance) 16–18% (maintained) Maintained

Note: No explicit guidance provided for OpEx line items, OI&E, tax rate, or dividends in Q1 call materials .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 & Q4 2024)Current Period (Q1 2025)Trend
AI/technology initiativesShift to engagement-led strategy; ongoing product work; non-GAAP profitability across segments Multiple AI partnerships (Perplexity, OpenAI, Alexa, Microsoft Azure) to learn, license content/data, and improve UX; building “AI‑first” product culture across Viator/Tripadvisor/TheFork Expanding partnerships; increasing internal deployment
Macro backdropHealthy demand; FX and tax items influenced y/y comps Stable demand in April; watching booking windows and cancel rates; macro uncertainty cited as reason to maintain FY guide Cautious stance despite stable trends
Product performance (Hotel Meta)Brand declines; hotel revenue down y/y Pricing growth with higher‑value clicks; sequential stabilization; product changes traded lower click volume for quality Improving pricing; volume headwinds easing
Regional trendsCash balances stable; NA demand supportive in Viator North America booker base healthy; third‑party channels growing outside core regions; ABV mix lower due to OTA/agent mix Diversifying distribution; resilient NA
Regulatory/legalIRS audit settlement cashflows in 2024; accruals affected expenses G&A % lower y/y due to prior regulatory accrual; restructuring costs in Q1 2025 Legacy items rolling off; restructuring near completion
Capital structureTerm Loan B + redemption of 2025 notes Closed Liberty merger; retired ~23.8M shares; restarting repurchases; paying down 2026 converts Simplified structure; capital returns

Management Commentary

  • Strategic focus: “Our teams are laser focused on delivering for travelers and partners…leveraging our unique and trusted position in travel and experiences as the foundation for growth” — CEO Matt Goldberg .
  • Brand hotels/meta: “Pricing remained strong…grew y/y throughout Q1 in both U.S. and Europe…product optimizations drove higher value clicks” — CFO Mike Noonan .
  • Viator economics: “Repeat bookings growth…outpaced new bookings growth, and our cohort retention rates have remained consistent…strengthening…long‑term margin opportunity” — CFO Mike Noonan .
  • Capital allocation: “We will restart our share repurchase program…target of maintaining our current cash profile and net leverage levels…utilize a portion of our future cash flow to repurchase shares” — CFO Mike Noonan .

Q&A Highlights

  • Viator margin pathway: Management reiterated potential for OTA‑like margins driven by product-led conversion improvements and loyalty; near‑term trade‑off with investment in engineering/data science .
  • Distribution mix and ABV: Third‑party channels (OTAs, agents, white labels) growing faster and immediately profitable; lower ABV is primarily mix‑driven; higher‑priced experiences holding up .
  • Cross‑border exposure: Viator’s NA booker base makes it less susceptible to international pressures; depth of supply enables capture across destinations and price points .
  • Hotel Meta pricing drivers: Enhanced content/context increased engagement and auction pricing; expected to stabilize hotels and support cross‑sell into experiences/app .
  • Share count post‑merger: From ~142M pre‑transaction to ~118M shares outstanding post‑transaction (net reduction ~23.8M) .

Estimates Context

  • Q1 2025 actuals vs consensus: Revenue $398.0M vs $387.7M*; non‑GAAP EPS $0.14 vs $0.051* — a modest top‑line beat and a significant EPS beat, aided by stronger Brand pricing, lower fixed costs, and Viator unit growth .
  • Forward setup: Management maintained FY 2025 guide amid macro uncertainty; segment Q2 guidance implies continued Brand stabilization and mid‑teens growth at TheFork, while Viator revenue growth of ~9–11% reflects prudence on pricing/cancel rates .

Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • EPS beat and revenue beat vs consensus with improving hotel meta pricing and disciplined cost execution — supportive for near‑term sentiment despite cautious macro tone .
  • Viator remains the structural growth engine (GBV/bookings up, direct/app rising), but mix shift to third‑party channels lowers ABV; profitability trajectory improves with product‑led conversion and loyalty .
  • Brand Tripadvisor is stabilizing: higher‑value clicks and pricing uplift partially offset traffic/volume headwinds; sequential improvement expected into exiting Q2 .
  • Capital structure reset is a catalyst: share count down 17%, repurchases restarting ($200M authorization), and 2026 converts targeted for paydown — accretive to EPS and enhances flexibility .
  • Guidance discipline: FY 2025 maintained (5–7% revenue; 16–18% adj. EBITDA margin); Q2 guide frames healthy execution with watchpoints on booking windows and cancellations .
  • Liquidity strong ($1.154B cash), supporting investment in AI/product and opportunistic buybacks while preserving net leverage targets .
  • Monitor macro and booking dynamics: recent narrowing of booking windows and cancel rate sensitivity at Viator are risks to near‑term revenue conversion; watch direct/app mix and hotel meta pricing sustainment .