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TripAdvisor, Inc. (TRIP)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue was $0.411B, up 5% YoY; adjusted EBITDA was $73M (18% margin). Non-GAAP diluted EPS was $0.30; GAAP diluted EPS was $0.01. Management said results exceeded internal expectations, driven by Viator and Brand Tripadvisor outperformance .
  • Segment mix continues to shift toward Experiences and Dining: Viator revenue grew 16% YoY to $186M; TheFork grew 23% YoY to $48M; Brand Tripadvisor declined 6% YoY to $204M .
  • 2025 guidance: consolidated revenue growth of 5–7% and adjusted EBITDA margin of 16–18%; Q1 2025 revenue flat to low-single-digit decline with consolidated margin ~5–7% .
  • Strategic catalysts: accelerating experiences focus (Viator GBV $0.84B in Q4; ~$4.2B in 2024), AI partnerships (Perplexity, OpenAI), and planned merger to retire ~27M shares and simplify capital structure (expected close Q2 2025) .

What Went Well and What Went Wrong

  • What Went Well

    • Experiences strength: Viator revenue +16% YoY to $186M; GBV ~$0.84B (+17% YoY); adjusted EBITDA $20M (11% margin), with repeat bookings outpacing new and direct/app channels scaling .
    • TheFork profitability inflection: Q4 revenue $48M (+23% YoY); full-year profitability (FY adj. EBITDA $5M) aided by partnerships (Vodafone, Mastercard) and product improvements .
    • Engagement-led progress at Brand Tripadvisor: stabilization and growth in monthly active members; app booking and membership initiatives with higher monetization and repeat behavior; AI travel assistant rollout .

  • What Went Wrong

    • Brand Tripadvisor revenue -6% YoY to $204M; Branded Hotels -7% YoY to $125M, reflecting continued Hotel Meta pressure despite sequential improvement in pricing/volume .
    • Consolidated adjusted EBITDA down to $73M from $84M in Q4 2023 (13% decline); non-GAAP diluted EPS down to $0.30 from $0.38 (-21%) .
    • Restructuring costs: $21M in Q4 (primarily Brand Tripadvisor) with $9–$11M expected in Q1 2025, reflecting cost realignment; IRS settlement created ~$105M net operating cash outflow in 2024, though Q4 included a $42M foreign refund .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Billions)$0.497 $0.532 $0.411
GAAP Diluted EPS ($)$0.17 $0.27 $0.01
Non-GAAP Diluted EPS ($)$0.39 $0.50 $0.30
Adjusted EBITDA ($USD Millions)$97 $122 $73
Adjusted EBITDA Margin (%)20% 23% 18%
  • YoY revenue growth: Q2 +1%, Q3 0%, Q4 +5% .
  • Sequential dynamics: Q4 revenue declined vs Q3 (seasonal and Hotel Meta pressures), while Viator and TheFork accelerated sequentially .

Segment revenue mix (gross of intersegment in Brand Tripadvisor; intersegment eliminated at consolidated):

Segment Revenue ($USD Millions)Q2 2024Q3 2024Q4 2024
Brand Tripadvisor$250 $255 $204
Viator$244 $270 $186
TheFork$42 $49 $48
Intersegment Eliminations($39) ($42) ($27)

KPIs and balance sheet:

KPIQ2 2024Q3 2024Q4 2024
Viator GBV ($USD Billions)~$1.2 ~$1.1 ~$0.84
TheFork Total Bookings Growth (YoY)~5% ~6% ~9%
Cash & Cash Equivalents ($USD Billions)$1.176 $1.112 $1.064

Notes: There is a presentation variance in reported “marketing as % of revenue” between the 8-K press release (Q4 marketing $152M or 37%) and CFO’s remarks (30% of revenue); management revised operating expense captions in Q4 and reclassified prior periods, which may drive differences in categorization .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue Growth (%)FY 2025N/A5–7% New
Consolidated Adjusted EBITDA Margin (%)FY 2025N/A16–18% New
Consolidated RevenueQ1 2025N/AFlat to low-single-digit decline; includes ~2 pts FX/holiday headwind New
Consolidated Adjusted EBITDA Margin (%)Q1 2025N/A~5–7% New
Viator Bookings Growth (YoY, %)FY 2025N/AMid- to high-teens New
Viator Revenue Growth (YoY, %)FY 2025N/ALow- to mid-teens (≈2 pts FX headwind) New
Viator Adj. EBITDA ($)FY 2025N/ANearly double New
Viator Bookings Growth (YoY, %)Q1 2025N/A14–16% New
Viator Revenue Growth (YoY, %)Q1 2025N/A9–11% (≈3 pts holiday; ≈2 pts FX headwind) New
Viator Adj. EBITDA Margin Δ (bps)Q1 2025N/A+~600 bps New
Brand Tripadvisor Revenue (YoY)FY 2025N/ALow single-digit decline; stronger 2H vs 1H New
Brand Tripadvisor Revenue (YoY)Q1 2025N/ALow double-digit decline New
Brand Tripadvisor Adj. EBITDA Margin ΔQ1 2025N/ADown ~10 points New
TheFork Revenue Growth (YoY, %)FY 2025N/ALow double digits (≈5 pts FX headwind) New
TheFork Adj. EBITDAFY 2025N/ANearly triple New
TheFork Revenue Growth (YoY, %)Q1 2025N/ALow teens (≈5 pts FX; ≈1 pt Easter/calendar) New

FY 2024 commentary was maintained close to prior outlook (low single-digit consolidated growth; Brand Tripadvisor mid-to-high single-digit declines; Q4 sequential acceleration), implying guidance largely unchanged into year-end 2024 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
AI/technology initiativesScaled AI review summaries; TRIPS expansion; app UX upgrades; hotel booking and rewards pilot Continued AI product use; strong app engagement; foundational work for 2025; emerging AI partnerships AI assistant, personalized sort; partnerships with Perplexity/OpenAI to access high-intent AI-first traffic; licensing/rev-share components Accelerating
Macro/travel demandHealthy leisure intent; normalization of pricing/windows; mixed macro signals Stability in booking windows/length of stay; sequential improvement in Hotel Meta pricing/volume Healthy travel demand underpinning Viator; FX headwinds explained (USD/Euro corridor) Stable, with FX headwinds
Product performance (app/membership)Direct channel share +450bps; app hotel booking and rewards with higher ARPU/repeat Membership features, rewards, app booking yielding higher monetization and repeat Formal membership launch planned; rewards funded by TripAdvisor; cross-category booking strategy Scaling
Regional trendsUS Hotel Meta stepped back vs Q1; EMEA/APAC more in line October: Brand Tripadvisor in line with Q3; Viator acceleration; RO W strongest Hotel Meta pricing stable QTD; FX headwinds predominantly Euro payments to operators Mixed by region; Europe FX headwinds
Regulatory/legal$141M IRS payment; expected $25–$35M refund Expect $50–$60M net inflow next 12 months from IRS settlement $42M competent authority refund; $105M net op cash outflow in 2024 Resolving; cash flow timing impacts
Supply expansion (experiences)Improved supplier onboarding; Accelerate program; low churn Catalog growth; optimizing point-of-sale between Viator/TripAdvisor Operators +15%; ~400k products; third-party partner API expansion Strengthening
B2B partnershipsTheFork Vodafone pilot TheFork B2B growth; partnerships traction TheFork Vodafone/Mastercard partnerships benefiting Q4; expanding partner API for Viator Broadening

Management Commentary

  • CEO: “We achieved record revenue, driven by growth in experiences, which is increasingly becoming the strategic and financial center of gravity of the Group... In 2025, we expect to continue our strategic progress across segments” .
  • CFO: “We delivered fourth quarter results that exceeded our expectations, with revenue of $411 million... and adjusted EBITDA of $73 million, or 18% of revenue” .
  • CEO on AI: “We’re forging [a Perplexity] partnership... this traffic is high intent... starting with hotels, adding experiences and restaurants... collaborating with OpenAI Operator as agentic AI emerges” .
  • CFO on 2025: “We expect consolidated revenue growth of 5% to 7% and adjusted EBITDA margin of 16% to 18%... Viator to nearly double adjusted EBITDA and TheFork to nearly triple” .
  • CEO on capital structure: Merger with Liberty TripAdvisor “moves us to a new chapter... simplified capital structure... removes an overhang... more flexibility” .

Q&A Highlights

  • Competitive landscape: Airbnb Experiences entry seen as category awareness positive; TripAdvisor cites scale supply (~400k products, ~65k operators) and largest travel audience as differentiators .
  • Hotel Meta outlook: Product improvements driving price advantage; Meta remains relevant but not the future growth driver; focus on app booking and experiences monetization .
  • FX headwinds: Predominantly Euro payments to operators with USD collections; ~2 pts headwind to Viator revenue at current rates .
  • Membership strategy: Free membership (not paid Plus), funded rewards to drive repeat across categories; formal launch with wallet and cross-category integration .
  • Capital allocation/merger: Transaction expected Q2 2025; ~27M shares retired, ~3M issued to preferred; ~$435M aggregate value; strategic flexibility post-close .

Estimates Context

  • Wall Street consensus from S&P Global was unavailable due to data access error at the time of retrieval; therefore, we cannot assess Q4 2024 beats/misses versus consensus. Management indicated Q4 results exceeded internal expectations .
  • Implication: Near-term estimate revisions may focus on 2025 consolidated margin (16–18%) and Viator EBITDA dollar growth (nearly double), with TheFork profitability ramp; Brand Tripadvisor expected to improve trajectory in 2H 2025 despite legacy headwinds .

Key Takeaways for Investors

  • Experiences-led mix shift is durable: Viator and TheFork contributed 56% of group revenue in 2024 (up from 50% in 2023), with Viator set to drive both revenue and EBITDA dollar growth in 2025 .
  • Brand Tripadvisor is stabilizing with app/membership monetization and AI products; expect low-single-digit revenue declines in 2025, improving in 2H, with 2026 targeted for growth .
  • Short-term margin compression: Q1 2025 consolidated margins guided to ~5–7% amid holiday timing and FX headwinds; Viator margins to improve ~600 bps sequentially .
  • Restructuring supports cost alignment: $21M incurred in Q4 (Brand Tripadvisor); $9–$11M more expected Q1 2025; aim to keep personnel costs flat YoY while reallocating to growth initiatives .
  • Balance sheet/liquidity solid: ~$1.064B cash at year-end; Term Loan B (SOFR + 2.75%) refinanced 2025 notes; IRS settlement timing impacts operating cash flows .
  • Strategic catalyst: Planned Liberty TripAdvisor merger expected to retire ~27M shares and simplify governance; potential to unlock strategic flexibility and capital allocation options in 2025+ .
  • Watch AI partnerships (Perplexity/OpenAI) for incremental high-intent traffic and monetization; early signals show higher conversion than typical free traffic .