TripAdvisor, Inc 8-K, filed Nov 6, 2023

TripAdvisor, Inc. (TRIP)

8-K 2023-11-06 For: 2023-11-06

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Added on April 12, 2026

About this 8-K

TripAdvisor, Inc filed this 8-K on November 6, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware	001-35362	80-0743202
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

400 1st Avenue Needham, MA 02494
(Address of Principal Executive Offices) (Zip Code)


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit
Number		Description

99.1		Press Release of Tripadvisor, Inc. dated November 6, 2023 regarding earnings.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).


	TRIPADVISOR, INC.

Date: November 6, 2023	By:	/S/ MICHAEL NOONAN
		Michael Noonan
		Chief Financial Officer


	Three months ended September 30,
(In millions, except percentages and per share amounts)	2023			2022			% Change
Total Revenue	$	533		$	459			16	%
Tripadvisor Core (1)	$	290		$	284			2	%
Viator	$	245		$	174			41	%
TheFork	$	42		$	35			20	%
Intersegment eliminations (1)	$	(44	)	$	(34	)		29	%

GAAP Net Income (Loss)	$	27		$	25			8	%

Total Adjusted EBITDA (2)	$	127		$	115			10	%
Tripadvisor Core	$	111		$	112			(1	)%
Viator	$	17		$	12			42	%
TheFork	$	(1	)	$	(9	)		(89	)%

Non-GAAP Net Income (Loss) (2)	$	74		$	55			35	%

Diluted Earnings (Loss) per Share:
GAAP	$	0.19		$	0.17			12	%
Non-GAAP (2)	$	0.52		$	0.38			37	%

Cash flow from operating activities	$	14		$	60			(77	)%
Free cash flow (2)	$	(2	)	$	46		n.m.


	Three Months Ended						Nine Months Ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Revenue	$	533		$	459		$	1,398		$	1,138

Costs and expenses:
Cost of revenue (1) (exclusive of depreciation and amortization as shown separately below)		43			32			113			85
Selling and marketing (1)		272			234			761			591
Technology and content (1)		66			55			205			162
General and administrative (1)		49			45			144			114
Depreciation and amortization		21			23			63			73
Restructuring and other related reorganization costs		18			—			18			—
Total costs and expenses		469			389			1,304			1,025
Operating income (loss)		64			70			94			113
Other income (expense):
Interest expense		(11	)		(11	)		(33	)		(33	)
Interest income		13			4			35			7
Other income (expense), net		(2	)		(1	)		(3	)		(4	)
Total other income (expense), net		—			(8	)		(1	)		(30	)
Income (loss) before income taxes		64			62			93			83
(Provision) benefit for income taxes		(37	)		(37	)		(115	)		(61	)
Net income (loss)	$	27		$	25		$	(22	)	$	22

Earnings (loss) per share attributable to common stockholders:
Basic	$	0.20		$	0.18		$	(0.16	)	$	0.16
Diluted	$	0.19		$	0.17		$	(0.16	)	$	0.15

Weighted average common shares outstanding:
Basic		138			140			140			140
Diluted		143			146			140			144


(1) Includes stock-based compensation expense as follows:

Cost of revenue	$	—		$	—		$	1		$	1
Selling and marketing	$	4		$	3		$	12		$	9
Technology and content	$	10		$	9		$	30		$	27
General and administrative	$	10		$	10		$	29		$	28


	September 30,			December 31,
	2023			2022
ASSETS
Current assets:
Cash and cash equivalents	$	1,124		$	1,021
Accounts receivable and contract assets, net (allowance for expected credit losses of $24 and $28, respectively)		234			205
Prepaid expenses and other current assets		43			44
Total current assets		1,401			1,270
Property and equipment, net of accumulated depreciation of $537 and $512, respectively		193			194
Operating lease right-of-use assets		18			27
Intangible assets, net of accumulated amortization of $202 and $198, respectively		45			51
Goodwill		817			822
Non-marketable investments		32			34
Deferred income taxes, net		86			78
Other long-term assets, net of allowance for credit losses of $10 and $10, respectively		44			93
TOTAL ASSETS	$	2,636		$	2,569

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	70		$	39
Deferred merchant payables		329			203
Deferred revenue		64			44
Income taxes payable		26			16
Accrued expenses and other current liabilities		230			231
Total current liabilities		719			533
Long-term debt		839			836
Finance lease obligation, net of current portion		53			58
Operating lease liabilities, net of current portion		7			15
Deferred income taxes, net		1			1
Other long-term liabilities		194			265
Total Liabilities		1,813			1,708

Stockholders’ equity:
Preferred stock, $0.001 par value		—			—
Authorized shares: 100,000,000
Shares issued and outstanding: 0 and 0, respectively
Common stock, $0.001 par value		—			—
Authorized shares: 1,600,000,000
Shares issued: 149,181,201 and 146,891,538, respectively
Shares outstanding: 125,611,858 and 128,046,924, respectively
Class B common stock, $0.001 par value		—			—
Authorized shares: 400,000,000
Shares issued and outstanding: 12,799,999 and 12,799,999, respectively
Additional paid-in capital		1,470			1,404
Retained earnings		239			261
Accumulated other comprehensive income (loss)		(89	)		(82	)
Treasury stock-common stock, at cost, 23,569,343 and 18,844,614 shares, respectively		(797	)		(722	)
Total Stockholders’ Equity		823			861
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,636		$	2,569


	2022															2023
	Q1			Q2			Q3			Q4			FY*			Q1			Q2			Q3			YTD*
Reconciliation from GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP):
GAAP Net Income (Loss)	$	(34	)	$	31		$	25		$	(3	)	$	20		$	(73	)	$	24		$	27		$	(22	)
Add: Provision (benefit) for income taxes		1			22			37			(13	)		47			58			20			37			115
Add: Other expense (income), net		13			10			8			3			34			1			-			-			1
Add: Restructuring and other related organization costs		-			-			-			-			-			-			-			18			18
Add: Legal reserves and settlements		-			-			-			-			1			-			-			-			-
Add: Non-recurring expenses (income) (1)		-			-			-			8			8			3			-			-			3
Add: Stock-based compensation expense		22			21			22			23			88			23			25			24			72
Add: Depreciation and amortization (2)		25			25			23			25			97			21			21			21			63
Adjusted EBITDA (Non-GAAP)	$	27		$	109		$	115		$	43		$	295		$	33		$	90		$	127		$	250

Reconciliation from GAAP Net Income (Loss) to Non-GAAP Net Income (Loss):
GAAP Net Income (Loss)	$	(34	)	$	31		$	25		$	(3	)	$	20		$	(73	)	$	24		$	27		$	(22	)
Add: Stock-based compensation expense		22			21			22			23			88			23			25			24			72
Add: Legal reserves and settlements		-			-			-			-			1			-			-			-			-
Add: Restructuring and other related organization costs		-			-			-			-			-			-			-			18			18
Add: Non-recurring expenses (income) (1)		-			-			-			8			8			3			-			-			3
Add: Amortization of intangible assets		3			3			3			4			13			2			2			2			7
Add: (Gain)/Loss on investments		(1	)		(1	)		(1	)		(1	)		(3	)		(1	)		(1	)		(1	)		(2	)
Subtract: Income tax effect of Non-GAAP adjustments (3)		3			-			8			7			18			2			1			(4	)		-
Subtract: Non-recurring or infrequent discrete tax items (4)		-			-			(14	)		14			-			(55	)		-			-			(55	)
Non-GAAP Net Income (Loss)	$	(13	)	$	54		$	55		$	10		$	109		$	7		$	49		$	74		$	131
Interest expense on 2026 Senior Notes, net of tax (5)		-			-			-			-			1			-			-			-			-
Numerator used to compute Non-GAAP net income (loss) per diluted share	$	(13	)	$	54		$	55		$	10		$	110		$	7		$	49		$	74		$	131

Reconciliation from GAAP Earnings per Share (EPS) to Non-GAAP EPS:
GAAP Diluted Shares Outstanding (6)		139			145			146			146			146			147			145			143			145
GAAP Diluted Earnings (Loss) per Share	$	(0.24	)	$	0.21		$	0.17		$	(0.02	)	$	0.14		$	(0.52	)	$	0.17		$	0.19		$	(0.16	)
Non-GAAP Diluted Earnings (Loss) per Share as Adjusted (7)	$	(0.09	)	$	0.37		$	0.38		$	0.07		$	0.75		$	0.05		$	0.34		$	0.52		$	0.90
Non-GAAP Diluted Earnings (Loss) per Share as Previously Reported	$	(0.09	)	$	0.37		$	0.28		$	0.16		$	0.75		n/a			n/a			n/a			n/a
Non-GAAP Diluted Earnings (Loss) per Share - increase/(decrease) as result of revised definition	$	(0.00	)	$	0.00		$	0.10		$	(0.09	)	$	0.00		n/a			n/a			n/a			n/a

Foreign Exchange Reconciliation:
GAAP Total Revenue Growth		113	%		77	%		51	%		47	%		65	%		42	%		18	%		16	%		23	%
Estimated effects of changes in foreign currency exchange rates		(5	)%		(10	)%		(12	)%		(11	)%		(10	)%		(4	)%		(1	)%		3	%		0	%
Non-GAAP Total Revenue growth on a constant currency basis		118	%		87	%		63	%		58	%		75	%		46	%		19	%		13	%		23	%

GAAP Total Tripadvisor Core Segment Revenue		79	%		49	%		34	%		34	%		45	%		28	%		2	%		2	%		9	%
Estimated effects of changes in foreign currency exchange rates		(2	)%		(7	)%		(9	)%		(7	)%		(7	)%		(2	)%		0	%		3	%		1	%
Non-GAAP Total Tripadvisor Core segment revenue growth on a constant currency basis		81	%		56	%		43	%		41	%		52	%		30	%		2	%		(1	)%		8	%

GAAP Total Viator Segment Revenue		367	%		240	%		138	%		115	%		168	%		105	%		59	%		41	%		57	%
Estimated effects of changes in foreign currency exchange rates		(6	)%		(13	)%		(16	)%		(16	)%		(15	)%		(10	)%		(2	)%		2	%		(2	)%
Non-GAAP Total Viator segment revenue growth on a constant currency basis		373	%		253	%		154	%		131	%		183	%		115	%		61	%		39	%		59	%

GAAP Total TheFork Segment Revenue		271	%		78	%		17	%		10	%		48	%		35	%		19	%		20	%		24	%
Estimated effects of changes in foreign currency exchange rates		(48	)%		(26	)%		(14	)%		(16	)%		(19	)%		(6	)%		3	%		6	%		2	%
Non-GAAP Total TheFork segment revenue growth on a constant currency basis		319	%		104	%		31	%		26	%		67	%		41	%		16	%		14	%		22	%

Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow:
Cash flow provided by (used in) operations	$	86		$	295		$	60			(40	)	$	400		$	135		$	105		$	14		$	254
Subtract: Capital expenditures		14			13			14			15			56			16			15			16			47
Free Cash Flow (Non-GAAP)	$	72		$	282		$	46		$	(55	)	$	344		$	119		$	90		$	(2	)	$	207


Item 2.02.	Results of Operations and Financial Condition.