TripAdvisor earnings report: TripAdvisor revenue in Q1 2012 reached $183.7 million, up 23% year-on-year

May 1, 2012: TripAdvisor (NASDAQ: TRIP), the world's largest travel website, announced its financial results for the first quarter ended March 31, 2012.

• First quarter revenue reached $183.7 million, up 33% sequentially and 23% year-over-year

• First quarter net income was $48.1 million, or $0.35 per diluted share, an increase of 118% sequentially and 2% year-over-year

• Non-GAAP net income for the first quarter was US$52.5 million, up 73% from the previous quarter and 5% year-over-year

• First quarter Adjusted EBITDA increased 53% sequentially and 3% year-over-year to $84.2 million, or 46% of revenue

"TripAdvisor achieved record revenue in the quarter, driven by strong growth," said Steve Kaufer, president and CEO of TripAdvisor. "We continue to grow our travel community, with more than 60 million reviews and opinions on the site, with more than 40 reviews posted every minute. We continue to innovate across desktop, tablet and mobile to extend TripAdvisor's market-leading position, and we are excited about the opportunities ahead of us. TripAdvisor is on an exciting path."

2012 First Quarter Financial Results

First quarter revenue was $183.7 million, an increase of $34.5 million (23%) year over year.

• Pay-per-click advertising - Pay-per-click advertising revenue reached $144.9 million in the first quarter, an increase of 20% year-on-year, accounting for 79% of total revenue in the first quarter, compared with 81% in the same period of 2011.

• Paid Display Advertising - Paid display advertising revenues reached $21.6 million in the first quarter, up 17% year-over-year and accounting for 12% of total revenues in the first quarter, compared to 12% in the same period of 2011.

• Subscription and Other Revenues - Subscription and Other Revenues for the first quarter totaled $17.2 million, up 67% year-over-year and accounted for 9% of total revenues for the first quarter, compared to 7% in the same period of 2011.

Revenue from the United States in the first quarter was $95.4 million, accounting for 52% of total revenue. Revenue from the United Kingdom was $28 million, accounting for 15% of total revenue. Revenue from other countries was $60.3 million, accounting for 33% of total revenue.

Expedia-related revenues in the first quarter were $51.6 million, a decrease of $2.4 million (4%) from the same period last year.

In accordance with US GAAP, net income for the first quarter was $48.1 million, or $0.35 per diluted share, compared with $47.3 million, or $0.35 per diluted share, for the same period in 2011.

Adjusted EBITDA for the first quarter was $84.2 million, or 46% of revenue, compared with $82 million, or 55%, in the same period of 2011.

Cash flow from operating activities was $29.7 million in the first quarter, a decrease of $23.6 million (44%) from the first quarter of 2018, primarily due to adjustments in operating funds related to TripAdvisor's separation from Expedia, including investments in infrastructure and resources as a public company.

First Quarter and Recent Operational Summary

• TripAdvisor continues to grow its content, with users posting more than 40 reviews every minute. The platform has more than 60 million reviews and opinions covering more than 570,000 hotels and accommodations, 800,000 restaurants and 180,000 attractions in more than 110,000 destinations around the world.

• TripAdvisor announced that it has entered into a content licensing partnership with Wyndham Hotel Group, bringing its content partnerships to more than 400 companies. Additionally, TripAdvisor content is displayed on more than 50,000 partner websites.

• TripAdvisor continues to deepen its integration with Facebook, providing a personalized travel planning experience to 120 million Facebook users as of March 31, 2012, a 34% increase from the end of 2011. Beginning in the second quarter, TripAdvisor launched “Friend of a Friend,” which allows Facebook users to see an average of 10 times more content from their friends than before.

• The TripAdvisor mobile app is downloaded more than 25 times a minute, with a total of 17 million downloads. As of March 31, 2012, the site had more than 23 million unique visitors per month from mobile devices. Page views from mobile devices increased more than 250% year-over-year, and page views from tablets increased more than 300% in the first quarter.

• TripAdvisor launches SeatGuru mobile app and new HTML5 cross-platform tablet app (now available for Android and iOS)

• TripAdvisor has launched a new hotel listing tool that allows hotel managers to track review activity, real-time popularity rankings, TripAdvisor ratings, top-visit competitors, visitor sources, dynamic page view data charts, special offers and more.