| Segment Information |
(13) Segment Information
TripCo, through its ownership interests in Tripadvisor, is primarily engaged in the online commerce industries. TripCo identifies its reportable segments based on how our chief operating decision maker (“CODM”), the chief executive officer, manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of resources.
The Company’s reportable segments are as follows:
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Brand Tripadvisor – This segment includes Tripadvisor-branded hotels revenue, which consists of hotel meta revenue, primarily click-based advertising revenue, and hotel business to business revenue, which includes primarily subscription-based advertising and hotel sponsored placements revenue; Media and advertising revenue, which consists primarily of display-based advertising revenue; Tripadvisor experiences and dining revenue, which consists of intercompany (intersegment) revenue related to affiliate marketing commissions earned from experience bookings, and to a lesser extent, restaurant reservation bookings on Tripadvisor-branded websites and mobile apps, fulfilled by Viator and TheFork, respectively, which are eliminated on a consolidated basis, in addition to external revenue generated from Tripadvisor restaurant offerings; as well as other revenue, which consists of cruises, vacation rentals, flights and rental car revenue. |
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Viator – Tripadvisor provides information and services for consumers to research and book tours, activities and experiences in popular travel destinations through Viator. |
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TheFork – Tripadvisor provides information and services for consumers to research and book restaurants in popular travel destinations through this dedicated restaurant reservations offering. |
The segment disclosure includes intersegment revenue, which consist of affiliate marketing fees for services provided by the Brand Tripadvisor segment to both the Viator and TheFork segments. These intersegment transactions are recorded by each segment at amounts that approximate fair value as if the transactions were between third parties, and therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within Corporate and eliminations in the tables below.
Performance Measures
For segment reporting purposes, TripCo defines Adjusted OIBDA as revenue less marketing, personnel expenses (excluding stock-based compensation), cost of sales, technology expenses and general and administrative expenses (excluding stock-based compensation), adjusted for specifically identified non-recurring transactions. TripCo believes this measure is an important indicator of the operational strength and performance of its businesses, by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results, and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements, transaction related costs, and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance
with GAAP. TripCo generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
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Year ended December 31, 2024 |
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Brand Tripadvisor |
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Viator |
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TheFork |
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Corporate and other |
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Intersegment Eliminations |
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Total |
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amounts in millions |
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Revenue |
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$ |
949 |
|
840 |
|
181 |
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— |
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(135) |
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1,835 |
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Marketing |
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251 |
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562 |
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51 |
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— |
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(135) |
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729 |
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Personnel (excluding stock-based compensation) |
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266 |
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126 |
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83 |
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— |
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— |
|
475 |
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Cost of sales 1 |
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33 |
|
80 |
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15 |
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— |
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— |
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128 |
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Technology |
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54 |
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25 |
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12 |
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— |
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— |
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91 |
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General and administrative (excluding stock-based compensation) 1 |
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44 |
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14 |
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15 |
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15 |
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— |
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88 |
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Adjusted OIBDA |
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$ |
301 |
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33 |
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5 |
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(15) |
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— |
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324 |
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Year ended December 31, 2023 |
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Brand Tripadvisor |
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Viator |
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TheFork |
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Corporate and other |
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Intersegment Eliminations |
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Total |
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amounts in millions |
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Revenue |
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$ |
1,031 |
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737 |
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154 |
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— |
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(134) |
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1,788 |
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Marketing |
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|
279 |
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519 |
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41 |
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— |
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(134) |
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705 |
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Personnel (excluding stock-based compensation) |
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273 |
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110 |
|
91 |
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— |
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— |
|
474 |
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Cost of sales |
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31 |
|
79 |
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9 |
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— |
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— |
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119 |
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Technology |
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50 |
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18 |
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12 |
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— |
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— |
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80 |
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General and administrative (excluding stock-based compensation) 1 |
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50 |
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11 |
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15 |
|
10 |
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— |
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86 |
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Adjusted OIBDA |
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$ |
348 |
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— |
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(14) |
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(10) |
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— |
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324 |
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Year ended December 31, 2022 |
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Brand Tripadvisor |
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Viator |
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TheFork |
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Corporate and other |
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Intersegment Eliminations |
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Total |
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amounts in millions |
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Revenue |
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$ |
966 |
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493 |
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126 |
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— |
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(93) |
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1,492 |
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Marketing |
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260 |
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351 |
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58 |
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— |
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(93) |
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576 |
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Personnel (excluding stock-based compensation) |
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249 |
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81 |
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85 |
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— |
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— |
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415 |
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Cost of sales |
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20 |
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51 |
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7 |
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— |
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— |
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78 |
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Technology |
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42 |
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9 |
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12 |
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— |
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— |
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63 |
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General and administrative (excluding stock-based compensation) 1 |
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|
50 |
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12 |
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3 |
|
8 |
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— |
|
73 |
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Adjusted OIBDA |
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$ |
345 |
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(11) |
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(39) |
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(8) |
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— |
|
287 |
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1) |
Excludes certain adjustments to Adjusted OIBDA as detailed below in the reconciliation of Adjusted OIBDA to operating income and earnings (loss) before income taxes. |
In addition, we do not report assets, capital expenditures and related depreciation expense by segment as our CODM does not use this information to evaluate operating segments. Accordingly, we do not regularly provide such information by segment to our CODM.
Revenue by Geographic Area
The Company measures its geographic revenue information based on the physical location of the Tripadvisor subsidiary which generates the revenue, which is consistent with the measurement of long-lived physical assets, or property and equipment, net.
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December 31, |
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2024 |
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2023 |
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2022 |
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amounts in millions |
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United States |
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$ |
1,230 |
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1,198 |
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905 |
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United Kingdom |
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334 |
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349 |
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402 |
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Other countries |
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271 |
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241 |
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185 |
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Consolidated TripCo |
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$ |
1,835 |
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1,788 |
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1,492 |
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Long-lived Assets by Geographic Area
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December 31, |
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2024 |
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2023 |
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amounts in millions |
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United States |
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$ |
72 |
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82 |
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Other countries |
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12 |
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5 |
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Consolidated TripCo |
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$ |
84 |
|
87 |
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The following table provides a reconciliation of Adjusted OIBDA to operating income (loss) and earnings (loss) before income taxes:
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Years ended December 31, |
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2024 |
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2023 |
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2022 |
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amounts in millions |
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Adjusted OIBDA |
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$ |
324 |
|
324 |
|
287 |
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Stock-based compensation |
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(121) |
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(99) |
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(93) |
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Depreciation and amortization |
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(85) |
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(87) |
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(97) |
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Impairment of goodwill and intangible assets |
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(663) |
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(1,025) |
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— |
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Restructuring and related reorganization costs (1) |
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(21) |
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(22) |
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— |
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Transaction related expenses (2) |
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(3) |
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(3) |
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— |
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Other non-recurring expenses (3) |
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— |
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— |
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(8) |
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Legal reserves and settlements (4) |
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(18) |
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— |
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(1) |
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Operating income (loss) |
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(587) |
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(912) |
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88 |
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Interest expense |
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(71) |
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(67) |
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(65) |
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Dividend and interest income |
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50 |
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49 |
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16 |
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Realized and unrealized gains (losses) on financial instruments, net |
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5 |
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(32) |
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62 |
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Other, net |
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(9) |
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(5) |
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(8) |
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Earnings (loss) before income taxes |
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$ |
(612) |
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(967) |
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93 |
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(1) |
During the fourth quarter of 2024 and the third quarter of 2023, Tripadvisor initiated a set of actions across its businesses in order to reduce its cost structure, improve operational efficiencies, and realign its workforce with its strategic initiatives. See further details in note 12. |
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(2) |
Tripadvisor expensed certain transaction related costs of $3 million during both of the years ended December 31, 2024 and 2023, to general and administrative expenses on the consolidated statement of operations.
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(3) |
Tripadvisor incurred a loss of approximately $8 million during the fourth quarter of 2022, as the result of external fraud, which was recorded to general and administrative expense on the consolidated statement of operations during the year ended December 31, 2022. Tripadvisor considers such costs to be non-recurring in nature.
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(4) |
This amount primarily includes an estimated accrual for the potential settlement of a regulatory related matter of $10 million, expensed during 2024 (see discussion in note 12), as well as $5 million related to legal settlements that are reflected in general and administrative expenses on the consolidated statement of operations. During the year ended December 31, 2024 Tripadvisor recorded a one-time charge of $3 million resulting from legislation enacted in Canada during June 2024 related to digital services taxes, which requires retrospective application back to January 1, 2022. This amount represents the one-time retrospective liability for the periods prior to April 1, 2024, while any liability subsequent to April 1, 2024 is included within Adjusted OIBDA. This cost is reflected in cost of sales on the consolidated statement of operations.
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