TripAdvisor Inc
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30,2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number:001-35362
(Exact name of registrant as specified in its charter)
| Delaware | 80-0743202 |
|---|---|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |
400 1 st Avenue
Needham, MA 02494
(Address of principal executive office) (Zip Code)
Registrant’s telephone number, including area code:
(781)800-5000
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common stock | TRIP | Nasdaq |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
|---|---|---|---|
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| Emerging growth company | ☐ | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No☒
| Class | Outstanding Shares at October 31, 2024 |
|---|---|
| Common Stock, $0.001 par value per share | 126,535,867 shares |
| Class B common stock, $0.001 par value per share | 12,799,999 shares |
Tripadvisor, Inc.
Form 10-Q
For the Quarter Ended September 30, 2024
Table of Contents
| Page | |
|---|---|
| Part I—Financial Information | |
| Item 1. Unaudited Condensed Consolidated Financial Statements | |
| Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 | 3 |
| Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 | 4 |
| Unaudited Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023 | 5 |
| Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended September 30, 2024 and 2023 | 6 |
| Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 | 8 |
| Notes to Unaudited Condensed Consolidated Financial Statements | 9 |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26 |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk | 42 |
| Item 4. Controls and Procedures | 43 |
| Part II—Other Information | |
| Item 1. Legal Proceedings | 43 |
| Item 1A. Risk Factors | 44 |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 44 |
| Item 3. Defaults Upon Senior Securities | 44 |
| Item 4. Mine Safety Disclosures | 44 |
| Item 5. Other Information | 44 |
| Item 6. Exhibits | 45 |
| Signatures | 46 |
PART I – FINANCIAL INFORMATION
Item 1. Unaudited Condensed Consolidated Financial Statements
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| 2024 | 2023 | 2024 | 2023 | |
| Revenue (Note 3) | $532 | $533 | $1,424 | $1,398 |
| Costs and expenses: | ||||
| Cost of revenue (1) (exclusive of depreciation and amortization as shown separately below) | 47 | 43 | 128 | 113 |
| Selling and marketing (1) | 271 | 272 | 755 | 761 |
| Technology and content (1) | 73 | 66 | 224 | 205 |
| General and administrative (1) | 51 | 49 | 161 | 144 |
| Depreciation and amortization | 21 | 21 | 63 | 63 |
| Restructuring and other related reorganization costs (benefit) (Note 5) | (1) | 18 | 1 | 18 |
| Total costs and expenses | 462 | 469 | 1,332 | 1,304 |
| Operating income (loss) | 70 | 64 | 92 | 94 |
| Other income (expense): | ||||
| Interest expense | (13) | (11) | (35) | (33) |
| Interest income | 13 | 13 | 38 | 35 |
| Other income (expense), net | (4) | (2) | (7) | (3) |
| Total other income (expense), net | (4) | — | (4) | (1) |
| Income (loss) before income taxes | 66 | 64 | 88 | 93 |
| (Provision) benefit for income taxes (Note 8) | (27) | (37) | (84) | (115) |
| Net income (loss) | $39 | $27 | $4 | $(22) |
| Earnings (loss) per share attributable to common stockholders (Note 12): | ||||
| Basic | $0.28 | $0.20 | $0.03 | $(0.16) |
| Diluted | $0.27 | $0.19 | $0.03 | $(0.16) |
| Numerator used to compute net income (loss) per share attributable to common stockholders (Note 12): | ||||
| Basic | $39 | $27 | $4 | $(22) |
| Diluted | $39 | $27 | $5 | $(22) |
| Weighted average common shares outstanding (Note 12): | ||||
| Basic | 139 | 138 | 139 | 140 |
| Diluted | 144 | 143 | 145 | 140 |
| (1) Includes stock-based compensation expense as follows (Note 10): | ||||
| Cost of revenue | $— | $— | $1 | $1 |
| Selling and marketing | $6 | $4 | $17 | $12 |
| Technology and content | $13 | $10 | $38 | $30 |
| General and administrative | $12 | $10 | $36 | $29 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions)
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| 2024 | 2023 | 2024 | 2023 | |
| Net income (loss) | $39 | $27 | $4 | $(22) |
| Other comprehensive income (loss), net of tax: | ||||
| Foreign currency translation adjustments, net of tax (1) | 17 | (10) | 7 | (7) |
| Reclassification adjustments included in net income (loss), net of tax (1) | — | — | 3 | — |
| Total other comprehensive income (loss), net of tax | 17 | (10) | 10 | (7) |
| Comprehensive income (loss) | $56 | $17 | $14 | $(29) |
(1) Deferred income tax liabilities related to these amounts are not material.
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