In 2024, Tripadvisor net worth reached new heights, reflecting its influence in the travel industry. Understanding Tripadvisor’s financial performance is essential to grasp the factors driving its growth.
In this article, I’ll explore key revenue sources, major contributors like Viator, and its profitability in detail. Welcome to this financial deep dive brought to you by Ando Money.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Tripadvisor |
| Full Name | Tripadvisor, Inc. |
| Website | www.tripadvisor.com |
| Industry | Travel and Tourism |
| Traded as | NASDAQ: TRIP |
| ISIN | US8969452015 |
| Founded | February 2000 |
| Founders | Stephen Kaufer, Langley Steinert |
| Country/Territory | United States |
| Headquarters | Needham, Massachusetts, U.S. |
| Chief Executive Officer | Matt Goldberg |
| Number of Employees | Approx. 2,200 (2024) |
| Market Cap | $2.07 Billion USD |
| Total Assets | $2.779 Billion USD |
| Total Equity | $857 Million USD |
| Revenue | $497 Million USD (Q2 2024) |
| Net Income | $24 Million USD |
What is the Net Worth/Market Cap of Tripadvisor in 2024?
In 2024, Tripadvisor’s market cap was $2.07 billion. This ranks Tripadvisor among mid-tier companies in the global travel and tourism industry. Its value comes from its influential platforms like Viator and TheFork.
Compared to giants in the tech and tourism space, Tripadvisor remains a strong competitor. This year, however, Tripadvisor is still far behind some of the richest companies. Here’s a list of notable competitors and partners:
- Expedia
- Booking Holdings
- Airbnb
- Viator
- TheFork
- Priceline
- Trip.com
- Google Travel
- Yelp
- Kayak
Tripadvisor Financial Performance Overview
Revenue Breakdown by Business Segments
Tripadvisor‘s revenue in Q2 2024 was $497 million, a slight 1% growth year-over-year. The largest contributors to this revenue were Viator and TheFork.
Viator brought in $244 million with a 13% year-over-year increase, making it a significant driver of Tripadvisor’s revenue growth.
TheFork followed with $42 million, representing an 11% increase.
Other segments under Tripadvisor’s umbrella also added to its financial success. Brand Tripadvisor, which includes branded hotels, experiences, and dining, saw a decline of 10%, generating $250 million in revenue.
This decrease was driven mainly by a slowdown in hotel revenue, dropping by 14% year-over-year.
Major Factors Driving Revenue Growth
The growth of Viator and TheFork are key factors behind Tripadvisor’s stable revenue. Viator experienced a surge in bookings and gross bookings value (GBV) that reached $1.2 billion.
The seamless integration of experiences and dining options helped keep TheFork competitive in the online reservation market, especially with a 5% increase in bookings.
In contrast, Tripadvisor’s branded hotels and media & advertising have faced challenges, with hotel revenue falling and media revenue declining by 2%.
However, product innovations and marketing efficiencies continue to fuel optimism for long-term growth.
Profitability and Cost Management
Tripadvisor’s profitability remained stable, with net income of $24 million in Q2 2024, unchanged from last year.
However, non-GAAP net income saw a 16% increase to $57 million. The company’s focus on cost management helped maintain a solid Adjusted EBITDA of $97 million, which is 20% of total revenue.
Cost controls were evident in marketing and technology expenses. Selling and marketing costs decreased to $263 million, while technology and content expenses rose slightly by 6% year-over-year to $75 million.
Impact of Cash Flow on Business Operations
Tripadvisor’s free cash flow was $37 million for Q2 2024, a substantial drop from $90 million in Q2 2023.
Despite this decline, the company’s cash reserves stood at a healthy $1.176 billion, giving Tripadvisor the flexibility to reinvest in its business.
A key highlight was the $25 million share repurchase during the quarter, a strategy designed to boost shareholder value and reflect confidence in Tripadvisor’s financial stability.
Segment Performance Over Time
Looking at segment performance over time, Viator‘s revenue growth outpaces other areas. With a 13% increase in 2024, it continues to drive Tripadvisor’s overall growth, supported by an 8% rise in GBV.
TheFork also showed resilience with an 11% year-over-year increase in revenue, and bookings grew by 5%.
Conversely, Brand Tripadvisor, particularly its hotel business, faces more challenges, with revenue dipping by 10%.
Strategic Investments and Their Financial Impact
Tripadvisor has made significant investments in technology and content development, with $75 million allocated to this area in Q2 2024.
Additionally, the company continues to enhance its product offerings across its different platforms, focusing on user experience and operational efficiency.
In terms of capital expenditure, $31 million was invested in website and platform development, which is crucial for maintaining its competitive edge in the fast-evolving travel industry.
Key Financial Metrics
In Q2 2024, Tripadvisor’s operating income was $36 million, a decrease from $44 million the previous year.
This reflects the challenges faced in the hotel and media sectors. The company’s total assets reached $2.779 billion, and total equity was $857 million.
Its long-term debt stands at $841 million, a manageable figure considering Tripadvisor’s liquidity, bolstered by its $1.176 billion in cash reserves.
FAQs About Tripadvisor
How does Viator contribute to Tripadvisor’s financial performance?
Viator is a major revenue driver for Tripadvisor, bringing in $244 million in Q2 2024. Its 13% growth year-over-year reflects its significance within the overall business.
What is Tripadvisor’s strategy for profitability?
Tripadvisor’s profitability strategy focuses on cost management, efficient marketing, and investment in technology. This resulted in $97 million in adjusted EBITDA, or 20% of total revenue, during Q2 2024.
What are Tripadvisor’s major revenue sources?
Its key revenue sources include Viator, TheFork, and brand Tripadvisor. In 2024, Viator accounted for $244 million in revenue, while TheFork added $42 million.
What is Tripadvisor’s cash flow situation?
In Q2 2024, the company generated $37 million in free cash flow. The company holds $1.176 billion in cash reserves, ensuring operational flexibility.
How has Tripadvisor’s branded hotel revenue performed?
Its branded hotel segment saw a 14% decline in revenue during Q2 2024. This was due to challenges in the travel industry and shifting consumer behavior.
Conclusion:
Tripadvisor’s financial performance showcases a mix of strong revenue drivers and challenges in the hotel segment.
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