NASDAQ$TRIP

TripAdvisor Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

TripAdvisor's third quarter results improved compared to the second quarter, with revenue at 35% of the previous year and positive adjusted EBITDA achieved through cost management.

TripAdvisor's Q3 2020 results demonstrated improvement from Q2, achieving positive EBITDA despite significantly reduced revenue levels. The company remains focused on cost controls, strategic investments, and positioning the business for long-term recovery.

  • Q3 revenue reached $151 million, 35% of the prior year's comparable period, showing improvement from Q2's 14%.
  • Monthly unique users on Tripadvisor sites were approximately 74% of last year’s comparable period in September.
  • The company had $446 million in cash and cash equivalents as of September 30, 2020.
  • Positive adjusted EBITDA was achieved through cost reduction measures.

Headline financials

Total Revenue

$151M

Previous: $428M-64.7%
EPS (adj)

-$0.17

Previous: $0.58-129.3%
Capital Expenditures

-$46M

Previous: -$60M+23.3%
Free Cash Flow

-$94M

Previous: -$10M-840.0%
Net Income

-$48M

Previous: $50M-196.0%
Operating Income

-$46M

Previous: $68M-167.6%
Gross Profit

-$13M

Previous: -$24M+45.8%
Cash & Equivalents

$446M

Previous: $838M-46.8%
Total Assets

$2B

Previous: $2.47B-19.1%
Stock-Based Comp

$29M

Previous: $31M-6.5%

Revenue & EPS history

TripAdvisor · Revenue · Quarterly

$151M

Q3 2020-64.7%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

TripAdvisor expects an uneven recovery, particularly in Europe, due to the resurgence of the virus. The company remains focused on deepening customer relationships, delivering value to partners, and rolling out new product offerings.

Tailwinds

  • Continued focus on initiatives to deepen customer relationships
  • Delivery of more value to partners
  • Rollout of new and innovative product offerings to industry partners
  • Rollout of new and innovative product offerings to consumers
  • Positioning the business well for many years to come

Headwinds

  • Expectation for an uneven recovery
  • Resurgence of the virus in Europe
  • Uncertainty due to the unprecedented period for the industry
  • Conservative planning due to early recovery progress
  • Need to prudently balance cost controls with targeted investments

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.4%

Avg return

Earnings day

-3.2%

Avg return

5 days after

-3.5%

Avg return

30 days after

43%

26 / 61 earnings

Positive

+20.8%

Q1 2018

Best reaction

-28.1%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-15.6%+6.1%
Q4 2025-15.1%-13.3%-24.0%
Q3 2025+0.0%+0.2%-0.7%
Q1 2025+12.5%+19.9%+10.7%
Q4 2024-6.8%-15.4%-15.9%
Q3 2024-6.2%-10.2%-13.1%
Q2 2024-13.8%-14.1%-11.8%
Q1 2024-28.1%-26.8%-27.1%
Q4 2023+8.6%+5.1%+7.4%
Q3 2023+13.5%+10.3%+12.1%
Q2 2023-12.6%-12.5%-15.1%
Q1 2023-14.4%-11.6%-11.1%
Q4 2022+3.2%-10.4%-22.1%
Q3 2022-17.0%-6.5%-25.0%
Q2 2022+18.3%+23.7%+16.0%
Q1 2022+4.1%-14.4%-1.0%
Q4 2021-5.2%-7.0%-15.6%
Q3 2021-10.6%-12.1%-22.4%
Q2 2021+3.3%-0.6%-5.9%
Q1 2021-2.8%+0.0%-9.2%
Q4 2020+4.9%+21.0%+57.7%
Q3 2020+1.3%+36.1%+56.9%
Q2 2020-0.1%+4.9%+7.2%
Q1 2020-1.0%-6.6%+40.9%
Q4 2019-0.6%-0.5%-42.7%
Q3 2019-22.8%-22.5%-29.1%
Q2 2019+2.0%-4.8%-10.7%
Q1 2019-13.4%-15.6%-20.2%
Q4 2018-4.4%-4.6%-13.2%
Q3 2018+17.4%+9.9%+8.1%
Q2 2018-11.7%-6.8%-6.3%
Q1 2018+20.8%+24.2%+40.7%
Q4 2017+6.3%+8.6%+9.8%
Q3 2017-21.9%-19.8%-11.5%
Q2 2017+2.5%+6.6%+15.8%
Q1 2017+2.0%-1.7%-20.5%
Q4 2016-10.1%-9.8%-17.1%
Q3 2016-17.0%-19.6%-24.2%
Q2 2016-8.4%-10.9%-11.8%
Q1 2016-5.8%
Q4 2015+10.2%
Q3 2015-6.3%
Q2 2015-11.9%
Q1 2015+1.0%
Q4 2014+17.7%
Q3 2014-15.6%
Q2 2014-2.3%
Q1 2014-0.8%
Q4 2013+7.4%
Q3 2013-0.9%
Q2 2013+17.2%
Q1 2013-4.9%
Q4 2012-6.7%
Q3 2012+15.9%
Q2 2012-20.7%
Q1 2011-5.7%
Q1 2012+13.6%
Q4 2009+9.7%
Q2 2011+9.7%
Q4 2010+9.7%
Q4 2011+5.6%
Q3 2011

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