NASDAQ$TRIP

TripAdvisor Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

TripAdvisor's Q4 2020 financial results were announced, revealing a challenging quarter due to the pandemic's impact on the travel industry, but the company expressed optimism for 2021, citing vaccine developments and growing pent-up travel demand.

TripAdvisor's Q4 2020 revenue was $116 million, a 65% decrease compared to Q4 2019. The company reported a net loss of $73 million, and non-GAAP EPS was $(0.41). Despite the challenges, TripAdvisor is optimistic about 2021, focusing on building direct customer relationships and prudent cost management.

  • Total revenue decreased by 65% compared to the same period in 2019, amounting to $116 million.
  • The company experienced a net loss of $73 million.
  • Non-GAAP net loss was $55 million, with a non-GAAP EPS of $(0.41).
  • Cash and cash equivalents stood at $418 million as of December 31, 2020.

Headline financials

Total Revenue

$116M

Previous: $335M-65.4%
EPS (adj)

-$0.41

Previous: $0.38-207.9%
Capital Expenditures

$9M

Previous: $23M-60.9%
Free Cash Flow

-$24M

Previous: $37M-164.9%
Net Income

-$73M

Previous: $15M-586.7%
Operating Income

-$92M

Previous: $23M-500.0%
Gross Profit

$116M

Previous: $335M-65.4%
Cash & Equivalents

$418M

Previous: $319M+31.0%
Total Assets

$1.97B

Previous: $1.98B-0.8%
Stock-Based Comp

$29M

Previous: $33M-12.1%

Revenue & EPS history

TripAdvisor · Revenue · Quarterly

$116M

Q4 2020-65.4%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Tripadvisor anticipates improvements in the travel industry due to vaccine developments and growing travel demand.

Tailwinds

  • Vaccine developments since November are encouraging.
  • Signals indicate that pent-up travel demand continues to grow.
  • The travel industry is set up for a potential inflection later in the year.
  • Focus on building direct, durable customer relationships.
  • Prudent cost discipline, balancing persistent savings with targeted investments in exciting long-term strategic growth initiatives.

Headwinds

  • The travel industry's recovery progress has slowed as the virus resurged, particularly in Europe.
  • Revenue performance was uneven on a monthly basis.
  • Typical revenue seasonality, as well as the travel industry’s uneven recovery impacting consumer travel demand, materially increased our net loss in Q4 2020 versus Q3 2020.
  • Majority of the sequential expense increase in Q4 versus Q3 was due to an increase in our full year compensation expense.
  • The global pandemic materially affected consumer travel demand for the majority of the year.

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 Q4 2020

Historical avgQ4 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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