TRIP Q4 2022 Earnings

Call Details

• Call Title: TripAdvisor, Inc. Q4 2022 Earnings Call
• Date: February 15, 2023 at 1:30 PM UTC
• Management Team:
  • Angela White (VP of Investor Relations)
  • Matt Goldberg (President and CEO)
  • Mike Noonan (Chief Financial Officer)

Call Summary

Financial Performance

• Consolidated revenue in Q4 was $354M, reflecting year-over-year growth of 47% and reaching 106% of 2019 levels.
• Full-year consolidated revenue was approximately $1.5B, which is 96% of 2019 levels and represents 65% year-over-year growth.
• Adjusted EBITDA in Q4 was $43M, or 12% of revenue, which was flat versus Q4 2021 and down versus 27% in Q4 2019.
• Adjusted EBITDA for full-year 2022 was $295M, or 20% of revenue, versus 11% in 2021 and 28% in 2019.
• Free cash flow for 2022 was $344M compared with $54M in 2021, driven by higher operating cash flow and Viator working capital timing.
• Cash on hand was reported at just over $1.0B with total liquidity of $1.5B including the undrawn credit facility.
• Segment-level Q4 recoveries versus 2019 were TripAdvisor Core 85%, Viator 208%, and The Fork 94%.
• TripAdvisor Core revenue for full-year 2022 was $966M, growing 45% year-over-year and reaching 79% of 2019 levels.

Guidance

• For full-year 2023, consolidated revenue growth is expected to be consistent with broader travel trends, described as mid-teens growth by the company.
• Consolidated adjusted EBITDA margins are expected to remain flat year-over-year for full-year 2023.
• Q1 2023 consolidated EBITDA margins are expected to be largely consistent with the same period a year ago, assuming flat margins in TripAdvisor Core.
• January 2023 TripAdvisor Core recovery versus 2019 was described as mid-70s percent, a step down from Q4 2022.
• The company expects a net incremental income tax charge in Q1 2023 in the range of $25M to $35M and a net cash outflow of about $70M to $80M during 2023 related to the disclosed IRS audit item.
• The company signaled that Viator will continue to receive growth investment in 2023 and that The Fork targets material margin improvement, especially in H2 2023.