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Mar 31, 2020
TripAdvisor Q1 2020 Earnings Report
TripAdvisor's financial performance was significantly impacted by the COVID-19 pandemic, with revenue and bookings declining sharply in late March and continuing through April.
Key Takeaways
TripAdvisor reported a significant decline in revenue and profitability for Q1 2020 due to the COVID-19 pandemic's impact on the travel industry. The company is taking actions to manage expenses and reinforce its financial position, including workforce reductions and borrowing from its revolving credit facility.
Total revenue decreased by 26% year-over-year to $278 million.
GAAP net loss was $16 million, compared to a net income of $26 million in the same period last year.
The company enacted a workforce reduction affecting approximately 900 employees (23% of workforce).
As of March 31, 2020, cash and cash equivalents totaled $798 million.
TripAdvisor
TripAdvisor
TripAdvisor Revenue by Segment
Revenue by Segment
Branded Hotels Revenue
CapyFin.comMedia & Ads Revenue
CapyFin.comExperiences & Dining Revenue
CapyFin.comOther Brand TRIP Revenue
CapyFin.com Forward Guidance
Company estimates daily bookings and revenue across our segments and products declined year-over-year generally by more than 90% during late March, and this trend continued through April.
Positive Outlook
- Tripadvisor intends to play a critical role by actively supporting our consumers.
- Tripadvisor intends to play a critical role by actively supporting our partners.
- Tripadvisor intends to play a critical role by actively supporting our employees worldwide in the recovery and beyond.
- Company has taken actions in order to reinforce its financial position.
- Company believes it has the liquidity and the revised financial covenants to withstand an extended period of business disruption.
Challenges Ahead
- Government actions in response to the COVID-19 pandemic, including travel bans, shelter-in-place orders and requirements for physical distancing, have had a significant impact on consumers and businesses throughout the world.
- The travel, hospitality, and leisure industries have been particularly challenged.
- Online travel agents, hotels and restaurants comprise a majority of our partners and our revenue.
- Company estimate daily bookings and revenue across our segments and products declined year-over-year generally by more than 90% during late March, and this trend continued through April.
- Company believes it is currently going through the darkest days.
Revenue & Expenses
Visualization of income flow from segment revenue to net income