NEEDHAM, Mass., June 22, 2020 /PRNewswire/ -- In light of the
extraordinary circumstances related to the COVID-19 pandemic,
Tripadvisor, Inc. (NASDAQ: TRIP) ("Tripadvisor" or the "Company")
provided a business update regarding its (1) business trends, (2)
expense management, (3) Adjusted EBITDA expectations, and (4)
liquidity. Tripadvisor does not expect to provide such
intra-quarter updates in the future.
Business Trends - Since the second
half of Q1 2020, actions instituted by government authorities to
limit the spread of COVID-19 have impacted consumers' willingness
to research, purchase, and consume travel. While still down
significantly year-over-year, Tripadvisor monthly unique users have
improved since April. In April and May monthly unique users were
approximately 33% and 45% of last year's comparable period,
respectively, and May monthly unique users increased approximately
38% versus April. Based on June trends month-to-date, the Company
estimates that June year-over-year monthly unique user performance
will improve versus May. Monthly unique users is a metric the
Company uses to understand consumers' demand for travel.
As referenced in Tripadvisor's first quarter shareholder letter
dated May 7, 2020, in the back half
of March and through April, significant year-over-year revenue
declines generally stabilized across the Company's segments and
products. April and May consolidated year-over-year revenue
performance was approximately 10% of last year's comparable period
and the Company currently expects June revenue will approach
20% of last year's comparable period. While the Company continues
to expect year-over-year revenue performance for the quarter ended
June 30, 2020 will be materially
worse than such performance for the quarter ended March 31, 2020, the Company continues to expect
some sequential quarter-over-quarter revenue improvement versus Q2
2020 starting in Q3 2020.
Expense Management - In the Company's
earnings release for Q1 2020, the Company also announced a number
of cost measures that it had taken, or was in the process of
taking, in order to significantly reduce fixed and variable
expenses and reinforce its financial position. By enacting
significant workforce reductions and managing variable costs
approximately in line with demand, the Company remains on track to
deliver these announced cost savings.
Adjusted EBITDA - In its Q1 earnings release,
the Company disclosed its expectation for "significantly negative"
adjusted EBITDA for Q2 2020. Given the modestly improving business
trends in May versus April, and June month-to-date versus May, as
well as the cost measures taken to significantly reduce fixed and
variable costs, the Company currently estimates that its Adjusted
EBITDA loss for Q2 2020 will be approximately $85 million.
Liquidity - As of May 31, 2020, the Company had $693 million of cash and cash equivalents, which
represents a decrease of $105 million
compared to the cash and cash equivalents balance at March 31, 2020. The decrease was driven by
negative operating profit as well as working capital movements,
which include payments related to restructuring costs and a
reduction in deferred merchant payables mainly from refunds. As a
result of concerted cost reduction measures enacted year-to-date,
the Company continues to believe the business has sufficient
liquidity to withstand an extended period of revenue disruption and
remains confident in its ability to remain compliant with its debt
covenants in 2020 and through 2021. The Company may consider
capital raising options in the future.
While it remains difficult to forecast the recovery path and
when the travel market will regain pre-COVID levels, the Company
remains confident travel will rebound and that the Company is well
positioned to respond to any scenarios that could evolve. The
Company continues to believe it will play a critical role in that
recovery and beyond by continuing to actively support its
consumers, partners and employees worldwide.
Tripadvisor expects to release financial results for the second
quarter ended June 30, 2020 in early
August.
Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act. Certain words, when used, are intended to
identify forward-looking statements. Those words include, but are
not limited to, the following: "anticipate," "believe," "could,"
"estimate," "expect," "intend," "may," "might," "plan," "project,"
"target," "result," "should," "will," and similar expressions which
do not relate solely to historical matters. Among others,
statements regarding management's expectations for future business
trends, cost savings, Adjusted EBITDA, liquidity, and capital
raises are forward-looking statements. We caution investors that
any forward-looking statements are based on management's beliefs
and on assumptions made by, and information currently available to,
management. Such statements are subject to risks, uncertainties and
assumptions and are not guarantees of future performance, which may
be affected by known and unknown risks, trends, uncertainties and
factors that are beyond our control. Some of the risks and
uncertainties that may cause our actual results, performance or
achievements to differ materially from those expressed or implied
by forward-looking statements include the severity and duration of
the coronavirus outbreak, the related impact on people's ability
and willingness to travel, future decline in our travel demand and
increase in customer cancellations, further declines or disruptions
in the economy in general and travel industry, in particular, our
ability to implement cost-savings measures and the other risks and
uncertainties more fully described in Part II. Item 1A. "Risk
Factors" of our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2020. Moreover, we operate
in a rapidly changing environment. New risk factors emerge from
time to time and it is not possible for management to predict all
such risk factors, nor can we assess the impact of all such risk
factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
We caution you that, while forward-looking statements reflect our
good faith beliefs when we make them, they are not guarantees of
future performance and are impacted by actual events when they
occur after we make such statements. We expressly disclaim any
responsibility to update our forward-looking statements, whether as
a result of new information, future events or otherwise.
Investors should also refer to our quarterly reports on Form
10-Q for future periods and current reports on Form 8-K as we file
them with the SEC and to other materials we may furnish to the
public from time to time through current reports on Form 8-K or
otherwise, for a discussion of risks and uncertainties that may
cause actual results, performance or achievements to differ
materially from those expressed or implied by forward-looking
statements.
Use of Non-GAAP Financial Measures
This communication includes references to forecasted adjusted
EBITDA, which is considered a non-GAAP financial measure as it is
not prepared in conformity with accounting principles generally
accepted in the United States
("GAAP"). This non-GAAP financial measure is not prepared under a
comprehensive set of accounting rules and, therefore, should only
be reviewed alongside results reported under GAAP. We have not
reconciled forecasted adjusted EBITDA to projected GAAP net income
(loss) because we do not provide guidance on GAAP net income (loss)
or the reconciling items between adjusted EBITDA and GAAP net
income (loss), as a result of the uncertainty regarding, and the
potential variability of, certain of these items. Accordingly, a
reconciliation of the forecasted non-GAAP financial measure to the
corresponding GAAP measure is not available without unreasonable
effort.
About Tripadvisor
Tripadvisor, the world's largest travel platform*, helps 463
million travelers each month** make every trip their best trip.
Travelers across the globe use the Tripadvisor site and app to
browse 860 million reviews and opinions of 8.7 million
accommodations, restaurants, experiences, airlines and cruises.
Whether planning or on a trip, travelers turn to Tripadvisor to
compare low prices on hotels, flights and cruises, book popular
tours and attractions, as well as reserve tables at great
restaurants. Tripadvisor, the ultimate travel companion, is
available in 49 markets and 28 languages.
The subsidiaries and affiliates of Tripadvisor, Inc.
(NASDAQ:TRIP) own and operate a portfolio of travel media brands
and businesses, operating under various websites and apps,
including the following websites: www.airfarewatchdog.com,
www.bokun.io, www.bookingbuddy.com, www.cruisecritic.com,
www.familyvacationcritic.com, www.flipkey.com, www.thefork.com
(including www.lafourchette.com, www.eltenedor.com, and
www.bookatable.co.uk), www.holidaylettings.co.uk,
www.holidaywatchdog.com, www.housetrip.com, www.jetsetter.com,
www.niumba.com, www.onetime.com, www.oyster.com, www.seatguru.com,
www.singleplatform.com, www.smartertravel.com,
www.vacationhomerentals.com, and www.viator.com.
* Source: Jumpshot for Tripadvisor Sites, worldwide,
November 2019
** Source: Tripadvisor internal log files, average monthly
unique visitors, Q3 2019
TRIP-G
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SOURCE Tripadvisor