TripAdvisor Reports Third Quarter 2016 Financial Results

Nov 8, 2016 - revenue per hotel shopper growth improved throughout the quarter and was ... 2016, an increase of $75 million from December 31, 2015, as the Company ... advice from real travelers and a wide variety of travel choices and ...
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Exhibit 99.1 TripAdvisor Reports Third Quarter 2016 Financial Results NEEDHAM, MA, November 8, 2016 — TripAdvisor, Inc. (NASDAQ: TRIP) today announced financial results for the third quarter ended September 30, 2016. “In the third quarter, content and community grew quickly off of massive bases and we continued improving our products and our platform,” said Steve Kaufer, President and Chief Executive Officer of TripAdvisor. “We are focused on building for the long-term, delivering the best end-to-end user experience in travel and creating more value for partners in our marketplace.” Third Quarter 2016 Financial Summary Three months ended September 30, 2016 2015

(In millions, except percentages and per share amounts)

% Change

Total Revenue Hotel Non-Hotel

$ $ $

421 320 101

$ $ $

415 340 75

1% (6 )% 35 %

GAAP Net Income

$

55

$

74

(26 )%

Total Adjusted EBITDA (1) Hotel Non-Hotel

$ $ $

114 99 15

$ $ $

130 121 9

(12 )% (18 )% 67 %

Non-GAAP Net Income (1)

$

78

$

78

0%

Diluted Earnings per Share: GAAP Non-GAAP (1)

$ $

0.37 0.53

$ $

0.51 0.53

Cash flow (used in) from operating activities Free cash flow (1)

$ $

(87 ) $ (108 ) $

(1)

10 (29 )

(27 )% 0% (970 )% (272 )%

“Adjusted EBITDA”, “Non-GAAP Net Income,” Non-GAAP Diluted Earnings per Share,” and “Free cash flow” are non-GAAP measures as defined by the Securities and Exchange Commission (the “SEC”). Please refer to “Non-GAAP Financial Measures” below for definitions and explanations of these non-GAAP financial measures, as well as tabular reconciliations to the most directly comparable GAAP financial measure.

Chief Financial Officer Ernst Teunissen added, “Revenue growth rates improved throughout the third quarter after withstanding some significant headwinds during the first half of this year. This improvement was evident in the U.S, where Click-based and transaction revenue per hotel shopper growth improved throughout the quarter and was positive towards the end of the quarter. We continue to invest for long-term growth.” Third Quarter 2016 Summary  Revenue was $421 million, an increase of 1% year-over-year (an increase of approximately 3% on a constant currency basis).  GAAP Net Income was $55 million, a decrease of 26% year-over-year, or $0.37 per diluted share.  Adjusted EBITDA was $114 million, a decrease of 12% year-over-year (a decrease of approximately 9% on a constant currency basis).  Non-GAAP net income was $78 million, or $0.53 per diluted share.  Cash flow used in operations was $87 million and Free cash flow was negative $108 million.  Average monthly unique visitors reached 390 million*, up 11% year-over-year.  User reviews and opinions grew nearly 50% year-over-year and reached 435 million at September 30, 2016, covering approximately 1,050,000 hotels and accommodations, 830,000 vacation rentals, 4.2 million restaurants and 730,000 attractions and experiences.

1

Third Quarter 2016 Other Financial Highlights Revenue for the third quarter of 2016 was $421 million, an increase of $6 million, or 1% year-over-year (an increase of approximately 3% on a constant currency basis). Three months ended September 30, 2016 2015

(In millions, except percentages)

Revenue by Source: TripAdvisor-branded click-based and transaction (1) TripAdvisor-branded display-based advertising and subscription (2) Other hotel revenue (3) Non-Hotel Total Revenue Revenue by Geography (% of total revenue): North America EMEA APAC LATAM (1) (2) (3)

$

206

$

73 41 101 421

56 % 32