TripAdvisor : 3Q19 Investor Presentation

TripAdvisor Investor Presentation

November 2019

Forward-LookingStatements. Our presentation today, including the slides contained herein, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts or guarantees of future performance and are based on management's assumptions and expectations, which are inherently subject to difficult to predict uncertainties, risks and changes in circumstances. The use of words such as "intends," "expects," "may," "believes," "should," "seeks," "intends," "plans," "potential," "will," "projects," "estimates," "anticipates" or similar expressions generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements, and any statements that refer to expectations, beliefs, plans, predictions, projections, forecasts, objectives, assumptions, models, illustrations, profiles or other characterizations of future events or circumstances are forward-looking statements, including without limitation statements relating to future revenues, expenses, margins, performance, profitability, cash flows, net income/(loss), earnings per share, growth rates and other measures of results of operations (such as adjusted EBITDA) and future growth prospects for TripAdvisor's business. Actual results and the timing and outcome of events may differ materially from those expressed or implied in the forward-looking statements for a variety of reasons, including, among others, those discussed in the "Risk Factors" section of our Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to update any forward-looking or other statements in this presentation, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on forward-looking statements.

Non-GAAPMeasures. This presentation also includes discussion of both GAAP and non-GAAP financial measures. Important information regarding TripAdvisor's definitions and use of these measures, as well as reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure are included in the earnings release reporting our third quarter

2019 financial results and supplemental financial information, which are available on the Investor Relations section of our website: www.tripadvisor.com, and in the "Non-GAAP Reconciliations" section of this document. These non-GAAP measures are intended to supplement, and are not a substitute for comparable GAAP measures. Investors are urged to consider carefully the comparable GAAP measures and reconciliations.

Industry / Market Data. Industry and market data used in this presentation have been obtained from industry publications and sources as well as from research reports prepared for other purposes. We have not independently verified the data obtained from

these sources and cannot assure you of the data's accuracy or completeness.

2

TripAdvisor helps travelers

unleash the full potential

of every trip

3

TripAdvisor is an influential, global player in a category that is shifting online

• $1.7 trillion(1) global travel market opportunity
• Digital advertising dollars following travel content consumption and bookings online
• Large digital tours & activities market opportunity; current online penetration only ~20%(2)
• TripAdvisor's rich content and global community drives brand loyalty, trust and significant influence on travel commerce

1. Based on Phocuswright Research estimates for 2019; includes alternative accommodations and tours & activities
2. Based on Phocuswright's "Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020"

The world's largest travel platform

Massive Global Demand

for Differentiated Travel Content (1)

460M

avg. monthly unique visitors (2)

65%

% of users on mobile

830M

reviews and opinions

195M

candid traveler photos

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markets

TripAdvisor's Global Travel Platform

TripAdvisor	Audience
drives leads
content drives	to travel
audience	partners

TripAdvisor community drives content

Significant Supply Footprint Across a Spectrum of Travel Products (1)

2.3M

Accommodations (3)

1.2M

Travel activities and experiences listings

5.1M

Restaurant listings

500+

Airlines

70K+

Cruises

5

(1) TripAdvisor internal log files

(2) TripAdvisor internal log files during seasonal peak in Q3 2019

(3) Includes approximately 1.4M hotels, inns, B&Bs, and specialty lodging, as well as 885K rental listings

Key growth initiatives to deepen customer engagement and monetize our influence

1. Laying the groundwork for a world-classmedia advertising platform to drive revenue growth
2. Ramping consumer product enhancements that increase habit and both grow - and serve - members
3. Delivering impactful TripAdvisor brand advertising
4. Expanding B2B product suite to help more partners leverage TripAdvisor's global platform
5. Investing strategically in Experiences and Restaurants to drive diversified growth

Compelling media advertising growth opportunity

•	Digital advertising market		2018 Media Advertising Revenue
	growing 14% CAGR to $479				($M)
	$2,617
	billion by 2022 (1)
•	Industry estimates suggest
	native, video and programmatic
	are growing by 20-30% annually
•	TripAdvisor under-indexes		$1,225	$1,180
	relative to other internet						Mean = $1,066
	platforms				$907
					$756
							$622
• Huge advertiser value in
	TripAdvisor's high-intent, global							$153
	audience and brand-safe
	platform	Twitter (2)	eBay(2)	Snap (2)	Yelp (2)	Pinterest(2)	Spotify (2),(3)	TripAdvisor (4)

1. Based on Emarketer forecasts
2. Latest company annual reports (2018)

7 (3) 2018 Ad-supported revenue in USD (€1.00 = $1.1482 as of 12/31/2018)

1. 2018 full-yearTripAdvisor-branded Display and Platform revenue

Laying the foundation for

1. world-classmedia advertising platform

• Building a modern, high- powered advertising suite spanning native, video and programmatic solutions
• Leveraging our global audience, brand-safe platform and first-party data advantage
• Expanding customer base beyond endemic travel

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E&D segment supply and revenue growing rapidly

Experiences Bookable Products(1)

(in thousands, except CAGR)

301

		140
	71
	Q3 2017	Q3 2018	Q3 2019
(1)	TripAdvisor internal log files

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LaFourchette Bookable Products(1)

(in thousands, except CAGR)

		67
	53
46
Q3 2017	Q3 2018	Q3 2019

Experiences & Dining Segment Revenue

(in $ millions, except CAGR)

		$141
	$118
$88
Q3 2017	Q3 2018	Q3 2019

E&D segment contributing to revenue diversification

2017 Experiences & Dining Segment Revenue	YTD 2019 Experiences & Dining Segment Revenue
% of Total Revenue	% of Total Revenue

17%

28%

83%	72%

Experiences & Dining Segment Revenue

Hotels, Media & Platform Segment Revenue

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Ongoing cost prudence driving attractive HM&P segment profitability

Hotels, Media & Platform Segment Adjusted EBITDA (1)	Hotels, Media & Platform Segment Adjusted EBITDA Margin (2)
($ millions, except CAGR)			YTD Adj. EBITDA Margin
	41%

$306

$259

$207

YTD 2017

YTD 2018

YTD 2019

33%

25%

YTD 2017

YTD 2018

YTD 2019

Note: YTD represents nine months ended September 30th

(1) Adjusted EBITDA is our segment profit measure and is defined as net income plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and website development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived asset and intangible asset impairments, (7) legal reserves and settlements, and (8) other non-

11 recurring expenses and income

1. TripAdvisor defines "Adjusted EBITDA margin by segment" as segment adjusted EBITDA divided by segment revenue

Q3 2019 revenue and Adjusted EBITDA contribution

Q3 2019 Revenue and Adjusted EBITDA (1)

Business Segment Contribution

$49M	11%		16%	$21M
			12%	$15M
$141M	33%
		Hotels, Media & Platform Segment
		Experiences & Dining Segment
		Other
			72%	$93M
$238M	56%
	$428M	$50M	$129M

		Consolidated Revenue	GAAP Net Income (1)	Adjusted EBITDA (2)
	(1)	The Company does not calculate or report net income by segment
12	(2)	Adjusted EBITDA is a non-GAAP measure and is defined as net income plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and website
	development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived asset and intangible asset impairments, (7) legal reserves and settlements, and (8) other non-recurring

expenses and income

We operate a very profitable, cash-generative business

Revenue scale

$1.6B(1)

2018 Total Revenue

Strong profitability

$113M	$422M(2)
2018 GAAP Net Income	2018 Adj. EBITDA

Cash flow generative

$405M	$344M(3)
2018 Operating Cash Flow	2018 Free Cash Flow

1. Full year 2018 Revenue was $1,615M on a consolidated basis
2. Adjusted EBITDA is a non-GAAP measure and is defined as net income plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and website

	development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived asset and intangible asset impairments, (7) legal reserves and settlements, and (8) other non-recurring
13	expenses and income
(3)	TripAdvisor defines "free cash flow", a non-GAAP measure, as net cash provided by operating activities less capital expenditures, which are purchases of property and equipment, including capitalization of internal-use software development costs

Ample liquidity enables capital allocation flexibility

Strong Liquidity Position

(in $millions)

$933			Cash, cash equivalents and
			short-term marketable securities

Revolving Credit Facility

$1,200

As of Q3 2019

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Executing capital allocation strategy

Three components:

1. Evaluating cost structure, prudently reducing and re-allocatingto preserve strong profitability while investing in strategic growth areas
2. Returning capital to shareholders in two ways:
3. • Declared a special cash dividend of $3.50 per share
   • Increased our existing share repurchase authorization to $250M
4. Strong profitability and balance sheet enable us to invest, return capital and target strategic M&A

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Unique, valuable platform with long-term focus

Investment summary:

• Attractive $1.7 trillion global market and travel purchases shifting online
• Huge global audience drives significant influence
• Valuable platform with untapped monetization potential
• Operating prudently and investing for diversified growth
• Cash generation and liquidity to fund growth investments, capital returns and M&A
• Advantageous ownership structure; long-terminvestment horizon

Segment financial information

(in $ millions, except percentages)	Q3 2017	Q3 2018	Q3 2019
Revenue:
		Hotels, Media & Platform	$265	$270	$238
	Growth % (y/y)		2%	(12)%
		Experiences & Dining	$88	$118	$141
	Growth % (y/y)		34%	19%
		Other (1)	$86	$70	$49
	Growth % (y/y)		(19)%	(30)%
Consolidated Revenue	$439	$458	$428
Growth % (y/y)		4%	(7)%
Adjusted EBITDA:
	Hotels, Media & Platform	$48	$97	$93
	Growth % (y/y)		102%	(4)%
	Experiences & Dining	$22	$28	$15
	Growth % (y/y)		27%	(46)%
	Other (1)	$25	$21	$21
	Growth % (y/y)		(16)%	0%
Total Adjusted EBITDA (2)	$95	$146	$129
Growth % (y/y)		54%	(12)%
Adjusted EBITDA Margin by Segment:
	Hotels, Media & Platform	18%	36%	39%
	Experiences & Dining	25%	24%	11%
	Other (1)	29%	30%	43%
Total Adjusted EBITDA margin (3)	22%	32%	30%
GAAP Net Income (4)	$25	$69	$50
Growth % (y/y)		176%	(28)%
GAAP Net Income margin	6%	15%	12%

1. Other consists of the combination of our Rentals, Flights/Cruise/Car Rentals, SmarterTravel and TripAdvisor China business units and does not constitute a reportable segment
2. Adjusted EBITDA is a non-GAAP measure and is defined as net income plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and website

	development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived assets and intangible asset impairments; (7) legal reserves and settlements; and (8) non-recurring
17 (3)	expenses and income
TripAdvisor defines "Adjusted EBITDA margin" as adjusted EBITDA divided by revenue
(4)	This amount reflects our consolidated GAAP net income for the periods presented. TripAdvisor does not calculate or report net income (loss) by segment

Financial summary

	Q3 2017		Q3 2018		Q3 2019
(in $ millions, except Earnings per Share, "EPS")
	$25
GAAP Net income	$69	$50
Non-GAAP net income (1)	$50	$101	$81
GAAP Diluted EPS	$0.18	$0.49	$0.36
Non-GAAP Diluted EPS (2)	$0.36	$0.72	$0.58
Cash, cash equivalents & marketable securities (4)	$769	$663	$933

	(1)	TripAdvisor defines "non-GAAP net income" as GAAP net income excluding, net of their related tax effects (which excludes the impact of significant one-time changes resulting from tax legislation such as the 2017 Tax Act): (1) stock-based
		compensation expense and other stock-settled obligations; (2) amortization of intangible assets; (3) goodwill, intangible assets, and other long-lived asset impairments; (4) legal reserves and settlements, and (5) certain gains, losses, and other
		non-recurring income or expenses that we do not believe are indicative of our ongoing operating results
18	(2)	TripAdvisor defines "non-GAAP net income per diluted share" as non-GAAP net income divided by GAAP diluted shares
(3)	TripAdvisor defines "free cash flow", a non-GAAP measure, as net cash provided by operating activities less capital expenditures, which are purchases of property and equipment, including capitalization of internal-use software development costs
	(4)	Includes short-term and long-termavailable-for-sale marketable debt securities

Non-GAAP reconciliations

	2017	2018	2019
(in $millions, except per share amounts and percentages)	Q3	Q3	Q3
Reconciliation from GAAP Net Income to Adjusted EBITDA (Non-GAAP):
GAAP Net Income (1)	$25	$69	$50
Add: Provision for income taxes (1)	13	18	23
Add: Other expense (income), net	4	2	(5)
Add: Stock-based compensation expense	26	29	29
Add: Amortization of intangible assets	8	8	9
Add: Depreciation (2)	19	20	23
Adjusted EBITDA (Non-GAAP)(3)	$95	$146	$129
Reconciliation from GAAP Net Income to Non-GAAP Net Income:
GAAP Net Income (1)	$25	$69	$50
Add: Stock-based compensation expense	26	29	29
Add: Amortization of intangible assets	8	8	9
Add: (Gain)/Loss on investments	2	(1)	-
Subtract: Income tax effect of Non-GAAP adjustments (4)	11	6	7
Add: Income tax impact related to U.S. Tax Cuts and Jobs Act of 2017 (1)	-	2	-
Non-GAAP Net Income (5)	$50	$101	$81
Reconciliation from GAAP Earnings per Share (EPS) to Non-GAAP EPS:
GAAP Diluted Shares Outstanding	139	141	140
GAAP Diluted Earnings per Share	$0.18	$0.49	$0.36
Non-GAAP Diluted EPS (6)	$0.36	$0.72	$0.58
Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow:
Cash flow provided by (used in) operations	($135)	$14	$1
Subtract: Capital expenditures	15	15	23
Free Cash Flow (Non-GAAP)(7)	($150)	($1)	($22)

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Non-GAAP reconciliations - End notes

The Company believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enables comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating and analyzing our business.

1. Includes an estimated U.S. Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") transition tax expense of $2 million for the three months ended September 30, 2018
2. Depreciation. Includes internal use software and website development amortization.
3. Adjusted EBITDA. A non-GAAP measure which is defined as net income (loss) plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and website development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived assets and intangible asset impairments; (7) legal reserves and settlements; and (8) non-recurring expenses and income. These items are excluded from our Adjusted EBITDA measure because these items are noncash in nature, or because the amount is not driven by core operating results and renders comparisons with prior periods less meaningful.
4. Income Tax Effect of Non-GAAPAdjustments. The non-GAAP adjustments described are reported on a pre-tax basis. The income tax effect on non-GAAP adjustments was calculated based on the individual impact that these items had on our GAAP consolidated income tax expense for the periods presented.
5. Non-GAAPNet Income. Defined as GAAP net income (loss) excluding, net of their related tax effects (which excludes the impact of significant one time changes resulting from tax legislation such as the 2017 Tax Act): (1) stock-based compensation expense and other stock-settled obligations; (2) amortization of intangible assets; (3) goodwill, intangible asset, and other long-lived asset impairments; (4) legal reserves and settlements; and (5) certain gains, losses, and other non-recurring income or expenses that we do not believe are indicative of our ongoing operating results. We believe non-GAAP net income is an operating performance measure which provides investors and analysts with useful supplemental information about the financial performance of our business, as it incorporates our unaudited condensed consolidated statement of operations, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of certain expenses, infrequently occurring items and items not directly tied to the core operations of our businesses, and also enables comparison of financial results between periods where certain items may vary independent of business performance.
6. Non-GAAPDiluted EPS. Defined as non-GAAP net income divided by GAAP diluted shares. We believe non-GAAP EPS is useful to investors because it represents, on a per share basis, our unaudited condensed consolidated statement of operations, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, interest income, income taxes and foreign exchange gains or losses, but excluding the effects of certain expenses not directly tied to the core operations of our businesses.
7. Free Cash Flow. A non-GAAP measure which is defined as net cash provided by operating activities less capital expenditures, which are purchases of property and equipment, including capitalization of internal-use software development costs. We believe this financial measure can provide useful supplemental information to help investors better understand underlying trends in our business, as it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the unaudited condensed consolidated statements of cash flows.

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