TripAdvisor : Reports First Quarter 2021 Financial Results

Exhibit 99.1

Tripadvisor Reports First Quarter 2021 Financial Results

NEEDHAM, MA, May 6, 2021 - Tripadvisor, Inc. (NASDAQ: TRIP) today announced financial results for the first quarter ended March 31, 2021.

"Q1 demonstrated consumers want to get back out there and travel," said Chief Executive Officer Steve Kaufer. "Traffic and revenue trends improved as vaccination rates climbed, particularly in the U.S. market. While the recovery remains uneven globally, there is light ahead. We think leisure travel is poised for a potential inflection later this year as the recovery broadens."

Kaufer continued, "We believe we are advantageously positioned for the rebound and beyond. We remain focused on serving customers, leveraging our competitive advantages, and building our business to deliver long-term, diverse growth."

Chief Financial Officer Ernst Teunissen added, "In Q1, we continued to execute well on factors within our control. We maintained prudent cost discipline, we further fortified our balance sheet, and we leaned into strategic areas with growth potential. We believe we have positioned the business for enhanced operating leverage and long-term shareholder value creation."

First Quarter 2021 Financial Results

		Three months ended March 31,
(In millions, except percentages and per share amounts)			2021				2020			% Change
Total Revenue		$	123			$	278			(56	)%
Hotels, Media & Platform		$	88			$	169			(48	)%
Experiences & Dining		$	28			$	83			(66	)%
Other		$	7			$	26			(73	)%
GAAP Net Loss	$	(80 )	$	(16 )	400%
Total Adjusted EBITDA (1)	$	(26 )	$	40			n.m.
Hotels, Media & Platform		$	(3	)		$	53			n.m.
Experiences & Dining	$	(24 )	$	(19 )	26%
Other		$	1			$	6			(83	)%
Non-GAAP Net Income (Loss) (1)		$	(53	)		$	9			n.m.
Diluted Earnings (Loss) per Share:
GAAP	$	(0.59)	$	(0.12)	392%
Non-GAAP(1)		$	(0.39	)		$	0.07			n.m.
Cash flow used in operating activities		$	(19	)		$	(70	)		(73	)%
Free cash flow (1)	$	(29 )	$	(90 )	(68 )%

n.m. = not meaningful

1. "Total Adjusted EBITDA", "Non-GAAP Net Income (Loss)", "Non-GAAP Diluted Earnings (Loss) per Share", and "Free cash flow" are non- GAAP measures as defined by the U.S. 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 measures.

Consumer demand - January, February, and March 2021 monthly unique users on Tripadvisor-branded websites improved sequentially and were approximately 53%, 56%, and 58%, respectively, of 2019's comparable period (pre-COVID-19 timeframe), driven by vaccine progress and leisure travel's improving recovery, particularly in the U.S. We note that U.S. monthly unique users in March 2021 approached nearly 80% of 2019 levels while traffic outside the U.S. was approximately half of 2019 levels for the same period.

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Revenue - Q1 2021 total revenue of $123 million declined 56% year-over-year and was approximately 33% of 2019's comparable period (pre-COVID-19 timeframe), which is roughly in line with Q4 2020 performance. Monthly revenue performance improved sequentially throughout the quarter, driven primarily by improved leisure travel demand in the U.S. Improvements were partially offset by more muted recovery trends outside of the U.S., most notably Europe.

Cost performance - Total operating expenses were $207 million, down 32% year-over-year, decreasing in all categories as follows:

• Cost of revenue was $12 million, down 37% year-over-year, due to decreased direct costs from credit card payment and other revenue-related transaction costs in our Experiences & Dining segment in correlation with the reduction in revenue related to the COVID-19 pandemic, and to a lesser extent a decrease in personnel and overhead costs as a result of a reduction in headcount related to our cost-reduction measures across our business in 2020 in response to the COVID-19 pandemic.
• Selling and marketing costs were $73 million, down 42% year-over-year, primarily due to a decrease in SEM and other online traffic acquisition costs across all our segments and businesses in response to the decline in consumer demand related to the COVID-19 pandemic and a reduction in headcount related to our cost-reduction measures across our business in 2020 in response to the COVID-19 pandemic.
• Technology and content costs were $55 million, down 20% year-over-year, primarily due to a decrease in personnel and overhead costs as a result of a reduction in headcount driven by cost-reduction measures across our business in 2020 in response to the COVID-19 pandemic.
• General and administrative costs were $38 million, down 25% year-over-year, primarily due to a reduction in headcount related to our cost-reduction measures across our business in 2020 in response to the COVID-19 pandemic, as well as, a decrease in bad debt expense, certain non-income related taxes, and other third-party professional service costs.

Profitability - Our consolidated net loss of $80 million was slightly higher in Q1 2021 as compared to Q4 2020, driven by lower income tax benefits in Q1 2021. Our Q1 2021 adjusted EBITDA was negative $26 million, slightly better than Q4 2020 driven by a sequential increase in revenue. The Company continues to expect the majority of its fixed cost savings will persist in 2021 and, as such, the business is positioned for operating leverage as leisure travel demand and revenue improve.

Cash & Liquidity - As of March 31, 2021, Tripadvisor had $674 million of cash and cash equivalents, an increase of $256 million from December 31, 2020, with nearly $500 million in available borrowing capacity under our revolving credit facility.

In March 2021, we completed the sale of $345 million aggregate principal amount of 0.250% per annum convertible senior notes due 2026 (the "2026 Senior Notes") in a private offering. The Company used a portion of the proceeds from the 2026 Senior Notes to enter into privately negotiated capped call transactions with certain of the initial purchasers of the 2026 Senior Notes and/or their respective affiliates and/or other financial institutions at a cost of approximately $35 million. The Company intends to use the remainder of the net proceeds from this offering for general corporate purposes, which may include partial repayment of our pre- existing debt.

CARES Act Relief

Based on our evaluation of the CARES Act, we qualify for certain employee retention payroll tax credits, the deferral of payroll and other tax payments in the future and certain income tax related provisions, some of which are effective retroactively. Most significantly, the CARES Act allowed us to carry back our U.S. federal net operating loss incurred in 2020, for which we expect to be refunded approximately $48 million during 2021, and benefit from the reduction of tax liabilities in future years.

First Quarter 2021 Revenue by Source

		Three months ended March 31,
(In millions, except percentages )			2021				2020			% Change
Hotels, Media & Platform
TripAdvisor-branded hotels	$	74	$	137	(46 )%
TripAdvisor-branded display and platform			14				32			(56	)%
Experiences & Dining			28				83	(66 )%
Other			7				26			(73	)%
Total Revenue	$	123	$	278	(56 )%

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Conference Call

Tripadvisor posted prepared remarks and supplemental financial information on the Investor Relations section of Tripadvisor's website at http://ir.tripadvisor.com. Tripadvisor will host a conference call tomorrow, May 7, 2021, at 8:30 a.m., Eastern Time, to discuss the Company's first quarter 2021 operating results, as well as forward-looking information about Tripadvisor's business. Domestic callers may access the earnings conference call by dialing [phone] (International callers, dial [phone]). Investors and other interested parties may also go to the Investor Relations section of Tripadvisor's website at http://ir.tripadvisor.comfor a live webcast of the conference call. Please access the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. A replay of the conference call will be available on Tripadvisor's website noted above or by phone (dial [phone] and enter the passcode 4196145) until May 14, 2021 and the webcast will be accessible at http://ir.tripadvisor.com/events-and-presentationsfor at least twelve months following the conference call.

About Tripadvisor

Tripadvisor, the world's largest travel guidance platform*, helps hundreds of millions of people each month** become better travelers, from planning to booking to taking a trip. Travelers across the globe use the Tripadvisor site and app to discover where to stay, what to do and where to eat based on guidance from those who have been there before. With more than 887 million reviews and opinions of nearly 8 million businesses, travelers turn to Tripadvisor to find deals on accommodations, book experiences, reserve tables at delicious restaurants and discover great places nearby. As a travel guidance company available in 49 markets and 28 languages, Tripadvisor makes planning easy no matter the trip type.

The subsidiaries 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.bokun.io,www.cruisecritic.com,www.flipkey.com,www.thefork.com (includingwww.lafourchette.com,www.eltenedor.com,www.bookatable.co.uk, andwww.delinski.com),www.helloreco.com,www.holidaylettings.co.uk,www.housetrip.com,www.jetsetter.com,www.niumba.com,www.seatguru.com,www.singleplatform.com,www.vacationhomerentals.com, andwww.viator.com.

• Source: SimilarWeb, unique users de-duplicated monthly, March 2021
• Source: Tripadvisor internal log files

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Tripadvisor, Inc.

SELECTED FINANCIAL INFORMATION

Condensed Consolidated Statements of Operations

(in millions, except per share amounts)

(Unaudited)

			Three Months Ended
			March 31, 2021			March 31, 2020
Revenue		$	123				$	278
Costs and expenses:
Cost of revenue		12					19
Selling and marketing (1)			73					125
Technology and content (1)		55					69
General and administrative (1)			38					51
Depreciation and amortization		29					32
Restructuring and other related reorganization costs			―					9
Total costs and expenses		207					305
Operating income (loss)			(84		)			(27	)
Other income (expense):
Interest expense			(11		)			(2	)
Interest income		―			1
Other income (expense), net			(1		)			1
Total other income (expense), net		(12)			―
Income (loss) before income taxes			(96		)			(27	)
(Provision) benefit for income taxes			16					11
Net income (loss)		$	(80		)		$	(16	)
Earnings (loss) per share attributable to common stockholders:
Basic	$	(0.59)	$	(0.12)
Diluted		$	(0.59		)		$	(0.12	)
Weighted average common shares outstanding:
Basic		136					136
Diluted			136					136
(1) Includes stock-based compensation expense as follows:
Selling and marketing		$	4				$	4
Technology and content		$	12				$	11
General and administrative		$	13				$	11

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Tripadvisor, Inc.

Condensed Consolidated Balance Sheets

(in millions, except number of shares and per share amounts)

(Unaudited)

			March 31,				December 31,
			2021						2020
ASSETS
Current assets:
Cash and cash equivalents		$	674					$	418
Accounts receivable and contract assets, net of allowance for credit losses of $34 and $33, respectively			97						83
Income taxes receivable			50						50
Prepaid expenses and other current assets			24						22
Total current assets			845						573
Property and equipment, net of accumulated depreciation of $398 and $386, respectively			229						240
Operating lease right-of-use assets			50						54
Intangible assets, net of accumulated amortization of $208 and $206, respectively			80						86
Goodwill			852						862
Non-marketable investments			39						40
Deferred income taxes, net			33						10
Other long-term assets, net of allowance for credit losses of $5 and $5, respectively			104						104
TOTAL ASSETS		$	2,232					$	1,969
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	13					$	18
Deferred merchant payables			71						36
Deferred revenue			38						28
Accrued expenses and other current liabilities			155						160
Total current liabilities			277						242
Long-term debt			831						491
Finance lease obligation, net of current portion			70						71
Operating lease liabilities, net of current portion			41						46
Deferred income taxes, net			2						10
Other long-term liabilities			226						223
Total Liabilities			1,447						1,083
Stockholders' equity:
Preferred stock, $0.001 par value			―				―
Authorized shares: 100,000,000
Shares issued and outstanding: 0 and 0
Common stock, $0.001 par value			―						―
Authorized shares: 1,600,000,000
Shares issued: 142,914,851 and 140,775,221, respectively
Shares outstanding: 124,070,237 and 121,930,607, respectively
Class B common stock, $0.001 par value			―						―
Authorized shares: 400,000,000
Shares issued and outstanding: 12,799,999 and 12,799,999, respectively
Additional paid-in capital			1,244						1,253
Retained earnings			309						389
Accumulated other comprehensive income (loss)			(46 )				(34)
Treasury stock-common stock, at cost, 18,844,614 and 18,844,614 shares, respectively			(722		)				(722	)
Total Stockholders' Equity			785						886
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,232					$	1,969

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