v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information NOTE 12: SEGMENT INFORMATION

We have three reportable segments: (1) Brand Tripadvisor; (2) Viator; and (3) TheFork. The nature of the services provided, revenue sources by product, and related revenue recognition policies are summarized by reportable segment in “Note 3: Revenue Recognition.”

Our operating segments are determined based on how our chief executive officer, who also serves as our chief operating decision maker (“CODM”) manages our business, regularly accesses information, and evaluates performance for operating decision-making purposes, including allocation of operating and capital resources. Adjusted EBITDA is our reported measure of segment profit and a key measure used by our CODM and Board of Directors to understand and evaluate the operating performance of our business as a whole and our individual operating segments, and on which internal budgets and forecasts are based and approved. We define adjusted EBITDA as net income (loss) plus: (1) (provision) benefit for income taxes; (2) other income (expense), net; (3) depreciation and amortization; (4) stock-based compensation; (5) goodwill, long-lived asset, and intangible assets impairments; (6) legal reserves, settlements and other (including indirect tax reserves related to audit settlements and the impact of one-time changes resulting from enacted indirect tax legislation); (7) restructuring and other related reorganization costs; (8) transaction related expenses; and (9) non-recurring expenses and income unusual in nature or infrequently occurring.

Direct costs are included in the applicable operating segments, including certain personnel costs, which have been allocated to each segment. We base these allocations on time-spent analyses, headcount, and other allocation methods we believe are reasonable. We do not allocate certain shared expenses to our reportable segments, such as certain information system costs, technical infrastructure costs, and other costs supporting the Tripadvisor platform and operations, that we do not believe are a material driver of individual segment performance, which is consistent with the financial information used by our CODM. We include these expenses in our Brand Tripadvisor segment. Our allocation methodology is periodically evaluated and may change.

The following tables present our reportable segment information for the three months ended March 31, 2025 and 2024 and include a reconciliation of adjusted EBITDA to Net income (loss). We record depreciation and amortization, stock-based compensation, goodwill, long-lived asset and intangible asset impairments, legal reserves, settlements and other, transaction related expenses, and other non-recurring expenses and income, net, which are excluded from segment operating performance, in “Corporate & Eliminations.” In addition, we do not report total assets, capital expenditures and related depreciation expense by segment as our CODM does not use this information to evaluate operating segment performance. Accordingly, we do not regularly provide such information by segment to our CODM. We have recast the prior period presented for segment revenue and segment adjusted EBITDA to ensure comparability with the current period presented. These changes did not result in a change to our previously reported segments revenue or adjusted EBITDA.

Our segment disclosure includes intersegment revenues, which consist of affiliate marketing fees for services provided by our Brand Tripadvisor segment to both our Viator and TheFork segments. These intersegment transactions are recorded by each segment at amounts that we believe approximate fair value as if the transactions were between third parties and, therefore, impact segment performance. However, the revenue and corresponding expenses are eliminated in consolidation. The elimination of such intersegment transactions is included within the “Corporate & Eliminations” column in the tables below.

 

 

Three months ended March 31, 2025

 

 

 

 

 

 

Brand Tripadvisor (1)

 

 

Viator (2)

 

 

TheFork (3)

 

 

Corporate &
Eliminations

 

 

Total

 

 

 

(in millions)

 

External revenue

 

$

196

 

 

$

156

 

 

$

46

 

 

$

—

 

 

$

398

 

Intersegment revenue

 

 

23

 

 

 

—

 

 

 

—

 

 

 

(23

)

 

 

—

 

  Total Revenue

 

$

219

 

 

$

156

 

 

$

46

 

 

$

(23

)

 

$

398

 

Less: (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

5

 

 

 

17

 

 

 

5

 

 

 

—

 

 

 

27

 

Marketing

 

 

62

 

 

 

114

 

 

 

19

 

 

 

(23

)

 

 

172

 

Personnel (exclusive of stock-based compensation as shown separately below)

 

 

65

 

 

 

32

 

 

 

19

 

 

 

—

 

 

 

116

 

Technology

 

 

12

 

 

 

7

 

 

 

3

 

 

 

—

 

 

 

22

 

General and administrative

 

 

10

 

 

 

4

 

 

 

3

 

 

 

—

 

 

 

17

 

Adjusted EBITDA

 

 

65

 

 

 

(18

)

 

 

(3

)

 

 

—

 

 

 

44

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

(21

)

 

 

(21

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

(28

)

 

 

(28

)

Restructuring and other related reorganization costs (5)

 

 

(9

)

 

 

—

 

 

 

(1

)

 

 

 

 

 

(10

)

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20

)

(Provision) benefit for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11

)

 

 

 

Three months ended March 31, 2024

 

 

 

 

 

 

Brand Tripadvisor (1)

 

 

Viator (2)

 

 

TheFork (3)

 

 

Corporate &
Eliminations

 

 

Total

 

 

 

(in millions)

 

External revenue

 

$

213

 

 

$

141

 

 

$

41

 

 

$

—

 

 

$

395

 

Intersegment revenue

 

 

27

 

 

 

—

 

 

 

—

 

 

 

(27

)

 

 

—

 

  Total Revenue

 

$

240

 

 

$

141

 

 

$

41

 

 

$

(27

)

 

$

395

 

Less: (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

6

 

 

 

16

 

 

 

3

 

 

 

—

 

 

 

25

 

Marketing

 

 

61

 

 

 

113

 

 

 

15

 

 

 

(27

)

 

 

162

 

Personnel (exclusive of stock-based compensation as shown separately below)

 

 

70

 

 

 

30

 

 

 

21

 

 

 

—

 

 

 

121

 

Technology

 

 

13

 

 

 

6

 

 

 

3

 

 

 

—

 

 

 

22

 

General and administrative (6)

 

 

12

 

 

 

3

 

 

 

3

 

 

 

—

 

 

 

18

 

Adjusted EBITDA

 

 

78

 

 

 

(27

)

 

 

(4

)

 

 

—

 

 

 

47

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

(22

)

 

 

(22

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

(28

)

 

 

(28

)

Restructuring and other related reorganization costs

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

Legal reserves, settlements and other (7)

 

 

 

 

 

 

 

 

 

 

 

(10

)

 

 

(10

)

Transaction related expenses

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16

)

(Provision) benefit for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(43

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(59

)
(1)
Corporate general and administrative personnel costs of $2 million for both the three months ended March 31, 2025 and 2024 were allocated to the Viator and TheFork segments.
(2)
Includes allocated corporate general and administrative personnel costs from the Brand Tripadvisor segment of $1 million in each of the three months ended March 31, 2025 and 2024.
(3)
Includes allocated corporate general and administrative personnel costs from the Brand Tripadvisor segment of $1 million in each of the three months ended March 31, 2025 and 2024.
(4)
The significant segment expense categories and amounts align with the segment-level information that is regularly provided to our CODM.
(5)
Refer to “Note 5: Accrued Expenses and Other Current Liabilities” for information regarding restructuring and other related reorganization costs.
(6)
Exclusive of $11 million in the Brand Tripadvisor segment which is included separately below in legal reserves, settlements and other and transaction related expenses.
(7)
Represents an estimated accrual for the potential settlement of a regulatory related matter of $10 million expensed during the first quarter of 2024 and is reflected in general and administrative expenses on our unaudited condensed consolidated statement of operations. Refer to "Note 8: Commitments and Contingencies" for further information.

Customer Concentrations

Refer to “Note 4: Financial Instruments and Fair Value Measurements” under the section entitled “Risks and Concentrations” for information regarding our major customer concentrations.

Product Information

Revenue sources within our Brand Tripadvisor segment, consisting of Tripadvisor-branded hotels revenue, Media and advertising revenue, Tripadvisor experiences and dining revenue, and other revenue, along with our Viator and TheFork segments revenue sources, comprise our products. Refer to “Note 3: Revenue Recognition” for our revenue by product.