Segment and Geographic Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 18: SEGMENT AND GEOGRAPHIC INFORMATION

We have three reportable segments: (1) Brand Tripadvisor; (2) Viator; and (3) TheFork. Our Brand Tripadvisor segment includes the following revenue sources: (1) Tripadvisor-branded hotels – consisting of hotel meta revenue, primarily click-based advertising revenue, and also hotel B2B revenue, which includes primarily subscription-based advertising and hotel sponsored placements revenue; (2) Media and advertising revenue – consisting primarily of display-based advertising revenue (also referred to as “media advertising”); (3) Tripadvisor experiences and dining revenue – consisting of intercompany (intersegment) revenue related to affiliate marketing commissions earned primarily from experience bookings, and to a lesser extent, restaurant reservation bookings on

Tripadvisor-branded websites and mobile apps, fulfilled by Viator and TheFork, respectively, which are eliminated on a consolidated basis, in addition to external revenue generated from Tripadvisor restaurant offerings; and (4) Other revenue – consisting of cruises, vacation rentals, flights, and rental cars revenue. The nature of the services provided and related revenue recognition policies are summarized by reportable segment in “Note 2: Significant Accounting Policies.”

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 years ended December 31, 2024, 2023 and 2022 and includes 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.

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 expense are eliminated in consolidation. The elimination of such intersegment transactions is included within the “Corporate & Eliminations” column in the tables below.

	Year ended December 31, 2024
	Brand Tripadvisor (1)			Viator (2)			TheFork (3)			Corporate & Eliminations			Total
	(in millions)
External revenue	$	814		$	840		$	181		$	—		$	1,835
Intersegment revenue		135			—			—			(135	)		—
Revenue	$	949		$	840		$	181		$	(135	)	$	1,835
Less: (4)
Cost of sales (5)		33			80			15			—			128
Marketing		251			562			51			(135	)		729
Personnel (exclusive of stock-based compensation as shown separately below)		266			126			83			—			475
Technology		54			25			12			—			91
General and administrative (6)		44			14			15			—			73
Adjusted EBITDA		301			33			5			—			339
Depreciation and amortization											(85	)		(85	)
Stock-based compensation											(120	)		(120	)
Restructuring and other related reorganization costs (7)		(18	)		(2	)		(1	)					(21	)
Legal reserves, settlements and other (8)											(18	)		(18	)
Transaction related expenses (9)											(3	)		(3	)
Operating income (loss)														92
Other income (expense), net														(5	)
Income (loss) before income taxes														87
(Provision) benefit for income taxes														(82	)
Net income (loss)														5

	Year ended December 31, 2023
	Brand Tripadvisor (1)			Viator (2)			TheFork (3)			Corporate & Eliminations			Total
	(in millions)
External revenue	$	897		$	737		$	154		$	—		$	1,788
Intersegment revenue		134			—			—			(134	)		—
Revenue	$	1,031		$	737		$	154		$	(134	)	$	1,788
Less: (4)
Cost of sales		31			79			9			—			119
Marketing		279			519			41			(134	)		705
Personnel (exclusive of stock-based compensation as shown separately below)		273			110			91			—			474
Technology		50			18			12			—			80
General and administrative (10)		50			11			15			—			76
Adjusted EBITDA		348			—			(14	)		—			334
Depreciation and amortization											(87	)		(87	)
Stock-based compensation											(96	)		(96	)
Restructuring and other related reorganization costs (7)		(10	)		(3	)		(9	)		—			(22	)
Transaction related expenses (9)											(3	)		(3	)
Operating income (loss)														126
Other income (expense), net														(1	)
Income (loss) before income taxes														125
(Provision) benefit for income taxes														(115	)
Net income (loss)														10

	Year ended December 31, 2022
	Brand Tripadvisor (1)		Viator (2)			TheFork (3)			Corporate & Eliminations			Total
	(in millions)
External revenue	$	873	$	493		$	126		$	—		$	1,492
Intersegment revenue		93		—			—			(93	)		—
Revenue	$	966	$	493		$	126		$	(93	)	$	1,492
Less: (4)
Cost of sales		20		51			7			—			78
Marketing		260		351			58			(93	)		576
Personnel (exclusive of stock-based compensation as shown separately below)		249		81			85			—			415
Technology		42		9			12			—			63
General and administrative (11)		50		12			3			—			65
Adjusted EBITDA		345		(11	)		(39	)		—			295
Depreciation and amortization										(97	)		(97	)
Stock-based compensation										(88	)		(88	)
Legal reserves, settlements and other										(1	)		(1	)
Other non-recurring expenses (income) (12)										(8	)		(8	)
Operating income (loss)													101
Other income (expense), net													(34	)
Income (loss) before income taxes													67
(Provision) benefit for income taxes													(47	)
Net income (loss)													20

(1)Certain personnel costs of $7 million, $6 million and $5 million for the years ended December 31, 2024, 2023 and 2022, respectively, were allocated to the Viator and TheFork segments.

(2)Includes allocated certain personnel costs from the Brand Tripadvisor segment of $3 million, $3 million and $2 million for the years ended December 31, 2024, 2023 and 2022, respectively.

(3)Includes allocated certain personnel costs from the Brand Tripadvisor segment of $4 million, $3 million and $3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

(4)The significant segment expense categories and amounts align with the segment-level information that is regularly provided to our CODM.

(5)Exclusive of $2 million and $1 million in the Brand Tripadvisor and Viator segments, respectively, which are included separately below in legal reserves, settlements and other.

(6)Exclusive of $18 million in the Brand Tripadvisor segment which is included separately below in legal reserves, settlements and other and transaction related expenses.

(7)Refer to “Note 7: Accrued Expenses and Other Current Liabilities” for information regarding restructuring and other related reorganization costs.

(8)This amount primarily includes an estimated accrual for the potential settlement of a regulatory related matter of $10 million expensed during 2024 and is reflected in general and administrative expenses on our consolidated statement of operations. Refer to "Note 11: Commitments and Contingencies" for further information. In addition, this amount includes a one-time charge of $3 million during the year ended December 31, 2024, resulting from enacted tax legislation in Canada during June 2024 related to digital service taxes, which requires retrospective application back to January 1, 2022. This amount represents the one-time retrospective liability for the periods prior to April 1, 2024, while all prospective periods are and will be included within adjusted EBITDA, respectively. This cost is reflected in cost of sales on our consolidated statement of operations.

(9)The Company expensed certain transaction related costs of $3 million during both the years ended December 31, 2024 and 2023, to general and administrative expenses on our consolidated statements of operations.

(10)Exclusive of $3 million in the Viator segment which is included separately below in transaction related expenses.

(11)Exclusive of $8 million in the Brand Tripadvisor segment which is included separately below in other non-recurring expenses (income).

(12)The Company incurred a loss of approximately $8 million during the fourth quarter of 2022, as the result of external fraud. This loss was recorded to general and administrative expenses on the consolidated statement of operations for December 31, 2022. The Company considers such costs to be non-recurring in nature.

Product and Geographic Information

We disaggregate revenue into major products and revenue sources, as follows, for the periods presented:

	Year ended December 31,
	2024			2023			2022
Major products/revenue sources (1):	(in millions)
Brand Tripadvisor
Tripadvisor-branded hotels	$	585		$	659		$	650
Media and advertising		150			145			130
Tripadvisor experiences and dining (2)		169			176			134
Other		45			51			52
Total Brand Tripadvisor		949			1,031			966
Viator		840			737			493
TheFork		181			154			126
Intersegment eliminations (2)		(135	)		(134	)		(93	)
Total Revenue	$	1,835		$	1,788		$	1,492

(1)Our revenue is recognized primarily at a point in time for all reported segments.

(2)Tripadvisor experiences and dining revenue within the Brand Tripadvisor segment is shown gross of intersegment (intercompany) revenue, which is eliminated on a consolidated basis.

The Company measures its geographic revenue based on the physical location of the Tripadvisor subsidiary which generates the revenue, which is consistent with our measurement of long-lived physical assets, or property and equipment, net. As such, this geographic classification does not necessarily align with where the consumer resides, where the consumer is physically located while using the Company's services, or the location of the travel service provider, experience operator or restaurant.

The Company’s revenue based on geographic location consists of the following for the periods presented:

	Year ended December 31,
	2024		2023		2022
	(in millions)
Revenue
United States	$	1,230	$	1,198	$	905
United Kingdom		334		349		402
All other countries		271		241		185
Total revenue	$	1,835	$	1,788	$	1,492

The Company’s property and equipment, net for the United States and all other countries based on the geographic location of the assets consists of the following as of the dates presented:

	December 31,
	2024		2023
	(in millions)
Property and equipment, net
United States	$	144	$	147
All other countries		56		44
Total	$	200	$	191

Customer Concentrations

Refer to “Note 2: Significant Accounting Policies” under the section entitled “Certain Risks and Concentrations” for information regarding our major customer concentrations.