Tripadvisor Q1 revenue up 42% compared to 2022

Tripadvisor is reporting revenue in the first quarter of
this year was $371 million, compared to $262 million in the same quarter of
2022 – a 42% increase.

The bulk of that revenue – $244 million – continues to come
from Tripadvisor Core, which it defines as Tripadvisor-branded hotels, display
and platform, Tripadvisor experiences and dining and other offerings such as
cruises, rental, flights and cars. That’s a 28% increase year-on-year.

The Viator segment, while smaller at $115 million in revenue
in Q1, continues to show much more growth, up 105% compared to the first quarter
of 2022. For
the full 12-month period of 2022, Viator accounted for 33% of Tripadvisor’s
total revenue, up from just 20% in 2021, and the figures from Q1 of this year account
for a similar share.

Adjusted EBITDA in Q1 was up 22% compared to the same period
of 2022, to $33 million in Q1 this year. Adjusted EBITDA is 9% of revenue. Tripadvisor reported net loss in the quarter of $73 million,
up 115% year-on-year.

“We are pleased with our strong start to 2023, delivering a
solid quarter across all segments,” said Matt Goldberg, CEO of Tripadvisor.

“Travel demand remained healthy and our teams executed well,
continuing to deliver initiatives aimed at driving value for our customers and
partners. We are excited about our 2023 plan to drive further engagement by
leveraging our unique data, content and planning tools, capture more of the
large and growing experiences opportunity and fortify our restaurants
marketplace. Our team remains focused on operational execution to drive
long-term, sustainable growth and profit.” 

The company says growth in Tripadvisor Core was driven by
strong performance in revenue from branded hotels – up 24% year-on-year – and
experiences, which was up 65%. For Viator, gross booking value was more than
$800 million. 

Tripadvisor says selling and marketing costs as a percent of
revenue rose five percentage points year-over-year to 59%. Those costs – $219 million in Q1 – were up
55% compared to the same period in 2022.

In a statement accompanying the results, the company said the
increase was due to a jump in paid online traffic acquisition costs and brand
marketing spend.

“The substantial majority of these costs was incurred in our
Viator and Tripadvisor Core segments, in response to increased consumer travel
demand and investment in the marketing of our experiences offerings within
these segments,” the statement said.