Tripadvisor Investor Conference Presentation Deck
Non-GAAP Reconciliations
(in $millions)
Reconciliation from GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP):
GAAP Net Income (Loss)
Add: Provision (benefit) for income taxes
(1)
Add: Other expense (income), net
Add: Restructuring and other related reorganization costs
Add: Impairment of goodwill
Add: Legal reserves and settlements
Add: Stock-based compensation expense
Add: Depreciation and amortization (2)
Adjusted EBITDA (Non-GAAP) (3)
2017
FY*
($19)
129
14
96
111
$331
Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow:
Cash flow provided by (used in) operations
$238
Subtract: Capital expenditures
64
Free Cash Flow (Non-GAAP) (4)
$174
* Full-year totals reflect data as reported and may differ from the summation of the quarterly data due to rounding.
2018
FY*
$113
60
10
5
118
116
$422
$405
61
$344
Q4
2019
$15
5
3
1
35
33
$92
FY*
$126
68
(7)
1
124
126
$438
$424
83
$341
Q1
($16)
(11)
9
26
32
$40
Q2
2020
($153)
(26)
15
33
25
32
($74)
Q3
($48)
(10)
12
3
28
30
$15
Q4
($73)
(31)
12
(1)
29
31
($33)
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") of $73 million during the year ended December 31, 2017, primarily related to a transition tax expense. Refer to the next slide for further information.
(2) Depreciation and amortization. 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 (benefit) for income taxes; (2) other income (expense), net; (3) depreciation and amortization; (4) stock-based compensation and other stock-settled obligations; (5) goodwill, long-lived assets and intangible asset impairments; (6) legal reserves and
settlements; (7) restructuring and other related reorganization costs; and (8) non-recurring expenses and income. These items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount is not driven by core operating results and renders comparisons with prior periods less meaningful.
(4) 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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