Tripadvisor Results Presentation Deck
Non-GAAP Reconciliations
a Tripadvisor
(in $millions)
Reconciliation from GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP):
GAAP Net Income (Loss)
Add: Provision (benefit) for income taxes
Add: Other expense (income), net
Add: Restructuring and other related reorganization costs
Add: Impairment of goodwill
Add: Stock-based compensation expense
Add: Depreciation and amortization (¹)
(2)
Adjusted EBITDA (Non-GAAP)
2017
FY*
Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow:
Cash flow provided by (used in) operations
$238
64
Subtract: Capital expenditures
Free Cash Flow (Non-GAAP)
(3)
$174
2018
FY*
* Full-year totals reflect data as reported and may differ from the summation of the quarterly data due to rounding.
$405
61
$344
2019
FY*
$126
68
(7)
1
124
126
$438
$424
83
$341
2020
FY*
($289)
(80)
40
41
3
109
125
($51)
($194)
55
($249)
Q1
($80)
(16)
12
Q2
($40)
(6)
11
2021
Q3
$1
2
13
29
32
29
29
27
28
($26) $25 $72
Q4
FY*
31
26
$29
($29) ($148) ($34)
(18) (37)
1
19
54
13
120
111
$100
2022
Q1
$108
54
$54
22
25
$27
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) Depreciation and amortization. Includes internal use software and website development amortization.
(2) 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, intangible asset, and long-lived 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.
(3) 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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