Segment and Geographic Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 18: SEGMENT AND GEOGRAPHIC INFORMATION

We have three reportable segments: (1) Brand Tripadvisor (formerly Tripadvisor Core); (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, alternative accommodation 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 resources. Adjusted EBITDA is our segment profit measure and a key measure used by our CODM and Board of Directors to understand and evaluate the operating performance of our business 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 and other stock-settled obligations; (5) goodwill, long-lived asset, and intangible assets impairments; (6) legal reserves and settlements; (7) restructuring and other related reorganization costs; and (8) non-recurring expenses and income.

Direct costs are included in the applicable operating segments, including certain corporate general and administrative 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, 2023, 2022 and 2021 and includes a reconciliation of Adjusted EBITDA to Net income (loss). We record depreciation and amortization, stock-based compensation and other stock-settled obligations, goodwill, long-lived asset and intangible asset impairments, legal reserves and settlements, 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, 2023
	Brand Tripadvisor (1)			Viator (2)			TheFork (3)			Corporate & Eliminations			Total
	(in millions)
External revenue	$	897		$	737		$	154		$	—		$	1,788
Intersegment revenue		134			—			—			(134	)		—
Total Revenue	$	1,031		$	737		$	154		$	(134	)	$	1,788
Adjusted EBITDA		348			—			(14	)		—			334
Depreciation and amortization											(87	)		(87	)
Stock-based compensation											(96	)		(96	)
Restructuring and other related reorganization costs (4)		(10	)		(3	)		(9	)		—			(22	)
Other non-recurring expenses (income) (5)											(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	)		—
Total Revenue	$	966	$	493		$	126		$	(93	)	$	1,492
Adjusted EBITDA		345		(11	)		(39	)		—			295
Depreciation and amortization										(97	)		(97	)
Stock-based compensation										(88	)		(88	)
Legal reserves and settlements										(1	)		(1	)
Other non-recurring expenses (income) (6)										(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

	Year ended December 31, 2021
	Brand Tripadvisor (1)		Viator (2)			TheFork (3)			Corporate & Eliminations			Total
	(in millions)
External revenue	$	633	$	184		$	85		$	—		$	902
Intersegment revenue		32		—			—			(32	)		—
Total Revenue	$	665	$	184		$	85		$	(32	)	$	902
Adjusted EBITDA		177		(31	)		(46	)		—			100
Depreciation and amortization										(111	)		(111	)
Stock-based compensation										(120	)		(120	)
Operating income (loss)													(131	)
Other income (expense), net													(54	)
Income (loss) before income taxes													(185	)
(Provision) benefit for income taxes													37
Net income (loss)													(148	)

(1)Corporate general and administrative personnel costs of $6 million, $5 million and $6 million for the years ended December 31, 2023, 2022 and 2021, respectively, were allocated to the Viator and TheFork segments.

(2)Includes allocated corporate general and administrative personnel costs from our Brand Tripadvisor segment of $3 million, $2 million and $3 million for the years ended December 31, 2023, 2022 and 2021, respectively.

(3)Includes allocated corporate general and administrative personnel costs from our Brand Tripadvisor segment of $3 million, $3 million and $3 million for the years ended December 31, 2023, 2022 and 2021, respectively.

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

(5)The Company expensed $3 million of previously capitalized transaction costs during 2023, to general and administrative expenses on our consolidated statement of operations. The Company considers such costs to be non-recurring in nature.

(6)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. To the extent the Company recovers any losses in future periods related to this incident, the Company plans to reduce Adjusted EBITDA by the recovery amount in that same period.

Product and Geographic Information

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

	Year ended December 31,
	2023			2022			2021
Major products/revenue sources (1):	(in millions)
Brand Tripadvisor
Tripadvisor-branded hotels	$	659		$	650		$	451
Media and advertising		145			130			98
Tripadvisor experiences and dining (2)		176			134			70
Other		51			52			46
Total Brand Tripadvisor		1,031			966			665
Viator		737			493			184
TheFork		154			126			85
Intersegment eliminations (2)		(134	)		(93	)		(32	)
Total Revenue	$	1,788		$	1,492		$	902

(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,
	2023		2022		2021
	(in millions)
Revenue
United States	$	1,198	$	905	$	526
United Kingdom		349		402		259
All other countries		241		185		117
Total revenue	$	1,788	$	1,492	$	902

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,
	2023		2022
	(in millions)
Property and equipment, net
United States	$	147	$	156
All other countries		44		38
Total	$	191	$	194

Customer Concentrations

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