TripAdvisor 2012 Annual Report Download - page 51

Results of Operations
Selected Financial Data
(in thousands, except per share data)
Year ended December 31, % Change
2012 2011 2010 2012 vs. 2011 2011 vs. 2010
Revenue ......................................... $559,215 $426,045 $313,525 31% 36%
Related-party revenue from Expedia .................. 203,751 211,018 171,110 (3%) 23%
Total revenue ..................................... 762,966 637,063 484,635 20% 31%
Costs and expenses:
Cost of revenue (exclusive of amortization) (1) ...... 12,074 10,873 7,345 11% 48%
Selling and marketing (2) ....................... 266,239 209,176 140,470 27% 49%
Technology and content (2) ..................... 86,640 57,448 43,321 51% 33%
General and administrative (2) ................... 75,641 44,770 31,819 69% 41%
Related-party shared services fee ................. — 9,222 7,900 (100%) 17%
Depreciation ................................. 19,966 18,362 12,871 9% 43%
Amortization of intangible assets ................. 6,110 7,523 14,609 (19%) (49%)
Spin-off costs ................................. — 6,932 — (100%) 100%
Total costs and expenses ............................ 466,670 364,306 258,335 28% 41%
Operating income ................................. 296,296 272,757 226,300 9% 21%
Other income (expense):
Interest (expense) income, net .................... (10,871) 391 (241) (2,880%) 262%
Other, net .................................... (3,450) (1,254) (1,644) 175% (24%)
Total other expense, net ............................ (14,321) (863) (1,885) 1,559% (54%)
Income before income taxes ......................... 281,975 271,894 224,415 4% 21%
Provision for income taxes .......................... (87,387) (94,103) (85,461) (7%) 10%
Net income ....................................... 194,588 177,791 138,954 9% 28%
Net (income) loss attributable to noncontrolling interest . . . (519) (114) (178) 355% (36%)
Net income attributable to TripAdvisor, Inc. .......... $194,069 $177,677 $138,776 9% 28%
Earnings per share attributable to TripAdvisor, Inc :
Basic ....................................... $ 1.39 $ 1.33 $ 1.04 5% 28%
Diluted ...................................... $ 1.37 $ 1.32 $ 1.04 4% 27%
Weighted average common shares outstanding:
Basic ....................................... 139,462 133,461 133,461 4% 0%
Diluted ...................................... 141,341 134,865 133,461 5% 1%
Other financial data:
Adjusted EBITDA (3) .............................. $352,474 $322,918 $260,963 9% 24%
(1) Excludes amortization as follows:
Amortization of acquired technology included in
amortization of intangibles .................... $ 708$ 578$ 1,080
Amortization of website development costs included
in depreciation .............................. 12,816 12,438 8,104
$ 13,524 $ 13,016 $ 9,184
(2) Includes stock-based compensation as follows:
Selling and marketing .......................... $ 4,622 $ 3,216 $ 2,101
Technology and content ........................ 11,400 3,931 2,661
General and administrative ...................... 14,080 10,197 2,421
(3) See “Adjusted EBITDA” discussion below for more information and for a reconciliation of Adjusted
EBITDA to operating income, the most directly comparable financial measure calculated and presented in
accordance with U.S. generally accepted accounting principles, or GAAP.
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