TripAdvisor 2013 Annual Report Download - page 4

• In Business Listings, we implemented a value-based pricing structure so that more hotels can promote
their brand with confidence on the TripAdvisor platform.
All our hard work amounted to strong revenue growth and healthy profitability. Full year total revenue increased
24% to $945 million. Adjusted EBITDA of $379 million was up 7% compared to 2012. Cash flow from
operations rose 46% to $350 million and free cash flow grew 40% to $294 million, or $2.02 per share. Also, in
keeping with our charitable foundation charter, we were pleased to be able to donate $2.6 million of our company
earnings to 33 different non-profit organizations around the globe.
Further Enhancing the TripAdvisor Experience in 2014
These 2013 achievements provide a strong foundation for our 2014 goals. While TripAdvisor addresses the
major phases of the travel cycle – from inspiring, to researching and booking, to exploring a destination, and
finally, to sharing experiences post-trip – we know that there is a lot more we can do to make each phase of this
cycle simpler and more engaging for every user, on every device, in every geography.
To that end, on the heels of our successful metasearch rollout last year, we are introducing an “Instant Booking”
feature on smartphone, allowing shoppers to complete their hotel reservation on the TripAdvisor platform. Like
metasearch, we believe this feature will benefit our users and our partners: users get an easy, one-stop hotel
shopping experience and partners should enjoy more bookings and, therefore, more profit. Instant Booking is an
important advance in delivering the most comprehensive hotel shopper value proposition to users, and we are
excited about the value it could bring to our long-term competitive positioning and financial prospects.
Mobile is a major channel for travel and we are well positioned to capture market opportunities that extend well
beyond the hotel booking. Accordingly, we continue to invest in building the world’s best mobile travel
experience, complete with more personalized recommendations, more listings, better maps, bigger photos, and
enhanced features such as offline availability. Whether a user is trip-planning or trip-taking, we want them to
look to TripAdvisor as their favorite travel companion, the one who helps them explore and enjoy any destination
in the world. Our unique understanding of travelers throughout all phases of the travel cycle gives us a distinct
advantage in this area.
Words We Live By
The handwritten “Speed Wins” sign that hangs on my office door continues to set the pace in every department.
With our incredible scale and depth of content, it could be easy to get complacent, thinking that what we have
built is good enough for the long haul. But as we navigate an ever-changing landscape of macroeconomic
challenges, increasing competition, and evolving consumer needs, we need to stay laser-focused on innovating at
speed and driving continuous improvement in the travel-planning experience. We will continue to make the
necessary investments, decisions, and trade-offs to enhance our long-term growth prospects, efficiently grow our
community, and drive more benefit to our users and our partners, even if it is at the expense of near-term
profitability.
These days, employees see a newer sign on my door that reads “if it’s worth doing, it’s worth measuring.” To be
sure, all 2014 initiatives will be measured – and measured scrupulously. But value creation from these initiatives
does not lie in their expected impact to our financial results over the next few weeks, months, or quarters. Rather
these are the building blocks of continued, sustainable long-term growth. Some will prove effective, and we will
increase investment; some won’t pan out, and we’ll move on. Either way, we’ll continue to learn and test, fail
often, then learn and test some more. I am very fortunate to be surrounded by bright, creative, driven individuals
who share my passion to build a bigger and better business for the long-term.