TripAdvisor 2015 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2015 TripAdvisor annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

Adjusted EBITDA
Toprovideinvestorswithadditionalinformationregardingourfinancialresults,wealsodiscloseAdjustedEBITDA,whichisanon-GAAPfinancial
measure.WehaveprovidedareconciliationbelowofAdjustedEBITDAtonetincome,themostdirectlycomparableGAAPfinancialmeasure.A“non-GAAP
financialmeasure”referstoanumericalmeasureofacompany’shistoricalorfuturefinancialperformance,financialposition,orcashflowsthatexcludes(or
includes)amountsthatareincludedin(orexcludedfrom)themostdirectlycomparablemeasurecalculatedandpresentedinaccordancewithGAAPinsuch
company’sfinancialstatements.
WedefineAdjustedEBITDAasnetincome(loss)plus:(1)provisionforincometaxes;(2)otherincome(expense),net;(3)depreciationofpropertyand
equipment,includingamortizationofinternalusesoftwareandwebsitedevelopment;(4)amortizationofintangibleassets;(5)stock-basedcompensationandother
stock-settledobligations;(6)goodwill,long-livedassetandintangibleassetimpairments;and(7)othernon-recurringexpenses.AdjustedEBITDAistheprimary
metricbywhichmanagementevaluatestheperformanceofitsbusinessandonwhichinternalbudgetsandforecastsarebased.Inparticular,theexclusionofcertain
expensesincalculatingAdjustedEBITDAfacilitatesoperatingperformancecomparisonsonaperiod-to-periodbasis.Webelievethatbyexcludingcertainnon-
cashexpenses,suchasstock-basedcompensation,AdjustedEBITDAcorrespondsmorecloselytothecashthatoperatingincomegeneratedfromourbusinessand
allowsinvestorstogainanunderstandingofthefactorsandtrendsaffectingtheongoingcashearningscapabilitiesofourbusiness,fromwhichcapitalinvestments
aremadeanddebtisserviced.
OuruseofAdjustedEBITDAhaslimitationsasananalyticaltool,andyoushouldnotconsideritinisolationorasasubstituteforanalysisofourresults
reportedinaccordancewithGAAP.Someoftheselimitationsare:
·AdjustedEBITDAdoesnotreflectourcashexpendituresorfuturerequirementsforcapitalexpendituresorcontractualcommitments;
·AdjustedEBITDAdoesnotreflectchangesin,orcashrequirementsfor,ourworkingcapitalneeds;
·AdjustedEBITDAdoesnotreflecttheinterestexpense,orcashrequirementsnecessarytoserviceinterestorprincipalpaymentsonourdebt;
·AdjustedEBITDAdoesnotconsiderthepotentiallydilutiveimpactofstock-basedcompensationorotherstock-settledobligations;
·Althoughdepreciationandamortizationarenon-cashcharges,theassetsbeingdepreciatedandamortizedmayhavetobereplacedinthefuture,and
AdjustedEBITDAdoesnotreflectcashcapitalexpenditurerequirementsforsuchreplacementsorfornewcapitalexpenditurerequirements;
·AdjustedEBITDAdoesnotreflecttaxpaymentsthatmayrepresentareductionincashavailabletous;and
·Othercompanies,includingcompaniesinourownindustry,maycalculateAdjustedEBITDAdifferentlythanwedo,limitingitsusefulnessasa
comparativemeasure.
Becauseoftheselimitations,youshouldconsiderAdjustedEBITDAalongsideotherfinancialperformancemeasures,includingcashflows,netincomeand
ourotherGAAPresults.
Referto“Note16—Segment and Geographic Information” inthenotestoourconsolidatedfinancialstatementsinItem8forareconciliationofAdjusted
EBITDAtonetincome,themostdirectlycomparablefinancialmeasurecalculatedandpresentedinaccordancewithGAAP,fortheperiodspresentedabove.
Consolidated Revenue and Segments
Revenue by Product
Wederivethesubstantialportionofourrevenuethroughthesaleofadvertising,primarilythroughclick-basedadvertising,whichincludesinstantbooking
revenueand,toalesserextent,display-basedadvertising.Inaddition,weearnrevenuefromacombinationof:subscription-basedandtransaction-basedofferings
fromourBusinessListingsproducts;subscriptionandcommission-basedofferingsfromourVacationRentalsproducts;roomreservationssoldthroughour
JetsetterandTingobrands;destinationactivitiesprimarilysoldthroughViator;andonlinerestaurantreservationsbookedprimarilythroughLafourchette,or
thefork.com.Wealsoderiverevenuefromcontentlicensing.
36