TripAdvisor 2015 Annual Report Download - page 42

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Revenue by Geography
Thefollowingtablepresentsourrevenuebygeographicregion,whichreflectshowweviewourgeographicrevenueinternally.Revenuebygeographyis
basedonthegeographiclocationofourwebsites:
Year ended December 31, % Change
2015 2014 2013 2015 vs 2014 2014 vs 2013
(in millions)
Revenue by geographic region:                  
NorthAmerica(1)  $ 775  $ 629  $ 494   23%  27%
EMEA(2)   473   405   291   17%  39%
APAC(3)   172   156   122   10%  28%
LATAM(4)   72   56   38   29%  47%
Total  $ 1,492  $ 1,246  $ 945   20%  32%
(1) UnitedStatesandCanada*
(2) Europe,MiddleEastandAfrica
(3) Asia-Pacific
(4) LatinAmerica
* Canadaisincludedininternationalrevenuebelowfordiscussionpurposes.
Internationalrevenueincreased$100millionand$171millionduringtheyearsendedDecember31,2015and2014,respectively,comparedtothesame
periodsin2014and2013.Internationalrevenuerepresented50%,52%,and51%oftotalrevenueduringtheyearsendedDecember31,2015,2014,and2013,
respectively.Althoughinternationalrevenueincreased,ourinternationalrevenuegrowthratedeceleratedandinternationalrevenue,asapercentageoftotal
revenue,declinedslightlyduringtheyearendedDecember31,2015whencomparedtothesameperiodsin2014and2013,primarilyduetotheimpactof
fluctuationsinforeignexchangerates,specificallytheprolongedweaknessoftheEuro,inadditiontoouracceleratedrolloutofinstantbookingintheU.K.during
2015andgenerallylowerCPC’s,ormonetization,inmarketsoutsidetheU.S.overall.
Consolidated Expenses
Cost of Revenue
Costofrevenueconsistsofexpensesthataredirectlyrelatedorcloselycorrelatedtorevenuegeneration,includingdirectcosts,suchasadservingfees,
flightsearchfees,transactionfeesanddatacentercosts.Inaddition,costofrevenueincludespersonnelandoverheadexpenses,includingsalaries,benefits,stock-
basedcompensationandbonusesforcertaincustomersupportpersonnelwhoaredirectlyinvolvedinrevenuegeneration.
Year ended December 31, % Change
2015 2014 2013 2015 vs 2014 2014 vs 2013
(in millions)
Directcosts $ 43  $ 31  $ 18   39%  72%
Personnelandoverhead 15   9   -   67%   100%
Totalcostofrevenue  $ 58  $ 40  $ 18   45%  122%
%ofrevenue   3.9%  3.2%  1.9%     
2015 vs. 2014
Costofrevenueincreased$18millionduringtheyearendedDecember31,2015,respectively,whencomparedtothesameperiodsin2014,primarilydue
toincreasedmerchantcreditcardandtransactionfees,drivenbyadditionaltransactioncostsfromour2014businessacquisitionsinAttractionsandRestaurantsand
growthinourVacationRentalfree-to-listbusiness;increasedpersonnelcostsfromadditionalheadcounttosupportbusinessgrowthandcustomersupport;and
incrementalpersonnelcostsrelatedtoAttractionsandRestaurants.OurAttractionandRestaurantbusinessescontributedanincremental$15milliontoourcostof
revenuefortheyearendedDecember31,2015,ofwhichanincremental$6millionwasrelatedtopersonnelandoverhead.
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