Exhibit 99.3
Tripadvisor Segment Reporting Update Memo
August 4, 2022
As referenced in prior shareholder letters, we have been evaluating changes to our segment information. This quarter, Q2 2022, we are disclosing our financial information under a new segment structure. To ensure that you have a basis for comparison, attached are segment financials, which have been recast by quarter in the new segment structure, starting in Q1 2019.
New reporting
We now report under three reportable segments, Tripadvisor Core, Viator, and TheFork, and we will include a corporate & eliminations category. A summary of the changes are as follows:
Tripadvisor Core
Viator
TheFork
Eliminations
Other Considerations
The tables below describe the revenue and expense components of updated segments and the relationship to previous segments, and the following page provides updated segment financials recast for certain prior periods.
TRIPADVISOR CORE SEGMENT | Relationship to Previous Segment |
| Description | |
Revenue | Tripadvisor Branded Hotels | Formerly included in legacy HM&P segment |
| Former legacy Tripadvisor branded hotels revenue line |
| Tripadvisor Display & Platform | Formerly included in legacy HM&P segment |
| Former legacy Display & Platform revenue line |
| Tripadvisor Experiences & Dining | Formerly included in legacy E&D segment revenue |
| Tripadvisor restaurant services revenue |
| Other | Other revenue |
| Includes all revenue from legacy Other line (cruises, rentals, flights, and cars) |
Expenses | Tripadvisor segment expenses | Expenses formerly included in legacy HM&P segment |
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| Expenses formerly included in legacy Other |
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| Certain expenses formerly included in legacy E&D segment | >> | Direct costs and people costs incurred in support of Tripadvisor Experiences and Dining revenue lines |
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VIATOR SEGMENT | Relationship to Previous Segment |
| Description | |
Revenue | Viator Revenue | All Experiences revenue, formerly included in legacy E&D segment |
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Expenses | Viator segment expenses | Certain expenses formerly included in legacy E&D segment | >> | All expenses related to Viator, inclusive of affiliate marketing fee to Tripadvisor for bookings generated on Tripadvisor and fulfilled by Viator, and allocation of certain corporate costs |
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THEFORK SEGMENT | Relationship to Previous Segment |
| Description | |
Revenue | TheFork Revenue | Revenue related to TheFork point of sale, formerly included in the legacy E&D segment |
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Expenses | TheFork segment expenses | Certain expenses formerly included in legacy E&D segment | >> | All expenses related to TheFork, inclusive of affiliate marketing fee to Tripadvisor for bookings generated on Tripadvisor and fulfilled by TheFork, and allocation of certain corporate costs |
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Intersegment Eliminations (1) | Relationship to Previous Segment |
| Description | |
Revenue | Tripadvisor Experiences & Dining Revenue | Formerly included in the legacy E&D segment as intra-segment eliminations | >> | Elimination of revenue recognized by Tripadvisor from affiliate marketing fees received from Viator and TheFork |
Expenses |
| Certain expenses formerly included in the legacy E&D segment as intra-segment eliminations | >> | Expense elimination from Viator and TheFork, equal to affiliate marketing fees received by Tripadvisor |
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(1) Revenue and expense earned and charged between segments are eliminated upon consolidation. Eliminations result in net neutral impact to adjusted EBITDA. |
(in $millions, except percentages) | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | FY19 |
| Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | FY20 |
| Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY21 |
| Q1 2022 | Q2 2022 |
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Tripadvisor Core Segment Revenue | 317 | 327 | 323 | 256 | 1,223 |
| 223 | 53 | 114 | 94 | 483 |
| 107 | 184 | 212 | 162 | 665 |
| 191 | 274 |
as % of 2019 |
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| 70% | 16% | 35% | 37% | 39% |
| 34% | 56% | 66% | 63% | 54% |
| 60% | 84% |
Tripadvisor Branded Hotels | 216 | 211 | 197 | 155 | 779 |
| 137 | 31 | 67 | 57 | 292 |
| 74 | 131 | 143 | 103 | 451 |
| 135 | 188 |
as % of 2019 |
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| 63% | 15% | 34% | 37% | 37% |
| 34% | 62% | 73% | 66% | 58% |
| 63% | 89% |
Display & Platform | 38 | 43 | 41 | 39 | 161 |
| 32 | 7 | 13 | 17 | 69 |
| 14 | 26 | 29 | 29 | 98 |
| 26 | 37 |
as % of 2019 |
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| 84% | 16% | 32% | 44% | 43% |
| 37% | 60% | 71% | 74% | 61% |
| 68% | 86% |
Tripadvisor Experiences & Dining (1) | 21 | 30 | 36 | 30 | 117 |
| 28 | 8 | 16 | 14 | 65 |
| 12 | 16 | 23 | 20 | 70 |
| 20 | 35 |
as % of 2019 |
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| 133% | 27% | 44% | 47% | 56% |
| 57% | 53% | 64% | 67% | 60% |
| 95% | 117% |
Other | 42 | 43 | 49 | 32 | 166 |
| 26 | 7 | 18 | 6 | 57 |
| 7 | 11 | 17 | 10 | 46 |
| 10 | 14 |
as % of 2019 |
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| 62% | 16% | 37% | 19% | 34% |
| 17% | 26% | 35% | 31% | 28% |
| 24% | 33% |
Tripadvisor Core Segment Adj. EBITDA | 118 | 131 | 129 | 98 | 476 |
| 73 | (35) | 27 | (3) | 64 |
| 7 | 49 | 73 | 49 | 177 |
| 55 | 116 |
Adj. EBITDA Margin | 37% | 40% | 40% | 38% | 39% |
| 33% | -66% | 24% | -3% | 13% |
| 7% | 27% | 34% | 30% | 27% |
| 29% | 42% |
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Viator Segment | 44 | 85 | 97 | 61 | 288 |
| 36 | 1 | 9 | 8 | 55 |
| 12 | 40 | 73 | 59 | 184 |
| 56 | 136 |
as % of 2019 |
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| 82% | 1% | 9% | 13% | 19% |
| 27% | 47% | 75% | 97% | 64% |
| 127% | 160% |
Viator Segment Adj. EBITDA | (23) | (2) | 1 | (4) | (28) |
| (24) | (18) | (13) | (16) | (72) |
| (14) | (13) | 1 | (6) | (31) |
| (20) | 0 |
Adj. EBITDA Margin | -52% | -2% | 1% | -7% | -10% |
| -67% | -1800% | -144% | -200% | -131% |
| -117% | -33% | 1% | -10% | -17% |
| -36% | 0% |
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TheFork Segment | 28 | 31 | 34 | 35 | 127 |
| 31 | 6 | 32 | 17 | 86 |
| 7 | 18 | 30 | 30 | 85 |
| 26 | 32 |
as % of 2019 |
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| 111% | 19% | 94% | 49% | 68% |
| 25% | 58% | 88% | 86% | 67% |
| 93% | 103% |
TheFork Segment Adj. EBITDA | (6) | (1) | (1) | (2) | (10) |
| (9) | (21) | 1 | (14) | (43) |
| (19) | (11) | (2) | (14) | (46) |
| (8) | (7) |
Adj. EBITDA Margin | -21% | -3% | -3% | -6% | -8% |
| -29% | -350% | 3% | -82% | -50% |
| -271% | -61% | -7% | -47% | -54% |
| -31% | -22% |
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Intersegment Revenue Eliminations (1) | (13) | (21) | (26) | (17) | (78) |
| (12) | (1) | (4) | (3) | (20) |
| (3) | (7) | (12) | (10) | (32) |
| (11) | (25) |
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Consolidated Revenue | 376 | 422 | 428 | 335 | 1,560 |
| 278 | 59 | 151 | 116 | 604 |
| 123 | 235 | 303 | 241 | 902 |
| 262 | 417 |
as % of 2019 |
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| 74% | 14% | 35% | 35% | 39% |
| 33% | 56% | 71% | 72% | 58% |
| 70% | 99% |
Consolidated Adj. EBITDA (2) | 89 | 128 | 129 | 92 | 438 |
| 40 | (74) | 15 | (33) | (51) |
| (26) | 25 | 72 | 29 | 100 |
| 27 | 109 |
Adj. EBITDA Margin (3) | 24% | 30% | 30% | 27% | 28% |
| 14% | -125% | 10% | -28% | -8% |
| -21% | 11% | 24% | 12% | 11% |
| 10% | 26% |
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GAAP Net Income (Loss) (4) | 26 | 34 | 50 | 15 | 126 |
| (16) | (153) | (48) | (73) | (289) |
| (80) | (40) | 1 | (29) | (148) |
| (34) | 31 |
GAAP Net Income (Loss) Margin | 7% | 8% | 12% | 4% | 8% |
| -6% | -259% | -32% | -63% | -48% |
| -65% | -17% | 0% | -12% | -16% |
| -13% | 7% |
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(1) Tripadvisor experiences and dining revenue within the Tripadvisor Core segment shown in this table are gross of intersegment (intercompany) revenue, which is eliminated on a consolidated basis. Eliminations result in net neutral impact to adjusted EBITDA. | ||||||||||||||||||||
(2) Consolidated Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation of this measure to the most directly comparable GAAP measure, please refer to the reconciliations available in our supplemental financials on our investor relations website at http://ir.tripadvisor.com. | ||||||||||||||||||||
(3) Tripadvisor defines “Consolidated Adjusted EBITDA margin” as Consolidated Adjusted EBITDA divided by revenue. | ||||||||||||||||||||
(4) This amount reflects our consolidated GAAP Net Income (Loss) for the periods presented. Tripadvisor does not calculate or report net income (loss) by segment. | ||||||||||||||||||||
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Note: Due to rounding, figures may not sum to total |
Contact: ir@tripadvisor.com
TRIP-G