Tripadvisor told shareholders Monday it expects June revenue
to be about 20% of revenue from the same period in 2019. That’s a slight
improvement from the prior two months, with April and May revenue just 10%
of the last year’s figures.
While full financial results for the second quarter of this
year will not be released until early August, Tripadvisor says it continues to
expect year-over-year revenue performance for this period will be “materially worse”
than the the first quarter of 2020 when year-over-year revenue was down 26% to $278 million.
The company says it does
expect a slight improvement in revenue in the third quarter.
Those revenue figures reflect the dramatic reduction in
consumers’ travel search and booking activity due to both travel restrictions
and ongoing concerns about COVID-19.
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In April, monthly unique users on Tripadvisor were just 33%
of the number of users during April 2019. In May that number improved to 45% compared
to a year prior, and June year-over-year performance is on track to improve compared
to May.
Tripadvisor says it is expecting an adjusted EBITDA loss of
$85 million for the second quarter of this year. The company says the value of
its cash and cash equivalents has decreased $105 million since March 31,
leaving it with $693 million on hand as of the end of May.
In its statement, Tripadvisor says it has “sufficient
liquidity to withstand a period of revenue disruption and meet its debt
covenants in 2020 and 2021, though it may consider measures to raise capital in
the future.”
In late-April, Tripadvisor eliminated about 900 positions,
furloughed about 850 employees and enacted a reduced work week for some
remaining employees.
“While it remains difficult to forecast the recovery path and when
the travel market will regain pre-COVID levels, the company remains confident
travel will rebound and that the company is well positioned to respond to any
scenarios that could evolve. The company continues to believe it will play a
critical role in that recovery and beyond by continuing to actively support its
consumers, partners and employees worldwide,” says the statement.