Tripadvisor revenue inching up, but June forecast still just 20% of 2019

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.

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.