by Tripadvisor has been promoting the strength of its Viator brand for more than a year, and its fourth quarter and full year 2022 financial results back it up with solid numbers.
In 2022, Viator had $493 million in revenue — a 168% increase from 2021. More notably, the travel experiences marketplace accounted for 33% of Tripadvisor’s total revenue of nearly $1.5 billion in 2022, compared to just 20%. in 2021.
Since the company’s Q2 report in August, which coincided with the arrival of Matt Goldberg as CEO, Tripadvisor now provides a breakdown of Viator and TheFork’s revenue and Adjusted EBITDA separate from what it calls the “Tripadvisor Core” – existing from Tripadvisor-branded hotels, display and platform, Tripadvisor experiences and restaurants, and other offerings such as cruises, rental cars, flights and car rentals.
This filing for full year 2022 marks the first time the Company has reported full year 2021 revenue and Adjusted EBITDA for each of these segments.
In the fourth quarter of 2022, Viator revenue was $127 million, a 115% year-over-year increase and accounting for 36% of Tripadvisor’s total quarterly revenue of $354 million. That quarterly total is up from $241 million in the same quarter of 2021.
Adjusted EBITDA for Viator was minus $11 million in 2022, an improvement from minus $31 million in 2021. In the fourth quarter, Viator Adjusted EBITDA was minus $3 million, compared to minus 6 million US dollars in the fourth quarter of 2021.
Meanwhile, Tripadvisor Core showed revenue up 34% for the quarter and 45% for the full year, but now accounts for a smaller percentage of the company’s total revenue, down to 65% for 2022 compared to 74% in 2021.
Tripadvisor’s total Q4 revenue of $354 million represents 106% of the comparable period in 2019 before the COVID pandemic. And total revenue for the year is about 96% of full year 2019 numbers. Tripadvisor Q4 and FY 2022 Adjusted EBITDA of $43 million and $295 million, respectively, improved from $29 million and $100 million in Q4 2021 and full year 2021 respectively.
“We are pleased with our fourth quarter, which exceeded our expectations and concluded a strong fiscal 2022 across all of our segments,” said Matt Goldberg, CEO of Tripadvisor.
“Our results reflect a combination of continued strength in the travel industry, the value our portfolio offers travelers and partners, and the focus of our teams. As we enter 2023, we will continue to leverage these strengths while identifying new opportunities to strengthen and accelerate our performance and drive sustained profitable growth.”
Tripadvisor’s sales and marketing expenses were $194 million in the fourth quarter, a 54% increase year over year and $784 million for full year 2022, a 67% increase year over year.
In a statement releasing the results, the company says the jump in costs is “primarily due to an increase in our SEM (search engine marketing) and other paid online traffic acquisition costs, in addition to other marketing costs, the vast majority of which have been.” emerged in our Tripadvisor Core and Viator segments in response to increased travel demand from consumers as restrictions on travel activity eased and the travel industry continued to recover.”
In November, Viator and Uber announced a partnership that will allow Uber users to book Viator experiences in the Uber app.
Source: PhocusWire
