TripAdvisor Q1 results are out and they are ugly as expected. Q2 will be even worse but TripAdvisor should be able to ride out this downturn.
TripAdvisor has cut expenses dramatically including 22% of its workforce while suspending CEO salary for the rest of 2020.
In a worst case scenario where sales drops to zero, annual cash burn will be USD650 million based on my estimates.
TripAdvisor currently has:
USD798 million of cash USD300 million from its revolving credit facility
The next few quarters will be ugly but TripAdvisor should be able to last at least 20 months even in a zero sales scenario.
Anyway, a zero sales scenario for the next 12 months seems unlikely.
Let’s start with the Experiences & Dining segment. TripAdvisor’s dining app (The Fork) is the largest restaurant reservation app in Europe and dining is probably one of the first segments to recover...