2018 INVESTOR DAY NOVEMBER 14, 2018 - LIBERTY TRIPADVISOR HOLDINGS, INC.
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2018 Investor Day
November 14, 2018
Forward-Looking Statements
This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995, including statements about business strategies, growth and expansion opportunities, future costs, market
potential, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve
many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such
statements, including, without limitation, possible changes in market acceptance of new services, the ability of TripAdvisor to
monetize its website traffic, the ability of TripAdvisor to execute on expansion into adjacent services, competitive issues,
regulatory matters, TripAdvisor’s ability to capitalize on acquisition opportunities and changes in law. These forward-looking
statements speak only as of the date of this presentation, and Liberty TripAdvisor expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change
in Liberty TripAdvisor’s expectations with regard thereto or any change in events, conditions or circumstances on which any
such statement is based. Please refer to the publicly filed documents of Liberty TripAdvisor, including the most recent
Annual and Quarterly Reports on Forms 10-K and 10-Q, for additional information about Liberty TripAdvisor and about the
risks and uncertainties related to Liberty TripAdvisor’s business which may affect the statements made in this presentation.
2
“You TRIPin’…?” Greg Maffei – Chairman, President & CEO
Let’s Go On A TRIP
Your Complete Travel Supplier
Planning… Booking… While You’re There…
Research Meta / Price Comparison Attractions / Restaurants
Where can I stay on Landed this morning. What’s a good
a budget?? spot for dinner tonight?
I want to go
to the
Monaco
What things can I do here
Grand Prix
without breaking the bank??
Is it a good
place to visit
in May?
1m activities and experiences
702m reviews and opinions(1) 2.1m accommodation listings(1)
4.9m restaurant listings(1)
(1) As of Q3-18.
4
Hotel Segment Economics Improving
• Stable segment revenue driven by improving auction dynamics and revenue per hotel shopper
• Product enhancements and optimized marketing driving Hotel segment adjusted EBITDA growth
• Improved quality of hotel shoppers increased number directed to partner websites
• Mobile hotel shoppers surpassed 50% of total hotel shoppers
• Mobile click-based revenue grew 40% in Q3-18
• Improved Hotel segment EBITDA fueled 6th straight quarter of consolidated EBITDA consensus beat
Growing Hotel Segment Adjusted EBITDA Returned to Positive Revenue per
(amounts in millions) Hotel Shopper Growth
Hotel Adjusted EBITDA Hotel Adjusted EBITDA Margin
5%
29% 28% 32%
26%
16% $99 -7%
$88 $89
-11%
$63 -13%
$51 -16%
Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Source: TripAdvisor filings. 5
Efficient Customer Acquisition
• TRIP flywheel and strong brand allows for lower, more efficient, marketing spend
• Optimizing paid marketing reduced total number of hotel shoppers, but improved quality
• Consolidated selling and marketing expense decreased year-over-year for 4 straight quarters
• Impressive 490m average monthly unique visitors despite small marketing budget compared to peers
Optimizing Marketing Spend Marketing Expense at Low End of Peers
TV Advertising Direct Marketing (ex TV) (Direct Marketing Expense as % of Revenue)
Total Direct Marketing % of Revenue 90%
44%
36% 37% 37% 70%
33%
$42
$33 $35
$24
$15 50%
$153
$117 $126 $115
$98
30%
Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 YTD Q3-18
Source: TripAdvisor filings. 6
Growing New Monetization Sources
• Early online air travel market became commoditized, prompting OTAs to expand into hotels
• Today, hotel market is fragmented and increasingly moving online…what’s next?
Fries With That Burger: Non-Hotel Segment
• Nascent Non-Hotel market provide massive growth
Hotels opportunity
• Majority of global travel experiences sold offline today,
but increasingly moving online
• TRIP uniquely positioned:
• Demand
Hotels Restaurants • Global brand equity across 49 markets
Attractions • Unrivaled travel content: 702m reviews and opinions
• Largest travel audience: 490m avg. monthly unique visitors
• Supply
• 2.1m accommodations
Tours • 1.0m experience listings
• 4.9m restaurant listings
Source: TripAdvisor investor presentation. Data as of Q3-18. 7
Impressive Growth in Non-Hotel Segment…and Accelerating
• Both number of bookings and gross booking Bookable Experiences Nearly Doubles in Q3
value grew more than 30% in Q3-18 (amounts in thousands)
140
• Non-Hotel revenue +20% in Q3
83
• Driven by Experiences and Restaurants, 56
despite slower growth in Rentals 32
11
• TripAdvisor investing to improve product,
supply and marketing 2014 2015 2016 2017 Q3-2018
• Acquired Bokun in April 2018 Continuing to Build Bookable Restaurants
• Leading provider of business management (amounts in thousands)
has 47k(1)
technology for tours, attractions, experiences 54
46
• Also large opportunity with direct advertising 33
43
• High margin 20
• Very specifically targeted
• Diversifies revenue mix 2014 2015 2016 2017 Q3-2018
Source: TripAdvisor filings, unless otherwise noted.
(1) Source: Open Table press room. 8
Social Engagement is an End to End Activity – NOT a Pivot
Monaco X
Your followers also stayed
Greg posted a comment at Hotel Hermitage
November 2018
Heading to Monaco in May…any recommendations for where to stay? Chase Carey
@chasecarey
Greg
@gregmaffei
Like Save Repost Share EVERYWHERE
John Malone posted a comment
Denver, Colorado November 2018
Find me in CO, NY, LA, Atlanta,
Westchester, Needham, London,
Anchorage, Stamford…or 21 races in 21
We loved our stay at the Hotel Hermitage. Excellent rooftop views!
countries.
Steve Kaufer
@kaufer
Newton, MA
I hear there’s a car race around that time of year. But while you’re there,
make sure to check out the Japanese Gardens!
Like Save Repost Share
Social Engagement Builds Richer, Sticker Customer Relationships
9
2018 Liberty Investor Meeting
Steve Kaufer, CEO and President
November 14, 2018Forward-Looking Statements. Our presentation today, including the slides contained herein, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts or guarantees of future performance and are based on management's assumptions and expectations, which are inherently subject to difficult to predict uncertainties, risks and changes in circumstances. The use of words such as "intends,” “expects,” “may,” “believes,” “should,” “seeks,” “intends,” “plans,” “potential,” “will,” “projects,” “estimates,” “anticipates” or similar expressions generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements, and any statements that refer to expectations, beliefs, plans, predictions, projections, forecasts, objectives, assumptions, models, illustrations, profiles or other characterizations of future events or circumstances are forward-looking statements, including without limitation statements relating to future revenues, expenses, margins, performance, profitability, cash flows, net income/(loss), earnings per share, growth rates and other measures of results of operations (such as adjusted EBITDA) and future growth prospects for TripAdvisor’s business. Actual results and the timing and outcome of events may differ materially from those expressed or implied in the forward-looking statements for a variety of reasons, including, among others, those discussed in the “Risk Factors” section of our Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to update any forward-looking or other statements in this presentation, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on forward-looking statements. Non-GAAP Measures. This presentation also includes discussion of both GAAP and non-GAAP financial measures. Important information regarding TripAdvisor’s definitions and use of these measures, as well as reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure are included in the earnings release reporting our third quarter 2018 financial results and supplemental financial information, which are available on the Investor Relations section of our website: www.tripadvisor.com, and in the “Non-GAAP Reconciliations” section of this document. These non-GAAP measures are intended to supplement, and are not a substitute for comparable GAAP measures. Investors are urged to consider carefully the comparable GAAP measures and reconciliations. Industry / Market Data. Industry and market data used in this presentation have been obtained from industry publications and sources as well as from research reports prepared for other purposes. We have not independently verified the data obtained from these sources and cannot assure you of the data’s accuracy or completeness.
Strong Q3 results from continued solid execution
Q3 Highlights
1. Revitalized Hotel segment profit growth
✓ Hotel segment adjusted EBITDA nearly doubled and margins >30% for the first time since 2016
2. Hotel product and marketing efforts coalescing nicely
✓ Revenue per hotel shopper growth turned positive
3. All key businesses improved or accelerated
✓ Click-based revenue growth improved sequentially to nearly flat in Q3
✓ Experiences + Restaurants growth accelerated
Q3 Results
y/y % change
Hotel Non-Hotel Consolidated
Revenue -2% +20% +4%
Adjusted EBITDA(1) +94% +7% +54%
Adjusted EBITDA Margin 32% 31% 32%
GAAP Net Income N/A(2) N/A(2) +176%
(1) Adjusted EBITDA is our segment profit measure and is defined as net income plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and
website development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived asset and intangible asset impairments, and (7) other non-recurring expenses and income.
(2) TripAdvisor does not calculate or report net income by segmentWe have revitalized profit growth this year
Consolidated Adjusted EBITDA(1) and adjusted EBITDA growth
(in $ millions, except percentages)
352 “Mid-
331 twent…
-6%
-24%
(2)
2016 2017 2018 Outlook
Consolidated Adjusted EBITDA Consolidated Adjusted EBITDA growth
(1) Adjusted EBITDA is our segment profit measure and is defined as net income plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and
website development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived asset and intangible asset impairments, and (7) other non-recurring expenses and income.
(2) We have not reconciled adjusted EBITDA guidance to projected GAAP net income (loss) because we do not provide guidance on GAAP net income (loss) or the reconciling items between adjusted EBITDA and GAAP net income(loss), as a
result of the uncertainty regarding, and the potential variability of, certain of these items. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.More exciting progress since last year’s investor meeting
$
OPTIMIZE IMPROVE DIVERSIFY INNOVATE REPURCHASE
Aligned product Hotel Strong Non-Hotel Launched Repurchased
and marketing monetization, growth from immersive 2.6M shares at
on driving click-based Experiences & “New $38.73 per
partner value revenue, profit Restaurants; TripAdvisor” share in 1H18
and deepening growth all Newer media experience
consumer improving advertising
relationship products getting
tractionTripAdvisor is central player in
massive travel market that is
shifting online
✓ $1.6 trillion(1) global travel market opportunity and
growing
✓ Travel bookings shifting online; ad dollars are
following
✓ TripAdvisor’s content and community drives brand
loyalty and significant influence on travel commerce
✓ Building a more engaging, end-to-end user
experience
✓ Positioned well for long-term profitable growth
(1) Estimated 2017 total travel market size, according to Phocuswright Research’s “The State of Digital Travel 2017”Unique, scaled, global travel
platform
702M Reviews and opinions
490M avg. monthly unique visitors(1)
49 markets; 28 languages
>60% unique monthly visitors on mobile
>50% hotel shoppers on mobile
2.1M accommodation listings(2)
1.0M travel activities and
experiences
4.9M restaurant listings
$1.6B LTM Revenue(3)
$398M LTM Adjusted EBITDA(3,4)
(1) Average unique monthly visitors for TripAdvisor internal log files for Q3 2018
(2) Includes approximately 1.2M hotels, inns, B&Bs, and specialty lodging, as well as 880K rental listings
(3) Based on consolidated trailing 12 months ended Q3 2018
(4) Adjusted EBITDA is our segment profit measure and is defined as net income (loss) plus: (1) provision for income taxes (2)
other income (expense), net (3) depreciation of property and equipment, including amortization of internal use software and
website development (4) amortization of intangible assets (5) stock-based compensation and other stock-settled
obligations (6) goodwill, long-lived asset and intangible asset impairments, and (7) other non-recurring expenses and
incomeBe the place people go to discover
and experience the world
Create the world’s most engaging travel site that helps
consumers make better, faster, more confident decisions
• Spanning a spectrum of travel products and
reaching a global audience
• Delight and inspire consumers by helping them
discover, research, shop, book, experience and
share the perfect tripAddressing the bear case head-on
Risk: “Hotel profitability is in decline” Risk: “Shopper declines are permanent”
Reality: ✓ Returned to strong EBITDA growth & Reality: ✓ Grew hotel shoppers directed to partner sites in Q3
margin in Q3 ✓ Temporary hotel shopper decline expected trade-
✓ Large monetization opportunity from off for increased marketing efficiency; impacts
helping users find the best price moderate throughout 2019
✓ Untapped opportunities high-margin media ✓ Revenue per shopper is our biggest long-term
ad growth growth opportunity
✓ Increased monetization fuels reinvestment into
paid marketing channels
Risk: “Mobile shift a ‘forever’ drag” Risk: “Increased competition a risk”
Reality: ✓ Mobile is >60% of monthly unique users ✓ At the fore of $1.6T travel market that is growing
and > 50% of hotel shoppers
Reality: and shifting online
✓ Mobile monetization growing as ✓ Massive influence creates large monetization
consumers shift to mobile opportunities
✓ Newer media ad products equally ✓ Differentiated, end-to-end consumer offering
valuable on mobile and desktop ✓ Non-Hotel offerings reinforce in-destination “travel
✓ Mobile footprint a competitive advantage companion” and deepens user engagement
in Experience and Restaurants offeringsOur Growth Strategy
Drive Increase
Sustainable Operational
Revenue Efficiency and
Growth Re-invest for the
Customer
Innovate and deepen
the travel experienceOur Growth Strategy
Drive Increase
Operational
Sustainable
Efficiency and
Revenue Re-invest for the
Growth Customer
Innovate and deepen
the travel experienceA powerful, global platform to drive long-term growth
CONTENT AGGREGATOR AUDIENCE AGGREGATOR
TripAdvisor content Efficiently aggregate large, global
Bring together a compelling, TripAdvisor
community creates drives global audience travel audiences
scaled & differentiated,
more content and travel commerce
shop-able, travel experience
influence • 490M monthly uniques(1);
>60% on mobile
• 702M reviews & opinions(1)
• 160M monthly unique hotel
• 153M photos(1)
shoppers(1); >50% on mobile
• 8.0M businesses listed(2) across
• ~5B annual monthly uniques(3)
a multi-category experience
• Multi-channel traffic acquisition:
• Best hotel prices across
200+ websites − Direct type-in
• Growing instantly-bookable − SEO
experiences supply − SEM
Audience drives
− Retargeting
valuable leads and
− CRM
bookings for travel
− Television
partners
(1) TripAdvisor internal log files as of Q3 2018
(2) Includes approximately 1.2M hotels, inns, B&Bs, and specialty lodging, 880K vacation rental listings, 1M travel activities and experiences, 4.9M restaurant listings
(3) Sum of TripAdvisor monthly unique visitors in FY 2017 based on internal log filesKey Growth Priorities 1. Hotels 2. Experiences 3. Restaurants
Our Hotel focus: Returning to profitable growth
Key Growth Priorities
1. Hotels
✓ Improved best price shopping experience
vs. competition
✓ Product and marketing aligned to help
consumers save money
✓ High-margin media advertising product a
hit with hoteliers; large opportunity aheadKey Growth Priorities
Revenue per Hotel Shopper Growth (1)
YoY Growth
5%
-…
-11%
-13%
-16%
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18
(1) Revenue per Hotel Shopper. Revenue per hotel shopper is a key performance metric. It is designed to measure how
effectively we monetize or convert hotel shoppers into revenue. Revenue per hotel shopper is calculated by dividing total
TripAdvisor-branded click-based and transaction revenue by the total average unique monthly hotel shoppers for the period.Key Growth Priorities 1. Hotels 2. Experiences
Our Experiences focus: Capitalize on multi-billion
dollar growth opportunity as bookings move online
2020 2020
% offline bookings(1) projected total bookings(1)
73% $183B
(1) Based on Phocuswright’s July 2017 “Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020” reportKey Growth Priorities
1. Hotels
2. Experiences
✓ Supply: 1.0M experiences listings(1), globally
✓ Bookable products grew 98% year-over-year in
Q3 to 140K(1)
✓ Globalizing our content and supply
✓ SaaS offering through Bokun
✓ Product: Improved shopping experience
✓ 24-hr cancellation, mobile, ticketing
✓ Marketing: Television ads amplify brand
awareness and growth
(1) TripAdvisor internal log files as of Q3 2018Key Growth Priorities
Experiences Bookable Products(1)
150 (in thousands)
130
110
90
140
70
83
50
56
11 32
30
2014 2015 2016 2017 Q3 2018
(1) TripAdvisor internal log files as of Q3 2018Key Growth Priorities 1. Hotels 2. Experiences 3. Restaurants
Our Restaurants focus:
delight consumers and increase frequency and
engagement, especially on mobileKey Growth Priorities
1. Hotels
2. Experiences
3. Restaurants
✓ Supply: 4.9M(1) restaurant listings, globally
✓ Q3 Bookable restaurants grew 19% to 54K(1,2) vs.
OpenTable’s 47K(3)
✓ Product:
✓ Consumer: >60% of bookings on mobile app(1, 2)
✓ Supplier: Growing media advertising opportunities
on TripAdvisor
(1) TripAdvisor internal log files as of Q3 2018
(2) LaFourchette (TheFork) log files as of Q3 2018
(3) Source: www.opentable.com/aboutKey Growth Priorities
60
lafourchette Bookable Restaurants(1)
(in thousands)
55
50
45
54
40
46
43
35
33
30 20
2014 2015 2016 2017 Q3 2018
(1) TripAdvisor internal log files as of Q3 2018Our Growth Strategy
Increase
Drive Operational
Sustainable
Revenue
Efficiency and
Growth Re-invest for
the Customer
Innovate and deepen
the travel experienceOptimized Hotel marketing portfolio driving profitability
Consolidated direct sales & marketing detail: Hotel segment adjusted EBITDA growth(1)
YoY Growth
Q3’17 Q3’18 % YoY YTD’17 YTD’18 % YoY
Growth Growth
94%
Direct S&M $195M $150M -23% $526M $451M -14%
Direct S&M (excl.
Hotel Television $153M $115M -25% $468M $359M -23%
Advertising)
6%
Hotel Television 0%
Advertising
$42M $35M -17% $58M $92M 59% -5%
-17% -20%
Indirect S&M $52M $56M 8% $157M $170M 8%
-48%
Total S&M $247M $206M -17% $683M $621M -9%
Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18
(1) Adjusted EBITDA is our segment profit measure and is defined as net income plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and
website development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived asset and intangible asset impairments, and (7) other non-recurring expenses and incomeOptimized Hotel marketing portfolio driving profitability
Hotel segment adjusted EBITDA margin(1,2)
(in $ millions, except percentages)
110 32% 33%
Hotel Segment EBITDA
100 EBITDA Margin 99 31%
29%
88 89 29%
90 88
28% 84 28% 27%
80 26%
26%
25%
70
63 23%
60
21%
51
50
19%
40 17%
16%
30 15%
Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18
(1) Adjusted EBITDA is our segment profit measure and is defined as net income plus: (1) provision for income taxes; (2) other income (expense), net; (3) depreciation of property and equipment, including amortization of internal use software and
website development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived asset and intangible asset impairments, and (7) other non-recurring expenses and income
(2) Adjusted EBITDA margin by segment is defined as segment adjusted EBITDA divided by segment revenueReinvesting in TV advertising to promote hotel price comparison
Our Growth Strategy
Drive Increase
Sustainable Operational
Revenue Efficiency and
Growth Re-invest for the
Customer
Innovate and deepen
the travel experienceKey Growth Priorities Core Experience ✓ Building “Connective Tissue” that deepens consumer relationships throughout the travel journey’s micro-moments ✓ Unlocking consumer and partner engagement on our platform ✓ Leveraging TripAdvisor’s global audience and significant influence on travel commerce
New travel feed reinforces TripAdvisor as the de facto travel
network
Expand and Connect
1 our Community
New ways to
2 discover, create and
share
recommendations in
relevant time
Deepen consumer
3 engagement and
unlock monetizationHub of immersive travel content from brands and influencers
Well-equipped to win in a dynamic travel landscape full of
opportunity, competition and “co-opetition”
4
4Future (Great) Expectations
Strong 2018 profit growth outlook…
Increase
Drive 1. Full year 2018 Consolidated adjusted EBITDA
Operational growth in the mid-twenties percent range
Sustainable Efficiency and
Revenue Re-invest for …and expect healthy profit growth in 2019
Growth the Customer
1. Product improvements and marketing drive
consumer engagement and higher-value traffic
to partners
2. Improved TV return on investment
Innovate and deepen
the travel experience 3. Media ad product growth
4. Year-over-year benefits from 2018’s progressive
marketing pull-back and continued operating
efficiencyThank You
Non-GAAP Reconciliations
2016 2017 2018
(in $millions, except per share amounts and percentages) Q1 Q2 Q3 Q4 FY* Q1 Q2 Q3 Q4 FY* Q1 Q2 Q3 YTD*
Reconciliation from GAAP Net Income to Adjusted EBITDA (Non-GAAP):
(1)
GAAP Net income $29 $34 $55 $1 $120 $13 $27 $25 ($84) ($19) $5 $32 $69 $105
(1)
Add: Provision for income taxes 9 10 8 3 31 12 17 13 87 129 16 10 18 45
Add: Other expense (income), net 4 3 3 6 15 2 2 4 6 14 2 7 2 10
Add: Stock-based compensation 19 23 22 22 85 19 28 26 25 96 29 31 29 90
Add: Amortization of intangible assets 8 8 8 8 32 8 8 8 8 32 8 8 8 24
Add: Depreciation (2) 16 17 18 18 69 19 19 19 21 79 20 21 20 61
Adjusted EBITDA (Non-GAAP) (3) $85 $95 $114 $58 $352 $73 $101 $95 $63 $331 $80 $109 $146 $335
The Company believes that non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enables comparison of financial results between periods where certain items may vary independent of business performance,
and allow for greater transparency with respect to key metrics used by management in operating and analyzing our business.
(1) Includes a provision for income tax related to the 2017 Tax Act of $2 million during the three months ended September 30, 2018, a benefit for income taxes related to the 2017 Tax Act of $5 million during the three months ended June 30, 2018, and a provision for income taxes related to
the 2017 Tax Act of $5 million and $73 million during the three months ended March 31, 2018 and December 31, 2017, respectively. Such amounts include an estimated 2017 Tax Act transition tax expense of $2 million for the three months ended September 30, 2018, a transition tax
benefit of $5 million for the three months ended June 30, 2018, and transition tax expense of $5 million and $67 million fo r the three months ended March 31, 2018 and December 31, 2017, respectively, as well as $6 million expense related to the remeasurement of deferred taxes for
the three months ended December 31, 2017.
(2) Depreciation. Includes internal use software and website development amortization.
(3) Adjusted EBITDA. A non-GAAP measure which is defined as net income (loss) plus: (i) provision for income taxes; (ii) other income (expense), net; (iii) depreciation of property and equipment, including amortization of internal use software and website development; (iv) amortization of
intangible assets; (v) stock-based compensation and other stock-settled obligations; (vi) goodwill, long-lived asset and intangible asset impairments; and (vii) other non-recurring expenses and income. These items are excluded from our Adjusted EBITDA measure because these items
are noncash in nature, or because the amount is not driven by core operating results and renders comparisons with prior periods less meaningful. Adjusted EBITDA is our segment profit measure and a key measure used by our management and board of directo rs to understand and
evaluate the operating performance of our business and on which internal budgets and forecasts are based and approved. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business.
Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors and allows for another useful comparison of our performance with our
historical results from prior periods.You can also read
