TRIP - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and welcome to TripAdvisor's First Quarter 2018 Earnings Conference Call.

As a reminder, this conference call is being recorded. At this time, I would like to turn the conference call over to TripAdvisor's President of Investor Relations, Mr. Will Lyons. Please go ahead.

Will Lyons

Amanda. Thanks, and call. everyone, to welcome morning, our Good

release. on Joining our find of financial after CFO, discussed are our the Steve Investor XXXX market remarks to located non-GAAP our CEO; the and Kaufer, our comparable release, earnings call. QX measures financial Ernst our ir.tripadvisor.com. we Relations and measures me made on reconciliations GAAP distributed available prepared today this close, filed We at Teunissen. In website Last most night, will you

You financial non-GAAP will well which financial information, measures performance as other find call, also supplemental includes discussed certain on as metrics. this

XXXX. concerning cause begin, before from we disclaims update questions. as to as to statements represent for the I'd our filings may call with the thoughts pass share our any remind to statements. differ Steve, other up that these to events materially or call reflect estimates to SEC, open the to call who'll and X, forward-looking could a refer Before management's factors of you information circumstances. TripAdvisor that these now, I'll results this few earnings as Please statements obligation release, we that like to And forward-looking views future contain May your well actual today,

Stephen Kaufer

long-term morning, Thank hold taking initiatives. are our strong well you, and we've pleased growth We're preserve we're good Will, EBITDA our near-term start on taken and with everyone. to to XXXX. progressing Steps

sharing differentiated a our dreaming, value the a phases have in proposition travel rich audience and brand, trip. booking, We position the global of in-destination planning, the and with ecosystem competitive size, our in

ready quarters and traffic your our for questions. that plans excited evidenced influence intro, ahead. I in overall travel Our years the about as are to and grow, Ernst we're and brief With for by continued our growth continues the

Operator

you. Thank

Bank. Our of first of from the Lloyd comes Deutsche question line Walmsley

open. line Your is

Lloyd Walmsley

have I I if a Thanks. Hi. couple can.

the per environment desktop and kind year can offset? you back on hotel cut largely secondly, impact self-help shopper about just were the talk shopper. just TV, you explain that with to it how changes should And spend wondering Was the which How see a maybe of if last excluding For spend such then improves an the of the to guess, that on growth, Can the monetization by revenue guys that Was like versus about costs to limited we channels? on from the able the TV inefficient? starters, economics of Thanks. in growth? just it redesign driven direct of some those came upside of you extent XQ? magnitude marketing forward extent a and you revenue I the going it lot looked that was into think what particularly improved bidding unit to direct ex-TV, marketing this to

Ernst J. Teunissen

Lloyd. to there on. generally The that's within auction strong you, and a of our Good start is zooming had core business expectations. We is performance Thank This overall ahead Hotel your question the Ernst. morning. where was Yes, our it year TA indeed.

different the components. through go let's so, And

fact, further said mostly On The year. year-over-year of the stabilized RPS QX, was RPS the saw we QX. QX, the auction bid-downs we was into clearly into seen stabilization QX last earlier into negative, call, driven side, as on in – our much performance had we previous and in by on

headwind the had an of a half but what year-over-year, So, back incremental at to seen not last to compared that headwind was year. we the

as RPS is RPS year-on-year a that's to self-help. you well so But we negative as performance, the our then mobile. as shift in is, saw some on And positive which call,

initiatives our incremental performance the we've from TV. of positive seeing site, as results both are our as we the well on undertaken So,

as well. see we good so, there news And some

So, it was a give-and-take elements. on both

our with there. pleased were progress we generally very So,

TV, In reduction of increase spent didn't significant our million sales of spend. TV marketing, on before. terms of We we the direct $XX spend, our of an but which reduction and spend online

that As you growth pointed out the in to environment. us was flat – shopper shopper pleasing

So, an from on reduced the one hand from marketing, positive in as we impact there believe spend on TV the you see impact well. online

net-net, so out But way auction. the it pleased were And did. worked with hotel of our overall, that performance it we core

Lloyd Walmsley

and sneak if Okay, great. I And Steve. can more, one maybe for

sponsored see lot like you out market, a the guys look at ads impressions rolling a activity. and for should how example, many we how very think of you If healthy are hotel three placement about back with you revenue shopper new successful? stepping per as get the in do if ad percent rates? you that maybe And hotel product's a where years and guys unit click-through kind of of

Stephen Kaufer

talking aren't Lloyd, that and a a takes product love hoteliers traffic to always make being of influence yet who a I in they're about has fact ready is great new fact thanks our all all placements, to is but is it TripAdvisor a been restaurateurs to appealing there question. for to going lot It lot sponsor advantage the us. where site, purchase, because and used It's of travelers on globally. Well, stay. a of

the purchase restaurateurs for able for where our to is and so, a they're and obviously to And influence going where eat prior stay, going be travelers. helpful well hoteliers to clients, great to they're to to our the benefit

different which I not right – may be is some certainly, as most it see want a for appear at want and for the I pages, find what You'll in hotel every I'm so looking for page, to as looking when sponsored a well cross-sells list property to call the look I'm something out the and option. me, we particular different on in hotel placements city nearby,

of be build those like presenting as just out we're featured ad for that are clients sponsor right candidates going listing. placements, and any all product good the hoteliers, we getting so, at sponsored better And with more much in hotel to

rate hotel that click-through on the go will So, up.

on given phone the on on and hundred couple of is The site desktop. think safe hotel plenty the equally So, it's of fairly I say shoppers. have we to million the applicable traffic product

subject widest not clients it's kind also a want discovered. not just and valuable properties ones, any that our of make of big shift but of headwind mobile challenge to they're range individual to for the that to OTAs, it's particularly So, sure our

terms think of – quite quarters. right but in we want business hotels potential, where launched has early at now, it it could years category. independent sign in of a hotel the be particularly out growth because mean, think end to I it just I not very we, question for you're just it at last where could modeling we're we meaningful But in of you anything wonderful kind of the else be three the We that obviously, we're large. looking It's In year is at beginning. just put – it do think glad and I'm everything you I doing of the

Lloyd Walmsley

Thanks, guys.

Stephen Kaufer

Thank you.

Operator

you. Thank

James. Our next of question Patterson comes from Raymond the of line Justin

open. Your line is

Justin T. Patterson

you can could there that revenue? the you. about much. in that in solid Is you secondly, on had more the based some easing a half point or factors and of just about but improvement there, factors could other click any are second then the Great. Could see behind you Non-Hotel simply Thank operational talk more factors to? the supply you in segment comps, function you drove very detail us talk And Thank some curious growth acceleration detail? I the there.

Stephen Kaufer

I'll is Steve, the so drivers. Non-Hotel This take Sure.

in that. segments experiences So are we've rolling restaurants as shared, other of primarily bigger

on that's we think and growth we we more we that that awesome, capabilities. to attractions, site, when come supply our because and take corresponding a For the just demand as that We're important growth to we to demand. supply this supply we There's revenue to experiences, tours, numbers, of because in demand bring type it into the have continue. experiences necessarily already the the have Trip as we have, already able online lot so lens forward monetize and turn we're immediately view of is look through a see operators' able many better that can on without advantage pretty transaction the jump

our direct adds experiences engine better everything particularly attractions of tour channels, So, also than else. our label obviously, grow or all is white markets to software along with to the faster relationships Restaurants, almost news forward across Viator frictionless with about better destination same, more pure continue the to QX able is deliver growth doing the last really some having seamless, a operators. the be our across and in when latest we come Vulcan, seated stability in software-as-a-service good minute, excited, going more to which your and in improved in. us but by supply for you're open as the you diners, availability space, comes that for We're TripAdvisor experience that we're point-of-sales, inventory not available, and and the which a of of to course, of business kind thing of help having business experience – from can the our more to operators it's traveler that phone all acquisition good see well our talk

Ernst J. Teunissen

To the the of first your half year. second versus the half will and second in we auction second the second CPCs, about saw of so we question the some in half the last half – in so bid lap downs

to the of be a comparison year. is that going year-over-year So half the favorable front versus

year. is things too and other know, pulling you the that we back will throughout there as Some marketing, to are on consider continue

well as And later is the to the we a last that bid half year euro, our currencies called of don't the auction, the get in half we one the in help factor of lap the the performance when components at in year So that will most back year. then if either. not and year-over-year dollar the that the less necessarily But absolutely of we as and the in second is of statement we FX downs of you're correct QX pound change against the significant out year. saw the of a

Justin T. Patterson

you, Thank you, Got it. Steve. Ernst. Thank

Operator

Thank you.

of Our line of the comes from next Deepak Mathivanan Barclays. question

open. is line Your

Deepak Mathivanan

Hey, Two guys. on good a quarter. questions me. for Congrats

OTAs on Can improvements on XQ go to expect last by second then shopper starting to due to hotel the monetization per up as XX% mobile tougher we revenue improve of year. you XQ. in bid first, some of efficiencies. But efforts So downs mobile continuous in made are comps going OTAs all again question, see your in And improvements one called saying you are forward? we was peers out to And XQ. metasearch kind again continue

However, be any can OTAs? XQ. an Thanks. not, that improving might trend seeing you the platform in bidding Can you whether why maybe discuss on activity case? explain you changes the noted If by you're

Stephen Kaufer

the yes, Yes, to of shopper and take improvements. mobile to per second. been then many we've of continue rev of expect mobile Happy site Ernst let And part improve Super. or led making the conversion on take initial the that I'll our first mobile to to we see optimizations release. by ongoing quarters' one, worth in either because all experience a the part are as

So, things improvements, TripAdvisor's which travelers book we phone, that for is their We traffic our getting for on independent platforms. more device. will out clients, teams out, have on more are more more to there's used on have point of to the traffic. I more bookings two on rolled to qualified of able qualified that means tendency part means and those we of traffic that sort our fully to expect means More continue. they're pay buying get action, work downstream for while that of a that all obviously that

continued continue be – the expect will me would secular in I So, leading to the tailwind to our category, ongoing up for just on phone. us go confidence my our to RPS an that that

Ernst J. Teunissen

saw behavior in continuation to our environment of a real in months Deepak, a in saw that second starting we QX. into QX. a that our We core called in remarks, ago. stability the our saw hotel We out auction, said QX continuation question stability the in auction as saw in as We had we we And about QX. your of prepared three

we largely the stable. as environment saw So

But downstream We the continuing partners making possible on our to on our our by the and continue year to has that as throughout really to work it traffic on the comes. impact continue for experience on have stability for attractive since focus site as our we as seen was for will work basically through what partners, traffic the we QX. users our that

Deepak Mathivanan

Great. Thanks, Steve. Thanks, Ernst.

Stephen Kaufer

Thank you.

Operator

you. Thank

line the Piper of is of Olson next Your Jaffray. Mike from question

line open. is Your

Michael J. Olson

you And more in growth. And many in then you realize, good like? lastly, you're still restaurants the mid-XXs this of it's I a going over have probably the Hey, than in that's the Thanks. you it few I for experiences feel XX% seeing the the are Do case And like competitive next long-term standpoint then, becoming talked and Non-Hotel. XX% that quarters? business question what markets to of operating? morning. be segment's to margins That think from on people what look about that could looks revenue year. one material past

Ernst J. Teunissen

Yes.

performance. outlook of But continuation past Non-Hotel So bit and it businesses, before. growing was continued and strong towards that restaurant a the of in those faster parts strongest seen segment, as course really we've was experience Non-Hotel attractions to for a there be on a the we our remains year year. It's in going There's growth that our view, in shift a trends throughout. mix last this particular, similar It's quarter, quarters in our of have and to, of growth going is restaurants. many the of robust what seen

there. start performance, good year, the good growth so and And forward continued looking to to

profiles. have all margin businesses that some XX very are of take last of long-term the scalable, good have cost and structures margin They that of cost really in have attractive the structure come of we've margin through terms months. In scalability the seen over those They rates. profile,

we can XXs% so, are a term to And mid-to-high and there. we to Non-Hotel We margins the be going the to EBITDA margins the confident these past said for over businesses are expect that, that business that. long reach whole high in go contributor significant to we

healthy So, we very P&Ls. most see the

Stephen Kaufer

for and competitor the that then when buy experience tremendous offline to we experiences hotels think we a It's to Group tailwinds saying from that have I I'm the have to up, have can get the the Media to, demand awareness perspective, us our TripAdvisor I of people price, have buy online. shop a it's competitive now. looking huge going booking And to to go. that call to there. travelers I'm to natural now And these book, think going make Well, And is should I of happen And as of get find for online. because you're course, going best just biggest I the just around, a reservation. capabilities. best lack to we and what doing to happens – amount experience then decades it didn't simply

the competitors, it's growing we next – over that who that pie us of So, is online, have we've And several we selling it's again, into in that's the the tapping view left, have. the than certainly are been booked versus that while much the size my demand years. opportunity them, experiences total online huge

Michael J. Olson

you. Thank

Operator

Thank you.

the line RBC from Mark of of is question Markets. Capital next Our Mahaney

Your line is open.

Mark Mahaney

Two questions please.

inventory. increasing You talked about your attractions

of to in grow growing take in actually year, half what start the is provide actually I think there the have the segment for it the back was in details inventory something have like XX% growth. Could growing you then, types be would experiences on – What some specifically And could terms others? again? than flip or XXXX? revenue and outlook of in in to that's faster for to particular change of you Hotel rising, the attractions Thanks. would that what year order actually inventory

Stephen Kaufer

second. from I'll inventory we're Thanks, Ernst, really first the that, marketplace. the the types Sure. will and take benefiting On take Mark.

alternative view sales demand is we we target a with so great demand coming demand owners. much reps, lot as big fill to go and possible the a of the account the have on for the advance. managers is awareness channel opportunity from growing into travelers TripAdvisor, A specifically, Viator So, that our where as and the is to the as experience our book of for TripAdvisor in growth

in So, they're simply up. signing coming and

rate making much years get are because out that because believe there, possible So, always continue all that for the XX+% for whole demand level travelers. growth there's to supply of more of have process we our come, most bunch many tech we that and the providing we so have because under in covers to investments a around and the choice

Ernst J. Teunissen

Mark. And to your second part question, of the

of traffic. improvements terms hotel for internally working business and are things of back so of looking the so the the site on partners In the improvement experience the in for year, our on thereby the are our levers to and the our our users towards overall half we that the to Hotel

out. we'll of work mobile a continue both progress. and that on see initiatives We them we're the in that quarter talked and number continued to to desktop expecting some about have on the this rolling and We've of side

more TV $XXX On to year million the $XXX this investing million. year we're side, last so than

We are seeing nice traction on TV.

So, continue and that we it's to still we and we that ROI quarter, a can that to improvements that not confident positive to get can see the there but hopeful spend in we're long-term the profitability. see the returns

campaigns go tweak the we looking we're as success forward. So, ability to our and that of those those and at

focused the success and our work on of drivers on and that we're So, extent back some those the impact are are will to biggest to revenue. half internally continue there the we that on in successful

Mark Mahaney

Steve. Ernst. Thank you, Thank you,

Operator

you. Thank

Our & next Kevin Kopelman Cowen from question of the is line of Company.

Your line is open.

Kevin Kopelman

a what about more had attractions accelerated trends, I question specifically how Thanks. supply? you be attractions you seeing And has this then talk financials in also as year? talk on kind the and bookings, growth will that the integrated can you that are about And on attractions. Bokun you deal of accelerated the benefit Can deal have bookings also Thanks. more any will and business? the impact and

Ernst J. Teunissen

saw XX% Non-Hotel, contributor business the that part growth business So, at our high in being and that. first important can to – imagine, Non-Hotel Yes. impressive on of a question. large level to the segment start as in being overall a experiences We you very our

is So well. created continued that revenue by as growth growth of bookings kind

revenue that. growth significantly is particularly for The we're very imply ahead So, would excited kind internally. – Non-Hotel of and of our growth of is overall side we saw revenue continued nice TA about performance impressive and on growth something, on bookings, the which ahead

that the platform, us exciting ultimately us platform long-term to strategically for in scalable platform our most TA that's the that is experiences business. so for us because And

We a us conversion so opportunity have experiences also much and to attractive is question? users our for TA to to acquire. Bokun want already a our continue tackle able many site very don't huge continue opportunity already and we so have there, you on on have traffic the on Steve, we because pages there, that penetration economically additionally do

Stephen Kaufer

Yeah.

a the to of inventory can still company, so business any companies online that able run experience the aren't – still that this lot bring have them don't new also software with deliver because many help So their we're helps online bookability. more

obviously, So, all Bokun Point around. two, welcome a be meaningfulness great that find done it. And is that's bring for should XXXX it software so are fold. book the win-win point have the making them just trip, affordable part into owners. helps a it's family, the we're our of that to or Bokun company. it online third-party attraction attraction for do channels want can you And globally on on And the inventory travelers with on it? the comment and that, and one our We Ernst, to the for they really Viator, we available make that entire owners. able easily to all of Make financial impact, ecosystem. very on

Ernst J. Teunissen

don't to our organically. of it's to going not we're on expect financials it's then year. acquisition going be Yes, And material this accelerate year for too to and big integrate that this an an numbers impact the Bokun, to

Kevin Kopelman

again? expect ads? And Thanks. ad it spend talking you Thank a do And to when on Non-Hotel grow Okay. follow-up. about start the to see to make TV you. attractions quick for sense then Does then start

Stephen Kaufer

reiterate want return To the we the hotels knows doing to I we're everyone we a great on just would much differentiation part that of and the top-line progress my hotels. I part be than tip question. the of fact want to sure clear, to have that all system helping is more – my entire TripAdvisor we that's tip about expect is tip love my and travel to when growth. there. make And of that. we the trip But the hat our will TripAdvisor So, on – in But of you part great that. awareness hands of and showing be ecosystem hat we that in

our And other so, in that things assume that should for ways such and attractions grow marketing reasonably TV. of we as one our other businesses, work will

not more not I'm the setting but So, that giving if. matter it's a when a you expectation certainly of particular timeframe

Kevin Kopelman

Thanks, Ernst. Steve. Thanks,

Stephen Kaufer

Thank you.

Operator

Thank you.

JPMorgan. from next Our Douglas of of line is question the Anmuth

is line open. Your

Dae K. Lee

morning. Good Dae is This Doug. for on Lee

And how And reviews with you best plan price, do and any more your the could question, feedbacks the there? brand value user on markets First letter? you've to could follow-up, around you entered campaign? balance you what doing experience ramp building around holistic and details proposition you are new more that in your to what early as you you as end-user mentioned message you're seeing a share provide

Stephen Kaufer

Sure.

on to awareness community, people of trip. surprising in engines use plan have So, of that almost the understand around the also the best world every comparison we trusted reviews, brand didn't one country number have tremendous topic price we of But TripAdvisor a of the always there. out

individual So do core to not know, our seen awareness And of with. price, spend. to at working. we that to We've driving a looking looking or better place ads price I that hotel last you own increased do is positive best our your perfect did slightly between, to spend hotel increased results. the year. hotel our for trade-offs only is that you if running the is compare And am $XX place your an not? We're find compare, And TripAdvisor message that willing we're a as extra the best price you're it's best the message if well, We've it. TripAdvisor to TV for deals. know, but you're the

trusted do as certainly site only but forward, it's for that and message I'm the plan their no TripAdvisor or indications eat. our come consumer be offers the about about holistic at. on that search, saying a is with we want that'll to we've what today move working the to Details now. hurting they any people, search, starting it's think strategy we need to travel think indications many started us user experience. brand what that working, So saying found and a review in not end-to-end flight that awareness course, hotel I'm might haven't or going you they of to in they Well, destination, seen piece so of the if

during some is that advance, some is trip, in traveling. And the of of of is some that it well armchair

an many kind it's it's this of segments. experience – this it will planning of course, that that And that and of The talked on that our you hard/impossible because so anywhere and is ongoing of end-to-end are travel we do work TripAdvisor some so touching it's that the stream. have It's really continue, then can all differentiated to now. that we see been want all about core tools in planning, else. highlight users you We feature site do ongoing, a to really of

the we say So we across Core of internally, to more drive everything longer. shopping of yet, for the functionality that, yet, haven't that kind point-of-sale suspense haven't than But the to sum experience, the and Experience on that the more dedicated then sum I'll will help we than we that it's business user providing newer launched the an a talked you experience call we about is unit have on bit individual keep on the experience have TripAdvisor parts. in as of that some a common working of

Dae K. Lee

you. Thank

Operator

you. Thank

of line the Khan comes Our next question from of SunTrust. Naved

is Your line open.

Naved Khan

the then, from a or And Thanks to Europe? rollout line, this can stream sort should other from impact if Hi. showing is the regulation give it us the under on part this you a on your all, commentary display terms as of up of lines clarify, of us a you getting expect, Can give sponsored the just sense we you're products? And contribution revenue of Yeah. at magnitude what in is well? GDPR, lot. of in of

Ernst J. Teunissen

line year-over-year. is not, line take sponsor called It revenue not I'll the of grand quarter in line, in the and the line revenue of question. was Naved. things, large so are part part the contributor the Hi, – revenue in placements a within a It revenue our of first this subscriptions, segment. It material. our scheme growth that it's display not the that to Hotel of yet. But particularly part is second

for ambitious as have, we We have before, Steve long-term. the plans talking was

will results, material it progress, QX in and So particularly number. a we meaningful not become more our as but more

Stephen Kaufer

obviously, the a like at companies, And don't for meaningful expect we've then point. so GDPR, business quite our some most this aware a impact it been time, we of on

Naved Khan

Thank Ernst. Thank Steve. you, you,

Operator

Thank you.

question is from of Brad Erickson the KeyBanc. Your line next of

open. line is Your

Brad Erickson

Thanks. Hi.

follow-ups. Just a couple

even contemplated bit relatively a absolutely spend you So is the do it safe you that, allow ad think sustainable in growth? on growth clearly can guess, relative if degree little And, is the a spending target enhancements How that the ask more depressed? differently, I throttle remains little is a your for double-digit of I of revenue some say Or having some optimization product ad do shopper to and to shopper you line. the guess nice growth? impact shopper balance bottom it to that hotel to growth

Stephen Kaufer

Yeah.

to which the about. traffic we've our core of shopper our the spend. kind helps think and us performance television So, and cards. Again, the shoppers I quality site do therefore, But up returning throttled most that more spend, some we hotel is of to Because better qualified more in growth care that drive shoppers Why? ramped we've the site. will also downstream the more bookings, thing drive to

shoppers. and hotel as our moments still of things with revenue more hotel experience, the out grow the helps reiterate engaged improvements for looking of to which more Ex turn business aim ago hotel a people I some get changes. overall membership, a unit more few was referring shoppers travel certainly more definition we've usage our overall in I obviously coming So, to product. in done Core and growth we're complete are that That build The drives which drives the by funnel, in

use are, to to feel trip. their of large plenty to have still As trying we as there's TripAdvisor more people we room plan

Brad Erickson

data, you've think some to as from result you've some that is optimization? that Thanks. you're been I your what kind talk with a that about performance this just while of getting then, how And downstream and for it. data of a utilizing Got do of seeing some to anything ad of changes Can made have you customers.

Stephen Kaufer

question. insightful Yes,

be looking behavior how say to travelers we're partner we qualified. our the relatively partners that on-site have in the bookings – more us side, latter. all, shopping if data easy wanted our on we simple experience sure many And as to pulling been mix make receiving our hey A, a I'll they're you of It's we example the more click for can essentially just side to of of us are raw because about So, whether to clients to not to as would revenue have click very that to of in the give them is says, our much, bookings. very into old signal click and hotel have to on us, without change our for turned sell A that downstream the that and just it it's from traffic more this more B, the signal here which performance clear, that that acquisition partners B. necessarily click very first the their send but generated give all we clicks model clicks, generating than loud more understand less partner traveler it's bookings We traffic is We says valuable they room. our drive, helping for turn the generate hotel wasn't right them. here

looking we the our course increases our send will on our of and more And bookings the bookings, site them making up. over hold purchase so, is what before if understand go sure client They qualified. That CPCs client by side, our to the traveler on site. they're increase to

Ernst J. Teunissen

and and behavior that found performance, a kind is is with it addressing that less click-based better but particularly into booking on the pressure is of downstream ROS for the which that that on if reduction And marketing from the the on bookings, a the that of spend, a we downstream positive. revenue profitability, it's some spend a pressure improvement bit so have good marketing an booking an on of a and marketing – we're lesser of number in profitability to our what on perspective, looked connect means we spend dot the good insight looked spend,

Brad Erickson

That's Got great. Thanks. it.

Operator

Thank you.

is Our Peter question of Fargo of line the next Wells Securities. from Stabler

is Your line open.

Robert James Coolbrith

I is you're core then experience. also Is if you that is just On This follow-up anything so, maybe if vacation sense And how wondering Non-Hotel the point? how or Thank on you. the of are this growing, been seeing attach already. fast is for morning. of product kind excluding Peter. in a cross-sell wondering, doing, Rob be? vacation rentals rentals, there's that on there a may a at if lift there benefit give Good call was or relevant you business metrics wherever rates, and testing, what

Ernst J. Teunissen

It's it's rentals site But on Non-Hotel, I'll part driven business. brands restaurant in only a have the we about a our on one that We business strategically rentals, growth with making grow, start benefit focused business. first our that's not it the in from think of are drivers is margins. business and areas as business our business. with good to of question our available and rentals we is as the business so really the that experiences experiences us. us. for the but good business a restaurants well, supply various The investing of of TripAdvisor good which the benefit is we for It by stable we on for not from all us

Stephen Kaufer

improvements, kind very it at And is of Core again, some then just some when the we foundational. Ex look of of

carefully You'd all our have verticals. it on to to consistent of more like the site. It's across look see different becoming

one course our CRM, the revenue optimization our we're site, and And it's journey part making with the it in smarter cross-sell the make or it smarter availability. a – across, the is some app, hotel we than want site other time so them emails, on all user our again, lose sure at them, a have given of of to of just of let's don't have doesn't Some sending to who's a putting front a product what We when times year. let's we're offer recommendations that that that we our small and the right see a individual a all happen month, more we're wins they add I'd optimization. the things just they're respect them notifications, wins and recommendations, as make paint traveler company. the And up several call a better and there. relatively we right meaningful that's and our message over

Robert James Coolbrith

you. Thank Great.

Operator

Thank you.

Our line Mizuho question the James of next comes Securities. from Lee of

line Your open. is

James Lee

prefer say as improvement question. optimization is will you strategy more you fair year? on the lastly it? investing my also, up, to advertising would you're RPS Is your Or advertising due what ramping taking – how to focusing way the the you on start the that maybe retargeting should advertising focusing in And think as prospecting be for is also performance shoppers? growing Thanks. And do it to Thanks point where about this prospecting? to for you opposed new maybe start at start TV hotel market TV we potentially

Stephen Kaufer

of I'll try those. Sure. hit all to

a retargeting it's a advertising, part our but of So, is of while. been way course, for that performance-based

ramping TV last we we more markets, year count smaller I the success RPS launched an of and buying was about. I'd as on versus markets, signal downstream or because a The wouldn't return So, straight new there the improvement but – set spending was terms at also a when say than the talking much spend. looking six, TV saw in advertising, much a our is of been. closer into component there our we're the additional we're our we're click expanding growth and retargeting But top similar we it when because ad obviously expect continuing bookings has Ernst bigger curve in in say

build. will a now, So the to ago now. year the you'd markets started right of TV And we're all the having expect. curves receiving The benefit a some almost what little newer take longer of are

James Lee

would it and also success instant benefit allow I'm you most bookings be ramping more faster you help would increase have curious your Does drive one just talk if the it that attractions the major to terms specifically? listings to about bookable important on of the do in attraction Thanks. yourself? of the on up Bokun benefit than otherwise can you a lot Steve, you acquisition?

Stephen Kaufer

things business just that Experiences we're the our it one think of to unit. doing things as invest heavily of I Well – one in of the many

an supply international tours from and sure our So, of attraction in we're initiative. our can as from kind be We've easier. any many other that attractions partner, That's got any the initiatives, direct much aggregator, through making or making possible. languages onboarding as booked

technology to the who of conversion optimizations eventually supply we make ongoing have consumer they a go course, easier it's monetize whether then their helps fill go on will if and help level thousands enabling of the the in traveler through sooner. have faster it book Bokun initiative on can online, of booking online lot longer-term online, but this experiences, and Viator And TripAdvisor because convenience. through find – wins our or additional to in-destination, what help TripAdvisor have ideally And both and suppliers helping them and going of they're it. and great the you're that advance tours those We they're for looking

number again, help that so in helping And which trend, everyone a and there's we attractions and players particular we accelerate can online else help go category. the of in space overall feel that attractions will us

James Lee

Thanks. Great.

Operator

Thank you.

Oppenheimer. of line the from of comes Kelly Jed question next Our

line is Your open.

Jed Kelly

question. my taking for Thanks Great.

patterns, of And marketing in should segment? two. experiences to percentage versus we expect grow should how should view the a becomes we similar Non-Hotel, How Just Non-Hotel Non-Hotel as the seasonality seasonality we revenue? then year or expect direct this larger

Ernst J. Teunissen

Yeah.

year. our a is how significantly last year, approached in marketing Non-Hotel So, not break for increasing. higher and with significant marketing we than It's Non-Hotel last

year a out in last difference versus terms So there call not this of much year. to of

little a in so that In is, our both so business revenue, is by attractions years, as bit impacts also seasonal, have Hotel the little rental Non-Hotel than not our you terms but businesses. more much of other a business. is past The of particularly seasonal more seen in driven two particular, seasonal. the itself is the business but businesses it's the a bit profit a vacation which – but seasonal, profile is as more It our seasonality, business, restaurant business

Jed Kelly

Thank you.

Operator

you. Thank

Our May line of Citi. question from the comes next of Mark

open. Your is line

Zachary Morrissey

Hi. This Mark. is Zach Two actually questions. on for

a Thanks. secondly, to plans Bokun you of, of online are attractions last month. some Just you the kind you your have of, talk larger I But then investments that guess, what for OTAs will there? could opportunities that stabilize? further kind rationalize the guess, continuing do it And to in seeing direct about appears Obviously, of, are I spend. sense marketing when their start space?

Ernst J. Teunissen

Yeah. Thank Zach. you,

graph bookable the the saw invest In attractions where we our the remarks terms supply. of our in side, experiences prepared areas side, you the on about

site. site, the big and a Both, site. sure TripAdvisor Viator there's making particularly is focus also supply on more So, that but our on more bookable the

sure the big and more we focus of already. making a that in area, we that's audience more to put So supply have front large have

to into Bokun a the up big product marketing another around forward. there. and our opening which non-english speaking area from in is well. more revenue make sure year as is this going continuing non-english underlying in speaking still we opportunity see sites, investment investments Obviously, incremental coming where making have and it And have our our a skews We sites, where new we of example business international, that

there's invest the in So, experience plenty to side. on

improved the we've margins our before, experiences fact Non-Hotel us on of we've holding on back that As the said investing a side. in is not reflection

business revenue ahead. full the term. growth for fully And long is going are focused driving the speed We on

to Hotel shifting so Then your where business particularly that's And business and again, and auction core question our our performance then focus terms – rationalizing OTA behavior our spend. of in is. to shifting

we've of As previous some half the said, year. last of quarters, in we that back in yes, did see

As We in we we prepared and said happened our in saw stabilization QX. stabilization call on this and quarter into remarks, that further into this saw QX.

more end So report not much that to on from our front.

Zachary Morrissey

you. Thank

Operator

you. Thank

Jefferies. the Your from next Brian Fitzgerald question of is line of

Your line open. is

Brian P. Fitzgerald

to but dynamic to out ago relative closure why per that nicely, remains to today? a Or there maybe, was a to year guys. how of kind hotel still call gap or reasons there. with gap? any shopper respect fundamental gap Revenue of convergence a Thanks, improve There's continues Thanks. big

Ernst J. Teunissen

Yeah.

desktop the we And been So, gap to I referring particularly mobile. closing gap. to assume you're have that

clearly, mobile RPS So, year-over-year, we where XX%-plus improvement this desktop, the on out was called down. quarter

year And we gap over The XX are last narrowing about had so, so or points. gap. the narrowed the by

a we close are XX% to year closer mobile desktop, were we monetization to of So, now XX%. ago the to and

model. on hard narrows, economic abate, work on narrows, to and continue starts our ticking mobile to number time, an the we every of up that part RPS is that sure the obviously, and making to gap impact shift that important our as has so the And that is gap

it this not going second we're been then at at – of look has the some be to looking as year we in the and past. – at a point where the is year as the important the forward So, mobile half point as bid-downs headwind actually of and very into beyond, the at shift point back crossover lapping the much the

And so, improvement on seen you've we side. mobile focused the we made that that, on the are very

us. there improvements ahead runway of make some to continue see and We

Brian P. Fitzgerald

Thanks, Great. Ernst.

Operator

you. Thank

next question of line Goldman Sachs. comes Heath from Terry of Our the

mute. pardon And remarks. I'm questions. the At open. is And Kaufer, showing might CEO, for back to turn I'd conference on be me, over closing line phone time, further your Mr. Your no like to this Steve

Stephen Kaufer

hard around forward Well, the again, off want to look to work. the great. months. world XXXX is Media Thanks, all for few joining on employees Thanks the a start, thank call. everyone. for you everyone, to their next updating and our I Group continued TripAdvisor I in progress good

Operator

conclude program. does your you Ladies in and conference. for the today's thank participation gentlemen, This

disconnect. great day. have may now a Everyone, You

Tripadvisor (TRIP) 9 May 182018 Q1 Earnings call transcript