TRIP - Earnings call transcript Q1 2019

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Operator

Good morning, and welcome to TripAdvisor's First Quarter 2019 Earnings Conference Call.

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

Will Lyons

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

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

You certain new will XXXX on and which as also find our supplemental other and reporting segment financial this non-GAAP information includes as results XXXX under metrics. well discussed financial quarter structure by measures performance call

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

will call Steve share thoughts here's open few the who Now, we up before questions. your to a

Steve Kaufer

let’s everyone. areas we’re year call track in And investing to to Will, deliver this and up our unique remarks you, night, key on that, remain growth were summarize last our profitable QX EBITDA and from double-digit Thank drive results good growth. assets To morning, for several the We prepared our adjusted with with in expectations. leveraging line questions. long-term and open consolidated

Operator

Instructions]. [Operator sir. you, Thank

from go first ahead. comes Please Our Barclays. from Mathivanan question Deepak

Deepak Mathivanan

the Thanks ones. quick for guys. Two questions. Hi, taking

restaurant that markets international comps FX to you was your partners cautious of And elaborate or like tougher. you seeing question auction So you macro you’re are in environment? markets that second can pricing is It on cautious is because also partners certain from the then pretty platform XQ Are terms referrals demand a XQ the first, auction due on the in lower, deliver lower and were international trends to can side. certain in seems maybe in because experiences meaningful on comment? shift dynamics you on in

up and periods? can business easing XQ comps XQ, those expect to that As so in we during much. Thanks accelerate

Ernst Teunissen

your Deepak. take two questions. Thanks, is Ernst. This I’ll

First a the have, X% statement we The segment. that growth question our up question, with Platform actually but just the & auction X% to a quarter hotel new had year-over-year a was one We on delivered question Media you solid for level make here. Hotel, growth quarter optimization XX% making marketing efficiency impressive. growth which in platform call line of a we’re and And and quite revenue. continued continued the it progress EBITDA rate finding in is reflection now that media That’s of we for display we’re our year-over-year. sort the

pretty that result a we’re with. very overall pleased solid So

We’re year know, points resetting a margin, before. on delivered of We percentage this profitability trajectory, you XX up the business. EBITDA from of the XX% the as

pretty, we development. So pretty is that healthy a think

softer. the U.S. quarter, expectations broadly line actually our much about international revenue Europe deeper that Yes, disclosed report bit which auction into with was a more of the is there. comments sort pretty then So was little a Hotels. we line the and of some within component made first TripAdvisor-branded called much in for digging But question not segment little to now we a

yes, that some The and I we’ve various into I and comments, seen talked other QX comments think in there softness and we about made enough about have participants overall QX. been to about. not markets result the Not there. UK the deliver many entered solid France industry QX

a saw in our that robust We year little our didn’t which slower we saw we April We we was the so trends. seasonally than quarter a under business. is pickup QX have up belt. see a expected, of in month ramp some earlier. our And we first continuation hotel

cautious expecting a And around especially the just second international. up in quarter. in we so look our year in second from half We the growth hotel to are if And wanted earlier the of in you half not the still growth improvement our for growth quarter, these points. that may little the are trends. we to of segment indicate second wanted again we’re QX, But we decelerate actually few that we set highlight a or

drag we’re which a two improving pullback currency, second doing, have to important in we’ve are is been that one little bit. the things a and is, comps up us marketing been lap We so has starting half. One easing is for the second the performance

very we with allowing outlook are of in and as So which us overall this year. underline in statement the growth profit have we significant happen half again, on highlighted down a we actually dining here XXXX QX, double-digit what’s cautionary continue while remain positive to a very, are which to trajectory we’re give investing significantly improvement experiences want to to the to make going this where segment pretty taking back about our to but year. about we the happy actually orientation is want I of that in the EBITDA it’s EBITDA And and of proud for in

to comments few QX the in the for about So and dynamics To auction and better that we’re dining, decel indicate experiences very your the the see of of points and just segment second half. some might outlook that’s about highlight different you questions in to a there. making

There’s quarterly last rates the XXXX. quarters we in in actually growth asked been you So QX, as well. this about lumpiness some highlighted

segment the we new reconciliation see that have in can disclosed. that You

QX for old more of in segment growth rates. 'XX. particularly growth You XXXX have and with our QX can non-hotel do see to that that rates have elevated reasons

you for two-year QX in if much rate look at a two-year So pretty stack QX, growth at, line. and in stacked instance, it’s in

you seated comps of It’s the deceleration growth perceived than saw of quarter is the underlying. diners, currency dragging a QX currency that some of bookings a in that saying in is which of to statistics underlying anything of us, number so there. to and highlighted reported QX. is so XXXX et a here and And we were year making we about terms so robust. in to cetera, we’re not see which XXXX factor this in growth terms in was And that’s do it’s helped much from This something to an in. factor is and another impact, which year those more

just would to a delivered XX% a if some favorable unfavorable it pretty from year. business year. year restaurants excited segment. and at from and but were trends the long-term growth this look business. far business continuing There last which generally a think delivering a and new We built a we this margin and very year our growing of that. we We as very and year acceleration segment suppressing look we’ve making at comp might tough for QX, that in forward the So terms as pointed OpEx much last leaning second large in QX. good build year. say that we growth so building much not is the as rate reasons. TA big look out have platform very for that One full But is may growth. lot two we’re platform I we’re of this revenue impressive which we’re TAM might in this to about about to make for also we you team And but look in for that building the overall, a little very in talked of year; that first as come what There’s see that of zero significantly, a I We out, leaning is we investments had grow last bit from we hit particular factors year. one, lower is at the this year, in Overall, in currency, we’re last

Deepak Mathivanan

Very helpful. Ernst. Thanks,

Operator

you. Thank

Walmsley Our Please Bank. ahead. from go next Lloyd from question Deutsche comes

Lloyd Walmsley

if can. Two I Thanks.

in this more And promote for Help on channel, Like half? TripAdvisor business news again you this strengthen in you’ll about of to and then that prospect more us can the and ways you or elaborate to a in units? kind you’re second that partners EBITDA in deploying be be further what First, guys going kind than that. ad line And think new think Media Thanks. of their like tied & extent Hotels, what to the of strategy is can that? the said of us with how on deploying this the to independent to marketing are Platform can how think of through understand in kind help I segment kind top square the notion the for position you grow the to start succeed better different – allow add secondly, will quoting. a that you forward feed on business

Steve Kaufer

Thanks, Lloyd. Steve environment, the purchasing the at very exploring question. the both to of platform The midst users for is as incredibly because vehicle it’s This well are like an a router, powerful looking advertisers TripAdvisor others is it’s a in they’re of demographics travel whole aren’t that as answer our exciting. safe travel. People

be sort a so or a fantastic environment. destination of or if it’s And it you a an provider a airline, travel are organization hotel marketing

of some resources resources, As pulled It’s this. we’re we doing into Hotels, investing & alluded advantage more to in changes Media to level the Platform internally take remarks, more segment. better senior that and

we success that media point it sure in come to way we growing the release some a that and in of in I’m to release. fruition growth it pieces bunch we units next TripAdvisor that the no to the we’ll how is that so But this tied be tied new have to groundwork will of this And expect usage the at piece the some year. of see certainly of year ecosystem. To ad of do business drive question laying year display had, to of is

users We in hundreds of millions, whole page have platform. billions views across of the

stuff segmenting target. ad Homepage on of different into feature this the are this between feel To demographics scratching we in done past marketing units the the lapping, TripAdvisor. growing more ads the said half, that XXXX. media enter done we the ad haven’t plus we capabilities unit, so tail we’ll improvements growth that of some we’re in But the be Ernst that other off as hoteliers ratings feel in segment good lapping can dynamic the plus our to surface. pullback nearly and our growth that as as still the doing in we’re second see the We’ve able in actual media some as done and to in we revenue we half strength the do the their at of the partners that year back that space of currency auction with in the sort question hotels the job different We nice a audience as terms year good could wish

set to dining be we’d well. the able revenue wouldn’t continue in we growth growth experiences, we’re seeing the that as Platform Hotels, Media but the like kind of profits & with So grow we segment expectations XXXX for off to to feel in and

Lloyd Walmsley

you, Thank Okay. Steve.

Operator

Thank you.

Our next comes James. question Patterson Please Raymond from go Justin from ahead.

Justin Patterson

back Thank cause and go And should spend How just on contribution that, then the unique growth as you was related quarter. to grow to like for a conversion Great. to brand that again? about please? Could customer might think revenue visitors you acceleration very we It versus this platform factors the about relationships. direct acquisition visitors ad display you performance unique the the wanted traffic vectors Ernst, you are how new and units And much. spend I thinking media a of Steve, of to question. quantify more going sounded factor simple played have on in some forward? that the housekeeping what to rates

Steve Kaufer

This I’ll acquisition the is one. take Steve. traffic

branding who believe what way to continue a the build offline we’ve still are driving educate great the we and site. we that in different capabilities our both proposition, booking trip attraction of also proposition the to towards to is attraction So TripAdvisor they’re the as that we’ve interested seen more And hotel. planning on in the as value all shoppers our travelers on TV some we’re value – TV as that have moved advertising and

different the So back pull markets the that to been really halo of it clearly, sort channel drives. across or To according a We’ll a the spend does. doing but the in Hotels, we pay be Media space grow foreseeable to that shrink that and channels, we for all will continue future. economics have Platform different creative continue We’ll our expanding big in pullback it’s as we company it to & of to effect can the nice do, does every profits maximize the people that business site. parts as campaigns

new spend happy always We’re pay to them. channels work, where they identify against and

right on having We’re join so more conversion on or a more to that apps TripAdvisor. improving TripAdvisor, reasons a they establishing things now traveler more audience much the more become our downloaded, focused bit the creating that site, loyal engage

them we’re the so new of position a like their and platform pull a I there, is to close the how we in at top buyback growth plan month a we’re news big look funnel any trip? question having users. but a engaged so through the And not through users, advertising, sake that this there’s how monetize always for goodness’ things already. enough. of And new It’s total think chunk really because whole of we can close to when of how those I don’t billion pay X.X to news we on attention can don’t can the funnel make overall display we to audience

Our job opportunity do better is monetizing have. the that we to traffic a

Ernst Teunissen

And what. in to to your for know question clarification second just for what’s Justin everyone

tackling our sort talk as advertising of ad introduced placement platform. But display and part sponsored our potential. hotel meaningful traditional in new us. have was in nice Not well revenue referenced, of is this display we about actually and display developments. was and we for indeed, there usual when that a That’s business. our yet some of business hotel display new business TA a auction So growth is the the the the in exciting some units blocking more which a as driver you result across longer-term And in

Justin Patterson

both. you Thank Great.

Steve Kaufer

you. Thank

Operator

you. Thank

from from Jaffray. go question Piper next comes Our ahead. Olson Please Mike

Michael Olson

really in Hi. I this curious, a experiences way business sure materialized. other in the that space but I’m not Good of if in competition seeing new really of about was morning. your We from of category doing hear more players in are lot you how it’s talk in we’ll of much just and restaurants competitors? the OTAs would other secondly, that continue a adding with desegregated it more inventory maybe describe make you barriers for traditional. challenging over that it there traditional and components more to potential adding any Airbnb And time seems entry to and then alternative just accommodations array see

TripAdvisor and bidder results good a up end of have of for traffic combination kind entering Is because major everything. with Thanks. it So major the in potentially three we a OTAs that could outcome another for fray?

Steve Kaufer

excited experiences part Sure. of and A the great set questions. restaurants is No major surprise including the and opportunity it is us. the untapped by frankly of trip players, super about it so because we’re the in because

that lift proud that have of of And do so supply. you in it of as supply look you when demand at enough that’s and our we address position all a heavy to very we’re globally. kind course And of

are point-of-sale visiting all around proud shoppers that number globe. our the more attraction even and of We’re TripAdvisor funnel the the in because truly of of position demand Viator

the and great so one large the in leadership the think because it of delivers competitors But because sprung areas last a attention and the not it’s the OTAs ecosystem, up the now from the smaller un-cracked bunch have well-funded globe. big course in travel appealing, our is space We space. that TAM a marriage is which I because around so combination attracted only of have makes it’s that that but of

on is our toes So it certainly. for competition keeps great consumers, us

and where reinvesting put And of you our leading is. have dollars we now TripAdvisor and overall the one Our of in down us kind talk hit the that’s in challenge parts the experiences the and world, make have other is now position reasons to being the right most category taking why many so leverage fortunate it business right demand, willing that see media of in without EBITDA. afford to the on on to frankly strong of group that supply the we able the to double an dining parts connection we’re

question, pole strong are have and to our gives plus demand exciting and move us of which footprint Airbnb position of more fair earn To we that one is existing is the super competitors impossible gives the we feel of the supply the our confidence us see share be a We could the yes, multiple combination towards. part that second able So to than to places any that alternative lodging. space. the certainly certainly nearly different position accommodations, purchase go of we like of moving having lot type replicate

better TripAdvisor the the fulfill that on alternative course of more we more the the to for have our choice growing the us. for choice, lodging booking We’re we and partners have, better;

likely not it’s the material net-net we trend. be term us to think like long to we So but near-term

Michael Olson

right. you. All Thank

Steve Kaufer

Thanks.

Operator

Thank you.

Our comes ahead. Anmuth from JPMorgan. Doug of next question go Please

Dae Lee

for is you This morning. on questions. our taking Lee Doug. Good Dae Thank for

prepared a on times was mentioned membership this one and remarks. in First loyalty, few the

So business? could work the drive you mentioned you’re earlier? you play that of you in membership and some Did how Easter Ernst, your affects could that about clarify just and Easter And trend talk doing opportunities part a then more loyalty? you April the to see the here

Steve Kaufer

Certainly. Steve, Dae. Again, is this

a shopper hotel the plan shopper, how the we membership to to as say, and able shopper, to eat; an experience us. position a for well, flight because a a and dining, about have a flight some hey, hotel a course trip both take loyalty, move us be experiences and experience and straightforward and how very hey, hotel whole experience; On an such it’s we place in pieces with in have about and of nice

you most want want an to to we more the requires allows you the you functionality that do, visit, hotels of site to that like to it. users and Trips in at want of up use which you you’re how you it attractions with aware you’d stay to Well, app. called take, because that build to also including membership understanding the tours in in in, so all together We things destination the different pull functionality have are this great order of plus have to we do the take that capabilities signing our on

you’re those offers sort view might or sellout, of drive as because powerful our we’re additional of receive. engagement, propositions able we bring of so adds will value you fact you value essentially because now in, And there drive because you’re new of member before that loyalty because you, and app that have consumer to in to want help you that a things you all kind TripAdvisor you can to remind get book for consumers they signed

Ernst Teunissen

the impact in to and it With to is make read the in different this it regards April to But yes, does a Easter business. Easter the year-over-year Easter a peak many complicated April, more bit little is was throughout we April doesn’t before going ways. think first matter whole this saw stage for April much. harder We for and summer a not us. little is bit where for it little a that makes year – reading to that climb the

Dae Lee

Got you. it. Thank

Operator

Thank you.

from Our from go comes Please next ahead. Khan question Naved SunTrust.

Naved Khan

A lot. of a Thanks couple Yes. questions.

Should the then follow up. hotel I back in mean just for how positive side growth revenue have side. on about the growth full in think Should think the revenue prepared revenue hotel in and for I should your positive we the to the On think improving talked the remarks about half? full that And half year take or you we back we maybe being a aggregate in growth for about that year?

to kind think benefitting On mix these to all if of that how we layer CoreX going should adding a that’s new factors the guess and units And potentially affects How you from the on headwind. three on of of kind bucket? you’re about of the on, trends display side, I top the it mobile, several desktop that. from

Ernst Teunissen

Thanks, Naved.

in terms get In line we the of second trends believe this hotel clearly segment the out that performance expect the segment we’re Long again. yes, half. half can hotel of to itself growth the and term we calling improving second we year, revenue

improvement very to be we’re half of specific the in going clearly second about not seeing but our timing an forecast. of the trends that, exact We’re

Steve Kaufer

And this is Steve.

again, I units. growth, here. the detect We’ve as on earlier, we that from think consumer we’re a inventory We’ve been in good experience. mobile. added to On position we new added alluded can the display degradation pretty no more There’s

capabilities We have which has it. travel add new the to feed

we that customized about to of yield to we in You expect it can that the traffic leadership that down activity we down But is the that fact perspective inventory. or attraction we channels, business advantage in view would what that. place and other a remember the and to way funnel. trying majority programmatic have shoppers that Again, hotel will total just reach, of there not the think the at amount we sheer internal the sets with that of They’re the want call display is want there’s we’re the to in to we’ll our monetize way that clients new have the look untapped. a this have in engage amount size, breadth, our for to transaction ability ready into you I that way a point. the pretty to a to the site currently is expand that with new no will that when we much because all interfere reasonable a of funnel, to also midst display and at are how perhaps booking just take the additional partner safe focus click do share our that off

CPM a sponsor media formats hotels monetize or great or we this in that offering and or call these the enable up-funnel case are placements, of diner. traveler So what us to display restaurants new

and it some expect nice so would that 'XX And the of expect just from you feel there’s and internal putting growth lot muscle 'XX, see as we we some like of would over area. course there, growth behind a to

Naved Khan

Thank you.

Operator

you. Thank

Citi. comes ahead. from question Mark from next go May Our Please

Mark May

taking Thanks, again, questions. my for

yourself, I the your And where investing maybe of maybe again, Thank can is a lodging, alternative if some this sorry working secondly, then you are being that partners focus volume versus from with for of on softness, First you are much growing strategy dynamics, the supply And missed of pricing? some in you. perspective, earlier, but just that in remind terms here? driven is seeing much and and auction particularly you’re you you? primarily of how how the by actively markets your is us supply what

Steve Kaufer

out staying Thanks, I’ll Mark, up own the quick on vacation more reaching first source question. team we rental calling our do the massive can the It’s that capabilities. approach major accommodations. take for one connected the We the and homeowners is alternative with lot not individual but And property again, management programmatic accommodation. a supply. alternative currently systems there have the a so transaction capability, that of booking that’s

wasn’t a Over had system our past we our also onto that with hotels. aren’t the inventory on properties because that through want it X,XXX it of brought accommodation alternative We it their ergo clients on OTA a was partnerships systems, traditional brought brought choice the quarter we and traditional have type they our vacation wasn’t we another rental in. number to where traditional over them but of hotel, platform a

those inventory to of kind to our on to we that to And other big then we bring to thousands again, do of a any our us, hundreds team. we interested the contracted so mostly believe have partner directly company leaps. focus supply the prefer aggregators. own answer is, have next short but reach are we properties And It’s major reason out for for clients of through to not have partners we with and continue

Ernst Teunissen

side our the in it that. of have demand that’s to what if obviously terms auction to stable pricing. driven. be in of macro but auction And, was with so be specifically, not in not not It demand and we by us you related do terms might of is the Mark, the sure question the partners, think behavior dynamics, the seems to But driver mean bidding and And the it’s more QX pricing. was with we it can’t of that

Mark May

you. Thank

Operator

Thank you.

Our from Please Jed next question go from Kelly ahead. Oppenheimer. comes

Jed Kelly

throughout dining, move display of talk the back marketing to we just as In actually revenue should can advertising, you year? throughout comps questions. easier relative And that taking the the Thanks about and my balance performance for on then expect Great. growth the experiences we year. get trends the

So in should see growth we segment? actually that improve

Steve Kaufer

So growing that marketing and both leading but that we dining, to the our branded revenue as investments to you also may we kind started performance-based in would that of differentiate we’re marketing seen yes, experiences. with we’re see. the It’s with expect experiences include have and on messaging there you growth more

We’re branded restaurant for brands brand, doing in advertising LaFourchette TV Europe the specifically.

it’s traffic audience flowing naturally we we that to sure have there. and better sites that So leveraging of focus contribution that making part free get that’s obviously for and as yes, But we’re would lot by to also free factor supply a convert making an TripAdvisor important you can of our experiences the as from expect. there’s showing more is big and a growth channels – well particularly

Ernst Teunissen

you And can number both sales we initiatives build cycles. ads, and of have that have how the display the underway appreciate a on cycles

the started some And literally the in I so to has past just weeks. of referred leadership few

around it of in amount monetize there, you’ll growth we so the we fair it’s a in expectations see following XXXX. building as are a how feel is like impact the lay phrase the earned any QX vehicle in growth blocks, not I’d opportunity – for nice the but us that’s but path of budgets for again meaningful generally QX more big the and that transactional set against near-term caution in much of we’ve I’d traffic so analyzed we jumps front us there And have but to year

Jed Kelly

Thank you.

Operator

Thank you.

from RBC comes question Mahaney next Capital from Our Markets. Mark

Mark Mahaney

questions Great. please. Thanks. Two

obviously the or then you’ve just us up, profit core there’s QX. for the this You talked later remind for to be high about brand and OTA-like the us hotel And full you investing that? before expect in XX your on margins tell experiences said showing what Could restaurants million think in and very you’re number that category you in TripAdvisor-related said you year it being commentary if and business. long-term I margins about margins hotel advertising

get can that those conviction that point the they’re does data scale? to you’ve long how high margins, are recent a to seen to where a it of from great Is really or order kind give get to you What leverage take? you areas that they Thank are Just confidence but those biggest margins up to there today in levels? particular high get you.

Ernst Teunissen

Mark. Thanks,

of brand other in same year. year our spent on of advertising as amount XXXX some the spend the QX smaller we was the In at TV. the year TV this predominately We advertising, roughly are in pockets million advertising beginning this Last brand there terms but $XXX of well. money would in around million said that $XX we

it’s the and the something brand focused on investment have And is the so up. price the starting on you So broaden – pretty hotel amount campaign TV that home and much message same for making to as we’re expect. TV comparison highlighted should price we’re bringing this comparison we was last that the of to year, that continue year that year

might it We’re starting to out even and broaden we the include about towards messages of experiences year. further the end

that good the We a are of effect different businesses. there halo TV across finding is

and advertise if a for see we business for hotel, positive vice-versa. impact even we So other

contribute business. And is to overall believe the going this so we to overall

change. that’s So not much there, expectation the so

we OTAs from that required we we the and the believe restaurants, is and going like likelihood business and that time. the support think We restaurants, commissions a long underlying will larger that to pricing We structure very experiences players, get having scale power not businesses, they’re take have we market healthy so attractive look forward. fragmented both of how and over very this solid. This term. as is very both yes, as ourselves, have general the where believe the in significant will developed very different is cost businesses experiences margins terms potentially at we In see get, rates in

suppliers in new now free that in investment that provider, in we SaaS we’re currently offering. for giving not short-term we investment with practically made a to well build are leverage of of It’s quickly, investment that ways that revenue costs. pursuing because making for, the tech a we for we’re We’re very obviously there feel that. just couple will that lot also And revenue, up and that away see optimizes leverage of long SaaS in we to want other building areas platform can doing some scale dev examples even and if we’re time. not as In this marketing I long-term we’re so some highlight. But that some over Bokun, We for in this term. and over that business this aggressively the

we users with so product and privileging the this to price our get a do it’s a that point. but our XXXX site. particular is some in price more our a around more in us lower it offerings example driver expanding rapidly year on product revenue a to other a for are future. we the driver because point potential And revenue in Other we ticketing products and are is can for experience users both We think we lower portfolio overall that grow at not

for a a in We drag is stage. do these like and term near on long of long that Bokun Now that forgo the things things much some over consumers we our at the say, later look signing AOV on is didn’t monetization breadth we way both a average deleverage so the revenue. in can term term of it, up we the more and step up and that at and can of the near-term pressure could if new

line, we only on as of the behind that long-term the us it leverage investing on because and the that on cost of business. attractive can much think a we’re strategy and well, makes is so potential much and time the cash pretty business five-year feel very revenue have can bigger at not get So platform over so three all about together line our a overall we’re or why deliver flow reason with significant period we leverage our and our we good The longer-term today pretty EBITDA over for to margins, business. believe than over that a to we therefore we period we this going believe allocate contributor time and

Mark Mahaney

Thank you, Ernst.

Operator

you. Thank

Sachs. Terry go Heath from ahead. from Goldman next comes Please Our question

Heath Terry

metasearch hotel lot But the I on call on Thanks. been and useful you’re got. at some the look site. just hotel the then to trying sense independent leverage on was to give traffic been that the there’s happening obviously drive lot expecting there, a give can in perspective even organic platforms sense the priority? Not chains the that what of traffic? on for direct build site, the seeing to of be but particularly of seeing from what paid organic – their to traffic Is sort you’ve to a with trend relationship if traffic within the for us your changes a sources business, traffic What’s a it’s the of direction events? a more traffic? to directionally your for of the you to direct to any you’re And there more extent primary Great. extent get. on look could What’s us through And we a hotels there comes the of if I you a opportunity happening increasingly traffic would have curious you’re in that that platform? that you of know marketing two from an wondering channel hotel segment numbers, or focus knowing of absolute

Steve Kaufer

for Heath, Thanks, the Sure. questions.

As a the other continue own you high their lot and offerings Certainly traffic results. in in don’t we Google to comment general. engines push know, on whole search search free

headwind products to exist Internet more We’re long have upon under wants different time. It’s more very opposed we through we our many grow traffic. overall That’s business every their paid domain, traffic goal becoming hope used more so through conversely to would more dependent company to that membership, a that traffic us. the unfortunate a as to to bring Through more continue fact the control. free the it’s having but for content, other It’s better that. to and for for and been

us, category, headwind in absolutely. tailwind remains a TripAdvisor moment. or the It’s So hotel fine. headwind a particular for at the it In the ecosystem, it’s overall not

and can grow some you to shrink categories has non-hotel infer quite time. been hotel it for in categories in it So as tends

more building or option; listing direct big meta sponsor chains offering our relationship or our your from more subscription In our we independents direct, purchase and stay, engaged hoteliers, with ideal where directly figure volume our placement. participate question we one second products out terms to looking hotel of love of do that or in marketing platform move by solutions having help we’re the looking in an And everyone to to the travelers what they’re out demand supplier to sheer figure to still industry travel for going of feel around.

the and So powerful can platform. direct time, it’s book. drive a was look anything mode, the the to big owners, our comfortable improve have capture when it’s direct and not channel over to for that a their a say purchase they’re I’d safe, relationships with continued as great travel pretty we’re owners capability our chains, there restaurant more that ability out are hoteliers, the wrong attraction in eyeballs them. it’s suppliers, them why they sites, traffic they domain to channel But one with help to for to

all So is chains. to strategies our with the good nicely again, tend there and align hotel very

Heath Terry

Great. Thanks, Steve.

Steve Kaufer

Thanks.

Operator

Thank you.

Our comes Please Company. Kopelman Kevin go from from next and Cowen question ahead.

Kevin Kopelman

And assumptions plan? top can to are lot. gone five-year a three five-year you’re your your about on double-digit some Thanks at the to return Thanks thinking elaborate looking three a and have trends line interim? the plan that growth? financial Can that how discuss to you formulating specific into What timeline, to lot. you the in of bottom

Ernst Teunissen

we some Kevin. three about statements the Thanks, horizon. some make Yes, of did to five-year

sort growth us back are Platform and identified, makes We us to of marketing and the that different believe hotel healthy the others display a new significant. general is display there say, opportunity, the that revenue hey, talked year at the is you growth around are as the BXB some and there that important one and trends are Hotels, line There have lap really growth. help that we sort optimization new the we we to we very one. hotels can that about – like look segment sustainable we products of that media important and in our now new is at are opportunities that important we segment. direct the that this business segments the that going if go find segment, introducing, segment again of already So get opportunity course Media placement through is a as often platform. & sponsor can of can We’ve very item, in as shoots isolated that a that TripAdvisor-branded see first We

category. about new initiatives that various in product We have that talked for we’re aiming

leadership new to have start there to that. We ignite

the back – A the In are business have the I’m again be as the that expect altogether, margin now of future. a great. in you us being in to if we we going go initiatives healthy so And to take that have that think well. could are that high that we grower margins lot for meantime describing

segment that dining outlook is So talk margins healthy we as about and going be previous other growth to segment much total first segment consolidated then the maintain I rate pretty question terms And then our pie and feel the financials, segment there of is We margins second did of believe in at better the forward. increasing a our we share business we of attractive in the the a can and build experiences probably sort that is in two. or overall little in well. we third more that are can there the the And for going experiences of going trends growth those so said well. as of help course, the dining the sideways its because increasingly rapidly total business of to

So that our to we of unique five-year the we We and really that assets and healthy a we have our that’s outlook. some there that very very behind to fruit. assets that in about and we very business hard think three continue significant bear set replicate, be we’re and monetize will our unique efforts three to building will five-year believe to think statement timeframe very sustainable to believe

Kevin Kopelman

kind the here? on Thanks. bump in the walk it’s And you performance. thinking of kind a say experiences Can Thanks. probably of maybe EBITDA follow really there interim on had a how to up been you progression, just three you’re fast specifically to five-year? – XXXX the quick from were growth where I’d the and dining through us

Ernst Teunissen

we for fill in XXXX and But we can trends continue the those and XXXX, want XXXX to call the don’t to this see start – in I more imagine. the very that longer-term dining to I experiences trends come. precision what think we’re want years expect I you on and positive trajectory yes, we about provide then statements, to as that and the Yes, XXXX Kevin, thinking those into don’t

And business so bullish to expect that we’re that about and continue. we highly

Kevin Kopelman

Thanks, Ernst.

Operator

Thank you.

Mizuho Please go Our last Securities. from question from James ahead. Lee comes

James Lee

here and bookable Thanks for business to this to focus guys XXX,XXX here. products you the obviously experience on I specifically. up taking quarter over job questions my for good want a ramping did

maybe and Can the just at talk of scale internationally. to this build? sales, a Thanks. is ramp to seeing, locally expanding point want or you self-hire? that what of to process implemented increase are you right, give earlier automated onboarding that the up Now the it due is in And need time? or So your sales kind about organization your peers I you curious due that sense your the where is know in prior quarter to

Steve Kaufer

but able I interested the that’s a all the list parts and that reasons that of already technology think to we so selling and sale of globally process right. much is automated so world. it’s in point serve, so targeting suppliers that It’s that Hi, the kudos the are have one sales the important products many TripAdvisor point we and bothered the kind to of James. a are us suppliers can note to the Yes, of products it to I the sale been get of on in automation of to to with really new their I’d hadn’t Viator existing TripAdvisor just add ones demand our onboarding that experiences’ accounts to best both more reps think say combination they’ve real unit. the bringing

any naturally – think So flock the that for channels suppliers category can bookings. they naturally drive to

side close a the might easy class to the for each TripAdvisor mostly the products, making travelers that we unclear it have of tech demand add footprint that great would it to it’s do, able just make and the easy delivering world the hard, cetera. site and by on has X.X by that of we tail et combination. footprint competitors tech the in month, the very they cooking demand billion long And on that part bookings, random work because have makes Other build be a great just so to some

probably of So hard that’s is. makes our as really grow part part anyone that’s to else what and the ability to supply for it replicate strong as

a I things our recommendations, it’s of rather on improving need year. bit helping conversion customized, one look next on XXX,XXX little than, the For to have XXX,XXX more two the making personalized instead about as forward us travelers trip site supply, buy more the matching hey, instead demand, we the of products

of many turning little kind bit already travelers helping world. have to but all comprehensive not footprint of we’re parts the we So more inward our now that a pretty a supply in

for growth with criteria. I issue as interesting and more an year supply the that’s matching So isn’t the I’m again really the We prefacing not – look demand next side if at doubling side us. and the guess

James Lee

And, Steve, get kind organization? your need expand What to on you you there? any How of to want sales do scale color that? do

Steve Kaufer

but too I’d bullish, kind new I of of big to want our In markets, of I markets. us big say a lot don’t as the supply think – finds supply our this come off most in the

products, proper speak APAC in we’re with tour make markets our focused that of sort audiences And the just so sure thing. that our English working we’re not in of of is outreach supply the more and our that suppliers to bringing, all languages different our getting guides

at scaling back too organization. So But supply numbers for nicely. the themselves stretch. again, successful pulling not want any been how I speak by The much don’t about we’re to we’ve talk

James Lee

Steve. All right. Thanks,

Operator

This our Thank like remarks. over turn At go call you. time, for CEO, to closing concludes to ahead. Q&A the this Kaufer, Please I’d Steve session.

Steve Kaufer

really thank to joining start a call. Well, employees TripAdvisor all to media the nice great. for the group Thanks everyone I want of XXXX. world around the for

I We’re progress have on updating opportunities great ahead. growth our exciting everyone look progress quarter. and to next forward making

thanks. So

Operator

today’s for gentlemen, program. This and concludes you, Thank ladies the conference. attending

Good may day. disconnect. You all

Tripadvisor (TRIP) 8 May 192019 Q1 Earnings call transcript