TRIP - Earnings call transcript Q2 2021

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Operator

Good morning, and welcome to the TripAdvisor's Second Quarter 2021 Earnings Conference Call.

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

Will Lyons

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

earnings financial Joining our after CFO, are on TripAdvisor's our quarter market shareholder website. available Kaufer; you to On information, financial measures will this and CEO, call. our reconciliations Steve of will Relations financial GAAP find XXXX second also certain Ernst our the of we well Investor and me discussed measures and letter distributed this made which comparable our other supplemental non-GAAP today includes reconciliations closed, discussed the most filed release, metrics. In Teunissen. release, financial Relations call Last you Investor night, find measures as website, non-GAAP on as on

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

Stephen Kaufer

and for Thank joining us good Thanks Will, morning, everyone. you, today.

the QX, the structure Europe. second traffic indicate quarter. is predominantly well of the we in revenue improved while and strength in the XXXX on return monthly levels full. turned half versus and in Both saw about of underway travel, recovery These is Whereas their XX% grew that As our percentage both travel covered note throughout improved recovery XXXX positive. in in when in our we're the users we as net adjusted last market, the of impacts each shareholder the June. pleased of quarter as to versus and a mindful particularly QX, broadens by And results variants potential EBITDA in high narrowed letter, remain the and percentage domestic international well. July month TripAdvisor the that broaden, We QX and year we report positioned the that U.S. were optimistic travel, recovery saw and loss revenue urban and unique we

While the with than we're more the to COVID. on story just We and much value more pleased partners successfully see growth getting past how opportunity huge we're navigating consumers recovery, a drive and platform. remains long-term delivering our to TripAdvisor

continue and our in to growth to global business our includes invest by to initiatives. direct-to-consumer offerings, scale, deliver drive possible strategies future our all diverse and This our execute strategic TripAdvisor's of growth We users the rolled to in have position continue to product for TripAdvisor out and Plus, the growth go-to-market the our will in which building we offering, customers leveraging order influence our and platform. We'll competitive the quarter. subscription U.S. tech strengths on experience across best

you let remain our you. keep about more me to their products Ernst, for encouraging So thoughts. some and with services very to want and hundreds millions And value consumers to customers and that, to of in it for building ahead. turn our partners, to developments. To back will of had employees get drive I TripAdvisor what's and passion summary, to additional I we many travel. optimistic QX commitment loyal thank helping partners over

Ernst Teunissen

positive step challenges near-term progression however, the pace counts expectations, pandemic recovery, QX and is another and and improvements you, travel QX. of Steve, the by versus very were uncertainty levels of course, the results the case forward encouraging. and our good posed of Thank XXXX at beyond in quarter morning, ongoing throughout other traffic revenue everyone. we the for expect Increased

Our remains, QX but to improve percentage uncertainty XXXX, terms, the as Europe. industry In has QX, a that also both believe adjusted absolute improvement dollar driven period summary, well we've return already entered in of release as demand as meaningfully we but expectation travel and a is will significant that versus in initial pent-up a primarily revenue EBITDA by seen. further of

and Europe We for continue been into of further as optimistic are international primarily domestic second to has travel we terms travel, a half already expect better rebound travel the demand in recovery This world in follow but significant we demonstrated open about and not U.S., expect XXXX. closely questions. run. a as recovery, for call rest positioning that, the for behind. well strong the believe and long now for well to the only TripAdvisor With the We of we're will

Operator

question Our Truist. [Operator first you. Instructions] from comes of Naved Khan Thank

is Your line open.

Naved Khan

you Yes, improvement you a just QX A markets? questions Thanks on between Are Maybe - that in I on have for can parse lining Europe me. slowed, Europe? TripAdvisor of the about how then U.S. lot. continued improvement Plus. June saw And further follow-up from seeing just more both us out across from improvement a versus couple the it on July is commentary and improvement face U.S. of flat the hi. sort that continued maybe of or and your on question

Ernst Teunissen

in but you up we've June, was of a XXXX, It in Yes, slowed improvement continued as from Hi, of percentage significant The a Naved. saw improve we This as of of saw numbers. our July XXXX. levels progress. percentage is terms seen rate pretty to May Ernst. June step

side, on increase underneath maybe you the a Europe the the to June that, it in primarily the a significantly, July and continued business quarter where saw go If auction We only but points, to Dining had as step few been in starting take early hotel we July. more relative U.S. to in our but a percentage accelerate Experiences back bit a little of saw

a our to compared much overall, but June. than numbers as better And better 'XX to as actually July June, not so were little May

Naved Khan

a month become Understood. uptick case half just That's - it now, right consumer use percentage on that centers, you for available your And up primary with been on subscribers helpful. the is full the that people with not use expectations? seen own On color who might live have the see any and you can Maybe site that? TripAdvisor that to launch the using that also versus on Plus, being a And it? there anyone. or you just Plus do commentary it's maybe then do usage, is away or speak end to or live the maybe to your

Stephen Kaufer

say to start Sure talk on - topic very it I Naved. got days. to to to something I'd think we're Obviously, early with thing. love really Thanks have about. But I here. I the is a

examples we bunch a fantastic categories, of in subscription businesses you of travel. have of but before, As I mentioned in other have now plenty

And affordable is brand trust, as so company that we ideal create up with really think our say, we TripAdvisor their everyone, to let's plan the travel. traffic, our just

in As months you launched know, U.S. couple a we ago the just of the product

did is single of I over is, like what that, Well, savings $XXX. learn that a day say The our we're some are you're a are bookings So saving thing There guess far. the money impressive is asking for traveler I'd travelers. saving every lot question biggest $X,XXX. average we the above so expectations absolutely an

our booking and travelers, So to value $XX along this pay to hotels discounts our passing a user privilege in just it's amazing that an offering. expansion really want because hotel of proposition. of great kind stuff to experiences booking expand a the like, testing And and fact, Travelers discounts. as get matter not flow, that's be pretty they're the just all are into we flow, to able these we're

take and but discounts know, to product fair, not we have experiences, hitches. of hotels, advantage But As on no we more savings. only some all travelers to traffic lunches the even without these you to leverage want be help

at we to made big our as hoped. And change, much savings are progress would great so But candid, at hey, we're while about travelers' haven't listening, be and iterating I'm excited I the improving. we have exceeding expectations, great signing

taken of much we've heard the goals, to feedback the won't our in will with have some line great more be that And for we value created believe so we've solution partners that hurt hotel heart that and proposition chain that and travelers. a their we've from

So making of and that's this now, building the part announce a but not reception to from getting anything, chains ready unfortunately, to marketplace. I'm better the critical a product, we're much that two-sided right to we're changes

excited we're Plus working And we of couple hotel a signed they know, Plus. we've all other to into with And a the we're that. also around them you about chains, closely bring have As Trip.com, ecosystem. supply, specifically lot with and their partnered of

right of In seeing of the away. I'd are on the question can terms users hotel. they booking along subscribe They're most say kind seeing flow if save money of their all that users on make most. in about booking are out pay no-brainer subscription. they more that for in that the of that, pointing the you can this savings moment talked that's that but And like particular certainly way. the Not prior than the calls, booking we kind

Naved Khan

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

Stephen Kaufer

Thanks.

Operator

you. Thank

next comes Our Evercore from Khajuria question ISI. Shweta of

Your open. line is

Shweta Khajuria

more more hotel communicate slightly you On discounts that that's your in on your signing to been chains, mentioned that's developed in received. ways the you've hotel well - new part letter differently, up been

What the a in expected hotel far process the was what side is larger guess, product Is That's let's that and like TripAdvisor okay, discount is also one, first once, showing you onboard. than for change supply terms chains? onboarding how question. slower in on starts has process a I reception been the a on up? And So second focus are What general? the Plus, from so say, we Thanks. it? was says, until development the the of

Stephen Kaufer

Sure.

along of having and rate a properties say lot Internet. is we're the care challenge standard across have rate a discounted current our I'd some a topic biggest about parity the hotels the had So implementation where with rate showing

loud clear. that heard and we've so And

more That's the site higher in. a consumer travelers. for can them that sign the of hoteliers and the rate There always more that just our kind join are asking ask long zero few individual to certainly When I offering or can supply hotelier and addressing for currently gets some about way our opportunities so inventory for is then on deals consumer, position we preferencing as see mentioned, that's towards and show interested we on next for a And comes savings. to a in. the make changes fruition a Trip.com, more you'll Plus. and to changes. they in hotel partners that so of making on goes hopefully, live we believe And the going big To the those site lot as come to is a think is those in create rate to the up, we're for to the some like rate better already earns months, bookings, that that because it your hotels difference chains be question clear have show a more discounted with the we're what equation we go what the hotels commission we that

some we even So that the a can have think things chat. have make covers, next again, on And sign-up with of simpler. we that actually under I'll the that we more process say to time bunch we the new

Shweta Khajuria

Okay. Thanks, Steve.

Stephen Kaufer

Thank you.

Operator

Thank you.

question comes Jason Bazinet from Citi. of Our next

is Your open. line

Jason Bazinet

but down any of sort even of because not Plus, get number that of owners want of because in at any Is look there strong, Trip easier sort moment second, normal said, that bit I penetration to and and that for you really on sort out what as terms help am been questions. deeper of the in implies to that consumer travel, to property way, more don't wrong? of two and demand or we to that about impediments everyone get a of little And thinking world talked this savings sort hotel receptivity see savings about, then over So we'd the or is you're of things quick where fair comes COVID $XXX signing because weird it having? back need they types it is say goes just so particular is fair time the discussions characterization up a they has wants

Stephen Kaufer

So terrific questions, Jason. two

habit But of pass will that the had that more share, building, a over because of back several years, project some it's savings that on build to level coming lower with think great back consumers that is we more average trip, hopefully to book that overall to I to yes, to down. to book we but getting course, year, overall on of the only can $X,XXX that discounts that I may and that they're a if more it, an And it trip. now So as savings have building discount travelers, they're properties would but come I we're And property us not out discount expect the spend. have coming good on for it. to may they're not entire a back have $XXX look

there's again, have and - to is that channel at probably because will tremendous - saved traveler in I at there has, in just literally happy may a rooms a They're is had And on over on savings hotel. the stay discount your our question second hotels, that loyalty, first they has demand do able building more to nice points believe that because discount of set a the very bringing on We're signing could market the is Traveler $XX some hotel more second they for a hotels what great are great will ticket reason extra to a a of those them hoteliers. yes, on second purchase that we in So at the you always going one $XX distribute set have discount your happy always think sign To first, that night levels. $XXX certain properties the inventory. big savings priced variety that. a opportunity reusing you be about a it's but properties COVID have more on and on distribution that's I on incremental slightly product I to time. because pretty a purchase, to basis shared. just it going to moderately math, industry, much was down. impacting save the over use and first it always every $XXX of the savings be absolutely time, average to coming to us different time, TripAdvisor and But think than find a

you more on discount you also distribution less you're the a us, get start distribution Our our sign can you than can - your what or the the even But what other discount that channels than that simply message is higher with higher to similar with other visibility site. paying channels. is

are to they go impacting it lot to it's globally, cost and to distribution like then back channels, which, probably for getting bookings more to recovers, even back safe would reach the dealing they're we feet I prefer every they're signing It that prefer really can their on business full focused are we comes get if when they is as think hotels of to, direct, they're to alternate or so have most be where for still sure I'm travel their hotel, and want efficient would guests opportunities. whether alternate but on And a channel. cases looking they resolvable. their always demand, all them, COVID the to growing reason always to be out to sure is and ability But they just not of to of help are a don't some being sold perhaps hoteliers. just that degree, has think - do think hotel going kind our for bother staff simply they whether is to hotel making The why back or there able for sign, I come people some new the

For we're cheaper a a for channel our flexible model, channel hotels. for very hotels,

time. in reaction always and when them on And hoteliers live been terms the of connectivity a - positive. has sometimes matter individual very It's the or like groups getting we just site. been to So all some talk issues to of

Jason Bazinet

Super helpful. Thank you.

Stephen Kaufer

bet. You

Operator

you. Thank

from Our Mathivanan question of next Deepak Research. Wolfe comes

line Your is open.

Deepak Mathivanan

question. the for Thanks taking guys. Hey,

Just a couple ones. of

platform contribution? Plus. then seeing more of versus the than from customers leveraging now effectively about advertisers larger ask to revenue OTAs of Are on advertisers, wanted now of Are one smaller you in pre-COVID the hotels, before? your second some mix And auction. first, terms So different

some You what large have one Plus? you you now Anything do would the platform, great. TripAdvisor large think OTA there right can bring it the on to OTAs other be takes to of share

Ernst Teunissen

answer the we pre-pandemic and first advertiser this let I'll that change Not I'll at a take point. can versus discern really mix the Deepak. Steve Hey, in second.

terms So nothing Steve? of out really to call in trend. the

Stephen Kaufer

going our back on years takes the we the few So a lots Booking It of around on bringing with aggregators to experience globe a time. quite of lot certainly all Plus, initiative, Instant have platform.

of Book direction for actually us the that get fortunately new we had some to of that fact, In the to have infrastructure reuse some alluded pieces I and place product Instant lives. in kept

not So I kind to not time you from OTAs additional think the they're equation, of our as over will perspective, some part but do see aggregators have. or critical of

we their the discounts as of that perspective We our it's out a good amongst interesting kind to perspective, to surfacing always a always coming pick an our a to consumer better able have property, than well, reach. best be offer and from rate pretty From offers are now Trip.com the nice to is a surface actually footprint particular supply consumer with a be online is it's retail less for goal little because that global there.

have choose platform quite important OTAs I've good And a just impressive. that are the of as from less properties footprint we having their really whether on Trip.com kind five offer available XX surfacing supply or is from said, to the a of is number sheer offer. And so particular than

we'll to as it of we kind don't critical So OTAs, additional view the additional to of the pursue aggregators, but success product. continue

Deepak Mathivanan

Thanks, Steve. Okay. That makes Ernst. sense. Thanks,

Operator

you. Thank

Our next of from question comes Clarke Bernstein. Richard

Your line is open.

Richard Clarke

I my morning, taking good A may. couple Hi, for if questions. guys. Thanks

you get that how top And can of experiences? First some much for is kind the potential done this language just doing just there can using a Viator, you a potentially that multi-billion talk What a context, saying, there? coming the copycat funnel on because share sort that Trip one language? am any kind big into side booking, is And how the being multi-billion that that be? the Looks seeing to is as of of space? that? rectify of you putting that Is a TripAdvisor what with market. of I Plus. about against used that just in talk for softened of of products a you're And now just in you've little you've conflict sort or question it change Google maybe obviously the into is And on star you're can product, bright deal dollar quarter. Maybe you too bit, one, can of a the reading like dollar about BXB of

Ernst Teunissen

take first Very our in experiences. with in I'll the Richard. pleased question. our performance of the with point-of-sale. Hey, performance pleased, particular, Very Viator

We that's seen category have is repositioning effective that a to for domestic, much we the the recovery. city. we've that but at slow anticipated with the lack we've come more been recently, And our particularly would seen from back than what very domestics, QX. experiences away travel faster of And we've we big international from very, as offer strong. towards been But very historically Europe benefited city more in U.S. down and experiences us, very effective outside anticipated

performance. year, our improved bit actually Viator very TripAdvisor, than Very, XXXX they globally significantly. little above are bookings, rates points-of-sale again which even in strong impressive, bookings with still are in on or it's is very, but very XXXX very elevated, June. a June, but as U.S. Viator, in last was above overall all and July. channel a bookings really lower absence were our strong opening very, experiences, Europe Our their U.S. cities of big across channels, in the opening Cancellation

And doing so well. really

XX% As market market. leader. offline. early We're a huge days, still It's you know, it's still a is

have doubling as the we're shot feel a global in in on And strong very done, and now a, win very, that have down always real we we've to recovery. We we that supply. experiences,

three channels. play So very, along - among that different We very important.

that And we pure We And consumer, channel OTA. TripAdvisor. have that is which the the play on impact we overall then travel have have in third-parties, planning integrated experiences travel signed OTA then is the but smaller of the Viator, in a TripAdvisor, we the with sell to more we the overall on TripAdvisor, with many and have we which can strength a up that third-parties an we industry. of which And leveraging many, three to, bookings have I'm the channel supply is broaden likes outlining. have other much

channels all consumers those this well tours like. and believe all are to three superior are amazing and attractions So really access our positioned of global that pretty we leveraging

with pretty this. where we're So pleased with we're going

Stephen Kaufer

to want think is comments, one you've a To which perfected, add has like a this all Ernst's able got are pure all we've merchandise supply that that planning TripAdvisor ton play it. Steve. gathered, already growing key experiences fantastic. consumers the just Viator.com, that we've that wheat, of looking a to could entire want where now know and named of the their people is part. to sentence that that Yes, OTA to we're destination of trip we And

program piece our So own player we to which the which are, And the likes supplier not travelers marketplace are turn experiences of everyone of all our like our great things who folks in for bookings, names which part the town. that in more this because achieve in benefits can most two-sided of you then capture wares other we aren't the you're the and big offer the that it's ecosystem, biggest the all when have of get helps have who on sites, benefits of with third-party the that booking funnel. of amazing experience travelers

goes on Plus experiences put the by. literally hotels all. So I quite not our every day. started millions excited soften. excited on we I'm To language Plus, To every - at did about travelers week No, the site it business. that our simply, about of at single question have more looking

on shots $XXX as significance, that call million XXX and clicks times. hotel in a more. it were metasearch or described stays for XXX that normal the goal, XXX call We've XXXX in these million we on call month I can calls million, as think I in You it of

pretty kind site at the people million of XXX partner easy purchase. a it's clicking $XXX, in hotel a room this $XXX So they're buying interested to that a number interested makes because being in

looking they're That's course, lot travelers a right XXX and at of influence. Now experiences. And Plus I'll two hotel, categories more looking but even month experience, they're traffic million of XXX million, a and another TripAdvisor has reach that that, are a now. in those the than plays add that at overall looking go

small money hundreds know millions sign-up of they'll each So millions. of years of these of save subscribers end of subscription if attractions, fraction that on a up thousands hotels, month they over same for with travelers opportunity next the tens of in longer-term those since our thousands of we adding product, the hundreds

So again, we that think things it's and brand trust next many leveraging the the super the interesting space for our know believe have TripAdvisor TripAdvisor travel. the kind and already in to we for, introducing proven other occupy, so on people we in focus is have, big subscription we fits traffic categories, and we're again extremely now thing well guidance, with of the product,

Richard Clarke

Thanks for much. all very the sense. Thanks

Stephen Kaufer

Thanks.

Operator

you. Thank

comes question Mario Lu of next Our from Barclays.

is line Your open.

Mario Lu

for two Thanks taking Great. the questions. on I have Plus.

you in potentially the will a So itself as division it booking. offering of pay so And believe a the trial, follow-up. if currently mentioned first members? the as But works I free still still for have I that's a you're to after notion the before subscription believe offering no-brainer more mainly onboard curious I potentially

Stephen Kaufer

our first programs. have some it's Sure. some continue as a free we subscription I'm learning more. product we sure We're will done to how to one. trial market Yes, do

don't days. our We I makes sense chosen broad go have go with feel point back them. lot as free think great reach for trial. of this think it's early at We've audience statement my in opportunity. that not a our talk partners. very that it's We with that our we to can ways a to entire different to we I'd a But audience

out members. United The far. just of hundreds millions is really States so product the have still We to rolled of

There's And Plus it's magic that a lots up across job that for we're to we helps iterating formula number we least now better play so essentially and whether $XX, I you're if changing look think down. going it how a month center. experiences bundle, or save We of - with right scale. on just front that ways flow, so putting more trial, that it - we've every the going free different to at merchandise site, to can as in the we're put marketing the

Mario Lu

a Great. magnitude I still being a helpful. Plus for members some in historical color been of it's Thanks. early their have then provide patterns? That's Plus And quarters, their for member versus that using booking few the can terms know you of frequency

Stephen Kaufer

that's for that - us so embedded to really otherwise. customer cohort days. that for early behavior it's small six Well, what it's of look at to what point hard us always QX. at be does to given traffic It's And a compare that again, to hard percentage just this in our month a booking would compared

we visits of telling that So sure a can see repeat sort our compares it site, I'm thing, how on now. but not stronger right that that's us enough

have six on months to that's months more great of where going data in sort a and we're looking lot we right stuff. do question now. view a than assured, interesting we're my rest candidly be that going at So to But three

Mario Lu

you. Got it. Thank

Operator

you. Thank

Mizuho. of next question Our Lee comes from James

Your line is open.

James Lee

have. Hey, questions. have guys I just on that thanks agreement you follow-up a Trip.com for my taking

it the from discount the international that. have or the and just on check available in Trip.com markets, of is is Thanks. the inventory negotiated between does after that automated OTA inventory the hotel real-time? to in wanted also onboarding OTA think OTA the enter the need or all you where I system season can process to most be And

Stephen Kaufer

at whole size of contract, know of their that helping to color specifics inventory, sort look too have, the don't of their we is in the bookings the interest on I to give our be facilitate global the inventories the much audience. they want of And given but manual anything and about there the not global size going of audience amount our to process.

So we to scale. aim

players it's We OTAs Trip.com, In our other to and to of their have lives as of onboard experience well. TripAdvisor. inventory working sort distributed and breadth bringing past with inventories

their served acquisitions, I again, Trip.com inventory good hotels Historically, has footprint outbound the they much think of So The travel single of more established have that a from match. Trip.com a well. every as in travelers tons global in China, with more pretty country have world. it's but has global literally

the will helping is one the we're but time, partner build, U.S., so in hotels over hotels world, that the more markets. more hotels trusted ever set And of Trip.com bring offer more to and complete to a key no languages across absolutely inventory us serve supplier more across not but to in only more looking Plus

James Lee

Any Thanks. from learn Steve. you membership a benefits behavior? to Trip to And the consumer's relating any perspective tweaks one Plus, quick consumer as to follow-up, - from your continue

Stephen Kaufer

have time. I adding over nothing benefits announce we expect be to now, but more to absolutely,

have Dollar Hertz, all years Flight to you in is in additional but and hotels see in on ends why a thing benefits. reason add individual club of We we of one subscriber experiences be the going that pretty have opportunity going to come. the add benefits, to No two getting travel compelling sure is Club, use more the is another we to And to that addition the that renew we up offer. every already used that to savings plenty

things Trip offer. ahead sure that And want So partners and subscriber offer every make things towards our is getting we're value to we Plus the opportunities. can renewal looking we on that

James Lee

Thank Great. you.

Operator

over this at Thank call the further There to like I'd no Kaufer. question back to you. turn time. are Steve

Stephen Kaufer

for the joining everyone you is Travel underway. call. recovery Thank Terrific.

to shareholders key on vaccines I shared drive will play big Thanks travel meaningful our a the A to belief customers continue quarter. look and a our TripAdvisor all strategy that our your employees stay get you next as and shaping thank Please years come. in ahead. years well updating safe, everyone for forward to you as their And progress in role can all. the to our of executing long-term big in focused worldwide. We value to to thank TripAdvisor

Operator

gentlemen, and this for Thank conclude all Ladies participating. conference. does you today's

You day. a may great all Have disconnect.

Tripadvisor (TRIP) 6 Aug 212021 Q2 Earnings call transcript