Tripadvisor (TRIP) 17 Feb 222021 Q4 Earnings call transcript

Company Profile

Participants

Angela White	Vice President of Investor Relations
Steve Kaufer	Chief Executive Officer
Ernst Teunissen	Chief Financial Officer and Chief Executive, Viator, TheFork and Cruise Critic
Naved Khan	Truist Securities
Richard Clarke	Bernstein
Jed Kelly	Oppenheimer
Lloyd Walmsley	UBS
James Lee	Mizuho
Zach Morrissey	Wolfe Research
Mario Lu	Barclays
Tom White	D.A. Davidson
John Colantuoni	Jefferies
Dan Wasiolek	Morningstar
Brian Fitzgerald	Wells Fargo
Kevin Kopelman	Cowen

Call transcript

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Operator

Thank you for standing by, and welcome to the TripAdvisor Fourth Quarter and Full Year 2021 Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today’s program is being recorded. I would now like to introduce your host for today’s program, Angela White, Vice President of Investor Relations. ahead. go Please

Angela White

morning, and Good welcome TripAdvisor’s to Thanks, year everyone, XXXX quarter full financial fourth Jonathan. and results call.

call. of measures Also are Executive, non-GAAP of Investor measures the In Cruise made discussed financial available Joining CFO as Relations and you’ll on filed market website. GAAP today supplemental on Steve shareholder release also this and distributed financial CEO; me and earnings Ernst closed, and other our we you’ll Chief information, find reconciliations well discussed find on most Last letter to call site, Viator, certain the IR which comparable as Critic. and measures metrics. our release, our this TheFork financial night, after Kaufer, includes non-GAAP Teunissen, on our reconciliations

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

Steve Kaufer

a in back available. come fiscal Thank lockdown. morning, still In Thinking We time I’m this of and year, long the our Vaccines with way. year, you, were pleased very good world, rate things finished many uncertain. not and recovery. to Angela, just were We’ve last our of everyone. we’re parts still

year, we its our remain saw of focused our our out our pandemic, customers the Throughout much in partners, on As XXXX a segments, year results the the travelers. position. transition stronger followed. we and industry we and tourism begin Across exited progressed,

a tremendous new opinions. a to reviews billion weeks milestone the hit and products user just of And and few for ago, our continue travelers. we X improve launch We experience

the our globe the which travelers. testament Now this from a of built, brand all is the is and of and terrific across the engagement trust that teams we’ve to our foundation

the As letter, you’ve our XXXX. across updates segments to we well-positioned for search driving had was shareholder that on We the did are chance the that successor, my New on focus hope not out can and shareholder that. fully engaged update we letter for I customers. transition. One I the we we and provide businesses execute a plans our in will our as provided to CEO of I In laid Year. areas our continues we Board you start on read through keep in innovation, our updated I focused that key believe the employees to and share and the the as meantime, results, remain continues. business journey

So before questions. take your with that, turn it I’ll we over to Ernst

Ernst Teunissen

in you, year are and levels. recovered in We communicated with of we the that pre-pandemic exited of year, joining. Steve, with We QX XX% at half And December. the about and XXXX. financial revenue was positive XXXX were the started for Thank thanks, our for setup last results one-third everyone, pleased industry as levels. expectations had pre-pandemic slightly second were the Yet the of results of ahead our we

we areas, a saw we model appropriately, reflection costs in New In future we our revenue we Year, fixed exciting with the shareholder investment. in as the managed return out maintaining As some which top our in letter. the this also see we balance flexibility XXXX, called line opportunities of savings, cost

XXXX to in revenue deliver be for above For this example, And our we to well expecting Experiences offering growth. high XXXX. line continues are

we for recently An a us evaluating to potential the previous quarter, conditions. business. with position update our opportunities confidential in is Experiences puts are which, a to market multiple at crystallize As value in submitted & of course, that SX, parallel, a Dining we of we discussed of in other sub-IPO subject, looking this along are opportunities quarter Viator,

its transition continues progress And year, segment path. segment to HM&P revenue show well. in great still expect a while we our lines as recovery in Our this all

In increases, meaningful media up-funnel to hotels profitability in products year-over-year for catching BXB our in forward, we addition up to look and particular, more sales.

to full summary, that to in the return we optimistic transition that, Q&A. in let’s to we international are to jump are particular. very strength, back and a travel, recovery So and travel consumer With general into positioned continues travel benefit that XXXX TripAdvisor in in from

Operator

Instructions] line [Operator Khan from question the Truist Our comes from Naved of Certainly. first Securities.

Your question, please.

Naved Khan

morning. good and you, Thank Yes.

levers Just of the a maybe the you some for some on see of about ROI? Viator, the investment questions. that to Maybe what – recovery recovery areas in that guys long-term growth to the have And maybe where expected talk just get beyond XX the Dining, months opportunities you XX next this couple is the you and biggest travel, happen to low-hanging you in where can segment? over from drive are months,

Ernst Teunissen

the you question. Thank Yes. for

large in last first. of strong domestic replacement business levels a of business. that we of We much. in consumption a Experiences. strong to and the hadn’t in year we which Experiences, saw – return had very a strong Experiences year, up city saw tremendously or consumption and very tapped parallel this – XXXX strong talk in we traditionally pre-pandemic Let’s Experiences business part, strong about business, so it’s into in was was a international U.S. in very opening And

Florida, the for us. and Hawaii the So we in a very River, ski cases grew tour helicopter drove strong of domestic growth on that strongly use jet Colorado Experiences. The canoe in

period spend this you effect. area, our We lot to, very We able payback get a a also, our stretching revenue huge just great little, in a a to as this alluded and marketing was flexed were success. by to more

which we initiatives positioned And about asked well have our that we’ve significant that levers various that accelerated opportunity we themselves talked profile we platform we going and to pre-pandemic our in quality in in users, a how in take really products which the the would in also the we for to are for business, our the our called created have Viator. that that the new Experiences taken gains. our only high and with Other for an best last show users. only operators Experiences in quality thing this and at you was operators, really we we more feel products we we conversion letter our great very And I exciting business So share is us, for have real we market results is in place a have shareholder initiatives, forward. accelerate. on Experiences on product, about focus These not focus on our has The growing bookings, improved them has but that this and showing resulted have, strong this highlight of to is our great A levels. one app which rate.

Experiences seeing on increasingly, on One Experiences over are trend. to app tool place or is the that the is developing we Experiences, with strides flexibility they A made And we rather are important forward. are tapping in-destination. Experiences us there. especially really, than an great have stay, and see that consumers the shift but year trend opportunity feature under-indexing our We usage, in the going a travel is a in place our second indexing tremendous and millennials, important increasing product the of one, while the – to in investing and the are last businesses critical into stay huge app book they for that that’s

our app in is that On we’re we And the capabilities. the leverage significantly so still have increasing investing there Dining, penetration.

with towards heavily indexing We are TheFork, Europe.

reservations up terms sign to, States. go underpenetrated we that user the for of to secondary, increase And the And where instance, the go user Europe those have to penetrate a opportunity a areas and the and countries restaurant still We’re we are with compared base business tertiary of European all restaurants invest. of there’s deeply, there TheFork. more cities to lot loyalty and base is in and United

is Dining applications. more more investing type of we’re towards Another area fintech exciting around

We have very the in all of leverage restaurant, And way dinner exciting where a for restaurant, – integrated a area for launched have app app other the in loyalty. a your on you’re and allow service we creating payment pay the word-of-mouth which is on which is with cards, the us option of to market of and pay gift the invested the great stickiness penetrate provide. the further we to when that

more products, UK, towards markets, where penetration we’re fintech deeper So are investing we’re into in. differentiating under-indexed, Germany, levers markets

of advantage for competitive market. we ahead we businesses, have of of Experiences position of still, both ahead XX% in and, And TAM us. a the huge think those really a to huge take TAM off-line us so this

to And long-term shareholder shareholders. bullish in so invest businesses in we and value for these TripAdvisor both on as continuing we’re highlighted our creation And businesses. for letter,

Naved Khan

it. Maybe said Got on clarification something earlier. quick a you

So the or some IPO options, mutually should along necessarily? exploring potential Viator, exclusive other that? you’re not for think they are we about with How

Ernst Teunissen

Yes.

sub-IPO options range option do have as for this confidentially, a have. today we’re evening announced And to early We an That considering. a year. of filed, a We yesterday to have in as puts somewhere position we Viator. great a or SX that us that’s

option. highlighted things We’re an with different, and this is also consistent Yes, in other it, but at some definitely we more that parallel. attractive some looking one it’s

Naved Khan

you. Thank Great.

Operator

Thank you.

Bernstein. from comes Our the of Clarke Richard next from question line

question, please. Your

Richard Clarke

taking questions. my for Thanks

first both on and your been for terms one the Dining for business. Just Experiences trends, what seeing last in few hotels you’ve & of weeks your

commentated you’ve weeks reflected and QX? guidance of of maybe other just have Some getting for are companies off couple eased that And the better. kind how into the your last Omicron’s things of

Steve Kaufer

Richard. is Steve. this, Sure. This take I’ll

eased some pretty mean, seem We I off in January have were and the tough travel can to have seen that Omicron comments industry. the does January. of December and echo

what everyone that, a in hoped has have we think QX. caused that’s issue would for I seen material for and

in days past. we to certainly forward-looking statements of if what we’re many make we a reluctant based two encouraged, or week upon we the see or recent very but by – look but data, We’re

Ernst Teunissen

year. and But issue. positive impacted about the are of clearly by up. particular impacted and But about trends is QX February saw makes by quarter, January is you been be have will highlighting, we January December it looking Omicron, put us if in much first as And having a we to Steve stronger, that the said context it seems that impact. January incrementally impact. what January, and But the

Dining, there at February, In and February. Experiences been clearly significantly in was also has easing questions about terms performance in strong that your strong Dining moment. into Europe, impacted January in Experiences And of, specifically, too. now & the very is

up February. are things So looking in

Richard Clarke

Is offering. just to Experiences put investment into your a but as going going to you’re just In leaning core Thanks. paid product I Hotels one Or and into ask shareholder follow-up. Media also is into resources those And search? not could Dining, more if there that mentioned areas you well? into letter, & reference – the your some

Ernst Teunissen

resources we shifting come back, year were We some we’re shifting that HM&P we more large, less are are portfolio and our around We towards There on by the we’re inflationary resources as investment hires, incrementally the waiting there. total we is called this is making But that. The Yes. – quite is fixed we to that by BXB for shareholder pressure business. in out with letter. our quite increase were on instance, for And moderate. wages. And limited. our focusing some re-launching, resources within addressing but in making cost in pandemic

of going the drive resources more that the to is in parts year. revenue core there business the So will

Richard Clarke

helpful. Very Thank Okay. you.

Operator

you. Thank

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

Your question, please.

Jed Kelly

Hey, questions. for my great. taking Thanks

were circling it doing you your the subscription, pretty U.S. And back the Experiences how I a in gains Europe was you to then it had strong on is just and mentioned rolling Plus in when you last you out, year, discounting. Just Can on talk different including Experiences, of regions, just know lot business regionally share APAC? first

you. How you’re just So have how managing that alerting you churning the those year? off talk last subscriptions Or occurring? people people through $XX received that that? is people? can renew? Thank discounts about you Are Are

Ernst Teunissen

take I’ll one first Jed, on the Experiences. Hey

a global in in Pacific. we Europe, is business America and North Experiences Asia Experiences business, Our have And in

Our audience English more our – have speaking. points-of-sale to skewed

side. And is city of Europe an terms market So U.S. point-of-sale instance. the experiences where and U.S. shift historically, to lot grow the to had of trips, consumption. coliseum us, in POS on UK year domestic city we travelers international American trips What U.S., make strongly, making saw in – still a we’re now on tour U.S. and we for going We last and/or do towards Australia, Europe year, was strong Rome, point-of-sale or last the coming UK, room have saw very the a seen for trends back. we opportunity where And historically. a

the increasingly, we coming the of seen it early have at year, so year And this international and coming end travel back back Europe and back.

of makes And domestic so domestic is way this be, will use captured international year, users is that some to our well domestic expecting audience that U.S. consumption Experiences us year. of some U.S. increasing last so recovery that business international believe sticky. about business to in extent, we we case to the as demonstrated our And a really what making. we we consumption. have will But our from as be are an that Europe move trips enthusiastic There that also strong consumption

a of highlighted well, strong bode for were in with things we’re the up year. combination some all I to So various strong, set improvements making product, the those that

Steve Kaufer

question. And the I’ll Hi. Plus take Jed,

would So kind we churn in I nor something. I or folks sign you have for year, a And a counsel it’s in days I try who to do into the our different us early discounting, customers in the the this handle us first discounts. fully churn set time customers, ourselves rolled would the or churn set don’t on dependent particularly of the early perfectly having of pretty might last level of in try the over remember, a But but to to on a of get year. the still be redemption. on adopters out factor other-industry lot we a good weren’t early as very read up the price – question, did variety add matters. $XX worry We that usage been mean, view wouldn’t major that of I I versus I would fair wouldn’t course discount not

Jed Kelly

when at non-English-speaking you talk Thank countries, look follow-up, about acquisitions? organically? you. expanding Or do you you a it Viator And to grow just Ernst, would expect into

Ernst Teunissen

organically. Mostly,

in and We and audience, that we’ll has with European have Europe, do a have very necessarily. a the opportunity that’s Continental tap the strong supply footprint, still – growth marketing, us, under-indexed so for we in product not much have a with that into. supply points-of-sales strong think particularly, not it’s growth. I and But Europe. – We’ll countries, we acquisitions

Jed Kelly

you. Thank

Operator

you. Thank

Our next line of Walmsley the question comes Lloyd UBS. from from

Your question, please.

Lloyd Walmsley

Thanks, I guys. Two, if can.

you’ve to like. letter the EBITDA mentions XXs the range. shareholder talked being First, like about mid Experiences high being targets of kind hotel Historically, a

kind Google of what for target letter SEO any we think we in also there’s if wondering that the margin? changes keeping to mind? Or kind revenue in of the versus from should be of about spend And that So is free traffic anything then that recovering should to your driving? talks lower changed advertising traffic faster there plan XXXX. brand XXXX past in terms about in Is

Ernst Teunissen

Lloyd. Hey, questions. both take I’ll Yes.

of that healthy. outlook long-term past intermediate On in that, high go for the the businesses first to very our said said one, long-term changed. E&D economics sort of beyond are And really no, both but could hasn’t The they which as We we’ve mid well. XXs, goal.

have take is take which Experiences, rates in the we If very mid-XX%, you healthy.

that level one of have on the cost microeconomics structure rates our are nice We see base, to as a OTA a cetera. well. is hotel business. And We repeat attractive comparable in the user et consumer

very And so economics are healthy. we think the

we that margins And this kind development hotel going we that those believe, so market that are area. in long-term. of their to a OTAs ourselves business and benefit, we historically, of think we are for target leader as long-term the we being compare to can And

that very a more that model side, is On the can around seated restaurants. nicely different, from a getting on bounty scale And model. per economic business the diner restaurant focused that’s slightly

markets. expansions you in the that. in to We are currently I about talked investing

customers. rates The of so attractive that for customers acquire NPV. Dining our nice acquiring a business are we repeat We’re and generate

and we’re leverage expect building that see model in forward base well. so And as as going forward, go we real to that

getting more growth. the are good bottom and advantage near-term, than growth So position we focused of more line TAM we’re taking feel the our on But market the in highlight long-term. on as top on about focused line the growth of and and we

with in faster free we free traffic have CPCs of question, in the than our has our paid seen It’s function in towards recovering a other or free allowed traffic our channels a channels. free that on which in coming traffic. total Your we’ve we the paid. auction highlighted on has, Google Yes, in channels more pandemic our largely in traffic. very than And paid mix of to, number U.S., our that that turn, faster marketing year, last second because pandemic, core shift paid that shoppers of and us saw in spend called lower growing has the and more and we’ve still a particularly portfolio healthy was shown out, marketing from

as pandemic ahead and back we’re more this towards levels. the to traffic partial getting expect a, normal, but unwinds in of as expect free paid that a we the closer XXXX, in revenue balance historical As levels. to shift And – full, we get and to grow rebalancing year, such, to more historic not to

In brand last of that been course, TheFork. budgets spend, in plans don’t We have have was spend any currently our for brand brand have spend bigger year terms in doing of some we to historically, TripAdvisor. to for we – return around And brand spend TripAdvisor. significant

Lloyd Walmsley

And of anything mindful Ernst? on Google Okay. be SEO, changes to

Steve Kaufer

Google as cite the quarter. further any can’t there you’re push else but This a is aware, in to I moves changes. continued everyone big say, past to much continues be Steve. probably I’d down the of pretty over set list, organic

Lloyd Walmsley

Thanks, guys. Okay.

Operator

you. Thank

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

please. question, Your

James Lee

of Trip couple a A questions. Plus. follow-up Great. Thanks for questions, taking my on

bit, for maybe shareholder understand supply? of of the Or expected. are us curious, Maybe can or understand what you terms Help your the us what guys focus Is the not are you that the also a And making Plus that surveys. have done in And people guys little little help I’m as your you’re reason about you up sure bit lot key progress consumers uptake on not a also talked key XXXX? benefits consumer behavior. statement for clarify offering service? of to a think signing Steve. letter, membership? the on I much

Steve Kaufer

the Sure. Thanks question. for

recognize were number of and across learning on discounts at and you But So for has making some the on the expectations, resonate believe brand for. our did talk in we biggest would the Yes, can than subscription traffic Plus some see vacation changes. a still folks kind as of about product-market that hugely at that we’re pretty rolled you in did we subscription invested – say not when look that the we have this I’d were plan say, the we’re to had but to nice quite with travel the the the their found faster we I TripAdvisor, haven’t and site, meeting fit we as shown. trust a looking that, product And that supply some board out. point, challenges, markets XXXX we work. looking travel us,

So point surveys, our as focus groups. do you we customer out, our

the perhaps, And actually, decide. with bit for things are a at load the we of is – travel makes that purchase more I us, customers subscription a signing for than savings, ready to this is, decision hotel same that get to purchase, intuitive the share people to time, can service the of down path decision sense. some make is telling that that the a big One up big the as customer hotel while

whether you. real am whether expensive the travel It’s saving And going not where a have I you my subscription. an It’s big right this to vacation? but for for stay buy is to one purchase. money, it’s hotel a just If they’re yes, choice,

way things of And a a have say, buy so where as higher consumers fair quite that trying the points. we’ve at value look in hopper – gotten, will respond we’ve travel have yes, present to volume. the things it’s a subscription been feedback look been to we in we customer ways proposition to we different the I different to some few a presenting think that we to opportunity other say, that at And this to find that the

consumer So TripAdvisor trust the we and were in subscription we’re very to all And share you. too of capabilities tried in still shareholder upon that a optimistic the the based XXXX traffic that learnings excited the with about to the travel prospects has is that offer. letter But and uptake. we of that

James Lee

new right. Steve. All a can ask If a Thanks, I CEO follow-up search. regarding question

for, Are the and was curious you you think you criteria? your previously, you expanding executive kind to progress. changes an any Just I looking were said search wondering that? I tech travel in with background. guys of where are potentially,

Steve Kaufer

be look, in the there’s very No, time been smooth Board, the it appropriate ability description. change thorough to very any given them frame evaluation. And The I in wants the job finding with thorough transition. good for of think I’ve don’t ideal be then be their and obviously, my – and could a reasons, to successor

for anything hasn’t is read be it’s candidate of you going wouldn’t still been no, tremendous long. perfect. that and someone The the all the I yet. brand things with fantastic a company e-commerce, on mentioned, – would criteria So travel, a into with the lack a And search

James Lee

Steve. Thanks, Great.

Operator

you. Thank

from line Our Deepak Research. next of the question comes Wolfe Mathivanan from

Your question, please.

Zach Morrissey

Deepak. Zach is on for This

core platform you for & as Viator? long-term kind kind they how Viator, of then Is target long-term kind of margin in margins? Dining or meaningfully difference Are to E&D like, those between is the options various think portions Thanks. roughly about to And of business. of XXs, important of different the mid the any the of business. there kind Experiences meaningful the terms same? you high the for for outlook different long-term appreciate growth of kind on Just the explore the do How TripAdvisor I

Ernst Teunissen

Deepak. Hey,

point-of-sale. is the largest the the by is TripAdvisor. the channel within our fulfiller of component Viator A sales TripAdvisor TripAdvisor is significant, the – portfolio, that the channel far, book In book directly That’s revenue, where of the book, smaller Viator, Viator’s people the is portfolio Viator. point-of-sale. point-of-sale, TripAdvisor largest app, for go but terms Viator the channel. on for and of within the It’s revenue to viator.com Viator Experiences.

third can someone fulfilled through fulfilled as So that But And Viator. an gets merchant then with Viator has The Viator. of is that channel range book that’s us by And other gets experience on with. much integrates Viator. gets third, important as Viator is and parties service different it’s a Customer an channel. the growth the by well. well. of record, smaller done for long-term channel arrangements And tripadvisor.com attractive

important vector, travelers to TripAdvisor, is becomes important that to we look and for For things our The Experiences an strategic what can TripAdvisor really what the brand. for and in do. Increasingly, out they’re with do company a fact at perhaps in market – the figure it as when to they there. And length brand brand. a TripAdvisor arm’s later portfolio the relationship focus strategic is grow for is for Viator TripAdvisor our TripAdvisor a has more important ambitious and goals have and channel its interesting

as in will that Viator well. from future the so And benefit

long-term very I I similar marketing differences, your terms very attractive businesses out like take margin to the highlight very in question I profile users. about that profiles. – which with long-term to roll what really have compared attractive is the to hotel and industry, economics of are supply rate, of said, terms In a is, of would both long-term attractive Experiences what

setup in that believe And going forward, attractive particular. so very I is

Steve Kaufer

questions? Does that answer your

Zach Morrissey

Yes, you. thank

Operator

you. Thank

comes Our the question Barclays. Mario next Lu from of line from

please. question, Your

Mario Lu

question. the Great. Thanks taking for

reviews Kayak cruise new you month your with to billion, your earlier and also show to of partnership terms a reviews announced on X this getting its in So website.

just beyond could X billion benefits this you one, elaborate better if on in wondering externally? the monetize two, reviews partnership? just cruises to you. these And future, this Thank it potentially then Trip? And So could extend how

Steve Kaufer

Sure.

to and be we’re additional the their get our hey, very Critic industry. does clearly, and about thinking obviously, to Kayak to sub believe reminder reviews powering I relationships be can back, and to Cruise Cruise everyone to the testament how what cruise they tabs. our network opinions, the much powers gain of the Cruise to Kayak cruise? offer users And a to more to information just – the cruise to coming to expose customers the to is in And you’re Kayak Cruise here, billion subsidiary or our be for Miami Critic talking great cost about, might for effects company of able that those a Kayak way able Critic So when of proud it it. take my power access

is strong company, lot I perfectly would these together. So good of too of a sure more of Kayak a the the I’m not very that are rest notion traffic, much TripAdvisor. why to powerful into read

Mario Lu

Got it. Thanks.

Operator

you. Thank

White the comes from next question Davidson. D.A. line Our Tom of from

Your question, please.

Tom White

think focus stuff? there Airbnb due Is like it guys formats But to that your in call subscription new that share with Or your you or of any new of of just should thoughts. Great. Thanks to like long-term for differentiation I the you do Experiences? that guys they’re subscription going on my to long-term, that said the on you long-term maybe BXB Can Experiences, taking revenues how first, just slow XXXX. on the a mentioned on elaborate of nature if view the needle? for strong question, in move And you Two, that on guess, that kind should you more can a of Ernst, guys. I are products some build a or ad maybe just might. due having recovery bit? Is kind of then of space. kind I think be Plus in win stuff competitive earnings long-term stay leaders other about supply consumer their renew their Trip, on be Thanks. hear up Experiences product I’d breadth? curious the parts of maybe – that? Is linking experience? the their to one it we

Ernst Teunissen

on question first the our Tom, BXB Yes. business.

recovering XXXX we to compared And So very other in subscription in that this XXXX. were as product. shareholder the relatively of business the pandemic, throughout was well recovered XXXX, is, our hotel And parts revenue, the TripAdvisor business you is its that XXXX, a graph that doing throughout – which see see the and as you but see percentage of business of a which a nature nature of the we fast. subscription business as largely showed some, to letter, business. the line other-branded not the the of our subscription is And of in percentage you the business in again, the that earlier

currently rebuilding capability now for product. are also this aggressively force our sales We

we rebuilding sign in this you’re as right not if that the that. point that capture force sales and subscriptions, of the trailing pandemic, XXXX will course, a the be this Of expect. up revenue did we much during recovery are because recognition out, we to to in we effect, But Tom, correct now invest lag that has

like as to we – way experiences integrated a recognition overall well. So sales a travel the this an And the marketplace, to be differentiation, Then catch further think as recover with we as into this back recovery, market. trip target we’ll a use But marketing in terms believe that of there and recovering add-on basis. does as the a experiences fast trip to snap on up that on will basis is we of players TripAdvisor consumers. about are a be will long-term not move going it a revenue an continue full business their to trip,

that be verticals position supply, products comes supply for to that differentiation differentiated that And to just marketing breadth room a there a our in we aggregating there the of XXX,XXX and have Experiences believe the a and we for pure-play competition, experiences we have want that with be fantastic – experience. to we will player. recognition that to, one our positioned to book we that that an where And be that positioned that’s of believe are – today, We brand pure-play is like way the And as you about And long-term experiences users space brand OTA Viator but also you exciting that we’re really other emerged if capture space. that’s providers, place go we’re there space in a to have breadth few competitive uniquely capturing. travel. going of believe

differentiated. very integrated think, that we’re more TripAdvisor. to we going from the both it play combination, we that plus angles, And from make is angle, So be that with playing

Tom White

guys. you, Thank

Operator

[Operator comes the question Thank Jefferies. Instructions] Colantuoni Our of you. line from from next John

Your question please.

John Colantuoni

my taking question. for Thanks

you’re you’re ask just but help expecting initiatives? maybe fixed about variable of cost cost savings. in cost just Just savings Maybe cost forward savings E&D. million the outline majority you and versus It total HM&P, wanted spend out in through could $XXX what retain going to fixed back into to growth in like expecting sounds to savings, of portion retain walk the Thanks. reinvest

Steve Kaufer

Yes.

this it’s I that of we us allows seeing. be et letter, helpful, and will better HM&P disclosure what shareholder believe split for very cetera, what and think that hiring about our investors, $XXX improvements, in inflationary by out cost $XXX Of different it’s we’re in segment. that which clearly sales million modeling but HM&P. is the you, different modest. fixed was and to that of within the that’s our cost because million back, see trends, variable gave segments, but allows analysts of And with modest, we’re additional a fixed about we force, we for the we that in talk And highlighted we’ve bit cost very adding was pressure, some

come. but the fixed to development, In us revenue cost other, product we’re our out by increases. going development, large, million this our supply reinvested be And into came savings, other. wanted is of minimal million And costs for the making letter very we out to And year are to we there, and of and of that segment. the the positioning E&D remaining sort driving that in organizations importantly, very in sticky. so well There, in cost think for technology We’ve more reinvest. in the those of came highlighted majority $XX years about shareholder all capability also year, $XX

those as savings well. are so helpful. I that’s hope sticky very And

John Colantuoni

year, helpful. very Or travel to some of maybe Yes, Thanks. year, quick it is spending the for at recovery wanted just spend clarify to pre-pandemic the one And in travel anticipate spend. we’ll point half, recover will levels? second I the levels? Do to pre-pandemic full that one during the is spending expectation return on you here. the and

Steve Kaufer

Yes.

We to January with XXXX we XXXX. And we point assume obviously in path a there to bullish the travel return market. year, from progressive and be in But a finer continuation of the we expect to we’re which we started levels, expect relatively to XXXX. travel So to impact leisure continue without point a started on normal pre-pandemic return putting see it. about this the to some to And in expect levels at Omicron.

And follow So second as particularly, a similar result, of we our the own will revenue that that our statement, in year. a be as half-weighted result we business, full expect highlighted, would the our look – look as as pattern year. throughout EBITDA, – a will recovery as we you would be at

John Colantuoni

Thank the Appreciate you. questions.

Operator

you. Thank

line question Wasiolek next from from of Our Morningstar. Dan comes the

Your please. question

Dan Wasiolek

taking the Thanks morning, Good guys. for question.

core business So understand the platform is to the tap Experiences the investment I generation of one the ability cash as purposes. hotel for for your existing from it, advantages

was you generation sub-IPO needs that to the would Viator from the for route? decided so the is that the be for future are considering able platform Just investment still wondering, core guys potential Experiences hotel use regarding build cash that thought you to

Ernst Teunissen

IPO me financing My the specific market about not a a business let Part means of have structure, the take of you and business. just how lawyers too of would a be financing that the IPO. more would But independent be independent general. advised what independent of – me such the to to

Dan Wasiolek

one Okay. more, That’s I could. Understood. just fine. And if then

and the of So me. I’m for rate U.S. if if percent penetration in like for regarding, Thanks. booked that’s guess, the give online, know that that’s can wondering Europe? it or I dining then you And you in a

Ernst Teunissen

it is make on their tools people Europe. to that do great And also call on habit we off-line, grabbing is we app have off-line. we lower putting like the that getting done providing and a reservations reservation market marketing In of service, it, the through booking, is tapping into a programs, into, Without in a dining we them. but of points, are TheFork that Europe, is Yum loyalty finer in point lot particular,

integrating, the cards. app as We’re capabilities with I gift payment increasingly with on said,

making booking a there’s flywheel Europe. creating online a we’re habit, which we’re that so of runway And successful think there at, in long we and

Dan Wasiolek

guys. Thanks, Great.

Operator

you. Thank

comes Our Wells the from Fitzgerald next from Brian Fargo. of question line

Your please. question

Brian Fitzgerald

Thanks, in couple the to We wanted out improved parse the Viator. guys. you A called letter. on experience apart

supplier and standards. mentioned quality trust You

the You to culling Maybe base larger more access Are just those customer it flexibility, and off new the plan three a contemplate less also between you things synergies maintain or Is it business the supply? Viator service. said and of a those? would might be you you as innovation? a it have Is function alternatives, booking then Trip’s POS? payment Viator how to on it’s of all ask, performance tools operational And premature Experiences and to but of suppliers? wondering bit IPO other of

Ernst Teunissen

supply. less been Excellent year questions. adding The on push over more much the last has

towards We that we TripAdvisor we how believe And TripAdvisor? on have to and had how particular, have a pandemic, that really Viator on significant supply. a We help make operators experiences we in in profile highest make was reorient on one description the was use how relevant which can much the is exciting. – we’ve help the supply more the case we and was they’re Viator, How areas a that can on, is the can pandemic, big have we job better convey that an can very domestic the U.S. operators clear experience. themselves has why of the what experience. use, these quality They we area. highest clearly the them? suppliers, experience these very which It exciting Other it’s that been call focused the And quality? we in on

a products. will much been those We those have rates conversion help site because that suppliers and in it better helped not that high conversion products of than you have surprise products a that privileged are And our that’s improve huge are our on standard to not.

particularly we been, the that our Accelerate the help about that. quality big has great that focus and success, better we are on And high are really is is how they implementing we about operators to with been we give disposal, on do have operators Viator they in a how trials, improve program, us, do and big content in year that for I very which are there. throughout privilege and a with site on instance, our piloted talked helping So operators profile their themselves but rolling success, push. levers the their currently XXXX last to which upside a That’s help at huge play that excited with sell. rate out take content,

area. the area important have an those some the mentioned been focus important I as app, well. of focus So is which

again. we better back how is huge so of we the case we on. for use a users same focused book us really, come the area focus So the that the many huge Experiences. opportunity a Booking Other present on focus how in we’ve runway, do think, they been as on is retain in and big do trip

another they’re trip? even important communicate booked communicate So someone’s our have so That’s stimulates back? can a then and they in to do But them a with experience already we an do And traveling purchase way certain how how we we come How same people a know that? with users we that make that, on destination. that repeat area improvement. beyond of

up and the integrated business, TripAdvisor, of – In having with and TripAdvisor a a teams the sort as between operate which currently Viator and as core terms customer intact of is different we sort affiliate set which with Viator an customer, user experience. team, the of the total operational are synergies Viator that merchant TripAdvisor TripAdvisor includes

to And separation And so for business. we teams a already businesses significant have Experiences extent. a strategy of different both the go-to-market have a

businesses carved And so already internally we’ve out businesses. separate these to

Brian Fitzgerald

Thanks, Ernst. Got Appreciate it. it.

Operator

Thank you.

Our the of from comes from question Kevin next line Cowen. Kopelman

Your question please.

Kevin Kopelman

type gotten of saw you that to Great. kind recovery Has back on October? to color Could Thanks those us February? in a any – have if revenue that in and compare XXXX, give you we minus consolidated levels February that XX% lot. more Thanks. you the

Ernst Teunissen

maybe you out. February market impacted the to net improvement fourth In in be let put a the from a point board, on where Dining We’ve Omicron. me now the in in – business Dining XXXX, the we of done. the February you impact. cases our see seen the have business, the quarter to our far, very given Dining the roared the very with January, elastic also and from as But we indication the to the of our been in consumption And leave that when most again. and – auction. across of all well. any in XXXX COVID in seen has COVID we’ve dipped January strongly elasticity finer that want business there come to hotel an COVID has don’t proved it the particular, we’ve than fourth expect the right business in in produced, the in quickly. back the they I Europe of cases summer as rising, our quarter actual can see And on half news some businesses quarter or already that elastic Delta by graphs Dining cases. market in back January, reverse strongly We so have in restaurant it we back business were with, was we see already And

back. the And the the I board and So in has between now January, significant difference in that across forward-looking significantly impacted want leave statement at to resulted February we it was coming quarter. which about made that

Kevin Kopelman

Okay. Thanks, Ernst.

Operator

to like Kaufer any remarks. Thank hand I’d conclude Stephen further for session today’s to program the the does of question-and-answer back you. program. This

Steve Kaufer

find thank All who to navigate you, teams are the and tirelessly world these fellow our and help periods. thank working right. with travelers, through the our bright uncertain and around to partners our you still to Well, spots everyone, hospitality everyone

we’ve mentioned, recent. some As February, but seen that’s relatively in nice just Ernst signs

year We year. course the that wish the of a good and back nice and XXXX. to over booms about you seen the course remain very to thank of course so be you coming the day. resilience the we’ve We much, expect the recovery the the of a things expect over we and reiterate, optimistic We industry, far over

Operator

conclude gentlemen, does the participation for program. This ladies conference. today’s your Thank and you, in

You may disconnect. now day. Good

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