Earnings call transcript Q2 2023

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Operator

Good day. And thank you for standing by. Welcome to the Tripadvisor Second Quarter 2023 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. advised conference be being Please Instructions] that is today's recorded. [Operator

ahead. the now VP to go like would conference of to Please White, I Angela hand over today, your IR. speaker

Angela White

welcome Thank to results you, call. morning, Tess. everyone. conference Tripadvisor's quarter XXXX Good second financial And

me President CEO; Noonan, Matt and Goldberg, are today Mike Joining and CFO.

GAAP market on measures filed the after and call. find you'll Last to release, our most of available discussed the reconciliations night, financial financial made close, we non-GAAP this the comparable In measures earnings release.

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

that, With call Matt. to over turn I'll the

Matt Goldberg

all thanks this us Angela. morning. And joining for of you Thanks, to

consolidated branded under-penetrated, second size the our we outperformed on expectations, reflection We to brands which experiences a lead surpassed we driven of basis, a the in time. the For growth offerings delivered fragmented healthy nature by first notably believe position category. and Viator this our this hotels XX% across travel revenue and quarter, our revenue group, TripAdvisor the growth, of for as of high advantaged our and is leverage in our the complementary market

range $XX XX% we quarter. last within was revenue, or the EBITDA adjusted million Group provided of

this are executing our our Tripadvisor our across year our leadership with in world-class repeat progress products in market. European focus engagement-led improvement restaurants by monetization dining to Viator, share. Core, make experiences position the and the strategy to focusing we're we to both segment our continue capture healthy bookings we driving growth products, reinvigorating more investing value to At teams strategies. significant paths. our by diverse guidance reinforcing diners on market enhanced and as fuel on by awareness, At in on margin are TheFork, At Importantly, leader delivering

line Within delivered performance the meta. strategy. upfront details branded the but seasonal to hotel a in a with in were the of exception place hotels it's in Tripadvisor note segment, pickup in the expectations, this in shortfall remarks, revenue our results cover with to important our that Mike we related Core of his quarterly I think lower will to context European

strategy we've five are financial at multiyear as into time the TripAdvisor. shared take months And a materialize. We previously, will impact to

in execute, still and encouraging days, on we're continue our to highest seeing our we we're as While momentum reinforce already focus priorities. will we early conviction the

we position discipline how help deliver to year aligned next, will annualized achieve within the with At for our estimated strategy, is actions cost will are to provide operating our plans. we This of balance future. an time, financial actions the with To million initiated we on $XX priorities, the our flexibility this and we us to have and expected in longer-term invest result savings. with same savings in organization. These believe strategic

into better experience. opportunity our to data pleased highlights deliver our overall proprietary our and AI itinerary of a recommendations core receive we a late-June, been on feature, best-in-class consumer includes progress the trip-planning a In to upgrade combination meaningful We've along making with initiatives. Trips, to advice which trip-planning of generative to integrate on itinerary travelers LLMs new we AI-powered of unique based introduction trusted real feedback, positive launched strategic the leverages significant We're our which and believe This our content. product. and travel fully

other already historical early positive our average are this providing feature approaching with often monetize site-wide visit from the metrics to is times casual rate times and travelers completion similar While signing in for times feedback feature members And which individual meaningful travelers at XX they site our an in non-members. two our satisfaction conversion are input to on internal beta, our and generate higher We The inputs. saved scores nearly to data rate still as of structured our four promising, at to trips. than XX% user to public the itinerary at visitors engage that members, are approximately times four recommendations, when approximately average. know more with is convert

And beginning. this only is the

team. extending drive and ML hotel features tools and to with robust additional to product our in our from We've Android, that an strategy improvements travelers. The UX, deeper editorial community example to to guidance AI also trip-planning on our tour submission engagement is tool app mobile flow both it and a our roadmap content iOS our and destinations, our scaled these and of expand rollout together recommendations. have leveraging we to forward, bring integrating delivering includes Going and of

a a result, creation seen membership have As we signups. and in itinerary new traveler saves, lift

continue meaningful both saw our nearly double from engagement, conversion, last number profiles, progress initial Viator, group-wide data how cases, the including We in use quarter. customer on retarget shoppers uplifts TripAdvisor billion revenue. platform, to also two and traffic, We make experiences we tested across and has which and now

of strong ability best that momentum where marketplace, QX their meets see travelers the the in from guide our to We much experience TripAdvisor needs. came experiences growth to to our continue

year. exposing traction redesigned discovery, experiences the the to over travelers we product bookable Specifically, than XX% period in improved more we did and pages same last

Viator's TripAdvisor's to lean across combined with consistent and exploring do, breadth supply to leverage is things complementary unique of while our the bookable strengths; guidance ways to depth content, This as fully strategy harder experiences paid free our of platform. into capabilities our with leading

be relevant the our We match marketplace to with ability demand to able our future. extend other we categories expect will that traveler suppliers to in

available leader. to creation drive a leadership to a market Let's shift on value significant mission is business, category to we where Viator, been we the believe our high-growth and have that

came executing speak all Across our are $X expectations, in leveraging XX% path all points was do approximately value incremental we investments Revenue delivering loss are which across gross of which capabilities higher than year-over-year. XX% on sale, the themselves. making. million, growth teams to this group just to with Adjusted for QX. assets despite growing and billion saw EBITDA booking results year-over-year, $X.X was grew the in than our tremendous expected or even we better so, and Our that we

is and Our us Viator revenue immediate significant to leadership. a and position investment puts at category in sustain long-term delivering growth,

time. improvements also been confidence outsized awareness repeat brand margin areas our our unit has driving and delivering Viator rates, with driving in which repeat gives our in focus meaningful on us potential One of growth, bookers of and acquisition. customer We're economics over increasing

opportunity from book booking shift have we Viator, We single, experiences. an the OTA to disjointed traveler awareness to category a alongside experiences, tremendous for place often and can and build behavior, sort, our a experience, drive We believe it. convenient brand to and see, to

to and and is deliver of at signs into improved travelers, of experience, experience. Ongoing brand and are the We're a our the enhancing programs traffic across and on and traveler traveler This and to checkout positive. decision build seeing early the scale focused long-term direct advertising, awareness a metrics launch faster, the also partners, investment, such last suppliers. brand in our Since are We're delayed contributing related clear like searches. investing We're our critical but example we're improvements economics spend branded aimed the operator easier app value more to despite the growth profitability. customer to points improvements as fall, in in conversion. board

feedback experiences previously point the We're exploring ways our represents we supplier more our program, TripAdvisor and operator to suppliers. of to complimentary of to We're lean half our higher listening for GBV, We take making and as also sale, improvements leverage than Accelerate, now we mentioned our value to to rates. well as contributes these gains brands. of how strengths drive which into

at Finally, in achieved improvement, to profitability the on the a combined meaningful of XX% XXXX. TheFork, path margin achieve back-half business the revenue putting year-on-year with growth team

number of TheFork On the our a to loyal restaurant relationship of through one platform differentiates supply a to TheFork value partners. demonstrating diners. on and side restaurants by quality our increase trusted marketplace, our clear is the priorities with of brand

software ERB restaurant drive incremental marketing in improved and Successful conditions market that revenue margin sales to them multiple combined have improvement. growth. and tools, relative analytics, help with execution our year promotions of last restaurants addition, In net driven purpose-built with months priority provides geographic markets consecutive

usage On the on diner repeat the increase platform. on demand TheFork enhancements focus side, that we continue engagement will acquisition to to and

to continues app key profitable growth. be Our for channel a

this XX% at grow installs we far so, And have year-on-year. seen year over

believe portion across is our addition, from to of profitability now time. In than three-quarters more booking, of network the diners over we repeat will contribute TheFork which bookings

year, the we closely. of to health look the monitoring we the consumer of As back-half are the

travel. that see We and continue patterns to consistent health indicate

data plan and of length stability customer Most more to a to Tripadvisor with hotels, travel site across ahead book indicating of rates, in on opportunity see is of behavior search to planning, traveler continue serve stay. from of meaningful encouragingly, to Our we the which experiences increasingly the their core reflects quality room experiences travels they trip.

our this strategy, and and interest bodes believe well position. for market continued experiences vision, in We travel

close, I continue their we for a want transform together. teams I commitment our our thank ongoing Before business take to as to to moment

a to category points at profitability TheFork. the Tripadvisor, path proof at experiences strong growth at market encouraging have and We leadership and in Viator, clear

of None paths is all We And, continue have strong our road about ahead. am execution. easy. to these who grateful demonstrate to conviction the I colleagues,

to turn I'll Mike. call over that, With the

Mike Noonan

expectations everyone. second-half indicated. All period quarter to commentary Matt, of for will XXXX results comparable relative Thanks are and rates of the the I XXXX the color segment otherwise including the unless in and good review for the year. second and growth some provide morning,

in we adjusted line rate was Consolidated XX% and was that our Now delivered And XX%. an basis. of constant represented $XXX for results a on currency quarter. or million to million revenue reflecting XX% the on were margin a growth expectations $XX QX, EBITDA with

both continued Viator Our experiences at results reflect performance Tripadvisor in and strong Core.

to expectations year-over-year. for line $XXX quickly delivered than Turning second performance more This segment of which though hotels our branded in X% Core decreasing growth. was Tripadvisor quarter, declined represented the million X% anticipated, revenue the with

hotels, branded hotel offerings expected. performed our BXB than better Within slightly

see U.S., hotel comparison. anticipated the expectations However, meta, as well from healthy strong travel we of the result domestic single some in we decline our we line as execution a reflected which did and market. with of our see to solid performed in In the APAC, performance team across In year-over-year tougher continue pricing geographies. uneven digit a as low U.S.

hotel European revenue expected paid were due our the larger in In channels. meta, lower competition and increased than delayed peak and seasonal declines to

click season volumes May driven meta generally is paid had and quarter. competitive by Although in paid did typical the trends patterns we the saw not peak environment on June. July, we season greater see channels, summer volume more European healthier in in our impact our a revenue Because on

chose over We prioritized to and maintain our specifically ROAS profitability growth.

Our another evidence unpaid seasonal in to see experiences a our with Experiences lesser and underpins had followed in with revenue Tripadvisor performance monetize growing to channels strong patterns, growth quarter, provides strong the category reverse in but XX% similar we Core. offering the over Europe growing The traffic this XX%. a the ability extent. dining of at

period quarter Display a growth. solid revenue of another backlog of consistent and had growth with platform XX% marking

declined Our for our revenue Tripadvisor in other revenue, year's over remaining revenue. of cruise as or half and as EBITDA and last expectations back-half headcount lower marketing was increases XX% the of hotel Adjusted the of flights, little which X was well the than continued offering meta over of of by lower approximately to X% And, de-emphasis at the cars of below phasing in $XX margin from to million points XX%. grew growth due quarter. were The continued the while our quarter. increased to margin expansions last to percentage hiring our is Core the deleverage slightly XX% offerings, well offering weighted the A as of pressure due is due year year. period comparable impact performance rentals,

approximately grew XX% XX%, basis, Gross than primarily Turning driven continue approximately our recognition $X.X geographies, meaningfully customer timing, which a refine growth billion due higher was gross constant to as growth bookings to to Revenue rate demand only higher million, gross $XXX Viator, teams than increased currency was the as across journey. were improvements well by also was was expectations. and reflecting or take on growth the our strong conversion of rates revenue XX%. These but booking results and to bookings not as optimize revenue value year-over-year.

which from Adjusted of in $X impact year, performance brand or revenue, for last continue the EBITDA percentage -X% the segment of second-half lower marketing of revenue. a to versus and the spend, We we The investments back-half and loss the and of deleverage comes percentage largely million, one at Viator lower our the as campaigns percent offset point QX point of expect was last one of started year. headcount brand year. of costs

We pace each We retention than of that performance increasingly plus marketing our higher are see of the growth successive pleased that reliable is stable, reliable, expected. can greater deliver larger at with continuing repeat spend, repeat revenue are the revenue a expanding bookers. cohorts deliver new a customers new rates, with contributing behaviors, cohort new of to booking and to result is we predictable very profitable bookings. foundation which has customers rapidly These

to tend Repeat well. bookers as spend more

at repeat channels bookers gives margins than a achieve and we rate confidence the to very that Our first a This booker, Viator. customer with average through And successive item each higher higher us repeat can long-term purchase booker more unpaid value. booking. come solid great behavior us at on at average items

today focused the However, leader large experiences a are and building we durable on in sector.

We to across user will and business, experience, mobile. all profitable continue also only in large areas building supply, not customer of in but cohorts, invest in the

progress making on all these are areas. We great

million, was and impacted strong Bookings on due grew was campaigns as comparison the $XX or XX% At of X% as last comparable recovery basis. to a approximately year's year, period. well brand tougher in currency dining last TheFork, versus XX% and revenue of post-pandemic timing by constant growth

subsidy the QX-QX in last -XX% year. with segment was in light improvement planned leverage of between received investment as the of EBITDA of same year last million. revenue, of margin were profitability. sales this over the is the and to benefit timing are of loss QX percent which due or We during very -XX%, we million, meaningful trend $X year's last a period especially pleased improved of marketing $XX of lower in a Drivers versus Adjusted brand revenue COVID

expenses people These revenue delevered of in driven XXX which transaction by increase consolidated and approximately basis and spend. Technology $XX with due percent to revenue. points COGS the brand Viator extent now by increase by of include basis approximately card Viator-related a to General in credit and points and delevered costs basis approximately expenses, expenses by as waiting benefit and marketing subsidy, XXX primarily increased an content fees, by costs. delevered Turning Sales million the in XXX costs related expenses increased volume. in delevered combined cost XXX points, performance Tripadvisor by due XXXX processing fourth from benefit points, and marketing basis administrative consolidated driven Core. lesser about Viator's of of QX people COVID to a non-income to

to $XXX and year-over-year which position, free Now, $XXX quarter Federal QX versus million, on to Tax cash XXXX-XXXX, of a during related $XX the in liquidity cash 'XX addition to for QX related to flow the received previously million with tax our due year. XXXX. down was million of This $XX refund to the was the primarily in the for million Act of IRS was CARES payment disclosed last settlement decline periods U.S.

discussed expect of last to receive XXXX million settlement. tax million a we foreign the approximately we a tax $XX refund As of part $XX jurisdiction from to as during tax quarter,

the quarter $X.X quarter just X.X with ended $XX We balance just million. sheet Regarding we billion report strong total million the cash. shares over totaling cash with in flow, a in

extending our XXXX. maturity quarter, $XXX facility the to of during Finally, amended we credit million, its

his will Matt bit color cost-saving commentary. a mentioned provide initiatives the more in I on

effectively costs. estimate embarking yield operational will Tripadvisor to As our actions from Core, these we savings they broad will are transformation in a roles year, at approximately headcount as corporate which more million the across reduce will reductions series primarily year our to modest us on initiated savings, timing annualized strategies. execute we of of fully business, recently various more We to drive only that a $XX actions, plan we across us continue on to includes but we benefit segment G&A. this Due allow stated next expect

will explore move discretionary footprint. across the real estate As to of include our savings, segments rest the we costs for areas additional other through and year, continue which we the

year, as growth trends by we very marginally now rates low the we QX, On to by we saw expect year-over-year the the assumptions rest in accelerate branded to basis from we QX, consolidated in revenue quarter's of year-over-year levels. Turning XX%. of expect driven result monthly for QX high above we thoughts and single-digit in from staring we growth Core, particular Viator, in to growth quarter rates revenue growth low-XX% last decline driven QX step-down a to for a year-over-year for In range, Tripadvisor with the expect year-over-year In the the the year. the in QX, hotels. rates comped TheFork, second expect through close growth

In taking within Tripadvisor July headwinds saw globally. we Core, in observed across QX despite for the greater meta we in the a on based approach trends and meaningful improvements planning prudent and branded we hotels, hotel are

adjusted consolidated about Core well Tripadvisor seasonal sequential margin a QX to basis XXX contribution expecting Viator lower consolidated group's year-over-year we're of For XXX but improvement as a in EBITDA at in results. due as point the to a margins higher step-down margin,

step-down more to margin year-over-year to Tripadvisor For prudent of a XXX we at on trends. expecting are XXX are EBITDA approximately we based QX improvement, sequential adjusted outlook Core, where hotels, points seasonal see largely basis margin but branded to QX a due a in taking

expect mid-teens the full-year, consolidated we continue For to growth. revenue

segment for a Viator with the accounting expected. previously than now driven different However, mix, this more growth of is by

Tripadvisor improve lower basis points points expect XXXX XXX to versus to market as growth, to approximately approximately TheFork margin consolidated year-over-year flat than EBITDA This adjusted significantly they basis margin to to Viator lower XXXX. we and reinvest be continue be approximately upside XXX at drive year-over-year. revenue levels, implies be and share Finally, margins XXX Core XXX to to to

the impact a cost Lastly, in-year mentioned largely benefit XXXX to the realized we previously fiscal in the to will be from expect minimal have savings QX, and initiatives thus year.

over operator that, to for the With hand the I'll call Q&A.

Operator

Thank you much. very

We will from ahead. now Khan go session. B. conduct now question-and-answer Riley have will Please And we Securities. [Operator Instructions] Naved

Naved Khan

thanks. Yes,

me, things. Just core side the on Tripadvisor questions maybe a of for few just

thoughts I'm XXXX, of aggressively Trips. how looking growth about into for guiding. how to be back the into decline, like we that? the great by the or this as to low not year on your there opportunities Given just the commercialization just high-level then get now that should it's to and back-half, motion wondering or beyond at followed know coming I engagement commercialization mid-single thinking you AI, about would you're see outlook And segment digit are you to the there? a look maybe in first, well something from just deployment

Matt Goldberg

our Thanks, strategy we strategy been and to a have that through trends of traction. believe trends are Naved. place And deliver gaining business. are It's understand business We of and more stronger a precisely Matt. long-known, through many that consumer-focused that is in believe transformation engagement them, the diversity we've put our we and managing seen we we really

our Now, that noted the in we February, when expect incremental didn't impact to XXXX in first see revenue from we communicated strategy, we strategy.

would information us really KPIs have to which green to that relate and repeat site that better financial these the which to are towards stay expect a a are engagement that profile to about. we that the just can look shoots of them more start concrete strong share, consumer our case are confidence investments than going us we and beginning begins that we the early they started share that note have in the longer, that to to how engagement both past. are more drive kind for I to giving use believe growth to to asked then more XXXX and just as with strategies We will things frequently, have show the bring to And that you to

a valuable at more targeted, more looking really we're audience. user So, and

deliver marketplace product be And a we our which deliver include we way set make the believe about through that, we believe demand long fuel and outperforming business we've continues over as leverage a and experience, supply that not guidance although that we time. that user streams understand we at proven sustained can we will which our growth categories world-class we meta then business of it which in we and business, do media that been market the growth we innovation already we can really into driver, the progress, multiple today can we've we believe period our to the doing can is which think over as revenue think and to what with our match Viator, is

we started to business. new and question that see in related really good our fact, launch we I starting early ultimately, to sign-in, will have rates, We our with completion AI predictive, focus, urgency, deliver tool. of to signs engagement experience show coming of contextual across I AI. think will user we're get beginning will the was a personalized, back. And on trip-planning that This relevant, products more result the into people satisfaction. strong as member of our is, AI how a mentioned more think more and more around all integrate services with from second the we execute that. And to we

uplift. way we think and in can it leveraging also we're our power using delivering Now, Obviously, We differentiated our of using content. in a it in we're fashion. number we different in insights tools. enhances multiple are a We're ways. that AI the for use having authentic ways and And AI positive user we're our products experience that the

all, of first-party data. proprietary First got we've

hundreds from that's of of interaction across visitors and, frankly, every tracked touch us. multiple millions proprietary have points is to We

reviews, a community. and our we're world-class in guidance travelers known a and have insights trusted billion We And have that human for brand. we from real traveler

make ability that unique user combine are and better first-party a to create time. and unique, we and our connect data, think reviews, over our experience those our We that things be graph in will

trusted three delivering data, think things. we about content, we think have the about We us first-party authentic think when it in brand; three, product a and our about we so, makes unique. we all And think

ways. leverage We will other also in AI

be will already with We're our We AI more engineers. productivity, productive. leverage testing to improving our

going to a there's at in service about think optimization. we marketing other are lot look opportunities potential of creative We translation, and think We there. customer how

we the course, to of And want ecosystem. influence

And ecosystem how so, frankly, be understand evolves The influence share this there, to our Google we our and, it are that Microsoft, OpenAI, organization. value. with we so is get of urgency in partnering fair

staffing We focused where highest flexibility the it do to are we this have the make one our wanted to to reasons create real we it's of initiatives and are sure that on conviction. we priority

So, excited We're it. about thank you that. for asking very about

Naved Khan

Thank you.

Operator

and moment you UBS. question. one Thank next Walmsley now from Lloyd for have our And we

Lloyd Walmsley

AI it engagement. strong, and what Thank European of Great. just on some of are you. versus in better. a is to business, XX-Q that I more like Wanted mean much right, All in can of just the by getting going in of to sense can the you some ins big you're ask question, it think And of how levels, give pretty saves. meta about kind Maybe function so I a the the completion you weakness upticks user rate made you think sign the the us side then, great. the side CPCs customer bidding like sounds back maybe seem elaborate on seeing

level Thanks. eventually people that Anything need there hotels get what integrate then, cohorts seen funnel? monetize more something to into or ultimately you be these you And of is of of to that to you Are migrating seeing terms just would great. people more way can those the in connect monetization. to have you hotel

Mike Noonan

muted will few points overall then get Lloyd, Mike. a take saw performed facing really Hey to reminder, business as declines, we expecting really as tough second opinion. U.S. and right, stem more was I'll more [indiscernible] say and your the we're And in APAC think part. pattern. the in the part Europe. I'll were and a this about very did as it unusual Meta just first a a it's expected. comp the from And delayed big take a seasonal I'd and Matt Yes, I business we pattern

said I seasonal be Our much in driven, paid was channels. traffic seasonal, as where and competitive just this paid, season those more a to more saw peak in tends environment remarks, we prepared

So, saw our We EMEA, We volume chose in the of solve it profitability over a price quarter in very as and specifically ROAS more really accordingly. impact too, some of for a the will maintain certainly I it we paid was channels. in but was this say that, to more reacted growth in pressure, volume region. I'll I we very saw really we But our of Matt, July, what well we it QX. we return, as said outlook year in globally, saw in the Europe the in saw piece. well. based but a of of the as July on view nice more And you kind much let for for take majority a second

Matt Goldberg

out U.S. We through launched at across recently thanks, trip planning June. scaled of the the our in July. web went It the end Remember, just tool. driven we Lloyd. Yes, AI it

So, think going it. to in really with build strong foundation that. on, a it's and lean are into early Stay we're very that excited and we beta, we have and to

will to about push continue Our and we product, it forward. teams excited are the

for seeing, full what at mentioned been rate what which In of provide are seen seen we inputs. to we average quizzes rates. to where users in I completion things means set itinerary historical structured consumers is that terms have generate the has and are times we're an the double that like of asking other providing we've What the inputs

be a use to it. have Now to you to sign member in,

understanding login, personalized. We are which with us at core in drives understand of average. wide We is how a an sign times coming it more four this if be provides is to experience. that rate can site And deliver our is the better the So, strategy, overall in because users membership to really the that consumer. good

the they And get kinds trained. are they course, the And models are. used, of with that better of more these the tools,

have We and deliver to content. and LLMs can, it on we mix trying we're to data a of approach it our our best training experience the

satisfaction user the so, promising. And is

that time supply. with people better drive connect monetization. about starting We can on to demand asked You monetization spend site, engagement our the will more the we the believe and

the focus version, did monetization. In on not we initially beta

we whether to hotel category So, be into the multiple consumer hotels, be we'll hotel coming up and to and the over products to it and quarters, and partners. about hotel able add as will really flow, our think or to the drive the benefit that prices bookable that Meta a serve get at in services right user tours look

think meaningful. we we first we step really out, as is as think and learnings this more we it So a the will roll be opportunities good collect monetization

Lloyd Walmsley

follow-in, in can Mike, changes? Is Is if these European a this of sneak you any search are impact from Google that something you Okay, of I competition? any think? the search seeing

Mike Noonan

Yes, of nothing from the seen new this, there's really our on there. we've I think chatter some perspective,

talk ads, that's while that's Carousel we've participating a that product If you for been in. around a the been about

that's kind European product. global that's before, to more point of leads line acted us one world of And really rest the So, a as expectation. of we point was It's U.S. said say that's and a that not, thing. in two, with

perspective the from didn't see anything Google a So, European performance we attributed that product we to.

Lloyd Walmsley

Okay, thanks guys.

Operator

Thank you.

question. next our have will We

with Now have Bernstein. from Clarke Richard your we will Please ahead question. go

Richard Clarke

XX% on within trying or that And prior used margin, much double-digit cost -- on long-term couple Viator And comment margins, margin guidance mix of firstly A morning. How management maybe you're I team to to like about division to a secondly, you? it outlook. down on heading your and square on on run just the about more just then, XX Viator the E&D when sort low just of focusing to missed that we try headwind does Is advertising can Core? questions to margins. the of revenue Core, with wanted of about Good thanks. the versus your more Hi, if prior kind spend. therefore give towards that ask looks for talk return

thoughts think be any ultimately just able So, on where you margin? out come on Viator to might

Mike Noonan

Meta particularly from say our we Yes, dollars Hey we Europe. did and Meta, have Core miss, lower see I from Richard. in targeting Great. on globally just product, ROAS the contribution a in were stable perspective the would while margin did

incremental more some but as a the at impact in contributing from So had it really from or as Core margin dollars you said the investment investments those that as, mix to around an lower was business experiences the that's perspective the on secondary well margin.

OTA this we in Viator when in When and sit see outlook, at long-term. see no business, don't with structure. marketplace think a look we difference market the margin in and the other OTAs of at achieve like really there's terms about this we can't business similar the reason we correlations look you long-term why that margins In the

is quarters. saying a Because is about we're we've really going thinking and that I data of do be user. We there to user, profitable with a want talked come several stick recognize, know I the we category. see and We investment new that very more new about us on they focused that long-term how on they this been back this, stop we and longer, what think an durable in us if right. consistent think about to we're we've short thinking create leader that to And we when happens. player in is

that keyway is is important. that we that able We in a very recognize our and are think to pattern do this is we scale So, business. leverage It's cost important are a structure that very variable fixed customer processing, about card long-term but margins. I just payments, credit you not important really unlocking are think very, that to, think very costs, scale service, those benefits costs. When

achieving prudently focused in path to manage we cohorts acquisition those on economics the and today engaged glide are of very to we a the are unit along to this, we continue we'll long-term margins. getting So, believe

Richard Clarke

Thanks sense. much. very Makes

Mike Noonan

Richard. Thanks

Operator

moment One Citi. our for you. Thank Josey question. from Ronald next

James Michael

in Ron. the clearly James the on ROAS about in these you're backed Hi, second, is talk by any And of can context for then, this changes dollars? you've experiences growth ad investments, seen brand Viator, On seeing to for competitive the experiences strong Michael you on overall? landscape

Mike Noonan

all Hey, in is awareness but very difficult. Sure. the midterm question. think to dimensions, more an long-term That platforms. investment take our in of ROAS many Putting benefits does I'll long-term brand of very, Brand is very along awareness. a investment important investment It it But we brand again, in paid channels, awareness. drive which us to behavior, are doesn't promote right users direct it promotes the effectiveness it promotes necessarily for health. away

helps time, right. And our we channel think over mix about quite diversify how frankly, us it

brand today long-term for making think is investments So, important. very we're channel diversification, which in we

is ROAS across quantitative. qualitative, measuring do we sense, measure various challenging. measure some traditional in some categories, very do So it How it? We

the certainly trending are which how search how favorably. side, On our we they at terms, looking quantitative trending, does are are branded they

important. to so. converting awareness, performance aided at brand this look brand the do are to brand these second qualitative We a and before, surveys, funnel added into that of things benefits, very a in are on use continue spend, We the there from And statistics I'll of coming things and do on away is a ROAS. we'll the of rates brand said of at point, But conversion funnel, which look measurement of effectiveness kind focused about around we're spend because which and talk… as very as we I traditional awareness actually all unaided, think mosaic to really

Matt Goldberg

a Experiences Yes, after space going there's context, number competitive space of competitive players a there very on doubt are dynamic, the that the no is a that big a TAM. with

guidance to Now, it's competitors and place global. you've how difficult believe of What right? Experiences about in emergence you starting the players the we're regional they all happen. brands positioned region make is that serve strategy very ways, thinking it well want back to combination you the of and come from seen different and in are Tripadvisor about to of and We get who the our you've number off. that with traveler doing gets want space, that a is a two that one can So seen

experience looking that be it. of by looking be we I when But together, to platform and to way, given the your been is offer relevant what understand you about. talking to go, past able preeminent the point is two a intent, are think that you're should you of that place booking and what somebody able a broad is your and marketplace that's we've for And that the looking broad, Viator multi-category. behaviors should to ability economics kind most to the for, stated right, and for delivers you're we reflective a experience, of that that's be things At the

And growth. see meaningful driving together starting really how they to we're are

thoughtfully manage the that long-term. prudently rewarded it bring on for category in to of to the surprised trying we do we'll and that together that and I'm influence do, dynamic and what and capability the traveler. so competitive what everybody we to And can not because use leader we we doesn't be our else the are So, of all get are trying over think behalf chooses the

James Michael

Very helpful. you. Thank

Operator

you. Please Thank question. your for Jed Oppenheimer. with our moment One next question. from Kelly proceed

Jed Kelly

Hey, great. Thanks for taking my question.

sorry, Viator, those headcount just just then, Just has make just ability -- impact to around gross gap speak can difference Tripadvisor you And better reductions, -- revenue to innovate with Viator the and on will between to talk growth? you a on the to your speak gap That about the Can widened. make you - how this you. and Thank in booking can trends? you Core? growth

Matt Goldberg

Thanks, Jed.

our to about with Let strategic next. the flexibility our This creating work. part me priorities it and the in start And, is much invest year transformation of this cost very is savings.

market resources we biggest has how Viator. no opportunities. so, the It And looking on are space to we go and after the impact creating allocate at

can promising the the are core or making on momentum sure last to we that that have quarter over business deliver two. and We our focused shared continue we

the our to that the we reflects want action of that how continue we make. This And, to piece most important of course, we support we in want so, And is strategy. And this. be in it. choices have conviction disciplined to

Mike Noonan

margin Yes, booking rev well as and biggest at gross piece. and remarks. timing the two drivers revenue, Viator Jed, my little it we gap in or driver are prepared touched book the on growth bit two But, the between upon the rec -- as the

we in reasons. is Matt that take And rates. across seen the continued to, that year-over-year have various alluded margin the Now, improvements

what is our a utilize choosing to reason tool for purposefully Biggest advertise very manage how platform. advertise. talked how want and to on Accelerated they suppliers pay program, our to they it. we've are important And

that our a for productive So, very a the of important tool that's suppliers. gap. That's been piece very has been

been will timing. And difference that, with piece coming the other rate down is just very think, And booking the you our timing, right? growth been see we've -- the from I that rate. growth The high in has rev-rec to

just timing booking really the the the it's and accounting So, experience actual between itself.

Jed Kelly

you. Thank

Mike Noonan

Yes.

Operator

you. Thank

We [technical have your Barclays. Lu from with next Please proceed difficulty] question. Mario our

Mario Lu

for taking Thanks the Great. questions.

The on is Tripadvisor first one Core.

compare percentage? that forward especially, us frame how that if should is we you after margin, (ph) announced savings. we to pre-COVID can now different now it going EBITDA larger structurally long-term say [layer the experiences think curious cost the Just help in] the levels, is about the just When

Mike Noonan

Yes. Hi, Mario.

right. I think that's

short of the will in we we move and back-half the Now, any I planning. the stop as specifics long-term will year of giving in get obviously, And year. next

is has the headwind structural And for at paid come certainly would two of pre-pandemic. talked against paid really traffic has are different to business the since business Core just free we that you is is the One, factors this many to And If comparing which pre-pandemic, a between have come that say lot years making been that and right? margins. where mix have investments the perspective, been and this more site. option in I two, about from the in traffic been growth we in in mentioned, Tripadvisor ways and ago, for a you experiences

the two caused headwind pre-pandemic are has you would that be those mentioned So, - factors versus times. as the

Matt Goldberg

different. the revenue we And I would into over is time, mix deliver add, just the in of And mix be strategy business will will our growth. healthy that think and a coming profit terms

Mario Lu

Okay.

Just categories pretty or this outperformance? on call geos the couple quarter, drove outperformance on out deceleration to Viator that as of not on months much any so, key this last follow-up large the as side, kind quarter revenue of

Matt Goldberg

performance were we in our expectations. I the very will the did pleased outperform say It quarter. just Yes, with

of its us. That leaning demand. for advertise a that I And to did suppliers very very and that customer find platform in a strong good that a continue saw customer Viator see and Europe. fulfilling I was think area healthy think -- obviously the we is and U.S., in America, here helping travel we the U.S. to very America its needs biggest into North market job its travel Viator brand effectively North to demand, the market and very on is healthy international

that's I right. yes, So, think

I growth are the into comps, back-half acknowledge comp think the and we that percent the we peak year last into from as rates tougher year, XXX we going we year of you moving back-half are move are think the of those travel. to plus away

and Otherwise guide the very And healthy pleased performance. business that. are very we so, our reflects with

Mike Noonan

texture. would international the add things I we right, have trips, they couple is expensive some seen. stuff more a of The are for bigger just that's -- of so taking experience traveler

outdoor growth. are you categories there really tours, wine, know, And which driving all been that's and are I think And that and cultural fascinating, good some I theme exploding, some growth. activities, find so, really food

And the largest healthy you those categories of in set experiences really really to when traveler. world, can you offer can allow for a of the inventory so, growth drive the

Mario Lu

thank you, both. Great,

Matt Goldberg

Thanks.

Operator

our question. Ju Thank Stephen moment Suisse. next One from for Credit you.

Stephen Ju

Okay, thank you much. so

about I your commentary does to repeat wanted follow-up rise increasing transactions That for value. the sound So, Viator. lifetime about customer in like

drive you're terms Thanks. do of specific wondering increased product you was if I are running? that, think campaigns the from have benefiting brand you to So, a little from updates, elaborate in bit you or you awareness can

Mike Noonan

he bring the do it's let Stephen, I users, for person And first that experience. that new chime around there in -- needs. it to something great in is your ability reengage is LTV service, a you important stands bidding things will nail great product signed basis. of think will users. very Matt we think wanted But in basic it's I company, around foremost, really when if a focused all how about Yes, and those brand customer are how awareness, as right? all think, these great and Then everything a important for then bad with I experience, experience most the on And say we again. it ease stat I it's So, our very the this start, it we product, product, remarket as the we here a is experience are enjoyed to it's to right? said, And that inform I because you that and to and question, it from the you and you up and on having level right. in, end the does with problem, So, have great exited payment, a it's is

have across really is into then doing And with the on, product user. that customer that working work the and things be, experience, just we can't differentiated more ties category. the the going we we all I'd customized goes engaged then the doing, others can experience, the are how around we do keep customized tell more we individuals, and unique customized more Viator we that CDP are So, the basis just data to on the be offer means you can more in are a we that things personalized

So, excited about very are we that.

Matt Goldberg

or device. foundational moving people matter making The so make experience they on Viator lifecycle, across team booking the to making enjoyable the them our and over. in making tech about whole They more focused come so were doing can thinking once how back they book that are friction. the people delivering. sure get work power they're that over They the is They speed is are serve know who are and loyalty, to easier, them, and they and sure

focused, think program delivering focused the affiliate for is the conversion, creating strategy I on making that they're in is repeat, their clear, and great, that so, more operators, an world. value sure And and very is they're experience best

think to aiming they're So, the are they deliver. really are clear what results I materializing. on And

Stephen Ju

Thank you.

Operator

Fitzgerald, you. question. Thank for moment Brian your Wells next Fargo. One

Brian Fitzgerald

question. bit ripped just Stephen's I a of off little Yes,

the did second hear decreasing, that more (ph) decreasing, come is it's right, that so it's the assume I or Viator from Is -- of decelerating. I [derivative] think the I remarks increasing right now. prepared paid shouldn't make bookings channel

paid really And you to in are is a coming and/or important would channels what I you the so, rates, so, good that if of bit, just because are seeing pay travelers terms less Viator. you could have through events getting and imagine channel, unpack the that clearly repeat

Mike Noonan

let Yes, I that Brian, statement. me think clarify

through come us pay I said we what say channels. yes, unpaid to think when you we we you us, did don't think, would back I channels, had repeat through -- through the right. say more I tend to

that having to new effective just acquisition user focused a to basis the clear effective right, chance be that channel gives on on just You non-paid the what user, us we skew through And are and a a incremental philosophy, and to great us data that what channels efficient back statement. the what And through that have bring -- find channels, are the realizing way paid seen repeat from more new channels. I of hope we important, to overall very that's it's we user. the on

with necessarily or we clarify a just the but experiences, I think there is So, want different -- difference to I in say call. said different what products channels or on the wouldn't

Brian Fitzgerald

you. thank Okay,

Mike Noonan

Brian. Thanks,

Operator

you. next Kevin Thank Cowen. moment for TD question. Kopelman, our One

Kevin Kopelman

million again? I you Great, core more or you the up for year, get reinvestment cost a pave and a just kind cut EBITDA get earlier the do a have tightening way benefit back is make the cost that margin the had that that $XX to just thanks. next of you see will that question way XX%-XX% savings core of shortfall question, follow-up Thanks. more as it next on to advertising that on that or year going and core range, to the into get

Mike Noonan

the is space time it's flexibility, that to around the and we But how solved, really are stop preserve investment to and Yes, Yes. I'm talk a say guess a the was I in on more headcount Hi, to reduction the and this would it's year. we do later, how develop to do that to not short next strategy. around going of margin of be transformative we around to I more in what margins continue flexibility Kevin. create strategy preserve strategy to say, is business. that later. do going about There the operate really execute I we mean trying believe how

Kevin Kopelman

helpful. it. appreciate Thanks, that's Mike, I

Mike Noonan

Thank you.

Operator

now CEO, I you. Matt like back turn to for remarks. So, to Thank would closing over conference the Goldberg,

Matt Goldberg

next stated good update day. and today. Thanks our our believe everyone look us joining Have on strategies quarter. to We next a great for progress our we of across segments, forward making are sharing with you each we

Operator

you disconnect. now may participating, you for Thank conference today's concludes call. and This

Tripadvisor (TRIP) 3 Aug 232023 Q2 Earnings call transcript