TRIP - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by. Welcome to the Tripadvisor First Quarter 2024 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

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

Angela White

Felicia. you, Thank and Results everyone, Tripadvisor's Quarter First Good welcome Financial Call. XXXX morning, to

today President measures on opened, Joining Mike Matt reconciliations measures release. are me Goldberg, discussed you'll release, most This made our find before comparable In and financial that Noonan, non-GAAP and morning the the filed this market financial call. we of available earnings to CFO. and CEO; GAAP

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

Matthew Goldberg

to us the of board. represented adjusted $XXX morning to $XX and across a year good which XX% was and reflecting revenue. or year-over-year the of million, everyone million solid results, EBITDA were Angela, today. pleased Revenue our quarter joining X% Thanks, start first with growth We was

first, aligned cover Our in execution but disciplined of more the results the provide operationally. strategy our progress made call, to are I'll a financial testament details, our financial teams. Later a we've and and operational Mike will

brand, Tripadvisor. LTV and we're to and of guidance adjusted decline At strategies to reinforcing Viator, operating products and revenue. complementary on $XXX Brand unique improving bookings Brand XX% as $XX with driving dining across we're restaurants delivered our and to X% of TheFork, we're reminder, the repeat in diners both drive by margin but and fuel revenue investing EBITDA improvement of position leadership monetization diversify engagement products and or market. Starting segments. million, growth a in with leader world-class our experiences our a focusing enhanced As by our Tripadvisor, and We European of delivering paths. At delivering value the economics. revenue million unit we're At

core growth path. These the our like the and growth our well we work to expected The and active sustainable Meta and we're are overall XXXX and pursuing we're engagement-led return key our categories generate results profit outcomes: monetization additional channels flyby our are revenue app are prioritizing to who Our our through addressing audience, built profiles segment diverse drive legacy average drive and deliver to audience, across opportunities of growth. sustainable the to traffic the portfolio deliver scale initiatives measuring user. the so all per reducing frequently foundation metrics, on in direct reflect the elements across within dependence more as strategic back We're come to clear well-understood loyal members our global business. pressure far overall and as key continued including across and us outcomes and users more members mix app these our to in on

our seen these, X trends and QX XXXX emerge QX of positive improved XXXX year-over-year we've last months. sequential of all monthly between For the over in changes trends and

positioned point momentum than have to in more had this with do and work transform business, our any years. well still we few to the While progress XXXX past continuing we're accelerate exit we've to at

more to marketing top strategy; two, our our year to last shifting mentioned and X experience I personalized on data the leveraging made three, in our for engagement-led this deliver differentiating our Brand As priorities mobile the call, users. reinforce Tripadvisor one, the and are: AI investments for a app; we've

can create to a X me priorities increased points continue the and how and it engagement these see we across Let QX more proof we convert share accomplishments from our monetization. that few into of underscore

First, we last from launch where app the scaled incorporated learnings to our tool web-only web year. we from itinerary Trip's

to continue been test commerce exploring trip new trips features, as planning. One the part stage critical testing roll how at our out area journey. trip and layer We of book planning bookable including is to and tool other ability every best experiences in through the experiences to we've in

most For dynamically select gems experiences. hidden we relevant our users for add AI-powered to when we to destination-specific landmarks, interest trip example, in themes trip historical now like ask flow, planning or tied overall their the bookable

using see users or the destinations. if tours pasta-making that you alongside that feature for might AI more which provides across to one journey. than Rome, you're it and don't, generate listed our general commerce-focused of these who users interests incremental build interest of seeing an who XX% classes, skip it our a line apply So revenue that the itinerary can We're move generate demand users monetize the to average select signal as ability through fantastic higher

with membership of free about, which core our content a reviews, new their Second. evaluating new passionate In us based travelers and specifically on badges a Achievements other contribute we've travelers. To for achievements, motivated help program we engagement testing a to are track photos, that one progress. things called their to strategy dashboard along showcase how that research members recognizes contributions into contributions. our been differentiators, guidance and tells with they're reinforce began trips impacts recognition the QX, for other is the traveler's our users to to lean community that

early an it increase contributions has of already Although content delivered user. Xx nearly per testing, in it's in

Importantly, we this and achievements on We submissions the growth build can we to incentives we XX% follows engagement. strong reward last to continue as with contributors, additional further review membership our photos. expand momentum year delivered UGC enhance including believe approximately this growth and across

that that review hotels have for the I last to our improve observed. call, measuring expand change on we've Finally, We've positive versus feature by about this strong indicators this performance but those and the GenAI-driven and the hotel of year-over-year talked early revenue introduction summaries and feature, in continued engagement don't.

percentage are X X in X those percentage The change is points summaries, Review engagement than without. better. points submissions with photo better submissions percentage the points also X hotels saves For percentage and are underlying are better, is better healthier. AI-driven click-based points revenue year-over-year

to expand this and feature, to our thank to of We're teams aligned focused their and over We're hotels on scale categories quality excited to execution. for continue our prioritizing effort plans quantity. Brand to I the with experiences about on transform and recency strategy want We our also feature time. number Tripadvisor. this over restaurant our relentless

XXXX, we'll continue even create lifetime a our confidence We map road indispensable value increase opportunities for have partners. products, and we robust customer and for with provide travelers have to more

Viator. to now Turning

last and we're Investments on and our focused scale to reinforcing to year, to while supplier base, noted in on in driven balancing growth, the call, have continuing our we leading profitability position our base value date this scale customer As market share. experiences.

month, Viator from Tripadvisor of site has the each XXX demand experience. actively millions users million of to of hundreds visitors shopping more the Tripadvisor advantage including than the an for

and year-over-year, QX, to We grew continue the knowledge best given Viator deep learn approximately booking test relationship, cross supply industry geographic have GBV talent, on XX% grew this revenue to value while or and and gross reach. In team capitalize in we how XX%. our opportunities

results, improvement to levers operational a our manage balance EBITDA this we but line leverage in to sales Mike our operating order the strike growth very long on and details marketing of will quarter we shortly, margin, term. efficiency. of the both the an function was commitment more were adjusted in addition example and to near between hit in profitability, and the right the In pleased top with year-over-year and

and side, travelers continue and growth On acquisition, the brand drives ongoing health loyalty on meaningful an we in focus repeat On awareness encourages experience includes with building in with to value. we're increases pleased part on the every lifetime that This as engagement as very consideration. of well aided unaided and work our journey.

book visitor. Further, As for making we our and to in are things, booking QX, revenue checkout in saw the travelers high often. base, easier pages. for more making matching high and most improvements we're expanding app efficient record our app in our grow and bookings, most conversion We're for as growth and lift and designed year-over-year we to downloads, and audience driving serving to increasingly provide our loyal we through we're per incremental changes our a confidence record users, it they're channel, products, program more to In more in rewards grow conversion These app. our our customer significant them customers highest experience, service. improve the repeat

demand and On in growth as tour to be generated over to sales billion platform. Viator retention our nearly we're driving churn the in year global the on year, helping supplier supply to is and access we're low our side, the businesses. operator operators GBV its for last grow each we supplier see their subsequent partners has in clear proud value $X continue

our incremental benefit tour We in we're reached from by rate, take driving which high also all-time operators for see an value driven enhancements. the in program our March reflected Accelerate our coming

With add we offerings. the supply to market, for partners set base which remain the value we in largest continue our of expanding both the grow, supply of on and products focused high-quality enhancing and will

prioritizing to to as growth. diners we and owners TheFork. annual at Finally, value transition profitable restaurant our In XXXX, efforts we're drive our to

in more revenue, diners seated leader well revenue opportunities. As us even as dining hybrid the to European ERB our on capture based reservations, clear as positions model,

driven paying to product that combination a by QX in is of margin and technology growth underscore Our XX%, and results off. at pricing our solutions investment with grew Revenue year-over-year. past improvement with meaningful TheFork complete bookings restaurants

in the mix. the growth mix and and marketing performance refine we returns favorable and We We with incentive continue our opportunity performance plan marketing, pleased to to the quarter during also were given marketing channels. an to marketing balance brand saw between delivered

strategy, the On technology with X%, growth across where triggered excluding can traction, updated are restaurant growth we sales more are more solutions, signatures. and in over the approach higher believe restaurant such thanks our approach changes pricing in investments more segmented that market, promising we've go-to-market in to product outreach by and technology new ARPU. growth Australia, was management, BXB including driven proactive QX, in markets restaurant count as a by profile We the we've gaining restaurant yield in drive The and made net believe ERB-driven enabling opportunities exited data. our promotions and side, solutions our which healthy

is ERP portion we the small from still TheFork. revenue a Revenue of derive of solutions total

a between the balance the marketplace, management ahead. and more strategic share given However, for small and leading sales position onboarding BXB help our these us that will their approach, owners confident we're capture right businesses in

can travel reiterate priority is the to and the past there. to experiences consumers I years few to we learned want conviction call Mike, about have Before in role travel we the around One play high over that the a pass opportunity I the and the we've remain thing long-term world.

stay of across Length notable To date, identified geopolitical behavioral remained ongoing have pressures despite data changes ratings to otherwise. share consistent haven't of inflationary our and hotels we in suggest and tensions. star

from still done of Our traveler positioning high. travel. strengthen tremendous indicate travelers a the the summer, season, We to last interest in summer increase that we've surveys travel work and this with expect dynamic XX% have international remains into high an travel XX% travel industry. head this consumers pleased our for appetite to

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

Mike Noonan

$XX otherwise. the and of We relative revenue was of of and All million million, recap rates basis higher for $XXX morning, I Thanks, of solid comparable points with near-term than year. reflecting with XXXX to year remainder priorities XXX the provide growth Matt, the revenue unless good last will the quarter everyone. noted and then are a will with a XX% or of thoughts adjusted outlook on in the and X%, start year. some growth periods EBITDA quarter, started

as and progressed slow saw improved While we the in year February March. a to start through January, we trends

of and Meta lower was our volumes. by performance was click most Turning our revenue was to first of revenue. across paid a Hotel Brand which for offset a pricing similar segment million, performance Tripadvisor X%, is by Branded quarter. in X%. Meta $XXX more by geos and hotel both BXB declines Hotel than decline million, driven of delivered channels, $XXX sustained which the in strength driven free decline of revenue both

result Rest ROAS prior contribution was subscription of effectively million. our spend. creative Meta impacted compared to slightly, Hotel a well perspective, slightly transition revenue as began in slightly line decisions Our a declined grew $XX to was performance products that Hotel programmatic declined we self-service off-platform In with a advertising less last as XX% to in model incremental the by higher better-than-expected of spend flat and higher our up year-over-year, a Better-than-expected growth forward. Media will and led marginally declined was modestly our going growth and BXB, with product up or World by in serve to customers Meta quarters. EMEA revenue as and contribution deemphasize efficiently revenue which advertising the media to year. more from APAC margin From U.S.

saw some from growth some XX%, grew this will to X% a in while timing approach. campaigns Experiences million. in We quarter also revenue QX. with realized that sales $XX in a dining from self-service negatively BXB declined benefit year-over-year grew to transitioning Experiences revenue dining led connection impact

revenue million, Finally, X% Other year-over-year. was down was $XX which

We of in continue our lower and versus which QX expansion or our strategy costs this declines offerings in increases last people The in in in was Tripadvisor contribution and grew this the higher due which content more basis to XX% support and see cloud increased deemphasized X% costs growth. $XX EBITDA million offering, though G&A, than Adjusted segment growth as cruise point as and offset Brand sales more XXX licensing was our than experiences revenue. and and primarily costs. year-over-year of year tech well headcount offset to marketing to profit quarter,

turning difference of benefit as million well The healthy to growth across growth delivered all GBV was and volume we as timing, last between in to growth QX. which second booking billion, points leap of a this in The impacted GBV points to partly compared year $X to holiday primarily revenue value revenue Viator, $X holiday Now better-than-expected of revenue Easter, The forward for of which XX% pull related of sale. as million where the growth timing due by contributed $XXX Easter from GBV the quarter resulted in grew quarter. revenue or growth. majority driven with of was positively or approximately XX% or X the approximately year. Gross negatively to

investment was leaned spend prudently We continue GBV the a marketing percent opportunities flat marketing as in as quarter. growth year-over-year with balance to growth Performance spend. of we into to drive

at customers continue growing to repeat our acquire We ones. customers our consistently new than faster scale while new

versus directly, profitable and bookings also confidence in XX%. drive who than of to see of Viator as us year's including build margin trends acquisition our are customer to loyal our our customers growth in at Adjusted most profitable $XX negative loss users. XX% growth strategy higher-than-average revenue, us reinforce with leadership. and These more an or ability our We that come who booked Xx long-term category was EBITDA improvement we last million negative our app, and

in XX% margin leverage including timing solid including constant booking terms people by of and of from reported approximately While or this as revenue approximately more revenue. negative QX, of loss $XX EBITDA to benefited revenue grew growth million. year's in reduced saw costs this offset XXX $X of points performance million basis of excluding negative lower and sales we solid significant the pricing last the XX% XX% largest QX variable renegotiation costs, of that in XX% people the from Growth in improvement marketing a performance. loss Adjusted brand cost of contract holiday revenue TheFork was or $X fixed was and which costs. At million and of higher a XX% driver currency direct and drove XXXX. costs, costs costs relating than to of in improvement TheFork, The costs volume impact,

with approximately points due costs revenue impact, as of points Sales our of higher, of settlement Brand marketing content down Tripadvisor. approximately Tripadvisor costs people Technology Brand points of all by lower basis was year-over-year potential marketing direct approximately year-over-year XXX including to production as mentioned. Rentals revenue the a and and spend of points to increased Not were lower to related as people the approximately due XXX accrual and cloud due Tripadvisor a due and business. basis a by increased at was and TheFork higher by segments. media million points Cost costs to a matter across XXX Turning consolidated primarily Viator. G&A and due of higher to the percent percent expenses costs expenses at at percent revenue regulatory costs people Brand for basis a XXX just to by $XX quarter. as XXX lower lower deleverage G&A Vacation basis at basis this to revenue impact

deferred flow XX, December increase Viator. Operating Now of also and $XXX cash with the and equivalents, cash was quarter cash We working liquidity. to $XXX an seasonal the and flow of ended by merchant was cash at driven timing million, cash and million million of trends and normal XXXX. from $X.X billion free nearly $XXX payables capital

be pricing will our an open be We expense settled the last XXXX-XXXX $XXX mutual in estimate $XXX This recorded totaled all settlement, we in tax $XX in in audits to which discussed concludes MAP. outflow to IRS call, agreement QX. As the the and will million cash million net related range transfer QX, the pricing transfer or procedure, income substantially IRS under million.

started as Turning we on we some of due to some with faced the quarter were timing We the QX. believe trends, to in QX-QX which the of holiday. Easter demand thoughts weaker unevenness April

categories. time more to to extended We that travel noticeable a past. in update wide-reaching the also the impact period for that have This drove typical we update witnessed a seen than SEO prolonged of rankings updates across serve

our While revenue flat mitigating see did and the April progressed growth QX these we as be to consolidated outlook, we Incorporating slightly impact have May results. changes into early at we year-over-year. an expect up these we exited month, trends to

below pull growth is in forward to by the impact of The we to couple negatively At Easter approximately into digits. expect GBV from points. QX declines down to XXX QX estimated QX revenue revenue growth basis XXX we impact growth Viator, of approximately points year-over-year revenue high QX. Tripadvisor, saw single we At expect of Brand a step

to timing and due between expect TheFork, Easter in QX. QX At to growth we growth a impacts down step year-over-year low- sequentially to mid-teens

For offsetting close last the improvement we to to comparable declining QX, EBITDA Tripadvisor expect TheFork in margins Brand margins down with both year. period be consolidated from year's margins and versus XXX last basis adjusted points at Viator at

to the expectations for Turning year.

for more revenue year. mid-single we're expect growth. adjusted in We of a low grow to low- to the QX the view and to digits trends, EBITDA expected now consolidated cautious Given single-digit taking flat full

trends means to XX strategy, moment Brand a this our are us Starting seeing our I'll launch take will translate what in believe metrics, on the financial and little execution, key our profile of driving months performance behind of transformation since financial referenced in base maintain we in into positive meaningfully With which touch a drivers XXXX. agenda we we and earlier. Matt over exit important each Tripadvisor. impact improved that with in XXXX for momentum we're We segment. confidence our as our operational

We XXXX previously the to have transition in meantime we of continue expect a that as will indicated. be period

expect such, digits. As we mid-single revenue declines of

While strategic margins, we XXXX stable execute marketing levels in transformation adjusted on given step to we anticipate our margins back as technology work. from we contribution EBITDA investment and people, expect

At gains. are profitability between Viator, market share balance we the growth, prioritizing and

reflects down year the XXXX, expect We growth step comparable where year we exit profitability our just XXXX, incorporates which relative to in to that transition QX for continue and full for a our provided. a outlook we to growth tough revenue

growth priorities TheFork, reflect Finally, our profitability. profile our and for to at expect balanced we

achieve year, We in to full year this year. expect profitability but revenue a from last continue to growth step down

We the of and us. are opportunities about excited the ahead year

that, to growth we're sustainable call all turn a our right over of words. profitable I'll for the brands. With back that to across confident Matt the are investments drive We making few

Matthew Goldberg

Mike. Thanks,

work I'd to update has a committee Board's been the up, wrap we doing. brief provide special our Before like on

of a a intention stated resulting transaction engage Tripadvisor's last to call, or our earnings committee proposals noted in formed evaluate respect Tripadvisor to that in that recall discussions Liberty from we You'll alternatives. other special Directors had Board Holdings' to with potential

evaluate management that be will company's that provide transaction that Directors the of initiatives on third meaningful this interest want we we a first at topic execution appropriate. no transaction to time, prospects definitive results the its will we continued and business take today. plan, best we've there that this unless The to company of as committee any in value by and no updates solid further understanding will of your with to stockholders. any The the special are continue alternatives committee assurance today, share. I and through our is proposed will party determined team the is as the and not emphasize underscored the Board that can and can and special questions There quarter result, something excited discussed our appreciate have that has create our we about

that, to to With the like to back call begin turn I'd the operator Q&A.

Operator

of Naved Riley question [Operator first Khan Instructions] the The comes from of line Securities. B.

Naved Khan

first A couple of questions. Maybe on one Viator. the

marketing channels language a to slowdown Viator is that from including in second mix changes. just and to distribution Market of the that that versus maybe growth partner much and Or you back? The several then might Act the due commentary around of of So from you made, have unrelated mix related out seen How we've slowdown maybe if bookings for balancing that SEO have channel now Europe? figure the maybe quarters the Digital seen is trying pulled around implementation about DMA? have your from is really have changes I much some is or in or other the any question impact in how changes profitability, the might

Mike Noonan

and first has growth I'll awareness, happening. operating the the rate. think One, take pleased right? We're rate, very in of still Yes, Mike. still things one. very listen, is large it's we're the Naved, a a market I low growth so coming online Viator, the couple with that Great. gradually on

are some for saying been time. these we've things And

And drive our these users services. to to drive continue to try going to so and we're awareness

say the things. a growth I'd itself, couple of On rate

of year, as the comp, tough the seeing the are we we as do through ease move We the those first move half comps second right, year. particularly into half

SEM, we good very perspective, very core from very, to app that earlier growth channels continue is secondly, growth channel mentioned Matt, strong in now. see I our right our a a think

of seen, the in work relating changes impacts. weakness some as that through, in We to travel a have we SEO, of out know, called lot and That takes you the been have the the call, happening in to as been time that has and that's serve. one

we we at very around, channels. good our feel look pay where we rates, about When look When channels, are on in look conversion still about We we look our at brand metrics I at metrics. we at we our in like rankings, rates, Viator. playing those awareness, repeat we everything, said, good auction at all dashboard where look at with we look our the all are main our the we feel growth

the a profitability have factors. more I So moving of things. And on more again, some as well, it's of think an just always is really keeping and eye rate as those of we consistent growth the factor of those

Matthew Goldberg

investments, continues playing demand And to very travel. impact we're and the really I us marketing make, full going excited you on be of the spend spend, out smart results the Yes. external Viator marketing QX about think I do in that that that in give mix. see a just some growth, that's to on how we're and view think, think seeing good, funnel to brand point particularly of about

expect the hitting spend space to last X aided-unaided year very that we're are the order, and our as and And others I We not consideration driving in high and goals short on enter in that, believe we impact that driving months. only season. very the we over the efficient accelerate outperforming real performance going is for awareness think spend

a place, we've But in growth year. XX% you're come of finding off last

to the what we're about profitability right a thinking And those mix the so market things, finding growth, X you're getting and share. growth level right of and is place balance

So choices we the are the that we channels. good about there feel and making various

other there's host Now Google. whole in stuff all would that of a course, there's course, is, you around going And There's the the that of implementation surf on of about things Google, say product Europe in I on. DMA. There the change. And of the a time. ton happen just asked

from been real prohibition it very how very in the the to As quickly. investigating is relates DMA, see do I our with impacts on always Google's on mitigate time And particular, and to the fascinated adjusting we're good self-preferencing. we've a to very the And Commission it quickly. teams adapting European are in monitoring compliance think of they job course, start,

put DMA optimize us. and changes impact which can't is our our the and and our more with our and to drive correlate so diversifying engagement, important we directly direct, we people continue product about try the on monetization. to driving What and strategy, is do But more get to our position that actually we fuel app us download engage partner come with

feel we path like So we're Thanks, good very Naved. on a there.

Operator

line The from the of Instructions] of [Operator Ron question next Josey comes Citi.

Unknown Analyst

on rates near Viator's we the becomes larger on the be you medium puts and scale to how on takes then do in the the Robert term? part take evolving over platform kind is This the should thinking company, how continues rate about take the for Ron. Two term? and questions Viator. of I as first, And of guess, see

Mike Noonan

Matt take I'll in. chime Mike. can and it's Robert, it,

users couldn't sophisticated marketing, make with otherwise and reach do and do we do take as I that think, to think a indicative listen, to easy our investment rates of and things. They're with that with the lot of far-reaching that So a our indicative, and I suppliers we provide of suppliers discoverable. bring process tools, we them like, platform operators are that we our value to to ability that that

that value lot reflected a think rate. is in businesses I give think, and tremendous we of and that's take so to foremost, value And small a the first operators. And I

around for have ability us I I platforms." And pay suppliers I past would a higher more even "Hey, rate options our uptake operator products We of those to different what to doing to upward, advertising say, in take choice for different want of choose give opportunities. have I we also that power -- additional movements year, programs and lot over around programs, the have more think advertise pay the our some been to voluntarily tremendous seen and where been on we've the say,

think And that's so to that work to every And provide to with business most on then progress to the we're their are and about their I good right? back demand gets closely how bringing day manage platform. demand at operators to that that We and it level, we think and the far. their happy operators, the that's sustainable, ability we the monitor sustainable. value feel continuing equation fundamental really value really we're bringing thus what better. we just we're how think very make on We our We the

Matthew Goldberg

And thing rates would function and I not the only an objective is take Yes. add themselves. of in are

a targeting being an value delivered. it of particular and the It rate. is not are is indicator is take an We output, that

And the Accelerate, down program demand, more take at really participation what's to over we're control, and insights, driving intelligence, time is time, able been competitive performance so detailed which more metrics any valuable innovated is ability dial give and better and has the as up to those rates.

So how think about that's we it.

Unknown Analyst

there second unexpected recent would in across? out be maybe elaborate on trends. That's that Got you supply versus Any growth? reasons on you then Are color helpful. Can there particular it. helpful. one, call just trends And supply really any would

Matthew Goldberg

just question. We asking? couldn't the clearly? I'm we trends What you hear sorry, Robert, hear didn't you're

Unknown Analyst

Yes, supply trends.

broadly would color that you're or geography seeing more really helpful there. any Just by be

Matthew Goldberg

world, we Look, in multiples available answer. much we don't incredibly experiences anywhere important. about it's We level We closest. is of too terribly in quality largest is our think and quantity the don't to next actually think supply trends. at supply have granular digital final the that a for a But factor the talk obviously, detail

have on And the highest making supply. so we focused very are we that sure quality

are way we we the average, and typically stars which that is customers And and ratings are between we them think X web. and supply the highest look anywhere X rating coming on see back, quality actually, the we on our when at actually that available

focused in us. gives so really combine And continue X coverage about geography, to And then on we're matching. course, they ability supply-demand by deliver globally. an to to it you we very and of It market coverage you market, us strategic so able by to And then, continues think be advantage those for grow. our and how are provide

that day the we're And excited leading and so the to really teams just work they complement pack. make every the I are for to do want we sure

Operator

of question line the next Bernstein. Niall The from comes Mitchelson from

Niall Mitchelson

into a there of your cash got how something we sheet. that stake Could help [ of the structure? ] do collapse buyout of and the position sort Could delve structure? tackle plan mean you you on do that I Tripadvisor special you to a sort reasonable Is you've dividend? balance Liberty maybe can a book, Trips'

Mike Noonan

what heard the we Yes, but of still where on Mike. or that's just kind all make And speculate say point. really really evaluating could the alternatives, to Niall, They're of don't want to their process. this could we Obviously, we're can be diving types this into is think certainly, that. committee announcement we I to going avoid special at on those questions. on I it

Matthew Goldberg

the Yes. I mean work. special continues its committee do to

leadership developed businesses foundation, how as next to accelerate at we year consistency our our the the our when we for what business forward think in I on the sure deliver built continued a plans. what's of strategies, deliver as multiyear and doing growth no and situation around me working given a year that really we where and we said course, continue great will we our just into this I TheFork. we have and going has to that do, confidence continue corner teams And a we think and and making to then, at continuing and drive we going we to to that is really look about are strategy Viator with Tripadvisor which what were our we have is and out growth drive distraction it

focused, us, and to these build where continuing staying in about consistent confidence businesses going. are So for it's

Operator

question next Doug [Operator the Instructions] The Anmuth from comes line of JPMorgan. of

Dae Lee

is This for I on have Dae X. Doug.

be guys accelerating understand XQ First there, and and Easter in one, dynamic especially appreciate Viator GBV trending talk and you more should Viator gave on been into but half? a if little color bit the has how the that back about revenue you could growth

Mike Noonan

well to with Obviously, year, revenue Yes. right? We think forward-looking of. is going roughly aware about Dae, some you're in is more as don't be be timing We trending growth GBV obviously guide a how for metric. line think differences it's Well, with we to Mike. going the listen, do quarter-to-quarter, to GBV. it's

the So normal I time, to a than it year revenue full don't around big that. think was the growth discrepancy cancel period that the and things of a going like longer there call be other GBV between over growth things and rates

So I think that's just the way we're thinking about it.

Matthew Goldberg

opportunity growth. secular OTAs opportunity And are And what levers sort and and positioning fragmented are consumers and exciting online these playing the look category there we're seeing step addressable just structure from to us. and There of off-line total from real we such continue unstructured opportunities. shift trends, you They in to multiple continues. that It's expansion the at an that are to we remember and just for like -- market just we're to have to of market, ahead as our durable for really geographic in with and cohorts. a opportunities,

to continues that us. exciting So be very for

Dae Lee

How Brand what's a could as in your in at follow-up, more of I the medium doing transform show should on results? And up thought how think it. Brand clicks work to term. guess, about Tripadvisor, the going business Got us looking should the you you're -- Tripadvisor we volume remind

Mike Noonan

Yes.

and can Matt, the take on click part piece. we strategy weighing about I'll around So the what's talk first volume

pretty the different is consistent So click this Tripadvisor. I but think we've volume at traffic, obviously, volumes around Brand been than and click

competitive kind we products; more that When the kind clicks that. think been right? think puts had puts of You've the and have and paid pressure SEO that more the paid in again of got pressure channels. and two, years, more things, changes all of those, on which couple and you over about secular about through on more the you've as intensity time, just a X channels made the free One,

ourselves, big pressure while and some should -- we that results pricing. very the QX. volumes we but introduce on increases year-over-year, clicker seen in this point, qualified see what actual higher lot on is put price a we've we had of a clicks we've features third consistently, had That clicker may we clicks, say higher which comes talking the I'd quality or is on put pressure it a meaning we've consistently done this said of products by too, it does is time, pressure continue nice been push to that and we've clicks, in some have And higher and for that about through. even through

very borne again, That's of strategically some So is by much the fact. us. that

know, about don't I'll Matt, turn you over the I strategy. talk

Matthew Goldberg

the now. we've Yes. driver that work nearly finger doing business. a be known clear excites for put what exactly most think decade you transformation the because a for that we're about your all time not us I long of is on our And been to growth going Meta That's

traffic we relevant, As that out qualified back realized business brought of coming and it into our to will highly continue partners, they and we it. the highly pandemic, is that for lean

value to at work users quarter coming -- focused best growing very happening and identified last the the our the relevance value the changes they results fuel we our and reinforce who on while that's digits product and and diversify drive double data, are business around who a to geography can yet. those are in users have Meta site, are how perspective by and not we focused are product strategy and our monetization how media the see now really downloading on be and to meaningful even where strategy that our by users we about That in on engaging partner has business through leveraging who of focusing going they're changes driving through we Meta, geography we thinking We've in the that business, year. people engaging, our those should the lifetime value we media, diversify highest how where through partners where to started in members come been can the looking that a last say, Xx you are XXx using a high-value the rather, I on have nonmembers. We're our thinking value app of travelers, be

do have can being drive trip and of out more so much coming to laid that in about match levels it's us you've by for become diverse understanding quarter-by-quarter, you've travelers they're delivered planning, better analytics around driving consistently and to engagement and and seen experiences, that And it to and I leveraging at the through what being course, And we've happening, as we proof proof as hotels, is think points for predictive restaurants, us that, the a matching And of coming able that growth again, built demand. talking higher I of to the then monetization. in points flowing to demand. we supply we're set monetization the And suggests well that. supply and and experiences data heard see as upon that

is to future. be And a revenue set that which of diversified great your to in question is going one, how does the growth streams the drive grow sustainable that's

That's talk I the year And about we see the us in this this our quarters and that starting why out more we prove financials. we're and track, that and go come. KPIs to year transitional is you'll to strategy, into impact think and we've is year, the hear the been which coming we clear, really our introduced in

as recognize So some just happen that this again, we're might out We strategy, wish. into making progress. months there XX it good as super But enthusiastic. fast we're may over not

Operator

The next comes line from [Operator Oppenheimer. of question Jed the of Instructions] Kelly

Jed Kelly

Great.

Just X, if I may.

the better be to the U.S.? out you change out you geographical seen Just that it of then come growth to a Viator should any core, Europe? behavior Is any just can sort implies the from? some have Tripadvisor you growth, to in going still trends the help in called in travelers' are us where weakness And you in expect like traction seeing we of Or parse of on kind basis consumer? some change on or

Matthew Goldberg

Thanks, the Jed. question. Appreciate consumer. first the the I'll one take around

is proprietary demand There key very haven't seen data suggesting season that our summer and at healthy is of that that data the high, intent that that some behavior is changing. I we've travel mentioned, a hold. look we those in to seen metrics high anything we As suggests the

course, Of macro. continue to we the monitor

are progress algorithms things know the create think whole hard demand in that some doing I of we and we can And we're overall start April to between product that and our to trends actually mentioned bunch parse of macro a and with things to unevenness QX the noise. saw we around some

inflation potentially we And past and I own ahead cost high see living the a consumers the and signals season personal and high like mixed watch happening same travel But of suggests one else, to behave environment how balance normalizing still and in is to with what's on couple sheets. going the we intent an and we likely like to data for that look based travelers, their think exciting everyone the as be see years. we growth of also, are

Mike Noonan

for Viator Yes. X, growth by geo. On question

is our making English-speaking growing America we wide are and obviously, And and on remain continue market margin the U.S. North here. competitive markets still that of sure markets travel larger market, leadership we primary market. focused the So primary that our very It's

so we're very that. focused on And

comments so really around And are our North geo, more Jed. the American

and that, future into that's maintaining do we other opportunity right geos have profile the is about state of to terms of financial that think for how attractive, but that more a think now. and that a think about and move want certainly we it in deeply think I the in to about way we

Operator

Instructions] Research next of Ciepiel line from Vince The question comes Company. Cleveland the from [Operator

Vince Ciepiel

if was could save Curious lined touch you this year. the on cost plan that for out

it a like through investment commentary could TheFork And then some That's it there be in today, maybe place? to feels the then terms well. areas based guidance in those of are? flowing most might offsets I Tripadvisor number of what and still you on as Brand think and of speak

Mike Noonan

some about flowing brands. basically The Brand we are those at Tripadvisor TheFork. was TheFork, that million Hello Vince. million $XX this choices year last made do year think think the gave our to to -- through, and then strategy. year. about and referenced savings room that of some both is Yes, execute lot areas hopefully what we journey of difficult cited X seeing we important while to programs talked expect Brand our we've execute about at we consistent about At on on on we do savings us execute around strategy, at sit that were about that their right? last those think script an savings cost even. And profit Tripadvisor, and have that we back that's we us we to the $XX very the on very need really strategy? gave been a need redeploying in in of we ability part this, And our go-to-market we the think And areas our how and

be environment. really up think here. We're ramping seen we've ways in So I that scientists, our test were product learn would and don't engineers as ramping things before like we data really development that up

hires, some And the into savings, being environment that's strategy, we across on data new over used of migrating through more into cloud-based with way some our a continued areas tech so journey in time. the through the modern think, of roles the And backfills we've some stack different referenced, I are and invest are as technology of in backfills, businesses. very continue more will well we a into much engineering to as a roles a

lean think and ability it be that. people to we areas are to the was the to flexible do to into, balance on costs gave right needed that we some continuing It So we into move. us

Matthew Goldberg

LTV-based ability are show programs. and things but seeing obviously, unique, to strategy the can Yes. in starting that you're that humans new the we of, it to And do marketing do up in the the form also that generate are

You to that place we move that and allows that, performance us science and expect us time. And as have your stack, deliver modernize for to faster. our to to in we obviously, do over tech your data have data

You and are get you of agile kinds as can. that you Well, want the to fast get to those speed required to investments as want moving to. possibly be always to

consistent something on we've strategy. we I think the very things that here haphazardly. didn't these maintain We deliver it's about. So was to thought very carefully do this goal flexibility And to were our

Vince Ciepiel

revenue much. segment. as a then And the Last really the zooming cost the I were up Viator costs side in impressive, to and closer maybe more about year, think growth is bit little but one Great. on

I up I similar saw up costs a $XX in maybe we think think million, the it were total where but quarter, was $XXX-ish million or something $XX here almost was dynamic million. like first that. And revenue

the as would envision? things to you course growth of growth close you could expect on cost I just a through Viator. line So profitable you for this revenue move year, dollar pace lot hear profitable year, in that mean And we the different for the but with to of

Mike Noonan

Yes.

a So things. of couple

growth year-over-year, the things to bit are invest So right? other There that there. We dollars analysis relative continue just in expecting got performance rates. compare think tells to a a I at It's just we're obviously doing channels, that I little of when Yes, just you remember, think compared you all right? not Viator. to of things just terms that in look are margins improve, marketing to there's couple on

more the discretionary like be and and costs and people marketing could That brand fixed like products. of some

journey. continuing we are on So a

As to we about, there's ton continuing Matt talked areas. those people of in technology and Viator, about. push hiring a innovation, we're just excited which at product we're And very are advancing

So and supply there marketing just point. are variable in made not product, costs all that's and think being investments still along the I

Matthew Goldberg

happening we and us And those continue about excited with our trade see what's in we be approach our strategic are about obviously acquiring various you'll customers how off investments. cohort. Yes, new very to

for time. So very But mix area about marketing that. a We're right? that product way are investments we'll we do also over thinking the the look at exciting Viator,

there's drive asset I that the have data billion where on think personalization leveraging will loyalty and and the the to conversion. and Group, app very really we supply Very help that of profiles that our on ability focused really on and Tripadvisor We're serve suppliers Viator rewards repeat and kind that focused drive how leverage, and rewards focused X program operators. drive about really conversion. repeat to because of its Obviously, thinking behavior, we across

advantage course, drive AI both and of that enhancement. deliver And how take and thinking then, to of to about productivity

the will lot I So it winner for in and we you're and when this a think is, share, long we experiences a And the be long market what say seeing in balanced of We're profitability there. it. term. Viator there's for excitement really growth, can and haul mean

Operator

question next from The of the Davidson of & Tom Co. comes White Instructions] D.A. line [Operator

Thomas White

the that touched travel asset. to of How of changes relative wanted improve traffic that's you that guys that how or rank at mix quarter? on guess Viator you up direct does the are follow And up to mix for all forward? whether about feeling do Just on. impacting how Viator, on Tripadvisor? app you kind maybe kind Brand Curious this mobile I And going

Mike Noonan

It's Tom. Thanks, take Yes. it. Mike. I'll

On the changes.

been there's a that's And lot listen, this. been the some happening end on updates they So last at just had of year. even

anything lot impacts kind look that, So the sure. going to for these comes to right, our play and through. we've been it's of traffic of impact -- flowing that kind of seeing brands that When to SEO, at and changes a

things of change like time. But work have takes great when it that and work process do And teams in right? mitigate been Tripadvisor We the that. great to this, doing and that Brand has time work and for readjust through they're time, doing it and takes to that some

channel would I have And bit seeing a yes, app impacted and channels. that what very the we're So our fast. you what changes earlier. cited SEO, still get to is again, other with very pleased you say, And growing we're, I referenced, as in

fast. again, to a channel the users, Our a process of And SCM for new user start new us is and growing to main still user. channel that's repeat big right, acquire

the SEO. other healthy headwinds note, yes, there channels. do see are still some performance across But we in So the

Matthew Goldberg

time. well. I as I want say got talk just to Google, we them And partner to to On them to we are the a say all

we're that making think work group, an we is to across how very Viator changes, react I So in it to for think going you're true of that's Tripadvisor we good and do organically to future group. a advantage about feel and both if to with that's the and the how them in Google the position

comments, the to upfront also how shopping over travelers tremendous relationship hundreds from of one I You this think, of and is I Tripadvisor more leaning us. direct and my for where channels for opportunity month benefits millions coming creates, upside it than said really remember are that for into with And our to channel experiences. optimize time of on it many that Viator X/X have Viator. in each

make our it's also course, of loyal to of healthy lot fastest-growing the which surface, work our app, surface. And we're product conversion, is that sure at We're improvement in again, doing app app but and a investing base, seeing And most on high headroom us for our the are very and the a performance well. still for is growing upside a going rate downloads smaller and tremendous future. the app

to for really we lean really, like plan So question. and into the that it. Thanks

Operator

our commitment, Thank time our time you. limit. We've met

over to Matt So now closing back I'd to for turn like the remarks. Goldberg call

Matthew Goldberg

Thanks initiatives forward. our today. everyone joining our to forward on the you continuing See for drive We're executing us again next looking XXXX and to to plan update. with

Operator

for your the in you does conclude participation This conference. Thank program. today's

You may now disconnect.

Tripadvisor (TRIP) 8 May 242024 Q1 Earnings call transcript