TRIP - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to Tripadvisor's Fourth 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 speaker today, Angela White, VP of IR. ahead. go Please

Angela White

Good quarter Michelle. and to welcome Thank full morning, year fourth and call. XXXX Tripadvisor's you, everyone, financial results

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

filed and you'll most call. release, of comparable Earlier this financial reconciliations morning, made our discussed In find to earnings measures financial measures available non-GAAP GAAP that release. the this we on

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

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

Matthew Goldberg

consolidated and results for finished quarter Across good bottom line XX% the grew Tripadvisor the full Thanks, segments. our everyone. the QX, sequentially and EBITDA we all a both million improvement exceeded on in that and Group, revenue the In X% growth across million, morning, top to Adjusted Angela, with fourth $XX was result of year. strong, revenue. XXXX expectations of or $XXX healthy

For the full $XXX year, revenue reached $X.X was million. billion and adjusted EBITDA

against priorities strengthened and progress strategic our EBITDA our meaningful delivered mix. and we XXXX, In revenue

delivered from contributed growth $XX segments together adjusted all our time, positively Importantly, profit. and coming X first half prior versus Group the incremental Viator of TheFork, marketplaces more our for of year. EBITDA And the to revenue million is at which now than

the nearly billion this to by of we the financial and GBV center ability reaching Group scale, to in fast-growing leveraging our leadership Viator's in to extend grow increasingly $X.X strategic The position reflect large market experiences results our our gravity is assets with becoming unique as market. segment category XXXX. our continue and of share

XX% year demand above-market we growth the QX. accelerated for and journey on deliver revenue continued side, in the our to in profitable XX% On reaching growth, with to

nearly making continue booking the which we're economics Direct on for as on improvements speaks point-of-sale the scale. year, unit the to XX% consistent we Viator full to volume grew

attention marketing to while areas We put more efficiency product loyalty. in of critical driving conversion on investing consumer-facing and increase the

full our continue mobile Viator's app, was more channel to up fastest-growing volume on the focus with year. which We than XX% booking for

the side, of grew our provide we the them. the than value number on operators platform testament a more On to supply XX%,

critical grew a third-party asset in twice driving in revenue, XXXX. rate is advantage the partner supply which segment the our Our of more overall than

strategy made our by while At on key year, our our throughout significant Meta. legacy navigating the our The Brand and Hotel momentum progress quarterly Tripadvisor, metrics. in offerings, progress strengthened engagement-led conviction we by supported variability across tangible notably saw most strategy driven we

and turning and accelerated For focus serves rate. engagement important the and example, by successive Global our global for digits engagement as that members near-term in in the monthly in members, active the in these experimentation, improvements users, indicator to persistent periods. most our testing from Monthly new of with changes, back are grew Tripadvisor which geographies, loyalty our each in the of growth. Each product of grew believe in where XXXX foundation and driven active result monthly prior active enhancements twice more we reversal features users we a through core year an declines mid-single grew U.S., quarter. stabilized

history, meaningful first year representing $XX the financial nearly the serving This year. trajectory X and in leading in driving important is Our an highlights than and diners billion improvement million dining its time brand more profitability for European business. EBITDA of market, million dining as segment, point TheFork a adjusted EUR in marketplace, in XX over this million grew to TheFork and the of performance the positioned inflection XX% spend XXXX. an revenue of last full $XXX the healthy strategic delivered progress restaurant

Turning to encouraging entered sharpened XXXX. with We momentum the and year focus.

Our plan Group revenue the sustainable a across multiyear growth path positions to each and segment. on EBITDA

year We and expect from return marketplaces Tripadvisor on portion majority and XXXX. full improved year growth to of throughout an our in the its while to Viator increasing drive financial profit TheFork, stabilized of at growth revenue and profile our our the its

revenue is also we first benefit the This expect to become Group the with to category travel secular revenue This year, experiences are we uniquely strategic durable experiences for our of from and its to our that has tailwinds. progress increasingly largest consistent time. the plans, positioned contributor the essential be to vision

Our is Group strategy for clear. experiences

Tripadvisor, This We enhance approach scope fueled a our audience supply a to bookable includes Viator, OTA full more leading breadth the leveraging the and at advantage of asset. capabilities will the depth category, our XXX,XXX by and by position. travel build all on of taking competitive the holistic the globally, data from nearly operators largest and spanning to shared XX,XXX products leadership assets powerful than global

such Our our scale work and advantage, brands teams global Tripadvisor Brand relationships. their will supply at our Viator together first-party by and advantage differentiators, trusted taking as of accelerate data

needs. the meet navigation drive leading our to with user experience category delivering product, Viator and in conversion find customer year, improvements XXXX, more to our the and product experience helping matching, data deliver strategic our For prioritized we starts search, in in and that easily investment loyalty. focus travelers at their perfectly Last experiences

product satisfaction. customer we ongoing rates our repeat in expect conversion, see As we in and investments improvements and to continue data,

customers increase marketing and and funnel our channels, continue We'll efficiency delivering optimizing customer journey. along attracting to high-intent other converting marketing landing better and pages the by improvements

economics. and to our ongoing better our content will which including tools, fuel have leverage, many a signals, cross-brand assets together in experience deliver We relevant to shopping improvements merchandising unit

in destinations and category serve suppliers focus We'll tools the better our catalog, choice to to continue their participate supply. and our in experiences geographic on marketplace best our to customers. world's to and our enhance optimize filling building to bookings. gaps We'll continue Turning key help expanding

supply plays in we across time. bookings in importance points and expect to sale investment proposition, all conversion benefit the over the value of travelers' Given supply

and existing to functionality third-party our would our extending unlock channel grow will Finally, benefit partnerships. our enhance API, directly we reach to at continue access. expect of also ability We grow By difficult third-party incremental, the distribution be key rates. relationships these partnerships, new to to a and that channel investments value as high to features partner profitable our demand, partnerships otherwise our

the managing we expect be We've future. and legacy progressed transformation our trajectory to known Tripadvisor, challenges of our the where setting XXXX the foundation shift we the our stabilize year to past over business, Turning while structural years, the Brand now few for our profile. financial methodically the

focused organization. engagement right and aligning our product and the leadership capabilities metrics. our year, developed XXXX, products, features, establishing we the improved stabilize delivered talent we In Last new our audience on to scale

outcomes. This of the scale cost have heighten conviction structure to align our year, level on we've continued financial to to areas high we our a where focus

services. relevant our to and recommendations. visual travelers through on As to a with With we'll opportunity browsing, checkout including focus visitors focus improvements, the more we site accelerating month, starting to more of growth more hundreds of Tripadvisor-branded convert enhancements across experiences enriched millions have point, every guidance

across We category Tripadvisor, large for we looking among of demand experiences. awareness to tap the will and underpenetrated growing campaigns and work across We'll base the as to on experiences growing experiences around verticals. continue build travelers drive marketing plan to also our Group geographies

in provide we Second, app trusted of We're AI ramp focusing to tools, to mobile and the offering rewards. on guidance We trip improved take continue more expand personalized personalized recently relevant we'll Assistant, drive hotel information Travel helps of surfaces launched and [ availability where ] our facilitate and leveraging through bookable seamless hotels which guidance booking conversion comprehensive that plan booking multi-category chat-based our action faster. and and adoption to capabilities. travelers sort our suggestions our AI planning

booking users and continue across scale our in We categories. expect our drive growth to improvements to active product see revenue app

And third, awards also ability such to new their travelers our across redeem to platform of offers testing traveler rewarding and personalized most interactions. formats ] blitz of expand which with focuses easier, the membership on as We're awareness content we'll earn engagement contributions that [ and benefits drive the offering, differentiate on bookings. community and tips, our our engaged make and

these this year initiatives, marketing drive Tripadvisor, our invest scale trusted strengthening at brand. while funnel full which impact To believe we'll we Brand financial in will measurable

more Our the last products monetization, channels testing and to higher ability confidence mobile expand direct deeper awareness and in and our given engagement to acquisition drive has the year of traffic adoption. diversify our yielding us over

market leverage TheFork In growth leadership segment, marketplace, in on innovation, dining and we financial improving while position to profile. and our both efficiencies offerings. restaurant the European operating Now the across year we'll turning our driving further we'll our build balanced product to accelerate last our dining achieved where diner our continue XXXX,

across awareness focus more enhance our flow, continue social, brand side, customer diner investment including growth marketing, and and the product on to and engagement search to marketing long-term retention. performance we'll rankings driving On dining program through in conversion rewards balance our improvements We'll personalized bookings and recommendations.

base. ERB the providing penetration We've continue existing strategies the to enhancing invested scaling product, the new experience. supply we side, acquisitions in modernizing as our additional quality, opportunities and our expect of more in product-driven supply accelerate software, to growth and improve this we restaurant cost-effective, we'll and On our restaurant improve through to onboarding usage increase

and like We're that partnerships and also our reach new our attract recently elsewhere. partnerships new the announced further to and diversify retain ramping the diners the we These Mastercard mix. revenue strength brand of opportunity pleased don't the ones underscore with of we at Vodafone

a content unique We and strong position trust. marketplaces. all fast-moving and audiences treasure patterns brands investment create all will we're us growing across the meaningful leveraging proprietary privileged on of help substantial areas and from of Group, multiple our intent, reinforce new believe our our across in and conversion trusted across and We data Finally, AI of signals the our engagement value products partnerships landscape. to through categories, trove first-party assets data, to large of data and data in a logged-in sit of data

leveraging provide of and it into to the have our product, it Our to most to in delivering operations to AI operators, recommendations. and better and infusing pace been our relevant service a teams customers innovation, the quick insights adapt

audience of platforms agents the Across to our of We're and the differentiated a create exploring collaborating also about with our on to test we we've our been incremental book sources learn more and of conversion marketplaces. a engagement AI tap to discover intersection category seamless and new and landscape, as number across AI content opportunities traffic way platform.

to expand partnerships with experimenting and this in innovating leaders our reach dynamic are space. through teams Our strategic select

addition we're the want capital talk flexibility. I we've in the to transaction related portion areas Once we shares shareholder will made all repurchasing more controlling important this allocation. QX, also of announced to December. we significant effectively Group In to agreement our progress likely accelerating on but business, chapter path through And be a strategic to shortly, in Tripadvisor we to clear. about made across for some an decisions with move the and a Mike will closes, with new momentum this of

employees already making us. recently, and for most travel pivotal want teams some focus. are on experiences. a ongoing I to to is XXXX and commitment their year be for our discipline with way our executing source hard trusted their energy, our despite And to thank the for vision choices all well

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

Mike Noonan

then new quarter and review disclosures full Matt, our on with we'll I'll I'll good revised provide brief start a outlook QX. presentation, Thanks, and P&L for year, and XXXX the later, and segment update morning. and our

As the otherwise. relative XXXX, comparable rates all of noted a growth unless are reminder, period to

our part adoption segment table includes we release segment-level expense a details, provided earnings morning, the additional First, of our disclosure reflecting this of new as that guideline.

and consolidated our same to which greater As line transparency believe part our the we'll align the opportunity results. financials items, use we to consolidated update, segment between this of provides

for fourth the Now the turning quarter. to results

grew than GBV. XX% demand Viator growth. growth The was to million travel points was At due and experiences revenue our gross Tripadvisor reflecting faster grew sequential both at high GBV, which the in represented quarter, booked the Viator. revenue expectations grew million and $XX grew value, than or of number at $XXX and our Consolidated XX% and the X million, point-of-sale, XX%, segment bookings X% booked approximately Consolidated which Brand of Viator, higher adjusted of performance or of expectations. was $XXX million, to total driven or revenue $XXX to EBITDA XX% end and experiences by healthy

a is growth segment a total priorities reminder, As each across and function of profit size, sale. point relative different of growth

our is Our teams the leverage differentiator offering of brands experiences the an which strength our continue in important globally, to optimize to category. we believe

bookings On again of progression the as ongoing outpaced the acquisition once at unit Viator point-of-sale, new economics supporting these bookings growth repeat come Viator growth, bookings lower brand's costs.

XX% adjusted expenses a due than related to Viator and [indiscernible]. of was credit revenue expectations, EBITDA million $XX primarily to or slightly to better nonrecurring indirect was

the saw channels. At quarter, Brand was improvement paid in expectations which Branded improvement million, pricing We X% favorable $XXX sequential pricing of and both due revenue $XXX in X%. to Tripadvisor, decline an more was over and revenue million, the in decline in of a exceeded a throughout Meta. particular QX, hotels Hotel volume our

creative offset with declines all Media revenue well correlates revenue, more geography, and advertising, performance to than growing and $XX other as as modest that growth offerings the posting in in is of to slower strongest strengthened the [indiscernible]. Rest quarter market, programmatic grew By advertising million. off-platform broader display World which advertising which volume, advertising display than the year-over-year. includes throughout with traditional Growth X% traffic advertising regions

of ROI as the experiences, strategy Experiences and Performance million, well testing driven to segment-specific optimization revenue revenue model. last impact Brand a was the as dining X%. transition decline In performance reflect a ongoing on continues and be we balancing funnel embarked year. to dining of product-led by self-service Tripadvisor's to $XX continued and marketing targets, sales

reflecting Importantly, profit experiences mix traffic remained margin healthy, with predominantly margin a is that paid ROIs [ free stable contribution combined profile ].

$X of business due to Other primarily rental shift merchandise solely supply, to revenue our in was approximately a partners. a decline from $X offerings million, million, vacation model

Meta representing was outlook of stronger in adjusted Tripadvisor fixed adjusted volumes revenue. November, Brand technology. our million, in our G&A was $XX XX% personnel, than Hotel to EBITDA to and prudent Relative cost across management due higher EBITDA expectations and

and QX, constant was was revenue points strong both XX% growth TheFork, performance currency, volumes XX% points At growth with solid constant as currency. X% booking $XX XX well in or Growth X driven volumes in or as In million booking up by sequentially in grew pricing. higher reflective an growth adoption past have improved the for driven made meaningful Strong of that's all channels. our rates product across subscription year-over quarters partners. paid plans was and value we the of several revenue growth to our proposition of by investments translating over restaurant

of from Additionally, both of and partnerships the QX performance impact the benefited with Vodafone second initiated in XXXX. which of half Mastercard,

Adjusted EBITDA us efficiencies marketing in The costs will quarter. achieved with with technology for make benefit in and growth operating the line to allowed we breakeven expectations was personnel investments incremental that at XXXX. believe in we

company-wide acceleration revenue, was of during personnel grants. share-based usual marketing revenue, was XX% XX% to rate share-based for increased and consolidated TheFork, million XXXX Personnel of due X points growth timing which Cost million. revenue XXX compensation, XXXX. due in period was of of last flat to year-over-year. X differences outpaced to The XXX of for as XXXX at spend approximately X% consistent a basis was increase in onetime primarily compensation XX% points The Turning equity consolidated disclosed basis years $XX including expenses revenue, of increase year. our $X to compensation lower growth. run equity share-based Marketing the quarter. to of revenue, vesting to vesting was of employee of approximately revenue an due with Absent Viator of schedules years, from than QX in the grants

at were respectively. flat X%, year-over-year G&A Technology and X% percent a as of revenue and

as we in result of restructuring As costs actions I'll initiated million of a moment, incurred discuss the $XX quarter. a in fourth

Tripadvisor. billion briefly revenue at XX% Consolidated or Revenue Brand TheFork full year $X.X at growth. performance. an growth decline the Viator offset Turning and X% of to revenue XX% X% was at was by

performance focus XX% profit and from our up TheFork growth. Viator consolidated mix will that fuel long-term Group 'XX revenue Our revenue revenue, of in XXXX our in of in ongoing XXXX. XX% diversifying XX% contributed and In XXXX, group illustrates and

or Full modest very $XXX EBITDA basis million year points. XX revenue, less adjusted of than XX% consolidated was of representing deleverage

with and XXXX continued growing As consolidated XXXX. in see adjusted as million incremental we revenue, a versus EBITDA our Viator diversification $XX in TheFork

at adjusted strategy. engagement-led in year-over-year decline EBITDA EBITDA, Adjusted by revenue the and and was million with aforementioned $XXX growth Viator and in largely TheFork to driven AI due prudent Brand management marketing at personnel delivered Meta, that Viator cost efficiencies support combined TheFork. investments our performance data Tripadvisor in Hotel a at

cash was IRS million, by million in cash and offset flow to driven and flow merchant improvement million, XXXX cash $X and previously XXXX of interest capital QX free an other settlement turning described from working was to liquidity. growth Now by payables, pricing refund a transfer [indiscernible]. and negative the operating $XX negative payments $XX deferred partially

[ the $XXX operating free XXXX the to driven in by cash million transfer cash and were The changes settlement related flow other flow operating nonrecurring outflows and full $XX cash was ]. IRS in free impact. flow tax-related and was cash flow decline primarily XXXX, capital year-over-year working cash million pricing For and year,

with cash in and $X.X the billion approximately cash equivalents. ended We year

will shares and quarter, announced million Preferred fourth X to approximately merger of issuance XX stockholders. the planned During the which subsequent approximately we result shares agreement retirement of Ultra the a Liberty with the in Tripadvisor, million

December total outlays in QX in transaction cash. ]. regarding approximately Details presentation transaction be part of can million $XXX close in in be of XXXX. the the found As we posted the agreement, to our expect anticipate [ to We

trends the Now and year. outlook to for I'd recent like our to turn

of executing XXXX Each consistent our that focused adjusted Group teams position ambition lay growth will year accelerate foundation the are in operating the term this priorities set strategic we profile. a revenue and our that on clear mentioned is EBITDA in Matt positioned believe and in As medium this against prepared remarks, financial of his for diversification the deliver continued to segment portfolio. its well to

In personnel trade-off relative marketing and growth durable to progression. flat will products, will app XXXX, to Viator, both will growth margin supply begin an well with near-term membership that operators, At we sustained progression. plan between depth we're costs we'll enabling last improvement improve efficiency our investing breadth catalog, across and At marketing broad year. to with our while and travelers investment keep that and the made strategy our enable that process ongoing the which believe of drive experiences, restructuring continue a as we strengthen in product-led as QX, Tripadvisor, scaling to manage Brand initiated in levers product enhancements the initiatives growth

expansion. our will product efficiencies continuing ongoing enable the TheFork, in drive At to we continue to growth leverage margin drive investments operating while to to

our outlook. to Now

of margin For management. XXXX, year acceleration EBITDA growth, consolidated to expect which underlying represents from XX%. X% to reflects expect high-teens mid- an and of we At X% volume revenue booking adjusted last XX% healthy we growth and to Viator,

digits, the specifically, our the revenue, expect year-over-year approximately sense. basis, we X year-over-year year-over-year comps the to mid-teens, growth we expect improvement which first half At in More low currency stable Brand a half points incorporates incorporates FX growth. expect expect due single-digit and the half of second Tripadvisor, FX -- growth in On the low we At current first expect revenue of we impact we TheFork, first revenue headwinds. revenue constant the which marketing part stronger declines. year-over-year For to year versus to double difficult trends in headwinds in rates. low points at approximately X of an

accelerate Viator expect will manage to which pressure consolidated [indiscernible]. year and to EBITDA growth will For believe in this adjusted to we investments, TheFork nearly XXXX. At the offerings in legacy double adjusted EBITDA we to from impact both margins Brand revenue nearly our Tripadvisor, us and set adjusted order but revenue EBITDA, up costs fund to incremental we continue

growth sets this basis, return a a Group path plan revenue and a clear the to accelerate consolidated in EBITDA growth XXXX. to for On

QX Now turning XXXX to guidance.

to flat points low decline, growth. holiday and For single-digit headwinds consolidated revenue, we X which timing of currency approximately includes of expect

For consolidated revenue. margins of X% adjusted expect X% we of EBITDA, approximately to

X volume revenue due to booking X% to of timing holiday approximately of At growth a Viator, FX. XX%, XX% headwind and X we points to includes due XX% and expect which to points revenue growth of approximately

expect For approximately of we margin points. XXX at adjusted Viator, improvement basis EBITDA

double comparison XXXX. we've decline QX difficult to pricing digits Tripadvisor, Brand observed we Meta was expect dynamics, in revenue but had At sequentially stable largely low unique Hotel which this in pricing quarter-to-date robust to unusually where due the a

EBITDA by related Brand and decline we margins Tripadvisor, profit. impact adjusted declines contribution approximately XX to For primarily due to expect points, to revenue

low and At approximately X due expect points X in growth revenue of point currency timing. includes TheFork, the we other teens and headwinds to calendar which from approximately Easter

For at marketing adjusted of modest at typical reflects -- XX EBITDA points. basis TheFork, we margin TheFork investment [indiscernible]. both improvement performance expect seasonal Adjusted at TheFork approximately EBITDA and in Viator

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

Operator

the line our And first question comes from Instructions] of Ju with UBS. Stephen [Operator

Stephen Ju

Great.

So Matt, experiences XXX,XXX looks in the available, of the some during you saw XXX,XXX growth Viator about the course year. to from acceleration like it

I about out supply think growth. fourth the your quarter gross bookings And XX%. grew that X% about to in works

scenes might things hopefully you're talk rates be that about perspective might behind be easier happening be product what versus between the to doing So what comparisons? might can improve what we conversion a from

Matthew Goldberg

Yes.

between there's driving Tripadvisor Viator we at that's a attack Obviously, on lot think So the to and opportunity growth. work how Viator going holistically. to experiences about are we really together starting

on very is focused Viator product. Now leaning into

really deliver when that direct drive more they repeat and way going going traffic. efficiencies, about product think getting marketing channel we're our in to that that diversify to the to will mix and experience is it's way And begin both the so the

match the and improves the right improves and UX. to They're we intuitive and come geographies matching as back. and possible. supply focused grow, expanding sure that and on as focused seamless in product as experiences. an travelers get recommendation they're So delivering them many will the That that on They're demand and sort organizing ability to making find catalog

to gets that of All book more return. efficiently people and engage, then

we're to enhance app. our that, improving And on focused

all is as Now the repeating. going catalog. you said, and to details about app secondary sure in after shared go continuing And enhance improvements, making is we're UX And search, to the direct supply geographies that's logistics. app that And serve. traffic about we and highly and markets, want starting to think also what markets, the tertiary primary both it's we but to really other booking

easier onboard the experience And efficiently all in of our as they course, improving they all to teams, to finally, possible. data we're and and details. AI and are, search, of for operators making as innovation, operating need it other their product across efficiently the get of bookings participate, leveraging to drive like focused And to sorting on our

path So continue experiences think progress down as our this to the to margins road. healthy long double-digit at in we're can CAGR We excited term we a on come OTA-like category. expand pretty margins about a strong and the we long the to for period

Operator

Khan Our question the Naved with Riley B. Securities. line next comes of from

Naved Khan

just maybe category. the had question around I a bigger picture

So how Airbnb Viator awareness a been new to mean you more about launch year, and this as it kind you maybe of on experiences get does for that mean what thinking wanted thoughts category and growth talking entrant you and and for that? your what of are about has have for growth creating does

how expect for expansion what XXXX. for question And can some did provide around guidance Viator Mike, other have that? this year? on of we be some kind The will I is you the on much maybe driver margins clarification just

Matthew Goldberg

growth to We it you the the category does, as from. then category also we opportunity that think customer massive margin good is first and a size I'll see Mike the size we and from awareness, benefit but with I hear follow category and we agree the Airbnb just question. which we Naved, Yes, speaks opportunity, to think take and think this with question traveler suggested, can will big the the of relevance, very you. and experiences ahead. build interest about overall the up the

advantage, we're We've our We the Once We category. also is marketplace. talked lead you to advantaged in this with leverage it, really it. across not the have easy like build. fragmented OTAs to the that especially supply. XX,XXX continue operators. really positioning about scale have to think highly We focused an think That can in largest you XXX,XXX experiences experiences

leverage supply demand. that can You it deliver match with you the way and it in that

third a as Viator really this with to the focus have the business, that take an we growing ] BXB that unique We is Group, the match our our it's that, we is tech have Tripadvisor. the use, we we've can know OTA, a for fastest-growing also we And Tripadvisor as searching party that of anywhere. comprehensive rev because approach largest position which that the think portion still audience rapidly, got traffic experiences we like Mike? [ and think to a travelers and traveler available largest on category and nobody We else.

Mike Noonan

the EBITDA were guided amount, for just not doubled. clear, guiding more on on we've Viator, to year on nearly so be We for guide a Naved, full dollar margins.

well. margin to anticipated particularly Obviously, FX nearly focused see But can amount, we expansion dollar think I margin assume that within year. would you that I So as which with that double very clearly is on wouldn't mean think necessarily that there this headwinds comment.

to that that's So folks. how trying we're frame for

Matthew Goldberg

and And I But very many that different tailwinds there's percentage, early early we're importantly, opportunities a just just we we're want in remind is OTA think opportunity. The there's capturing And to in geographically, stages, in small everybody, experiences that right? reaching. in see we're to as grow, categories also, the we opportunities there's ways our really so general. not currently

for the top and excited bottom growth So ongoing we in about prospects line. very are the

Naved Khan

in so, impact Got FX, it. the And understand better of maybe just to Viator.

the non-U.S. by versus of bookings Or So business? is it and overseas you that U.S. that's how on I affected [indiscernible] for should the how understand FX mostly kind get travel U.S. there? get going you tourist

Mike Noonan

mainly It's euro-denominated with our right. that's business. Naved, Yes,

We have travel travelers travel to out-of-the-U.S. -- to of a our that corridor so corridor, It's of speak. lot Europe. largest kind

that's, of we creates headwinds. that's again, not it's approximately in there. our to order remit And where biggest euros, may And points driving dollars, in and what and that's the we operators X of business, so but collect entirely, headwind

Operator

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

Richard Clarke

opening members I a for at firstly, talked about redeemable the bit digits. just think talked you Maybe And members. mid-double growing about rewards in remarks your having on, later you

membership could today? it do So your coming Is What your something this maybe is who's you have investment? a of about talk rewards? that's And is? your How funding from Tripadvisor just revenue members suppliers? this position? many percentage Or those you

Matthew Goldberg

question. Appreciate We're membership. excited about really the Thanks, Richard.

membership been in We grown quarter-by-quarter. have opportunity. in It's growth that mid-single accelerating of definitely we double-digit year. mentioned, finished we As the the the for digit year segment

over We've past about said million that we the had members. in XXX membership and talked

So in about when where growth contributions. would about to membership, and Membership come the the both together we're on something from all base. bringing and to reason it's platform that you we're talking about engage, really to is growth those contribute talking benefit

the experimentation there. is So important quite our actually in product

bookings, has We in AI been added And are we adding obviously in we membership investing We've and of proven to bookings. what last offer leveraging the hotel opportunity drive and app cross-category which booking about booking are And and space we that and hotel experiences personalization. course, be self-reinforcing booking the really drive growth. because to about quarter. we're talked in excited our can do

full The price are the it. return take we rewards then rewards where and

proving repeat and We they're are stickiness. to creates that something funding those And rewards. be

rewards it So to expand continue we're into categories. to the across and excited lean

integrated community. more improvements, formally contribution rewards and, we travelers for valuable product have should including of features And most wallet, new to linking our and We'll categories functionality content reengage and so it will this with to promotions formats these this web. launch have and the we'll our across course, differentiate membership, year, which and a

is we engagement strategy, growth is good there. are something and membership So seeing to critical our we that think

Richard Clarke

Just a follow-up.

remarks your in will phase. resolved, once said new Tripadvisor position enter ownership that prepared You the a is

Just the what has by what better? do What been do of other the held ownership terms the can you side business? in will position? What back changes running

Matthew Goldberg

structure Yes. we We vision capital flexibility the gives our how removes for ownership, is controlled more pursue it for us much simplified. Thanks our and question. overhang asking and our think It's strategy. an Without cleaner.

means any have own We a the value want class level limitations future. that make and of shareholders. different we ahead, value controlled drive from and of a ways many to what single And a avenues their no for shareholding. might of shareholder think will there's solving what that shareholder see we we are create of that longer have views lot We for in investments to their to

to And capital we'll as investments, for we always And open-minded business continue can decisions. as do opportunities be for we'll of in all see we'll for continue we efficient opportunities that. to and value as operate have, the way to to M&A. shareholders, best we organic we the always about allocation be certainly, our We see think maximize

Operator

Our line next question comes from Trevor of Barclays. with the Young

Trevor Young

Great.

well. suggesting expect Viator TAM back are 'XX as online, and, dollars double-digit category EBITDA XX% so to guide the experiences, piece 'XX maybe of to obviously, updated high-teens but a to doubling through your focus some territory a gains growth figures on low greater they Just you growing in correctly, and the XX%. implies growth heard persist online obviously, kind to share shift there, I If

not kind growth growth if manage lower that and most Why one there this travel? is of of accelerate a attractive really to dollar of your level areas EBITDA the online

to then these in a give, what deal you expand of arrangements Perplexity question, what partnered do bit the with I well. OpenAI terms like in of those And duration of get side, Operator intend you you AI possibly whether on with anything Can economics, those as partnerships? and you you and think on return, looks more it around second just would partnerships

Mike Noonan

Yes. Trevor, the part. part it's the I'll second take and Matt take first Mike. will

customer So And does means about would maximizing growth to I and that look acquisition. those that trade-offs ROI payoffs are say we attempting that decisions it's make And the we're acquisition, decisions the -- and like has particularly right? or on great and associated and profitability. in on making certain with making We pay channels. an efficient we what growth a LTV around that, question. think decision that think

feel we efficient. So spend that like is

and cheaper. is seeing model, inherent get get repeat. And talking when you're progression exactly to the which is they what to them margin acquisition repeat, to in the come about, meaning user been we've of some back us drive new think we them I

seeing we're you're the our acquisition So the margin are much table per on our efficiency than about modest is dynamics with leaving of dollars. scale where more about happy on we margin think and the growth pretty progression I se. repeat And model the I -- think as the

happy think speak. I we with pretty we're as trade-off So the

focusing bringing supply, all way we've acquisitions, in go talked outside things marketing which the investment, in -- unfold a the remarks. So we sorting that talked about product right way, as our Viator, at we're conversion, into, priorities on Matt have right? as And the really whole about his best leverage prepared that's our for to XXXX excited expense of other the very product about

that So Matt? of about we and continued the outside progression growth are excited the [indiscernible]. profitability really of are market pretty

Matthew Goldberg

Yes. Thanks question. the for

the adoption it areas for going don't disruption. propel Pollyannish to every about the impact about like an seen industry like excited AI. also be technology definitely AI, every of has want it's we've I this, speed to the industry. in prospects company world. new And of so And and to with are any We And the potential

I a it's opportunity an AI travel be clearly we us and way think but see in both for for to early, tailwind innovate. that for the we

for reasons. who that best those potential innovate have the serve believe have that those to of think We companies and AI to opportunities to going about for And many the curious for well up that most one we're match that grow. customers travel we assets clearly companies are are

driving been heart We've and the team, across putting investments top our partnerships in product making with yes, the in the aligning AI productivity exploring all of areas. data, industry. players our innovation at our And the

advantages. We have

brand. hugely have a trusted and well-recognized We

new of the create database And only first-party opportunities. a our have highest-quality we, content leverage strong use. We will asset data to we really own have course, and to that proprietary POI

And so and demand and go at incremental our look leverage because suppliers. of our search ecosystem we're also partnerships the sources think going traffic to AI-first platforms position do in to a have we we strong with a after we're to customers, and our lot on going own relationships with trust

with we're to get incremental. through all come our trusted you those AI-first when experience. you to the to really assets users which about, and partnership at about asked connecting that an access think forging AI-powered look guidance channel that it's We're of leverage Now to funnel. We the Perplexity, think this

and seeing traffic typical traffic early, that And I get seeing is this free we're this. that we have high say, intent but higher it's -- is to we're and like convert that than they

And We're to restaurants tap going a on. brand are and we we revenue hotels. We're putting so share, experiences time. we to over that place both well build as add And starting that think in deal traffic increase deal, with that can as awareness.

component We're But there's what? yes, for not And know it. short-term to licensing dollars. you licensing looking a

what ecosystem, are are long-term, is durable looking for our and a that creating about. We this partnerships in position

right. operator here. think because collaborating positioned We're we emerges. think OpenAI collaborating with You're a And be opportunity we there's agentic allows us as AI favorably best huge to

adapt We to are about that proprietary really our learn excited we're and we in the going everything to participate that. table, do bring to and and supply

more the have a positioning, we we our the future. that deals innovation, can announce in on traffic, yes, will to focus at holistic that of partnerships long-term we'll monetization And companies not-so-distant and with choose, where product look we forge exchange

Operator

JPMorgan. come is And Doug from with our next going question the Anmuth of line to

Dae Lee

Dae is This have for I Doug. Great. X.

The year. about you the one, past? this offering in what offering? that's membership the later launching than that in talked the you membership had expect you about formally first talk include how Plus Could to different you Tripadvisor And

XXXX, then assumption in to happen talk this needs new monetization that a secondly, could in XXXX for to And return you growth And model? positive about Tripadvisor to does returning what include Brand to growth happen? on

Matthew Goldberg

be offer be in, at talking format, more more who much that is those all are which giving evolving that more it's environment. all is we cross-category talked a categories. them our in value how ways to It very our to we've here with logged-in come of our in across them about products our and membership. about logged-in us. It's engage a about the value we're So Tripadvisor, we of bit a And what reasons let's about and way clear, is together content free membership out will are giving to our bringing get And booking platform serve about of rewarded.

about adding going the making good, of year growth, marketing we and over drive the already continue aware seen And that program. that membership and we've of feel strong growth to obviously really to last membership like our is people benefits in

Mike, question? want do to hit second you the

Mike Noonan

Yes.

see do It's Tripadvisor. a XXXX at what say, Brand key growth the margin So things. if I drivers we heard you as Dae, kind like of for of couple EBITDA really

them of some are investments. to And related

] as [ through are investment them of move Some we [indiscernible].

[ part hotel a partners So our product, work continue stabilizing great apps obviously to that that piece. think one I with of we on And there. is is create offering work And ]. to

our commerce hotel is capabilities, is scale, Second getting and capabilities. our that about Matt hotel to beginning what talked booking

scale modest will in margin. be some that getting So contributing to

time to optimize growth of platform funnel. And and a It's a lot our getting we very remarks, It's prepared experiences we been lot spending Tripadvisor. spending very, at that have point been Secondly, back spent, said Viator. of massive, optimizing on a we've It's important of as a sale, of for than that a we how there. sort in us. massive surface. traffic time global, different very Brand It's

comp year year a of looking tough EBITDA kind the year. in growth. we story. first next experiences to -- past a -- we're for in that the in half of we'll get then in looking have half the that We a of this XXXX, but And solid to the contributor that year, be to to be second

part lot all the X terms was investments talking it's in investments investments of the the half, as through the Third, of some been things really about that data, experiences. we've of ongoing are had that have through we getting a and really that Matt or in of terms fund last is obviously, and -- membership, app, years the of these AI, fourth in

So getting that. to

have lot saying comes been the the legacy quarters And last just really We've of on a pretty that offerings. years. over focused then consistently many last few we lastly, these

create These We rentals. We have insignificant it's business our rentals. legacy a not EBITDA of the changing business car had, vacation model in of deprioritized the some just whether about talked -- lot headwinds. we've

lapping getting XXXX. in those will we past and so And be

about how progression that I what this year. we in for we're XXXX. So it are think excited sets about us doing up excited We're

Operator

Mizuho And the question from come USA. of Lee is Securities with James our to next going line

James Lee

I Meta It's is on challenges view thinking Hotel about more search. the a topic debated years. big couple First picture, highly given the was one Matt, the last clearly could you all of maybe over long-term then talk seen

you do think for the how about transformation So you would talk can Tripadvisor? further navigate? And industry the maybe needed

is second And about Viator. question

to elaborate, about credit talking previously to You companies expand of beyond example, expand card kind specifically. sense [indiscernible]? OTA, guys strategy maybe to Does wanting make your it for BXB

Matthew Goldberg

hotel long And we delivering the that and as they're to booking that think a James, shoppers obviously look, to investment the are across partners to long continues giving good believe a and we've product. had said to in we've I relevant But work that past revenue we've traffic hotel we good be app. in in line. the them both And of going Meta do term, come. lot variability that done from to our continue opportunity, stabilize a high-quality as in Meta

Because deliver to figuring higher-quality Why? how to partners, more work they pay willing and product out driven done leads price we've for we're are that. that has Meta, our to In advantage.

and booking user. And and unit that so together, in you drive work revenue average per we also I think and which can will continue us that really Meta to the economics think see lean ways into app good identify

in think it's also a long So we're our We said is it. player. driver. we've growth enthusiastic about the not term, it future But

we So from the that, accelerate that scale we economics, are driving profile. together, our Tripadvisor impact improvements shoppers, engagement as our we stabilize as as unit think and growth the at that's we experiences, the product hotel of revenue

anything kind or to trying are very is subscription like not working. consumer-paid some -- we to are This thoughtful a of integrated We a that. that return is strategy paid seeing

enthusiastic about. we're And so

a And And it's think really as enhance haven't we it's that it the BXB prepared Viator, our grew think business on unique in we advantages. it bringing BXB conversation quickly. that have relationships, we it's can right, growing. think additive, segment of We can a value profitable. partners. it's supply table, to we else interesting partners. to continue to the of world with add rate at part in remarks, that our very is And think whole. we have incremental, is the out twice in And we grow the you're it's tremendous one said current think we a the would past, my advantage, I which we think be people from our but of to opportunity. broken Now continue I anybody give key because new we our us, to offer a this And different we think We accelerate,

categories, have for to necessarily thanks that to I be are not absolutely else. There there anybody reach go grow right. many, yes, many are that I And would geographies, and we and tend new signal on retain and don't categories to mentioning going would categories to out some to many to that them own. be put we're them. our hard the and industries acquire many and because customers of want you're of to, to how focus publicly and that's But

we're about our BXB excited So business. very third-party

Operator

the to hand for Goldberg over like to would I Matt remarks. And conference closing you. back Thank

Matthew Goldberg

us for morning's Thank call. all joining you on this

Tripadvisor flexibility strategic across an renewed the we As at seeing the about. up part I next everyone. to many think with We and excited do the about growth and ways, look inflection you you business of this every couldn't can I next Thanks, us. Group represents phase it's at more more work see, we're forward excited Group. be point that day. update. In what in know really plans every XXXX all we're for proud optimistic of setting of the momentum and We're I about

Operator

today's conference. you concludes participating. This Thank for

now may disconnect. You

Tripadvisor (TRIP) 20 Feb 252024 Q4 Earnings call transcript