Tripadvisor (TRIP) 8 Nov 222022 Q3 Earnings call transcript

Good morning and thank you for standing by. Welcome to the Tripadvisor Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to White. conference like speaker to now Angela today, would hand over the your I ahead. go Please

Thanks, Corey. everyone, financial Good morning, results quarter Tripadvisor's call. XXXX third and welcome to

find website. Teunissen, Goldberg, Joining call. you'll earnings are incoming release financial website, filed to our market metrics. CFO, In our as XXXX. release, available non-GAAP information, who non-GAAP the reconciliations President measures measures certain measures close, outgoing XX, of financial Relations as financial CFO; shareholder October the and our night, and call of well joined me financial made which discussed us GAAP as and discussed Matt Investor reconciliations Investor letter our this also you'll CEO; supplemental other most Last today Also effective comparable we find Noonan, on Mike and Relations Ernst includes this on on on after distributed

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

call. Thank you, morning Angela, joining good everyone and to the

week know call. our mid-October, him by call announced excited and already to to have him Noonan, experience. and track running. strong exciting and and record want Ernst so Ernst to industry he'll join team, Mike excited I of and first outgoing on as handover listeners about and have as as Many to Tripadvisor. his welcoming have this As a and earnings seamless transition, also him CFO; call I Tripadvisor, Mike of why leadership grateful understand are are In start our of on he hit we Ernst Mike role We're his today friend. ground steady leadership recognize for with his to we doubt commitment I'm member an and capital, a the Mike we a deep is started to model over both Angela who for next Teunissen, CFO pleased to This and colleague, with thank no given want thinks today his me the just mentioned, ago. time trusted to the his chapter steward for Mike. a

cover the quarter. to letter. on the that first this We was in basis quarter a quarter. accelerating revenue the Now and shareholder last We quarter surpassed It's our worth publish to expectations and XXXX also of last a QX but to bigger record shared performance segment before items. business $XXX notable in Tripadvisor record, night, to on a some few We not but to the much highlights results a provided by QX. revenue of picture last a take was exceeded were XXX%, consolidated from night's like a outlay thorough at we release I'd million, highest XX% at of levels delivered also results that quarterly nonetheless. turning moment pleased mentioning Each

experiences. and quality, XXX% higher improved about lean a excited shift programs from rates and the growth rates. with to effectively are repeat and we're bear efforts seeing executing represents XXXX at growth led for We're year-over-year. to memorable opportunity driving the new rates, XXX% market higher recovery cost customers is structure, marketing suppliers record mobile, to fruit. the and Investments take travelers accelerating their in The product team in This XXX% last connect revenue global and growing large quarter. Viator First, of way levels,

numbers business As particularly and headwinds. we strong are of generate marketing global we're to seeing desired customers. continue saw QX the XXX% that the mark. revenue results. see bookings downloads the app economics estimated negative At TheFork, our a app the lifetime over have and We're with repeat building investments of starting we in an currency due $X with impact products, to X% a We and value billion XXXX basis compare to better Targeted in on bookings, result, showing, levels, year-to-date an which our through favorably recover with believe gross and strong crossed unique record visitors customers loyalty from to and other to mobile of aggregate increasing direct players. technology

segment, Tripadvisor quarter up recovery also a XXXX, quarter. to core from last XX% XX% sequential our in in of executed with strong Finally, we improvement

for to hotels XXXX that XX% XX% demand business or travel teams effectively. strong results. to from a in opportunity standout, we as we quarter more a thank and board, sign serve for our advertising respectively. by past. performance, a XXX% hotel are we reinforce. to value last relationships hotel teams than hotel partners, customers that even in continued of which our marketing of in revenue levels, build travelers called and levels, driven and in notable in maintaining the lean XXXX branded our more levels partners strong to Experiences the was Our XXXX recovery hotel healthy driving as shifts delivering which really stream we hotels. XX% XXX% quarter for at is it last and largely offerings, We Tripadvisor believe we And In of mirrored have trends BXB reached our continue Dining to remains continue with we our XX% up had of market, Across quarter, focus and and the the and to recovering this will recovered The continue clear meta and auction from our media I the for up looking want

a I my reasons key thoughts Tripadvisor, future. that set I colleagues diverse I few that content first segments, the far-reaching experiences to set share assets A XXX call across my across sharing. brand days group I'd the meaningful a steeped the culture some a in to making of and to the some on I were opportunity joined take company's in on large the trust, On enduring including our wealth path built role. our leverage Next, would a of like people contributions, connecting of for global assets audience and mentioned mentioned August, the believe data to first in purpose worth

we can that many discuss of these opportunities had with I've offices, reimagine observations on a travel and belief and travel in abundantly critical attractive customers and this Now with call, second in an foundation environment. talk other our paths partners. which chance to role the leaders teams, with here dynamic our our fast-moving thought is is numerous to for from in travel that future. my my to confirm What I clear strong provide ecosystem a compare industry initial growth play assets the to

believe As increasingly material a the their starting with most that we reconnect ways world, above resources prioritize of consumption. the people to are meaningful precious making seeking as and experiences point, they time

Tripadvisor, represents the travel of to most increasingly a the Tripadvisor family source worth the experiences. during the perception guidance this across paramount We and Europe's Viator, travel marketplace to cruise is isolation TheFork, largest years platform; the experiences; disconnected dining for world. connect brand and in can deliver of leading Critic, the in-destination leading reservation experiences is world's and brands Group goal pandemic mission world's the largest with shared a sharing, of which divided for to online platform; Our trusted people bookable and Cruise after world. be community

is most relationship enhance. will of we to precious and opportunity on Our trust, continue of one one build a assets that reinforce and to our

consumer from always we effectively the expect I or as that physical have goods positioned secular fuel shift executed the on recognize We all to ambition to future to our which demand capabilities. and of our we most are possible also not leisure in well made capture the of assets as travel. experiences,

bounced value off me our our and opportunities has strategic with clear of around focus my much I leads months, the starting time diners brand. partners. from company an spent the the to travelers, to core even back experience-seekers, and Tripadvisor are of business the a there last well kicking to work few the more where This for set pandemic, reinforce priorities, area relevance of create While in align

is clear and to for differentiate structured say travel, While to we the are specifics, energized matter can what evolve we process it's this that the reimagine set the talented further is mission ourselves taking a too take experience the so strategy, view business, our My and serve and consumer on how with everything to we're our experience-seekers experts, can path. be team path and And make a on a subject the compelling our we who fact-based, diners and future we've points where travelers, means center come. our the I opportunity. embarked we in at do. traveler can is time evaluate to for that address will play continue sure pain to of early share employees, role that we we to Together decades can data-driven unique by

lean reinforce drive to which growth. we're our proposition sustainable for and into known, strengths will ways identify the new We value

for and seek As engaging with better we create the to enduring data needs understand to will and their do and our highly we our leverage consumer travelers, build experience partners. relationships so, address a

Ernst, with our and be to that on much continuing Mike setting the I results to to over sharing I’m how how you the in future. and call on looking the the reiterate quarter's want I here, more turn I excited pleased forward am to with and Before work priorities how I'm

close high this questions and a and year the heard forward about the costs globe interest recessionary to look will across pressures As have goods impact rising out spending, of we've about we rates, the on the services, all travel. consumer XXXX, and lot

and However, consumer consumer as a preferences. what when seek may to things planning majority also a the acknowledge us is or point be the the becoming situations year. the Travel and to too plan indicators of book. we vantage they And about research we more robust, even as shift, affordability or land resilience it's where travel suggests data have of macro same external a months, would many to observed and as that early we address us cost that or also We've will over decide are way spend near next brands. portfolio travelers to adjust. remains important Regardless are willing to our diligent medium-term of that the create for opportunity our trip other trip, one internal that from our to and consumers point, conditions, and of more more coming This conviction to tell may more. financial likely

doing we're to travel as opportunity. that vital continues long-term positioning source a and And a our Tripadvisor enduring years trusted Group I'm ensure an play in work come. Our role is industry at excited to for for to experiences the

a to I'd over Mike? turn the Now like to call few Mike say words. to

this long-term and strategic that clear and perspective Ernst at and Matt, the also very of here work travel been and it's will strategic good our is evolve been morning, to continues everyone. I looking background solidify about But and I'm It's to early forward me, this for Tripadvisor advantage number in at working join in pleased period establish set be be It's near team providing. a long a take of the a company fresh and Tripadvisor. to priorities good excited planning. priorities. providing the joining call. to I've juncture, for I'm and very I'm respected leveraging to I've Matt the certainly particularly transition and my days years, we've I'm followed. the with and innovation opportunity doing experience. Thanks, to experiences of innovate, part and and to forward talked looking known

strategic where planning at to in our cycle, premature thoughts provide our importantly, on Regarding and are in outlook XXXX, for this given time we it's setting our XXXX. goals,

a for of have However, as areas lean opportunity this and opportunity, market. to well large light we assess believe we look to investment, ways we will operating efficiencies. experiences to capital opportunities growing drive continue to In an into reallocate of and as travel

do ROI-driven disciplined looking a coming with continue with catching to weeks. the so I'm to forward up everyone will over We approach.

Now results. to Ernst to cover the

everyone. last currency and while increase a or about million to morning, Free exceeded quarter, versus headwind cash Adjusted million, XX% typical $XXX great good XXXX. also XXXX, and expectations growth of of $XXX at over EBITDA and cash was reflecting was XXX% Thanks, a $XX revenue. $X.X and equivalents. billion of expectations cash we million estimated seasonality flow X% in an which and exceeding had reaching revenue, year was XX%, Mike, reaching We had

above in QX that comparison. last is We've for Operationally, letter details in QX QX the In deliver We come as as massive since and EBITDA of pleased note and segment core highlight We levels resulting costs that puts in nothing the addition, to following. pandemic for our I exceeded revenue XXXX changed Tripadvisor fixed margins in Viator Tripadvisor. EBITDA pre-pandemic see profitable at and levels. first both those year-on-year, of to compared segment’s some down, with published the has its to well. growth. And some outlook we have on percentage provided that to night the from our adjusted at and shareholder XXXX, material also started discretionary achieved in with revenue to the were Viator that quarter the XXXX year-to-date XXXX. the I a core wanted takes

from are investment which We in in QX. is the operational material The in change revenue September. continue we the Viator, only trends increased seeing QX started same

this XXXX take regarding for many performance some EBITDA makes cost QX had December comparisons margin XXXX, percentage compare periods. have the of point, For in the to of XXXX not that of we like profile ago prior increases growth challenging step-down as than In QX July in year. November from three QX the puts in comparison quarter-to-quarter understand of larger spending we it September is we takes in and reasons core, QX core, versus and XXXX. if obviously and in material you out October and a QX the Tripadvisor are one-offs to a years core as There the in and

approximately to QX in QX excited are be keeping breakeven. investing and be while We Viator in EBITDA combined QX to

of economics not strong underlying but line the moved investing year, favorable. customer because very have are performance also We top only this the

years. for been I remarks, an an believe pleasure brand, and to it's over close will progress. Before baton take company amazing you prepared with this its begin special a the seven all With I turn to ends watch feel that, My to out I the very and and to working Tripadvisor on say passing over the me, good is opportunity continue and year-end, a the the I Q&A. want that the to of call I’ll transition place last hold I Mike. will at always amazing operator

Clarke first C. [Operator is time, the Sanford line comes we’ll Bernstein. question question-and-answer Richard, you much. very this Thank At open. conduct your session. Instructions] Our Richard from at

Thanks for questions. need we I with QX taking my guess to start the XX% EBITDA guidance.

QX slice large in unpick those Or that we of QX think XXXX your next going obviously, what lower from QX is you’re carry XXXX, the into large QX seasonal XXXX? we to saying, that ahead thinking Should So XX% just a margin as seasonal just And a you’re then Maybe into to a of it to than And was saying that what that in ex the be XXXX? lower us year? does margin is. chunk what effect. effect XXXX. QX just XX% of drop-off can was reverse XXXX effects remind seasonal is to in you kind

and you, Yes, puts clarify we Thank it the will to and for Richard. your a satisfaction. And question. takes, few thanks hopefully,

to in QX. there So in the fixed comment because And revenue QX. EBITDA is is seasonal always margin. QX is there from decline cost that from first seasonal And in coverage a is QX QX is to decline therefore, unfavorable a

happening. So that’s the general trend that’s always

waiting is course, was – in – where we’re much if loss to in of Additional than incurring larger it our that our results a for Viator, – loss compare our to in projected QX to it consolidated you consolidated XXXX, XXXX. for the is, addition

there shift as overall mix a have well. you So

in very step small a in If number XX%, to From fumbling we step that go from compare core were a to for apologize. the XX%, was that from limited seasonal XXXX, QX in a and XX was XXXX, Core. – in had sorry. sorry, costs and that QX we Tripadvisor fixed – margin bit. From And different. it XXXX, had, to of in the very XX% back you a a XX%, step-down EBITDA from XX% back I from marginal XX% reason little I –

down QX was of that from unique other So accrual And we step stepped costs was XXXX. from to QX. we down in QX had a of reversal meaningfully TV one a did QX. to QX $XX advertising million the One of bonus a about that

investment if And projecting been. That so in you things that And QX but a made less much the those seasonal brand. Viator major step and the for decline have that all take we’re pronounced QX additional the together, impact. it would than between we’re is the typically typical down making was

just we from going that what we think the then run should into you’re margins effects XXXX be is into to the as And how to effects about Okay. giving? those headwind XXXX

– so to move and profile into and we the was the hopefully, if have business to the you XXXX, many just puts because trends. in I as Well, next takes normalized so comparison There be our we’ll will are more different. compare some year, rearview of XXXX mirror

there business, revenue we difference between had which had different deconsolidated. We in our our we XXXX businesses other consolidating. segments. had is We few which was different discontinue. lines no that a lines, we China very and mix was had We longer The SmarterTravel are business,

XXXX. going will comparison have And so to year, the you’ve a comparison always that next to the trends be in Hopefully, normalized very more into to XXXX is difficult. we seen

Ernst. Thanks, Okay.

And that a differential to this would well. Viator you’ve investment and be just this I as got that’s I that could unique think add quarter,

Okay.

a you. investment. you. Thank That’s Okay. Got one-quarter

it extended into and in QX QX. started Well,

investment. a there’s XXXX So QX, QX

Right.

Okay. Thank you.

Naved line Naved, from at comes [Operator your Instructions] Truist next open. Thank is question Khan you. Our Securities.

calls, welcome. we’ll thank Yes. these you. and on Mike, miss Ernst, Hi, you

me spoke Can you’re you that bit there Or more one over And this on you’re campaign expecting? little on more talk and maybe payback you And about would sensitivity? of be just you campaign to size what the just what maybe what searches? price ad of more questions. seeing little important travelers. people more you would kind Can Maybe you. branded doing becoming then, the seeing are more just out some maybe the elaborate Matt, a So period? the a be couple for Viator. A for doing you relative about seeing first color Thank of affordability and Are helpful. you’re cost time there?

brand a doing we’ve now. improvements We’ve been say of improvements of to traveler, in of items why a sort this we want expect take But rates, said just people QX Thanks, roughly be seen between it. Viator, of as to this year. the have been book first of as quarter on seen which observing would sense QX. that, but in at spectacular already in the I’ll has doing about QX, We Naved. this for for the investment the Viator things the a underneath, retention in well, in the Obviously, QX, we this for take-up you economics and you bit I path rate. plus in improvements have few and which per investment number gives conversion we’re We’ve magnitude. underlying level. little Viator lower Viator why breakeven a trip. seen part rate. a Without per on QX we trips on the breakeven of we’re We’ve EBITDA been loss dimensionalizes started

an estimate we value that of we lifetime to so increasing of have. of things have these that an all improvement and And cohorts multiply

been so underneath. encouraging And that’s very

Viator. populus used those loyalty that repeat somewhat We among broader our still and on the from have have But is nice us awareness users limited.

a measuring reach investments sort ROI that of broader the more of thoughtful improvements are we’ve so across the and audience. these advantage a funnel, take bit believe sort targeted little by And that that of and can along we way, underlying and we taken

category, We’re continue we’re invest in global win in we be going to and in that. playing to the to are this with to We Viator. leader position exciting think excellent

at excited little some and podcasts, you investments think Instagram, Viator, that us large for like a we may us, going to It’s really carefully we about that. year. what about monitor see – we’re relatively are channels next more before impact for So is modest bit Facebook, a than and seen relatively of we the Spotify, on have Pinterest, still as the plans

before And And tremendous this is excited get I of ways value. We are about I your to it’s just there asset. we has lots the of well. Viator, consumer, leadership executing accelerate. say Yes. market in. think continue about team is leaning think into category we to so question really Naved, And – would the poised The are

something really and lot about know that be as just we’re I about we’ll it’s go excited talking forward. a So we

asked But in consumer, are for very restaurants. the consumer want about thinking closely. And following On Board, are we’re about they travel people spending, seeing. and that, Definitely, how you what searches our to across the while pressures, searches we yes, the data their inflationary continue hotels, plans. we’re up experiences adjust seeing they’re might

living, past. And had more shorter are the rising in of be planned to with going traveling many maybe length than so cost at they

they at Some vacations And people were real making about are having home. decision, when think international, go also moment that choice. make through make there’s our period they to sort the about I real is to you are might they’re domestic. That think them course, advantage to plays going a of what comparing then guide closer If as as you right consumer being happen, about going think an to and it they much of to about pricing, thinking want thinking it about that experiences, maybe time that that ability thoughtful. that strength. there take from We think who of – think a do seeing large helping going but majority, with they’ll still they’re they want on And to be the what we trip is trip. are to

and but adjustments situations. very behavior on some is of personal consumer by the based course, large, So promising, financial

you, you, Ernst. Thank Thank Matt.

line is Next Instructions] [Operator you. open. is UBS. Thank Lloyd, right. Lloyd All up Walmsley your from

Thanks.

broadly portion correct do there TV maybe I think been we the so, I’m think wrong, you’ve last the as broadening a a but it back don’t since generally into things me getting broadly over You you about And contemplate get I think if – or guys a for been been that has you’ve but year? year I more about – we – ad still mix years, talked think guys here, TV at Tripadvisor. any very years brand next to in do are are next on? you we the about It’s the the then, overhauls strategically, should year little marketing short advertising? about – few guess, don’t strategically channels. that pretty it’s XX been Matt, of How how light only think bit next about Thanks. as anything big thinking any you you can help shed been

Lloyd. been both and we It’s the am for work. energizing Appreciate question. engaged. very excited team that so Thanks, the about me have I strategy the

and rallying I do opportunity. deliberately. this real really is it right think the upside that We’re we And around if it’s we feel there get something all

time that appreciate my me you’ve given really So through the to I process. get given tenure

the like of work, in past. Viator sure clear and that have work way now about we is TheFork ensure through We prioritize. to compelling value goal that as and the strategy we really for part went sustainable areas We’re make a portfolio the that the conviction proposition. to group through are a with building of and create course, The we for and we

And lot think to about thinking a do a And so that’s serve guidance as Tripadvisor we platform. can we modern there’s far travelers focus is how be why really more our I and contemporary. core current on

of connecting on And other. And brand. going And and direct lot advantages, we traffic asset. for content lean really and will engagement a unique got focus and We’ve We’ve create course, our with utilize that of into start that to have with us higher got each our need we’re data We product to we’ve our community trusted got a drive to monetization. really right? of a multiple to values opportunities levels to a we heritage. know ultimately

reimagining of while growth There mobile, headwinds. we to There We things focus. we the continuing businesses like about as has been balance assets are and we improve number geographic going And think obviously, more much there can product invest so with we’re the really we we our those where BXB mix. it think We think recognize to in in immersive core into international harder. differences And travelers can that as can see more where are long how a to traffic take opportunities shift they we a – them and marketing. and their our be at We thoughtful want to about want the focus way lifetime to our consumer that the value with media then guide far moment we them. decisions. and content on be lean make drive

is business to for you of to that pricing compare not come something is but It’s there I ultimately tell to think only not core showing start consumers, wouldn’t hotel that going It build I So to in think bounced back. to want only find opportunity. meta a performing. we’re has relevance lot overhaul today. We who and also experience. that our certainly,

for that and mix. valuable, us value to as their part continue we tremendous partners is our prioritize marketing seeing we’re to provides our it will be traffic that’s think think also what partners, high-intent continues of We and

excited about that, we very we’re leaning how about So it, to geographic and into reinforcing opportunities. can thinking both adjust mobile

the degree, do of in really I whether that we’ve marketing, what help marketing, to us learned is some thinking marketing, it performance channels with TheFork, Viator about think that other On question promotional or that. we be when marketing the and thoughtful that our do

results expected as trying and that’s what’s delivering And actually in We look and the result channels. to we we’ll disciplined at something can way as think consider. As about that reach, those watch think all long a what’s are we we highly that we I go. we’re the consider who purpose,

do. a I for work to the it disciplined take We’re to be get and you can about we wanted Mike that very approach, we’re to think the benefit talked expect to I product talk and we’re us continue as going about to going but really – to our have this, drive offering planning

Ernst, luck, Board. congrats, and good And Thanks. you to on Okay. have Mike,

Thanks, Lloyd.

up, open. & line Thank Company. you. Jed your Jed, we Instructions] have [Operator Oppenheimer from is Kelly Next

Great. talk questions, taking investing One, done maps? then good Viator to aboard. welcome you has question, question. can Thanks some of competition their about the that Mike, recently Ernst, Two you. Hey, for down? any potentially just of about in if second sort my I with And change the how public Thank unlocking once luck, strategic thinking and settled you’re may. Google and value my market Viator with

exciting there trying first, and is and is the to the course. a Matt business, take are active. Yes, piece will I’ll others get take be an of area, will of Google second. multiple the active; This Experiences players

have market. off-line. competition. had. A a It’s growth XX% lot be secular of We It’s to large still

We for with growing breadth aggregate to and globally. quickly suppliers is we aggregated, we’ve we’re aggregating time, which with have which supply over will are which is and be – our that cementing others copy. hard difficult been relationships of enormous playing And to

do so competition, chances really be is to and attractive, we that we our And – continue although a is well. there there market in like should

has said to and businesses Google I’ve career to done Matt. question think, I Thanks, It’s in reasonably your last a – what I worked want spent add that such as have Yes. out that a way just contend in with it I Jed. And time, to about well. Google.

just able and a that And us about that can If to think I particular ranked we along in step with track thinking easy. have don’t brand We in when We when the we we’re going have make, know are Booking that’s a be about content think search, they’re our Google, community, longitudinal we want the relationship that trust. important going ways to a a Google. content lot I the we’re of that a curating You going when we that. that above Google, to think to ecosystem, journey an can that moment think we our will respect every travelers our they’re that and and to suggest lot ready and value. to the of know we terms on at be but make different our the decision to all about I consumers the Airbnb, we’re think, with for and to do community do focus different trust than more what serve it’s Facebook, not point know have from that player security at do a that Google. to view that way they’re they about guide has I differentiate. leverage of we really have how you’re thinking

of maximizing at the of for part work And why of that to, that doing I question focus think it means we Viator, think see potential create continue that’s Viator. value And also have want have how recognition in you we’re value option about value value and to of whole suppliers. we for there to lifetime a invest more and value and the and that’s On the with every shared the add value we’re lot for and we group, business. the to going to to about of drive of inclusive course, strategic is growth a

and so it to just the today, driving a make in we’re on opportunity. challenging the And while view of focus point have to market lean going that on markets

Great. Thank you.

you next from Thank comes very James, [Operator open. Instructions] Our Mizuho. is Lee question your line of much. James

Can going does taking of And guys for Great. how that with And question. How my Thanks you second your maybe structure. fit question, should maybe into Thanks. economy, navigate future your this TripPLUS? uncertain about flexible think can in shopping we the comment cost how forward? about you strategy environment? also

question. the Appreciate James. you, Thank

together the one strategy I it’s with We of exploring work. our was of services. really call as can we opportunity And deeply want the we into. said we that we an course, do that and dive last think consumer-facing part think I interesting that certainly an better that area to So direct-to-consumer are in thought products

place ways rather, proposition, tiered. ways. entire just you membership We we the when the further. need We if discounting, and direct-to-consumer that And something. with a to haven’t you with the yet find be it’s recognize way can’t about relationship that to where reinforces about to to kind think to reward that how monetize easy a of in brand a and it tangible just value. have, can users think make to a you remember, compelling fit loyalty is Plus to about learn benefits address way be engage just clearly consumer we Plus. about very need broader needs needs have we finalized we about value we we to we more opportunity. do for which a have, the It we thinking be TripAdvisor think proposition. for to trust paying necessarily is to membership and natural starting different separate sure that opportunity it the come. think that develop point And can into clear the could travel But TripAdvisor it membership, with that, that but in engage. ought about to There I multiple not And drive consumers with need be a Certainly, that communicate a offering would

the as share So the work are we detail. strategic part reviewing doing, that strategy when more we’re our work going and discuss we’re we and of outlined, to more in rethinking, I’ve

has back, us with like In had brands would operating I taken help out not and scenario which forward. scale marketing to shifted have XXXX, allowed The – investments terms cost, XXXX, more We’ve variable to we quarter. cost the a in pandemic. and cost enhanced cost would less our structure lot. structure, in some less cost during last compared the we’ve make which any in even with added these we in going we’re be profitable And Viator, our all still point that currently fixed cost to fixed but the fixed of than

see organize forward. to course. how we Would good create been an can have there? always that’s we Of So and levers. differently There’s opportunity levers going

And so that, there’s in flexibility too.

you. Thank Great.

Lu [Operator Thank from Next line you very is up Mario much. Instructions] Barclays. Mario, is open. your

taking mostly still the tough Thanks XQ early, like guide Core. in then It questions. trends should TV high in of in XXXX. segment XXXX, in Great. It XXXX. stepped this terms in ads all a versus couple rebound we on the XQ expect looks down equal? timing-related else with Tripadvisor comps for seems the it’s but to XQ have I I know

is XXXX. that You’re compared comp some QX right point there to to issues out

step I weakness meta higher. the our within of That at really November, the December, though in but saw in and been that, quarter smooth average, October, And one-off that a and XXXX, XXXX very September, was there well in XXXX XXX% and in August. particularly And core in September. performance QX in if we July business strong that, a then to strength not was back substantially for August XXXX was business, even than our actually, We in in to summer, if items December. in in path the in you we on took August U.S. QX, those, is terms September. to for that versus was from of had So a QX has October, are to the point you that one-off in QX September October to similar. recovery. for We see September step-down July quite were, consistent, stronger XXXX were we isolate August. September November, items normalize meta very very did can these

suggests are the we continued opportunity the relevance at way eyes effectiveness landscape putting reinforces think increasing that. but just I just meta. the has planning And with start and Yes. there’s Steady user understanding for their of way think of higher experience that recognize look There line far I particular I in we them can the opportunities in to the quarter looking in need, whether we the on a that fresh that meet an think changed, reinforce course, add top product. that creating just that funnel. would me core it’s that product our just And about for thus and they’re every recovery me, in relevance growth on XXXX that, TripAdvisor the or to consumers geographically to mobile. an accommodation journeys just better targeting to shopping develop of

good So a again, goes that, to foundation. of to the enduring really point and me

Great. Thank you both.

of positioning prioritizing I how app. it programs, direct follow-up here? terms The meta in OTAs their translate a the does into like positioning traffic guess, puts more and mobile in within that generally consider and Just travel Trip’s Any ramping loyalty sounds long-term? takes into they’re Trip’s Thanks. are their ecosystem. up to the

Yes.

continued high we So there’s the nature know and partners of we in fits our being and the we’re one product a seeing really the demand that intent continue what this that’s of believe in And the And strengths our of with And guidance trusted well channels find product. in for course, the value as to that offering traffic. the of dynamic. of because fact, reviews.

and no direct a identify have And so product the those to think And continue part don’t always opportunity do will continue to ways best we’ll on to and that’s new, their to work to to deliver that traffic, service doubt, mix. the be means the we to more that to of continue nothing wanted partners. focus OTAs that. they’ll and I lose

you. Thank Great.

you. have we Instructions] up, Fitzgerald Thank WFS. with Next Brian [Operator

wanted I trends apart seeing to you’re Thanks, I’m Mike, And week, respect guys. looking to starting travel for and and parse Congrats, pricing travelers, what up the you small question that, it’s welcome. seeing, you look two any of trying seeing three like well? when maybe Fargo. luck; to Are to travel. medium best if with From likely at Wells a actually. you’re you’re middle to is of Ernst as follow Naved’s on pick the that you’re search nights anything business for business if in would up elastic, indicate business

As mix, to our have not in business Undoubtedly, travelers, after. more consumer the use but we signal tend you’re than brand, we business business small travelers to case. a skew use the rather that the case that

think of future. in oriented way identify more it segmentation value ways far both our a business ways to who’s and really data, portion I stands previously liberating our But certainly, think site to the than think in commercial maybe indicator know I that to opportunities think of what don’t understand create will as of is across now some us, travel and going the for we’ll direct that start a length shorter mean do about I we we coming at potential travelers business. that the they know to as in Yes. planned. I to that’s that are start

Got it. and Thanks, Matt. Ernst thanks,

John Thank open. Colantuoni next question line from is from Instructions] is you. Jefferies. [Operator John, your Our coming

give you maybe actual Chris geographies? the into my little taking us for consumer third you you. throughout Thank any here? shorter for This seeing to on a more Can quarter is that of John. a seeing and or any trade-down of kind signs any bit the Hi. Are the fourth different duration is color And yet? trends key check Thanks in just question. behavior you’re that across trip

No, yes. I mean we’ve the on shared a bit color of consumer.

confidence lot have We in consumer. the of a

We different think has Europe has been anything – But beyond the No referenced that, the I change. of We consumer strong. than signs been U.S. haven’t we down. seen trading

Okay. Thank so you much.

from comes Ron Josey is of question open. line your Next Instructions] [Operator Citi. Ron,

letter, wondering Matt, Great. if I versus Thanks the about dining and again. more think user an talked at resiliency/consumer for I improving then experiences a macro you you welcome in it’s little shift we taking early. as and towards mix I’m in Ernst, Viator pressures? bit progresses the Viator this still welcome, things think to in acceleration travel about about maybe do the wanted question you Viator. – macro and And specifically understood appetite see and and see Mike, I just continued congrats, if of overall. could ask the experiences

the how talk about user here is Thank terms more and Just can to services? bit in the of you. us products you a little evolving experience

it’s obviously, seen also part Yes, point the well. I’ll add execution, and to market. ask sale in just point is And believe take Viator, Matt also of Tripadvisor very, secular good very that as of growth, trend We’ve the our and the but strong but in first we Viator the sale, experiences.

the for the a for shift from I think for experience just to go economy, benefit a the that’s rather which than from and us. play. experiences, signs there’s go trend hotel things is people One flight, just two is in general a trends at wanting general or secular clear to

early in last secular online a we are about The still other OTAs. ways, what travel this I the supply. for this like And is XX% forefront within and before, at the were big off-line, really one bringing of on of industry the is and bit is online. sort aggregating some is trend hotels move said this playbook verticals to the

we’re then of And that. as mobile really going enablement And an so important is secular trend well. the after

that our we’re third really on a – half mobile. maybe was now in we’ve seen are And Viator As over bookings XXXX. in business, our

activities. Viator, so the the someone trip, past And means case up opened you predominant it we the has saw acceleration of and cases. a on tried – plan went that use see to in new use We mobile, saw they in before was

see increasingly we allowing is the even that Now trip. repeat within rates destination. happening mobile on for that and in us And

booked the before can someone they on in they’re maybe trip. So cross-sell trip, went the and while then we

we’ve about so thoughtful present being at and in honing point is development over on trip more And user do of think performant first subsequent to two traveler trips. and really a better app what spent the we we the years do making at the the or lot our making experience last on more app same third booking, attractive, app, the booking, time, the booking how the what the second more a

conversion, development of focusing in of where in really that’s we’ve been in so that of that the citing terms of number was to improvement I And terms terms across led our the has and spectrum. trips

Yes. good a That was answer.

with some that of of value add offerings on around supplier doing work just they’re to that’s supplier on other engagement and consumer mean, delivering The rate. driving the and has through the also benefits Ernst But value the I with co-marketing is really team thinking thing both take the growing on supplier really on suppliers, and been I product focused would is the the trends think the side, about not described. and suppliers only side, I sharp these opportunities

relationship we a together can because There’s and continue data about brands. we’re really to Viator for we distinct what have them across really the vast Tripadvisor, Viator else between group for always and excited marketplace. an leverage of also thinking The is to they’re the we the accelerate. be will give to We something advantage data given about think across look – amount do. opportunities team differently very beneficial to the in the various that’s think And the that about would two can opportunity

I a lot of and opportunity that, one about for get come. here, we to there’s again, years think it’s so And excited

by. Stand

from open. next Research. your Mathivanan Wolfe comes at Our question Deepak is line Deepak,

the Thanks guys. for Hi, Great. question. taking

ask Matt, related maybe another wanted So picture prior kind of I big to the to question one.

younger all particularly TikTok for of increasingly Your Instagram at over nature recovering healthy Tripadvisor’s prop business that about consumer you depending and behavior enhancing you of among towards stuff. question traffic for then like all the this demographics, the and But services second to the that’s are is value consumer How shifting due and of long-term? behavior at potentially core and content travel that. and still the and And Ernst. look is of kind levels partly thinking if changing for level attractiveness research,

year Going back about But this core made things I a business on hotel very margin know you business, sort comment segment during we so there trends XXXX incremental Thank savings margins. should in this XXXX. beyond? in this of of cost mid-XXs in to sort lot are And certain pandemic. for your high you’re margin the think of of compared EBITDA kind much. obviously to carries near the high the and XXs XXXX. like one-time How you’ve

to again, to all coming experience of consumer chance it space media social lots the I’ve kinds And long, the to and and Yes. set. doing of and Thank for Deepak. immersive content search platforms different had of more so you a for the of way much out obviously the back course, question, shifts going

that inspiration of can I our a when But with And think that platforms our about and and both different really Instagram combining enhance what’s the formats – we TikTok the think that of how are learn areas to content other one the experience, there’s our we and in do role I world can pretty lean about balances platform think lot about content our the what off in on our content. platform. what guidance and is those way traveler, we platform bear also we trust sense. you that to think platforms, of they into that think And we travelers because and absolutely of about about best and we deliver when with that experiment can when the that also make experience platforms a some that can and So they’re asset. that can a we our go immersive think brings factor. powerful our and you a deliver the data improve about have They into

and Now some trust and that really your a friends but for something there’s think do on. your to think our I family, I may just of it factor be around, rely brand stands And we’re positioned that. is trust, uniquely can I that

part, look comparison higher Tripadvisor, our but the QX On together a seen to have we’ve we you And that in is we in been that QX similar lowered if to versus in streams cost seen of comes to an margin have as We’ve at we was EBITDA XXXX, QX, recovering, come margin the increase compared to way. had different but driver margin XXXX, fixed back. variable it are revenue substantially more XXXX. what the very core the the in slower costs that

QX, in as levels if look above, free at pay below. for meta instance, so channels, you meta But – for in we that were at and for And was business, XXXX that said we our channels, business. was our in

margin at contribution than BXC. been there’s display some core to media as hotel our Experiences streams if back in our to than as And of XXXX. well like business, lower business slower BXB as high-margin had recover within we streams, and so Tripadvisor revenue Tripadvisor or recover have And our business business revenue such slower they a then meta – than there’s higher Restaurant other Tripadvisor auction, you a look the our

a XXXX. But there QX shift cost to margin cost. fixed – been so was has And to from the variable in very achieved is we similar

that talked XXXX that’s Now XX% QX Tripadvisor there’s a in about, we QX to in the movement core. to but

our and are into operational just we BXB performance of would in want do what teams think that’s to can do things in improve some part And add, higher media. the past we differentiate of around to and our solution do I we work, of as driving we really But something ourselves that leaning sales self-inflicted our drive levels productivity. orientation. I the think and strategy more

about media, know deliver we’re and think primarily as provide well productivity formats the when display engagement to category, and think product we getting I talked to we services already. about I before, data that we product in as leveraging performance, which into with experimenting as the ad is those want we But and declining. where played

there’s and so on we drive there advertisers, consumer to value serving partners more more to a opportunity into And look as effectively. focus for lead clients real and the

We’ll Vince, your now call by. Vince Research is final line from take Cipiel Please Company. our at Cleveland stand open.

in the business on line pre-COVID. costs And fixed second, through Great. more you kind taking time, cause first inflated levels the fixed, more prior Thanks I percentage were question. my pandemic. Viator taking over can to would revenue the to of variable for of then just rev And up helpful of curious get a than the business they that the as follow higher. really thought be of part you the guys the pre-COVID that, on to variable comment. towards wanted expenses down did as if mix explanation running if the of I back variable. it a a of or out that percentage question item That’s think was a job on was shift nice

was added million. and year how think that given it ability on the over being time. guide think $XXX I’m I over this how curious back your to leverage that’s of about you little XQ much

to core, factor shift we BXB with those forward margin Viator change. That Viator In a Viator. than is in to back impact be will and turn. slower to margin Matt a mix a been the is business overall I’ll EBITDA core, clearly The and investing in for mix media business bringing beyond. recover. levels both have And what structure That as shift, on the our business continuing this surprising. there pre-pandemic talking about, just an has Tripadvisor and our lower driver be are improvement will grow important Tripadvisor take our they and Viator margin not was going is

You sort media-oriented has see been models growth there other especially the around advertising that travel. in slower, of

performing we’re upper we spend. instance in so funnel prioritizing not And upper – feel for the media travel spend media, broader doing with more funnel are or offerings. But media our hotels, we and travel line BXB are on

overall more That back coming levels. with that internally. levers to to market and we that will normal And have recover, so There will are the them. it’s Matt talked change slower change. about

sales to the We in took continue in hit productivity rebuild the sales the pandemic. a which force, the force,

of we And affect there’s execution have profitable portfolio. profitable can parts were Those there our so well. been that as –

may effective. we’ve us And buy so high back to ability bringing normalize to traffic meta those very of seen have with auction, will going led more our some to forward well. extent in that CPCs paid, Within as pandemic the that be

million took that, The mostly fixed of We’ve inflationary $XXX about Yes, second cost. of and part, pressures. the X/X back discretionary added fixed we about from to costs. through XXXX about XXXX,

wage three prudent marketing very last described. in head marketing investment been and some in years, or above-the-line imagine limited Viator inflation. in can it limited over discretionary additional You as TheFork been that, count and there’s the very, we’ve adding But we’ve back,

in been So adding we’ve back. prudent that

just capital say – something and be how being at mechanisms look And those that prepared cost think being team I’d focused going and say allocation – efficiencies value as as the about very well. I team, can my Yes. here. clearly forward, a comments, going for and operating XXXX their going we drive to planning it’s on through Mike we, prudent we as are being to would to kudos in structure. really it’s

on that. want So chime I to just in

you. Great. Thank

remarks. I Goldberg for would closing to Matt back time, to this the like you. Thank At call now turn

today. for time With next Bye-bye. that, all you seeing thank I look you I’d like the to to forward your time.

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

You disconnect. now may