Tripadvisor (TRIP) 15 Feb 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Tripadvisor Fourth Quarter 2023 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.

Thank you, Josh. welcome Results Fourth Call. and Year and everyone, Financial XXXX morning, to Quarter Tripadvisor's Full Good

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

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

and good Thanks, morning, Angela, everyone.

with your a today Before address share. respect like in transaction. We to further potential Board updates appreciate press provide Tripadvisor We formed on from the or I engage to evaluate proposals begin, filed questions a on resulting announced intention something our have understanding to definitive discussions won't we has Directors topic that to any stated this unless we any of Liberty I'd committee release Monday. to that Holdings' we special address

expectations efficiencies XX%. brand revenue our EBITDA to the at Brand million, QX Tripadvisor $XX $XXX I'd QX with and Now revenue our Viator. both address exceeded of Tripadvisor revenue, outperformance and XX% We of was year-over-year to like to expectations. adjusted growth marketing exceeding million, reflecting year pleased at due performance. results that were exit was

breakeven by We in our against sharpening the XX% meaningful anticipated. delivered position our Viator year an on EBITDA market strategic invested maintaining grew a while priorities. discipline. at acquisition. Viator year, to For high milestone at achieving $XXX billion $X.X profitability, adjusted points smart reinforced to year our than the revenue made progress XX% all-time our full executing grew proof and focus earlier while of year, Tripadvisor, million. Last financial consolidated the full we user strategy and At Brand early promising we also finished year leadership

delivered through Finally, and disciplined margin fork, exited at for improving year breakeven the profit we at while gains cost revenue management our the QX. significantly

a defensible Our results global large and also experiences we're in and and position building industry. stronger, reflect the diversified how growing more travel

experiences Hotel ability and X/X our almost increasing monetization than contributing TheFork our to to and XXXX, deliver reached to each of on reflecting scale in less beyond dependence in given meta Viator. Within unique they've and the versus nearly high-growth a other with Tripadvisor revenue. diversify offering, are have the grown than And revenue reduce the group Meta Hotel and in our legacy across the in our profitability. breadth And position experiences, versus leading category, the XXXX Viator half revenue XXXX. less brand offerings XX% of have XX% partner of We Tripadvisor along the now of depth portfolio,

with a guidance Let products each focuses monetization fuel for Tripadvisor, XXXX diverse deepen priorities our Brand ahead paths. we me and highlight and that At by and delivering world-class kicked to accomplishments audience on our segment. look introducing off strategic XXXX to multiyear engagement vision

impact deeply these integrated time. each and that the over generative progress creating we AI itineraries pleased innovation. Over demonstrate delivered into tool and the experience. I we're continued through relaunched year, points of previously cited product that to user few of the Trips our a has course We proof for tangible the improve

to increased Xx the than shortly average nonmember. rate was Trips has the average per monetizes average the XXx the after launch higher now average Xx member and of to revenue member. closer approximately at our already user First, That

the XXX% number users this of a the now limited in marketing are increase generated in the who saw AI tool we back of year Second, efforts app. itinerary, and daily with the and half in specifically engaging majority saved with with our an

Finally, the to rates use return see we who meaningfully whose are rates users the growth higher for continue in Trip repeat don't users than tool.

nearly our than introduced to User where the important an also Trips review indicators. we're use which we hotels differentiated strong currently positioned but at higher technology scores insights feature is year, summaries, of scores the hotel content to Across is quality and are uniquely XX%, of even this behavioral our how launch. from During initial generative proprietary we're example database satisfaction the available, strong positive XX,XXX-plus draw seeing data. early for AI-driven

bring continue XXX travelers XXXX. pages. for Experiences We to to more our used more In to travelers XXXX, Experiences million shop in than Tripadvisor

we growth revenue than result, at a segment As the other drove rates category higher any XX%. approximately in

and have inventory for new across and to Tripadvisor. XXXX supply, representing additional on we a acceleration be upside opportunity Experiences the of adding reflects year Tripadvisor. demand categories, strong match this partners for meaningful will brand geographies Importantly, relevant

few Here our priorities. are a of

the but They of deliver To and than relatively at over we'll and small users number on -- services a more our mobile total for created app and First, reviews disproportionate other of XX% more are a it account users XX%, simply, respectively. existing MAUs, valuable percent trips surfaces. our differentiated app. put engaged experience in a

end-to-end essential our app deliver download the Our aim of is app by audience to travelers and best more AI. the convinces use companion for powered to as that trip an

revenue. search from we've Second, click to will strategy. support of and our display optimized shift begin drive in everything CRM marketing led our immediate Historically, to paid spend to engagement-led our

to directly in progress opportunity valuable more product, our we the than drive of to up begin us higher-value behaviors we've a more made clicks. trip and now and because of our audiences same-session and these know have target users app sign orders against as With download to to more we the members planning each to magnitude is sign

to experience benefits through to for personalized commerce and product, that can for to includes to including more our our the and particularly search deliver and extends itinerary. also planning our rewards in leverage offer our restaurant we capabilities their opportunities a conversational and them integrate experience experience Finally, to community better users, membership program. by helping with starts This engaged on AI-driven we'll broader our members. investments new right ways free we've data highly Trip find their or AI round engage made recognizing contributions It out iterative hotel, with travelers the

$X.X drive investing year year was at both continuing Viator to to of revenue growth reinforce made at improving scale. an our progress our experiences XX%, position XXXX, Next, travelers our for revenue in This we impressive in Viator, operators and by to and product significant leadership bringing and group of and total the operating billion, over we cost breakeven the of the XX% fixed profitability for affords. the leverage more and This to cost to grew year XX% than also model our structure full reflects earlier lean power than reached revenue. GBV milestone anticipated.

our nearly our shopping our made brand the well-known the On and brand the side, every reinforcing growing experience campaign, as position the experiences most part improvements demand optimized every We awareness across of on we updates in to post-booking better its share experience discoverability, We've our other grew contributed the growth matured the business. bookings double-digit These conversion and app and of in improved and across surface. sort the across board. the enhanced for U.S.

program. improvement mid-teens driving travelers driving come than proof and They're more points immediately loyal users, users our the fastest-growing for first-time to our improvement in customer segment. profitable likely early meanwhile, customers. in is Our new value more unpaid spend for and retention using program, drove unit most economics. And are rewards through channels our The

We more participate contributes For results. Well operators, which this in latest our the support which its than in consideration healthy -- consulted continues products marketing eligible to X,XXX over the of program, shows operators Accelerate. launched in our take we version rate. creation, program, XX% and of the

are the operators expect an value. growing unit costs, drive as are product supply combination With base through XXXX, profitable supplier scale, market focused in is profitability Churn to and share enhancing and lifetime in increasing. With our improvements retention on growth, market we anywhere, of are Viator, counts experiences. on we for acquisition economics customer and lowering global steadily growth, and available the eye focused on we the largest increasing rates leader clear. initiatives and balancing in product value inventory remain In low driving a

web users app users, memorable focus to focus returning app customers. on overall interaction, long-standing higher we to for or book a On a so and interaction first an channel know continue by the than at begin experiences continue We'll These experience our on more side, that drive improved leveraging our and this and engagement data at convert We our opportunities. We'll to robust demand strategy, marketing emphasize continue along from relationship most experience to do are value they trust to customers and to highest travelers. awareness. experience. We'll first-time focused back platform to is of travelers, so continuing unique value our for customer personalized acquiring intent desktop mobile return important on next we'll group rate proposition. the app enhancing the journey that also their delivering bookers build also spend to customer optimize it's so our

in traction. improvement unit our see to expect as We gain marketing economics investments multichannel

sides to and of programs exposure of operators side, to insights. such enhance as through and continue through time. operator their continue to helping we'll features the the marketplace at experience combination tracking should for operators increase over see performance the loyal value remain On work value both drive aimed incremental help The

economics began dining TheFork swing XX% past significant in cost $XX of investments unit EBITDA currency our and delivered improvement the at also leadership constant transition margin while growth, in percentage Europe. a and of We a million profitable as in management. disciplined deliver points, XX improving our grew maintaining XXXX, revenue leveraging result position of Finally, in in we to

services rationalize of innovation XXXX, both to focus modernized our platform products to drive priority technology markets, we launch new speed continue diners our and During to European for and last both partners. The on stronger footprint shipped sides of in team months features the restaurant a value than for the in proposition the resulting they previous marketplace. and in X years, had X more product

in on user of resulting experience, For where bookings our improving diners, we made. focused rates, are app XX% conversion higher the

For around improving to XXXX, prioritized efficiency. At new and new largest to migrating in our We'll product-led taking features annual make and than increase for introducing in and our evolve we'll a efforts markets. transition XX% platform, strategy to payments drove in our productivity BXB restaurants, investments sales brand a profitable we to marketing stabilized TheFork, growth opportunity to by while our single focusing approach efficiency, ERB management growth markets, and more signatures sales our continue steady yield restaurant churn marketing diners and measured revenue repeat innovation. on by

quality app-based to on return. will conversion driving and recommendations and diners, engagement incentives focus we For through content, personalization,

management revenue and to market options, For features, the of our diners. restaurants, features high-intent value-add focus base we'll pricing to on ERB value-based growing special offers ability

We to travel growth we to our expect delivering path our our ahead. strategies profile that over streamlined to portfolio. a growth for average to combined uncertainty, investment and demand discretionary continue revenue testament unit and that believe of backdrop progress pursue across benefit a underlying is motivated with disciplined the categories. as initiatives consumers travel In longer-term In we'll which transformation in are believe prioritizing leverage our economics XXXX, healthy improve per of drive the by long-term We a we has saw despite financial other the macro and XXXX, sustainable base. To we XXXX, we're close, our results. in cost continue restaurant growth

spending Experiences world's puts TripAdvisor experiences. to intent Our and our an now to central travel and the traveler on most we believe position advantaged over for source this component. We And with as call in surveys vision be steady reflect on a I'll Group XXXX a the trusted in turn Mike. as build travel focus

on morning, million, you, provide $XXX Viator. unless Consolidated expectations, everyone. growth higher relative constant and to XXXX currency Matt, a I'll rates performance, at our EBITDA All otherwise year by million primarily reflecting the was or to revenue indicated. XX and our than Tripadvisor for $XX in on thoughts was year. revenue marketing consolidated start and disciplined growth due points X% at reviewing more period was than and brand higher performance favorable XXXX. Thank good of comparable last or XX% full XX% then QX XXXX and XXXX, a are I'll QX basis. Adjusted traffic spend percentage high-level mix of

was in $XXX perspective, a and quarter, Tripadvisor by to of million, X%, down year-over-year. segment the hotels low brand decline performance was Meta slightly $XXX in performance for strength flat performance decline delivered and of manage slightly both in by we single-digit declined Turning pricing sustained paid of flat approximately channels Hotel paid line for in Revenue the consistent while a prior Meta revenue lower to Hotel driven by a channels, revenue free in in which branded was million, targets. BXB. Hotel Hotel driven flat click these volumes, was to quarters. From offset in World maintaining ROAS as profitability primarily in U.S. Rest by EMEA continue Meta channels up, and with to growth

from free remained revenue channels Importantly, stable.

advertising as year-over-year at a revenue quarter, model revenue in the in was improved strong Growth Hotel and in by offset our and due was with performance in category margin XXX Other to million. due normalized, the our $XX as in Meta margin pressure BXB as of midst brand XX% sequential free deemphasis. Adjusted grew declined approximately sector. Experiences experiences realigning environment. revenue. as in year-over-year EBITDA advertising to challenging more on and Tripadvisor headcount revenue in million our revenue in year-over-year. approximately Adjusted other the in slightly X% was last to our result, well was our Growth or XX% due revenue Media XX% flat $XX channels As in million. business and segment $XX to revenue strategic costs. Dining leverage continued broader by remaining $XX recovery crews XX% EBITDA contribution discussed call. growing million, the the we sustained macro fixed a the slightly of sales profit to Dining media bps offerings quarter our expected, revenue step-down that we higher pattern primarily grew but a was

where of million, by basis. volume Turning now GBV [ $XXX constant growth of revenue in or currency its by onset the impacted advisory and was XX% or XX% on driven and The Viator. Middle in value, growth growth. QX issued. million, reflecting effects GBV, grew $XXX booking booking a to to destinations warnings the Gross ] other East performance were travel conflict primarily the quarter approximately ripple was XX% European

also in drove from travelers to from book they us, value travelers. substantially repeat some expensive increasing travel growth. and growth have confidence our the our trip, with are items new and In quarter marketing travelers, working. buy more they us booking propensity more which of We GBV efficiencies new growth GBV impacted that QX, our per scale efforts growing that products, lifetime higher travelers GBV all to Compared repeat gives growing repeat and outpaced

converting continue also our time. over cohorts traveler focus travelers the travelers the on given to size to new will of acquiring opportunity large attractive We market and new track record repeat of

We GBV profitability $XX revenue, will so due move approach, the flexible a from remain as we improvement of to do Adjusted the traffic responding margin or EBITDA disciplined Viator quarter. quality million largely in year. the of the to the X% and observe at is year-over-year of through flow-through a aforementioned significant with we mix

traveler discussed calls, size is acquisition. in have new the profitability of mix As we prior impacted and Viator's by

increasingly and becomes growth attractive repeat repeat flow-through XX% revenue currency a and margin growing was million, to driven Revenue of large sustainable and basis. TheFork, by driven growth $XX see by QX driven expect these XX% As cost and constant a economics growth reflecting future mix cohorts. At pricing. the demand was bookers, we supply $XX improvement the Adjusted driven was unit breakeven the both on of by prudent on and of focus year-over-year, quarter, control. continued balanced volume and which improving by million both an marketplace was EBITDA in of side on

XXXX. very the pleased for growth teams to done this year the profitable are the with We have position work segment in over

we certain efficient in brands. Technology costs as Tripadvisor data consolidated a in quarter. and approximately turning of of percent in as well expenses of actions resources people $X revenues. across related leverage. incurred the at each basis costs were to Sales line as at a basis marketing direct Viator savings were XXXX the loss with and result as million percent G&A revenue spend increased not as and in of approximately brand as TheFork half as QX brand notably well the did a were revenue well mix at of costs implemented to Tripadvisor scheme, points as XXXX percent migration-related cost percent costs for the XXX investments as Tripadvisor and Cost more brand lower to consolidated lower, engineering a related fraud XXX and payment and as of flat of Viator related Tripadvisor expenses revenue across accounted expenses year-over-year media in campaigns as points content as brand, by the due driven the Now brand cloud increased lower costs growth. most a remained of and of TheFork targeted and a marketing revenue which to revenue reoccur modestly for delevered

the million to Tripadvisor we $X approximately and expenses restructuring During announced implemented incurred previously also the at related in quarter, brand we actions TheFork. both

Now on $XX a Operating payables free and by to $XX position. cash flow driven cash flow in cash was a of trends of and deferred Viator. million, million seasonal normal deficit our at was merchant deficit liquidity

we shares quarter, at share million program. approximately under X.X cost the approximately repurchase $XX average million share, of an $XX.XX our repurchased totaling During per current

revenue our grew to performance. now $X.X Turning XX% billion. to year full Consolidated

content of marketing margin. and revenue. flat, year slightly a increased than as costs and cost percent revenue a X% comparable. revenue for of to XXX was benefited XX% TheFork segment to year year-over-year EBITDA percent grew from easier $XXX or and or revenue to lower a full while of EBITDA while quarter were G&A growth XX% Viator Tripadvisor the and On in points grew million. Consolidated first million and an the As grew basis reminder, Sales of $X $XXX 'XX technology basis, $XXX of a million, XX% the as billion, adjusted adjusted brand

$XXX Brand delivered in XX% the segment adjusted or Tripadvisor to of revenue. year. EBITDA Turning EBITDA million for

EBITDA higher higher as full year from For last was which migration brand. marketing costs, and percent year, a includes drove people and adjusted approximately engineering and for costs both of the in with traffic investment direct the and of combination XXX improvement cloud year, the and a data a Viator revenue in was leverage which year-over-year. point media cost headcount, basis advertising basis breakeven decline from point increased XXX revenue of costs

the performance a EBITDA for and totaling million. cash repurchased an flow year total million year was $XXX we average TheFork, cash loss in million at $XXX driver loss of X free operating of million $XX this improvement was moving largest improvement was to a this at saw significant million leverage versus a of of of in $XXX flow price spend $XX.XX, in with headcount. We shares In Finally, benefit sales program. We subsidy especially year of being, million. a the well the the XXXX, million sales billion XXXX. and The we've and the $XX light COVID suspended of brand approximately marketing repurchase as in in was $XX marketing and lower cash our in ended XXXX. Total announcement in time $X.X This for quarter as given equivalents. share earlier increased week, from and with impressive the received

tax estimated approximately increase in years approximately which related the to we'll resulting the with we of free million QX. $XX million net income operating of returns million years settlement the to related in cash As to a flow $XX expense $XX through an million previously year, XXXX in of settlements the cash 'XX our tax $XX expect we outflow a for and were flow impacted XXXX the XXXX, $XXX cash discussed to to net In XXXX. fiscal throughout IRS outflow take for for million, disclosed cash by XXXX,

a formation not Now the potential on the special XXXX. providing on of we call. outlook to of and for light detailed of be this committee thoughts alternatives, will evaluation In

provide we thinking to for will about the we a how However, framework are our priorities year. as

the We in to will advantage. a and strengthens long-term continue competitive brands invest sustainable builds that way and operate their

last We market, backdrop some believe be normalization although travel expect versus see we what of year. to will a a do this this to we against across year travel healthy

the the As such, we expect the priority is growth this diversification particularly quarter At tougher brand of we portfolio. the lowest to our where expect segments. year, to long-term comparisons Tripadvisor, see the see QX, some of across year in

be growth. have As we transformation, expect sustainable multiyear since supporting this and profit new said we last launching future year, to a our revenue strategy

down financial year year and with expect We are revenue our a dollars for growth, investment continue growth Combined flexibility in travel market share growth, we to in between gains. reflect XXXX. profitability the Viator, for the will profile to balance where for relative we aiming some for while normalization exited revenue stable step transformation. At of our maintain a

At We the expect and more for we be we us as XXXX to efficiency. to in with expect benefit much XXXX we year. of to TheFork, operate groundwork continue full profitable Viator laid the in continue will leverage

strategy a to operator Our down levels, to the to full step profitability. With I'd but and balanced like back that, growth year from profitability the growth in in and XXXX turn over is call achieved expected result Q&A. begin

[Operator comes Instructions] question Miller Goldman from with Sachs. Our first Ben

the lot and non-logged-in the share top engagement conversion from anything and traffic And that on on cohort? you're importance a of you of about funnel seeing talked mobile Anything members? non-app users. app of members logged We've just base to can in

booking mobile the app. combination. our -- obviously, each the at on So segments, TheFork different are for question, that us I mentioned has with a thanks of XX% Ben

engaging We're a focus app course, on this putting increasing in size the Viator focus those audiences, put and way Of of we while. a at that they're real a are on we haven't Tripadvisor and seeing in further. really

we're our to sure want give mobile-first we really, refreshed ready we we think shifting of to that is done to approach, stack. travelers. an I going as and log do already in, good we modern is indispensable have previously scale. going that sign calls and to one we a in think make that to which mentioned incentives experience tech It that I on something way for at be And the app to was had we're about this the go. And

app them there. members than to and more have download engage the We then and million to convert XXX

think around time as app. We what through converts are you're planning will headroom funnel. of they'll to we don't when drive There the many that numbers, a audience, wind publicly then will destination. think web-based the there people to the users in focus course, feel so put once of at mobile you that app of our is then, app, happening know out like can to on And is be understand we what past, percentage you intend you that into closed leverage the spending And that wind that your do But opportunities will don't we think I would and it total in be value where the app. in that -- us to here. meaningful what so the AI we up I experience And overall multiples drive Those in when will will think the we you're how look a is in engagement. experience. up they're many, what's they significant

their when to across come board done you past, think sense a that that into to without other trusted, detail and think I back the it's engage sharing experience. by that the in the course, experience further them high to world, only not haven't pay forward we our the I app, go them it the users only get is strategy app is But give quality. then experience deeply, travelers and, So an that of real disclosing in to direct have natural drive they

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

the spin-off the special just How Viator? for And Board Maybe by of for of you, committee maybe margins Matt. affect does the high-level on for formation secondarily, then a XXXX. just Viator how question QX potential we How a about 'XX? continue Should year-on-year thoughts terms Just there. the level a us in give high should into And that for think of we there? at the might look proxy your improvement scope gain? timing as

on notion been the that Yes, on take of Viator given And the this experiences spent traveler, in. business. will know the first, question. just been take We've joined thanks, on we've can we've second. the focus energy our I I with of a have and see company, the of a the and remains over for time on I'll you prove focused the the itself I something announcement has which and this of the I'm are forward Since to I been our Naved. we've the to doing seen really true. them And over I has delivers focused our that and and strategies, change business. Mike? again in that on We're that doesn't The our things are way same. shown and totally out on they moving that the focused teams that. date. not spin-off think us know product delivering. week results the think that Appreciate markets clear really And focused that Mike lot course,

say in to potential talked right, next that's other what think, consistently going seeing its margins, trajectory of peg we'd earlier question, we not about. Naved, we direction we've of specific my I again, year the to path -- in QX we've on to I'm Viator on pursue. Listen, I your which what guidance this we're the past, happened for long-term second expect kind to made business thinking broad as are, the commentary. in a to avoiding think -- and move is statement than the

as marketing to reflect this Secondly, prudent will my be say, we're we means the nimble move pursue disciplined traffic. in lower So We're as our pursue going approach I That really quality would some we and and think about year. as to we're investment be be through that think about and of a have disciplined going comments, to not high-quality we going we to this. supple want traffic, right? means

over trajectory, be on this potential on believe that that arc So again, the I long-term achieving want margin what would business for say just to we near we term.

Richard from comes question Clarke next with Our Bernstein.

additional ask EBITDA. $XX If QX you I additional year-on-year, maybe revenue slightly If I different made $XX previous question a of million look at that of just way. Viator, can at a million

contribution margin back economics? a just like the that is any that leaning to of and bit mean flowing into that's about that now more I through Is week what's And unit else line?] of seeing then maybe that? that's Or benefit achievable any that secondly, improvement? maybe you XX%. growth? So talking Is guess, in I marketing. [ big on on Are of there gone anything is Expedia spending a last Trip

Great, thanks, those. Richard. take I'll

I can think but that come in to light, little back question is a second. last I heard a the we

clear, on quarter QX from like macro just perspective. QX, tough we let's So was a be -- a

of kind We have the we brought certainly a of headwinds lot the to Mideast said, with market. things conflict, as some happening

want of really back to high-quality very I discipline terms the being more were traffic also a comment just to in We about we And how getting targeting new right? thinking much discerning. bit and in acquire maybe users, made,

those user both cohorts, right? prominently through, impacts is growth, providing think, you affected new the come the more which or repeat I power large really revenue so saw there. model, So And really

question... think I difference growth, GBV that -- I'll bit maybe but just we -- and growth more and and of you I'll to, a there rec should point also discipline XX% there of -- was the point was QX from a EBITDA XX%, the it's Richard, an repeat So that flow-through margin. incremental through timing differences timing right? to had of second there's But So And really impact we user revenue the rev the some cohorts. due of more new macro and then quarter versus lower from the flow-through of in of marketing read saw the had some just we acquisition

auction. look, participants healthy. But past, comment the on off It in clearly, the and those Expedia, don't the seriously. -- obviously I've bidding in we maybe are quite and take relationships we said dynamics was I'll around particular lead

makes announcement deliver look way lot a that something I like think as time bidding expect we their And so working make can that can respond, objectives. for partners to Expedia you I but And with are spend we we others think take dynamics marketing optimizing sure that's that that, and an are the advantage of, to our of healthy. we will the

next with Anmuth JPMorgan. Our comes question from Doug

This Dae I Doug. had on is Lee for two.

we that stable any out there said value leverage be greater then And higher dollars marketing looking out face emphasis brand marketing sales to XXXX, true, Mike, XQ? XQ. you think users. I And ahead on guys talk revenue one, outlook? else you And could call marketing [indiscernible] should to about sounds Trip. and leverage? saw a that First that's it affecting If at like of strong social in very efficiency expect on to in you're secondly, you expecting what's you

to a let broke it. up parse me as little mean I try bit, through Yes. you

any show first guidance. to think specific away stable at was I stay wouldn't from we And was. guidance some year view due specific about I but shape want question that around give you the away to we're from -- Again, understand to of away recent stay want be question core? revenue your I announcements. would the we the of say want what did just specific to and thinking your how

replacement transform that can multiyear to when Secondly, my would dollars challenges a are strategy to color upfront. focusing we've to comments revenues. we very very a that our is We that, imagine, going. think I revenue we're that about that course, see streams. growing talked And the diversification give Doug, are all of you, on pleased your And with you the the I quickly. categories of from that familiar some in only reinforce with do secular from I how in you're And business. beginning tried on you diversifying is

sort that, feel all around It's we're we that kind of was And balance that expected, comes whether really see... progress. and you marketing good of when question together shape. the and dollars second a what we'll like in we So making

repeat that? you Can

Yes, got because why don't we not repeat that sure question are you the we second one.

Yes, sorry.

sounds that XQ. saw source to the to leverage leverage XXXX? higher-quality else you efficiency we on in a greater expect on wondering marketing marketing there's It anything like be if should out in if one but of saw you on emphasis placed call XQ Second and in guys users, was you

to Viator And again, referring are your in you comment?

I mean guys both saw that so and strong marketing, platforms. a just Viator total you sales and brand guys saw like you Trip leverage. across It across sounds very

Yes. Yes.

the on both leverage the So unpack Brand very answer. healthy Viator. in I Tripadvisor, really quarter. platforms, mix very think last and that channel a much leverage impacts the just we already saw about is Viator to brand Tripadvisor on just I talked free result. That across

direct Just free brand it's SEO, day particularly other credit channels, our really whether or CRM, Tripadvisor work the channels, channels. who all on to on optimizing every but the teams at

certainly our we and brand continue factor We pricing results pricing drive the saw how see forward. on Tripadvisor. to to basis. That driving All teams expectations on certainly at versus there. a was nice are good that We good the year-over-year focused a continue

to well are you when year. in know, how that in dynamic markets, you and both to year, drive both experiences next -- the as particularly free paid markets, in just in continue things advertise paid As the ball hard working but in will think Hotel to channels, well markets very as will as -- our advance about that with free that as next that, be the the teams both into was business. and they to clarify, continue Meta the we These was

lot an strength I just attention And XXXX. increasing it on an marketing Doug, focus that for becoming us. think want I put to of in source is say And of a area is and we

each funnel approach. marketing We the leverage are at business, thinking how full basically to about of

XXXX able to to back Viator so being data is targeted, drive down will by leveraging at before and funnel and in more Obviously, our their fuller and in And be continues Tripadvisor, leverage. adapt really some we'll it spent strategy because up never and like traction marketing investments. serve that had engagement-led time the And funnel that as our going, our to scale being more approach be cross-channel of data really that business to to continuing and really continue think getting optimized. and I gain

we -- at all more being thinking stuff we markets when of new do of into and TheFork, and do leaning really we past priority about do this want the to then and prudent to the very how everywhere about year about used priority repeat And focused in our awareness some and thinking markets. across are that focus and marketing the focusing really on on we on

more each the it's going just full think segment, a for I much what deliver. you're approach sharper, and So to to is strategic, data-driven funnel seeing

Our next question comes from James Lee with Mizuho.

Two over here.

First tech seem size have position you good to the investment on your talk you're media stack of the make and engaging? about experience, reduce And the the to were number that, guys even to of I here. second, user advertising given please? your conversion. product business at pretty making Can will get looking you you progress historically, that And about talk audience more can steps think a you on and in to

I will Okay. second. the Michael first, I'll take take then think the and

been competition interesting part and advertisers. we, for interested intent a it's and the a own, both is I and it's areas it's other contextually And it's our endemic So product. the and existed with highly and the travel. high think been in advertising years, business audience non-endemic siloed over that is one And fantastic its obviously, of have and It's in maybe it's qualified business. relevant really audience media of that on

Our is but overall opportunity, solutions only value. experience that holistically of and up come great and partners, not that traveler of more advertisers experience for part be into can course, the to with integrate opportunity are that's the

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our right experiences I or the business impact ability, know are working strategy for making Viator. we're and the us time, both our we've then people And really talk Tripadvisor, brand the to but really our we Meta to ad as this at think, heard excited right on it a with broad that targeting Hotel user across sure about about definitive Tripadvisor been brand the I hotel And at question, it impacts. work year, supply Yes. fun brands, some kind your of so has right? of Brand conversion much and brand personalization, you've Tripadvisor, relates done about a conversion. on question and seen and for the there. meta particularly We're lot on some we've that very data this at of excited we've Tripadvisor, experiences cuts primarily experience what of product It's work

continue funnel. at and a that optimization shared core Tripadvisor teams teams. we We year, lot the in right very know, had Viator, largest to brand do. there. goes is between optimize everything And they've And conversion gains get what the Viator to the learnings the experience they in as with you comes and base there's visits put when the the of solid user in experiment very of teams do this how do using proud getting that And we work to and funnel supply the market, have from Experiences to the we supply us. offer data of person and That supply right

seamless right really right presenting of all to to were what were and type book. making about. or price teams that's And supply get at the really we it the the supply sure to diversity making So

think at And benefits. loyalty These are conversion this we're excited enhance are Matt those we year. we're that to that going Viator. mentioned program really about things working other things that -- all on

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Our next Jed comes from with question Kelly Oppenheimer.

have competitors indicated Viator recently competitors, you going of a into Can your the core with like lot they're some talk channels seeing performance some about Tripadvisor? going with still you're 'XX. with marketing to in both Seems of competition spend just and your

different Yes, in the -- a as one. areas. these Experiences markets Viator competitive, competitors space you are Jed, so I'd say, know, extremely competitive different is

our how using of have there's Again, branding and long assume pretty channels. in we, that to of are the where continue tail to in paid our bidding would kind about disciplined have Experiences. sure being so getting think You users competitive that few will show marketing as not there's to to We'd think tend key, the just that's economic that's back back. Experiences channels actually model. those make we're brand scaled at dollars that a more larger that and that the Obviously, paid regularly, fewer up acquisition, it are operators are very you we convert, again, we've for to that in campaigns. broad but are in operators market, some about the the do a know, we time And we'll still but a broad specific you the convert, others and come that more in more dynamics of that scale said wisely

that again, is paid that's you think be very in a hotel marketplace. we are why, in are disciplined competing very have against channels the you when approach. think ecosystem. imagine And primarily about about Tripadvisor, At our all in the would competitive brand to you players And we where Meta, the Hotel

been maintaining ROASs. our We said marketing many very disciplined we have by, as times,

to app, users that our those we Matt to the to LTV just around, type starting have sustainability and not convert in the in behavior. some that thinking We that have right, right but a see believe to are really acquiring right it, about to personalization can Matt talked and are investments ecosystem that alluded that data we about promote how acquire we users data and his that get about around really of the again, can get excited attributes app that about believe those prepared remarks can we goodness -- and use think the of actually to our convert, really believe we using

move continue through So we're year year. again, this as we to on excited we'll that lead the nimble about And us can areas. where be both

from Our comes Wells Brian Fargo. next with Fitzgerald question

is you talked little quick a -- on a talk Nice sequential decel grow and it about to the factor competition XX%. the is A space. prior talk call, about you demand? really that sounded Or you follow-up quarter. in normalization of periods. Or -- a it's bit competition there? it demand Is from that a it just competitive main consumer Is being Can to? it like Viator. it pent-up [indiscernible] of

macro. demand in of up then And was you kind can hey, each XX% it's dining consumer experiences it's X/X Hey parse if those. of So Hey, year-over-year. it's competition. it's out, revenue of Hey, on normalization. brand Trip

How growth Dining Experiences nice brand to seeing is cross-sell Trip? more to assess how runway there? much out drive there. there we're Is you So would runway your of inventory Experiences? the And and and ability and across travel Dining

Yes. take Yes. first the and one the second. take Matt I'll Great.

think I question and about around you really So decel. think when QX -- the is

some things marketing our and would we're a secondly, wouldn't impacts funnel, forward, that have quarter. And thoughtful year be when think spend user, we're revenue. are the about about that, would to helped big I then expect you two lapping a it's as of it that we Two, in really slowdown really the -- to two going we and as new thoughtful One, think There lot One, was was right? a volatility of dampening said, of areas, out driven that bookings. And volatility. as look lapping contributor prices of are I it it are the came really, -- revenue, quarter very some acquiring these in by about things: and we of be type was we demand as in And and careful a big say, just said, we you right, XXXX. the it's the right very macro. margin -- through in

the a think we factual we little in So a year. would that said, the lower when and you we kind starting you kind some are new a as I that the we're think have because move But the of where we good a the a bit yes, effect about but that, of position have, year, of you'd yes, had things pretty knock-on where statement. about be in macro feel demand new of if user that into our -- was we

So second question...

I able really Experiences about what talked loved is Tripadvisor And we've the question really advantage being of diversify supply and and how as Dining, Experiences and match about opportunity. take to think out talked about demand. economics about the to proving and you marketplace Experiences

when are is audience search that that we $XXX on about comes being And really really incremental leading transact next to leverage mentioned or on I them we example that the our why to scale, have data, understanding of million so and And kind site. identity opportunity. our that understanding shoppers thoughtful an there they of the that, how experience path for

drive, I think, upside. to so And going meaningful that's

today today, Now the can ways Viator, broad through relationship different tremendous drive out can well driven And But geography, else and by guidance is bring we proven growth, is time and drive to it really this businesses really we're bring by that excited offers this long that new a because will offers and that two about doesn't inventory has matching for largely elsewhere Tripadvisor, -- find. platform. that Viator category an with to able think being than work find Tripadvisor course, we at of growth. And we've those of are those anywhere significant And we opportunity you deeper and to deep for together in to opportunities, finding there categories something maybe can really together to more represent even come. do. to Viator to upside

right. think I you're also

members tremendous think and thing that through value able create is the the there our most identifying in app, mobile that being a with opportunities our us the about relevant starting and make AI As relationship. full engaging increasingly to and to opportunity wanting app, on do highest-value gives cross-sell we generative audience right and tremendous itinerary happen of as it cross-sell to that

that are last emerging I seeing over the year, diversification drive articulated can Tripadvisor. think of view of engagement you happen. strategy proof the done said Quarter-by-quarter, I we've what product this the from to what do points, think we've in the said, I can As start. And we've the this indicators that, the

thanks So for about excited We're question. the really it.

if real and using And a -- follow-up AI versus mentioned both low-quality I were they could, to quickly, we're as high-quality data traffic. pursue you because

data hey, you then match that we're we're really in current CAC the that in or Could matching. your using both yet? in to And got have assess our terms to early strength of, optimize much we're Where days the better a so hey, of hey, applying we and cross-sell. how lot regard. runway bear ourselves taking it informing just spectrum And we've we're we Matt, data data you bringing or and of to optimize on mentioned, to quickly our still are not of,

and it's Yes. platform could we the place. the mean it was created the opportunity begin when then profiles. privacy I all days. into all -- flowed I put more proceeded for data do Remember, to with governance and of to articulated tools the has a And our now that early of group that. we we to X when It arrived, We leverage vision of segments We first that billion in target. appropriate with over data to data. data unified the

it. -- are we early booking it's data, there. And that click stream it's data it's data, it's behavioral using and have we So innings the same very where only not data asset all identity,

have have ability we now course, on data And before. of that second-party a third-party bring didn't to the data. We

appropriate your not of are set brand early. you behavioral of is our personalization, and we're do And stack a and to immediately all These use process size on that what and and the data overnight. So center begin product to content marketing but of have that's things AI of data a you more the tech more you target areas with to that are first-party to we data us development stacking. to relevance, quarter-by-quarter, you with in to tools quickly at move stack are if really beginning get have things our it. because and -- in that begin audience, that a of putting create These allowed can it

over I you'll us progress continue see think to that So time.

Trevor with Our Barclays. next from question comes Young

like per X them customers Just those doing keep on new customers trip repeat more higher-quality it more item. expanding be Is higher customers right are customers distill kind of just items and those supply those ago? and behaving efforts you And Is it minutes back? to you and to X per mentioned from program? loyalty better the of it that or like what start retain hurdles down Viator, steps to try the price X? day what couple to those a the surfacing are to supply coming Is with get to going the

Yes. Look, question. thanks for the

was think on I most Viator of this hurdle to offline. that is The biggest transacting single this happens early. still very

those And so that great experience like would X/X then awareness even the the them When book travelers, all of an that exists. relevant there's realize talk we category exists. online. easily And category to of love to almost don't a

is the leaned that So it rising for we general. that Viator category really to excited I we're getting that. is in into we're about And as excited the think awareness attached

get operators real figure operator our our programs. product and their that right strategic going only we means more that booking, are a easy, of when largest but and relevance And has sure other making then, we somebody's ultimately end-to-end focused scaling Viator. is really multiples on course, they sort we them choice back the the data on making reason and the to consumers. trusted, the thing have smooth the to experience also first represented habit excited to be for industry, it side, that can the we're on of team just the works. probably partners, kinds to Because The return, for value And very customer for They've been a valuable the job to have create a do this. the top to base, And make been match and category. of come out counts experience tools our with second giving through creating just Viator on a a not in better default that interest, if

turn Thank would closing Matt like the for over to any now you. back call I to remarks. Goldberg

progress everyone today. We made joining for great Thank you, and thanks XXXX. in us to again

on teams talented look and forward clear focused we Our on the strategies Thank next are update. XXXX for to executing you.

your you participation. Thank for

disconnect. now You may