Tripadvisor (TRIP) 6 Nov 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Tripadvisor Third Quarter 2024 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker for today, Angela White, Vice President of Investor Relations. Angela, please go ahead.

good Financial and Results and Third to you, XXXX Quarter Call. thank afternoon, welcome everyone, Tripadvisor's Felicia,

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

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

afternoon, Angela, everyone. Thanks, good and

quarter execution Our Group. performance teams and the Tripadvisor our of this across financial focus operational reflects strong

we to optimizing scaling we're journey to for that offerings drivers, diverse profitability. transition focused and a on continue growth growth of legacy have strategically our we managing from portfolio the As benefit multiyear

Viator legacy $XXX our quarter, Hotel consolidated third anticipated our Meta TheFork. with on year offset For and the and line in revenue, basis, offering, million healthy we a flat delivered in in last the at growth to expectations, headwinds by given

XXXX, our us I'll estimates. this our progress opportunities have in will made we've and teams adjusted reflect full the about this as starting delivering Our his on ahead. I'd how how to at in gives with reaffirm the in more category. million, details Mike and X EBITDA opportunity cover together came experiences think like confidence comes year take we to the provide section. delivered to segments also meaningful all $XXX profitability, which with of our

and opportunities most extend low recognition than attractive expanding this our whole the most This the global tailwinds, meaningful given travel. leadership market with faster travel still position profile. industry as is growing and as the scaled grow This large exciting platform and the to in in important penetration the of our travel experiences of have financial ambition to online positions of secular Our one foreseeable future. to do. a and part work over much We is the experiences

we've travel, supply But operators, of platform source choice unique third-party in review some sizable, of the deepest trusted and our with of In for we're audiences, online, in our and the investment been leadership confident of group. the assets, and the Viator most brands extensive high-intent distribution the and to to revenue larger an contribute increasingly share position. segment, scale profit balancing drive growth

of our BXC the this As points a from Tripadvisor BXB and distributors. includes reminder, operators as for Viator well as and third-party offerings contributions sale

of funnel the discover to position most their the to with broad meaningful In $XX XX% guidance reach and travel value, upper the book is gross Its revenue. the audience fastest-growing $X.X XX% experiences journey. at QX, brand and trusted planning to innings distinct still travelers Tripadvisor revenue was in and the was or billion. The comes planning in and believe of year-over-year we're category, million largest We EBITDA early booking its site approximately capture of and X% helps one grew experiences. or Adjusted and $XXX travelers. to million, in growing brands serve in advantages GBV, start

and with to travelers most capture high positioned the U.S. foothold a source as leading Viator intent is further brand the travelers. down scaled funnel the experiences supply marketplace well The with of strong

that product, and with leverage supply, audiences our new reached we've allows geographic assets scale unlock different serves distinct brands these marketing across us capabilities. expansion to the of each combined unique opportunities While products data and strategies, and

progress and awareness we've direct in which Year-to-date, low-cost bookings seen We've higher-than-average from reflects growth channels, our investments beyond made search. in year. progress good and priority our building other this Viator our at with increasing scale

improve the continue such as traffic conversion sources to board, tailored the and across pages products experience that have user landing to wins. the We yielded improved

effort we booking into in our and travelers, mature growth, gives large App doubled bookings repeat other stable to us drive since foundation new app of which the that repeat We're and faster the XXXX. durable Our mix than has surface, for growth. combined to in strong seeing app with more grew expect almost of QX working. is cohorts bookings any customers bookings confidence to future

agents experience. also leveraging our assist agent leveraging improve also using are service provide we're recommendations better but better product we higher for customer communications to follow-up. We're technology in AI GenAI Not generative drive conversion serving increasingly that customer to product the and travelers only to generate and

historical Hotel Tripadvisor, legacy pressured XX%, our a of is this Shifting revenue the million of expectations, which Brand Mike will further in came shift This to revenue, QX decline reliance adjusted to with our the to to EBITDA within XX% year-over-year of which but shortly. where or expectations transform above continue Meta Brand and timing $XXX profitable our investments. from discuss was certain work $XX and the of million, due of reflected transition in on business performance, Tripadvisor's teams financial offering.

this planning most strengthened we trusted to and And this year believe brand, solve rolled We with our to indicators engagement conviction. guidance, pain well-known our data. travel is for travelers uniquely extensive we're new innovating of traveler our point high-quality time-consuming with only out content and the of by products and around headwinds labor-intensive address travel. strategy of positioned Our one parts still these the

growth more XXXX. benefits engaged growth mix, channel and year-to-date, app engagement to active our importantly, growth the versus trends have see XX% MAUs year-to-date. of other monthly in and active continued or We our most our returned users, Our monthly than direct more quarter-by-quarter. members this has in channel any where improve And have our to users among stabilized MAUs, users added than achieving

noted launch and first, continue we the in similar see I've we the fast following where against increasingly performance to see these products outside prior in strongest metrics new U.S. our quarters, follow we trajectory. a markets U.S. market, As typically

course, our engagement innovating at to actively managing audiences, structural Of in must and progress hotels to continuing headwinds product in Meta. impact strategy grow marketplaces financial This these translate scale. particularly and this in our experiences means in and our the Hotel

highest resources shift areas continue future focus differentiated and we where growth. the We to the about have and our are conviction to

key center will execution on a Our pillars. few

feature mobile in experiences our have and trip engagement booking First, focused optimizing hotels our that app we're through resulted growing repeat and in capabilities. conversion host and already higher evolving UX our planning changes on of a rates,

and continue higher the photo in-app better experiences and seeing higher versus and review U.S., we meta. click-through revenue hotel scale As to Xx per in-app booking booker rates, monetization submissions in significantly we're

most reviews, serving other demand we experiences Second, the help guidance new AI with supply travelers discovery, content find features which includes we the posts assistant and designed leading Tripadvisor's do. our Brand launch see of diverse and pages, when guidance navigate geographies. We're on relevant effectively partnerships on categories billion-plus we're forum is cross-selling improving global like and in focused more in funnel. hotel best chat-based destination accelerating by to the to to things our experiences expanding new also growth on This pages detail

more higher and deliver our This as achievements an new like and including rewards, in proprietary on program data focused hotel in-app leveraging driving meaningful out promotions enhancing member planning member-only booking includes to AI-powered rolling features, membership conversion each as are member. capabilities personalized we're trip also recommendations that to Finally, uplift contributions. and cross-category well

positioned see to ample evidenced financial performance Now as turning in million at in Adjusted or a we're of we is to from trajectory, XX% segment's TheFork, EBITDA growth. opportunity and the sequentially accelerated strong last where revenue, million the year. was year-over-year on $X Revenue for sustain to a category, quarter momentum. QX significant $XX the the results improvement our record. dining This growth well XX% or best

diners defensible Europe, serving platform a operators. dining reservations in have We the as and position both largest

growth sales TheFork positioned fronts, diners delivering the new unit our growth. well are us improve providing marketing BXC the combination strong in which Our on continue and improvements well at repeat and and Continuous a each to of restaurant efficiency both are that for as foundation strong economics driving product BXB through productivity a have healthy future. of base, as

For in conversion our and more growth. better BXB content diners, relevant in special and which our review user AI-powered operators, an restaurant uplift more also with driving accelerated experience app usage for tailored strengthened to is offering largely increasingly personalized is summaries, provide flows which value are onboarding ERB on rates. driving offers, our We've

optimization upgrades views, AI-driven and service analytics, better Our predictive enhanced table and mobile revenue management insights. include

entered a as to Mastercard, diners TheFork recently to consumer to together We Mastercard a strategic value partnership a provide continue work announced Europe utilizing partners restaurant treatment with trusted we'll with Vodafone Following new across gain relationship TheFork, into dining with introduce proposition. recently cardholders and premium our preferred for pay. strong traction experiences we brand to and

testament this To Mastercard the scale value and collaboration, technology. is become of further our sponsor While until title a our year, this to to next in this won't our payments brand begin will reliability fully enhance forward. of we Awards. set TheFork Throughout multiple our up desired the to making going deliver categories of XXXX, us progress in profile each our which delivered tangible we've event, will evidence we're annual believe segments, across financial also

we as for XXXX. input critical a is solidify This us plans for

want do take the our While to the it's emerging specifics, to I some opportunity on to for thoughts year. coming premature provide share priorities

value normalized of industry and operators. double-digit capabilities all revenue to financial in experiences, higher leveraging Even brand continue scale, believe the our our BXB of group distributors leadership utilize across with profit this the our we enhancing with group and and our talk overall all we mix growth relationships a our will growth, of marketing solid geographies and rates will profile. and in contributing category travel, outperform assets extend First, to with

membership critical in-app, and priorities a including Second, drive sustainable, increasingly and We set especially we a further believe into brand guidance, of expect hotels our experiences monetization. these differentiating to Tripadvisor our content focused translate most categories, in our streamlined financial planning reward our offering engagement strategy booking to priorities, and to around growth on and driving profile. enhancing long-term and are be

momentum, maintain growing our growth we'll managing and profitability. this improve Third, BXB driving as ensure including foundation continue continuing And products delivering both on diners and our at and to operating we'll BXC we balancing by across finally, agenda to on that operating model we costs strong group TheFork, our diverse journey. across growth as growth year's the revenue transformation restaurants, begin our build and and profitability, investment supports the

to As happening macro is what's always, its difficult level, predict. impact we're future a on although monitoring

bifurcation some to growth and and higher I intent observed We durability in average remain overall and to income of of book periodically, booking But of travel. and between confident in strong regardless continue experiences fluctuations intent windows in travel see travelers. lower leisure see search we with consumer the stay. of length healthy data the stability We've may

experiences sector has change the to the continue a call Across Tripadvisor continued long over build an growth travelers offerings and enhanced emerge This travel to with innovate is of well central that part durable that, we over our the the and to adapt, category positioned trust Mike. increasingly as for term. continues turn Group, budget. With and as to as we I'll are grow

the Thanks, our Matt, year. the for and outlook quarter, I'll of of review start a provide remainder we'll and afternoon. then the good with

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

in $XXX was Adjusted to in and revenue or and than our of due revenue I moment. contribution, line XX% Third million, a Brand which meaningfully was reflecting million EBITDA expected with will flat growth cover $XXX higher quarter expectations. Tripadvisor

Tripadvisor a line revenue million, Turning primarily to by revenue declined for delivered a Brand Hotel which was Performance in sequential to decline step In $XXX million, Meta. expectations, branded $XXX of segment XX% performance anticipated third down. of XX%. quarter. the hotels, driven with

anticipated, U.S., travel of environment of a softer trends. Meta, witnessed in from back quarters, reflective normalization we meaningfully the Hotel which we As believe overall prior is the stepped in pricing particularly but

we headwind, under off-platform revenue. the but quarter. continued overall quarter, creative largest grew Meta better July offset the advertising be than programmatic and declines and volume throughout Media our then from in $XX improvement direct in witnessed peaked consistent trends declines we're our Hotel X% and in revenue and year-over-year advertising to in advertising QX. Revenue Wanderlab remained and Growth For pressure to in offerings sales our million. Studio saw

marketing X%, strategy sequential primarily of was sales Experiences was to ongoing segment-specific this driven Tripadvisor a and our the model revenue dining $XX quarter transition and decline to revenue. by Brand million, restaurant deceleration offering experiences In BXB driven and emphasize by in performance experiences, self-serve a profitability.

million, Finally, declined XX% line expectations. revenue in to other $XX with

of rental basis on to revenue. vacation strategy. stated rentals deemphasize higher more offerings car EBITDA of $XX of despite approximately focus revenue. percent Hotel Tripadvisor Meta Adjusted million to was to Brand and our points lower was deleverage initiatives at XXX revenue, aligned or continue year-over-year We as flights, costs XX% dollars Year-over-year headcount lower to related a primarily due headcount to our

due than true-ups certain to the delay Relative our we quarterly of August, came to to in expectations normal outperformance, expenses XXXX. until in investments outlook decision growth certain higher operational and

While postponing expected adjusted outlook QX August. growth it to versus investment revenue benefit the QX delayed EBITDA in EBITDA, was and a our also we reduces the adjusted provided

GBV GBV outpaced to grew approximately QX $XXX or X% Viator. billion. while point-of-sale to Brand for grew total Viator different GBV to which and total GBV, growth priorities revenue XX% $X.X points of the the Turning value, million in reflected profit booking is growth, gross growth growth. segment between and rates. grew below function Tripadvisor growth Viator is sale, growth relative of a different point-of-sale

OTA, XX% Viator which and of costs. contribution discretionary million EBITDA as As on this of was us points assets, Viator's as look unique capture as intent marketing ability and believe Year-over-year market we brand profit reach adjusted opportunity. to capitalize combined an lower a percent travelers provide revenue, expenses high and Matt funnel, XXX or a people advantage large Brand distinct large mentioned, was in basis fixed leverage by to with upper we our driven margin of higher broad include over Tripadvisor's $XX revenue.

are continue While see in our healthy faster. beyond to our marketing search channels, direct paid growth growing channels we

We continue repeat bookings, strong this and to in drive has consistent been growth quarter-over-quarter. growth

revenue in both pricing, our At and combination and bookings growth million Olympics or with Euro from $XX TheFork, well XX% despite as bookings. volume constant as in repeat Growth a come BXB by of Importantly, terms. XX% revenue. costs driven growth lower was new marketing than currency Cup bookings was headwinds and strong

due also spend to quarter in marketing was last from acceleration quarter. the due revenue and noted Sequential to partnership incremental we benefit higher BXC Vodafone the a some

Our BXB revenue our operators. enhanced faster than investments to restaurant an TheFork, proposition overall our as to we capitalize business, is product while a contributor reservation at on revenue drive growing smaller value to

Importantly, of the the ever highest people XX at continues drive business leverage or and is restaurant revenue, achieved. and an EBITDA primarily lower particularly due fixed costs. to costs, improvement of was team efficiencies, to acquisition has points through million costs. percentage reduced brand the XX% TheFork year-over-year This and represents greater Adjusted discretionary marketing $X include margin which

flat consolidated to and consolidated was due of Now media turning of for primarily at cloud the revenue, costs Viator quarter. Cost costs and as to percent higher basis revenue transaction XXX higher points, of revenue of Viator Brand a X% expenses marketing production increase an as XX% leverage of Brand of Tripadvisor. mostly by of was as and revenue consolidated Deleverage Sales from costs Tripadvisor. was revenue a revenue from a is year-over-year. marketing and TheFork sales percent and offset percent and

points costs primarily QX higher content Brand as in year-over-year to percent QX expense cost recognized XXXX in support approximately in Tripadvisor due was of year-over-year revenue to schedules in of resulting revenue, basis share-based XXXX. a strategies. development and additional as percent of equity due respective The their G&A and QX employee were differences $X our flat revenue. in of XX%, of grants, XXX for higher, was XX% product Viator a to expense million vesting advance increase of Technology compensation primarily versus

resulting XXXX XXXX. than period to years rate impacted X grants the in during was as XXXX, for usual years to X disclosed vesting run onetime lower a equity due primarily QX acceleration of our expense company-wide SBC of from

to working pricing liquidity. XXXX seasonality. year-over-year cash related was flow and lower cash and cash were the seasonally of year's and flow our reflecting free $XX $XX was approximately last $XX drivers the to million transfer negative payables other million negative Now merchant XXXX, including changes million, decline Operating IRS typical Other of capital, deferred settlement. refund in

continue net to total the 'XX The of million to next XXXX We versus fiscal pricing transfer through transfer approximately last approximately $XX million that settlement XX inflows of IRS in settlement. $XXX outflow the related $XX XXXX million through expect transfer 'XX pricing from the cash XXXX net XXXX pricing to months million cash settlement $XX is of year. $XXX outflow to IRS expected be net through XXXX in to the million IRS

XX, We increase ended the nearly XXXX. of cash with $X.X quarter and million from cash December billion an $XX of equivalents,

During activity. the repurchase quarter, we share had no

of to potential program, due shares purchase public the have been have the of our limited continue in to the ability not past alternatives. we be consideration ongoing market terminated in Although a and we in may strategic to variety

We our relevant conditions and to opportunities repurchase capital for other needs, factors. look account to into will shares, continue taking market

now the was trends with meaningful saw positive trends from consistent early rate, where Brand an Turning to acceleration recent QX. growth with third with third outlook which quarter line performance Meta for Tripadvisor, October, At largely in the QX where was trends. we in Hotel In Viator our from performing with October our improvement our exited and exited we we quarter. quarter,

Given seen consolidated August. revenue EBITDA in quarter-to-date, a our outlook with year adjusted our basis what on we've full in and are line previous XXXX

high Brand TheFork Viator last expect will higher single-digit while revenue expected deliver revenue growth than We update. Tripadvisor, in and at our declines

basis For year-over-year. points of consolidated adjusted EBITDA, XXX we expect deleverage

are while to As a to result, TheFork At Tripadvisor, declines to to we to expected and growth. growth low be growth sequentially sequentially accelerate to expect mid-XXs accelerate in year-over-year. QX to of a revenue expect Viator Brand sequential mid-single digits flat acceleration mid-teens we sequentially consolidated revenue

year-over-year. adjusted consolidated QX, in we margin expect EBITDA For to continue deleverage

revenue XX%, other costs last to discretionary year's that combined approximately is branded be to actions hotels, lower with lower costs. primarily cost the We of and expect drove people Brand which Tripadvisor in lapping margins due

the margins we single digits. largely us And TheFork, year high are last benefit we next some we growth in that incremental investments expect for QX margins roughly expect as will flat with For Viator, of making year.

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

first line Miller The from the Goldman of of Instructions] question Ben [Operator Sachs. comes

can next bit? on out Just some it some a out and the the we understanding, expand drivers you and QX investments on Trip takes qualitative of puts sounds the in Brand like into margins, of look pushed as the performance of were year, margin

want takes in we puts Yes, Ben, a be for were transparent couple it's and Mike. so on. there Yes, that call QX, there out and of to

quarterly saw by three really weighting. think I and things, it's relatively certainly Brand was we of some have two, of see saw adjusted investments into on two, our some forecast build did of we see all we did in ultimately And we assets executing accruals outperformance, that kind But we across driven that on. the some at Tripadvisor. equal -- we saw that we One, three, normal some when the outperformance that did we normal course we the business. not market ended

going into have really well. out, knock-on I we and did as again, but pointed out a as being roll would that's to right mid-funnel result really making QX thorough investments sure have -- in move about, XXXX. high conviction into that really very our marketing it us we're excited the of roll were about a before And it in in And get we dollars that we think to These social out. still and effect we very sure we we continue very make these testing as are

work XXXX. movements. early the to we're doing we're now. But sure with the right transparent we That's impact want to QX margin again, for Too the to make think about

could member what in learnings any or inventory as just curious And can adoptions just the on engaged app. that's Great. of and early on hotel a penetration launching follow-up. And you the the the was then like of actually if base from color look made expand you booking? share I some a bookable

with And and you, we're approach taking we Ben. that It's we as engage app, we're Yes. we're what ecosystem, about We're the excited Thank good Matt. feedback. getting a to in doing the differential this. think

product. a seeing shopper. higher a early, for demonstrated over out. meaningfully higher per results preference we're when roll hotel revenue which we while see some booking really in have option we higher in signs booker, And Members they And rates that it's a Meta promising than that really click-through that and as they're so multiples Meta is the with presented have booking

new seeing strong conversion also the We're a And repeat. rates users. to Xx propensity are than higher

And when again. actually And well. they book shoppers with also categories somebody are so other as to want engaging books, these

trips, So engage hotel experiences incremental they bookers more more. drive revenue and reviews. more they material also They leave create

our that we already we showing have scale, so it. as to And we're that is launched opportunities conversion we since we of holding can drive And levels that not even grown only higher has meaningfully higher. conversion, which testing drive conversion, identified

so So feeling about good it early, but far.

The of the Clarke next of question comes line from Richard Bernstein.

deck your put as about at I by half out online grow a there, that if you're about guess bookings a expecting release XX, at slide with Viator's growing XX% Slide looks on market I look you've experiences like just but the it moment. the at to CAGR,

And So just that what in versus online you're of to as business? level market profitability putting that for balancing wondering sort catch growth of kind growth out of expect you can experiences? up you the what you're how

answer in. Yes. it Richard, I'll Mike. and Matt can it's chime

grow foreseeable to agree online is the faster online So online. than for a the think moving all reasons penetration more overall to we offline as obvious growing and experiences future expected the and listen, -- some category of travel I that around for

-- very then general we're so category. And just the and awareness of

nature of category. the excited about growth So of long-term the we kind are

year a were come this a pleased Viator, and things that knew comes we've in say growth Again, some rate this us I were throughout you was grow. we system. it one, say, how the our as rate, meaningful really we're experiences would for I'd when and year, a period, last about year, at with is think to of where through lot lapped of increases it couple price line we as particularly expecting very expected around with, large growth through our we

in different our And then lot which growing mix are Tripadvisor. particularly largest is of one channels And a rates being we've strategies, manage what between they at revenue as Viator market than Viator really second is. management of lower our for they before, secondly, profitability, talked a at

So bit the history. a that's of

I as a of forward, look couple think we things.

We the QX. pleased in we're reacceleration about are seeing pretty

clearly comp seeing good on also the an year, that of of is easier demand. Some activities we're Mid-East some last but

as we're feel by very year We share and that. to around brand lap move well we're as on et so the have cetera. opportunities work well, TA that work this year heartened ability as with strong and both the Viator doing we're our And capture we extension, into which at next optimization development, to optimization, the doing across the supply at ongoing product funnel is

meaningful So feel play with in line and the industry. and in our grow we ability to very these role strongly capture with -- a

Yes. And right think saw only thing I would in industry report the now, XX% growth I range. last is add rates the was I

we're a And that, we whole. is we well online my going you are And going as remarks. at positioned that to so assets think brought, faster faster online if as with prepared look discussed go to and in than OTAs than the really grow off-line I

for So really the we Viator. trajectory good feel growth about

last a markets. would target is at is that growth a from rate I than includes perspective, faster say And I which that the obviously Richard, growing APAC, think rate thing technical our

follow-up. maybe just And Understood. as a

to placed the your buy restrictions You maybe mentioned on ability back moment. that were at some shares being there

resolved? be on might entail? Just any what extra might time And that that when frame color any on

a ability. we any be consideration given But than respond of really limited let alternatives. can't to in our one participation, of reasons our variety to given strategic we me why we've one what want the just Obviously, the of that these variety And to a clear try ability. more details that time might reasons best be any the at limited Yes, to we there of of Richard, into my potential get ongoing is said. are of

than other that's for We any to comment can shares, it's market us I'm hope and needs, into And very for I opportunities you further helpful sure look to will to account factors. understand, you. our capital repurchase taking challenging this. conditions always

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

think high-level about XXXX and solidly what's doing just outlook on your think about app, about limited kind and the balancing Matt, specifically you're Viator? far testing then I you're growth way ability you of So If commentary Or and with improvement, like for in continue thinking margin seeing respect of how to to about pretty have your Tripadvisor double talk that? that to And experiences are right grow to of Is in rewards, about terms for digits. -- what sort the you it kind to to show of doing? things for so maybe profitability are that?

Yes.

to So let me What and going believe and I category about the was solid have we add said kick off I then can double-digit Mike growth. what on talking is that XXXX. was

thinking we opportunities and a about areas we making. leveraging supply profile. our acquisition And are identifying also this about and can We're really enhance international our We also category of financial profit in a we product believe different that way our think revenue that across and overall excited and that are very attack participation in the category can group we growth. the contribute and higher our really progress conversion data mix of and

the supply the have in demand things the all had to of past, the territories. and are where they those these the least And we lots capabilities, Tripadvisor ability haven't multiple where, which that to might in is expose the assets demand frankly, of want not we territories in

before move add geographically that. to Viator to anything So want we're excited do really adding on I about drive Mike, on Tripadvisor? you to categorically and supply

you there. belief in through and again, the But emphasize the again, a covered now, I well. No, these And category I that Naved. all investment Matt think are we're said working it and choices growth our around assets

Yes.

up I in pick year just But I day, a So this really doing progressing. Tripadvisor the with excited which than And very of think it looks the the just about we're did to said And think the do ago. you every when I what I've about continues I a app, past. how it couple asked app is times different and it app. about we're evolve,

to engagement is are We in use for continuing for doing proving think scale We trip that case to with it drive hotels of members. the context monetization. in-app planning booking and

there. of the to that a experiences of AI drive us doing ability to lot We're into drives course, and leverage And all hotels. of bookings both

of part rewards to a we've is the for free is long a our important engagement And a time, really Now going which strategy. a be important it's an membership said piece component what is of piece.

with It rewards. And discounting. launched to we've elements. enables different that to do first trying So something the travelers that's starts earn than

And because that's, responded cash to bookings. is I back we're hotel well earn think, that the has one they of allowing the really ecosystem travelers when reasons make

also ability have with trial. of associated We're of incentivize repeat. the booker course, we're seeing do And the levels offers and to time conversion that We testing first higher across to categories.

So about. test like of is to delivering, this exciting we we're is continue something are a really feel to And out. we scale and this going as and what part really that excited we feel learn we

the So app space from watch here.

The line Josey next the question comes from of Citi. of Ron

This for Ron. is Robert on

into expect elaborate bookings talk Viator's on growth in advertising you called First then direct the Viator's repeat strong to how traffic Viator. And quarter. Can you one you out on in to just know evolve perhaps heading I next is year? guys spend maybe trends?

address Mike. this. Yes. I'll It's

time, now, some which I repeat it to come we've quarters goes which those back has give great flywheel it and of been time, and talking users do what growth several consistent for listen, a think when excited really cheaper. get generally, then been And very the And is about So us. to becomes and cheaper new our to working fairly that over we're rate they to back experience for about. them user hard acquisition

was very think more we're which when your at around I have I our proves able perpetuate about excited and think flywheel. again, would question I we it direct consistent been that about, doing ROASes, we continue think that -- that cost, we're to, say to

second users we new So again, many we they that where what user and look we be question, we're and again, of repeat where acquisition and us repeat realize to will can. your acquire channels, different to doing. an come highest they're that for important part possibly again they We And the seeking. through as are please? users to have On me, or

XQ how advertising The spend into expect evolve into well? as just 'XX second question then Viator to and was you

I as And and what thinking Thanks. through back goes and look strategies of question, do to that. to a of we in we're 'XX, got Yes, lot have looking those at growth and plans choices so like. it it. profitability the Naved's

think -- our diverse I through I marketing we've think, strategies. good been driving very growth believe, year we strong this very

I users. to new of and acquire think part will will important an how repeat acquisition be traffic we continue

and be of TV, continuing do SEM, experiment with I more will think going forward. a mid-funnel we're going connected to et be of and bigger more we continue, and to like social, outside our cetera, think, that traditional part spend

We've to I of -- very tent where find teams. go lowest about the intent and guess, the have it. So continue to teams good we and we in those can the pockets got think doing possibly we'll is, feel I cost good

product, we're finding direct, flywheel, asked and particularly since that the It's only And where right? onto mean referenced the color real high because to going we're that I about about bookings, who focus. this intent, surface going and this the putting doubled the are XXXX. all add in our it's you right be making them customers is I referenced almost I to get I want progress fastest-growing app there for is

product the the doing because that's And is work.

into ability and we're that part the to our to the in starting way in the lean gets here of we drive supply making to then, course, feel continue the product to first So we that about we see lean work. into And will enhance that got we're need we that so growth And getting really do accelerated about how of flywheel rolling. quarter. think this to to progress the good continued a

Trevor The Barclays. Young next comes of question from

Great.

all? earlier First, trends tying meaningfully the impact around U.S. any some at to in in is large competitor a particular. category. How Or in just scale seems in that are of that questions impacting the to U.S. is here experiences Viator? like aiming at from that you seeing It

just and we Viator impact comments of order of How building next to to year beyond? forward. to and to one international international going think on how scale markets margin one, investments magnitude lever go as trajectory second inventory in potential your and flex help about should certain in then that's on And the there

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a of we're to doing And because I for think it's about 'XX early investment now. talk levels little work the

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the could is cities supply interesting. regions, that certain in not tell us biggest very inside building maybe users out Our

have interesting we opportunity. a As Matt said, very

you think base around something that's EMEA a supply interesting. already when think very acquiring we think region? about have think bookers we since I very there, do deeply large EMEA more in the I

so we investments And very focused and across supply. experiences around are

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question The comes of Jed of from next Kelly the line Oppenheimer.

Great.

comments, headwinds seeing mean, normalization? of things anything in kind you if for understand on then, I companies have Just help then just try And parse I going to you 'XX can to from SEO what's Brand have Google? growth you back in into to And called out that out the on by some higher are the are your seeing people investment us Tripadvisor, driven caught being some you're reaccelerate some of planning other Viator? experiences,

Yes, I'll start.

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in think the paid and with free travel I understood headwinds, serve. both it's well around the side

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app. address So get using and and repeating engage really coming and known can people those our we issues and them

feels that So really good.

opportunities opportunities there's experiences, are foothold supply U.S. ahead. are partnership. source operators BXB underpenetrated. And we and the for where our On There additional geographic we also categories market services beyond are through opportunities, are see multiple partners. course, There growth in paths There of

there, But how of enthusiasm opportunity a about positioned and to you, doing XXXX got is bring. lot now. I our So there what lot and of a we see planning we're tell and we're will excitement

comes The Lee James Mizuho. from next line question of the of

travel kind overall on trends is One of in general. broader

transition SCIT my stable progress question you you need investment You think commented you behavior in the arbitrage consumer booking economics your of engagement terms Matt, Can terms change that business? to stay. differences seeing on guys second of wondering more any conference I length maybe windows down? maybe little Are is was and shifting elaborate of I noted and in economics. from on, that you make bit in is by Europe Tripadvisor U.S., on the recently trading to and any And a geo, APAC? to

Thanks, James. right. All

very detailed You've given questions. respond and me to to excellent work real these

On the and macro, clearly overall remains leisure stable, healthy. intent travel demand is

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windows contracted these function think So are ticked domestic booking up things very have marginally. normalization. slightly. a windows we But slight, booking likely we see of very have International

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to subsiding traveler think recession I it's risk hard got inflation, normalizing in We've areas signals, the just concern well. as maybe to So seem be of is predict. some macro declining and these

So I picture. the think healthy. stable that's and feels It

we're driving strategy. in arbitrage our the asking, those ourselves Tripadvisor terms is a getting In It's from you strategy. thank clearly course, are to we are multiyear started we financial we that learn. scaling And in looking middle product to Brand economics shift for on a of and test then our we economics, of to and We to making engagement. impact. improvements remember scale position engagement what delivering by into are off to moved important progress And improvements, of and deliver and

parts that delivering financial of are Now strategy impact. the

monthly growth engagement. users. the seeing we're have members in our I not point. in We they contributing strategy by but quarter-to-quarter really are and and active good proof where returned improvements category delivering and the they're at And contributing, monthly or they're of app active has to the move we experiences users. parts we a needle and just good growth, rollout early think like scale been the that feel But other indirectly the stabilized

fast said, we further. in we where non-U.S. following roll as I product North as America, strategy can out in it's that progress see out rolling our work been and And we've

progress. to So scale. impatient it at that all we And like feels we're of in performance translate course, financial are into

The line of Kopelman Cowen. TD next Kevin the question of comes from

for on you're us about managing XXXX that and segment? give versus your growth thoughts thinking in Brand you how Could the early Tripadvisor margins

TheFork when obviously Yes, early, things. few a provide in very our I'll and our much through Mike. results step so take think when portfolio, talked XXXX, see nice we're it's working really still Viator a prospects as back, plans. we -- about. and I'll we about we we've a about Kevin, our as both consolidated think consolidated we for And growth think -- about growth

development. our the For for a And planning right is app. year getting a a which of TA, of we tool, great this important lot continuation And lot now. product and midpoint our this developing we of our big through are of strategy, revamping year did was very work a

All of we're these things excited very about.

we And so year, look things when basic two there's think we I think about at. next

as One, turns And we in our business, strategic on then And Matt there. can to these said, volatility have headwinds Tripadvisor. say app to and we would expect capabilities core it would drive be the expect our have just to there investment areas. in how what we experiences we excitement continued booking around would we acknowledge about think we structural investments. meta tremendous really or certainly meaning,

get It's and conviction. of really the And we into so expected really and We QX with of investment growth. pushed scale as right, way iterate which high why we to the right such, be the want to level that to reason really are. it's able to because continue want some balancing investment we XXXX

investments as to more is you we growth about think that. I investment quickly levels think is LTV-based possible. certainly, return so ambition some around as leaning around expense. are And think really that investment and more as upfront growth When It's into about, more faster to

speak the between think I together these don't how base that? we've very done know, the balance laid, do about we believe in us have good the to add in year, what are we we've things very you profitability. to done work foundation as years. about we've Matt, gives anything to to growth do a experimentation few are important to next this I think the But so that growth back putting we we think And and get

think I that's No, good.

at the call Google quarters? affected of is a have on that regards changes to TA just taken anything follow-up. Yes, have out maybe some place And there to with coming in the that may quick the comps

Yes.

Kevin, -- I through think to continued the don't and we're bunch not we continue this out a or They've really of Google new Google do does. anything think, what to year. I calling do updates algos incremental quarter.

into SEO out Our as really some and there. at a the content those, are connected teams that has particularly on deepest good And side. a most is brand the source TA brand, of

paid around continues the and it's serve. opportunity really a SEO, side. do But put on paid in We that. good to work continue an That's to to the headwind Google ads

On TA, our that cost, in with continue how about acquire we the the ROIs we disciplined think we been high-intent right at think side, how relevancy, paid but right? about to traffic We've way, very I spend. that ourselves we so for about particularly assets that and to thinking We'll manage as as to set just want the scaling continue do asset mentioned. that up growth we

remarks. I now turn question-and-answer for to This Matt would concludes it session. the like back CEO, over to Goldberg, closing

for us for safe. plans Thanks forward travel the Until again, year look and next everyone, year. closing then, We strong our joining to today. finalizing

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

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