TripAdvisor, Inc. Q3 FY2024 earnings call

• Matt Goldberg emphasized the strong execution across Tripadvisor Group, noting adjusted EBITDA of $122 million with all segments profitable. • In the experiences category, Viator achieved 10% revenue growth and 9% GBV growth, with progress in product enhancements, app bookings, and utilization of AI. • Brand Tripadvisor focused on transitioning away from the legacy hotel meta, with a 12% revenue decline but adjusted EBITDA above expectations due to timing of certain investments. Efforts included growing the mobile app, accelerating experiences growth, and rolling out membership-enhancing features. • TheFork delivered its best financial performance to date, with $49 million in revenue growth of 17% and adjusted EBITDA improving to $5 million or 10% of revenue.

For the third quarter, Brand Tripadvisor generated revenue of $255 million, a year-over-year decline of 12%. Its adjusted EBITDA was $87 million, accounting for 34% of revenue. Viator reported revenue of $270 million, marking a 10% year-over-year growth, with gross booking value (GBV) rising 9% to approximately $1.1 billion and adjusted EBITDA of $30 million, which was 11% of revenue. TheFork saw revenue reach $49 million, a 17% year-over-year increase, and its adjusted EBITDA was $5 million, representing 10% of revenue, a significant improvement from the prior year.

• Full-year 2024 consolidated revenue and adjusted EBITDA are in line with the previous August outlook. • For Q4, consolidated revenue growth is expected to sequentially accelerate to low to mid-single digits year-over-year. • Brand Tripadvisor is anticipated to have flat revenue declines, Viator to accelerate to mid-teens growth, and TheFork to mid-20s growth. • Consolidated adjusted EBITDA is expected to have a 100 basis points year-over-year deleverage.

• Uncertainty from macro-level factors with difficult-to-predict future impact. • Competition in the experiences category, such as large competitors aiming to scale significantly in the US.

Q: Ben Miller asked about Brand Trip margins and early learnings from bookable hotel inventory in the app.

A: Mike Noonan discussed Q3 margin drivers, mentioning outperformance across assets, normal quarterly accruals, and delayed marketing investments. Matt Goldberg shared positive signs in app hotel booking, noting higher click-through rates, higher revenue per booker, strong repeat propensity, and incremental experiences revenue from hotel bookers.

Q: Richard Clarke inquired about balancing growth and profitability in Viator and app rewards.

A: Mike Noonan discussed Viator's growth in line with the experiences category and Matt Goldberg talked about positive app rewards trends, including rewards, promotions, and higher conversion from member-only capabilities.

Q: Naved Khan asked about 2025 outlook for Viator and Tripadvisor app rewards.

A: Matt Goldberg and Mike Noonan discussed Viator's growth opportunities across product, supply, and international expansion, and Matt Goldberg elaborated on app rewards testing and incremental conversion.

Q: Trevor Young asked about US experiences competition and international inventory investment.

A: Matt Goldberg addressed competition impact as positive for the category and Mike Noonan discussed international inventory expansion, letting user data guide supply building.

Q: Jed Kelly asked about Brand Tripadvisor normalization and experiences investment.

A: Mike Noonan discussed normalization headwinds in Hotel meta and Matt Goldberg spoke about experiences growth opportunities with multiple paths ahead.

Q: James Lee asked about travel trends and transition to engagement economics.

A: Matt Goldberg discussed stable travel demand and progress in transitioning to engagement economics through product improvements and user engagement.

Q: Kevin Kopelman asked about 2025 Brand Tripadvisor and Google comps.

A: Mike Noonan talked about 2025 planning balancing investment and growth, and Matt Goldberg addressed Google impact on Brand Tripadvisor, noting teams' SEO optimization and disciplined paid ad spend.