TripAdvisor, Inc. Q4 FY2024 earnings call

Viator - Leveraged scale to grow market share, GBV nearly $4.2B in 2024. Revenue grew 14% in 2024 and 16% in Q4. Direct booking volume on Viator point-of-sale grew nearly 30% full year. Focused on driving marketing efficiency, investing in consumer-facing product, mobile app was fastest-growing channel with booking volume up over 80% full year. Supply side: number of operators on platform grew over 15%. Third-party partner revenue grew more than twice the rate of the overall segment. ### Brand Tripadvisor - Made progress on engagement-led strategy. Monthly active users stabilized and grew in core geographies. Global monthly active members grew mid-single digits in 2024. Product changes, enhancements, and new features drove engagement. Focused on accelerating experiences growth across Tripadvisor-branded services, driving mobile adoption, and differentiating/expanding membership offering. ### TheFork - Grew revenue 18% to $181 million and delivered full-year profitability for the first time, with adjusted EBITDA improvement of $19 million over last year. Positioned as leading brand in European dining market, serving over 70 million diners and driving nearly €2 billion of restaurant spend in 2024.

In Q4, consolidated revenue grew 5% to $411 million. Viator segment: revenue grew 16% to $186 million, GBV grew 17% to approximately $840 million. Brand Tripadvisor segment: revenue was $204 million, a decline of 6%. TheFork segment: revenue was $48 million or 23% growth. For the full year, revenue reached $1.8 billion. Viator and TheFork together contributed 56% of Group revenue, up from prior years. Viator's GBV reached nearly $4.2 billion in 2024. TheFork grew revenue 18% to $181 million and achieved full-year profitability for the first time.

For 2025, expected consolidated revenue growth of 5% to 7% and adjusted EBITDA margin of 16% to 18%. Viator expects mid- to high-teens booking volume growth and low to mid-teens revenue growth (incorporating ~2 points FX headwinds). Brand Tripadvisor expects an improvement year-over-year to low single-digit revenue declines, stronger in second half. TheFork expects revenue growth in the low double digits (incorporating ~5 points FX headwinds, stable on constant currency). Q1 2025 guidance: consolidated revenue flat to low single-digit decline (incorporating currency and holiday timing headwinds of ~2 points growth). Consolidated adjusted EBITDA margins ~5% to 7% of revenue. Viator expects booking volume growth 14% to 16% and revenue growth 9% to 11% (incorporating holiday timing and FX headwinds). Brand Tripadvisor expects revenue decline in low double digits. TheFork expects revenue growth in low teens (incorporating FX and calendar timing headwinds).

Bullet points: - FX fluctuations, particularly impact on euro-denominated business affecting Viator's revenue. - Market competition, such as Airbnb entering the experiences category and potential impact on market share. - Uncertainty in the broader advertising market affecting Brand Tripadvisor's media and advertising revenue.

Q: Stephen Ju asked about Viator's supply growth and conversion rates.

A: Matt Goldberg responded that Viator is focused on product improvements like seamless product matching, expanding and organizing catalog, intuitive UX, improving app, enhancing supply catalog in various geographies, improving operating experience for operators, and leveraging AI.

Q: Naved Khan asked about Airbnb entering the category and Viator margins.

A: Matt Goldberg said they see the category as a big opportunity and believe Viator's position with large scale supply, Tripadvisor's large traveler audience, and comprehensive approach gives them an advantage. Mike Noonan said Viator's adjusted EBITDA guide was about nearly doubling in dollar amount with margin expansion expected.

Q: Richard Clarke asked about membership position.

A: Matt Goldberg said membership is growing, with mid-single digit growth in 2024 accelerating, investing in the space, leveraging AI, funding rewards, and planning to formally launch with more features.

Q: Trevor Young asked about FX impact on Viator and AI partnerships.

A: Mike Noonan explained FX impact is mainly from euro-denominated business with US travelers to Europe. Matt Goldberg talked about AI partnerships with perplexity and OpenAI, leveraging assets for AI-first funnel, high intent traffic, and long-term positioning.

Q: Dae Lee asked about membership vs previous offering and Brand Tripadvisor returning to growth.

A: Matt Goldberg said current membership is about evolving products and content for logged-in users, leveraging cross-category booking. Mike Noonan discussed key drivers for Brand Tripadvisor's 2026 growth including stabilizing hotel meta, scaling hotel commerce, accelerating experiences growth, and lapping legacy business headwinds.

Q: James Lee asked about hotel meta search and Viator B2B strategy.

A: Matt Goldberg said meta continues to be relevant with product work driving price advantage, not a future growth driver but part of integrated strategy. Viator's B2B business is growing, incremental, profitable, and they can enhance relationships and add new partners.