TripAdvisor (TRIP) FY 2025 Conference May 29, 2025 08:00 AM ET Speaker0 Alright. Thanks for joining us for the ATM slot on day two of the forty first Bernstein Strategic Decisions Conference. If anyone doesn't know me, I'm Richard Clark. I'm the analyst who covers global hotels and and leisure or leisure at Bernstein. And delighted to have Matt Goldberg with me today, the, the president and CEO, of TripAdvisor. Welcome. Speaker1 Thanks for joining us today. Thank you, Richard. Speaker0 So, I mean, look, let ...

Core Insights - Tripadvisor's Summer Travel Index 2025 indicates a strong interest in travel among US travelers, with 63% expressing excitement for the upcoming season [1] - The report highlights a significant trend among Gen Z and Millennials, who are 38% more likely to travel both domestically and internationally compared to older generations [3][7] Travel Trends - Popular destinations for US travelers include Las Vegas and Cancun, with new trending locations such as Fort Walton Beach, Florida, and Punta Sam, Mexico [3][4] - The Caribbean is a key focus for international travel, with 51% of travelers citing relaxation as their primary reason for travel [5] Activity Preferences - Activities and experiences are prioritized by travelers, with 83% considering them an important part of their travel budget, and 89% planning up to five activities [7] - Gen Z is more inclined to book six or more activities compared to older generations, with 14% of Gen Z planning this versus an average of 9% for older groups [7] Planning and Booking Behavior - 57% of travelers plan to book activities ahead of their vacations, with Gen Z and Millennials being 78% more likely to do so compared to older generations [11] - Younger travelers prefer vacation rentals (30% average) over hotels (21% average for older generations) [12] Experience Categories - The top trending experience categories for 2025 include cultural and themed tours, outdoor activities, and cruises [11]

Core Insights - TripAdvisor (TRIP) reported first-quarter 2025 non-GAAP earnings of 14 cents per share, a 17% increase year over year, exceeding the Zacks Consensus Estimate by 180% [1] - Revenues for the quarter reached $398 million, a 1% year-over-year increase, also beating the Zacks Consensus Estimate by 2.31% [1] Revenue Breakdown - Brand Tripadvisor generated revenues of $219 million, accounting for 55% of total revenues, but saw an 8% decline year over year, surpassing the consensus estimate of $214 million [2] - Media and advertising revenues decreased by 6% year over year to $31 million [2] - Revenues from experiences and dining were $30 million, down 15% year over year [2] - Revenues from branded hotels decreased by 7% year over year to $148 million, with other revenues in this segment totaling $10 million, reflecting a 19% decline [3] - Viator's revenues totaled $156 million, representing 39.1% of total revenues, marking a 10% year-over-year increase and beating the Zacks Consensus Estimate of $155 million [3] - TheFork generated revenues of $46.4 million, accounting for 11.7% of total revenues, with a 12% year-over-year increase, exceeding the consensus mark of $46.04 million [4] Operating Results - TripAdvisor's cost of sales increased by 9% year over year to $27 million, expanding as a percentage of revenues by 50 basis points [5] - Marketing costs rose by 6% year over year to $172 million, with a 200 basis point increase as a percentage of revenues [5] - General and administrative costs decreased by 41% year over year to $17 million, contracting by 300 basis points as a percentage of revenues [5] - Technology costs totaled $22 million, a 4% year-over-year increase, with a 20 basis point expansion as a percentage of revenues [6] - The company reported an operating loss of $15 million, consistent with the loss from the previous year [6] - The total adjusted EBITDA margin was 11%, contracting by 80 basis points year over year [6] Balance Sheet & Cash Flow - As of March 31, 2025, cash and cash equivalents were $1.2 billion, up from $1.1 billion as of December 31, 2024 [7] - Long-term debt increased to $1.16 billion from $831 million in the previous quarter [7] - The company reported $102 million in cash from operations, a recovery from negative cash from operations of $2 million in the prior quarter [8] - Free cash flow for the first quarter was $83 million [8] Q2 2025 Guidance - TripAdvisor expects revenue growth for Q2 2025 to be between 5% and 8% [9] - For Viator, the company anticipates mid-teens growth in the number of experiences booked and revenue growth of approximately 9% to 11% [9] - Brand Tripadvisor expects a sequential improvement in revenues, projecting a flat to a 2% decline year over year [9] - For TheFork, revenues are expected to grow sequentially in the range of 26% to 28%, including approximately six percentage points of currency benefit at current rates [10] - The adjusted EBITDA margin for Q2 2025 is expected to be in the range of 16-18% [10]

Core Insights - Tripadvisor's stock rose over 12% following strong quarterly results, significantly outperforming the S&P 500 which increased by only 0.4% [1] Financial Performance - Tripadvisor reported a 1% year-over-year revenue increase to $398 million, with non-GAAP adjusted net income rising 26% to $21 million, or $0.14 per share [2] - Both revenue and adjusted net income exceeded analyst expectations, with consensus estimates at just under $389 million for revenue and $0.04 per share for adjusted net income [4] Brand Performance - The flagship Tripadvisor brand experienced an 8% revenue decline, generating $219 million, attributed to weaker hotel bookings and drops in media, advertising, experiences, and dining revenue [5] - Conversely, the Viator and TheFork brands showed strong growth, with Viator's sales increasing by 10% to $156 million and TheFork's improving by 12% to $46 million [5] Industry Outlook - Despite recent weakening in the overall travel and tourism industry, demand remains relatively strong, and Tripadvisor's positive quarterly performance is encouraging ahead of the peak travel season [6]

Q1 FY 2025 Investor Presentation May 2025 Tripadvisor Safe Harbor Statement Forward-Looking Statements. Our presentation today, including the slides contained herein, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts or guarantees of future performance and are based on management's assumptions and expectations, which are inherently subject to difficult to predict uncertainties, risks and changes in circ ...

Core Insights - TripAdvisor reported revenue of $398 million for the quarter ended March 2025, reflecting a year-over-year increase of 0.8% and an EPS of $0.14, up from $0.12 in the same quarter last year, with a revenue surprise of +2.31% over estimates [1] Revenue Breakdown - Revenue from the brand Tripadvisor was $219.40 million, slightly above the average estimate of $213.61 million, but down 8.6% year-over-year [4] - Viator generated $155.80 million, exceeding the estimated $155.43 million, marking a 10.5% increase compared to the previous year [4] - Intersegment eliminations reported at -$23.40 million, better than the estimated -$26.79 million, showing a 13.3% improvement year-over-year [4] - TheFork's revenue was $46.40 million, slightly above the estimate of $46.04 million, with a year-over-year increase of 13.2% [4] - Tripadvisor-branded hotels generated $148 million, surpassing the estimate of $135.20 million, but down 6.9% from the previous year [4] - Media and advertising revenue was $30.80 million, below the estimate of $33.66 million, reflecting a 6.7% decline year-over-year [4] - Experiences and dining revenue was $30.50 million, missing the estimate of $33.92 million, down 15.3% from the year-ago quarter [4] - Other revenue was $10.10 million, below the estimate of $10.73 million, representing a 15.8% decline year-over-year [4] Adjusted EBITDA Performance - Adjusted EBITDA for the brand Tripadvisor was $64.90 million, significantly higher than the estimated $49.62 million [4] - TheFork reported an adjusted EBITDA of -$3.50 million, better than the estimate of -$4.46 million [4] - Viator's adjusted EBITDA was -$17.60 million, also better than the estimated -$21.90 million [4] Stock Performance - TripAdvisor shares have returned +19.6% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $398 million, representing 1% growth or approximately 3% growth in constant currency, driven by marketplace businesses [8][23] - Consolidated adjusted EBITDA was $44 million, or 11% of revenue, exceeding expectations due to revenue outperformance and lower fixed costs [9][23] - Gross booking value (GBV) grew 10% or 12% in constant currency to approximately $1.1 billion [25] Business Line Data and Key Metrics Changes - Viator's revenue grew 10% to $156 million, with bookings growth of 15% and an adjusted EBITDA loss of $18 million, reflecting an 800 basis point margin improvement [10][25] - Brand TripAdvisor's revenue was $219 million, a decline of 8%, with adjusted EBITDA at $65 million or 30% of revenue, driven by favorable pricing in Hotel Meta [12][26] - The Fork's revenue grew 12% or 16% in constant currency to $46 million, with an adjusted EBITDA loss of $3 million, reflecting normal seasonality [16][30] Market Data and Key Metrics Changes - North America remained the largest source market for Viator, with healthy growth in bookings and stable booking windows year over year [24] - The US share of international travel from certain source markets, particularly Canada, has decreased, while domestic travel share has increased [19] Company Strategy and Development Direction - The company aims to be the most trusted source for travel and experiences, focusing on diversifying its portfolio and optimizing legacy offerings [6][7] - The strategy includes scaling marketplaces, particularly in experiences, and leveraging AI for personalized recommendations [8][17] - The completion of the merger with Liberty TripAdvisor Holdings has simplified the capital structure and is expected to enhance shareholder engagement and governance [6][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainty but remains confident in the long-term growth potential of travel and experiences [18][22] - Travel sentiment remains positive, with consumers planning leisure travel and prioritizing experiences in their budgets [21][72] - The company expects consolidated revenue growth of 5% to 7% for the full year, maintaining its guidance despite the uncertain environment [37] Other Important Information - The company raised $350 million in an add-on to its existing Term Loan B and plans to restart its share repurchase program [32][34] - The company is leveraging AI across various functions, including customer service, content moderation, and marketing [17][90] Q&A Session Summary Question: Guidance and macro uncertainty - Management is comfortable with the current guidance framework but acknowledges macro uncertainty as a reason for not adjusting guidance upward [39][42] Question: Impact of Liberty buyout - The merger simplifies the capital structure and allows for a clearer focus on value drivers and shareholder engagement [43][46] Question: Viator margins and marketing - Management believes Viator can achieve OTA-like margins through product-led growth and improved marketing efficiency [49][50] Question: Cross-border exposure and marketing adjustments - Viator is predominantly a North American booker base, making it less susceptible to international trade pressures [54][55] Question: Google auction changes - Management is actively involved in optimizing ad placements and formats in response to Google's changes [59][60] Question: Average booking value decline - The decline in average booking value is primarily due to a higher mix of lower-priced third-party bookings [61][62] Question: Travel spending in a slower consumer environment - Management notes that consumers are defending travel spending, particularly on experiences, even in a slowing economy [70][72] Question: Pricing trends in Hotel Meta - Improvements in user experience have led to pricing uplifts in Hotel Meta, contributing to better monetization [73][76] Question: Viator marketing strategy - The marketing strategy focuses on utilizing paid channels effectively and enhancing user experience to drive repeat business [95][96] Question: Share count post-merger - Post-transaction, the expected diluted share count is approximately 118 million shares [98]

TripAdvisor (TRIP) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Angela White - VP of IRMatt Goldberg - President and Chief Executive OfficerMike Noonan - Chief Financial OfficerRichard Clarke - Managing DirectorBenjamin Miller - VP - Global Investment ResearchNaved Khan - Managing Director - Equity ResearchJed Kelly - Managing Director - Equity ResearchKevin Kopelman - Managing Director - Equity ResearchChristopher Suchecki - Equity Research Senior Associate Conference Call Participan ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $398 million, representing a 1% growth or approximately 3% growth in constant currency, driven by marketplace businesses [6][20] - Consolidated adjusted EBITDA was $44 million, or 11% of revenue, exceeding expectations due to revenue outperformance and lower fixed costs [20][28] - Gross booking value (GBV) grew 10% or 12% in constant currency to approximately $1.1 billion [23] Business Line Data and Key Metrics Changes - Viator's revenue grew 10% to $156 million, with bookings growth of 15% [23][24] - Brand TripAdvisor's revenue was $219 million, a decline of 8%, but adjusted EBITDA was $65 million, representing 30% of revenue [10][24] - The Fork's revenue grew 12% or 16% in constant currency to $46 million, with a significant increase in B2B software subscriptions [15][27] Market Data and Key Metrics Changes - North America remained the largest source market for Viator, with stable booking windows year over year [22] - The US share of international travel from certain source markets, particularly Canada, is down, while domestic travel share is up [18] Company Strategy and Development Direction - The company aims to be the most trusted source for travel and experiences, focusing on diversifying its portfolio and optimizing legacy offerings [5][6] - There is a strong emphasis on leveraging AI to enhance user experience and operational efficiency across all segments [16][17] - The merger with Liberty TripAdvisor Holdings has simplified the capital structure and is expected to unlock new opportunities for growth and shareholder engagement [5][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainties but remains confident in the long-term growth potential of travel and experiences [19][20] - Travel sentiment remains positive, with consumers planning leisure travel and prioritizing experiences in their budgets [19][68] - The company is closely monitoring early signs of pressure in average booking value and cancellation rates [18][20] Other Important Information - The company raised $350 million in an add-on to its existing Term Loan B and expects to use the proceeds to pay down convertible notes due in 2026 [29][30] - The company plans to restart its share repurchase program with approximately $200 million remaining under its existing authorization [31] Q&A Session Summary Question: Guidance and macro uncertainty - Management is comfortable with the current guidance framework but acknowledges macro uncertainty as a reason for not adjusting guidance upward [39][41] Question: Impact of Liberty buyout - The completion of the Liberty buyout simplifies the capital structure and allows for a clearer focus on value drivers [42][43] Question: Viator margins and marketing - Management believes Viator can achieve OTA-like margins through product-led growth and improved marketing efficiency [48][49] Question: Cross-border exposure and marketing adjustments - Viator is predominantly a North American booker base, making it less susceptible to international trade route pressures [52] Question: Google auction changes - Management is actively involved in optimizing ad placements and formats on Google, viewing it as an opportunity for incremental traffic [58] Question: Average booking value decline - The decline in average booking value is primarily due to a higher mix of third-party bookings, which generally have lower price points [59][60] Question: Travel spending in a slower consumer environment - Historically, consumers defend travel spending, particularly on experiences, even during economic slowdowns [66][68] Question: Hotel Meta pricing improvement - Improvements in user experience and content have driven pricing uplifts in Hotel Meta, contributing to better monetization [70][72] Question: Viator marketing strategy - The marketing strategy for Viator remains focused on utilizing paid channels effectively to convert demand [90][92]

Core Insights - TripAdvisor (TRIP) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, and showing an increase from $0.12 per share a year ago, resulting in an earnings surprise of 180% [1] - The company generated revenues of $398 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.31% and reflecting a slight increase from $395 million year-over-year [2] - TripAdvisor has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The immediate price movement of TripAdvisor's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $513.15 million, while the estimate for the current fiscal year is $1.37 on revenues of $1.89 billion [7] Industry Context - The Internet - Commerce industry, to which TripAdvisor belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]