Tripadvisor (TRIP) Q4 2025 Earnings Transcript

Core Insights - The company is experiencing rapid growth and diversifying its revenue streams, particularly in the dining marketplace, which is seen as a valuable long-term growth opportunity [1][2] - A strategic review is underway for The Fork, with potential alternatives being explored to enhance shareholder value while investing in the Experiences strategy [1][2] - The shift towards marketplace businesses is changing the revenue and profit profile, with expectations for marketplace revenue to represent two-thirds of total group revenue by 2026 [3] Financial Performance - In 2025, the company achieved record revenue of $1.9 billion, with Experiences growing by 10% and The Fork by 22%, offsetting declines in legacy segments [4][20] - Adjusted EBITDA for the group was $319 million, representing 17% of revenue, with a focus on profitable growth in Experiences and The Fork [4][21] - The Fork's revenue in Q4 was $57 million, reflecting 18% growth, while full-year revenue reached $221 million, a 22% increase [30][31] Market Strategy - The company aims to solidify its leadership in the Experiences market, leveraging its assets for an AI-enabled future and simplifying legacy offerings [2][5] - The Experiences segment is expected to contribute over 50% of total revenue by 2026, with a focus on improving unit economics and customer loyalty [3][39] - The company is enhancing its marketing efficiency and expanding its supply base to attract new customers, with a significant increase in bookings and gross booking value (GBV) [7][11] AI and Innovation - The company launched an AI-native MVP to enhance user experience and drive personalization, with early data indicating improved engagement and monetization [14][70] - Partnerships with AI platforms are being explored to leverage user-generated content (UGC) and improve conversion rates [15][74] - The focus on AI is expected to drive significant growth in the Experiences market, with a commitment to continuous innovation [13][70] Future Outlook - For 2026, the company anticipates modest consolidated revenue growth, with marketplace businesses expected to represent approximately two-thirds of total revenue [38][39] - Experiences revenue is projected to grow in the low teens, while The Fork is expected to see growth in the low to mid-teens [40][41] - The company is managing its Hotels and Other segment for profitability, anticipating revenue declines due to SEO traffic headwinds [41][42]