Market Overview - US stocks experienced their worst week since November, with major tech companies losing a combined market cap of one trillion dollars since their earnings results [4] - Dow futures indicate a drop of about 72 points, while S&P futures suggest a decline of a third of a percent, and NASDAQ futures are under the most pressure, pointing to a drop of about 0.7% at the open [2][3] Technology Sector Insights - The technology sector, particularly software stocks, has seen hundreds of billions of dollars wiped off their value, leading to discussions about a potential "SAS apocalypse" [5][6] - Historical transitions in technology have shown that while many companies fail, others emerge stronger, suggesting a similar outcome may occur in the current AI-driven market [8][10] AI Disruption - AI is viewed as a significant disruptor across various industries, including finance, with expectations of increased productivity and efficiency [12][15] - Companies that effectively integrate AI into their operations are likely to thrive, while those that resist change may struggle [19][20] Investment Opportunities - Software stocks are currently trading at approximately three times revenue, down from historical highs, indicating potential investment opportunities, though not all companies will succeed [40][41] - Specific companies like Oracle and Digital Ocean are highlighted as potential beneficiaries of AI advancements [41] IPO Market Outlook - The IPO market is expected to see more activity in 2026 than in 2025, with a broader range of opportunities beyond just tech [53][55] - Proper pricing and understanding of market demands are crucial for successful IPOs, as evidenced by recent cancellations and postponements [55] Company-Specific Developments - Warner Brothers Discovery is in discussions with Paramount regarding a potential deal, which may reignite a bidding war [58] - Trip Advisor is facing pressure from activist investor Starboard, which is pushing for a majority slate on the board [59] - Masimo's shares surged following news of a nearly $10 billion acquisition by Daher, despite facing challenges in recent years [61]

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]

Financial Data and Key Metrics Changes - Group revenue grew 7% or 5% in constant currency to $529 million, with adjusted EBITDA of $107 million or 20% of revenue exceeding expectations [5][23] - Gross booking value (GBV) grew 13% or 10% on a constant currency basis to approximately $1.3 billion [24] - Consolidated adjusted EBITDA margin was 20%, with Viator's adjusted EBITDA margin improving nearly 800 basis points to 12% of revenue [26][29] Business Line Data and Key Metrics Changes - Experiences booked grew 15%, with Viator's adjusted EBITDA more than tripling [14] - The Fork's revenue grew 28% or 22% in constant currency to $54 million, with adjusted EBITDA margin more than doubling year over year [16][30] - Brand TripAdvisor's revenue was $242 million, reflecting a decline of 3%, with adjusted EBITDA of $66 million or 27% of revenue [19][27] Market Data and Key Metrics Changes - North America showed stable volume growth, while Europe experienced accelerating growth [24] - App bookings remained strong, outpacing other channels, contributing to share gain in the segment's total booking mix [26] Company Strategy and Development Direction - The company is focusing on experiences as the fastest-growing category in travel, leveraging its trusted brands and proprietary data [7][10] - There is a strategic shift towards deeper coordination between brands to optimize growth and efficiency [8][26] - AI is being integrated into products to enhance user experience and operational efficiency [11][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds in free traffic affecting Brand TripAdvisor but remains optimistic about growth in experiences [42][66] - The company expects consolidated revenue growth of 4% to 6% in Q3 and maintains a full-year guidance of 5% to 7% revenue growth [35][37] Other Important Information - The company repurchased 2.8 million shares at an average price of $14.22 per share for a total of $40 million [33] - Total cash and cash equivalents were approximately $1.2 billion, with plans to use a portion for share repurchases [33] Q&A Session Summary Question: Comments on free traffic headwinds and stabilization for Brand TripAdvisor - Management acknowledged persistent free traffic headwinds but remains focused on improving operational efficiencies and growth strategies [40][42] Question: Mix between third-party and direct bookings for experiences - The majority of revenue comes from the Viator point of sale, with third-party bookings being profitable and incremental [50][49] Question: Confidence in revenue growth reacceleration in Q4 - Management expressed confidence due to healthy booking volumes and early test results from coordinated efforts between brands [53][54]

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]

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% [25][26] - Brand TripAdvisor's revenue was $219 million, a decline of 8%, but adjusted EBITDA was $65 million, or 30% of revenue, exceeding expectations [12][26] - The Fork's revenue grew 12% or 16% in constant currency to $46 million, driven by B2B software offerings [16][30] Market Data and Key Metrics Changes - North America remained the largest source market for Viator, with healthy growth in bookings [24] - The US share of international travel from certain source markets, particularly Canada, is down, while domestic travel share is up [19][20] 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 merger with Liberty TripAdvisor Holdings has simplified the capital structure and aligned the company more closely with shareholders [6][44] 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][70] - The company expects consolidated revenue growth of 5% to 7% for the full year, maintaining guidance despite macro uncertainties [38] 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] - Adjusted EBITDA margins are expected to improve across segments, with Viator targeting mid-teens growth in revenue [36][37] Q&A Session Summary Question: Guidance and macro uncertainty - Management is comfortable with the current guidance framework despite macro uncertainties, expecting continued strong unit growth at Viator [40][42] Question: Impact of Liberty buyout - The merger has simplified the capital structure and allowed for a clearer focus on value drivers across the business [44][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 [60][61] 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 [62][63] Question: Travel spending in a slower consumer environment - Historical trends suggest consumers prioritize travel and experiences even during economic slowdowns [70][72] Question: Pricing improvement in Hotel Meta - Improvements in user experience and content have driven pricing uplifts in Hotel Meta, contributing to revenue growth [73][75] Question: Viator marketing strategy - The marketing strategy focuses on utilizing paid channels effectively to attract and retain customers [93][95] Question: Diluted share count post-merger - Post-transaction, the diluted share count is expected to be approximately 118 million shares [97]

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]