Group 1 - Tripadvisor, Inc. announced a change in participation date for a conference where CEO Matt Goldberg will engage in a fireside chat [1] - The Goldman Sachs Communacopia + Technology Conference is now scheduled for 1:45 p.m. PT on September 8, 2025, in San Francisco [1] - A live webcast of the event will be available on the Investor Relations website, with a replay also accessible [1] Group 2 - Tripadvisor, Inc. aims to be the world's most trusted source for travel and experiences, connecting people to shareable experiences [2] - The company utilizes its brands, technology, and capabilities to connect a global audience with partners through rich content and travel guidance [2] - Tripadvisor, Inc. includes a portfolio of travel brands such as Tripadvisor, Viator, and TheFork [2]

Core Insights - Tripadvisor reported a significant earnings beat in Q2 2025, with non-GAAP earnings per share at $0.46, surpassing the consensus estimate of $0.41 [1] - Revenue (GAAP) reached $529 million, reflecting a 7% year-over-year increase, although slightly below projections [1][5] - The company is transitioning towards higher-growth, technology-enabled business lines while focusing on cost control and capital efficiency [1][12] Financial Performance - Non-GAAP EPS increased by 18% year-over-year from $0.39 in Q2 2024 to $0.46 in Q2 2025 [2] - GAAP revenue of $529 million was slightly below the estimate of $529.99 million but showed a 7% increase from $497 million in Q2 2024 [2] - Net income (GAAP) rose by 50% to $36 million compared to $24 million in Q2 2024 [2] - Adjusted EBITDA (non-GAAP) increased by 11% year-over-year to $107 million [2] - Free cash flow (non-GAAP) surged by 378% to $177 million from $37 million a year earlier [2][7] Business Segments - Tripadvisor operates three main segments: Brand Tripadvisor, Viator, and TheFork [3] - Viator's GAAP revenue grew by 11% to $270 million, with approximately 6.2 million experiences booked, marking a 15% increase [5] - TheFork's GAAP revenue increased by 28% to $54 million, benefiting from significant margin expansion [5] - The Brand Tripadvisor segment experienced a 3% revenue decline to $242 million, now accounting for approximately 45.7% of total revenue [6] Strategic Focus - The company is focusing on growing its marketplace segments while managing risks associated with its legacy advertising business [4][9] - Tripadvisor's strategy includes leveraging its extensive user review base to enhance organic engagement and market position [4] - Management is investing in technology, particularly AI, to improve product offerings and user experience [8][10] Future Guidance - Tripadvisor maintained its FY2025 revenue growth guidance of 5% to 7% and an adjusted EBITDA margin of 16% to 18% [12] - The Brand Tripadvisor segment is expected to stabilize but will continue to face challenges [12] - Investors will be monitoring the company's ability to sustain growth in marketplace businesses and reduce reliance on key partners [13]

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 Performance - Tripadvisor achieved 11% year-over-year revenue growth in Q2 2025, driven by reinvestment of cost savings in top-line growth initiatives[9] - The Last Twelve Months (LTM) ending Q2 2025 revenue was $882 million for Brand Tripadvisor, $920 million for Viator, and $198 million for TheFork[12] - LTM Adjusted EBITDA ending Q2 2025 was $65 million (7% margin) for Brand Tripadvisor, $270 million (29% margin) for Viator, and $11 million (6% margin) for TheFork[12] - The company's liquidity position as of June 30, 2025, was $1708 million, including $341 million from a term loan, offset by $411 million for stock repurchase[25, 27] Segment Highlights - Viator's Total Gross Booking Value (GBV) has a Compound Annual Growth Rate (CAGR) of approximately 23% from 2019 to 2024, reaching over $4 billion in FY2024[39, 42] - Brand Tripadvisor has approximately 300 million monthly unique users and over 100 million active members with over 1 billion reviews and opinions[53] - TheFork operates in 11 countries with over 55,000 bookable restaurants, with over 75% of bookings made via mobile app and from repeat diners[64] Strategic Focus - Tripadvisor is focused on an engagement-led strategy through product delivery, shifting from a legacy model to scaling engagement-led growth opportunities[9] - Brand Tripadvisor is focusing on engagement and delivering world-class guidance products to fuel diverse monetization paths[66] - Viator is reinforcing its leadership position in experiences by investing in awareness, enhanced products, and repeat bookings to capture more market share[66] - TheFork aims to drive profitable revenue growth by delivering value to both diners and restaurants as the leader in the European dining market[66]

Core Insights - Tripadvisor, Inc. will release its second quarter 2025 financial results on August 7, 2025, at 4:05 p.m. ET [1] - A conference call will follow at 4:30 p.m. ET on the same day to discuss the financial results, which will be available for live streaming and replay for three months [2] Company Overview - Tripadvisor, Inc. aims to be the world's most trusted source for travel and experiences, connecting people to share experiences through its brands and technology [3] - The company operates a portfolio of travel brands, including Tripadvisor, Viator, and TheFork, focusing on rich content, travel guidance, and two-sided marketplaces for various travel categories [3]

Company Overview - Tripadvisor is an online travel company operating through three segments: Brand Tripadvisor, Viator, and TheFork, connecting travelers with partners through content and marketplaces for various travel categories [1] - Tripadvisor.com is the largest travel guidance platform globally, with 300 million monthly unique visitors, over a billion reviews, and $900 million in revenue [4] - Viator is a rapidly growing booking platform for tours, expected to generate over $900 million in revenue this year [4] - TheFork is the largest online restaurant reservation marketplace in Europe, projected to generate over $200 million in revenue this year [4] Valuation and Market Position - Tripadvisor trades at a significant discount, around seven times EBITDA, compared to low to mid-teens for peers and higher historical multiples for itself [4] - The decline in Tripadvisor's core business revenue by 7.95% from 2023 to 2024 is a contributing factor to its current valuation [5] - Despite the decline, Viator and TheFork are growing, with Viator matching Tripadvisor's revenue and TheFork achieving high single-digit growth [5] Activist Involvement - Starboard Value has acquired a 9.01% stake in Tripadvisor and plans to engage with management regarding value creation opportunities [2][3][6] - Starboard's investment strategy may include maintaining the status quo if revenue growth resumes, focusing on operational efficiency, or exploring strategic sales of segments like TheFork [7] - TheFork could be valued at approximately $1 billion based on a five-times revenue multiple, representing about 40% of Tripadvisor's total enterprise value [7] Governance and Shareholder Sentiment - Tripadvisor's governance issues, including controlled ownership and weak shareholder protections, have historically impacted its valuation [5] - Recent shareholder discontent was evident at the annual meeting, with three directors receiving significant withhold votes, although a proxy fight is not anticipated [9] - Starboard's engagement may lead to improved board representation and a partnership approach rather than a confrontational stance [9]

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]

Core Points - Tripadvisor, Inc. has completed its merger with Liberty TripAdvisor Holdings, Inc., acquiring Liberty TripAdvisor and its shares [1] - The total transaction value of the merger is approximately $430 million, based on Tripadvisor's closing share price of $12.82 on April 28, 2025 [2] - The merger resulted in a simplification of Tripadvisor's capital structure, eliminating controlling stockholders and reducing the outstanding share count by approximately 23.8 million shares [3] - Tripadvisor has also finalized its redomestication from Delaware to Nevada, a move approved by stockholders in June 2023 [4] Financial Details - Liberty TripAdvisor's Series A and Series B Common Stock were converted into cash payments totaling approximately $20 million [2] - The 8% Series A Cumulative Redeemable Preferred Stock was converted into approximately $42.5 million in cash and 3,037,959 shares of Tripadvisor common stock [2] - Liberty TripAdvisor's Exchangeable Senior Debentures, amounting to approximately $326 million, were repaid, with an additional $4 million to be redeemed within 30 days post-close [2]