Core Insights - 13D Management LLC has initiated a new position in Tripadvisor, acquiring 300,000 shares valued at approximately $4.88 million as of September 30, 2025 [2][3][7] - This new stake represents approximately 4.68% of 13D Management's reportable assets under management (AUM) and is outside the fund's top five holdings [4][7] Company Overview - Tripadvisor has a market capitalization of $1.73 billion, with a trailing twelve months (TTM) revenue of $1.83 billion and a net income of $5 million [5] - As of November 13, 2025, Tripadvisor shares were priced at $14.78, reflecting a 3% increase over the past year, although it lags the S&P 500 by 9 percentage points [4] Business Model - Tripadvisor operates as a leading online travel platform, offering a wide range of services including hotel bookings, vacation rentals, restaurant reservations, and experiences through various brands such as TripAdvisor, Viator, and TheFork [9][10] - The company leverages its scale and technology to connect millions of travelers with accommodations, experiences, and dining options globally, creating a comprehensive travel ecosystem that drives engagement and monetization opportunities [9]

Tripadvisor, Inc. (NASDAQ:TRIP) is one of the best breakout stocks to invest in. On November 11, Bernstein reiterated an Outperform rating on the stock, impressed by Tripadvisor, Inc. (NASDAQ:TRIP) ‘s integration plan. Likewise, the research firm reiterated a $20 price target, representing a 30% upside potential. Bernstein Affirms Outperform Stance as Tripadvisor, Inc. (TRIP) Downplays Viator Spinoff Calls The company has been under pressure from an activist investor to spin off Viator, an online marketp ...

Core Insights - The article discusses the investment potential of TRIP, highlighting a beneficial long position in its shares, indicating confidence in the company's future performance [1]. Company Analysis - TRIP has shown resilience in its market position, suggesting a favorable outlook for investors [1]. - The analysis emphasizes the importance of conducting thorough research before making investment decisions related to TRIP [2]. Industry Context - The broader industry trends impacting TRIP are not explicitly detailed in the provided content, but the mention of investment risks implies a dynamic market environment [2].

Financial Performance & Strategic Shift - Tripadvisor's LTM 3Q25 revenue mix shows Experiences contributing $906 million with 11% year-over-year growth, Hotels & Other contributing $899 million with a 7% year-over-year decline, and TheFork contributing $212 million with 24% year-over-year growth[10] - LTM 3Q25 Adjusted EBITDA margins were 9% for Experiences ($84 million), 27% for Hotels & Other ($242 million), and 9% for TheFork ($19 million)[10] - The company is undergoing an operating model reset, focusing on Experiences-led strategy and aiming for at least $85 million in annualized gross cost savings, largely delivered throughout 2026 and fully realized in 2027[13] - In Q3 2025, Tripadvisor's revenue was $294 million, a 9% increase, with an Adjusted EBITDA of $50 million, representing 17% of revenue[23] Segment Highlights - Viator's booked experiences grew by 18% in Q3 2025[23] - Brand Tripadvisor's revenue declined by 8% to $235 million, with an Adjusted EBITDA of $59 million, representing 25% of revenue in Q3 2025[23] - TheFork's revenue grew by 28% (20% in constant currency) to $63 million, with an Adjusted EBITDA of $14 million, representing 22% of revenue in Q3 2025[23] Business Focus & Market Position - Viator has over 400,000 bookable experiences, approximately 4 times more than its closest competitor, and works with over 65,000 operators[47] - Brand Tripadvisor has approximately 300 million monthly unique users and over 100 million active members, with over 1 billion reviews and opinions across 43 global markets[59] - TheFork operates in 11 countries with over 55,000 bookable restaurants, with over 20 million ratings, reviews, and photos, and 75%+ bookings via mobile app and from repeat diners[69] Liquidity - The company's liquidity position as of September 30, 2025, was $1.714 billion[31, 32]

Core Insights - Tripadvisor Group is planning to merge its Tripadvisor and Viator businesses due to pressure from activist investors to consider selling the entire company or its other division, TheFork [1][3] - The merger is expected to result in significant layoffs among the engineering staff [2] - Tripadvisor's revenue for Q2 was reported at $529 million, reflecting a 7% year-over-year increase [3][4] Business Strategy - CEO Matt Goldberg emphasized the company's disciplined investment decisions and the shift towards higher growth opportunities in travel [5] - Tripadvisor has been exploring potential acquisition interests since February 2024, with discussions authorized by its board [5] - The company is set to release its Q3 financial results on November 6 [6] Partnerships and Technology - Tripadvisor partnered with AI startup Perplexity to enhance its travel resources with advanced search capabilities [6] - The company was named an external data and intelligence partner for Microsoft Azure AI Agent Service, integrating its extensive reviews and contributions into Azure's AI capabilities [7]

Core Viewpoint - Starboard Value CEO Jeff Smith suggests that Tripadvisor should consider selling its restaurant booking platform TheFork and possibly the entire company to enhance revenue growth and user experience [1][2]. Group 1: Business Segments - Tripadvisor operates three main businesses: hotel reviews, tour bookings through Viator, and restaurant reservations via TheFork [1]. - TheFork is identified as the most easily separable and least-integrated business, making it a prime candidate for sale at an attractive multiple [2]. Group 2: Shareholder Engagement - Starboard has been engaging with Tripadvisor for several weeks and has built a 9% stake in the company, advocating for changes to unlock value [3]. - Tripadvisor's management acknowledges the importance of constructive engagement with shareholders and is committed to driving long-term value [3]. Group 3: Growth Opportunities - Smith highlights that the booking experiences segment, represented by Viator, is the fastest-growing area in the travel industry, indicating potential for significant performance improvement [4]. - There are substantial cost-saving opportunities at Tripadvisor, especially if revenue growth does not accelerate [4].

Group 1 - Tripadvisor, Inc. will release its third quarter 2025 financial results on November 6, 2025, at 7:05 a.m. ET [1] - A conference call to discuss the financial results will take place on the same day at 8:30 a.m. ET, which will be webcast live [2] - The company aims to be the world's most trusted source for travel and experiences, leveraging its brands and technology to connect audiences with partners [3]

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]