TripAdvisor(TRIP)2025-02-20 19:08Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenue grew 5% to $411 million, exceeding expectations [6][37] - Adjusted EBITDA was $73 million, representing 18% of revenue, higher than expectations due to performance at both Brand Tripadvisor and Viator [7][37] - For the full year, revenue reached $1.8 billion, with adjusted EBITDA at $339 million, reflecting a modest deleverage of less than 50 basis points [51][52] Business Line Data and Key Metrics Changes - Viator's revenue grew 16% to $186 million in Q4, with gross bookings value (GBV) increasing 17% to approximately $840 million [37][38] - TheFork segment revenue grew 23% to $48 million, driven by strong booking volumes and pricing [45] - Brand Tripadvisor's revenue declined 6% to $204 million, with branded hotels revenue down 7% [40][41] Market Data and Key Metrics Changes - Global monthly active members grew mid-single digits in 2024, with U.S. growth at double the global rate [12] - Viator's GBV reached nearly $4.2 billion in 2024, reflecting strong demand and market share growth [9] - TheFork served over 70 million diners, driving nearly €2 billion of restaurant spend in 2024 [13] Company Strategy and Development Direction - The company aims to drive revenue and profit growth primarily from growth marketplaces at Viator and TheFork, while stabilizing Brand Tripadvisor [14][60] - The experiences category is positioned as essential to travel plans, with a focus on enhancing competitive advantage through a holistic approach [15][16] - Investments in product, user experience, and data are prioritized to improve conversion and loyalty [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2025 with encouraging momentum and a clear path to sustainable revenue and EBITDA growth [14][56] - The company anticipates that experiences revenue will become the largest contributor to Group revenue for the first time in 2025 [15] - Management acknowledged the challenges posed by legacy offerings but emphasized ongoing transformation efforts to stabilize and improve financial profiles [21][22] Other Important Information - The company plans to repurchase a significant portion of shares through an agreement with its controlling shareholder, expected to close in Q2 2025 [33][54] - TheFork achieved full-year profitability for the first time, marking a significant milestone in its financial trajectory [13][46] - The company is leveraging investments in data and AI to enhance its market position and create new opportunities [30][31] Q&A Session Summary Question: Acceleration in Viator experiences growth - Management highlighted efforts to improve product matching and marketing efficiencies to drive growth in Viator experiences [66][70] Question: Impact of Airbnb's entry into experiences - Management acknowledged the opportunity for category growth and emphasized Viator's competitive advantages in supply and scale [78][80] Question: Membership growth and funding of rewards - Management reported over 130 million members, with rewards funded by the company to enhance engagement and repeat bookings [91][93] Question: Changes post-ownership resolution - Management indicated that resolving ownership issues would simplify capital structure and enhance strategic flexibility [97][99] Question: Long-term view on hotel meta search - Management discussed the need for ongoing transformation to navigate challenges in the hotel meta search industry [133]