TripAdvisor(US:TRIP)2022-08-05 15:40Financial Data and Key Metrics Changes - Tripadvisor achieved 99% of its 2019 revenue in Q2 2022, a significant increase from 70% in Q1 2022 [14] - Adjusted EBITDA was $109 million, representing 26% of revenue, exceeding expectations [14] - Free cash flow for the quarter was $282 million, with over $1 billion in cash on the balance sheet at the end of the quarter [14] Business Line Data and Key Metrics Changes - Viator's revenue reached 160% of 2019 levels, with a 240% year-over-year growth [6][17] - TheFork achieved 103% of 2019 revenue levels [6] - Tripadvisor's core hotel offering improved to 89% of 2019 levels, up from 63% in the previous quarter [6] Market Data and Key Metrics Changes - U.S. travel strength continued, with Europe showing a strong recovery [14] - The new Tripadvisor Core segment reached 84% of 2019 revenue in Q2 [15] - Hotel auction revenue was about 100% of 2019 levels in both the U.S. and Europe [16] Company Strategy and Development Direction - The company aims to evolve and serve travelers, diners, and experience seekers for decades to come, focusing on innovation and growth in the travel sector [8][12] - Tripadvisor is managing its segments (Tripadvisor Core, Viator, and TheFork) for high growth rather than current margin, reflecting a strategic shift [20] - The company is looking to leverage its data assets to drive consumer insights and engagement [11][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of travel demand despite macroeconomic concerns such as inflation and recession fears [14] - There is an expectation for further improvement in Q3, although currency headwinds are anticipated [15] - Management emphasized the importance of execution and aligning strategy with operational models to enhance performance [35] Other Important Information - Tripadvisor's culture and team are seen as significant assets, with a focus on attracting talent passionate about purpose [11] - The company is evaluating its cash reserves for potential acquisitions or shareholder returns [74] Q&A Session Summary Question: Insights on Viator's repeat booking behavior and branded ad campaign - Management noted strong repeat booking behavior and plans for a diversified branded demand push, focusing on online channels [22][23] Question: Thoughts on Tripadvisor Plus and its potential - Management acknowledged challenges in scaling Tripadvisor Plus but sees it as a priority area for future focus [28][30] Question: Need for dramatic changes in strategy - Management believes the company has a strong foundation but will focus on sharpening strategy and execution [34][36] Question: Health of the meta search auctions - Management reported healthy dynamics in the auction with strong bidding levels and CPCs, although APAC remains underperforming [50] Question: Core segment margins improvement - The improvement in margins is attributed to fixed cost reductions during the pandemic, with variable costs still elevated [58] Question: Viator's operational take rate - The operational take rate is in the mid-20s, with strategies in place to improve it over time [60] Question: Consumer behavior changes amid macro uncertainty - Management has not observed any significant changes in consumer behavior, with strong demand for travel continuing [69]