TripAdvisor(US:TRIP)2023-02-15 17:48Financial Data and Key Metrics Changes - The company reported a consolidated revenue growth of 65% year-over-year, reaching nearly 96% of 2019 revenue for the full year and exiting Q4 2022 at 106% of 2019 levels [5][24] - Q4 consolidated revenue was $354 million, reflecting a year-over-year growth of 47% and reaching 106% of 2019 levels [24][30] - Adjusted EBITDA for 2022 was $295 million, or 20% of revenue, reflecting a significant improvement from 11% in 2021 but down from 28% in 2019 [33] Business Line Data and Key Metrics Changes - Viator achieved record revenue with gross bookings value of approximately $2.7 billion, or 186% of 2019 levels, driven by strong demand [6][27] - TheFork's revenue reached $126 million in 2022, growing 48% year-over-year and reaching 99% of 2019 levels on a constant currency basis [8] - Tripadvisor Core segment revenue was $966 million, growing 45% year-over-year and reaching 79% of 2019 levels [10] Market Data and Key Metrics Changes - Recovery rates for reportable segments in Q4 were 85% for Tripadvisor Core, 208% for Viator, and 94% for TheFork compared to 2019 levels [24] - The U.S. market showed stronger recovery compared to EMEA and the Rest of the World, with hotel meta revenue recovering to 93% of 2019 levels [25][76] Company Strategy and Development Direction - The company aims to innovate around world-class guidance products and enhance mobile experiences to deepen traveler engagement [16][17] - Strategic priorities for 2023 include investing in growth for Viator, improving margins for TheFork, and establishing a clear long-term strategy for Tripadvisor Core [13][14][39] - The company plans to leverage first-party data to enhance monetization opportunities across its segments [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing recovery in travel demand, with strong signals of intent from travelers [55] - The company anticipates a flat year-over-year adjusted EBITDA margin for 2023, with expectations for steady growth in Tripadvisor Core and significant margin improvement in TheFork [38][57] Other Important Information - Free cash flow for 2022 was $344 million, significantly up from $54 million in 2021, supported by higher operating cash flow [34] - The company ended the year with over $1 billion in cash and $1.5 billion in total liquidity, providing a solid cushion against potential macro headwinds [35] Q&A Session Summary Question: What is the revenue guidance for 2023? - Management indicated that the growth rate for the travel market is expected to be mid-teens, with Viator anticipated to grow faster than the consolidated rate [42][43] Question: How does the company plan to utilize Generative AI? - Management sees Generative AI as a long-term opportunity to enhance personalized experiences and leverage the vast content asset of over 1 billion reviews [44][47] Question: What are the margin expectations for Viator in 2023? - Management expects Viator's margins to remain consistent year-over-year, with improvements anticipated in TheFork due to prior investments [56][57] Question: What is the expected performance of Tripadvisor Core? - Management aims for steady growth and margin expansion in Tripadvisor Core over the midterm, with a focus on enhancing engagement and product offerings [60][64]