TripAdvisor, Inc.

are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising you your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Angela White, VP of IR. Please go ahead.

Thank you, Michelle. Good morning, everyone, and welcome to TripAdvisor's fourth quarter and full year 2024 financial results call. Joining me today are Matt Goldberg, President and CEO, and Mike Newton, CFO. Earlier this morning, we filed and made available our earnings release. In that release, you'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call. Before we begin, I'd like to remind you that this call may contain estimates and other forward-looking statements that represent managers' views as of today, February 20th, 2025. TripAdvisor disclaims any obligation to update these statements to reflect future events or certain standards. Please refer to our earnings release as well as our calling to the SEC for information concerning factors that could cause actual results to differ materially from these forward-looking statements. With that, I'll turn the call over to Matt.

Thanks, Angela, and good morning, everyone. Across TripAdvisor Group, we finished 2024 strong, with results that exceeded our expectations on both the top and bottom line for the fourth quarter and the full year. In Q4, consolidated revenue grew 5% to $411 million, a result of the healthy improvement in growth sequentially across all segments. Adjusted EBITDA was $73 million, or 18% of revenue. For the full year, revenue reached 1.8 billion and adjusted EBITDA was 339 billion. In 2024, we delivered meaningful progress against our strategic priorities and strengthened our revenue and EBITDA mix. Importantly, for the first time, all three segments positively contributed to group profit. And now, more than half of our revenue is coming from our growth marketplaces at Viator and The Fork, which together delivered $52 million of incremental adjusted EBITDA versus the prior year. The experiences category is increasingly becoming the strategic and financial center of gravity of the group as we continue to position our unique assets to extend our leadership in this large and fast-growing market. Viator's segment results reflect our ability to grow market share by leveraging our scale, with GBV reaching nearly $4.2 billion in 2024. On the demand side, we continued on our journey to deliver profitable above-market growth, with revenue reaching 14% for the year in growth and accelerating to 16% in Q4. Direct booking volume on the Viator point of sale grew nearly 30% for the full year, which speaks to the consistent improvements we're making on unit economics as we continue to scale. We put more attention on driving marketing efficiency while investing in critical areas of the consumer-facing product to increase conversion and loyalty. We continue to focus on our mobile app, which was Viator's fastest-growing channel, with booking volume up more than 80% for the full year. On the supply side, the number of operators on our platform grew more than 15%, a testament to the value we provide them. Our supply advantage is a critical asset in driving our third-party partner revenue, which grew more than twice the rate of the overall segment in 2020. At Brand Trip Advisor, we made significant progress on our engagement-led strategy while navigating quarterly variability driven by our legacy offerings, most notably Hotel Meta. the momentum in our strategy and our conviction strengthened throughout the year supported by tangible progress we saw across key metrics for example monthly active users stabilized for the year and grew in our core geographies a reversal from declines in prior periods global monthly active members an important indicator of engagement grew mid-single digits in 2024. and accelerated in each successive quarter. Monthly active members in the U.S., where we focused most of our testing and experimentation, grew in twice the global rate. Each of these engagement improvements are driven by product changes, enhancements, and new features that result in more persistent loyalty with our users, which we believe serves as the foundation for turning TripAdvisor back to near-term growth. Our dining marketplace, the fork segment, grew revenue a healthy 18% to $181 million and delivered full-year profitability for the first time in its history, representing an adjusted EBITDA improvement of $19 million over the last year. This performance highlights meaningful strategic progress and an important inflection point in the financial trajectory of this business. The fork is positioned as the leading brand in the European dining market, serving more than 70 million diners and driving nearly 2 billion euros of restaurant spend in 2024. Turning to 2025, we enter the year with encouraging momentum and sharpened focus. Our plan positions the group on a multi-year path to sustainable revenue and EBITDA growth across each segment. We expect to drive the majority of our revenue and an increasing portion of our profit from our growth marketplaces at Viator in the Fork, while TripAdvisor stabilizes and improves its financial profile throughout the year on its return to full-year growth in 2026. This year, we also expect our experiences revenue to be the largest contributor of revenue to the group for the first time. This progress is consistent with our strategic vision that the experiences category has become increasingly central to Travel Planet, and we are uniquely positioned to benefit from its durable secular talents. Our group strategy for experiences is clear. We will enhance our competitive advantage by taking a holistic approach to the category, leveraging the full scope of assets and shared capabilities to build on our leadership position. This includes the leading OTA Viator, the largest global travel audience at TripAdvisor, and the depth and breadth of supply, spanning nearly 400,000 bookable products from more than 65,000 operators globally, all fueled by a powerful data asset. Our teams at Viator and TripAdvisor will accelerate their work together by taking advantage of our differentiators, such as our first-party data, scale advantage, trusted global brands, and supply relationships. For 2025, our strategic focus at Viator starts with delivering the leading customer experience in the category to drive our conversion and loyalty. Last year, we prioritized our investment in product, user experience, and data to deliver improvements in search, navigation, and product matching, helping travelers more easily find experiences that perfectly meet their needs. As we continue our investments in product and data, we expect to see ongoing improvements in conversion, repeat rates, and customer satisfaction. We'll continue to increase marketing efficiency by optimizing our marketing channels, attracting and converting high-intent customers, and delivering better landing pages and other funnel improvements along the customer journey. We have many assets to leverage, including our cross-brand signals, relevant content, and merchandising tools, which together will deliver a better shopping experience to fuel ongoing improvements in our unit economics. Turning to our supply, we'll continue to focus on building the world's best experiences catalog, expanding choice and key destinations, and filling geographic and category gaps to better serve our customers. We'll continue to enhance our tools to help suppliers participate in our marketplace and optimize their bookings. Given the importance of supply plays and the traveler's value proposition, we expect investment in supply to benefit conversion and bookings across all points of sale over time. Finally, these investments will also benefit our ability to grow our third-party partnerships. We value our distribution partnerships as a key channel to reach incremental profitable demand that would otherwise be difficult to directly access. By extending the features and functionality of our partner API, we expect to enhance existing partnerships, unlock new relationships, and continue to grow our third-party channel at high rate. Turning now to the brand TripAdvisor segment, where we expect 2025 to be the year we shift our trajectory and stabilize our financial profile. We've progressed our transformation methodically over the past few years, managing the known structural challenges of our legacy business while setting the foundation for the future. In 2023, we focus on establishing the right leadership talent and aligning the organization Last year, we delivered new product features, developed capabilities to scale our product, stabilize our audience, and improve our engagement metrics. This year, we've continued to align our cost structure to heighten our focus on the areas where we have a high level of conviction to scale financial outcomes. As a starting point, we'll focus on accelerating experiences growth across TripAdvisor-branded services, With hundreds of millions of visitors to our site every month, we have the opportunity to convert more travelers to bookers with improvements, including enriched guidance through more visual browsing, checkout enhancements, and more relevant recommendations. We'll build marketing campaigns around the experiences category as we continue to drive awareness among our large and growing base of travelers looking to plan experiences. We'll also work across the group to tap growing demand for experiences on TripAdvisor across under-penetrated geographies and verticals. Second, we'll continue to drive adoption of our mobile app where we provide comprehensive trip planning tools, trusted guidance, and seamless multi-category booking capabilities. We plan to expand our hotel booking offering in our app and ramp the availability of bookable hotels focusing on conversion and rewards. We're leveraging AI to facilitate improved guidance and more relevant suggestions through personalized sort and our recently launched chat-based AI travel assistant, which services personalized information that helps travelers take action faster. We expect to see our product improvements continue to drive growth in active app users and scale our booking revenue across categories. And third, we'll differentiate and expand awareness of the benefits of our membership offerings which focuses on rewarding our most engaged travelers with personalized offers and the ability to earn and redeem awards across their bookings. We're also testing new content formats to drive traveler engagement that make contributions on our platform easier, such as tips, lists, and community interactions. To scale these initiatives, we'll invest in measurable, full-funnel marketing at Brand Trip Advisor, which we believe will drive financial impact this year while strengthening our trusted brand. Our testing over the last year has given us confidence in our ability to expand awareness of the products, yielding deeper engagement and higher monetization to diversify our acquisition channels and drive more direct traffic and mobile adoption. Now, turning to our dining marketplace, the fork segment. where we'll continue to build on our leadership position in the European dining market while improving our financial profile. In 2025, we'll further leverage the operating efficiencies we achieved last year and accelerate our product innovation, driving balanced growth across both our diner and restaurant offerings. On the diner side, we'll focus on driving engagement and conversion through product improvements in our search, rankings, and bookings flow, including more personalized recommendations We'll continue to balance marketing investment across social, performance marketing, brand awareness, and our Diner Rewards program to enhance growth and long-term customer retention. On the restaurant side, we'll continue to improve our supply quality, scaling acquisition through more cost-effective, product-driven strategies to improve the onboarding experience. We've invested in enhancing and modernizing our ERB software, and we expect this to accelerate restaurant usage of the product, providing additional growth opportunities as we increase penetration in our existing and new supply base. We're also pleased with the ramping of new partnerships, like the ones we recently announced at MasterCard and Vodafone, that further diversify our revenue mix. These partnerships underscore the strength of our brand and the opportunity to attract and retain new diners we don't reach elsewhere. Finally, across all areas of the group, we're leveraging our investment in data and AI to reinforce our unique and privileged position of trust. We believe our proprietary data, content assets, and trusted brands will help us create substantial value through new products and meaningful partnerships in a fast-moving landscape. We sit on a treasure trove of data across all categories, from the first-party data of our large and growing logged-in audiences to strong signals of intent, engagement patterns, and conversion data across multiple marketplaces. Our teams have been quick to adapt to the pace of AI innovation, infusing it into our product, leveraging it in our operations to better provide service to our customers and operators, and delivering the most relevant insights and recommendations. Across the AI landscape, we've been collaborating with a number of platforms to test new incremental sources of traffic as we test and learn more about audience engagement and conversion opportunities across our category marketplaces. We're also exploring the intersection of our differentiated content and AI agents to create a seamless way to discover and book on our platforms. Our teams are innovating and experimenting to expand our reach through strategic partnerships with select leaders in this dynamic space. In addition to the progress we've made across all areas of the business, we also made some important decisions related to capital allocation. And we're on the path to effectively repurchasing a significant portion of shares through an agreement we announced with our controlling shareholder in December. Mike will talk more about this shortly, but I want to be clear. Once this transaction closes, likely in Q2, we will move to a new chapter for TripAdvisor Group with accelerating momentum and strategic flexibility. 2025 is a pivotal year for us, and despite making some hard choices recently, our teams are already well on their way executing with energy, discipline, and focus. I want to thank all our employees for their ongoing commitment to our vision to be the most trusted source for travel and experiences. With that, I'll turn the call over to Mike.