TripAdvisor, Inc.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, press star one again. Thank you. I would now like to turn the conference over to Angela White, VP of IR. You may begin.

Thank you, Janice. Good afternoon and welcome to TripAdvisor's second quarter 2025 financial results call. Joining me today are Matt Goldberg, President and CEO, and Mike Noonan, CFO. Earlier this afternoon, 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 measure 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 management's views as of today, August 7, 2025. TripAdvisor disclaims any obligation to update these statements to reflect future events or circumstances. Please refer to our earnings release, as well as our filings with 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 afternoon, everyone. We're pleased with our Q2 performance. Group revenue grew 7% or 5% in constant currency to $529 million at the upper end of our range. Adjusted EBITDA of $107 million or 20% of revenue exceeded our expectations. In a few minutes, Mike will provide more details on our financial performance and our view of the back half of the year. But first, I want to provide some context about where we're heading. We've made progress to transform TripAdvisor Group. as evidenced in the shift in our portfolio mix. Our revenue composition has changed meaningfully and is now majority driven by our growth marketplaces at Viator and The Fork. Over the last 12 months, they represented nearly 60% of our revenue, growing at an 18% CAGR and contributed more than 75 million of adjusted EBITDA versus two years ago for the comparable time period when they represented less than half of our revenue and adjusted EBITDA loss of 61 million. At the same time, at Brand TripAdvisor, we've reinforced our core assets, even as we navigate longstanding headwinds to our legacy revenue streams. TripAdvisor's trusted brand, content, proprietary data, and insights continue to be valuable assets for the group as we address the ongoing needs of travelers in a dynamic and evolving travel ecosystem. As we look ahead, we see an opportunity to build on our momentum by sharpening our focus on experiences, the fastest-growing category in travel. Exploring cultural attractions, local tours, and outdoor experiences has become the most important part of the trip. We believe this is a long-term, durable consumer trend, but the category is still fragmented and has low awareness. And as a group, we're better positioned than anyone to win in experiences given our highly trusted consumer brands, differentiated product offerings powered by proprietary data, and deep and unique supply with AI embedded at our core. We operate not one, but two trusted brands in the category, with TripAdvisor serving broad multi-category demand and Viator focusing squarely on the experiences vertical. To capture even more of the market, we see an opportunity to shift away from optimizing for individual brand strategies and operate with an eye towards deeper coordination. This enables us to leverage our group-wide assets across our marketing channels, customer traffic, supply relationships, product data and technology, to drive both growth and efficiency. We've started to see examples of how this aligned approach delivers real business results. This quarter, we began testing marketing optimization across TripAdvisor and Viator. As part of this effort, we've been exploring ways we can vary our investment by geography and channel, taking advantage of the relative strength of each brand, market by market, to drive the greatest impact across the group. While still early, these tests have yielded performance gains over our historical brand-centered approach that we're confident can scale. Similarly, as we begin to ramp up our testing velocity, insights from Viator's high-performing booking funnel are improving the user experience and conversion on the TripAdvisor point of sale. TripAdvisor's global audience data and demand signals are helping us target high-intent audiences that drive conversion at Viator. and we're leveraging TripAdvisor's global audience data to better identify where and how to grow Viator's supply footprint. We expect experiments like these to translate into market-leading efficiencies at scale. As we compound our wins, align our brand and marketing approach, and coordinate our R&D and supply investments, we unlock more value at the group level. Our combined offering to travelers is unique. Inspiration, planning, booking, and re-engagement enhancing monetization, and creating value for our partners. Over time, we expect this to drive additional operating leverage and strategic advantage. As we focus on growing our leadership position and experiences, we'll also benefit from our group-wide adoption of AI. This technology is redefining how travelers explore, plan, and book their journeys, offering more intelligent and personalized experiences. We're not only successfully integrating AI into our products, we're actively shaping how AI will define the future of travel. From personalized recommendations to enhanced customer support and productivity across our teams, AI is enabling us to build better experiences faster. We're already bringing this vision to life across our business. For Brand Trip Advisor, AI is powering more intelligent search and discovery and helping travelers navigate our vast amount of content more easily. At Viator, we're rolling out the use of AI to refine the relevance of search results, improving booking initiation and conversion. At The Fork, we're testing conversational AI to help diners quickly find the right restaurant match and expand our partner base. These enhancements are making our platform smarter, stickier, and better tuned to the needs of our users. Our trusted brands, proprietary data, and scale also make us a critical partner in the emerging AI search ecosystem, from chat GPT to perplexity to traditional search engines evolving their offerings. We recognize that the way consumers will discover and access online sites in the future is changing, and we're positioning ourselves to serve them more effectively. Our longstanding expertise in SEO and content optimization gives us a head start as the lines blur between traditional and AI search. And we've been rapidly adapting our products and marketing to drive more direct traffic engagement and mobile app use. Internally, AI is a catalyst for operational efficiency. We're deploying foundational AI tooling across the enterprise to streamline workflows and increase automation. From content moderation to customer service, we're seeing early productivity gains that we intend to scale. Let me now shift to a few reflections on the most recent quarter. First in experiences, we've solidified our market position in North America and believe we're well positioned to drive growth and profit globally. In Q2, experiences booked grew 15% and Viator's adjusted EBITDA more than tripled. Strong signals that we're delivering value to our customers, suppliers, and partners. On the customer side, Viator's marketing and product flywheel is taking hold. We're targeting high intent travelers delivering an improved user experience for them and converting them to bookers. We continue to make tangible gains that remove friction to the shopping experience and drive more travelers to stay, try, and buy. This includes more personalized landing pages, sort, and availability that are resulting in meaningful improvements in bounce rates, booking initiation rates, and conversion. Our R&D efforts are also yielding more direct use, On the Viator point of sale, bookings from direct traffic, including the app, are outpacing other marketing sources. Turning to supply, we continue to lead the category in our breadth, depth, and quality of available experiences. We're widening our moat, expanding supply across categories and markets through a variety of operator-focused initiatives, such as optimized lead generation, targeted sales, and marketing campaigns. As we onboard new attractions and operators on our platform, we're delivering higher bookings in the first month, a signal that our demand-driven supply acquisition approach is working. Now shifting to our European dining offering. The fork delivered a strong quarter, demonstrating both operational discipline and continued momentum. Revenue grew 28% or 22% in constant currency to $54 million, with healthy performance across both B2C and B2B channels. Adjusted EBITDA margin more than doubled year over year, reflecting the leverage in the model as we continue to drive growth while managing fixed costs. On the diner side, our marketing investments are focused on optimizing the balance between new diner acquisition and repeat engagement. The Fork's mix of performance marketing, brand, and loyalty programs are working together effectively. Bookings on the Fork network grew in the low teens, while total bookings grew 9%. App adoption continues to deepen. Nearly 80% of our bookings now come through the app and from repeat diners, a reflection of both product stickiness and cohort quality. On the restaurant side, we continue to expand our offering and drive growth in B2B SaaS and other revenue streams. B2B revenue more than doubled year over year, driven by a growing portion of our restaurant base adopting our premium ERB subscription tier. Total subscription revenue continues to increase as a share of overall mix, a testament to the value provided by our product and service offering. We also continue to make progress in partnerships, recently launching exclusive dining experiences with MasterCard across Europe. The partnership provides MasterCard holders and the fork diners exclusive priority access to tables at top-tier restaurants and unique curated dining experiences, such as behind-the-scenes kitchen or cellar tours led by renowned chefs. The progress we've made in partnerships is a testament to our brand and offering in European dining. Finally, at Brand Trip Advisor, our travel planning and guidance platform. Q2 revenue was $242 million, and adjusted EBITDA was $66 million, or 27% of revenue. As we've transitioned this business over the last two years, we've invested prudently to deliver a steady cadence of product improvements to engage our highest-value travelers. These are the customers who come to us directly, log in as members, download our app, increasingly book with us, and leave high-quality reviews. We see opportunities ahead to narrow our focus to the areas of this strategy that allow us to fully leverage TripAdvisor as a powerful cross-category demand and discovery platform. While we continue to see pressure on our legacy revenue, we've made visible progress in our engagement strategy, driving more members directly into our app, which is the fastest growing part of our audience. We like the economics of these app members. While still a small portion of our total volume as they scale, They'll reduce our reliance on paid channels, and their average revenue per user, or ARPU, continues to grow by double digits year over year. To deliver more value for our app users, we've also recently rolled out improvements to hotel shopping and our free membership in the U.S. Designed to be the most flexible rewards program in the travel industry, TripAdvisor Rewards recognizes and rewards travelers for planning, contributing, and booking on TripAdvisor. The more travelers interact with the app, the more benefit they receive. Trip Cash accumulates while planning, booking, and offering guidance to other travelers, rewarding their role in the community as well as their bookings across both hotels and experiences. As we close, I want to reiterate why I believe TripAdvisor Group is exceptionally well-positioned to win in the evolving travel landscape. We have unique assets that bring together an unmatched combination of content and data, supply depth, and global reach across key categories at different points of the travel journey. Our brands are rooted in trust, relevance, and authenticity, and millions of travelers rely on us to discover, plan, and book their trips. As the world continues to adopt AI, we're leveraging its full potential to drive our product development, strengthen our position in the ecosystem, and power our business. Together, these pillars, unique platform assets, brand trust, and AI embedded in everything we do form the foundation of why we believe TripAdvisor Group is extremely well-placed to achieve our vision to be the most trusted source for travel and experiences. With that, I'll turn the call over to Mike.