TripAdvisor, Inc.

Good day, and thank you for standing by. Welcome to the TripAdvisor first quarter 2026 conference call. At this time, all participants 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'll need to press star 11 on your telephone, and then you'll hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Angela White, VP of IR. Please go ahead.

Thank you, Therese. Good morning, everyone, and welcome to TripAdvisor's first quarter 2026 financial results call. Joining me today are Matt Goldberg, President and CEO, and Mike Noonan, CFO. Earlier this morning, we filed and made available our earnings release. In that release, you'll find reconciliations of the non-GAAP financial measures to the most comparable GAAP financial 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, May 7, 2026. TRIP Advisor 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.

Thank you, Angela, and good morning, everyone. We're pleased with our Q1 performance, with group revenue in line with expectations and adjusted EBITDA ahead of expectations. We delivered this result despite the challenging macro backdrop that intensified late in the quarter which Mike will take us through in detail shortly. As a reminder, last year we made an important strategic shift. We reoriented TripAdvisor Group around our objective to build the world's largest experiences marketplace. The experiences category represents the largest growth opportunity in travel. It's highly fragmented, still early to come online and supported by durable tailwinds for growth. It's a market where scale matters and our scale advantage is reinforced by our high intent travelers, trusted brands, industry leading supply, and long established category authority. Along with our shift to experiences, we also set out to unlock the power of our data so TripAdvisor remains at the center of travel discovery, planning, and booking as the journey evolves with AI, and to simplify our portfolio of legacy offerings to optimize for profitability as we prioritize other growth opportunities. Today, I'll walk through the progress we're making across our strategy, beginning with experiences. Through the first two months of the quarter, our experiences segment delivered particularly encouraging momentum, with GBV growth accelerating from 16% in the prior quarter to 19% in January and February. Viator, our largest point of sale, was even stronger, with bookings and GBV growing more than 20% in January and February. In late February, that momentum was interrupted, by geopolitical events in the Middle East, along with acute disruption in two key leisure markets, Mexico and Hawaii. Together these factors drove a sharp decline in booking volumes and a spike in cancellations, which has since improved. The strength we saw in experiences in January and February reflects both healthy underlying demand in the category, as well as early evidence of the strategic changes we put in place last year. We're seeing that progress emerge across the full experiences marketplace. Tighter coordination across demand, our storefronts, and supply is strengthening the flywheel and driving tangible results. On the demand side, we've unified the Viator and TripAdvisor marketing teams to drive alignment and long-term efficiencies across both headcount and partner spend. We're becoming more efficient and precise in how we allocate our marketing investment across channels. We're operating our two brands together in our paid search portfolio and improving spend efficiency without compromising overall performance. We're also leveraging our intelligence across channels through improved testing and modeling, giving us better visibility into where investment can work even harder across the broader marketing mix. This, in turn, helps us move more dollars into higher return channels such as paid social and affiliates. And finally, we're driving incremental growth in direct and owned channels, such as CRM in the app, through product improvements, pricing capabilities, and rewards. As traffic lands in our storefronts, our product work is simplifying the path to booking, which drives incremental volume and compounding conversion gains. As an example, on the TripAdvisor point of sale, we've seen more than 20% growth in conversion over the last two quarters. Our velocity of experimentation is improving the overall product experience to help customers make more confident booking decisions through better review and product availability merchandising, as well as an AI-enabled pre-booking chat on the Viator app. And we're providing more flexible payment options to establish a stronger global payments foundation, which we expect to drive further conversion gains as we lay the groundwork for international growth. Underpinning these efforts is our supply, a longstanding advantage that drives our conversion rates. We're focused on building the right inventory in the right places as quickly as possible by expanding into geographies and categories where we see unmet demand. And it's making an impact. Where we've added strategic supply, over half the bookings came from new customers, a strong leading indicator that it's attracting incremental demand. We're also simplifying our onboarding process for these valuable new operators, leveraging AI-assisted signup to speed the process, which has more than doubled signup conversion. Together, this work is creating a stronger and more coordinated experiences flywheel. Our execution is delivering key metrics to improve our performance, better marketing efficiency, increasing experimentation velocity, higher conversion rates, stronger supply productivity, and growing customer loyalty. All of these help improve our unit economics as evidenced by direct channel bookings growth in Q1 that was well above our segment average. Moving beyond experiences to our other marketplace, the fork, where the business outperformed against both top line growth and profitability. Revenue grew 23% or 11% in constant currency with a healthy 8% EBITDA margin. We continue to diversify our revenue mix with B2B and partnerships revenue outpacing growth in the B2C marketplace. Our restaurant base continues to skew premium as premium restaurant share grew approximately 500 basis points over last year and nearly half of newly acquired restaurants are entering at premium tiers. We're continuing to drive an innovation agenda at The Fork that lays the foundation for the future. With 80% of diners now coming through the app, we continue to focus on improving the diner experience. Our AI assistant, Ask the Fork, is making restaurant discovery more intuitive through full content search across menus, photos, and reviews. While still scaling, this feature is showing encouraging signals, improving recommendation relevance, engagement, and conversion versus traditional search. And with the Fork Social, we're reshaping discovery from anonymous ratings to trusted community recommendations. This feature is already showing markedly higher conversion, now accounting for roughly 10% of users and 15% of bookings. We're also using AI to drive productivity across the business, with approximately 40% of B2C customer support queries now handled through AI. Together, this execution points to a business that's well-positioned for durable, long-term growth and expanding profitability. We're pleased with the performance we're seeing in our marketplace businesses, and we expect AI-driven productivity gains across our product and engineering organizations to further accelerate that progress. AI is now a critical part of our infrastructure, increasing the speed at which teams can build, test, and deploy. As AI-enabled workflows become embedded across our R&D organization, we're seeing execution gains including a five to seven times increase in average engineering output in one of our recent AI native pilots. And AI is increasingly embedded in our operational work from improved booking experiences and simpler supply onboarding to increasing automation across customer support. Beyond productivity, we're also executing to ensure TripAdvisor remains central to travel as the consumer journey increasingly shifts into AI-led discovery and planning. This plays to one of TripAdvisor Group's greatest strengths, our data. With a billion reviews, photos, points of interest, and diversified contributions across geographies and categories, it's not just that. It's also trusted, structured, and constantly refreshed. It reflects how travelers explore, compare, and book across millions of businesses with much of that intelligence tied directly to experiences pricing and real-time availability. Our data assets enable us to work directly with the world's largest horizontal AI platforms. These partners include OpenAI, Perplexity, Microsoft, Amazon, and most recently, Anthropic, where we launched TripAdvisor and Viator apps within Cloud. Each of these partnerships gives us valuable early learnings about how these users engage and convert with an opportunity to scale the value of the relationship further. What we're seeing so far is encouraging. While the total volume from AI sources is still small, the conversion is already among the highest of any channel in our portfolio. Beyond partnerships, we're using our data advantage to rapidly iterate on our own AI native experience. With the high volume of visitors who seek us for trusted advice, we have a scaled testbed that allows us to learn from multiple entry points across diverse use cases. We're testing, learning, and expanding in a considered manner, serving half of our web traffic and English-speaking markets. As we innovate with AI to help travelers solve problems in real time by comparing options, validating preferences, and making better booking decisions, we're putting the judgment of real travelers front and center. Wherever AI-led travel discovery ultimately lands, we believe the data layer that provides trust, relevance, and confidence to transact will define the winners, and we expect to be firmly among them. The final component of our strategic shift is to simplify our hotels and others business as we focus on growth opportunities elsewhere. This remains a profitable part of the portfolio, but one we recognize is structurally challenged. As we continue our transition from a subscale meta search player to the leading experiences marketplace, we're managing this business accordingly. reducing fixed costs, prioritizing areas where we can drive attractive returns and pursuing partnerships and categories where we aren't positioned to be the global leader. We began to see the initial financial benefit of that approach in Q1, with total fixed costs down approximately 14% and personnel costs down 18% year over year. We expect that run rate benefit to continue as we move through 2026. The focus is straightforward. Align our cost base with our revenue profile and optimize hotels and other for contribution profit while leveraging our trusted brand reach and data for experiences and AI. Before I pass to Mike, I want to step back and reconnect our strategy to what you're now beginning to see in our results. We've made three deliberate choices. First, to put experiences at the center of the company. Second, to position TripAdvisor Group for an AI-driven shift in travel. And third, to simplify the legacy business and manage it for profitability. As we've started to execute on this path, we're making visible progress in each of these areas. We accelerated our experiences growth ahead of the March disruption. We're leveraging AI to speed our execution, improve our products, and add partnerships with every major LLM platform. And we've made progress simplifying our legacy business to create the focus, capacity, and room to invest in our experiences future. In short, we're becoming an experiences first company built for sustainable growth and profitability. Last quarter, we noted that we were formally exploring alternatives for the fork and we continue to make good progress. While we have no definitive announcement at this time, the work has reinforced our view that this is a highly attractive asset whose value may not be fully reflected within the current portfolio, and we expect to provide an update in the near term. We continue to review our portfolio and explore all options to deliver the simplicity, focus, and scale that we believe will catalyze meaningful shareholder value ahead. So we had a strong start to 2026. Despite the external disruptions, we remain confident in travel's resilience and the long-term growth profile of the areas we're prioritizing. With that, I'll turn it over to Mike.