TRIP - Tripadvisor Inc. (TRIP) Q1 2024 Earnings Call Transcript

2024-05-08 12:32:13 ET

Tripadvisor, Inc. (TRIP)

Q1 2024 Earnings Conference Call

May 08, 2024 8:30 AM ET

Company Participants

Angela White – Vice President of Investor Relations

Matt Goldberg – President and Chief Executive Officer

Mike Noonan – Chief Financial Officer

Conference Call Participants

Naved Khan – B. Riley Securities

Niall Mitchelson – Bernstein

Dae Lee – JPMorgan

Jed Kelly – Oppenheimer

Vince Cipiel – Cleveland Research Company

Tom White – D.A. Davidson & Co

Presentation

Operator

Good day and thank you for standing by. Welcome to the Tripadvisor First Quarter 2024 Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your first speaker for today, Angela White, VP of IR. Angela, please go ahead.

Angela White

Thank you, Felicia. Good morning, everyone, and welcome to Tripadvisor’s first quarter 2024 financial results call. Joining me today are Matt Goldberg, President and CEO; and Mike Noonan, CFO. This morning before the market opened, 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 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 view as of today, May 08, 2024. 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.

Matt Goldberg

Thanks Angela, and good morning to everyone joining us today. We were pleased with our first quarter results, which represented a solid start to the year across the board. Revenue was $395 million, reflecting year-over-year growth of 6%, and adjusted EBITDA was $47 million, or 12% of revenue. Our results are a testament to our aligned strategy and the disciplined financial and operational execution of our teams. Later in the call, Mike will provide more financial details, but first I’ll cover the progress we’ve made operationally. As a reminder, we’re operating unique of complementary strategies across our segments. At Brand Tripadvisor, we’re focusing on engagement and delivering world class guidance products to diversify and fuel our monetization paths. At Viator, we’re reinforcing our leadership position and experiences by investing in our brand, enhanced products and repeat bookings to drive LTV and improving unit economics. At TheFork, we’re driving revenue growth with margin improvement by delivering value to both diners and restaurants as the leader in the European dining market.

Starting with Brand Tripadvisor, we delivered revenue of $240 million, a decline of 2%, and adjusted EBITDA of $78 million, or 33% of revenue. Our results reflect the mix of growth and profit profiles within our segment portfolio, as well as the initiatives we’re prioritizing to return to sustainable growth. The foundation we built so far and the work we’re pursuing in 2024 are expected to deliver clear strategic outcomes, drive continued scale in our global audience, generate additional members, who are more loyal and come back to us more frequently through direct channels like the app, and deliver sustainable growth across our diverse monetization paths. These are the core elements to drive engagement led opportunities across all our categories and key to reducing our overall dependence on flyby traffic and addressing the well understood pressure on our legacy meta business.

We’re measuring these outcomes across key metrics, including our overall audience, active members and app users, and average revenue per user. For all of these, our year-over-year trends improved between Q4 2023 and Q1 of 2024, and we’ve seen positive trends emerged in monthly sequential changes over the last six months. While we still have work to do continuing to transform this business, we’re well positioned to accelerate our progress and exit 2024 with more momentum than we’ve had at any point in the past few years....

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