Q1 2023 TripAdvisor Inc Earnings Call
Good day, and thank you for standing by and welcome to the Tripadvisor first quarter 2023 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 this session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one 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. Please go ahead.
Thank you Lisa good morning, everyone and welcome to Tripadvisor as the first quarter of 2023 financial results call. Joining me today are Matt Goldberg, President and CEO and Mike Noonan CFO .
Last night after market close we filed and made available our earnings release and that release, you'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measure discussed on the call.
Also in our release you will find supplemental financial information, which includes reconciliations of certain non-GAAP financial measures discussed on this call as well as other metrics.
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 four 2023.
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 materially differ materially from these forward looking statements with that I'll turn the call over to Matt. Thanks, Angela and thanks to all of you.
For joining us this morning.
Since I first joined these quarterly calls last July I have been focused on aligning our teams around a shared vision reinvigorating our culture of execution organizing ourselves to break down silos building out a world class leadership team leveraging data to deepen our consumer engagement focus accelerating our product development and invest.
<unk> to extend our market leadership and experiences.
We are pleased with the progress, we're making while delivering on our expectations for our financial performance.
Our Q1 results were achieved as our new leadership team rallied the organization around our group vision to be the world's most trusted source for travel and experiences we launched our strategy for Tripadvisor and engaged our employees on how we translate our priorities into an operating plan with tangible proof points, while delivering on our revenue and margin plan.
And we continued to deliver meaningful growth as the market leader in experiences at <unk> and strengthened our European dining position at the fourth.
We delivered year over year revenue growth of 42% or $371 million and adjusted EBITDA of $33 million or 9% of revenue in line with our expectations for the quarter and reaffirming our confidence in our plan for the full year.
In a moment I'll provide some tangible examples of our disciplined execution and the progress we're making against our segment strategies.
But first let me frame. These results in the context of our strategy and illustrate how our focus is driving performance.
We operate unique segments with their own strategies each in different stages of growth with different competitive dynamics market opportunities and customer value propositions and.
Tripadvisor core we're focused on delivering sustainable revenue and profit growth by driving deeper traveler engagement that benefits, our partners and fuels our diverse monetization paths.
<unk>, we continue to accelerate our leadership position and experiences by investing in awareness enhanced products and repeat bookings to capture more market share in this underpenetrated and high growth travel category.
In the fourth we're driving healthy growth with significant margin improvement this year by delivering value to both diners and restaurants in the European dining market.
Starting with Tripadvisor core Q1 revenue was $244 million, reflecting 28% year over year growth driven by our experiences and hotel offerings.
On our last call, we set out our strategy for Tripadvisor core outlining three areas of focus that we will continue to reference as we deliver our plan, let's revisit these stated priorities.
First we will innovate around world class guidance products through more dynamic and diverse content formats innovative trip planning tools and a mobile first approach.
Second we will prioritize deeper engagement with travelers meeting their decision making needs in a more personalized way powered by data and technology, while evolving our membership program over the long term to drive loyalty.
And third we believe that we can transform that engagement into more value for our partners today, we monetize only a fraction of our audience largely through our hotel meta offering as we build a more engaged audience. We believe we can drive stronger overall monetization by further diversifying our business through our media and experiences.
Offerings.
This is a long term strategy and we're in the early days, but I'm pleased to report that we're on track in executing our roadmap for the year.
Though progress will build over time, we're beginning to see important green shoots let me highlight a few examples.
This past quarter, we rolled out some early enhancements to our user experience across the platform most notably in how users navigate the home screen and our App shop for experiences and hotels and submit reviews. While this is just the starting point. We're excited about the early indicators, including increases in shopper clickthrough rates decreases in bounce.
Rates and double digit improvements on review completion and photo submissions all fundamental areas for our strategy going forward importantly in some of our tests, we saw incremental lift in our gross booking value and revenue for experiences one of our critical growth opportunities.
We began piloting our new content approach in select destinations developing fresh guidance across multiple formats like articles itineraries and collections for example in certain cities a traveler can now discover the best places to stay things to do and where to eat by engaging with content that blends the voices and perspectives of real true.
<unk> with expert curation, all powered by technology and our proprietary data.
And as we suspected we're finding that better content rights deeper engagement preliminary results show an increase in time spent on platform and page views.
We made significant progress scaling our unified group wide customer data platform, which now has over 1 billion data profiles.
This is the foundation that will power our ability to display personalized search results more effectively target customers and prospects and build better audiences for advertising partners. Among other use cases.
We continue to drive changes within our organization to improve execution, including an aligned functional leadership structure with world class talent in new roles driving product sales and marketing and operations.
We're already seeing the impact of our new operating model, which is driving increased velocity and product development more flexibility to shift resources to align with our highest priorities and streamlining our teams to generate a higher level of performance going forward.
These examples are reflective of a more consumer and product led mindset that we will continue to build on quarter by quarter.
I am, particularly excited about the work. We're currently progressing at the intersection of trip planning and generative AI.
What sets us apart in the industry as a relationship of trust with travelers we understand the travel decisions are complex and good advice is hard to find and we believe that we're uniquely positioned to bring together our large asset of proprietary first party data and authentic content with best in class large language model.
And embed them in the tools travelers need to fully plan itineraries end to end.
We have distinct assets and capabilities, our brand trust broad reach signals of intent quality reviews from real travelers sharing their actual experiences and more all of which we can leverage to reinforce our relevance in the travel ecosystem.
Turning now to Viator, where we're accelerating our leadership position in the experiences category. We grew revenue year over year by 105% to $115 million and reached over $800 million in gross bookings value.
The strong revenue growth rate was driven by volume and better take rates and we continue to see improvements in repeat rates of our customer cohorts.
The market for experiences is large and growing anticipated to reach just under 280 billion in gross bookings value by 2025, and a market that is still largely offline with only about a quarter of gross bookings transacted online today, but has continued to migrate online at a fast rate.
Beyond these category tailwind, we're investing in marketing to acquire new customers to build our brand and to drive awareness to the experiences category.
We expect that over time as our marketing efforts and expansion into other channels gained traction we can drive strong unit economics. Our teams are focused on improving the UX, the app experience product and technology and marketing programs for our suppliers as a result, we're seeing ongoing improvement in conversion take rate.
And App adoption.
We're frequently asked about the advantage of having two brands in the market and the experienced this category and what role each one place I'd like to share a few thoughts on this topic our.
Our experiences brands are complementary, allowing us to capture a broad travel audience across all of the things to do on a trip as well as going deep and experiences at.
At <unk>, the world's leading experiences we.
We provide travelers who are looking to book their next experience with an unparalleled collection of global tours and activities and experiences.
For our 50000 plus operators, we offer distribution on thousands of sites, reaching millions of travelers, including direct access to Tripadvisor storefront.
At Tripadvisor as the largest travel guidance platform, our trusted brand and reviews help build awareness and guide travelers to the right experience as part of their overall travel planning it.
It serves travelers higher up in the funnel, enabling us to reach audiences that via towards traditionally doesn't introducing experiences is one component of an overall trip.
Almost as many travelers come to us for experiences as for hotels or restaurants, and we have a significant opportunity to expose even more of them to bookable inventory.
And the majority of those travelers come to Tripadvisor or buy a three traffic given the vast reach of the brand, which is an exceptional asset to help us drive our unit economics over time.
We believe that our combined approach leveraging viator and tripadvisor further distinct but complementary strengths and theyre large Tam is a competitive advantage as we focus on creating the best user journey that matches growing traveler demand for experiences with the most relevant supply.
Finally at the Fork, we saw solid performance reinforcing our position as a leader in the European dining sector.
Revenue grew 35% year over year, and 41% in constant currency driven by strong booking volumes were.
We're even more pleased that this activity when considering the less than ideal backdrop in Europe with the macro environment and other disruptions such as the recent strikes in France.
As we balance growth with profitability adjusted EBITDA margin improved year over year.
We're continuing to drive value to both restaurants and diners on the restaurant side, we saw improved productivity and discipline across our sales teams that we believe will help us grow from our current base of over 55000 restaurants. We're also delivering analytics that demonstrate a clear return on investment for restaurant owners, which helps drive restaurant acquisition and retention.
On the diner side, we're seeing higher share of new customer acquisition through our app versus the web and app download volumes that are nearly doubled 2022 levels.
We know that diners, who come to us through the App have a higher lifetime value and much better retention, giving us confidence in the value we're driving for customers.
Over the last year, we've observed consumers prioritizing their discretionary spend in travel and experiences over other categories. Despite the macro uncertainty.
As we prepare for the upcoming peak travel season, we continue to see positive signals of intent and our own data that we find encouraging.
While travelers are just starting to kick off the peak planning period for summer holidays summer travel intent is already significantly higher than last year at this time by advanced planners.
Our data also suggests that share of international travel intent is returning to pre pandemic levels in the U S and EMEA and APAC intend to travel is more than double than last summer.
We're also observing an increase in experiences searches year over year, particularly in Europe .
Of course, there remains ongoing uncertainty about the macro environment, regardless, we're focused on the things we can control executing on our strategy and delivering on our plan for each of our segments.
As I close out my remarks, I want to thank our teams for their growing engagement levels in energy for the work we're fortunate to do together every day.
As I travel across our offices to discuss our strategic priorities and execution plans continue to be impressed with our team's curiosity action orientation and passion for our purpose all grounded in the relationships, we build with travelers as they navigate their travel decisions and connect to our partners.
We are confident in our progress and look forward to keeping you updated in the coming quarters with that I will turn the call over to Mike.
Thanks, Matt and good morning, everyone.
I will review the results of the first quarter, including segment commentary and provide some color on the trends we're seeing in the second quarter.
All growth rates for 2023 are relative to the comparable period in 2022, unless otherwise indicated.
Now on to Q1.
We delivered results that were in line with our expectations consolidated revenue was $371 million, reflecting a 42% growth rate or a 46% on a constant currency basis, and adjusted EBITDA was $33 million or 22% growth rate and represented a margin of 9%.
Our results reflect a healthy travel environment, particularly in experiences category, where we continue to lean into a very large market opportunity.
Turning to the segment performance for the first quarter <unk>.
Tripadvisor core delivered a strong quarter with revenue of 244 million, which represented 28% growth.
Branded hotels grew 24% with solid execution in both hotel meta and our <unk> offerings and.
In hotel meta quarter was helped by an easier year over year comparison in January and to a lesser extent in February due to omicron, while March grew at a more normalized level.
Hotel meta performance was consistent across regions with some higher growth in APAC, given the broader opening of travel in the region.
We saw particularly strong performance in experiences in dining which grew 65% in the quarter.
This was due to growth in our experiences revenue, which was up over 100% in Q1, primarily driven by marketing investment as well as improvements to conversion rates.
These improvements were largely related to better presentation and matching of experienced recommendations to our customers.
Display and platform grew 15%, which was impacted slightly by the timing of several new media deals as backlog in the quarter remained strong.
Our other revenue grew 30% driven by growth in our cruise offerings, which has seen strong performance as the cruise industry continues its recovery.
Adjusted EBITDA and to provide provide a core was $72 million or 30% of revenue just above 29% of revenue in the same period a year ago.
The slight margin improvement was driven by fixed cost leverage despite sustained performance marketing spend to drive experiences growth.
<unk> revenue was $115 million, reflecting growth of 105% or 115% on a constant currency basis.
Gross booking value or <unk> was over $800 million and exceeded expectations.
Revenue growth was higher than GBP growth, primarily due to increased take rates year over year.
The increase in take rates is due to greater adoption of our programs that allows suppliers to advertise more effectively on our platform and to a lesser extent an increase in mix shift towards non U S destinations.
Additionally, this quarter, we saw a step up in average book Windows compared to both last year and Q1 of 2019.
Which we believe is reflective of a continued healthy travel market.
Adjusted EBITDA loss for the <unk> segment was $30 million.
Which represents year over year margin improvement, primarily driven by leverage in people costs.
Sales and marketing expenses as a percent of revenue increased year over year, primarily due to the start of our brand campaigns in the second half of 2022 and will continue in 2023.
We saw leverage in performance marketing costs as we continued to diversify our acquisition channels outside of traditional Sem.
As a reminder, total sales and marketing expenses incurred in period generally benefit recognize revenue in future periods.
We like the returns and unit economics improvements we are seeing.
And are leaning into the large experiences opportunity through sales and marketing investments to drive new and repeat customer bookings that can further accelerate share gains in this attractive market.
We are encouraged by recent cohort performance and believe our investments will create a large repeat customer base over time that can ultimately drive very profitable business for us at scale.
Ah repeat customers, who book at a higher average item value the new customers often returned to us through free channels at higher rates than our new customers are and are therefore more profitable.
As repeat customer bookings become a greater share of our total bookings, we expect to drive more and more leverage.
We believe that as we build brand awareness and drive more direct and new and repeat customer bookings customer unit economics will continue to improve.
In the near term, we're investing to build a large customer base deliver more value to our suppliers and improve our product.
At support revenue in Q1 was $35 million, reflecting year over year growth of 35% and 41% on a constant currency basis.
Performance was driven by year over year bookings growth of approximately 24% and healthy growth in revenue per booking.
We were pleased with this performance considering the disruption in France from the recent strikes and other macro volatility in Europe .
Adjusted EBITDA loss for the fourth was $9 million, which represents improved margins year over year and was primarily driven by leverage in people costs and to a lesser extent, a onetime cost benefit in cost of revenue.
This leverage was partially offset by the timing of planned brand investments between Q1 and Q2 this year versus last year.
Turning now to consolidated expenses.
Cost of revenue Levered by about 60 basis points due to greater head count absorption and our Viator brand.
Sales and marketing expenses de Levered by about 525 basis points, primarily due to the increase in <unk> marketing spend including brand, which more than offset leverage in people costs.
Technology and content and general and administrative expenses Levered by approximately 450 basis points, primarily driven by people costs.
Consolidated adjusted EBITDA in Q1 was $33 million or 9% of revenue compared to 10% of revenue for Q1 of last year.
Now onto our cash and liquidity position.
Free cash flow for the quarter was $119 million, which is up meaningfully versus $72 million in Q1 of 2022. This.
This year over year improvement was primarily due to an increase in cash received in advance from customers for experienced bookings within deferred revenue and deferred merchant payables.
We ended the quarter with a strong balance sheet with just over $1 1 billion in cash.
Moving to recent trends and thoughts for the second quarter.
As a reminder, Q2 is a tougher year over year comparable period as last year, we witnessed a surge of travel demand as we emerged from the impact of <unk> in Q1.
As such we are expecting growth rates to moderate through the second quarter of this year.
Tripadvisor core revenue saw low single digit growth in April , which we expect to closely mirror growth for the quarter.
For <unk> revenue April growth rate was over 60%, which we expect to step down meaningfully through the quarter as we move into a difficult compare versus last year for.
For the fourth revenue, we saw a little over 20% growth rate in April and we expect this to be fairly consistent through the quarter.
For Q2 consolidated adjusted EBITDA margin, we're expecting to see a sequential seasonal improvement in margin, but about a six to eight step down year over year.
Contributing to the margin headwind is approximately three percentage points due to our COVID-19 subsidy benefit of approximately $11 million in the fourth and a one time non income related tax benefit of approximately $2 million and Tripadvisor core both recorded in Q2 of 2022 with the remaining impact of approximately three.
Two to four percentage points due to primarily the investments and viator growth in marketing and brand spend.
For Q2, adjusted EBITDA margin at Tripadvisor core.
We're expecting to see a sequential seasonal improvement but.
But about a six to seven point step down in margin year over year.
This is largely due to a difficult compare and was anticipated in our margin expectation for the full year.
A little over half of the margin step down is due to the impact of phasing of hiring last year as head count increases were weighted to the back half of the year.
This was magnified by stronger sequential increase in revenue from Q1 to Q2 in 2022 as we emerged from omicron versus this year's expected sequential pickup in revenue.
The remaining margin pressure is due to increased investment in performance marketing to drive experiences growth as well as the aforementioned cost benefit in Q2 of last year.
We are reaffirming our expectation for the full year of 2023, adjusted EBITDA margins for both consolidated and Tripadvisor core to remain approximately flat with 2022 margins our outlook remains consistent with expectations a few months ago.
To conclude we believe Q1 was a solid quarter and we're on track to deliver expectations for the year as we continue to manage the business that reflects our segment strategies with that I'll pass the call back over to the operator for Q&A.
Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.
Okay.
The first question comes from Lloyd Walmsley from UBS.
Your line is open.
Alright. Thanks.
Have kind of a I guess, a two part question on generative AI and I guess the first part is just like it seems like a huge hurdle territory to reinvent planning you guys seem like you have a lot of good assets.
Put to work here so anything more you can share on just how you're thinking about creating new product experiences user.
Using that and like how big of a team you have focused on that and the second part is just kind of on the on the more defensive side, yes.
It also seems like something that could open the door for new applications from other people. So what steps are you guys taking to protect your content from getting crawls in use by other players like what are you doing what can you do.
Anything you guys can share there would be great. Thanks.
Supercharge that.
And of course.
We can deliver that in context, and so as we unlock the value we're thinking about how does the technology integrate into our UX, how do we embedded into the product experience and drive engagement. We think it can be accelerant it'd be an accelerant and ultimately we want to be in the tools that.
Travelers use to fully plan their itineraries into and I mentioned, the importance of our relationships of trust.
There's a lot of people experiment with generated by I think those who can deliver results that are meaningful and reliable and do that at scale are going to be in a good position and we just think that the baseline of the I mentioned the billion <unk>.
<unk> data profiles that is a great start for us to do it but with us with any technology. There is a lot of iteration, they're going to be areas of opportunity beyond product.
And I think about productivity improvements I think about certainly we can accelerate how fast we move it super early we're going to iterate and learn and I think that.
When we think about our content.
We have choices about who gets to.
Crawl and index are content and under what terms and so will always be thinking about how to take the content that we have it's valuable and make sure that we are rewarded for it in the right way. So again, we recognize both the opportunity and the questions that need to be answered and we're going to be saying more about this ah.
Quarter by quarter.
Okay. Thank you.
Okay. The next question.
And our next question comes from the line as Jamie Lee from Missoula change. Your line is now open.
Thanks for taking my questions to hear can you guys talk about maybe ADR trends.
By geography, what are you, saying you know into the hotel pricing and the major reach in your operating and also second thing by a toy sounds like you guys are making good traction on advertising how should we think about the opportunity of that this is advertising intensive take wait a little longer term. Thank you.
So James I didn't catch that second part of the question was that advertise.
Second part is the advertising take great for by a tour how should we think about that for long term of the business. Thanks guys.
Okay, Yeah, I'll take I'll take the first part, but really I guess the question is what are we seen in our in our primary hotel auction and BTB business.
As we move through the quarter, we have seen a period of pricing and pretty stable as we move through Q2, we are expecting volumes to come down right as we move through that tougher compare with pricing to be a bit more modestly modestly up on a year over year basis. So.
You asked about advertising take right in <unk>.
Make the point that.
We have programs that are intended to help quality operators get the most exposure on our platform and those programs are obviously drill delivering our take right and it's increasing and that's because they are seeing performance and the teams are very focused on continuing to drive that and I think we're really pleased.
With the number of operators that are that are taking us up on that I don't think we've necessarily put any of those quantified. It in the past I don't think we intend to but but I would say is it's very healthy.
Great. Thanks, so much.
Please wait for your next question.
The next question.
Hello.
Great. Thanks for taking my question two two if I may just just one just on the core auction did you notice any difference in bidding behavior in certain geography's by some of your partners and then just moving back to the bias for advertising.
Couple of things on there how should we think about investing in two brands by it or any tripadvisor experiences and can you give us any metrics around your cack payback on by a tour. Thanks.
Yeah, I'll I'll take the first one.
As I said earlier.
We don't comment specifically on obviously partner Vinnie behaviors other than to say Q1 was unexpected quarter and we saw a pretty consistent to our expectations.
Which is you know.
Strong volumes, but declining year over year right as we get it as a move to the quarter as we laugh dot com and pricing still remained remain.
Remained strong.
The pricing year over year benefit, we do expect a moderate as we move into cue too but.
But as we see it was a kind of a expected quarter from our auction business in general.
So we feel pretty good about that.
And on via tour advertising I think what you are all getting at is the is the brand spend and so obviously, we have been investing both to acquire new customers to build out the brand to drive awareness in the categories and you'll obviously, we're doing that because we're very excited about the shift we're seeing in the potential for stronger.
Unit economics, and so what that means first of all we're always going to a fiscal discipline when we evaluate brand spent.
And we're going to look at the data and the data is suggesting that.
Our awareness in consideration are growing it's also.
We're getting a really strong indication from brand search SCM clicks.
And it represents.
Yeah, and I guess the last part of your question was on kind of like Paybacks Ltvs.
We're obviously not going to comment on that level of detail I would just say.
We're.
And again, we are we are I.
I think continued leaning into the opportunity because we continue to see good economics.
As you know we do think about these things on an LTV basis.
As we look at and a key metric is that repeat rate as to the things are highlighted in my prepared remarks.
We'd like to repeat rates, we're seeing they are improving we like the how they're coming back to us.
Through channels that are either free or at a much more efficient basis.
Creating a sticky client basis is very important so we do see the investment of the upfront investment the merits of the upfront investment versus the payback.
Larger largely on the road and.
I think we know that.
Scale is really important in these businesses and is it really important in marketplaces and as we drive to scale benefits, we feel pretty strongly that.
Those are important for long term winning in this category and we will continue to kind of do it that way.
Thank you.
Yeah.
Please hold for your next question.
The next question comes from Marianne Lou from Barclays. Maria. Please go ahead.
Thanks for taking the questions. The first one is on.
Bioterror.
You mentioned in April aggressive over 60%.
Expected to step down.
The next couple of months. So just curious if you could give some color.
On last year's.
How much of a tougher cough was.
May and June compared to April .
Yeah.
I would say May and June was when we really start picking up into the main season.
Download our App and finally, we want to make sure that.
So that's why I wanted to share this with you today.
We don't see that this is a dramatic shift versus last year versus first half second half of last year.
So the idea here is to start with the consumer and to think about what are the <unk>.
And that really meant a more qualified.
And.
Pretty strong at least if you're tracking relatively try 19 for example.
The seasonal uptick I'm, sorry are you referring to Q2 correct Yep got okay, sorry, yeah to start also inquired like what you're seeing the April .
We still in.
In April we still saw good good growth.
But we are expecting to that to come down pretty dramatically right as we move into May and June , which we hit our very tough tough tough comp areas. So.
What I talked about on the call was.
As we move through that lapping period.
For example in both in core and auction.
Encore, we're expecting volumes that come down on a year over year basis pretty meaningfully.
And then pricing to come down as well, but to a lesser extent.
All of this was very much.
In R. As we saw the year shaping very much in the year I think four experiences at core we're expecting a similar type of Ah not similar similar to the auction, but similar in terms of we think about bio tour.
Very strong growth in April , but we do expect to step down as we move through those really tough compare months in May and June .
So I don't want to overstate the April peace, but.
But yeah I think that there is a tougher comp there in may and June .
And then.
Just advice or.
Could you give us the.
Could you give us a sense of the GBP growth in in April .
Gives us a better sense of of how that tracking.
Yeah ask you a question, we we have been given be given approximations on GBP Kevin.
And some of that is just felt maybe a bit competitively sensitive.
We are.
Evaluating as we move forward, giving much more specifics on that GB number of which then you'll be able to calculate very specifically growth rates. So.
That's why.
One of weighed about a specific growth rate I did want to point out though that when you think about these approximations that growth rate is lower on a year over year basis than the revenue due to the take rate improvement year over year.
But that's the reason why we're giving the approximation for now.
Got it and then just a housekeeping you mentioned.
One time costs offset at the Fork in Q1 I think.
Cause I think how large is that.
Is about.
Yeah.
We didn't quantify that but it was just related to a contract.
Renegotiation yeah.
It's fairly small but meaningful for the for the fourth margin okay. Okay. Thanks Bye.
Please hold for the next question.
The next question.
<unk> comes from the line <unk> at Morningstar and please go ahead.
Okay. Good morning, guys. Thanks for taking my question just.
<unk> in the foreign brands it seems that there's a lot of underappreciated value.
Those and I know in the past that there had been talk about crystallizing. The value of those is that something you guys are still considering or thinking about and if so.
What would need to transpire to kind of start to maybe communicate that message. Thanks.
Yes, Mike.
Probably the most of that relates to bite or I think previously communicated thoughts around potentially.
Meaning that out.
I'd say a couple of things.
This is really reiterated what we said in our February call.
We are very much focused on the experience category and how do we maintain and grow leadership in this in this bid in this business in the space.
I think as such we're not really focused on what that how to execute that I think some of that is in the market itself today.
Kind of.
The market is the way they are.
Not an area, where we are very focused on that being said, we're not removing anything.
From the around the possibility, it's just not where area of focus is and we are much more focused on how do we.
Manage these that via tour, how do we manage trip advisor core and what they are doing experiences to really create wider and deeper modes and experiences.
But we will always be open to ideas of thinking about this.
And I just wanted to add Dan I agree with you.
Under appreciated value there and what we're really focused on is making sure that we drive the fundamental underlying improvements in those businesses that ultimately over the medium to long term, we really do crystallized through the performance of the business and that's why we're super excited about the work that's happening by a tour around the product and around.
And.
Our ability to invest in.
Improving consumer engagement and unit economics, and we're driving the fork towards profitability that is our plan to in the back half really start to see the fork hit.
Hit a much better margin profile than we've seen in the past so.
We're focused on the underlying.
Operations of those businesses most specifically.
That makes sense. Thank you.
Please hold for the next question.
The next question comes from the line of Tom Y N D. A Davidson <unk>. Please go ahead.
Hey, This is why is swanson author, Tom Thanks for taking our questions I just have a quick one here I was hoping you could provide an update on by a tourist partnership with Uber, which I believe was announced late last year curious if that's been a needle mover for bias or in any meaningful way or if it's on track as well.
Yeah, I don't know that we would specifically call out any single relationship, but what I can say is that via towards strategy to make sure that we are connecting to the best points of sale for experiences is working and obviously tripadvisor is doing a great job as a storefront provide tour and really driving meaningful growth, but also.
The.
Many many other third parties that we connect to.
Are driving growth in that business as well and so what I would say is overall that strategy is paying off.
Thanks for the question.
Got it thank you.
At this time I would like to turn the call back over to <unk> for further comment.
Thank you all for joining us today and for your questions.
You can see we're excited to continue to execute on our plans and as we approach mid year, we look forward to sharing more about our progress in the next quarter. Thank you all.
Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
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