Q4 2023 TripAdvisor Inc Earnings Call

Operator: Good day, and thank you for standing by. Welcome to the TripAdvisor fourth quarter 2023 conference call. At this time, all participants are in a listen only mode.

Good day and thank you for standing by welcome to the Tripadvisor fourth quarter 2023 conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session. Please press star one one on.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 11 on your telephone and wait for your name to be announced. 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 speaker today, Angela White, VP of IR. Thank you, Josh.

Your telephone and wait for your name to be announced to withdraw. Your question. Please press star. 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 VP of IR.

Angela White: Thank you Josh.

Angela White: Good morning, everyone, and welcome to TripAdvisor's fourth quarter and full year 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.

Angela White: Everyone and welcome to Tripadvisor as fourth quarter, and full year 2023, and financial results call. Joining me today are backhaul Bergh, 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 measure discussed on this call.

Angela White: 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, February 15, 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. Thanks, Angela. And good morning, everyone.

Angela White: 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 February 15, 2020 for 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.

Angela White: 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: Thanks, Angela and good morning, everyone.

Matthew Goldberg: Before I begin, I'd like to address the press release we filed on Monday. We announced that our Board of Directors has formed a special committee to evaluate any proposals resulting from Liberty TripAdvisor Holdings' stated intention to engage in discussions with respect to a potential transaction. We appreciate your understanding that we won't address any questions on this topic today or provide further updates unless we have something definitive to share. Now, I'd like to address our performer.

Matt: Before I begin I'd like to address the press release, we filed on Monday, We announced that our board of Directors has formed a special committee to evaluate any proposals, resulting from Liberty Tripadvisor Holdings stated intention to engage in discussions with respect to a potential transaction. We appreciate your understanding that we won't address any questions on this topic today.

Matt: We'll provide further updates unless we have something definitive to share.

Matt: Now I would like to address our performance we were pleased to exit the year with results that exceeded our expectations Q4 revenue was $390 million, reflecting year over year growth of 10% Q4, adjusted EBITDA was $84 million, 22% of revenue exceeding expectations due to revenue outperformance at brand Tripadvisor.

Matthew Goldberg: We were pleased to exit the year with results that exceeded our expectations. Q4 revenue was $390 million, reflecting year-over-year growth of 10%. Q4 Adjusted EBITDA was $84 million, 22% of revenue, exceeding expectations due to revenue outperformance at Brand TripAdvisor and marketing efficiencies at both Brand TripAdvisor and Viad. For the full year, Consolidated Revenue grew by 20% to an all-time high of $

Matt: <unk> and marketing efficiencies at both brands Tripadvisor and Viator.

Matt: For the full year consolidated revenue grew by 20% to an all time high of $1 8 billion and adjusted EBITDA grew 13% to $334 million.

Matthew Goldberg: And Adjusted EBITDA grew 13% to $334 million. Last year, we made meaningful progress executing against our strategic priorities. We reinforced our market leadership position at Viator while sharpening our focus on smart user acquisition. Viator also finished the year at break-even profitability, achieving the full-year milestone a year earlier than anticipated.

Matt: Last year, we made meaningful progress executing against our strategic priorities, we reinforced our market leadership position in <unk>, while sharpening our focus on smart user acquisition.

Matt: <unk> also finished the year at breakeven profitability, achieving the full year milestone a year earlier than anticipated at.

Matthew Goldberg: At Brand TripAdvisor, we invested in our strategy and delivered promising early proof points while maintaining financial discipline. Finally, at the fork, we delivered revenue gains while significantly improving our profit margin through disciplined cost management and exited the year at break-even for Q4. Our results also reflect how we're building a stronger, more diversified, and defensible position in the large and growing global travel and experiences market. We have a unique and leading position in the high-growth experiences category given the breadth of TripAdvisor and the depth of Viator. Within Brand TripAdvisor, Experiences, along with other partner offerings beyond our legacy HotelMeta offering, are now contributing almost half of the revenue versus less than one-third in 2015, reflecting our ability to diversify our monetization and reduce dependence on HotelMeta revenue.

Matt: That brand Tripadvisor, we invested in our strategy and delivered promising early proof points, while maintaining financial discipline.

Matt: Finally at <unk>, we delivered revenue gains while significantly improving our profit margin through disciplined cost management and exited the year at breakeven for Q4.

Matt: Our results also reflect how we are building a stronger more diversified and defensible position in the large and growing global travel and experiences industry.

Matt: We have a unique and leading position in the high growth experiences category, given the breath of Tripadvisor and the depth of Viator within brand Tripadvisor experiences along with other partner offerings beyond our legacy hotel meta offering are now contributing almost half of the revenue versus less than one third in 2015.

Reflecting our ability to diversify our monetization and reduce dependence on hotel meta revenue at.

Matthew Goldberg: And across the group portfolio, Viator and The Fork have grown to nearly 50% of our revenue in 2023 versus less than 10% in 2015. And they've each reached the scale to deliver increasing profitability. Let me highlight our accomplishments and look ahead to 2024 priorities for each sector. At Brand TripAdvisor, we kicked off 2023 by introducing a multi-year strategic vision that focuses on delivering world-class guidance products to deepen engagement with our audience and fuel diverse monetization. Over the course of the year, we delivered tangible progress through product innovation. We relaunched our TRIPS tool for creating itineraries and integrated generative AI deeply into the user experience.

Matt: And across the group portfolio Viator in the fork have grown to nearly 50% of our revenue in 2023 versus less than 10% in 2015, and they've each reached the scale to deliver increasing profitability.

Matt: Let me highlight our accomplishments and look ahead to 2024 priorities for each segment at.

Matt: That brand Tripadvisor, we kicked off 2023 by introducing a multiyear strategic vision that focuses on delivering world class guidance products to deepen engagement with our audience and fueled diverse monetization path.

Matt: Over the course of the year, we delivered tangible progress through product innovation, we relaunched our trips tool for creating itineraries and integrated generative AIG deeply into the user experience.

Matt: I previously cited a few proof points that demonstrate the impact and were pleased that each of these has continued to improve over time.

Matthew Goldberg: I previously cited a few proof points that demonstrate the impact, and we're pleased that each of these has continued to improve over time. First, the average revenue per TRIPS user shortly after launch was three times higher than the average member. That has now increased to closer to five times, and our average member already monetizes at approximately ten times the rate of the average non-member.

Matt: The average revenue per trips user shortly after launch was three times higher than the average member that has now increased to closer to five times and our average member already monetize at approximately 10 times the rate of the average non member.

Matt: Second we saw a 100% increase in the number of daily users, who generated and saved an itinerary specifically with AI in the back half of the year with limited marketing efforts and the majority are now engaging with this tool in our app.

Matthew Goldberg: Second, we saw a 100% increase in the number of daily users who generated and saved an itinerary specifically with AI in the back half, with limited marketing effort, and the majority are now engaging with this tool in our app. Finally, we continue to see growth in the return rates for Trip users, whose repeat rates are meaningfully higher than users who don't use the tool. During the year, we also introduced generative AI-driven hotel review summaries, an important example of how we're uniquely positioned to use technology to draw differentiated insights from our proprietary database of quality content and behavioral data. Across the 30,000 plus hotels where this is currently available, we're seeing early but strong positive indications. User satisfaction scores are nearly 75%, which is even higher than the strong initial scores for our Trips feature.

Matt: Finally, we continue to see growth in the return rates for trip users, who is repeat rates are meaningfully higher than users who don't use the tool.

Matt: During the year. We also introduced generative AI driven hotel review summaries and important example of how we are uniquely positioned to use technology to drive differentiated insights from a proprietary database of quality content and behavioral data.

Matt: Cross the 30000, plus hotels, where this is currently available we are seeing early but strong positive indicators user satisfaction scores are nearly 75%, which is even higher than the strong initial scores for our trips feature at launch.

Matt: We continue to bring more travelers to our experiences pages in 2023 $180 million more travelers use tripadvisor to shop for experiences than in 2022 as a result, we drove revenue growth rates higher than any other category in the segment at approximately 45.

Matt: <unk>.

Matthew Goldberg: We continue to bring more travelers to our experiences pages. In 2023, 180 million more travelers will use TripAdvisor to shop for experiences than in 2022. As a result, we drove revenue growth rates higher than any other category in the segment at approximately 45%.

Matt: Importantly, this strong demand reflects the opportunity we have to match additional supply, adding relevant new inventory and partners across geographies and categories, representing meaningful upside for experiences on tripadvisor.

Matt: 2024 will be a year of acceleration for brand Tripadvisor here are a few of our priorities.

Matt: First we will deliver a differentiated experience in the mobile app.

Matthew Goldberg: Importantly, this strong demand reflects the opportunity we have to match additional supply, adding relevant new inventory and partners across geographies and categories, representing meaningful upside for experiences on TripAdvisor. 2024 will be a year of acceleration for Brand TripAdvisor. Here are a few of our priorities.

Matt: To put it simply our existing App users are more engaged and more valuable than users on other services our surfaces.

It accounts for a relatively small percent of our total MA, but a disproportionate number of reviews and trips created at 30% and over 60% respectively. Our aim is to deliver an essential app for travelers that convinced as more of our audience to download and use the app as the best end to end trip companion.

Matt: Powered by AI.

Matt: Second we'll begin to shift our marketing in support of our engagement led strategy historically, we've optimized everything from our paid search spend to CRM to drive immediate click and display revenue.

Matthew Goldberg: First, we'll deliver a differentiated experience in the mobile app. To put it simply, our existing app users are more engaged and more valuable than users on other services. They account for a relatively small percent of our total MAUs but a disproportionate number of reviews and trips created at 30% and over 60% respectively. Our aim is to deliver an essential app for travelers that convinces more of our audience to download and use the app as the best end-to-end trip companion, powered by AI.

Matt: With the progress we've made against our product, we now have the opportunity to target higher value audiences more directly and drive more users to sign up and sign in as members to download our app and to begin planning a trip because we know each of these behaviors is orders of magnitude more valuable to us than same session click.

Matt: <unk>.

Matt: Finally, we will leverage the investments we've made in data and AI to deliver a more personalized experience for our users, particularly our highly engaged members. This starts with recognizing them for their contributions to our community and extends to broader benefits and rewards we can offer through our free membership program.

Matthew Goldberg: Second, we'll begin to shift our marketing in support of our engagement-led strategy. Historically, we've optimized everything from our paid search spend to CRM to drive immediate click-and-display revenue. With the progress we've made against our product, we now have the opportunity to target higher-value audiences more directly and drive more users to sign up and sign in as members, download our app, and begin planning a trip because we know each of these behaviors is orders of magnitude more valuable to us than same session clicks. Finally, we'll leverage the investments we've made in data and AI to deliver a more personalized experience for our users, particularly our highly engaged members This starts with recognizing them for their contributions to our community and extends to broader benefits and rewards we can offer through our free membership program.

Matt: It also includes new ways to engage with our product, including an AI driven conversational search experience and iterative trip planning capabilities that better integrate commerce opportunities by helping travelers find the right hotel experience or restaurant to round out their itinerary.

Matt: Next at via <unk> in 2023, we made significant progress to reinforce our leadership position in experiences by investing in improving our product for both travelers and operators and continuing to drive our scale.

Matt: This year was an impressive year of revenue growth at 49%, bringing <unk> to our revenue to 41% of total group revenue.

Matthew Goldberg: It also includes new ways to engage with our product, including AI-driven conversational search and iterative trip planning capabilities that better integrate commerce opportunities by helping travelers find the right hotel, experience, or restaurant to round out their itinerary. Next, at Viator, in 2023, we made significant progress to reinforce our leadership position in experiences by investing in and improving our product for both travelers and operators, and continuing to drive our scale. This year was an impressive year of revenue growth at 49%, bringing Viator revenue to 41% of total group revenue. GBV grew to over 40% to more than $3.7 billion, and we also reached break-even profitability for the full year earlier than anticipated.

Matt: <unk> grew to over over 40% to more than $3 7 billion and we also reached breakeven profitability for the full year earlier than anticipated.

Matt: Milestone reflects the power of the model and the operating cost leverage our lean fixed cost structure affords.

Matt: On the demand side, we optimized our brand campaign growing our awareness and reinforcing our position as the most well known experiences brand in the U S. We.

Matt: We made improvements across nearly every part of the shopping experience on every surface.

Matt: We've enhanced our sort for better discover ability matured the app and grew its share of bookings and improved the post booking experience across the board.

Matt: These and other updates contributed to double digit growth in conversion across the business.

Matt: Our new rewards program. Meanwhile, is driving value for customers.

Matt: The early proof points drove mid teens improvement in retention for travelers using the program.

Matthew Goldberg: This milestone reflects the power of the model and the operating cost leverage our Lean Fixed Cost Structure affords. On the demand side, we optimized our brand campaign, growing our awareness and reinforcing our position as the most well-known experiences brand in the U.S. We made improvements across nearly every part of the shopping experience, on every surface. We've enhanced our sort for better discoverability, matured the app and grown its share of bookings, and improved the post-booking experience across the board.

Matt: And our most loyal users are our fastest growing customer segment. They are more likely to come through unpaid and immediately profitable channels and spend more than first time users driving improvement in our unit economics.

For operators, we launched our latest version of the marketing program accelerate.

Matt: We consulted more than 5000 operators in its creation and this consideration shows in the results well over 50% of eligible products participate in the program, which contributes which continues to support our healthy take rate.

Matthew Goldberg: These and other updates contributed to double-digit growth and conversion across the business. Our new rewards program, meanwhile, is driving value for customers. The early proof points drove mid-teens improvement in retention for travelers using the program. [inaudible] For operators, we launched our latest version of the marketing program, Accelerate. We consulted more than 5,000 operators in its creation, and this consideration shows in the results.

Matt: With the largest product inventory and supply base available anywhere the value. We're driving for operators is clear churn rates are low and supplier and product counts are steadily increasing.

Matt: In <unk> in 2024, we remain focused on growing our scale balancing growth profitability and market share as the global market leader in experiences.

With an eye on profitable growth, we expect to drive improvements in unit economics through a combination of initiatives focused on lowering customer acquisition costs, increasing retention and enhancing lifetime value.

Matthew Goldberg: Well over 50% of eligible products participate in the program, which continues to support our healthy take-home. With the largest product inventory and supply base available anywhere, the value we are driving for operators is clear, churn rates are low, and supplier and product counts are steadily increasing. In Viator in 2024, we remain focused on growing our scale, balancing growth, profitability, and market share as the global market leader in experiences. With an eye on profitable growth, we expect to drive improvements in unit economics through a combination of initiatives focused on lowering customer acquisition costs, increasing retention, and enhancing lifetime value. On the demand side, our focus is on an improved experience along the customer journey, from first-time interaction to long-standing returning customers. These are unique experiences for most travelers, so it's important that at first interaction, we begin to build our relationship of trust and value so they return to book their next memorable experience.

Matt: On the demand side, our focus is on an improved experience along the customer journey from first time interaction to long standing returning customers. These are unique experiences for most travelers. So it's important that at first interaction we begin to build a relationship of trust and value. So they returned back to book.

Matt: Their next memorable experience.

We will do this by leveraging our group customer data platform and delivering a more robust personalized experience for travelers.

Matt: We will also continue to focus on enhancing our app value proposition, we know that app users convert to bookers at a rate higher than desktop or mobile web users. So we'll continue to emphasize app engagement opportunities.

Matt: Yes.

Matt: We will also continue to optimize marketing spend and our overall channel strategy focusing on acquiring the highest intent customers and continuing to drive awareness, we expect to see improvement in unit economics at our multichannel marketing investments gain traction.

On the operator side will continue to drive value through programs aimed at helping operators increased their exposure through features such as incremental performance tracking and insights the.

Matt: The combination of work to enhance the experience for both sides of the marketplace should help operators continue to see value and remain loyal overtime.

Matthew Goldberg: We'll do this by leveraging our group customer data platform and delivering a more robust, personalized experience for travelers. We'll also continue to focus on enhancing our app value. We know that app users convert to bookers at a rate higher than desktop or mobile web users, so we'll continue to emphasize app engagement.

Matt: Finally at the Fork in 2023, we began the transition to deliver profitable growth leveraging past investments and improving our unit economics, while maintaining our leadership position in dining in Europe.

Matt: We grew revenue 19% in constant currency and also delivered significant margin improvement of 22 percentage points, a swing of $25 million in EBITDA as a result of disciplined cost management.

Matthew Goldberg: We'll also continue to optimize marketing spend and our overall channel strategy, focusing on acquiring the highest intent customers and continuing to drive awareness. We expect to see improvement in unit economics as our multi-channel marketing investments gain traction. On the operator side, we'll continue to drive value through programs aimed at helping operators increase their exposure through features such as incremental performance tracking and in. The combination of work to enhance the experience for both sides of the marketplace should help operators continue to see value and remain loyal over time. Finally, at the fork, in 2023, we began the transition to deliver profitable growth, leveraging past investments and improving our unit economics while maintaining our leadership position in dining in Europe. We grew revenue 19% in constant currency and also delivered a significant margin improvement of 22 percentage points, a swing of $25 million in EBITDA, as a result of disciplined cost management.

Matt: During 2023, we continued to rationalize our footprint to focus on priority European markets modernized our technology platform to drive speed of product innovation and launch new products and services for both diners and restaurant partners.

Matt: The team shipped more features in the last six months than they had in the previous six years, resulting in a stronger value proposition for both sides of the marketplace.

Matt: For diners, we focused on improving the app user experience, resulting in higher conversion rates were 75% of our bookings are made.

Matt: For restaurants, we stabilized churn and drove more than 20% growth in <unk> revenue and new restaurant signatures by migrating our ERP to a single platform introducing new features for payments and yield management and improving our sales efficiency.

Matt: At the Fork in 2024 will continue to make steady transition to annual profitable growth by focusing on our largest opportunity markets marketing efficiency sales productivity and product led innovation.

Matthew Goldberg: During 2023, we continued to rationalize our footprint to focus on priority European markets, modernized our technology platform to drive speed of product innovation, and launched new products and services for both diners and restaurants. The team shipped more features in the last six months than they had in the previous six years, resulting in a stronger value proposition for both sides of the market. For diners, we focused on improving the app user experience, resulting in higher conversion rates where 75% of our bookings are made.

Matt: We will evolve our marketing strategy to increase our efforts around repeat diners, while taking a measured approach to brand investments and prioritize markets for.

Matt: <unk> four diners will focus on driving App based engagement and conversion through quality content personalization recommendations and incentives to return.

Matt: For restaurants will focus on value add ERP features value based pricing options revenue management features and the ability to market special offers to our growing base of high intent diners.

Matt: We expect our combined initiatives to drive.

Matt: Growth in our average revenue per restaurant and continue to improve our unit economics as we leverage the benefit of our streamlined cost base.

Matthew Goldberg: For restaurants, we stabilized churn and drove more than 20% growth in B2B revenue and new restaurant signatures by migrating our ERB to a single platform, introducing new features for payments and yield management, and improving our sales efficiency. At the Fork in 2024, we'll continue to make a steady transition to annual profitable growth by focusing on our largest opportunity markets, marketing efficiency, sales productivity, and product-led innovation. We'll evolve our marketing strategy to increase our efforts around repeat diners, while taking a measured approach to brand investments in prioritized markets. For diners, we'll focus on driving app-based engagement and conversion through quality content, personalization, recommendations, and incentives to return. For restaurants, we'll focus on value-add ERB features, value-based pricing options, revenue management features, and the ability to market special offers to our growing base of high-intent diners.

Matt: To close we're motivated by our progress in 2023, and we believe that our strategies are delivering results in.

Matt: In 2024, we will continue to pursue a disciplined financial profile with investment for longer term growth and transformation across the portfolio.

Matt: We believe that travel has a sustainable long term growth path ahead in.

Matt: In 2023, we saw healthy underlying demand despite the backdrop of macro uncertainty, which is testament to consumers prioritizing travel over other discretionary categories.

Matt: Our traveler surveys reflect steady travel and spending intent in 2024 with a focus on experiences as a central component.

Matt: We believe this puts tripadvisor group in an advantaged position as we build on our vision to be the world's most trusted source for travel and experiences.

Matt: And now I'll turn the call over to Mike.

Mike J. Olson: You, Matt and good morning, everyone I'll start by reviewing our Q4 and full year 2023 performance and then I'll provide high level thoughts on 2024.

Michael Noonan: We expect our combined initiatives to drive growth in our average revenue per restaurant and continue to improve our unit economics as we leverage the benefit of a streamlined cost structure. To close, we're motivated by our progress in 2023, and we believe that our strategies are delivering results. In 2024, we'll continue to pursue a disciplined financial profile with investment for longer-term growth and transformation across the portfolio. We believe that travel has a sustainable, long-term growth path ahead. In 2023, we saw healthy underlying demand despite the backdrop of macro uncertainty, which is testament to consumers prioritizing travel over other discretionary categories. Our traveler surveys reflect steady travel and spending intent in 2024, with a focus on experiences as a central component. We believe this puts TripAdvisor Group in an advantageous position as we build on our vision to be the world's most trusted source for travel and experiences. Now, I'll turn the call over to Mike. Thank you, Matt. And good morning, everyone.

Mike J. Olson: All growth rates for 2023 are relative to the comparable period in 2022, unless otherwise indicated.

Mike J. Olson: Q4, consolidated revenue was $390 million reflect reflecting growth of 10% or 8% on a constant currency basis, adjusted EBITDA was $84 million or 22% of revenue and 10 percentage points higher than last year.

Mike J. Olson: Consolidated performance was higher than our expectation primarily due to a more favorable traffic mix at branch of advisor and disciplined marketing spend at <unk>.

Turning to segment performance for the quarter brand Tripadvisor delivered revenue of $218 million.

Mike J. Olson: Approximately flat year over year Rev.

Mike J. Olson: Revenue in branded hotels was $135 million a decline of 4% driven by low single digit decline in hotel meta and flat to slightly down performance in hotel <unk>.

Mike J. Olson: Hotel meta performance was driven by sustained pricing strength and growth in both free and paid channels, which was offset by lower click volumes, primarily in paid channels. As we continue to manage these channels for profitability by maintaining consistent ROE as targets.

Mike J. Olson: From a revenue perspective growth in hotel meta in the U S and rest of World was flat to slightly up while EMEA declined in line with prior quarters.

Mike J. Olson: Importantly revenue from free channels remained stable.

Mike J. Olson: As a result hotel meta contribution profit margin was slightly higher year over year.

Michael Noonan: I'll start by reviewing our Q4 and full year 2023 performance, and then I'll provide high-level thoughts on 2020. All growth rates for 2023 are relative to the comparable period in 2022, unless otherwise indicated. Q4 consolidated revenue was $390 million, reflecting growth of 10% or 8% on a constant currency basis. Adjusted EBITDA was $84 million, or 22% of revenue, and 10 percentage points higher than last year. Consolidated performance was higher than our expectation, primarily due to a more favorable traffic mix at Brand TripAdvisor and disciplined marketing spend at Viator. Turning to segment performance for the quarter, Brand TripAdvisor delivered revenue of $218 million, approximately flat year-over-year. Revenue in branded hotels was $135 million, a decline of 4%, driven by a low single-digit decline in hotel meta and flat to slightly down performance in hotel B2B.

Mike J. Olson: Media and advertising revenue grew 6% to $35 million.

Mike J. Olson: Both in the quarter was more normalized.

Mike J. Olson: A sequential step down that we expected primarily due to the recovery pattern and the broader media and advertising sector.

Mike J. Olson: Experiences in dining revenue grew 12% to $38 million with experiences revenue growing approximately 20% in the midst of a challenging macro environment.

Mike J. Olson: Dining revenue slightly declined as we continued realigning our sales model and our <unk> business as discussed on our last call.

Mike J. Olson: Other revenue was flat year over year at $10 million growth in cruise was 10% in the quarter offset by sustained revenue pressure and a remaining category offerings due to our strategic de emphasis.

Mike J. Olson: Adjusted EBITDA in the brand provider segment was $69 million or 32% of revenue.

Mike J. Olson: Adjusted EBITDA margin improved by approximately 325 bps year over year due to strong revenue performance and our free channels as well as leverage in head count and other fixed costs.

Mike J. Olson: Turning now to <unk>.

Mike J. Olson: Q4 revenue was $161 million, reflecting growth of 27% or 25% on a constant currency basis.

Mike J. Olson: Gross booking value or <unk> grew 20% to approximately $720 million driven primarily by volume growth.

Michael Noonan: Hotel Meta-Performance was driven by sustained pricing strength and growth in both free and paid channels, which was offset by lower click volumes, primarily in paid channels, as we continue to manage these channels for profitability by maintaining consistent ROAS targets. From a revenue perspective, growth in Hotel Meta in the U.S. and rest of the world was flat to slightly up, while EMEA declined in line with prior quarters. Importantly, revenue from free channels will remain stable.

Mike J. Olson: The <unk> and booking growth performance in the quarter was impacted by the onset of the middle East conflict and its ripple effects in other European destinations, where travel advisory warnings were issued.

Mike J. Olson: We also drove some marketing efficiencies in the quarter that impacted <unk> and booking growth.

Mike J. Olson: In Q4, GBP growth from repeat travelers substantially outpaced GDP growth from new travelers.

Mike J. Olson: Compared to our new travelers are repeat travelers book more items per trip.

Mike J. Olson: They buy more expensive products.

Mike J. Olson: And they have higher propensity to repeat with us.

Mike J. Olson: All of which gives us growing confidence that our efforts increasing scale and growing travel lifetime value are working.

Michael Noonan: As a result, HotelMedic's contribution profit margin was slightly higher year over year. Meanwhile, media and advertising revenue grew 6% to $35 million. Growth in the quarter was more normalized but a sequential step down that we expected primarily due to the recovery pattern in the broader media and advertising sector. Experiences revenue grew 12% to 38.8, with experiences revenue growing approximately 20% in the midst of a challenging macro environment. Dining revenue slightly declined as we continued realigning our sales model in our B2B business, as discussed on our last call. Other revenue was flat year-over-year at $10 million.

Mike J. Olson: We will also continue to focus on acquiring large new traveler cohorts, given the attractive size of the market opportunity and our track record of converting new travelers to repeat travelers overtime.

Mike J. Olson: We will do so with a disciplined approach.

Mike J. Olson: Responding to the quality of traffic, we observe and remain flexible as we move through the year.

Mike J. Olson: Adjusted EBITDA by towards $15 million.

Mike J. Olson: 9% of revenue a significant margin improvement year over year, largely due to the profitability flow through from the aforementioned GBP mix in the quarter.

Mike J. Olson: As we have discussed on prior calls <unk> profitability is impacted by the size and mix of new traveler acquisition.

Michael Noonan: Growth in crews was 10% in the quarter, offset by sustained revenue pressure in our remaining category offerings due to our strategic deemphasis. Adjusted EBITDA in the TripAdvisor brand was $69 million, or 32% of revenue. Adjusted EBITDA margin improved by approximately 325 bps year-over-year due to strong revenue performance in our free channels as well as leverage in headcount and other fixed costs. Turning now to Bio

Mike J. Olson: As future growth becomes increasingly driven by repeat bookers, we expect to see attractive and sustainable margin flow through driven by these large and growing repeat cohorts.

Mike J. Olson: <unk> Q4 revenue was $39 million, reflecting growth of 18% and 10% on a constant currency basis.

Mike J. Olson: Revenue growth was driven by a balanced mix of both volume and pricing.

Mike J. Olson: Adjusted EBITDA was breakeven in the quarter, an improvement of $15 million year over year, which was driven by continued focus on improving unit economics on both the supply and demand side of the marketplace and prudent cost control.

Michael Noonan: Q4 revenue was $161 million, reflecting growth of 27% or 25% on a constant currency basis. Gross Booking Value, or GBV, grew 20% to approximately $720 million, driven primarily by volume growth. The GBV and booking growth performance in the quarter was impacted by the onset of the Middle East conflict and its ripple effects in other European destinations where TravelAdvisor warnings were issued. We also experienced some marketing deficiencies in the quarter that impacted GVV and booking growth.

Mike J. Olson: We're very pleased with the work the teams have done over the year to position this segment for profitable growth in 2024.

Mike J. Olson: Now turning to consolidate expenses for the quarter.

Mike J. Olson: Cost of revenue deleverage modestly due to increased direct costs related to certain media campaigns and cloud migration related expenses at branch of advisor as well as the increased mix of vital related costs as a percent of consolidated revenues.

Mike J. Olson: Sales and marketing cost as a percent of revenue were approximately 900 basis points lower driven by more efficient marketing spend across each brand most.

Mike J. Olson: Most notably at branch or provider in the <unk> as well as lower people costs across the brands.

Mike J. Olson: Technology and content costs as a percent of revenue were flat as investments in data and engineering resources and branch of adviser at <unk> remained in line with revenue growth.

Michael Noonan: In Q4, GBV growth from repeat travelers substantially outpaced GBV growth from new travelers. Compared to our new travelers, our repeat travelers book more items per trip, they buy more expensive products, and they have a higher propensity to repeat. All of which gives us growing confidence that our efforts increasing scale and growing travel lifetime value are working. We will also continue to focus on acquiring large, new traveler cohorts, given the attractive size of the market opportunity and our track record of converting new travelers to repeat travelers over time. We will do so with a disciplined approach, responding to the quality of traffic we observe and remaining flexible as we move through the Adjusted EBITDA advisor worth $15 million, or 9% of revenue, a significant margin improvement year-over-year, largely due to the profitability flow-through from the aforementioned GBV mix in the quarter.

Mike J. Olson: G&A expenses as a percent of revenue were approximately 400 basis points lower as a result of our cost savings actions, we implemented at <unk> in the fourth as well as the $8 million loss incurred in Q4 of 2024 related to a targeted payment fraud scheme, which did not reoccur in 2023 and accounted for half of the year.

Mike J. Olson: Year leverage.

Mike J. Olson: During the quarter, we also incurred approximately $4 million in restructuring expenses related to the previously announced actions we implemented at both branch supervisor and the fourth.

Mike J. Olson: Now onto our cash and liquidity position.

Mike J. Olson: Operating cash flow was a deficit of $19 million and free cash flow was a deficit of $35 million driven by normal seasonal trends and deferred merchant payables at <unk>.

Mike J. Olson: During the quarter, we repurchased we repurchased approximately one 3 million shares at an average cost of $8 85 per share totaling approximately $25 million under our current share repurchase program.

Michael Noonan: As we have discussed on prior calls, Viator's profitability is impacted by the size and mix of new traveler acquisitions. As future growth becomes increasingly driven by repeat bookers, we expect to see attractive and sustainable margin flow through driven by these large and growing repeat cohorts. At the fork, Q4 revenue was $39 million, reflecting growth of 18% and 10% on a constant currency basis.

Turning now to our full year performance.

Mike J. Olson: Consolidated revenue grew 20% to $1 8 billion.

Mike J. Olson: As a reminder year over year growth in the first quarter of the year benefited from an easier comparable.

Mike J. Olson: On a segment basis brand Tripadvisor grew 7% to $1 billion <unk> grew 49% to $737 million in the fourth grew 22% to $154 million.

Michael Noonan: Revenue growth is driven by a balanced mix of both volume and and Adjusted EBITDA was break-even in the quarter, an improvement of $15 million year-over-year, which was driven by continued focus on improving unit economics on both the supply and demand sides of the marketplace and prudent cost-cutting. We are very pleased with the work the teams have done over the year to position this segment for profitable growth in 2020. Now turning to consolidate expenses for the, Cost of revenue declined modestly due to increased direct costs related to certain media campaigns and cloud migration related expenses at BrandTripAdvisor, as well as the increased mix of Viator-related costs as a percent of consolidated revenue. However, sales and marketing costs as a percent of revenue were approximately 900 basis points lower driven by more efficient marketing spend across each brand.

Mike J. Olson: Consolidated adjusted EBITDA for the full year was $334 million or 19% of revenue or 100 basis points lower.

Mike J. Olson: And then 'twenty two adjusted EBITDA margin.

Mike J. Olson: Sales and marketing and G&A cost as a percent of revenue were flat, while cost of revenue and technology and content slightly increase as a percent of revenue.

Mike J. Olson: Turning to segment EBITDA for the year branch of advisor delivered $348 million and adjusted EBITDA or 34% of revenue for the year, a combination of investment in data and engineering head count higher cost of revenue in media and advertising and higher cloud migration costs as a percent of revenue drove approximately 200 basis point decline year over year.

Mike J. Olson: <unk>.

Mike J. Olson: <unk> adjusted EBITDA was breakeven for the full year, which was a 200 basis point improvement from last year with increased leverage from people cost and direct marketing costs, which includes both traffic and brand.

Mike J. Olson: Finally at <unk>, we saw significant EBITDA improvement in 2023, moving to a loss of $14 million versus a loss of $39 million in 2022.

Michael Noonan: Most notably at Branch TripAdvisor and The Fork, as well as lower people costs across across across across across across across across across across across across across across across across across, Technology and content costs as a percent of revenue were flat as investments in data and engineering resources in BrandtripAdvisor and Vyntor remained in line with revenue growth. G&A expenses as a percent of revenue were approximately 400 basis points lower as a result of the cost savings actions we implemented at Branch TripAdvisor and the Fork, as well as the $8 million loss incurred in Q4 of 2024 related to a targeted payment fraud scheme, which did not reoccur in 2023, and accounted for half of the year-over-year level, as well as the $8 million loss incurred in Q4 of 2024 related to a targeted payment fraud scheme, which did not reoccur in 2023, and accounted for half of the year-over-year level, and accounted for half of the year-over-year level, During the quarter, we also incurred approximately $4 million in restructuring expenses related to the previously announced actions we implemented at both Brandt-TripAdvisor and the... Now on to our cash and liquidity, Operating cash flow with a deficit of $19 million and free cash flow with a deficit of $35 million, driven by normal seasonal trends and deferred merchant payables at Viator. During the quarter, we repurchased approximately 1.3 million shares at an average cost of $18.85 per share, totaling approximately $25 million under our current share repurchase program.

Mike J. Olson: The largest driver of this improvement was in sales and marketing with lower spend in performance and brand marketing as well as increased leverage from sales head count.

Mike J. Olson: This was especially impressive given the COVID-19 subsidy benefit of $11 million received in 2022.

Mike J. Olson: Total operating cash flow for the year was $235 million and free cash flow was $172 million, we repurchased a total of 6 million shares. This year at an average price of $16 51 totaling $100 million.

Mike J. Olson: In light of the announcement earlier in the week for the time being we have suspended our share repurchase program.

Mike J. Olson: We ended the quarter and year with approximately $1 1 billion in cash and equivalents.

Mike J. Olson: As we discussed throughout the year fiscal 'twenty, three operating cash flow and free cash flow were impacted by a net cash outflow of $64 million related to our previously disclosed settlements with the IRS for income tax returns for the years 2009 through 2011.

Mike J. Olson: In 2024, we expect a net cash outflow of approximately $80 million to $130 million related to the settlement for the years 2014 to 2016.

Mike J. Olson: <unk>, an estimated increase in tax expense of approximately 30 million to $60 million, which will take in Q1.

Speaker Change: Now onto thoughts for 2024.

Speaker Change: In light of the formation of a special Committee and.

Speaker Change: And evaluation of potential alternatives, we will not be providing a detailed outlook on this call.

Speaker Change: However, we will provide a framework as to how we're thinking about our priorities for the year.

Speaker Change: We will continue to invest and operate the brands in a way that strengthens and build their long term sustainable competitive advantage.

Speaker Change: We will do this against the backdrop of what we believe to be a healthy travel market. Although we expect to see some normalization across travel this year versus last year.

Speaker Change: As such we expect to see some tougher comparisons this year, particularly in Q1, where we expect to see the lowest growth quarter of the year across the segments.

Michael Noonan: Turning now to our full year performance, consolidated revenue grew 20% to $1.8 billion. As a reminder, year-over-year growth in the first quarter of the year benefited from an easier comparable. On a segment basis, Brand TripAdvisor grew 7% to $1 billion, while Evaluator grew 49% to $737 million, and The Fork grew 22% to $154 million. Consolidated adjusted EBITDA for the full year was $334 million, or 19% of revenue or 100 basis points lower than the 22 adjusted EBITDA margin.

Speaker Change: Our branch supervisor, our priority is the long term diversification of the portfolio.

Speaker Change: As we have said since launching our new strategy last year, we expect this to be a multi year transformation supporting sustainable future revenue and profit growth.

Speaker Change: We are aiming for stable revenue dollars for the year, while continuing to maintain flexibility for investment in our transformation.

Speaker Change: It fit or our financial profile will reflect a balance between growth profitability and market share gains.

Speaker Change: Combined with some normalization of travel growth, we expect a step down in revenue growth for the year relative to where we exited 2023.

Speaker Change: We continue to expect <unk> to be profitable for the full year.

Speaker Change: At <unk>, we expect much of the groundwork we laid in 2023 will benefit us in 2024, as we continue to operate with more leverage and efficiency are.

Michael Noonan: Sales and marketing and G&A costs as a percent of revenue were flat, while cost of revenue and technology and content slightly increased as a percent of revenue. Turning to segment EBITDA for the year, Brand TripAdvisor delivered $348 million in adjusted EBITDA, or 34% of revenue. For the year, a combination of investment in data and engineering headcount, higher costs of revenue in media and advertising, and higher cloud migration costs as a percent of revenue drove the approximately 200 basis point decline year-over-year.

Speaker Change: Our balanced growth and profitability strategy is expected to result in a step down in growth from 2023 levels, but achieve full year profitability.

Speaker Change: With that I'd like to turn the call back over the operator to begin Q&A.

Speaker Change: Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Speaker Change: One moment for questions.

Speaker Change: Our next question. Our first question comes from Ben Miller with Goldman Sachs. You May proceed.

Ben Miller: Thanks, so much for taking the question.

Michael Noonan: Viatora Justice EBITDA was breakeven for the full year, which was a 200 basis point improvement from last year, with increased leverage from people costs and direct marketing costs, which includes both traffic and brand. Finally, at the fork, we saw significant EBITDA improvement in 2023, moving to a loss of $14 million versus a loss of $39 million in 2022. The largest driver of this improvement was in sales and marketing, with lower spend on performance and brand marketing, as well as increased leverage from sales headquarters. This was especially impressive given the COVID subsidy benefit of $11 million received. Total operating cash flow for the year was $235 million, and free cash flow was $172 million.

Ben Miller: <unk> talked a lot about the importance of mobile in App based logged in users.

Ben Miller: If you can share just on the top of funnel traffic and engagement youre seeing from that cohort and anything on conversion of non apps non logged in members to members.

Okay.

Speaker Change: So obviously each of our segments Ben Thanks for the question.

Ben Miller: Different.

Ben Miller: Combination I mentioned that 75%.

Ben Miller: At the fork are booking.

Ben Miller: With us on the mobile App of course, we put a real focus on the App at <unk> and are seeing increasing size of those those audiences and.

Ben Miller: And they are engaging further.

Ben Miller: We're putting this focus on tripadvisor in a way that we really haven't in a while I think I mentioned on one of our calls previously that we had a refresh the tech stack. It was moderate and ready to go and really as we think about shifting to a mobile first approach, we want that app to be an indispensable.

Michael Noonan: We repurchased a total of 6 million shares this year at an average price of $16.51, totaling $100 million. In light of the announcement earlier this week, for the time being, we've suspended our share purchase program. We ended the quarter and year with approximately $1.1 billion in cash and equipment. As we discussed throughout the year, Fiscal 23 operating cash flow and free cash flow were impacted by a net cash outflow of $64 million related to our previously disclosed settlements with the IRS for income tax returns for the years 2009 through 2011. In 2024, we expect a net cash outflow of approximately $80 to $130 million related to the settlement for the years 2014 to 2016, resulting in an estimated increase in tax expense of approximately $30 million to $60 million, which we'll take in Q1. Now on to Thoughts for 2024. In light of the formation of the special committee and the Evaluation of Potential Alternatives, we will not be providing a detailed outlook on this call.

Ben Miller: <unk> experience for travelers and the way that we're going to do this is we're going to make sure. We give good incentives to sign in and log in which is something that we've already done at scale, we have more than 130 million members.

Ben Miller: And then to convert them to download the app and engage there and so what will wind up happening is.

Ben Miller: Wind up spending time in the App that will be.

Ben Miller: It will feel like a closed experience where you can leverage AI.

Ben Miller: To understand what your opportunities are as you're planning and what's around you when you're in destination, we think that will drive meaningful engagement and then of course, we will focus on how that converts through the funnel.

Ben Miller: Those numbers.

Ben Miller: We've put mobile app users out publicly in the past so I don't intend to do that here, but we think that when you look at the overall percentage of our total audience. There is significant headroom to drive people into the App and then we think that once they are in the App, we know that the value to us is many.

Michael Noonan: We will continue to invest in and operate the brands in a way that strengthens and builds their long-term, sustainable, competitive advantage. We will do this against the backdrop of what we believe to be a healthy travel market, although we expect to see some normalization across travel this year versus last year. As such, we expect to see some tougher comparisons this year, particularly in Q1, where we expect to see the lowest growth quarter of the year across this sector.

Ben Miller: Many multiples of what they would be in a web based experience. So I think.

Ben Miller: Without disclosing further detail that we haven't done in the past I think you get a sense that our strategy across the board is to drive direct users into the app engage them deeply give them an experience that not only is trusted high quality, but then when they go and have that experience in the real world. It's only natural to come back to the App and of course pay it forward to other.

Michael Noonan: At Branch TripAdvisor, our priority is the long-term diversification of the portfolio. As we have said since launching our new strategy last year, we expect this to be a multi-year transformation supporting sustainable future revenue and profit growth. We are aiming for stable revenue dollars for the year while continuing to maintain flexibility for investment in our transformation. At Vytor, our financial profile will reflect a balance between growth, profitability, and market. Combined with some normalization of travel growth, we expect a step down in revenue growth for the year relative to where we exited 2023. We continue to expect Viator to be profitable for the full year.

Ben Miller: Travelers by sharing their experience.

Speaker Change: Thanks, so much.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from <unk> <unk> with B Riley Securities You May proceed.

Speaker Change: Hi, Thanks, maybe just a high level question for you Matt.

Does the formation of especially committee by the board.

Speaker Change: Timing for a potential spin off of <unk>, and then and then secondarily, maybe just on the <unk> margins for 2024.

Speaker Change:

Speaker Change: How should we think about the scope for improvement there should we look at Q4 to the proxy in terms, so they don't need again and how that Mike.

Operator: At The Fork, we expect much of the groundwork we laid in 2023 will benefit us in 2024 as we continue to operate with more leverage and efficiency. Our balanced growth and profitability strategy is expected to result in a step down in growth from 2023 levels, but we will achieve full year profitability. With that, I'd like to turn the call back over to the operator and begin Q&A. Thank you. As a reminder, to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again.

Speaker Change: <unk> into 'twenty, four or just give us your high level thoughts there. Thank you.

Speaker Change: Yes, Thanks, David I appreciate the question I'll take the first one I know Mike will take the second.

I joined the company of course this notion of a spinoff of <unk> has just not been something that we've spent a lot of time and energy on given the markets that we've been in we've been focused on the business and I think you can see that our focus on the traveler the experiences they have with us and the way that our product delivers over and over for them again.

Speaker Change: Has really shown itself to prove out in the results that we've seen to date and that remains true. We're totally focused on the business. The announcement. This week doesn't change that I'm focused on moving things forward.

Benjamin Harold Miller: Our next question, our first question comes from Ben Miller with Goldman Sachs. Thank you so much for taking the question. We've talked a lot about the importance of mobile and app-based logged in users. Anything you can share just on top of funnel traffic and engagement you're seeing from that cohort, and anything on conversion of non-app, non-logged in members to members. Thanks.

Speaker Change: And focused on our strategies, which I think are clear and really delivering and I know that our teams are doing the same.

Speaker Change: Yes, and on your second question again.

Speaker Change: Avoiding kind of specific guidance as per my earlier commentary.

Speaker Change: Yes, listen I think.

Speaker Change: We and this is that we've made consistently in the past.

Speaker Change: We are I think on a path to seeing <unk> move in the direction of its long term potential margins right, which we've talked about.

Matthew Goldberg: So obviously, each of our segments, Ben, thanks for the question, has, you know, a different combination. I mentioned that 75% of customers at the fork are booking with us on the mobile app. Of course, you know, we put a real focus on the app at Viator and are seeing an increasing size of those audiences, and they're engaging further. We're putting this focus on TripAdvisor in a way that we really haven't done in a while. I think I mentioned on one of our previous calls that we had refreshed the tech stack. It was modern and ready to go.

Speaker Change: I'm not going to peg next year or two what we're thinking at what happened in Q4 other than to say that the broad trajectory, we'd expect the business to pursue.

Speaker Change: Secondly, I would say.

Speaker Change: And this is reflected in some of my comments.

Speaker Change: We're going to be thoughtful as we as we think about this we're going to be prudent and disciplined as we think about our marketing investment.

Speaker Change: That means we want to pursue high quality traffic.

Matthew Goldberg: And really, as we think about shifting to a mobile-first approach, we want that app to be an indispensable experience for travelers. It'll feel like a closed experience where you can leverage AI to understand what your opportunities are as you're planning and what's around you when you're in a destination. We think that'll drive meaningful engagement. And then, of course, we will focus on how that converts through the funnel. You know, those numbers. I don't think we put mobile app users out publicly in the past. So I don't intend to do that here. So I think, you know, without disclosing further detail that we haven't done in the past, I think you get a sense that our strategy across the board is to drive direct users into the app, engage them deeply, give them an experience that is not only trusted and high quality, but then when they go and have that experience in the real world, it's only natural to come back to the app and, of course, pay it forward to other travelers by Thanks so much.

Speaker Change: That means we're not going to pursue lower cloud traffic right. So really have a discipline disciplined approach.

Speaker Change: And be nimble as we move through the year so.

Speaker Change: Again, I would just say we want this business to be on that trajectory on that arc.

Speaker Change: For what we believe.

Speaker Change: Achieving long term margin potential over the over the near term.

Speaker Change: Okay. Thank you Matt Thank you Mike.

Speaker Change: You bet.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Richard Clarke with Bernstein, You May proceed.

Richard J. Clarke: Good morning, Thanks for taking my questions. If I can maybe just ask previous question a slightly different way if I look at Q4, it's by us or you made.

Richard J. Clarke: $34 million of additional revenue year on year.

Richard J. Clarke: $8 million of additional EBITDA, so thats like a contribution margin of 53%.

Speaker Change: Achievable loan growth or is there anything else going into that big improvement is that now the unit economics.

Speaker Change: Then maybe just secondly, I guess Expedia last week talking about leaning back in.

Speaker Change: Maybe spending a bit more a bit more on marketing are you seeing any benefit to that is any of that thanks Richard.

Speaker Change: Great. Thanks, Richard I'll take those are I think I heard the last question is a little is a little light, but what we can come back to that in a SEC.

Speaker Change: So.

Speaker Change: Just on Q4, let's be clear like we Q4 was.

Speaker Change: <unk> quarter from a macro perspective, we have a lot of things kind of happening.

Speaker Change: As we said with the mid East conflict, certainly brought some headwinds to to the market.

Speaker Change: Also we're very much disciplined in terms of thinking about how we want to acquire new users and right and getting back to the comment I, just made really targeting high quality traffic and being maybe a bit more discerning. So both of those impacts really affected new user growth right and so you saw.

Matthew Goldberg: Thank you. One moment for questions. Our next question comes from Naved Khan with B. Reilly Securities. You may proceed. Yeah, thanks a lot.

Naved Khan: Maybe just a high-level question for you, Matt. How does the formation of the special committee by the board affect the timing for a potential spinoff of Viator? And then, and then secondarily, maybe just on the Viator margins for 2024. How should we think about the scope for improvement there? Should we look at Q4 as a proxy in terms of the year-on-year gain and how that might continue in 2024, or just give us your high-level thoughts there? Thank you. Yeah, thanks, Naved. I appreciate the question. I'll take the first, and I know Mike will take the second.

Speaker Change: Really come through I think the power of the model, which is large repeat cohorts.

Speaker Change: More prominently.

Speaker Change: Providing revenue there. So I think Q4 was a bit more of.

Speaker Change: And I'll point and I'll also point to Richard we had revenue of 27% growth, but GDP growth was 20 right. So there is a difference there and some timing Rev Rec timing differences there.

Speaker Change: You should just maybe just read through that incremental margin.

Richard J. Clarke: But it's really more of an impact of.

Matthew Goldberg: You know, since I joined the company, of course, this notion of a spin-off of Viator has just not been something that we've spent a lot of time and energy on, given the markets that we've been in. We've been focused on the business, and I think you can see that our focus on the traveler, the experiences they have with us, and the way that our product delivers over and over for them again has really shown itself to prove in the results that we've seen to date. And that remains true. We're totally focused on the business. The announcement this week doesn't change that.

We saw the flow through from <unk>.

Richard J. Clarke: Lower new user acquisition due to some of the macro and marketing marketing discipline, we had in the quarter.

Richard J. Clarke: Versus the flow through of EBITDA from the repeat cohorts.

Richard J. Clarke: And then the second question is around it was around Expedia and maybe Sean.

Speaker Change: I'll lead off.

Speaker Change: Look we obviously don't comment on particular participants in the auction but.

Speaker Change: Clearly the bidding dynamics are healthy.

Speaker Change: I've said in the past, we'd take those relationships quite seriously and so we spend a lot of time working with our partners to make sure that we're optimizing the way that we can deliver for their marketing objectives and I think.

Michael Noonan: I'm focused on moving things forward and focused on our strategies, which I think are clear and really delivering, and I know that our teams are doing the same. On your second question, you know, again, avoiding kind of specific guidance, as for my earlier commentary, yeah, listen, I think we, and this is a statement we've made consistently in the past, you know, we are, I think, on a path to seeing Viator move in the direction of its long-term potential margins, which we've talked about. I'm not going to peg next year to, you know, what we're thinking, or what happened in Q4, other than to say that's the broad trajectory we'd expect the business to pursue. Secondly, I would say, and this is reflected in some of my comments, we're going to be thoughtful as we think about this.

Speaker Change: As Expedia makes an announcement like that and others respond I think you can expect that that's something we will look to take advantage of it but the bidding dynamics are healthy.

Speaker Change: Okay, great. Thank you.

Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Doug Anmuth with Jpmorgan you May proceed.

Speaker Change: Okay.

Douglas T. Anmuth: Thanks for taking the questions I have two.

Douglas T. Anmuth: First of all one.

Douglas T. Anmuth: Mike You said, you're expecting stable revenue dollars from <unk>.

Doug Anmuth: Correct.

Doug Anmuth: If that's true could just talk about what's affecting that outlook on the second lien.

Mike J. Olson: So very strong leverage on our sales and marketing and <unk> and it sounds like you've placed greater emphasis on higher value users.

Mike J. Olson: But just wondering if there's anything else to call out on that marketing efficiency in <unk>.

Michael Noonan: We're going to be prudent and disciplined as we think about our market investment. You know, that means we want to pursue high-quality traffic. That means we're not going to pursue low-required traffic, right, so, you know, really have a disciplined approach and be nimble as we move through the year. So again, I would just say we want this business to be on that trajectory, on that arc for what we believe is achieving long-term margin potential over the near term. Okay. Thank you, Matt.

Mike J. Olson: Or should we expect marketing to be a social networks.

Mike J. Olson: Yes.

Speaker Change: You broke up a little bit maybe try to parse through it.

Speaker Change: Your first question was around.

Speaker Change: Stable revenue.

Speaker Change: At core.

Speaker Change: Again I wasn't sure what your specific question was I would just say that we want to stay away and understand away from specific guidance and we wanted to be.

Speaker Change: I'll give you some view of the shape of how we're thinking about the year, but did want to stay away from any specific guidance due to the recent announcements.

Michael Noonan: Thank you, Mike. Thank you. One moment for questions. Our next question comes from Richard Clarke with Bernstein. You may proceed. I'm good. If I can maybe just ask that... 30, and then maybe just.

Speaker Change: Secondly.

Speaker Change: The only color I would give on that Doug is that you can imagine we've talked from the beginning about a multi year.

Richard J. Clarke: Great. Thanks, Richard. I'll take those directly.

Speaker Change: Our strategy to transform our business and when you do that youre focusing on diversifying your revenues and I think we are very pleased with how that diversification is going I tried to reinforce that in my comments upfront.

Michael Noonan: I think I heard the last question is a little light, but we can come back to that in a sec. Just on Q4, let's be clear, like we, you know, Q4 was a tough quarter from a macro perspective. We have a lot of things kind of happening, as we said, with the Mideast conflict certainly bringing some headwinds to the market. But we also were very disciplined in terms of thinking about how we want to acquire new users and, right, and getting back to the comment I just made, really targeting high-quality traffic and being maybe a bit more discerning. So, both those impacts really affected new user growth, right?

Speaker Change: We see replacement dollars from categories that are growing very quickly and of course, we're all familiar with.

Speaker Change: The secular challenges in some of our revenue streams. So when you balance all of that that sort of comes together in that kind of a shape. It's what we expected and we feel like we're making really good progress.

Speaker Change: And the second question was around marketing dollars and whether we'll see.

Speaker Change: Right.

Speaker Change: Can you repeat why don't you repeat the second question because I'm not sure we got that one.

Michael Noonan: And so, you saw really come through, I think, the power of the model, which is large repeat cohorts more prominently providing revenue there. So, I think, you know, Q4 was a bit more of, and I'll point out, and I'll also point to, Richard, you know, we had revenue of 27% growth, but, you know, GBV growth was 20, right? So, there was a difference there and some timing, rev-rec timing differences there that you should just maybe just read through that incremental margin.

Speaker Change: Yes, sorry.

Speaker Change: But then the second one.

Marketing leverage that you saw in <unk>. It sounds like you guys placed greater emphasis on higher value users, but wondering if there's anything else to call out on the efficiencies you saw in <unk>.

We should expect marketing to be a source of leverage going forward.

Speaker Change: And again are you, referring to viator and your comments.

Speaker Change: Alright.

Total total sales and marketing you guys saw a very strong numbers and it sounds like you guys called up across from the Brown Trust standby forces, yes got it across both platforms.

Speaker Change: Yes, yes, so just just unpack on both platforms I think the.

Speaker Change: The leverage is really a cross.

Michael Noonan: But it's really more of an impact of, you know, we saw the flow through from, you know, lower new user acquisition due to some of the macro and marketing discipline we had in the quarter versus the flow through of EBITDA from the repeat cohort. And then the second question was around Expedia, and maybe I'll lead off. Look, we obviously don't comment on particular participants in the auction, but clearly, the bidding dynamics are healthy. As I've said in the past, we take those relationships quite seriously, and so we spend a lot of time working with our partners to make sure that we are optimizing the way that we can deliver for their marketing objectives. As Expedia makes an announcement like that and others respond, I think you can expect that that's something we will look to take advantage of, but the bidding dynamics are healthy. Thank you.

Speaker Change: <unk> advisor and <unk> to our already talked about <unk> on the last answer.

Speaker Change: Branch of advisor, we just saw a very healthy <unk>.

Speaker Change: Free channel.

Speaker Change: Mix in the quarter.

Speaker Change: That very much impacts that leverage.

Speaker Change: Net leverage result.

Speaker Change: Just credit to the teams at branch of advisor, who really work every day on optimizing all of our channels, but particularly on the free channels, whether it's CRM SCO.

Speaker Change: Or other other direct channels.

Speaker Change: We continue to see good results there, we saw a nice nice pricing versus our expectations and certainly good pricing on a year over year basis.

Speaker Change: That certainly was the driving factor at brand Tripadvisor.

Speaker Change: All the teams are focused on how we continue to drive that forward as you know.

When you think about that that was that was in both just to clarify that was in both.

Matthew Goldberg: One moment for questions. Our next question comes from Doug Anmuth with J.P. Morgan. You may proceed. Hey, this is ADM for Doug. Thanks for taking the questions. I had two.

Speaker Change: Hotel matter as well as our experiences business.

Speaker Change: These are things that the teams will continue to drive into next year very dynamic markets.

Speaker Change: Both the prepaid markets.

Operator: First one. I think Mikey said you're expecting stable revenue dollars at Brandtruck. If that's true, could you talk about what's affecting that outlook? And then, secondly, you guys saw very strong leverage out of sales and marketing in 4Q, and it sounds like you face a greater emphasis on higher-value users. I'm looking ahead to 2024. Should we expect marketing to be a source of leverage? Yeah, as you broke up a little bit, let me try to sort through it.

Speaker Change: Particularly with how we advertise in paid markets and as well as in the free channels, but there will be working hard too.

Speaker Change: Continuing to advance the ball in next year and.

Speaker Change: I just wanted to say marketing is an area that we put a lot of focus and attention on in 2023.

Speaker Change: And I think it is becoming an increasing source of strength for us.

Speaker Change: We are at each business thinking about how to leverage basically the full funnel marketing approach and so at Tripadvisor will be able to adapt that to really back our engagement led strategy by being more up and down the funnel and being more targeted leveraging data in our marketing like never before because of our data investments obviously.

Dae K. Lee: I think your first question was around, Stable Revenue at core. Again, I wasn't sure what your specific question was. I would just say that we want to stay away from and are staying away from specific guidance, and we want to give you some view of the shape of how we're thinking about the year but do want to stay away from any specific guidance due to the recent announcement. Secondly, the only color I would give on that to you, Doug, is that you can imagine we've talked from the beginning about a multiyear strategy to transform a business. And when you do that, you're focusing on diversifying your revenues. And I think we are very pleased with how that diversification is going. I tried to reinforce that in my comments up front.

Speaker Change: <unk> had spent some time in 2022 really getting their cross channel and Fuller funnel approach going and that is continuing to gain traction and will continue to be optimized and I think really serve that business as it continues to scale and drive leverage and then.

Speaker Change: At the park.

Speaker Change: We are very focused on the market and we want to do across all of our priority markets and thinking about how and when do we focus on new and really leaning into repeat this year and thinking more about being prudent about some of the some of the awareness stuff that we used to do in the past everywhere and really focusing in on priority market. So I think what youre seeing is.

Michael Noonan: You know, we see replacement dollars from categories that are growing very quickly. And, of course, we're all familiar with, you know, the secular challenges in some of our revenue streams. So, you know, when you balance all that, that sort of comes together in that kind of shape.

Speaker Change: A much sharper more strategic data driven approach to the full funnel up for each segment and it's it's going to deliver.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from James Lee with Mizuho You May proceed.

Great. Thanks for taking my questions two over here first on media and advertising businesses.

Michael Noonan: It's what we expected, and we feel like we're making really good progress. And the second question was around marketing dollars and whether or not we'll see if I can you repeat that. Why don't you repeat the second question, because I'm sure we got that one. Yeah, sorry.

James Lee: And you seem to have a pretty good position given the size of your audience. Here can you talk about the investment you're making in tech stack that will make the product even more engaging and second some app user experience I think historically you guys were looking to reduce the number of steps to get to conversion and can you.

Dae K. Lee: Second, the second one was on marketing leverage that you saw in 4Q. It sounds like you guys place greater emphasis on higher-value users, but I'm wondering if there's anything else to call out on the efficiency you saw in 4Q and if we should expect marketing to be a source of leverage in 2024. And again, are you referring to Viator in your comment?

About the progress on that please.

Speaker Change: Okay. Thank you and I'll take the first one that I think Mike will take the second so the media and advertising part of our business is one that we obviously have a fantastic high intent audience and it's highly qualified and its contextually relevant and its interested in travel and that audience is interesting both for endemic.

Dae K. Lee: Unknown Speaker I mean, total total sales and marketing you guys saw very strong leverage, and it sounds like you guys saw that both across friend trips and, of course, across both platforms. Yeah, yeah. So just just unpack on both platforms.

Speaker Change: Non endemic advertisers and I think over the years, it's really been a siloed business it's existed on its own.

Speaker Change: It's been in maybe the competition with other areas of the product our opportunity of course is to integrate that opportunity more holistically into the overall experience and come up with solutions that are not only great for advertisers and partners that can be part of the traveler experience that value now the media and advertising business.

Michael Noonan: I think the, you know, the leverage is really across Brand TripAdvisor and Viator. I already talked about Viator in the last answer. You know, at Brand TripAdvisor, we just saw a very healthy free channel mix in the quarter. That very much impacts that leveraged result. You know, just credit to the teams at Brand TripAdvisor who really work every day on optimizing all our channels, but particularly on the free channels, whether it's CRM, SEO, or other other direct channels. We continue to see good results there. We saw, you know, nice, nice prices versus our expectations and certainly good prices on a year to year basis. And that certainly was the driving factor at Brand TripAdvisor. All the teams are focused on how we continue to drive that forward. As you know, when you think about that, that was it was in both, just to clarify that it was in both.

Speaker Change: <unk> had a good year in 2023, I think overall 2012, or 13% growth, which I think was strong buy category standards and even stronger when you consider that much of that growth is coming from formats, where.

Speaker Change: We have constraints, it's mostly display where we're not as deep as we can and will be in.

Speaker Change: In a few categories like video mobile and social.

Speaker Change: But it's also an area thats going to benefit from our engagement led approach and our investment in data. So over time, we have not.

Speaker Change: Prioritized big meaningful significant investments in media and advertising in 2023, and that's an area that we're focusing on as we think about what are the formats that we want to deliver for the future. How do we think about the way that we want to serve advertisers in new and unique ways whats the difference between an enterprise client and a small medium.

Michael Noonan: Hotel Meta, as well as our experiences business. These are things that the teams will continue to drive into next year, very dynamic markets, you know, both in the free and paid markets, particularly with how we advertise in paid markets and as well as in the free channels. But they will be working hard to, you know, continue to advance the ball next year.

Speaker Change: <unk> client and our goal is to get efficiency in our go to market productivity in our sales organizations and an integrated offering that I think will drive meaningful bigger longer deals.

Matthew Goldberg: And Doug, I just want to say, you know, marketing is an area that we will put a lot of focus and attention on in 2023, and I think it is becoming an increasing source of strength for us. You know, we are at each business thinking about how to leverage basically the full funnel of marketing. And so at TripAdvisor, we'll be able to adapt that to really back our engagement-led strategy by being more up and down the funnel and being more targeted, leveraging data in our marketing like never before because of our data investments. Obviously, Viator spent some time in 2022 really getting their cross-channel and fuller funnel approach going, and that is continuing to gain traction and will continue to be optimized and, I think, really serve that business as it continues to scale and drive leverage.

Speaker Change: That are really focused on the value of this audience and we saw we saw some good traction in 'twenty three and I think we're going to continue to lean into that for 'twenty.

Speaker Change: Yes, and on your question on kind of user experience and conversion.

Speaker Change: It's a broad question and it cuts across a lot of our brands primarily at branch of advisor and <unk>.

Speaker Change: Branch of adviser, we're real excited about some of the strategy work, we've been working on this year, particularly as it relates to.

Speaker Change: Data personalization I know you've heard us talk about this for some time, but really the ability I think to impact both our hotel meta and our experiences business at at at branch of advisor, making sure that we are targeting the right people with the right.

Speaker Change: Add our supply.

Speaker Change: For our hotel meta.

Matthew Goldberg: And then at The Fork, we are very focused on the marketing we want to do across all of our priority markets and thinking about how and when we will focus on new and really leaning into repeat this year and thinking more about, you know, being prudent about some of the awareness stuff that we used to do in the past everywhere and really focusing on priority markets. So I think what you're seeing is just a much sharper, more strategic, data-driven approach to the full funnel for each segment, and it's going to deliver. Thank you.

Speaker Change: Net debt that has very definitive conversion impacts we're excited about what we've seen there.

Speaker Change: And we've done so much funnel work on the experiences.

Product at brand trip advisor right.

Speaker Change: And as you know we continue to experiment with how do we optimize that user experience.

Speaker Change: In that funnel and Theres a lot of shared learnings between the buyer to our teams in the branch or advisor teams at <unk>.

Speaker Change: Optimization is core what they do we had.

Speaker Change: Very solid conversion gains this year very proud of the teams and the work they've put in there.

Operator: One moment for questions. Our next question comes from James Lee with Mizzou Ho. You may proceed. Great, thanks for taking my questions. Two over here.

Speaker Change: That goes to everything from getting the right supply.

Speaker Change: And we do have the largest supply.

James Lee: First, the media and advertising business, and you seem to have a pretty good position, given the size of your audience here. Can you talk about the investment you're making in the tech stack that will make your product even more engaging? And second, on the app user experience, I think historically, you guys were looking to reduce the number of steps to get to conversion. And can you talk about the progress? Okay, thank you. And I'll take the first, and then I think Michael will take the second.

Speaker Change: Supply base.

Speaker Change: Experiences and experiences.

Speaker Change: Market.

Speaker Change: Using data to get the right supply to offer when the person comes and visits us So making sure we were presenting the right type of supply and supply diversity.

Speaker Change: At the right price.

Speaker Change: And making it seamless to really to get to book and Thats really what the teams are all about and we're excited about other things. We're working on this year, Matt mentioned loyalty program at <unk>. These are all things, we think that we're really going to enhance that those conversion benefits. So.

Matthew Goldberg: So the media and advertising part of our business is one that, you know, we obviously have a fantastic high-intent audience, and it's highly qualified, and it's contextually relevant, and it's interested in travel, and that audience is interesting both for endemic and non-endemic advertisers. And I think over the years, it's really been a siloed business. It's existed on its own, and it's been, maybe, in competition with other areas of the product.

Speaker Change: A lot of progress been made across the teams. We think there is more progress to be had and are excited about it.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Jed Kelly with Oppenheimer You May proceed.

Jed Kelly: Okay, great. Thanks, Thanks for taking my questions.

Jed Kelly: Can you just talk about the competition Youre seeing in performance marketing channels with some of your competitors, both with buyer tour and with core Tripadvisor seems like some of your competitors recently indicated they are still going to spend a lot going into 'twenty four thank you.

Matthew Goldberg: Our opportunity, of course, is to integrate that opportunity more holistically into the overall experience and come up with solutions that are not only great for advertisers and partners but can be part of the traveler experience that's valued. Now, the media and advertising business had a good year in 2023. I think overall 2012 or 13% growth, which is strong by category standards and even stronger when you consider that much of that growth is coming from formats where we have constraints. It's mostly display.

Speaker Change: Yes, yes.

Speaker Change: Yes Jed.

Speaker Change: So I'd say I'd say as you know these.

Speaker Change: These markets are extremely competitive.

Speaker Change: Different competitors in different areas.

Speaker Change: Viator.

Speaker Change: The experienced this space is.

Speaker Change: Is a competitive one you do have a broad.

Speaker Change: Competitive dynamics in the paid channels, obviously theres a few operators.

Speaker Change: At our larger and more at scale that tend to show up.

Speaker Change: In those in those pay channels more regularly we still have a pretty broad broad kind of a long tail of others that are that are bidding.

Matthew Goldberg: We're not as deep as we can and will be in a few categories like video, mobile, and social. But it's also an area that's going to benefit from our engagement-led approach and our investment in data. So, you know, over time, we have not prioritized big, meaningful, significant investments in media and advertising for 2023. And that's an area that we are focusing on as we think about what are the formats that we want to deliver for the future. How do we think about the future? How do we think about the way that we want to serve advertisers in new and unique ways? What's the difference between an enterprise client and a small, medium-sized client?

Speaker Change: In that market.

Speaker Change: Fewer so that are in the brand and the brand campaigns again, theres a more more of the scaled operators and experiences that are actually.

Speaker Change: Marketing and branding.

Speaker Change: Very specific to the experiences we had assumed that it would continue.

Speaker Change: And that's where we again getting back to being disciplined about our about our acquisition make sure we're using our dollars wisely.

Speaker Change: Two two.

Users that we think will convert but not just convert will come back and that's the key as you know we've said for some time to how we think about the economic model.

Speaker Change: <unk> advisor.

Speaker Change: When you think about primarily.

Speaker Change: Hotel meta.

Michael Noonan: And our goal is to get efficiency in our go-to-market, productivity in our sales organizations, and an integrated offering that I think will drive meaningful, bigger, longer deals that are really focused on the value of this audience. And we saw some good traction in 2023, and I think we're going to continue to. Yeah, and then your question about user experience and conversion.

Speaker Change: That is.

Speaker Change: Very competitive.

Speaker Change: Place.

Speaker Change: And we think about.

Speaker Change: We are competing against in the paid channels are.

Speaker Change: All the all the players you would imagine in the hotel ecosystem.

Speaker Change: And that's.

Speaker Change: That's why again, we have to be very <unk>.

Speaker Change: Disciplined in our approach we have been very disciplined by as we said many times, maintaining our marketing rou assets.

Speaker Change: We're excited about.

Speaker Change: The investments that Matt really alluded to in his.

Michael Noonan: You know, it's a broad question, and it cuts across a lot of our brands, primarily at TripAdvisor and Viator. You know, Brand TripAdvisor, we're really excited about some of the strategy work we've been working on this year, particularly as it relates to, you know, data, personalization. I know you've heard us talk about this for some time, but really the ability, I think, to impact both our hotel meta and our experiences business at Brand TripAdvisor, you know, making sure that we are, you know, targeting the right people with That has very definitive conversion impacts.

Speaker Change: Repaired remarks around thinking about using.

Speaker Change: Using data and personalization around again acquiring the right type of users that we believe.

Speaker Change: Can really.

Speaker Change: Convert.

Speaker Change: Not just convert but actually have a sustainability and LTV to it right that we believe can get to the App. We believe can get to some of the goodness that Matt talked about that we see in our app ecosystem.

Speaker Change: And theyre starting to really to think about how we use our data to acquire those right users that have those attributes and promote that behavior. So we're excited about where that can lead us this year.

Speaker Change: And again, we will continue to be nimble as we move through the year on both areas.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Speaker Change: Our next question comes from Brian Fitzgerald with Wells Fargo. You May proceed.

Brian P. Fitzgerald: Thanks, guys a quick follow up on <unk>.

Michael Noonan: We're excited about what we've seen there, and we've done so much funnel work on the experiences product at Brand TripAdvisor, right? And as you know, we continue to experiment with how to optimize that user experience in that funnel. And there are a lot of shared learnings between the Viator teams and the Brand TripAdvisor teams. And at Viator, you know, funnel optimization is the core of what they do. We had, you know, very solid conversion gains this year. I'm very proud of the teams and the work they've put in there.

Brian P. Fitzgerald: Nice quarter.

Brian P. Fitzgerald: FX neutral growth 25%.

Brian P. Fitzgerald: <unk>.

Brian P. Fitzgerald: Can you talk a little bit about you talked about the competition in the competitive space is that sequential diesel there is it a factor.

That consumer demand or is it.

Brian P. Fitzgerald: Competition, you've talked to or is it really it sounded like from the main call. It is just a normalization of.

Brian P. Fitzgerald: Pent up demand in prior periods. So if you could kind of parse out hey, it's conservative manner macro has competition hey, it's.

Brian P. Fitzgerald: Normalization.

Michael Noonan: That goes to everything from getting the right supply. And we do have a large supply base in the experiences market, you know, using data to get the right supply to offer when the person comes in and visits us. So making sure we were presenting the right type of supply and supply diversity at the right price and making it seamless to really get to book. And that's really what the teams were all about.

Brian P. Fitzgerald: It's one third of each of those and then.

Brian P. Fitzgerald: Experiences in dining revenue on brand trip was up 12% year over year. So we're seeing nice growth there how much runway is there and how would you assess your ability to cross sell inventory across.

Brian P. Fitzgerald: The traveling dining and experiences is there.

Brian P. Fitzgerald: More runway to drive <unk>.

Brian P. Fitzgerald: Experiences in dining out of.

Speaker Change: Brand trip thanks.

Speaker Change: Yes, great I'll take the first one Matt take second.

Matt: So what do you think about and I think the question is really around Q4 D cell.

Speaker Change: I think it's really two big areas right. One it's really as we said a slowdown in new bookings and that was really driven by two things one macro.

Michael Noonan: And we're excited about other things we're working on this year. Matt mentioned the loyalty program at Viator. These are all things we think that are really gonna enhance those conversion benefits. So a lot of progress has been made across the teams. We think there's more progress to be had and are excited about it. Thank you.

Speaker Change: There was a lot of volatility in the quarter.

Speaker Change: And it just it was a dampening of demand as we came out of some of that volatility too.

Speaker Change: We are going to be and have said be thoughtful very thoughtful about acquiring the right type of.

Operator: One moment for questions. Our next question comes from Jed Kelly with Oppenheimer. You may proceed. Hey, great.

Speaker Change: Right type of user and we're very careful about our marketing spend in the quarter.

Jed Kelly: Thanks for taking my questions. Um, can you just talk about the competition you're seeing in performance marketing channels with some of your competitors, both with Viator and with Court TripAdvisor? Seems like some of your competitors recently have indicated, you know, they're still going to spend a lot going into 24. Thank you. Yeah. Yeah, Jed.

Speaker Change: And then secondly, I'd say we're lapping.

Speaker Change: When you think about the funnel we're lapping some.

Speaker Change: Prices and margin.

Speaker Change: Impacts that have helped revenue right through the year in 2023.

Speaker Change: And these are things that as we look forward you Wouldnt expect would be a bigger contributor to revenue. So when you think about that.

Michael Noonan: So, I'd say, as you know, these markets are extremely competitive, you know, different competitors in different areas. You know, Viator, the experience of space is a competitive one. You do have a broad competitive dynamics in the pay channels. Obviously, there are a few operators that are larger and more at scale that tend to show up in those pay channels more regularly, but you still have a pretty broad, kind of long tail of others that are bidding in that market. You know, fewer that are in the brand campaigns, again, those are more of the scaled operators and experiences that are actually, you know, marketing and branding, very specific to the experiences. We would assume that this would continue. And that's where we are again getting back to being disciplined about our acquisition, you know, making sure we're using our dollars wisely to attract users that we think will convert. But not just convert; we'll come back.

Speaker Change: If we had a kind of a.

Speaker Change: New user demand was a little bit lower because of.

Because of some of the macro and the things. We said, yes, I think that you would have a knock on effect as you move into the into the new year.

Speaker Change: But we feel pretty good about where we are.

Speaker Change: And the position that we have.

Speaker Change: Kind of where we're starting the year.

Speaker Change: But but yes that would be.

Speaker Change: Actual statements so.

Speaker Change: Second questions. Thanks, our love the question about.

Speaker Change: The experiences opportunity.

Speaker Change: Can you talk about experiences in dining.

Speaker Change: Really experiences is proving out what we've talked about is being able to diversify tripadvisor and take advantage of marketplace economics, and really think about how to match supply and demand and so the $180 million.

Speaker Change: Incremental experienced shoppers that I mentioned is an example of that really understanding why.

Michael Noonan: And that's the key, as you know, we've said for some time, to how we think about the economic model. At Brand TripAdvisor... When you think about primarily hotel meta, you know, that is, you know, a very competitive marketplace. And you think about where we are competing against in the pay channels are, you know, all the players you would imagine in the hotel ecosystem. And, you know, that's why, again, we have to be very disciplined in our approach.

Speaker Change: Our audience comes to our site and when we have that kind of scale being thoughtful about how we leverage data understanding identity and really leading them on the path that they are there to transact on or search for that next opportunity and so that's going to drive I think meaningful upside now today.

Speaker Change: We've proven it out largely through the relationship with Viator and we're really excited because tripadvisor offers this really broad guidance platform and of course <unk> offers this.

Michael Noonan: We've been very disciplined by, as we've said many times, maintaining our marketing ROAS. We are excited about the investments that Matt really alluded to in his prepared remarks around thinking about using data and personalization around, again, acquiring the right type of user that we believe can really convert, not just convert, but actually have sustainability and an LTV to it, right, that we believe can get to the app. We believe can get to some of the goodness that Matt talked about that we see in our app ecosystem. And we are starting to really think about how we So we're excited about where that can lead us this year. And again, we'll continue to be nimble as we move through the year in both areas. Thank you.

Speaker Change: Deep well of opportunities deeper.

Speaker Change: <unk> than anywhere else, you can find in and being able to bring those two together has driven tremendous growth and we are finding new and different ways for those two.

Speaker Change: Businesses to work together to really drive that growth, but at Tripadvisor as there is an opportunity to bring in more inventory to think about matching by geography by category and maybe even categories that <unk> doesn't represent today that we can find elsewhere, it's something we can do.

Speaker Change: And that will drive significant upside for a long time to come I. Also think you are right as we think about engaging our highest value audience as members and increasingly on our mobile app. The cross sell of wanting to do a full itinerary, starting with generative AI and identifying that thing that is most.

Operator: One moment for questions. Our next question comes from Brian Fitzgerald with Wells Fargo. Okay.

Speaker Change: Relevant and being able to make it happen right. There in the App gives us tremendous cross sell opportunities and the opportunity to create tremendous value through that relationship as I said I think over the last year. We've articulated this from the start quarter by quarter. We've said, what we've done in product the proof points the indicators that that.

Brian Nicholas Fitzgerald: Thanks, guys. A quick follow-up on Viator, a nice quarter. FX Neutral Growth 25%. Can you talk a little bit about the competition and it being a competitive space? Is that sequential de-sell there? Is it a factor of that consumer demand? Or is it the competition you talked to?

Speaker Change: Engagement can happen and I think you are seeing the emerging a view of what this strategy can do to drive the diversification of Tripadvisor. So thanks for the question, we're real excited about it.

Michael Noonan: Or is it really, it sounded like from the main call, it's just a normalization of pent-up demand in prior periods. So, if you could kind of parse out, hey, it's consumer demand on macro, hey, it's competition, hey, it's normalization, hey, it's one-third of each of those. And then experiences in dining revenue on brand trip was up 12% year-over-year, so we're seeing nice growth there. How much runway is there, and how would you assess your ability to cross-sell inventory across travel, dining, and experiences? Is there more runway to drive? experiences and dining out of Brandtrip. Thanks. Yep, great. I'll take the first one.

Speaker Change: And if I could real quickly as a follow up could you both mentioned hey, we're using we're using data.

Speaker Change: AI to pursue high quality versus low quality traffic and so we're informing ourselves in that regard and then Matt you. Just mentioned that you are using data to better match and to cross sell it.

Speaker Change: Could you really quickly assess.

Speaker Change: Your current strength or how much runway we have in terms of hey, we're in early days of taking data and applying it to both optimize our CAC or optimize our matching.

Speaker Change: Are we on the spectrum of Hey, we've still got a lot of data that were not bringing the bear yet.

Speaker Change: Yes, I mean, it's early days remember when I first arrived it was when we articulated the vision that we could do more with data we proceeded to put a unified group data platform in place we flowed all of our data into that it now has over 3 billion profiles and then we created the opportunity and the tools for all of the segment.

Matthew Goldberg: Matt, take a second. Yeah, so what do you think about, and I think the question is really around Q4 de-sell. I think it's really two big areas, right? One, it's really, as we said, a slowdown in new bookings. And that is really driven by two things. One, macro.

Speaker Change: To leverage that data with the appropriate governance and privacy to begin to target. So it's very early innings, there and we are using that same data asset and all it.

Michael Noonan: There was a lot of volatility in the quarter, and just, you know, there was a dampening of demand as we came out of some of that volatility. You know, two things we are going to be, and have said, thoughtful, very thoughtful about acquiring the right type of, right type of user. And we're very careful about our marketing spend in the quarter. And then secondly, I'd say, you know, we are. We are lapping.

Speaker Change: It's not only identity its behavioral data clickstream data, it's the booking data where we have it we have the ability to bring on second party data now that we didn't have before and of course, a pen third party data. So we are beginning to get a data stack with the appropriate.

Michael Noonan: When you think about the funnel, we're lapping some, you know, prices and margin impacts that have helped revenue right through the year in 2023. And these are things that, as we look forward, you wouldn't expect would be as big a contributor to revenue. So when you think about that, you know, if we had a kind of new user, demand was a little bit lower because of some of the macro and the things we said, you know, yes, I think that you'd have a knock-on effect as you move into the new year. But you know, we feel pretty good about where we are in the position that we have, you know, kind of where we're starting the year. But, but yeah, that would be a factual statement. So, second question. Yeah, thanks.

Speaker Change: Marketing.

Speaker Change: Tech tools to to begin to target and to begin to use that in all areas of our product development and really that's what allowed us to move quickly on on putting AI at the center of it and because if you have a brand of our size and you have a set of content data and first party.

Speaker Change: Haverhill data with your audience you can create more relevance more personalization, but it is early these are not things that you do immediately overnight. These are things that stack quarter by quarter and we are in that process of stacking. So I think youll see us continue to progress that over time.

Speaker Change: I appreciate it.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Matthew Goldberg: I love the question about the experiences opportunity. And, you know, you talk about experiences in dining. Really, experiences are proving what we've talked about, as being able to diversify TripAdvisor and take advantage of marketplace economics, and really think about how to match supply and demand. And so the 180 million incremental experience shoppers that I mentioned are an example of that really understanding why our audience comes to our site. And when we have that kind of scale, being thoughtful about how we leverage data, understand identity, and really lead them on the path that they are there to transact on or search for that next opportunity. And so, you know, that's going to drive meaningful upside. Now, today, we've proven it out largely through the relationship with Viator.

Speaker Change: Our next question comes from Trevor Young with Barclays. You May proceed.

Trevor Young: Great. Thanks, just on <unk>, what are the two or three hurdles that keep new customers from coming back and what steps you're doing to kind of retain those customers and get them to start behaving more like those repeat customers with more items per trip and higher price per item is.

Trevor Young: Is it those efforts to just try to distill down to those higher quality customers day, one is it going to be the loyalty program is it expanding the supply and better surfacing the right supply like you mentioned a couple of minutes ago.

Speaker Change: Yeah look thanks for the question I think.

Speaker Change: Via tour was onto this very early the single biggest.

Speaker Change: Hurdle is that most of this transacting still happens offline.

Matthew Goldberg: And we're really excited because TripAdvisor offers this really broad guidance platform. And, of course, Viator offers this, you know, deep well of opportunities, you know, deeper than anywhere else you can find. And being able to bring those two together has driven tremendous growth, and we are finding new and different ways for those two businesses to work together to really drive that growth. But at TripAdvisor, there is an opportunity to bring in more inventory, to think about matching by geography, by category, and maybe even categories that Viator doesn't represent today that we can find elsewhere is something we can do. And that will drive significant upside for a long time to come. I also think you're right.

Speaker Change: And so there is an <unk>.

Speaker Change: Wariness that the category exists when we talked to travelers almost all of them would love to book a great relevant experience easily online and then like three quarters of those don't even realize that the category exists. So.

Speaker Change: We're excited about the awareness that is rising for the category in general.

Speaker Change: I think.

Speaker Change: We're excited that via towards getting attached to it as we've really leaned into that the second thing is probably just giving them a really easy smooth experience that works.

Speaker Change: And the <unk> team has been on top of this <unk> been focused on scaling their customer base, making the very first end to end booking a trusted valuable experience with a reason to return, creating the kinds of tools and relevance that make it a habit to come back to <unk> and then of course.

Matthew Goldberg: As we think about engaging our highest-value audience as members and increasingly on our mobile app, the cross-sell of wanting to do a full itinerary, starting with generative AI, and identifying that thing that is most relevant, and being able to make it happen right there in the app gives us tremendous cross-sell opportunities and the opportunity to create tremendous value through that relationship. As I said, I think over the last year, we've articulated this from the start. Quarter by quarter, we've said what we've done in product, the proof points, the indicators that that engagement can happen. And I think you are seeing the emerging view of what this strategy can do to drive the diversification of TripAdvisor. So, thanks for the question. We're real excited about it.

Speaker Change: On the other side, making sure that they create real value for operators through strategic programs and we get excited when our operator accounts or are the largest in the industry and we have multiples more product represented on our on our category because if we can figure out the sort and have the right data to match to somebody's into.

Speaker Change: <unk> that just means we're going to do a better job and ultimately be the default choice not only for our partners, but also for consumers.

Speaker Change: That's helpful. Thank you.

Speaker Change: Thank you I would now like to turn the call back over to Matt Goldberg for any closing remarks.

Thank you and thanks again to everyone for joining US today, we made great progress in 2023.

Brian Nicholas Fitzgerald: And if I could follow up real quickly, because you both mentioned, we're using data and AI to pursue high quality versus low quality traffic. And so we're informing ourselves in that regard. And, and then Matt, you just mentioned, hey, we're using data to better match and to cross cell. It could really quickly assess your current strength or how much runway we have in terms of, hey, we're in the early days of taking data and applying it to both, you know, optimize our CAC or optimize our matching. Where are we on the spectrum of, hey, we've still got a lot of data that we're not bringing to bear yet? Yeah, I mean, it's early days.

Matt Goldberg: Our talented teams are focused on executing on clear strategies for 2024, and we look forward to the next update thank you.

Speaker Change: Thank you for your participation you may now disconnect.

Matthew Goldberg: Remember, when I first arrived, it was when we articulated the vision that we could do more with data. We proceeded to put a unified group data platform in place, we flowed all of our data into that, and it now has over 3 billion profiles. And then we created the opportunity and the tools for all of the segments to leverage that data with the appropriate governance and privacy to begin to target. So it's in the very early innings there.

Matthew Goldberg: And we are using that same data asset. And all it's, you know, it's not only identity, it's behavioral data, clickstream data, it's the booking data where we have it. We have the ability to bring in second-party data now that we didn't have before. And, of course, third-party data.

Speaker Change: [music].

Matthew Goldberg: So we are beginning to get a data stack with the appropriate marketing tech tools to begin to target and begin to use that in all areas of our product development. And really, that's what allowed us to move, you know, quickly on putting AI at the center of it. And because, you know, if you have a brand of our size, and you have a set of content data and first-party behavioral data on your audience, you can create more relevance, more personalization, but it is early. You know, these are not things that you do immediately overnight.

Matthew Goldberg: These are things that stack quarter by quarter, and we're in that process of stacking. So I think you'll see us continue to progress in that over time. Awesome. I appreciate it.

Matthew Goldberg: Thank you. One moment for questions. Our next question comes from Trevor Young with Barclays. You may proceed. Great, thanks.

Trevor Young: Just on Viator, what are the two or three hurdles that keep new customers from coming back? And what steps are you doing to kind of retain those customers and get them to start behaving more like those repeat customers with, you know, more items per trip and higher prices per item? Is it those efforts to just try to distill down to those higher quality customers from day one? Is it going to be the loyalty program? Is it expanding the supply and better surfacing the right supply, like you mentioned a couple minutes ago? Yeah, look, thanks for the question.

Matthew Goldberg: I think, you know, Viator was on to this very early. The single biggest hurdle is that most of this transacting still happens offline. And so there's an awareness that the category exists. But when we talk to travelers, almost all of them would love to book a great, relevant experience easily online. And then, like, three-quarters of those don't even realize that the category exists.

Matthew Goldberg: So we're excited about the awareness that is rising for the category in general, and I think we're excited that Viator is getting attached to it as we've really leaned into that. So the second thing is probably just giving them a really easy, smooth experience that works.

Matthew Goldberg: And the Viator team has been on top of this. You know, they've been focused on scaling their customer base, making the very first end-to-end booking a trusted, valuable experience with a reason to return, creating the kinds of tools and relevance that make it a habit to come back to Viator, and then, of course, on the other side, making sure that they create real value for operators through strategic programs. And we get excited when our operator counts are the largest in the industry and, you know, we have multiples more products represented in our category. Because if we can figure out the sort and have the right data to match somebody's interest, that just means we're going to do a better job and ultimately be the default choice not only for our partners but also for consumers. That's helpful.

Matthew Goldberg: Thank you. Thank you. I would now like to turn the call back over to Matt Goldberg for any closing remarks. Thank you.

Matthew Goldberg: And thanks again to everyone for joining us today. We made great progress in 2023. Our talented teams are focused on executing on clear strategies for 2024. And we look forward to the next step. Thank you. Thank you for your participation. You may now disconnect. Welcome to the TripAdvisor fourth quarter 2023 conference call. At this time, all participants are in a listen-only mode.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Angela White: 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. Thank you, Josh.

Angela White: Good morning, everyone, and welcome to TripAdvisor's fourth quarter and full year 2023 financial results call. Joining me today are Matt Goldberg, President and CEO, and Mike Noonan, CFO. Last night after the market closed, we filed and made available our earnings release.

Angela White: 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, February 15, 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.

Speaker Change: [music].

Matthew Goldberg: Thanks, Angela. And good morning, everyone. Before I begin, I'd like to address the press release we filed on Monday. We announced that our Board of Directors has formed a special committee to evaluate any proposals resulting from Liberty TripAdvisor Holdings' stated intention to engage in discussions with respect to a potential transaction. We appreciate your understanding that we won't address any questions on this topic today or provide further updates unless we have something definitive to share. Now, I'd like to address our performers.

Matthew Goldberg: We were pleased to exit the year with results that exceeded our expectations. Q4 revenue was $390 million, reflecting year-over-year growth of 10%. Q4 adjusted EBITDA was $84 million, 22% of revenue, exceeding expectations due to revenue outperformance at Brand TripAdvisor and marketing efficiencies at both Brand TripAdvisor and Viaduct. For the full year, consolidated revenue grew by 20% to an all-time high of $1.8 billion, and adjusted EBITDA grew 13% to $334 million. Last year, we made meaningful progress executing against our strategic priorities. We reinforced our market leadership position at Viator while sharpening our focus on smart user acquisition. Viator also finished the year at break-even profitability, achieving the full-year milestone a year earlier than anticipated.

Speaker Change: Good day and thank you for standing by welcome to the Tripadvisor fourth quarter 2023 conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session. Please press star one one on your telephone and wait for your name to be announced.

Matthew Goldberg: At Brand TripAdvisor, we invested in our strategy and delivered promising early proof points while maintaining financial discipline. Finally, at the fork, we delivered revenue gains while significantly improving our profit margin through disciplined cost management and exited the year at break-even for Q4. Our results also reflect how we're building a stronger, more diversified, and defensible position in the large and growing global travel and experiences category. We have a unique and leading position in the high-growth experiences category, given the breadth of TripAdvisor and the depth of viability within Brand TripAdvisor. Experiences, along with other partner offerings beyond our legacy HotelMeta offering, are now contributing almost half of the revenue versus less And across the group portfolio, Viator and The Fork have grown to nearly 50% of our revenue in 2023 versus less than 10% in 2015. And they've each reached the scale to deliver increasing profitability. Let me highlight our accomplishments and look ahead to 2024 priorities for each sector.

Speaker Change: Withdraw your question. Please press star 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 VP of IR.

Angela White: Thank you Josh.

Angela White: Good morning, everyone and welcome to Tripadvisor with fourth quarter and full year 2023, and financial results call. Joining me today are backhaul Bergh, 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 measure discussed on this call.

Angela White: 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 February 15, 2020 for 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.

Angela White: Turning 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, everyone.

Matt Goldberg: Before I begin I'd like to address the press release, we filed on Monday, We announced that our board of Directors has formed a special committee to evaluate any proposals, resulting from Liberty Tripadvisor Holdings stated intention to engage in discussions with respect to a potential transaction. We appreciate your understanding that we won't address any questions on this topic today.

Matthew Goldberg: At Brand TripAdvisor, we kicked off 2023 by introducing a multi-year strategic vision that focuses on delivering world-class guidance products to deepen engagement with our audience and fuel diverse monetization. Over the course of the year, we delivered tangible progress through product innovation. We relaunched our TRIPS tool for creating itineraries and integrated generative AI deeply into the user experience.

Matt Goldberg: We'll provide further updates unless we have something definitive to share now.

Matt Goldberg: Now I would like to address our performance we were pleased to exit the year with results that exceeded our expectations Q4 revenue was $390 million, reflecting year over year growth of 10% Q4, adjusted EBITDA was $84 million, 22% of revenue exceeding expectations due to revenue outperformance at brand Tripadvisor.

Matthew Goldberg: I previously cited a few proof points that demonstrate the impact, and we're pleased that each of these has continued to improve over time. First, the average revenue per TRIPS user shortly after launch was three times higher than the average member. That has now increased to closer to five times, and our average member already monetizes at approximately ten times the rate of the average non-member. Second, we saw a 100% increase in the number of daily users who generated and saved an itinerary specifically with AI in the back half, with limited marketing effort, and the majority are now engaging with this tool in our app. Finally, we continue to see growth in the return rates for Trip users whose repeat rates are meaningfully higher than users who don't use the tool.

Matt Goldberg: <unk> and marketing efficiencies at both brands Tripadvisor and Viator.

Matt Goldberg: For the full year consolidated revenue grew by 20% to an all time high of $1 8 billion and adjusted EBITDA grew 13% to $334 million.

Matt Goldberg: Last year, we made meaningful progress executing against our strategic priorities, we reinforced our market leadership position in <unk>, while sharpening our focus on smart user acquisition.

Matt Goldberg: <unk> also finished the year at breakeven profitability, achieving the full year milestone a year earlier than anticipated at.

Matt Goldberg: That brand Tripadvisor, we invested in our strategy and delivered promising early proof points, while maintaining financial discipline.

Matthew Goldberg: During the year, we also introduced generative AI-driven hotel review summaries, an important example of how we're uniquely positioned to use technology to draw differentiated insights from our proprietary database of quality content and behavioral data. Across the 30,000 plus hotels where this is currently available, we're seeing early but strong positive indications. For example, user satisfaction scores are nearly 75%, which is even higher than the strong initial scores for our Trips feature.

Matt Goldberg: Finally at <unk>, we delivered revenue gains while significantly improving our profit margin through disciplined cost management and exited the year at breakeven for Q4.

Matt Goldberg: Our results also reflect how we are building a stronger more diversified and defensible position in the large and growing global travel and experiences industry.

Matt Goldberg: We have a unique and leading position in the high growth experiences category, given the breath of Tripadvisor and the depth of Viator within brand Tripadvisor experiences along with other partner offerings beyond our legacy hotel meta offering are now contributing almost half of the revenue versus less than one third in 2015.

Matthew Goldberg: We continue to bring more travelers to our experiences pages. In 2023, 180 million more travelers will use TripAdvisor to shop for experiences than in 2022. As a result, we drove revenue growth rates higher than any other category in the segment, at approximately 45%. Importantly, this strong demand reflects the opportunity we have to match additional supply, adding relevant new inventory and partners across geographies and categories, representing meaningful upside for experiences on TripAdvisor. 2024 will be a year of acceleration for TripAdvisor. Here are a few of our priorities.

Matt Goldberg: Reflecting our ability to diversify our monetization and reduce dependence on hotel <unk> revenue and.

Matt Goldberg: And across the group portfolio via tour in the Fork have grown to nearly 50% of our revenue in 2023 versus less than 10% in 2015, and they've each reached the scale to deliver increasing profitability.

Matt Goldberg: Let me highlight our accomplishments and look ahead to 2024 priorities for each segment at.

Matt Goldberg: That brand Tripadvisor, we kicked off 2023 by introducing a multiyear strategic vision that focuses on delivering world class guidance products to deepen engagement with our audience and fueled diverse monetization path.

Matthew Goldberg: First, we'll deliver a differentiated experience in the mobile app. To put it simply, our existing app users are more engaged and more valuable than users on other services. They account for a relatively small percent of our total MAUs but a disproportionate number of reviews and trips created at 30% and over 60% respectively. Our aim is to deliver an essential app for travelers that convinces more of our audience to download and use the app as the best end-to-end trip companion, powered by AI.

Matt Goldberg: Over the course of the year, we delivered tangible progress through product innovation, we relaunched our trips tool for creating itineraries and integrated generative AIG deeply into the user experience.

Matt Goldberg: I have previously cited a few proof points that demonstrate the impact and were pleased that each of these has continued to improve over time.

Matt Goldberg: The average revenue per trips user shortly after launch was three times higher than the average member that has now increased to closer to five times and our average member already monetize at approximately 10 times the rate of the average non member.

Matthew Goldberg: Second, we'll begin to shift our marketing in support of our engagement-led strategy. Historically, we've optimized everything from our paid search spend to CRM to drive immediate click-and-display reviews. With the progress we've made on our product, we now have the opportunity to target higher-value audiences more directly and drive more users to sign up and sign in as members, download our app, and begin planning a trip, because we know each of these behaviors is orders of magnitude more valuable to us than same-session clicks. Finally, we'll leverage the investments we've made in data and AI to deliver a more personalized experience for our users, particularly our highly This starts with recognizing them for their contributions to our community and extends to broader benefits and rewards we can offer through our free membership program.

Matt Goldberg: Second we saw a 100% increase in the number of daily users, who generated and saved an itinerary specifically with AI in the back half of the year with limited marketing efforts and the majority are now engaging with this tool in our app.

Matt Goldberg: Finally, we continue to see growth in the return rates for trip users, who is repeat rates are meaningfully higher than users who don't use the tool.

Matt Goldberg: During the year. We also introduced generative AI driven hotel review summaries and important example of how we are uniquely positioned to use technology to drive differentiated insights from a proprietary database of quality content and behavioral data.

Matt Goldberg: Cross the 30000, plus hotels, where this is currently available we are seeing early but strong positive indicators user satisfaction scores are nearly 75%, which is even higher than the strong initial scores for our trips feature at launch.

Matthew Goldberg: It also includes new ways to engage with our product, including AI-driven conversational search and iterative trip planning capabilities that better integrate commerce opportunities by helping travelers find the right hotel, experience, or restaurant to round out their itinerary. Next, at Viator, in 2023, we made significant progress to reinforce our leadership position in experiences by investing in and improving our product for both travelers and operators, and continuing to drive our scale. This year was an impressive year of revenue growth at 49%, bringing Viator revenue to 41% of total group revenue. GBV grew to over 40% to more than $3.7 billion, and we also reached break-even profitability for the full year earlier than anticipated. This milestone reflects the power of the model and the operating cost leverage our Lean Fixed Cost Structure affords.

Matt Goldberg: We continue to bring more travelers to our experiences pages in 2023, a $180 million more travelers use tripadvisor to shop for experiences than in 2022. As a result, we drove revenue growth rates higher than any other category in the segment at approximately 45 <unk>.

<unk>.

Matt Goldberg: Importantly, this strong demand reflects the opportunity we have to match additional supply, adding relevant new inventory and partners across geographies and categories, representing meaningful upside for experiences on tripadvisor.

Matt Goldberg: 2024 will be a year of acceleration for brand Tripadvisor here are a few of our priorities.

Matt Goldberg: First we will deliver a differentiated experience in the mobile app.

Matt Goldberg: To put it simply our existing App users are more engaged and more valuable than users on other services our surfaces.

Matt Goldberg: They account for a relatively small percent of our total MA, but a disproportionate number of reviews and trips created at 30% and over 60% respectively. Our aim is to deliver an essential app for travelers that convinced as more of our audience to download and use the app as the best end to end trip companion.

Matthew Goldberg: On the demand side, we optimized our brand campaign, growing our awareness and reinforcing our position as the most well-known experiences brand in the U.S. We made improvements across nearly every part of the shopping experience, on every surface. We've enhanced our search for better discoverability, matured the app and grew its share of bookings, and improved the post-booking experience across the board.

Matt Goldberg: Powered by AI.

Matt Goldberg: Second we'll begin to shift our marketing in support of our engagement led strategy historically, we've optimized everything from our paid search spend to CRM to drive immediate click and display revenue.

Matt Goldberg: With the progress we've made against our product, we now have the opportunity to target higher value audiences more directly and drive more users to sign up and sign in as members to download our app and to begin planning a trip because we know each of these behaviors is orders of magnitude more valuable to us than same session.

Matthew Goldberg: These and other updates contributed to double-digit growth and conversion across the business. Our new rewards program, meanwhile, is driving value for customers. The early proof points drove a mid-teens improvement in retention for travelers using the program.

Matt Goldberg: Alex.

Matthew Goldberg: And our most loyal users are our fastest-growing customer segment. They're more likely to come through unpaid and immediately profitable channels and spend more than first-time users, driving improvement in our unit economy. For operators, we launched our latest version of the marketing program, Accelerate. We consulted more than 5,000 operators in its creation, and this consideration shows in the results.

Matt Goldberg: Finally, we will leverage the investments we've made in data and AI to deliver a more personalized experience for our users, particularly our highly engaged members. This starts with recognizing them for their contributions to our community and extends to broader benefits and rewards we can offer through our free membership program.

It also includes new ways to engage with our product, including an AI driven conversational search experience and iterative trip planning capabilities that better integrate commerce opportunities by helping travelers find the right hotel experience or restaurant to round out their itinerary.

Matthew Goldberg: Well over 50% of eligible products participate in the program, which continues to support our healthy take-home. With the largest product inventory and supply base available anywhere, the value we are driving for operators is clear. Churn rates are low, and supplier and product counts are steadily increasing. In Viator in 2024, we remain focused on growing our scale, balancing growth, profitability, and market share as the global market leader in experiences. With an eye on profitable growth, we expect to drive improvements in unit economics through a combination of initiatives focused on lowering customer acquisition costs, increasing retention, and enhancing lifetime value. On the demand side, our focus is on an improved experience along the customer journey, from first-time interaction to long-standing returning customers. These are unique experiences for most travelers, so it's important that at the first interaction, we begin to build our relationship of trust and value so they return to book their next memorable experience.

Matt Goldberg: Next at via <unk> in 2023, we made significant progress to reinforce our leadership position in experiences by investing in improving our product for both travelers and operators and continuing to drive our scale.

Matt Goldberg: This year was an impressive year of revenue growth at 49%, bringing <unk> to our revenue to 41% of total group revenue.

Matt Goldberg: <unk> grew to over over 40% to more than $3 7 billion and we also reached breakeven profitability for the full year earlier than anticipated.

Matt Goldberg: This milestone reflects the power of the model and the operating cost leverage our lean fixed cost structure affords.

Matt Goldberg: On the demand side, we optimized our brand campaign growing our awareness and reinforcing our position as the most well known experiences brand in the U S.

Matt Goldberg: We made improvements across nearly every part of the shopping experience on every surface.

Matt Goldberg: We've enhanced our sort for better discover ability matured the app and grew its share of bookings and improved the post booking experience across the board.

Matthew Goldberg: We'll do this by leveraging our group customer data platform and delivering a more robust, personalized experience for travelers. We'll also continue to focus on enhancing our app value. We know that app users convert to bookers at a rate higher than desktop or mobile web users, so we'll continue to emphasize app engagement.

Matt Goldberg: These and other updates contributed to double digit growth in conversion across the business.

Matt Goldberg: Our new rewards program. Meanwhile, is driving value for customers.

Matt Goldberg: The early proof points drove mid teens improvement in retention for travelers using the program.

Matt Goldberg: And our most loyal users are our fastest growing customer segment. They are more likely to come through unpaid and immediately profitable channels and spend more than first time users driving improvement in our unit economics.

Matthew Goldberg: We'll also continue to optimize marketing spend and our overall channel strategy, focusing on acquiring the highest intent customers and continuing to drive awareness. We expect to see improvement in unit economics as our multi-channel marketing investments gain traction. On the operator side, we'll continue to drive value through programs aimed at helping operators increase their exposure through features such as incremental performance tracking and in. The combination of work to enhance the experience for both sides of the marketplace should help operators continue to see value and remain loyal over time.

Matt Goldberg: For operators, we launched our latest version of the marketing program accelerate.

Matt Goldberg: We consulted more than 5000 operators in its creation and this consideration shows in the results well over 50% of eligible products participate in the program, which contributes which continues to support our healthy take rate.

Matt Goldberg: With the largest product inventory and supply base available anywhere the value. We are driving for operators is clear churn rates are low and supplier and product counts are steadily increasing.

<unk> in 2024, we remain focused on growing our scale balancing growth profitability and market share as the global market leader in experiences.

Matthew Goldberg: Finally, in 2023, we began the transition to deliver profitable growth, leveraging past investments and improving our unit economics while maintaining our leadership position in dining in Europe. We grew revenue 19% in constant currency and also delivered a significant margin improvement of 22 percentage points, a swing of $25 million in EBITDA as a result of disciplined cost management. During 2023, we continued to rationalize our footprint to focus on priority European markets, modernized our technology platform to drive speed of product innovation, and launched new products and services for both diners and restaurants. The team shipped more features in the last six months than they had in the previous six years, resulting in a stronger value proposition for both sides of the market.

Matt Goldberg: With an eye on profitable growth, we expect to drive improvements in unit economics through a combination of initiatives focused on lowering customer acquisition costs, increasing retention and enhancing lifetime value.

Matt Goldberg: On the demand side, our focus is on an improved experience along the customer journey from first time interaction to long standing returning customers. These are unique experiences for most travelers. So it's important that at first interaction we begin to build a relationship of trust and value. So they returned back to book.

Matt Goldberg: Their next memorable experience.

Matt Goldberg: We'll do this by leveraging our group customer data platform and delivering a more robust personalized experience for travelers will also continue to focus on enhancing our app value proposition, we know that app users convert to bookers at a rate higher than desktop or mobile web users. So we'll continue to emphasize app engagement opportunities.

Matthew Goldberg: For diners, we focused on improving the app user experience, resulting in higher conversion rates where 75% of our bookings are made. For restaurants, we stabilized churn and drove more than 20% growth in B2B revenue and new restaurant signatures by migrating our ERB to a single platform, introducing new features for payments and yield management, and improving our sales efficiency. At the fork in 2024, we'll continue to make a steady transition to annual profitable growth by focusing on our largest opportunity markets, marketing efficiency, sales productivity, and product-led innovation, a strategy to increase our efforts around repeat diners while taking a measured approach to. For diners, we'll focus on driving app-based engagement and conversion through quality content, personalization, recommendations, and incentives to return. For restaurants, we'll focus on value-add ERB features, value-based pricing options, revenue management features, and the ability to market special offers to our growing base of high-intent diners.

Matt Goldberg: Yes.

Matt Goldberg: We will also continue to optimize marketing spend and our overall channel strategy focusing on acquiring the highest intent customers and continuing to drive awareness.

Matt Goldberg: We expect to see improvement in unit economics at our multichannel marketing investments gain traction.

Matt Goldberg: On the operator side will continue to drive value through programs aimed at helping operators increased their exposure through features such as incremental performance tracking and insights.

Matt Goldberg: The combination of work to enhance the experience for both sides of the marketplace should help operators continue to see value and remain loyal overtime.

Matt Goldberg: Finally at the Fork in 2023, we began the transition to deliver profitable growth leveraging past investments in improving our unit economics, while maintaining our leadership position in dining in Europe.

Matt Goldberg: We grew revenue 19% in constant currency and also delivered significant margin improvement of 22 percentage points, a swing of $25 million in EBITDA as a result of disciplined cost management.

Matt Goldberg: During 2023, we continue to rationalize our footprint to focus on priority European markets modernized our technology platform to drive speed of product innovation and launch new products and services for both diners and restaurant partners.

Matthew Goldberg: We expect our combined initiatives to drive growth in our average revenue per restaurant and continue to improve our unit economics as we leverage the benefit of a streamlined cost structure. To close, we're motivated by our progress in 2023, and we believe that our strategies are delivering results. In 2024, we'll continue to pursue a disciplined financial profile with investment for longer-term growth and transformation across the portfolio. We believe that travel has a sustainable long-term growth path ahead. In 2023, we saw healthy underlying demand despite the backdrop of macro uncertainty, which is testament to consumers prioritizing travel over other discretionary categories. Our traveler surveys reflect steady travel and spending intent in 2024, with a focus on experiences as a central component. We believe this puts TripAdvisor Group in an advantageous position as we build on our vision to be the world's most trusted source for travel and experiences. And now, I'll turn the call over to Mike. Thank you, Matt.

Matt Goldberg: The team shipped more features in the last six months than they had in the previous six years, resulting in a stronger value proposition for both sides of the marketplace for.

Matt Goldberg: For diners, we focused on improving the app user experience, resulting in higher conversion rates were 75% of our bookings are made.

Matt Goldberg: For restaurants, we stabilized churn and drove more than 20% growth in <unk> revenue and new restaurant signatures by migrating our ERP to a single platform introducing new features for payments and yield management and improving our sales efficiency.

At the Fork in 2024 will continue to make steady transition to annual profitable growth by focusing on our largest opportunity markets marketing efficiency sales productivity and product led innovation.

Matt Goldberg: We will evolve our marketing strategy to increase our efforts around repeat diners, while taking a measured approach to brand investments and prioritize markets for.

Matt Goldberg: For diners will focus on driving App based engagement and conversion through quality content personalization recommendations and incentives to return.

Matt Goldberg: For restaurants will focus on value add ERP features value based pricing options revenue management features and the ability to market special offers to our growing base of high intent diners.

Matt Goldberg: We expect our combined initiatives to drive.

Growth in our average revenue per restaurant and continue to improve our unit economics as we leverage the benefit of our streamlined cost base.

Michael Noonan: And good morning, everyone. I'll start by reviewing our Q4 and full year 2023 performance, and then I'll provide high-level thoughts on 2020. All growth rates for 2023 are relative to the comparable period in 2022 unless otherwise indicated. For example, Q4 consolidated revenue was $390 million, reflecting growth of 10% or 8% on a constant currency basis. Adjusted EBITDA was $84 million, or 22% of revenue, and 10 percentage points higher than last year. Consolidated performance was higher than our expectations, primarily due to a more favorable traffic mix at Brand TripAdvisor and Discipline Marketing Spend Advisor. Turning to segment performance for the quarter, Brand TripAdvisor delivered revenue of $218 million, approximately flat year-over-year. Revenue in branded hotels was $135 million, a decline of 4%, driven by a low single-digit decline in hotel meta and flat to slightly down performance in hotel B2B.

Matt Goldberg: To close we're motivated by our progress in 2023, and we believe that our strategies are delivering results in.

In 2024 will continue to pursue a disciplined financial profile with investment for longer term growth and transformation across the portfolio.

Matt Goldberg: We believe the travel has a sustainable long term growth path ahead in.

Matt Goldberg: In 2023, we saw healthy underlying demand despite the backdrop of macro uncertainty, which is testament to consumers prioritizing travel over other discretionary categories.

Matt Goldberg: Our traveler surveys reflect steady travel and spending intent in 2024 with a focus on experiences as a central component.

Matt Goldberg: We believe this puts tripadvisor group in an advantaged position as we build on our vision to be the world's most trusted source for travel and experiences.

Matt Goldberg: And now I'll turn the call over to Mike. Thank.

Mike J. Olson: Thank you, Matt and good morning, everyone I'll start by reviewing our Q4 and full year 2023 performance and then I'll provide high level thoughts on 2020 for all.

Mike J. Olson: All growth rates for 2023 are relative to the comparable period in 2022.

Mike J. Olson: Less otherwise indicated.

Mike J. Olson: Q4, consolidated revenue was $390 million reflect reflecting growth of 10% or 8% on a constant currency basis, adjusted EBITDA was $84 million or 22% of revenue and 10 percentage points higher than last year.

Michael Noonan: Hotel Metaperformance was driven by sustained pricing strength in both free and paid channels, which was offset by lower click volumes, primarily in paid channels, as we continue to manage these channels for profitability by maintaining consistent ROAS targets. From a revenue perspective, growth in Hotel Meda in the U.S. and rest of the world was flat to slightly up, while EMEA declined in line with prior quarters. Importantly, revenue from free channels remains stable.

Mike J. Olson: Consolidated performance was higher than our expectation primarily due to a more favorable traffic mix at branch of advisor and disciplined marketing spend at <unk>.

Mike J. Olson: Turning to segment performance for the quarter brand Tripadvisor delivered revenue of $218 million.

Mike J. Olson: Approximately flat year over year.

Mike J. Olson: Revenue in branded hotels was $135 million a decline of 4% driven by low single digit decline in hotel meta and flat to slightly down performance in hotel <unk>.

Michael Noonan: As a result, Hotel Medic's contribution profit margin was slightly higher year over year. Meanwhile, media and advertising revenue grew 6% to $35 million. Growth in the quarter was more normalized but a sequential step down that we expected primarily due to the recovery pattern in the broader media and advertising sector. Experiences revenue grew 12% to 38% with experiences revenue growing approximately 20% in the midst of a challenging macro environment. Dining revenue slightly declined as we continued realigning our sales model in our B2B business, as discussed on our last call. Other revenue was flat year-over-year at $10 million.

Mike J. Olson: Hotel meta performance was driven by sustained pricing strength and growth in both free and paid channels, which was offset by lower click volumes, primarily in paid channels. As we continue to manage these channels for profitability by maintaining consistent rollout targets.

Mike J. Olson: From a revenue perspective growth in hotel meta in the U S and rest of World was flat to slightly up while EMEA declined in line with prior quarters.

Mike J. Olson: Importantly revenue from free channels remained stable.

Mike J. Olson: As a result hotel meta contribution profit margin was slightly higher year over year.

Mike J. Olson: Media and advertising revenue grew 6% to $35 million growth in the quarter was more normalized but a sequential step down that we expected primarily due to the recovery pattern and the broader media and advertising sector.

Michael Noonan: Growth in crews was 10% in the quarter, offset by sustained revenue pressure in our remaining category offerings due to our strategic deemphasis. Adjusted EBITDA in the TripAdvisor brand was $69 million, or 32% of revenue. Adjusted EBITDA margin improved by approximately 325 BPS year-over-year due to strong revenue performance in our free channels as well as leverage in headcount and other fixed costs. Turning now to Vital

Mike J. Olson: Experiences in dining revenue grew 12% to $38 million with experiences revenue growing approximately 20% in the midst of a challenging macro environment.

Mike J. Olson: Mining revenue slightly declined as we continued realigning our sales model and our <unk> business as discussed on our last call.

Mike J. Olson: Other revenue was flat year over year at $10 million.

Mike J. Olson: And cruise was 10% in the quarter offset by sustained revenue pressure and a remaining category offerings due to our strategic de emphasis.

Michael Noonan: Q4 revenue was $161 million, reflecting growth of 27% or 25% on a constant currency basis. Gross booking value, or GBV, grew 20% to approximately $720 million, driven primarily by volume growth. The GBV and booking growth performance in the quarter was impacted by the onset of the Middle East conflict and its ripple effects in other European destinations, where TravelAdvisor warnings were issued. We also experienced some marketing deficiencies in the quarter that impacted GVV and booking growth. In Q4, GBP growth from repeat travelers substantially outpaced GBP growth from new travelers. Compared to our new travelers, our repeat travelers book more items per trip, they buy more expensive products, and they have a higher propensity to repeat. All of which gives us growing confidence that our efforts increasing scale and growing travel lifetime value are working. We will also continue to focus on acquiring large, new traveler cohorts, given the attractive size of the market opportunity and our track record of converting new travelers to repeat travelers over time.

Mike J. Olson: Adjusted EBITDA in the brand provider segment was $69 million or 32% of revenue.

Adjusted EBITDA margin improved by approximately 325 bps year over year due to strong revenue performance and our free channels as well as leverage in head count and other fixed costs.

Mike J. Olson: Turning now to <unk>.

Mike J. Olson: Q4 revenue was $161 million, reflecting growth of 27% or 25% on a constant currency basis.

Mike J. Olson: Gross booking value or <unk> grew 20% to approximately $720 million driven primarily by volume growth.

Mike J. Olson: The <unk> and booking growth performance in the quarter was impacted by the onset of the middle East conflict and its ripple effects in other European destinations, where travel advisory warnings were issued.

Mike J. Olson: We also drove some marketing efficiencies in the quarter that impacted <unk> and booking growth.

Mike J. Olson: In Q4, GBP growth from repeat travelers substantially outpaced GDP growth from new travelers.

Mike J. Olson: Compared to our new travelers I'll repeat travelers book more items per trip.

Mike J. Olson: They buy more expensive products.

Mike J. Olson: And they have higher propensity to repeat with us.

Mike J. Olson: All of which gives us growing confidence that our efforts increasing scale and growing travel lifetime value are working.

Michael Noonan: We will do so with a disciplined approach, responding to the quality of traffic we observe and remain flexible as we move through the. Adjusted EBITDA at VITOR is $15 million, or 9% of revenue, a significant margin improvement year-over-year, largely due to the profitability flow through from the aforementioned GBV mix in the quarter. As we have discussed on prior calls, Viator's profitability is impacted by the size and mix of As future growth becomes increasingly driven by repeat bookers, we expect to see attractive and sustainable margin flow through driven by these large and growing repeat cohorts.

Mike J. Olson: We will also continue to focus on acquiring large new traveler cohorts, given the attractive size of the market opportunity and our track record of converting new travelers to repeat travelers overtime.

Mike J. Olson: We will do so with a disciplined approach.

Mike J. Olson: Responding to the quality of traffic, we observe and remain flexible as we move through the year.

Mike J. Olson: Adjusted EBITDA by towards $15 million.

Mike J. Olson: 9% of revenue a significant margin improvement year over year, largely due to the profitability flow through from the aforementioned GBP mix in the quarter.

Mike J. Olson: As we have discussed on prior calls <unk> profitability is impacted by the size and mix of new traveler acquisition.

Mike J. Olson: As future growth becomes increasingly driven by repeat bookers, we expect to see attractive and sustainable margin flow through driven by these large and growing repeat cohorts.

Michael Noonan: At the fork, Q4 revenue was $39 million, reflecting growth of 18% and 10% on a constant currency basis. Revenue growth is driven by a balanced mix of both volume and and Adjusted EBITDA was break-even in the quarter, an improvement of $15 million year-over-year, which was driven by continued focus on improving unit economics on both the supply and demand sides of the marketplace and prudent cost-cutting. We are very pleased with the work the teams have done over the year to position this segment for profitable growth in 2020.

Mike J. Olson: <unk> Q4 revenue was $39 million, reflecting growth of 18% and 10% on a constant currency basis.

Mike J. Olson: Revenue growth was driven by a balanced mix of both volume and pricing.

Mike J. Olson: Adjusted EBITDA was breakeven in the quarter, an improvement of $15 million year over year, which was driven by continued focus on improving unit economics on both the supply and demand side of the marketplace and prudent cost control.

Mike J. Olson: We're very pleased with the work the teams have done over the year to position this segment for profitable growth in 2024.

Michael Noonan: Now turning to consolidate expenses for the, Cost of revenue declined modestly due to increased direct costs related to certain media campaigns and cloud migration related expenses at the branch of TripAdvisor, as well as the increased mix of Viator-related costs as a percent of consolidated revenue. Sales and marketing costs as a percent of revenue were approximately 900 basis points lower, driven by more efficient marketing spend across each brand, most notably at Branch or Provisor and the Fork, as well as lower people costs across. Technology and content costs as a percent of revenue were flat as investments in data and engineering resources in BrandtripAdvisor and Vyntor remained in line with revenue growth. G&A expenses as a percent of revenue were approximately 400 basis points lower as a result of the cost savings actions we implemented at Brandt-TripAdvisor and The Fork, as well as the $8 million loss incurred in Q4 of 2024 related to a targeted payment fraud scheme which did not reoccur in 2023 and accounted for half of the year-over-year leverage.

Mike J. Olson: Now turning to consolidate expenses for the quarter.

Mike J. Olson: Cost of revenue deleverage modestly due to increased direct costs related to certain media campaigns and cloud migration related expenses at branch of advisor as well as the increased mix of vital related costs as a percent of consolidated revenues.

Mike J. Olson: Sales and marketing cost as a percent of revenue were approximately 900 basis points lower driven by more efficient marketing spend across each brand.

Mike J. Olson: Most notably at branch or provider in the <unk> as well as lower people costs across the brands.

Mike J. Olson: Technology and content costs as a percent of revenue were flat as investments in data and engineering resources and branch of adviser at <unk> remained in line with revenue growth.

Mike J. Olson: G&A expenses as a percent of revenue were approximately 400 basis points lower as a result of the cost savings actions, we implemented at branch supervisor and the fourth as well as the $8 million loss incurred in Q4 of 2024 related to a targeted payment fraud scheme, which did not reoccur in 2023 and accounted for half of the year over year.

Michael Noonan: During the quarter, we also incurred approximately $4 million in restructuring expenses related to the previously announced actions we implemented at both Brandt-TripAdvisor and the. Now on to our cash and liquidity. Operating cash flow was a deficit of $19 million, and free cash flow was a deficit of $35 million, driven by normal seasonal trends and deferred merchant payables at Viator. During the quarter, we repurchased approximately 1.3 million shares at an average cost of $18.85 per share, totaling approximately $25 million under our current share repurchase program. Turning now to our full year performance. Consolidated revenue grew 20% to $1.8 billion. As a reminder, year-over-year growth in the first quarter of the year benefited from an easier comparison.

Mike J. Olson: Leverage.

Mike J. Olson: During the quarter, we also incurred approximately $4 million in restructuring expenses related to the previously announced actions we implemented at both branch supervisor and the fourth.

Mike J. Olson: Now onto our cash and liquidity position.

Mike J. Olson: Operating cash flow was a deficit of $19 million and free cash flow was a deficit of $35 million driven by normal seasonal trends and deferred merchant payables at <unk>.

During the quarter, we repurchased we repurchased approximately one 3 million shares at an average cost of $8 85 per share totaling approximately $25 million under our current share repurchase program.

Mike J. Olson: Turning now to our full year performance.

Mike J. Olson: Consolidated revenue grew 20% to $1 8 billion.

Mike J. Olson: As a reminder year over year growth in the first quarter of the year benefited from an easier comparable.

Michael Noonan: On a segment basis, Brand TripAdvisor grew 7% to $1 billion, while Avatar grew 49% to $737 million, and The Fort grew 22% to $154 million. Consolidated adjusted EBITDA for the full year was $334 million, or 19% of revenue or 100 basis points lower, then 22 adjusted EBITDA margin. Sales and Marketing and G&A costs as a percent of revenue were flat, while cost of revenue and technology and content slightly increased as a percent of revenue. Turning to segment EBITDA for the year, Brand TripAdvisor delivered $348 million in adjusted EBITDA, or 34% of revenue. For the year, a combination of investment in data and engineering headcount, higher costs of revenue in media and advertising, and higher cloud migration costs as a percent of revenue drove the approximately 200 basis point decline year-over-year.

Mike J. Olson: On a segment basis brand Tripadvisor grew 7% to 1 billion, while <unk> grew 49% to $737 million in the fourth grew 22% to $154 million.

Mike J. Olson: Consolidated adjusted EBITDA for the full year was $334 million or 19% of revenue or 100 basis points lower.

Mike J. Olson: And then 'twenty two adjusted EBITDA margin.

Mike J. Olson: Sales and marketing and G&A cost as a percent of revenue were flat, while cost of revenue and technology and content slightly increase as a percent of revenue.

Mike J. Olson: Turning to segment EBITDA for the year branch of advisor delivered $348 million and adjusted EBITDA or 34% of revenue for the year, a combination of investment in data and engineering head count and higher cost of revenue in media and advertising and higher cloud migration costs as a percent of revenue drove approximately 200 basis point decline year over year.

Michael Noonan: Viatora Justice EBITDA was break-even for the full year, which was a 200-base-point improvement from last year, with increased leverage from people costs and direct marketing costs, which includes both traffic and brand. Finally, at the fork, we saw significant EBITDA improvement in 2023, moving to a loss of $14 million versus a loss of $39 million in 2022. The largest driver of this improvement was in sales and marketing, with lower spend on performance and brand marketing, as well as increased leverage from sales headquarters.

Mike J. Olson: <unk>.

Mike J. Olson: <unk> adjusted EBITDA was breakeven for the full year, which was a 200 basis point improvement from last year with increased leverage from people cost and direct marketing costs, which includes both traffic and brand.

Mike J. Olson: Finally at <unk>, we saw significant EBITDA improvement in 2023, moving to a loss of $14 million versus a loss of $39 million in 2022.

The largest driver of this improvement was in sales and marketing with lower spend in performance and brand marketing as well as increased leverage from sales head count.

Michael Noonan: This was especially impressive given the COVID subsidy benefit of $11 million received. Total operating cash flow for the year was $235 million, and free cash flow was $172 million. We repurchased a total of 6 million shares this year at an average price of $1,651,000,000, totaling $100 million. In light of the announcement earlier this week, for the time being, we've suspended our share purchase program.

Mike J. Olson: This was especially impressive given the COVID-19 subsidy benefit of $11 million received in 2022.

Mike J. Olson: Total operating cash flow for the year was $235 million and free cash flow was $172 million, we repurchased a total of 6 million shares. This year at an average price of $16 51 totaling $100 million.

Mike J. Olson: In light of the announcement earlier in the week for the time being we have suspended our share repurchase program.

Matthew Goldberg: We ended the quarter and year with approximately $1.1 billion in cash and equipment. As we discussed throughout the year, Fiscal 23 operating cash flow and free cash flow were impacted by a net cash outflow of $64 million related to our previously disclosed settlements with the IRS for income tax returns for the years 2009 through 2011. In 2024, we expect a net cash outflow of approximately $80 to $130 million related to the settlement for the years 2014 to 2016, resulting in an estimated increase in tax.

We ended the quarter and year with approximately $1 1 billion in cash and equivalents.

As we discussed throughout the year fiscal 'twenty, three operating cash flow and free cash flow were impacted by a net cash outflow of $64 million related to our previously disclosed settlements with the IRS for income tax returns for the years 2009 through 2011.

Mike J. Olson: In 2024, we expect a net cash outflow of approximately $80 million to $130 million related to the settlement for the years 2014 to 2016.

Mike J. Olson: <unk> an estimated increase.