Q1 2024 TripAdvisor Inc Earnings Call

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Operator: Good day, and thank you for standing by. Welcome to the TripAdvisor first quarter 2024 conference call. At this time, all participants are in a listen-only mode.

Good day, and thank you for standing by welcome.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. You will then hear an automated message advising your hand is ready.

Welcome to the Tripadvisor first quarter 'twenty 'twenty four conference call.

At this time all participants are in a listen only mode.

After the speaker's presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone you will then hear an automated message advising their hand as rate so.

To withdraw your question. Please press star one one again please.

Operator: To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker for today, Angela White, VP of IR. Angela, please go ahead.

Please be advised that today's conference is being recorded.

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

Angela White: Thank you, Felicia. Good morning, everyone, and welcome to TripAdvisor's first quarter 2024 financial results call. Joining me today are Matt Goldberg, President and CEO, and Mike Noonan, CFO. This morning, before the market opened, we filed and made available our earnings release.

Angela White: Thank you Felicia and good morning, everyone and welcome to Tripadvisor as first quarter 2024 financial results call. Joining me today are about Goldberg, President and CEO and Mike Noonan CFO.

Angela White: This morning before the market opened we filed and made available our earnings release and that release, you'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measure discussed on this call before we begin I'd like to remind you that this call may contain estimates and other forward looking statements that represent management's view as of today may eight 2024.

Angela White: In that release, you'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measure discussed on this call. Before we begin, I'd like to remind you that this call may contain estimates and other forward-looking statements that represent management's view as of today, May 8, 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 statistics. With that, I'll turn the call over to Matt.

Angela White: 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.

Matthew Goldberg: Thanks, Angela, and good morning to everyone joining us today. We were pleased with our first quarter results, which represented a solid start to the year across the board. Revenue was $395 million, reflecting year-over-year growth of 6%, and adjusted EBITDA was $47 million, or 12% of revenue. Our results are a testament to our aligned strategy and the discipline, financial, and operational execution of our team. Later in the call, Mike will provide more financial details, but first, I'll cover the progress we've made operationally. As a reminder, we operate unique but complementary strategies across our segments. At Brand TripAdvisor, we're focusing on engagement and delivering world-class guidance products to diversify and fuel our monetization.

Matt: Thanks, Angela and good morning to everyone. Joining us today, we were pleased with our first quarter results, which represented a solid start to the year across the board revenue was $395 million, reflecting year over year growth of 6% and adjusted EBITDA was $47 million or 12% of revenue.

Speaker Change: Our results are a testament to our alliance strategy and a disciplined financial and operational execution of our teams later in the call Mike will provide more financial details, but first I'll cover the progress we've made operationally as a reminder, we're operating unique but complementary strategies across our segments at branch Tripadvisor.

Speaker Change: We're focusing on engagement and delivering world class guidance products to diversify and fuel our monetization paths advisors, we're reinforcing our leadership position in experiences by investing in our brand enhanced products and repeat bookings to drive LTV and improving unit economics at the fourth.

Matthew Goldberg: At Viator, we're reinforcing our leadership position and experiences by investing in our brand, enhanced products, and repeat bookings to drive LTV and improve unit economics. At The Fork, we're driving revenue growth with margin improvement by delivering value to both diners and restaurants as the leader in the European dining industry. Starting with Brand TripAdvisor, we delivered revenue of $240 million, a decline of 2%, and adjusted EBITDA of $78 million, or 33% of revenue.

Speaker Change: We're driving revenue growth with margin improvement by delivering value to both diners and restaurants as the leader in the European Diamond market.

Speaker Change: Starting with brand Tripadvisor, we delivered revenue of $240 million, a decline of 2% and adjusted EBITDA of $78 million or 33% of revenue our results reflect the mix of growth and profit profiles within our segment portfolio as well as the initiatives, we're prioritizing to return to sustainable growth.

Matthew Goldberg: Our results reflect the mix of growth and profit profiles within our segment portfolio, as well as the initiatives we're prioritizing to return to sustainable growth. The foundation we built so far, and the work we're pursuing in 2024, is expected to deliver clear strategic outcomes, drive continued scale in our global audience, generate additional members who are more loyal and come back to us more frequently through direct channels like the app, and deliver sustainable growth across our diverse monetization. These are the core elements to drive engagement-led opportunities across all our academies, and key to reducing our overall dependence on fly-by traffic We're measuring these outcomes across key metrics, including our overall audience, active members, and app users, and average revenue per user.

Speaker Change: <unk>.

Speaker Change: The foundation, we built so far and the work we are pursuing in 2024 are expected to deliver clear strategic outcomes.

Speaker Change: Drive continued scale in our global audience generate additional members who are more loyal and come back to us more frequently through direct channels like the app and deliver sustainable growth across our diverse monetization paths. These.

Speaker Change: These are the core elements to drive engagement led opportunity opportunities across all our categories and key to reducing our overall dependence on fly by traffic and addressing the well understood pressure on our legacy media or legacy meta business.

Speaker Change: We're measuring these outcomes across key metrics, including our overall audience active members in App users and average revenue per user.

Matthew Goldberg: For all of these, our year-over-year trends improved between Q4 2023 and Q1 of 2024, and we've seen positive trends emerge in monthly sequential changes over the last six months. While we still have work to do to continue to transform this business, we're well positioned to accelerate our progress and exit 2024 with more momentum than we've had at any point in the past few years. As I mentioned on the last call, our three top priorities for TripAdvisor this year are, one, differentiating the mobile app.

Speaker Change: For all of these are year over year trends improved between Q4 2023 in Q1 of 2024, and we've seen positive trends emerge in monthly sequential changes over the last six months, while we still have work to do continuing to transform this business, we are well positioned to accelerate our progress.

Speaker Change: And exit 2024 with more momentum than we've had at any point in the past few years.

Speaker Change: As I mentioned on the last call our three top priorities for brand Tripadvisor. This year are one differentiating the mobile app.

Matthew Goldberg: Two, shifting our marketing to reinforce our engagement-led strategy. And three, leveraging the investments we've made in data and AI to deliver a more personalized experience for our users. Let me share a few of our accomplishments from Q1 across these three priorities and the proof points we continue to see that underscore how we can create more engagement and convert it into increased monetization. First, we scaled our Trips itinerary tool from web to app, where we incorporated learnings from the web-only launch last year.

Speaker Change: Shifting our marketing to reinforce our engagement led strategy and three leveraging the investments we've made in data and AI to deliver a more personalized experience for our users let.

Speaker Change: Let me share a few of our accomplishments from Q1 across these three priorities and the proof points. We continue to see that underscore how we can create more engagement and converted into increased monetization.

Speaker Change: First we scaled our trips itinerary tool from web to App, where we incorporated learnings from the web only launched last year, we continue to test and roll out new features including the ability to book experiences through our trips tool and other commerce testing as part of trip planning.

Matthew Goldberg: We continue to test and roll out new features, including the ability to book experiences through our Trips tool and other commerce testing as part of TripPlan. One critical area we've been exploring is how to best layer in bookable experiences at every stage in the trip planning journey. For example, in our AI-powered trip planning flow, when we ask users to select overall interests for their trip, like hidden gems or historical landmarks, we now dynamically add destination-specific themes tied to the most relevant bookable experiences. So if you're using our AI feature to build an itinerary for Rome, you might see Vatican skip-the-line tours or pasta-making classes listed alongside the more general interests that apply across destinations.

Speaker Change: One critical area, we've been exploring is how to best layer and Bookable experiences at every stage in the trip planning journey for example, and our AI powered trip planning flow when we ask users to select overall interest for their trip like hidden gems or historical landmarks, we now dynamically add destination specific themes.

Speaker Change: Tied to the most relevant bookable experiences so if you're using our AI feature to build an itinerary for Rome, you might see that it can skip the line tours or pasta, making classes listed alongside the more general interest that apply across destinations.

Matthew Goldberg: We're seeing that users who select one of these commerce-focused interests generate 50% higher average revenue than users who don't, which provides a fantastic signal of our ability to generate incremental demand and monetize it as users move through the journey. Second, to reinforce our engagement strategy and lean into one of our core differentiators, we've been evaluating how free membership impacts a traveler's content contribution. In Q1, we began testing a new recognition program for members called Achievements, which is based on our research that tells us that users are motivated to contribute reviews, photos, trips, and other guidance specifically to help other travelers. Achievements recognizes travelers for their contributions to the community with badges that showcase the things they're passionate about, along with a new dashboard to track their progress.

Speaker Change: We're seeing that users who select one of these commerce focused interest generate 50% higher average revenue than users, who don't which provides a fantastic signal of our ability to generate incremental demand and monetize it as users move through the journey.

Speaker Change: Second to reinforce our engagement strategy and lean into one of our core Differentiators, we've been evaluating how free membership impacts of travelers content contributions in.

Speaker Change: In Q1, we began testing a new recognition program for members called achievements, which is based on our research that tells us that users are motivated to contribute reviews photos trips and other guidance specifically to help other travelers.

Speaker Change: Achievements recognized as travelers for their contributions to the community with badges that showcase the things. They are passionate about along with a new dashboard to track their progress although its early in testing. It has already delivered an increase of nearly three X in content contributions per user.

Matthew Goldberg: Although it's early in testing, it has already delivered an increase of nearly 3x in content contributions per user. Importantly, this follows the strong growth we delivered last year, including approximately 20% growth across UGC contributors, review submissions, and photos. We believe we can continue to build on this momentum as we further expand achievements and enhance our membership with additional incentives to reward engagement. Finally, on our last call, I talked about the introduction of Gen-AI driven hotel review summaries and the early but strong positive indicators we've observed.

Speaker Change: Importantly, this follows the strong growth, we delivered last year, including approximately 20% growth across UGC contribute contributors review submissions and photos. We believe we can continue to build on this momentum as we further expand achievements and enhance our membership with additional incentives to reward engagement.

Speaker Change: Finally on our last call I talked about the introduction of Gen. AI driven hotel review summaries and the early but strong positive indicators. We've observed we've continued to improve and expand this feature measuring performance by the year over year change in revenue and engagement for hotels that have this feature versus those that don't for hotel.

Matthew Goldberg: We've continued to improve and expand this feature, measuring performance by the year-over-year change in revenue and engagement for hotels that have this feature versus those that don't. For hotels with AI-driven summaries, the year-over-year change in click-based revenue is three percentage points better than those without AI-driven summaries. The underlying engagement is also healthier.

Speaker Change: <unk> with AI, driven summaries the year over year change in click based revenue is three percentage points better than those without the underlying engagement is also healthier review submissions are three percentage points better photo submissions of four percentage points better and saves our eight percentage points better we continue to expand the number of <unk>.

Matthew Goldberg: Review submissions are three percentage points better, photo submissions are four percentage points better, and saves are eight percentage points better. We continue to expand the number of hotels with this feature, prioritizing recency and quality over quantity. We're also excited about our plans to scale this feature to our experiences and restaurant categories over time. I want to thank our teams for their relentless effort to transform Brand TripAdvisor.

Speaker Change: Hotels with this feature prioritizing recency and quality over quantity. We're also excited about our plans to scale. This feature to our experiences and restaurant categories over time.

Speaker Change: I want to thank our teams for their relentless effort to transform brand Tripadvisor, we're aligned on our strategy and focused on execution, we have a robust roadmap for 2024, and we have confidence will continue to provide travelers with indispensable products increased customer lifetime value and create even more opportunities.

Matthew Goldberg: We're aligned on our strategy and focused on execution. We have a robust roadmap for 2024, and we have confidence we'll continue to provide travelers with indispensable products, increase customer lifetime value, and create even more opportunities for our partners.

Speaker Change: For our partners.

Speaker Change: Turning now to viator.

Matthew Goldberg: As we noted on the last call, this year we're focused on continuing to scale while balancing growth, profitability, and market share. Investments to date have driven scale in our customer base and value to our supplier base, reinforcing our leading position in experiences. Viator has the advantage of the demand from hundreds of millions of visitors to the TripAdvisor site each month, including more than 100 million TripAdvisor users actively shopping for experiences.

Speaker Change: As we noted on the last call. This year, we're focused on continuing to scale, while balancing growth profitability and market share.

Speaker Change: Investments to date have driven scale, and our customer base and value to our supplier base reinforcing our leading position in experiences.

Speaker Change: <unk> has the advantage of the demand from hundreds of millions of visitors to the Tripadvisor site, each month, including more than 100 million Tripadvisor users actively shopping for an experience.

Matthew Goldberg: We continue to test and learn how best to capitalize on this relationship given the cross-team talent, deep industry knowledge, and opportunities we have in our geographic and supply reach. In Q1, Viator revenue grew 23% year-over-year, while Gross Booking Value, or GBV, grew approximately 15%. In addition to the top-line results, we were very pleased with the year-over-year improvement in adjusted EBITDA margin, a function of our operating leverage in sales and marketing and our commitment to operational efficiency.

Speaker Change: We continue to test and learn how best to capitalize on this relationship given the cross team talent deep industry knowledge and the opportunities we have in our geographic and supply reach.

Speaker Change: In Q1, <unk> revenue grew 23% year over year, while gross booking value or <unk> grew approximately 15%.

Speaker Change: In addition to the topline results we were very pleased with the year over year improvement in adjusted EBITDA margin a function of our operating leverage in sales and marketing and our commitment to operational efficiency.

Matthew Goldberg: Mike will hit more on the details shortly, but this quarter was an example of the levers we manage in order to strike the right balance between growth and profitability, both near and long term. On the traveler side, we continue to work on building an experience that encourages repeat engagement and drives loyalty and lifetime value. This includes ongoing focus on every part of the journey.

Speaker Change: Nick will hit more on the detail shortly but this quarter was an example of the levers we manage in order to strike the right balance between growth and profitability, both near and long term.

Speaker Change: On the traveler side, we continue to work on building an experience that encourages repeat engagement and drives loyalty and lifetime value.

Speaker Change: This includes ongoing focus on every part of the journey on acquisition, we're very pleased with our growth in brand health with meaningful increases in aided and unaided awareness as well as consideration as.

Matthew Goldberg: On acquisition, we're very pleased with our growth in brand health, with meaningful increases in aided and unaided awareness, as well as consideration. As we grow our customer base, we're making it easier for them to book more things, more often. We're matching travelers to products, expanding our rewards program, and making significant improvements to checkout pages. These changes are designed to provide more confidence in booking for our users, and they're driving an incremental lift in conversion and in revenue per visitor.

Speaker Change: As we grow our customer base, we're making it easier for them to book more things more often we're matching travelers to products expanding our rewards program and making significant improvements to checkout pages.

Speaker Change: These changes are designed to provide more confidence in booking for our users and they're driving incremental lift in conversion and in revenue per visitor.

Matthew Goldberg: Further, as we grow our audience and improve the experience, we're increasingly serving our customers through our most efficient channel, the app. In Q1, we saw record-high app downloads, year-over-year growth and conversion, and a record high for app bookings, our most loyal and highest-repeat service. On the supply side, the value we're driving is clear as we continue to see low supplier churn and growth in supplier GBV retention in each subsequent year on our platform. Viator has generated nearly $4 billion in sales for its TOR operators over the last year, and we're proud to be helping our operator partners access global demand to grow their business.

Speaker Change: Further as we grow our audience and improve the experience we are increasingly serving our customers through our most efficient channel. The app in Q1, we saw record high app downloads year over year growth in conversion and a record high for App bookings are most loyal and highest repeat surface.

Speaker Change: On the supply side the value, we're driving as clear as we continue to see low supplier churn and growth in supplier <unk> retention in each subsequent year on our platform.

Speaker Change: <unk> has generated nearly $4 billion in sales for its tour operators over the last year and we're proud to be helping our operator partners access global demand to grow their businesses.

Matthew Goldberg: We also see the value we're driving for our tour operators reflected in our take rate, which reached an all-time high in March, driven by the incremental benefit coming from our Accelerate program enhancement. With the largest supply base and set of products in the market, both of which continue to grow, we will remain focused on enhancing the value we add for our partners and expanding high-quality supply options. Finally, at the fork.

Speaker Change: We also see the value we're driving for our tour operators reflected in our take rate, which reached an all time high in March driven by incremental benefit coming from our accelerate program enhancements.

Speaker Change: With the largest supply base and set of products in the market both of which continue to grow we will remain focused on enhancing the value we add for our partners and expanding high quality supply offerings.

Matthew Goldberg: In 2024, we're prioritizing our efforts to drive value to our diners and restaurant owners as we transition to annual profitable growth. As the clear leader in European dining reservations, our hybrid model, revenue based on seated diners as well as ERB revenue, positions us to capture even more opportunity. Our Q1 results underscore that our past investment in technology and products with complete solutions to restaurants is paying off. Revenue at the fork grew 17% driven by a combination of bookings and pricing, with meaningful margin improvement year over year. We also saw an opportunity during the quarter to balance the mix between brand and incentive marketing and performance marketing, given favorable returns in performance marketing channels.

Speaker Change: Finally at the Fork in 2024, we're prioritizing our efforts to drive value to our diners and restaurant owners as we transition to annual profitable growth as.

Speaker Change: As the clear leader in European dining reservations are hybrid model revenue based on seeded diners as well as ERP revenue positions us to capture even more opportunities.

Speaker Change: Our Q1 results underscore that our past investment in technology and product with complete solutions to restaurants is paying off.

Speaker Change: Revenue in the fourth grew 17% driven by a combination of bookings and pricing growth with meaningful margin improvement year over year. We also saw an opportunity during the quarter to balance the mix between brand and incentive marketing and performance marketing given favorable returns and performance marketing channels.

Matthew Goldberg: We were pleased with the growth we delivered and plan to continue to refine our marketing. On the B2B side, in Q1, growth in our net restaurant count was over 4%, excluding Australia where we've exited the market, driven by healthy growth across markets with promising growth in new restaurant signings. We believe that our updated sales approach and technology solutions are gaining more traction thanks to the changes in our go-to-market strategy, including a more segmented approach and proactive outreach triggered by restaurant profiles.

Speaker Change: We were pleased with the growth, we delivered and plan to continue to refine our marketing mix.

Speaker Change: On the <unk> side in Q1 growth in our net restaurant count was over 4%, excluding Australia, where we've exited the market driven by healthy growth across markets with promising growth in new restaurants signatures. We believe that our updated sales approach and technology solutions are gaining more traction thanks to the changes in our.

Speaker Change: Go to market strategy, including a more segmented approach and proactive outreach triggered by restaurant profile data.

Matthew Goldberg: The investments we've made in technology and products are enabling more opportunities, such as ERB-driven pricing solutions, promotions, and yield management, which we believe can drive higher restaurant RPIs. However, revenue we derive from ERB solutions is still a small portion of the total revenue of the fork.

Speaker Change: The investments we've made in technology and product are enabling more opportunities such as ERP, driven pricing solutions promotions and yield management, which we believe can drive higher restaurant ARPA.

Speaker Change: <unk> revenue, we derived from ERP solutions is still a small portion of the total revenue of the fourth however, given our leading position in the marketplace. We're confident that the right balance between the strategic sales approach Onboarding and management for these small businesses and their owners will help us capture more b to B share ahead.

Matthew Goldberg: However, given our leading position in the marketplace, we're confident that the right balance between a strategic sales approach, onboarding, and management for these small businesses and their owners will help us capture more B2B share in the future. Before I pass the call to Mike, I want to reiterate the conviction we have about the long-term opportunity in travel and the role we can play there. One thing we've learned over the past few years is that travel and experiences remain a high priority for consumers around the world.

Speaker Change: Before I pass the call to Mike I want to reiterate the conviction we have about the long term opportunity in travel and the role we can play there.

Michael Noonan: One thing we've learned over the past few years is that travel and experiences remain a high priority to consumers around the world.

Matthew Goldberg: To date, we haven't identified any notable changes in our behavioral data to suggest otherwise. Length of stay and share of hotels across star ratings have remained consistent despite ongoing inflationary pressures and geopolitical tensions. Our traveler surveys indicate that consumers still have a tremendous appetite for travel. Eighty percent of travelers expect to travel this summer, an increase from 76 percent last year, and international travel interest remains high. We head into the high travel season pleased with the work we've done to strengthen our positioning in this dynamic industry. With that, I'll turn the call over to Mike. Thanks, Matt. And good morning, everyone.

Michael Noonan: To date, we haven't identified notable changes in our behavioral data to suggest otherwise length of stay and share of hotels across star ratings have remained consistent despite ongoing inflationary pressures and geopolitical tensions are traveler surveys indicate that consumers still have a tremendous appetite for travel.

Michael Noonan: 80% of travelers expect to travel this summer and increase from 76% last summer and international travel interest remains high.

Michael Noonan: We head into the high travel season pleased with the work we've done to strengthen our positioning in this dynamic industry.

Michael Noonan: With that I'll turn the call over to Mike.

Michael Noonan: I will start with a recap of the quarter, and then we'll provide some thoughts on the near-term outlook and priorities for the remainder of the year. All growth rates are relative to comparable periods in 2023 unless noted otherwise.

Michael Noonan: Thanks, Matt and good morning, everyone I will start with a recap of the quarter and then will provide some thoughts on near term outlook and priorities for the remainder of the year.

Michael Noonan: All growth rates are relative to the comparable periods in 2023, unless unless noted otherwise.

Michael Noonan: We started the year with a solid quarter, with revenue of $395 million, reflecting growth of 6%. Adjusted EBITDA was $47 million, or 12% of revenue, and 300 basis points higher than last year. While we saw a slow start to the year in January, trends improved as we progressed through February and March. Now, turning to segment performance for the first quarter. BranchTripAdvisor delivered revenue of $240 million, which is a decline of 2%. Branded hotel revenue was $159 million, a decline of 5%, driven by similar declines in both hotel meta and our B2B revenue.

Michael Noonan: We started the year with a solid quarter with revenue of $395 million, reflecting growth of 6% adjusted.

Michael Noonan: Adjusted EBITDA was $47 million or 12% of revenue and 300 basis points higher than last year.

Michael Noonan: While we saw a slow start to the year in January trends improved as we progressed through February and March.

Michael Noonan: Turning to segment performance for the first quarter.

Michael Noonan: <unk> provides a delivered revenue of $240 million, which is a decline of 2%.

Michael Noonan: Branded hotel revenue was $159 million a decline of 5% driven by similar declines in both hotel <unk> revenue.

Michael Noonan: Hotel Meadow's performance was driven by sustained pricing strength across most of our geos in both free and paid channels, which was more than offset by lower clicks. Our ROAS was slightly up year over year, which led to a marginally higher hotel META contribution margin compared to last year. From a revenue perspective, Hotel Meta in the U.S. declined slightly, the rest of the world declined modestly, with APAC up slightly, and EMEA declining in line with prior.

Michael Noonan: Hotel meta performance was driven by sustained pricing strength across most of our geos in both free and paid channels, which was more than offset by lower click volumes.

Michael Noonan: <unk> was slightly up year over year, which led to a marginally higher hotel meta contribution margin compared to last year.

Michael Noonan: From a revenue perspective hotel meta in the U S declined slightly red.

Michael Noonan: A world declined modestly with APAC up slightly in EMEA declined in line with prior quarters.

Michael Noonan: In B2B, revenue growth was impacted by decisions to deemphasize less incremental advertising products and flat performance in our subscription product as we began the transition to a self-service model that will serve our customers more effectively and efficiently going forward. Media and advertising revenue grew 10% to $33 million.

Michael Noonan: <unk> revenue growth was impacted by decisions to deemphasize less incremental advertising products as well as flat performance in our subscription product as we began the transition to a self service model that will serve our customers more effectively and efficiently going forward.

Michael Noonan: Media and advertising revenue grew 10% to $33 million.

Michael Noonan: Better than expected growth was a result of higher contribution from our off platform or creative media, and by better than expected programmatic. We also saw some timing benefits from some campaigns realized this quarter that will negatively impact growth. Experiences in dining revenue grew 9% to $36 million. Experiences grew 17% while dining revenue declined year-over-year in connection with transitioning B2B from a sales-led to a self-service approach. Finally, our other revenue was $12 million, which was down 8% year-over-year.

Michael Noonan: Better than expected growth was a result of higher contribution from our off platform or creative media spend and by better than expected programmatic spend.

Michael Noonan: We also saw some timing benefit from some campaigns realized this quarter that will negatively impact growth in Q2.

Michael Noonan: Experiences in dining revenue grew 9% to $36 million experiences grew 17%, while dining revenue declined year over year in connection with transitioning <unk> from a sales led to a self service approach.

Michael Noonan: Other revenue was $12 million, which was down 8% year over year we.

Michael Noonan: We continue to see growth in our cruise offering, which grew 6% this quarter, though declines in our de-emphasized offerings more often than not, adjusted EBITDA in the branch advisor segment with $78 million or 33% of revenue. 300 Base Point Expansion versus Q1 of last year was primarily due to increased contribution profit and experience and Lower People Cost in Sales and Marketing, and G&A, which more than offset year-over-year increases in tech and content headcount costs to support our strategy as well as higher cloud efficiency.

Michael Noonan: We continue to see growth in our cruise offerings, which grew 6% this quarter.

Michael Noonan: Both declines in our deemphasize offerings more than offset this growth.

Michael Noonan: Adjusted EBITDA in the brand provides our segment with $78 million or 33% of revenue.

Michael Noonan: 300 basis point expansion versus Q1 of last year was primarily due to increased contribution profit and experiences and lower people costs and sales and marketing and G&A.

Michael Noonan: Which more than offset year over year increases in tech and content head count costs to support our strategy as well as higher cloud and licensing cost.

Michael Noonan: Now, turning to Viator, where we delivered better than expected revenue growth of 23% or $141 million, healthy growth across all points. The timing of the Easter holiday, as well as leap year, contributed approximately 4 million or 3 points of growth in Q1.

Michael Noonan: Now turning to <unk>, where we delivered better than expected revenue revenue growth of 23% or $141 million with healthy growth across all points of sale.

Michael Noonan: The timing of Easter holiday as well as leap year contributed approximately $4 million or three points of growth in Q1.

Michael Noonan: The majority of this benefit was related to Easter, which resulted in a pull-forward of revenue from the second quarter, as compared to last year. Gross booking value, or GBV, grew 15% to approximately 1 billion, driven primarily by volume. The difference between revenue and GBV growth was partly due to the holiday timing, which impacted revenue positively, but GBV negatively. We continue to prudently balance growth with investment marketing spend. Performance Marketing Spend as a Percent of GBV was flat year-over-year as we leaned into opportunities to drive growth, continue to acquire new customers at scale while consistently growing our repeat customers faster than our new customers. We also see higher-than-average growth in bookings that come to us directly, including through our app, customers who have booked with us more than three times who are our most loyal and profitable.

Michael Noonan: The majority of this benefit was related to Easter, which resulted in a pull forward of revenue from the second quarter as compared to last year.

Michael Noonan: Gross booking value or <unk> grew 15% to approximately 1 billion driven primarily by volume growth.

Michael Noonan: The difference between revenue and GBP growth was partly due to the holiday timing, which impacted revenue positively, but GBP negatively in the quarter.

Michael Noonan: We continue to prudently balance growth with investment marketing spend.

Michael Noonan: Performance marketing spend as a percent of GDP was flat year over year, as we leaned into opportunities to drive growth in the quarter.

Michael Noonan: We continue to acquire new customers at scale, while consistently growing our repeat customers faster than our new ones.

Michael Noonan: We also see higher than average growth in bookings that come to us directly, including our App and customers, who book with us more than three times, who are our most loyal and profitable users.

Michael Noonan: These trends reinforce our confidence in our customer acquisition strategy and our ability to drive long-term profitable growth as we build categories. Adjusted EBITDA loss at Viator was $27 million, or negative 19% of revenue, an improvement versus last year's margin of negative 26%.

Michael Noonan: These trends reinforce our confidence in our customer acquisition strategy and our ability to drive long term profitable growth as we build category leadership.

Michael Noonan: Adjusted EBITDA loss at <unk> was $27 million or negative 19% of revenue an improvement versus last year's margin of negative 26%.

Michael Noonan: While margin benefited by approximately 200 basis points from the timing of the holiday revenue in Q1, excluding this impact, we saw solid leverage in variable costs, including performance marketing costs, and fixed costs, including people. At the fork, revenue grew 17% as reported and 16% in constant current. Growth in booking volume of approximately 10% and pricing growth drove the solid. Adjusted e-bill loss at the fork of $4 million, or negative 10% of revenue, was a significant improvement from last year's loss of $9 million, or negative $26 million.

Michael Noonan: While margin benefited by approximately 200 basis points from the timing of the holiday revenue in Q1, excluding this impact we saw solid leverage in variable costs, including performance marketing costs and fixed costs, including people and brand costs.

Michael Noonan: At the <unk> revenue grew 17% as reported and 16% in constant currency terms.

Michael Noonan: $241 million.

Michael Noonan: Growth in booking volume of approximately 10% and pricing growth drove the solid performance.

Michael Noonan: Adjusted EBITDA loss of four a $4 million or negative 10% of revenue was a significant improvement from last year's loss of $9 million were negative 26% of revenue.

Michael Noonan: The largest driver of this improvement was lower people costs and direct costs, which more than offset higher costs of sales relating to a contract renegotiation that reduced costs in Q1, training to consolidate expenses for the. Cost of revenue increased by 100 basis points due to higher cloud and media production costs at BrandtripAdvisor, and the D-Leverage at the fork as just. Sales and marketing as a percent of revenue was lower by approximately 300 basis points due to lower direct marketing spend and lower people costs across all.

Michael Noonan: The largest driver of this improvement was lower people costs, and direct cost, which more than offset higher cost of sales related to a contract renegotiation that reduce costs in Q1 2023.

Michael Noonan: Turning to consolidate expenses for the quarter.

Michael Noonan: Cost of revenues cost of revenues increased by 100 basis points due to higher cloud and media production costs at <unk> and the deleverage at the Fork has just mentioned.

Michael Noonan: Sales and marketing as a percent of revenue was lower by approximately 300 basis points due to lower direct marketing spend and lower people costs across all segments.

Michael Noonan: Technology and content costs as a percent of revenue were approximately 100 basis points higher, primarily due to higher staff costs at branch, TripAdvisor, and Vita. G&A expenses as a percent of revenue increased by approximately 100 basis points year-over-year due to the impact of a $10 million accrual related to a potential settlement of a regulatory matter with a vacation rental. Not including this impact, G&A was down by approximately 100 basis points year-over-year due to lower people costs.

Michael Noonan: Technology and content cost as a percent of revenue were approximately 100 basis points higher primarily due to higher people costs at brand Tripadvisor and viator.

Michael Noonan: G&A expenses as a percent of revenue increased by approximately 100 basis points year over year due to the impact of a $10 million accrual related to a potential settlement of regulatory matter with our vacation rentals business.

Michael Noonan: Not including this impact G&A was down by approximately 100 basis points year over year due to lower people costs at Bradford adviser.

Michael Noonan: Now to cash in, operating cash flow was $139 million, and free cash flow was $122 million, driven by the timing of working capital and also normal seasonal trends and deferred merchant payables advisory. We ended the quarter with nearly $1.2 billion of cash in cash equivalents, an increase of $104 million from December 31, 2020. As discussed in our last call, in Q1, we recorded an income tax expense related to the 2014-2016 IRS Transfer Pricing Settlement totaling $46 million. We estimate the net cash outflow will be in the $110 million to $120 million, and we'll be substantially settled in. This concludes all open IRS Transfer Pricing audits under the Mutual Agreement Procedure, or MAP.

Michael Noonan: Now to cash and liquidity.

Michael Noonan: Operating cash flow was $139 million and free cash flow was $123 million driven by the timing of working capital and also normal seasonal trend and deferred merchant payables in biotech.

Michael Noonan: We ended the quarter with nearly $1 2 billion of cash and cash equivalents, an increase of $104 million from December 31 2023.

Michael Noonan: As discussed on our last call in Q1, we recorded income tax expense related to the 2014, 2016, IRS transfer pricing settlement, which totaled $46 million.

Michael Noonan: We estimate the net cash outflow will be in the $110 million $120 million range and will be substantially settled in Q2.

Michael Noonan: This concludes all open IRS transfer pricing audits under the mutual agreement procedure or <unk> AP.

Michael Noonan: Turning to thoughts on Q2. We started the quarter with some unevenness in April, as we faced weaker demand trends, some of which, we believe, were due to the Q1-Q2 timing of the Easter holiday. We also witnessed a wide-reaching update to the Travel SERP that extended for a more prolonged period of time than typical updates that we have seen in the past. This update drove noticeable impact to SEO rankings across categories. While we have progressed at mitigating these changes as we exited the month, we did see an impact in April and early May results. Incorporating these trends into our Q2 outlook, we expect consolidated revenue growth to be flat to up slightly year over year. At Branch TripAdvisor, we expect year-over-year declines of approximately single digits, high single digits.

Speaker Change: Turning to thoughts on Q2.

Michael Noonan: At Viator, we expect revenue growth to step down a couple points below the GBV growth we saw in Q1. The impact of Eastern revenue pull-forward into Q1 from Q2 is estimated to negatively impact Q2 revenue growth by approximately 100 to 200 basis points. At The Fork, we expect a step down in growth sequentially to low to mid-teens year-over-year growth due to Easter timing impacts in Q1. In Q2, we expect consolidated adjusted EBITDA margins to be close to 100 basis points down from last year's comparable, with declining margins at BrandTripAdvisor, offsetting improvement in margins at both Viator and The Fork.

Speaker Change: We started the quarter with some unevenness in April as we faced weaker demand trends some of which we believe were due to the Q1 Q2 timing of the Easter holiday.

Speaker Change: We also witnessed a wide reaching update to the travel serve that extended for a more prolonged period of time than typical updates that we've seen in the past.

Speaker Change: This update drove notable impact to Seo rankings across categories.

Speaker Change: While we have progressed at mitigating these changes as we exited the month, we did see an impact April and early may results.

Speaker Change: Incorporating these trends into our Q2 outlook, we expect consolidated revenue growth to be flat to up slightly year over year.

Speaker Change: At brand Tripadvisor, we expect year over year declines of approximately single digits high single digits.

Speaker Change: At <unk>, we expect revenue growth to step down a couple points below the GBP growth we saw in Q1.

Speaker Change: Impact of Easter revenue pull forward into Q1 from Q2 is estimated to negatively impact Q2 revenue growth by approximately 100 to 200 basis points.

Speaker Change: At the <unk>, we expect a step down in growth sequentially to low to mid teens year over year growth due to Easter timing impacts between Q1 and Q2.

Speaker Change: For Q2, we expect consolidated adjusted EBITDA margins to be close to 100 basis points down from last year's comparable period with declining margins at branch of advisor offsetting improving improvement in margins at both viator in the fork versus last year.

Michael Noonan: Turning to Expectations for the Year. Given expected Q2 trends, we're taking a more cautious view for the full year. We now expect consolidated revenue to grow in the low to mid-single digits and Adjusted EBITDA of flat to low signal. I'll take a moment to touch base on what this means for each sector. [inaudible] With a little over 12 months behind us since the launch of our strategy, we're seeing momentum in our operations, and we're driving positive trends in our key metrics, which Matt referenced.

Speaker Change: Turning to expectations for the year.

Speaker Change: Given expected Q2 trends were taking a more cautious view for the full year.

Speaker Change: We now expect consolidated revenue to grow in the low to mid single digits and adjusted EBITDA of flat to low single digit growth.

Speaker Change: I'll take a moment of touch touch base on what this means for each segment.

Speaker Change: Starting with brand Tripadvisor.

Speaker Change: With a little over 12 months behind us since the launch of our strategy, we're seeing momentum in our operational execution and we are driving positive trends in our key metrics, which Matt referenced earlier.

Michael Noonan: We maintain confidence in our transformation agenda, which we believe will meaningfully impact important drivers of our financial profile as we exit 2024 and translate and translate into improved financial performance in 2024. We expect, in the meantime, that 2024 will continue to be a period of transition, as we have previously indicated. As such, we expect revenue declines of mid-single digits.

Speaker Change: We maintain covenants in our transformation agenda that we believe will meaningfully impact important drivers of our financial profile as we exit 2024, and translate and translate into improved financial performance in 2025.

Speaker Change: We expect in the meantime that 'twenty 'twenty four will continue to be a period of transition as we have previously indicated.

Speaker Change: As such we expect revenue declines of mid single digits.

Michael Noonan: While we anticipate stable contribution margins, we expect adjusted EBITDA margins to step back from 2023 levels, given investment in people, marketing, and technology as we execute on our strategic transformation. At Vytor, we prioritized the balance between growth, profitability, and market share gain. We continue to expect a step-down in revenue growth for the year relative to where we exited 2023, which reflects Tough Growth Comparable 2023: Transition to Full Year Profitability and incorporates our Outlook for Q2 that we just provided. Finally, at the fork, we expect our profile to reflect our priorities for balanced growth and profit. We continue to expect a step down in revenue growth from last year but to achieve full year profitability.

Speaker Change: While we anticipate stable contribution margin, we expect adjusted EBITDA margins to step back from 2020 through levels given investment in people marketing and technology as we execute on our strategic transformation work.

Speaker Change: Adviser, we are prioritizing the balance between growth profitability and market share gains.

Speaker Change: We continue to expect a step down in revenue growth for the year relative to where we exit 'twenty three which reflects.

Speaker Change: A tough growth comparable in <unk> three.

Speaker Change: Our transition to full year profitability and incorporates our outlook for Q2 that we just provided.

Speaker Change: Finally at the Port we expect our profile to reflect our priority for balanced growth and profitability. We continue to expect a step down in revenue growth from last year, but to achieve full year profitability. This year.

Michael Noonan: We are excited about the year and the opportunities ahead of us. We are confident that we are making the right investments to drive sustainable, profitable growth across all of our brands. With that, I'll turn the call back over to Matt.

Speaker Change: We are excited about the year and the opportunities ahead of US we're confident that we're making the right investments to drive sustainable profitable growth across all of our brands.

Speaker Change: With that I'll turn the call back over to Matt for a few words.

Matthew Goldberg: Thanks, Mike. Before we wrap up, I'd like to provide a brief update on the work our board's special committee has been doing. You'll recall that in our last earnings call, we noted that TripAdvisor's Board of Directors had formed a special committee to evaluate proposals resulting from Liberty TripAdvisor Holdings' stated intention to engage in discussions with respect to a potential transaction or other alternative. The special committee has determined that at this time. There is no transaction with a third party that is in the best interests of the company and its stock.

Matt: Thanks, Mike before we wrap up I'd like to provide a brief update on the work our board Special Committee has been doing.

Matt: Youll recall that in our last earnings call. We noted that Tripadvisor is board of directors has formed a special committee to evaluate proposals, resulting from Liberty Tripadvisor Holdings stated intention to engage in discussions with respect to a potential transaction or other alternatives. The special Committee has determined that at this time there is no transaction with a third.

Matt: Party that is in the best interest of the company and its stockholders. The special Committee will continue to evaluate proposed alternatives as appropriate there can be no assurance that any transaction will result, and we appreciate your understanding that we will not take any questions on this topic today, we'll provide further updates unless we have something.

Matthew Goldberg: The Special Committee will continue to evaluate proposed alternatives as appropriate. However, there can be no assurance that any transaction will result, and we appreciate your understanding that we will not take any questions on this topic today or provide further updates unless we have something definitive to share. I want to emphasize that the management team and our board of directors are excited about the company's business and prospects and the meaningful value that we can create through continued execution of our plan, as underscored by our solid first quarter results and the initiatives we've discussed today. With that, I'd like to turn the call back to the operator to begin Q&A.

Matt: Definitive to share.

Matt: I want to emphasize that the management team and our board of directors are excited about the company's business and prospects and the meaningful value that we can create through continued execution of our plan as underscored by our solid first quarter results and the initiatives. We've discussed today with that I'd like to turn the call back.

Speaker Change: To the operator to begin Q&A.

Operator: Thank you. One moment while we compile the Q&A roster. The first question comes from the line of Naveed Khan of B. Riley Securities. Naveed, please go ahead.

Speaker Change: Thank you one moment, while we compile the Q&A roster.

Speaker Change: The first question comes from the line of Nevada Kang of B Riley Securities. Please go ahead.

Speaker Change: Yes.

Naved Khan: Yeah, good morning. And thanks. A couple of questions. Maybe the first one on Viator.

Nevada Kang: Yes, hi, good morning, and thanks.

Nevada Kang: Questions.

Nevada Kang: Maybe the.

Nevada Kang: First one on wireless or so we've.

Nevada Kang: We've seen so now in biotech bookings for several quarters, now and trying to trying to kind of figure it out.

Naved Khan: So we've seen a slowdown in Viator bookings for several quarters now, and we're trying to kind of figure out, you know, in your language about balancing growth and profitability, how much of the slowdown is really around [inaudible] How much of that is related to the implementation of the Digital Market Act in Europe, or maybe if that is unrelated, then have you seen any changes due to the DMA? Thank you Great. Hey, Neived, it's Mike. I'll take the first one.

Nevada Kang: And then your language on balancing growth and profitability.

Nevada Kang: How much of the slowdown is really around.

Nevada Kang: On that.

Nevada Kang: Versus maybe some other changes you might have met including marketing mix channel mix.

Nevada Kang: Or maybe distribution partner in China that might have.

Speaker Change: And the second question I have is.

Nevada Kang: Is this that on the commentary around the.

Nevada Kang: Impact from FCO changes.

Nevada Kang: How much of that is related from the implementation of the digital marketing market Act in Europe or maybe.

Nevada Kang: And then have you seen any changes.

EMA: The EMA. Thank you.

Speaker Change: Great, Hey, Nevada, Mike I'll take that one yes, so in <unk> I think a couple of things happening.

Michael Noonan: Yeah, so in Vitor, I think a couple of things are happening. One, on the growth rate. Listen, we're still pleased with the growth rate. We're still operating in a very large market that is coming online gradually and has very low awareness, right? And these are things we've been saying for some time. And so we're going to continue to try to drive awareness and drive these users to our services. On the growth rate itself, I'd say a couple things. We are seeing tough competition, right, as we move through the year, particularly in the first half. Those competitions do ease as we move into the second half of the year.

Michael Noonan: On the growth rate.

Michael Noonan: Listen we're still we're still pleased with the growth rate, we're still operating at a very large.

Michael Noonan: Market that is coming online gradually.

Michael Noonan: And has very low awareness right and these are the things we've been saying for some time and so we're going to continue to try to drive awareness and drive or drive these users to our to our services.

Michael Noonan: On the growth rate itself I would say a couple of things.

Michael Noonan: We are seeing tough.

Michael Noonan: Tough comp.

Michael Noonan: Comp right as we move through the year, particularly the first half those comps do ease as we move into the second half of the year.

Michael Noonan: I think secondly, from a channel perspective, listen. We continue to see very good growth in our core channels, SEM. Matt mentioned earlier that our app growth is very, very strong right now. We have seen, as we called out in the call, some weakness in SEO, and that's related to a lot of the changes that have been happening in the travel SERP. That takes time to work through, as you know, and that has been one of the impacts. When we look at everything, we still feel very good about where we are with Vitor.

Michael Noonan: I think secondly.

Michael Noonan: From a from a channel perspective listen we continue to see very good growth in our core.

Michael Noonan: Our core channels SCM.

Michael Noonan: <unk> mentioned earlier that our App growth is very very strong right now.

Michael Noonan: We have seen.

Michael Noonan: We called out in the call some weakness in SCO.

Michael Noonan: And thats related to a lot of the changes that have been happening in the travel search.

Michael Noonan: That takes time to work through as you know.

Michael Noonan: And that has been.

Michael Noonan: When the impact when we look at everything we still feel very good about where we are with <unk> when we look at.

Michael Noonan: When we look at the metrics on our dashboard around, as I said, growth in our main channels, our pay channels, we look at conversion rates, we look at our repeat rates, we look at where we are playing in the auction rankings, we look at our brand awareness. We all feel good about all those things. I think the growth rate is just more of a factor in some of those things.

Michael Noonan: The metrics on our dashboard around as I said growth in our main channels. Our pay channels. We look at conversion rates, we look at our repeat rates, we look at where we are playing.

Michael Noonan: In the in the auction rankings, we look at our brand awareness, we all feel good about all of those metrics. So I think the growth rate just more of a factor of some of those things and again as we always have an eye on moving moving and keeping the consistent profitability as well as really more of those factors.

Michael Noonan: Again, as we always have an eye on moving and keeping to consistent profitability as well, it's really more of those factors. Yeah, and I think, I just think the growth. You do see some, you know, external demand that's going to be playing out in travel. You know, Viator continues to make, I think, smart marketing investments, and we're very excited about the impact of the brand spend, and we're seeing really good, and particularly in Q1, results on that spend that, you know, give us a full funnel point of view on how to think about that marketing mix.

Speaker Change: Yeah, and I think I just think the growth.

Speaker Change: Do see some external demand that's going to be playing out in travel.

Speaker Change: <unk> continues to make I think smart marketing investments and we're very excited about the impact of the brand spend and we're seeing really good and particularly into Q1 results on that spend that give us full funnel point of view on how to think about that marketing mix and I think not only are we driving aided unaided awareness and consideration hitting our.

Michael Noonan: And I think, you know, not only are we driving aided-unaided awareness and consideration, hitting our goals for the year in very short order, with very efficient spend, and driving real impact over the last three months, but we believe we're outperforming others in the space on that spend and expect that that performance is going to accelerate as we enter the high season. But, you know, you're finding a place, we came in off of 49% growth last year, and so you're finding a place where you get the mix right and think about what is the right level of growth to balance those three things, growth, profitability, and market share. So we feel good about the choices that we are making there and on the various channels. Now, you asked about Google, and I would just say on Google there's a ton of stuff going on.

Michael Noonan: Goals for the year in very short order very efficient spend.

Michael Noonan: Driving real impact over the last three months, we believe we're outperforming others in this space on that spend and expect that that performance is going to accelerate.

Michael Noonan: As we enter the high season.

Michael Noonan: Yeah.

Michael Noonan: Youre finding a place we've coming off of 49% growth last year and so you are finding a place where we're getting the mix right and thinking about what is the right level of growth to to balance those three things growth profitability and market share. So we feel we feel good about the choices that we're making there and in the various channels now you asked about Google and I would just say on Google.

Michael Noonan: There's a ton of stuff going on.

Matthew Goldberg: You know, there's the SERP change, there is, of course, the implementation in Europe of the DMA, and, of course, there's a whole host of other things that happen in that product all the time. As it relates to the DMA in particular, we've been monitoring it from the start. You know, we're fascinated to see how the European Commission is investigating Google's compliance with the prohibition on self-referencing, and, of course, our teams are always adapting and adjusting in real time very quickly, and I think they do a very good job to mitigate impacts very quickly, but, you know, we can't directly correlate the DMA changes directly to the impact on us.

Michael Noonan: There's the <unk> change.

Michael Noonan: There is of course, the implementation in Europe around the DMA.

Michael Noonan: And of course, there's a whole host of other things that happened in that product all the time as it relates to the DMA in particular, we've been monitoring it from the start.

Michael Noonan: We're fascinated to see how the European Commission is investigating.

Michael Noonan: On.

Michael Noonan: Google's compliance with the prohibition on self referencing and of course, our teams are always adapting and adjusting in real time very quickly and I think they do a very good job to mitigate impacts very quickly, but we can't put the DMA changes and directly correlate the impact on us what we do is we try to.

Matthew Goldberg: What we do is we try to optimize our position with that important partner and continue to drive our strategy, which is actually about diversifying and driving our product to get more engagement so more people come directly, download our app, and engage with us and fuel our monetization. So we feel like we're on a very good path there. Thanks, Navit. Thank you. One moment.

Michael Noonan: To optimize our position with that important partner.

Michael Noonan: And continue to drive our strategy, which is actually about diversifying and driving our product to get more engagement. So more people come direct download, our app and engage with us and fuel our monetization. So we feel like we're on a very good path. Thanks Robert.

Speaker Change: Thank you one moment.

Operator: Excuse me, one moment for our next question. The next question comes from the line of Ron Josie of Citi. Ron, please go ahead.

Speaker Change: Excuse me one moment for our next question.

Speaker Change: Yeah.

Speaker Change: The next question comes from the line of Ron Josey of Citi. Brian. Please go ahead.

Ron Josie: Hi, this is Robert. Thanks for taking the question. Two questions on Viator, I guess. First, how should we be thinking about the puts and takes on Viator's take rate in the near term, and then, as the platform continues to scale and become a larger part of the company, how do you see take rates evolving over the medium term? Yeah, hey, Robert, Mike. I'll take it back and chime in.

Robert: Hi, This is Robert.

Robert: Thanks for taking the questions.

Robert: Two questions on <unk> first how.

Robert: How should we be thinking about.

Robert: And takes on Vipers take rate in the near term and then.

Robert: As the platform continues to scale and become a larger part of the company how do you see take rates evolving over the medium term.

Speaker Change: Yeah, Hey, Robert Mike I'll take it back from China.

Michael Noonan: So listen, I think take rates are indicative of a lot of things. They're indicative, I think, of the value that we provide to our suppliers and our ability as a platform to bring far-reaching users to our suppliers and operators that couldn't reach them otherwise. And we do that with marketing. We do that with sophisticated tools.

Speaker Change: So listen I think take rates are.

Speaker Change: Indicative of a lot of things Theyre indicative I think of the value that we provide to our suppliers.

Speaker Change: And our ability as a platform to bring far reaching users too.

Speaker Change: To our suppliers and operators that couldnt reach them, otherwise and we do that with marketing, we do that with sophisticated tools, we do that with investment to make that process easy and discoverable and so I think the value is of tremendous value, we give to a lot of small businesses and operators and I think first and foremost that's reflected in that take rate.

Michael Noonan: We do that with investment to make that process easy and discoverable. And so I think the value is a tremendous value we give to a lot of small businesses and operators. And I think, first and foremost, that's reflected in that take rate. We also, and I think some of the take rate movements upward, I would say, over the past year have been around a lot of programs, additional programs we have been doing that give even more power to the operator to say, hey, I have more choice and ability to choose around what I want to pay for different advertising options on our platforms.

Speaker Change: We also and I think I think the some of the take rate.

Speaker Change: Movement upward I would say over the past year have been around a lot of programs additional programs. We have been doing to give even more power to the operator to say, hey, I have more choice and ability to choose around what I want to pay for different advertising options on our platforms and we've seen tremendous uptake.

Michael Noonan: And we've seen tremendous uptake in those products where our suppliers voluntarily pay us more for different advertising opportunities. And so I think it really just gets back to that value equation that, at the most fundamental level, what we're bringing, the demand we're bringing to the operators, and then their ability to manage their demand on our platform, we feel really good about. And we think that's sustainable, right?

Speaker Change: And that in that in those products.

Speaker Change: Where our supplier voluntarily pay.

Speaker Change: Pay us higher for different advertising opportunities.

Speaker Change: And so I think it really just gets back to that that value equation that at the most fundamental level, what we're bringing the demand we're bringing to the operators and then their ability to demand to manage their their demand on our platform. We feel really good about and we think that's sustainable we think thats sustainable and we're continuing every day to work on.

Michael Noonan: We think that's sustainable, and we continue to work every day on how we provide value to operators, and how we make their business better. We monitor that very closely and are happy with the progress thus far. Yeah, and the only thing I would add is that take rates are not an objective function in and of themselves. We are not targeting a particular take rate. It is an output, and it is an indicator of the value that is being delivered.

Speaker Change: And how we provide value to the operators, how we make their business better.

Speaker Change: We monitor that very closely and are happy with the progress so far yeah, and the only thing I would add is you know take rates are not an objective function in and of themselves. We are not targeting a particular take rate. It is an output and it is an indicator of the value that is being delivered and so is accelerate.

Matthew Goldberg: And so as Accelerate, the program, has been innovated over time, we're able to give more demand, more control, better insights, competitive intelligence, detailed performance metrics, and the ability to dial up and down participation at any time, which is valuable and is what's really driving those take rates. So that's how we think about it. Yeah, that's helpful.

Speaker Change: The program has been.

Speaker Change: Innovated over time, we're able to give more demand more control better insights competitive intelligence detailed performance metrics and the ability to dial up and down participation at any time, which is valuable and is whats really driving those take rates. So that's how we think about it.

Ron Josie: And then, second one, just on supply trends, can you maybe elaborate on recent supply trends across biots? Are there any regions in particular that you call out where you're seeing sharper than expected growth? Any color there would be really helpful.

Speaker Change: Got it that's helpful. And then second one just on supply chain can you maybe elaborate on some supply.

Speaker Change: Supply trends across bioterror or are there any regions in particular that you call hours in charter an unexpected growth any any color there would be really helpful.

Ron Josie: Sorry, Robert, we didn't hear the question. What trends are you asking? We just couldn't hear it clearly.

Speaker Change: I'm sorry, Robert.

Robert: Didn't hear the question what trends you are asking.

Speaker Change: We couldn't hear you clearly.

Ron Josie: Yep, supply trends, just any color that you're seeing by geography or more broadly would be really helpful there. Look, you know, we don't talk in too terribly much detail at a granular level about our supply trends, but obviously, we have the largest supply available anywhere for experiences in the digital world. And it's, you know, it's a factor of multiples to the next closest.

Robert: Supply chain, so just any color that you're seeing by geography or more broadly would be really helpful. There.

Matthew Goldberg: We don't think that quantity is the final answer. We actually think quality is incredibly important. And so we are very focused on making sure that we have the highest quality supply. And actually, you know, when we look at our ratings and see the way that customers are rating them and coming back, which is typically between four and five stars on average, we think that we actually are the highest quality supply available anywhere on the web.

Robert: Look.

Speaker Change: We don't talk in too terribly much detail at a granular level about our supply trends, but obviously, we have the largest supply available anywhere for experiences and digital world and it's.

Robert: Factor of multiples to the next closest we don't think that quantity is the final answer we actually think quality is incredibly important and so we are very focused on making sure that we have the highest quality supply and actually when we look at our ratings and we see the way that.

Matthew Goldberg: And so you combine those two, and then you think about how we're able to provide, you know, coverage globally. And then, of course, by geography, market by market, it really gives us an advantage in our ability to deliver coverage. And so they continue to grow; it continues to be strategic for us, and we are very focused on supply and demand matching. And so we're really excited, and I just want to compliment the teams for the work they do every day to make sure that we are leading the pack. Great. That's very helpful. Thanks a lot. Felicia.

Robert: <unk>, our rating them and coming back which is typically between four and five stars on average we think that we actually are the highest quality supply available anywhere.

Robert: On the web and so you combine those two and then you think about how we're able to provide.

Robert: Coverage globally, and then of course by geography market by market. It really gives us an advantage in our ability to deliver coverage and so.

Robert: They continue to grow it continues to be strategic for us and we are very focused on supply demand matching and so we're really excited and I just want to compliment the teams for the work they do everyday to make sure that we are leading the pack.

Speaker Change: Okay. That's helpful. Thanks, a lot.

Speaker Change: Felicia.

Speaker Change: Alicia.

Operator: One moment for your next question. The next question comes from the line of Niall Mitchelson from Bernstein. Niall, please go ahead.

Speaker Change: One moment, Sir your next question.

Speaker Change: The next question.

Speaker Change: <unk> of Myer Mitchelson from Bern.

Niall Mitchelson: Please go ahead.

Niall Mitchelson: Hi there, thanks. Could you sort of delve into how you plan to tackle the Liberty TripAdvisor structure? You've got a reasonable cash position on your balance sheet. Could you do a buyout of the TripAdvisor stake or maybe a special dividend? Is there something you can do there to sort of help collapse that structure?

Speaker Change: Thanks.

Niall Mitchelson: Could you.

Niall Mitchelson: Kelvin to how you plan to tackle the Liberty Tripadvisor structure.

Kelvin: You've got a reasonable cash position on your balance sheet could you do a buyout of that stake okay, maybe a special dividend.

Kelvin: So help collapsed that structure.

Michael Noonan: Yeah, hey, Nials, it's Mike. Yeah, I think we're gonna avoid kind of diving into those types of questions. Obviously, we heard the announcement we just made about the special committee process. You know, they're still evaluating their alternatives, but that's really all we can really be at liberty to say at this point. And certainly don't want to speculate on what it could or couldn't be.

Michael Noonan: Yeah. This is Mike.

Michael Noonan: I think we're going to avoid kind of diving into those types of questions.

Michael Noonan: Obviously, we heard the announcement, we just make on the special Committee process.

Michael Noonan:

Michael Noonan: They are still evaluating.

Michael Noonan: There are alternatives, but that's really all we can really have liberty to say at this point.

Michael Noonan: And certainly don't want speculate on what could or could it be.

Matthew Goldberg: Yeah, I mean, the special committee continues to do its work. I think what we are doing is making sure that we have no distractions and that we continue to drive our business forward. And the consistency with which our teams have continued to deliver has really just given me great confidence that, you know, we will deliver on our plans. And, you know, when I think about what we said we were going to do, as we built out a foundation, as we developed our strategies, this is a year where we continue to look at what's working and how we accelerate it and really round the corner, going into the next year, in a multi-year strategy situation for TripAdvisor.

Speaker Change: Yes, I mean, the special Committee continues to do its work I think what we are doing is making sure that we have no distraction and that we continue to drive our business forward and the consistency with which our teams have continued to deliver has really just given me great confidence that.

Michael Noonan: We will deliver on our plans and when I think about what we said we were going to do as we built out a foundation as we developed our strategies. This is a year, where we continue to look at what's working and how we accelerated and really round the corner going into the next year and a multi year strategy.

Matthew Goldberg: And then, of course, continuing to drive growth and leadership in our growth businesses at Viator and The Fork. So, for us, it's about staying focused, consistent, and continuing to build confidence in where these businesses are going.

Michael Noonan: Situation for Tripadvisor, and then of course, continuing to drive growth and leadership in our in our growth businesses are biased towards the fourth so for us it's about staying focused consistent.

Michael Noonan: And continuing to build confidence in where these businesses are going.

Speaker Change: Understood. Thank you very much.

Operator: One moment for our next question. The next question comes from the line of Doug Amos of J.P. Morgan. Doug, please go ahead.

Speaker Change: One moment for our next question.

Speaker Change: Yes.

Speaker Change: The next question comes from the line of Doug Anmuth of Jpmorgan. Please go ahead.

Unknown Executive: Thanks, this is Dae for Doug. Thanks for taking the questions, too. First one, appreciate the color you guys gave on Viator revenue and understand the Eastern dynamic there. But could you talk a little bit more about how Viator TVP growth has been trending and if that should be accelerating into 2Q and pushing back? Yeah, hey, Dave, Mike, you know, we don't guide to GBV.

Speaker Change: Thanks.

Doug Anmuth: Thanks for taking our questions.

Doug Anmuth: First one.

Doug Anmuth: I appreciate the color you guys gave on line for revenue and understand the eastern dynamic there Bob.

Doug Anmuth: Talk a little bit more firepower TBB growth.

Doug Anmuth: Okay.

Doug Anmuth: <unk>.

Doug Anmuth: Two questions.

Michael Noonan: But listen, you know, GBV is going to be, you know, you know, obviously a more forward-thinking, forward-looking metric. We do think it's going to be trending roughly in line with how we think about revenue growth for the year, right? Obviously, with some tiny differences quarter to quarter, as you're well aware of.

Speaker Change: Yeah, Hey, Dave Mike.

Speaker Change: We don't guide to.

Speaker Change: <unk> two <unk>.

Dave: Well listen.

Dave: <unk> is going to be.

Speaker Change: Obviously, the more forward thinking a forward looking metric.

Speaker Change: We do think it's going to be trending roughly in line with how we think about revenue growth for the year right.

Michael Noonan: So I don't I don't think that there's going to be, over a longer period of time, you know, call it the full year, a big discrepancy between the GBV growth and, and the revenue growth, other than normal things around, you know, council rates and things like that. So that's, I think that's just the way we're thinking about it. And you just have to remember that we're playing in such an exciting, total addressable market with real durable, secular trends.

Speaker Change: Obviously with some timing differences quarter to quarter as youre well aware of so.

Speaker Change: I don't think that there was going to be.

Speaker Change: Over a longer period of time call it the <unk>.

Speaker Change: Full year, a big discrepancy between the GBP growth and and the and the revenue growth other than normal things around cancel rates and things like that so that's I think that's just the way we're thinking about it and you just have to remember that we're playing and such.

Michael Noonan: And, you know, just the shift from offline to online and the opportunity for OTAs to step in and structure and unstructured fragmented market, that opportunity continues. It's ahead of us.

Speaker Change: Exciting a total addressable market with real durable secular trends.

Speaker Change: And there are multiple levers for growth than just the shift from offline to online and the opportunity for otas to step in and structure and unstructured fragmented market that opportunity continues. Its ahead of US there are geographic expansion opportunities there are category opportunities.

Michael Noonan: There are geographic expansion opportunities, there are category opportunities, and we just really like our positioning and the sort of, you know, what we're seeing from consumers as we continue to look at these cohorts. So that continues to be very exciting.

Speaker Change: And we just really like our positioning in the and the sort of.

Speaker Change: What we're seeing from consumers as we continue to look at these cohort so that continues to be very exciting for us.

Unknown Executive: And as a follow-up, I'm looking at branch for a supervisor. Could you remind us what's weighing on the click spawn unit in the medium term? I guess, how should we think about, I guess, how should the work you're doing to transform this out of the business show up in your branch or provider results? Yeah, so I'll take the first part around, you know, what's weighing on click volume, and then we can talk about the strategy. So I think we've been pretty consistent around, you know, click volume, and this is different than, obviously, traffic, but the click volumes at Brand Trip Advisor. You've got a couple things, right?

Speaker Change: Got it I have a follow up looking at plans for supplies or could you remind us whats weighing on clicks on the missile thumb.

Speaker Change: The more medium term, how should we think of all right.

Speaker Change: Hospital work Youre doing to transform the thought of the business show up in your products or provides our results.

Speaker Change: Yeah, So I'll just I'll take the first part around.

Speaker Change: What's weighing on and click volume and then we can talk about the strategy piece. So I think we've been pretty consistent around.

Michael Noonan: One, as we think about all the SEO changes that have been made through the years, uh, that puts just kind of secular pressure on those for the clicks in the free channel. When you think about the paid channels, over time, you've had one, more and more paid products, and two, more and more kind of competitive intensity in those, which again puts pressure on that. I'd say a third big point, and we've said this consistently too, which is, you know, a lot of the pressure we put on clicks is done by ourselves, meaning we introduce products or features that may put pressure on actual clicks, but what it does is it results in a higher-quality clicker that comes through.

Speaker Change: Click volume.

Speaker Change: And this is different than obviously traffic, but the click volumes.

Speaker Change: <unk> advisor.

Speaker Change: Got a couple of things one as we think about all the Seo changes have been made through the years.

Speaker Change: That puts just kind of secular pressure on those on the clicks and the free channel. When you think about the paid channels over time you've had.

Speaker Change: One more and more paid products and to more and more kind of competitive intensity in those which again puts puts pressure on that I'd say, a third big point and we've said this consistently two which as you know a lot of the.

Speaker Change: Some of the pressure we put on the clicks is done by ourselves, meaning we introduce products or features that may put pressure on actual clicks, but what it what it does is it results in a higher qualified quicker that comes through that.

Michael Noonan: That higher-qualified clicker, you know, should push through higher pricing. And we have seen consistently, and we've been talking about this for some time, while we've had pressure on volumes and clicks, we've had very nice price increases year over year, and we continue to see that even in Q1. So again, some of that is very much strategically born by us. That's the truth.

Speaker Change: Equality quicker.

Speaker Change: Should push through higher pricing and we have seen consistently and we've been talking about this for some time, while we've had a pressure on volumes clicks. We've had very nice price increases year over year, and we continue to see that even in Q1.

Speaker Change: So again some of that is very much strategically born borne by us.

Speaker Change: That that's the facts I don't Matt alternative Utah.

Matthew Goldberg: I don't know, Matt, I'll turn it over to you to talk about some of those strategies. Yeah, and I think you've put your finger on exactly what excites us most about the transformation work that we're doing, because we've all known for a long time that meta is not going to be the growth driver of our business. That's been clear for nearly a decade now, as we brought that business back out of the pandemic, and we realized that it is highly relevant, highly qualified traffic for our partners, and they will continue to lean into it.

Matt: And I think you've put your finger on exactly what excites us most about the transformation work that we're doing because we've all known for a long time that meta.

Speaker Change: Is not going to be the growth driver of our business that's been clear for nearly a decade now.

Speaker Change: As we brought that business back coming out of the pandemic and we realize that it is highly relevant highly qualified traffic for our partners and they will continue to lean into it we've identified a strategy, where we reinforce the relevance of the meta business drive the value through product changes by leveraging data thinking.

Matthew Goldberg: We've identified a strategy where we reinforce the relevance of the meta business, drive value through product changes by leveraging data, thinking geography by geography about how we can be the best partner to our partners in meta, while focusing on a strategy where you can see the results in our product and the changes that are happening around how we are looking at engaging travelers. We are now focused on the highest-value users coming to our site, and that's people who come and are members who have five times, rather, I should say ten times, the value of non-members.

Speaker Change: Geography by geography, how we can be the best partner to our partners in meta.

Speaker Change: Now focusing on a strategy that you can see the results in our product and the changes that are happening around how we are looking at engaging travelers. We are now focused on.

Speaker Change: The highest value.

Speaker Change: Users coming to our site and Thats people, who come and our members who have five times, rather I should say 10 times the value of non members.

Matthew Goldberg: We're focused on those users who are going to be downloading and using our app and really thinking about how we can diversify and fuel that very high value, in a lifetime value perspective, for those users, where they are engaging, and they're driving monetization through media, where we have not even started the meaningful work to diversify our media business yet. That business was growing at double digits last quarter and last year, and so we can do that, as well as become much better at matching supply and demand.

Speaker Change: Focused on those users, we're going to be downloading and using our app and really thinking about how we diversify and fuel through that very high value.

Speaker Change: A lifetime value perspective on those users where they are engaging their driving monetization through media, where we have not even started the meaningful work to diversify our media business yet that business has been growing in double digits last quarter and last year and so we can do that as well as become much.

Speaker Change: <unk> better at matching supply and demand and I think you've seen it in the growth we've delivered in experiences you've heard the proof points that we're talking about a round trip planning being able to match supply and demand and of course as we see a diverse set of travelers coming to us for hotels experiences and restaurants undersea.

Matthew Goldberg: I think you've seen it in the growth we've delivered in experiences. You've heard the proof points that we're talking about around trip planning, being able to match supply and demand, and, of course, as we see a diverse set of travelers coming to us for hotels, experiences, and restaurants, understanding what they're coming to us for and then driving the monetization by being more predictive and leveraging data and analytics to drive that. Again, the proof points that I have laid out consistently and built upon quarter by quarter suggest that that engagement is happening.

Speaker Change: Standing what theyre coming to us for and then driving the monetization by being more predictive.

Speaker Change: Leveraging data and analytics to drive that and again the proof points that I have laid out consistently and built upon quarter by quarter suggests that that engagement is happening it's flowing through to higher levels of monetization and your question is a great one which is how does that grow to be.

Matthew Goldberg: It's flowing through to higher levels of monetization. Your question is a great one, which is, how does that grow to be the diversified set of revenue streams that's going to drive sustainable growth in the future? I think we've been clear.

Speaker Change: The diversified set of revenue streams, that's going to drive sustainable growth in the future and I think we've been clear. This is the year, which is.

Matthew Goldberg: This is the year that is the transitional year. We prove out this strategy, and we go into the coming year and really see the impact on our financials. That's why we introduced our KPIs that we're starting to track, and you will hear us talk more about that in the quarters to come. We're super enthusiastic. We recognize that it may not happen as fast as some out there might wish, but again, just over 12 months into this strategy, we're making good progress. Thank you.

Speaker Change: The transitional year, we prove out this strategy and we go into the coming year and really see the impact in our in our financials. That's why we introduced our kpis that we're starting to track and Youll hear us talk more about that in quarters to come. So we're super enthusiastic we recognize that it may not happen as fast as some out there might wish but again.

Speaker Change: Just over 12 months into this strategy, we're making good progress.

Speaker Change: Great. Thank you look forward.

Operator: I look forward to it. One moment for our next question. The next question comes from the line of Jed Kelly of Oppenheimer. Jed, please go ahead.

Speaker Change: One moment for our next question.

Speaker Change: Yes.

Speaker Change: The next question comes from the line.

Speaker Change: Kelly Oppenheimer Jack.

Unknown Executive: Please go ahead.

Jed Kelly: Hey, great. Thanks for taking my question. Just two, if I may, just sort of some of the trends you called out in TripAdvisor Core. Have you seen any change in traveler behavior or any change that kind of implies some weakness in the consumer? And then just on Viator growth, can you help us parse out where we should expect, on a geographical basis, the growth to come from? Is it still going to be in the U.S., or are you seeing better traction in Europe? Thank you.

Speaker Change: Hey, great. Thanks for taking my question just two if I may just sort of some of the trends you called out in Tripadvisor core have you seen any change in <unk>.

Speaker Change: <unk> behavior or any change that kind of imply like some weakness in the consumer and then just on bias toward growth can you help us parse out where we should expect out of geographic great geographical basis, the growth to come from is it still going to be in the U S are you seeing better traction in Europe. Thank you.

Matthew Goldberg: Thanks, Jed, I appreciate the question. I'll take the first one around the consumer. As I mentioned, we haven't seen anything in our proprietary data that suggests that behavior is changing. You know, there is healthy demand data suggesting that, you know, the summer high season is when intent to travel is very high. And we've seen, you know, some of those key metrics that we look at hold. Of course, we continue to monitor the macro.

Speaker Change: Thanks, John I appreciate the question I'll take the first one around the consumer as I mentioned, we haven't seen anything in our proprietary data that suggests that behavior is changing.

Speaker Change: There is a.

Speaker Change: Healthy demand data, suggesting that the you know the summer Ah high season that the intent to travel is very high and we've seen.

Speaker Change: Some of those key metrics that we look at hold.

Speaker Change: Of course, we continue to monitor the macro and I think we mentioned we saw some unevenness in April.

Matthew Goldberg: And I think we mentioned, we saw some unevenness in April with the start of Q2 around demand trends and a whole bunch of things that are, you know, hard to parse between algorithms and overall macro and, you know, what, what, what, what, you know, some of the things we're actually doing to progress our product that we know can create noise. But I think as we look ahead and watch what's happening with inflation and the cost of living and, you know, how consumers are likely to behave based on their own personal balance sheets.

Speaker Change: With the start to Q2 around demand trends and a whole bunch of things that are.

Speaker Change: Hard to parse between algorithms and overall macro and.

Speaker Change: What what what some of the things we are actually doing.

Speaker Change: To progress our product that we know.

Speaker Change: Kent can create create noise, but I think as we look ahead, and we watch what's happening with inflation and cost of living and how consumers are likely to behave based on their own personal balance sheets and and we also like everyone else see the same mixed signals and potentially normalizing growth <unk>.

Matthew Goldberg: And, and, you know, and we also, like everyone else, see the same mixed signals and potentially, you know, a normalizing growth environment for travelers. We still see intent to travel high. And the data suggests that the high season is going to be an exciting one, like in the past couple of questions. Yeah, and question two for Viator Growth by GEO. So, you know, our primary markets are still, you know, English-speaking markets, and our primary market is North America, and obviously, the US.

Speaker Change: <unk> for travelers, we still see intent to travel high and the data suggests that the high season is going to be an exciting one like in the past couple of years.

Matthew Goldberg: And, you know, we remain very focused on growing that market, its largest travel market, making sure that we continue our wide margin of competitive, competitive leadership here. And so we're very focused on that. And so all, you know, our comments really are really more around the North American GEO, Jed.

Speaker Change: On question two for buyers who are growth by Geo. So our primary markets are still English speaking markets and primary market is North America, and obviously in the U S. And we remained very focused on growing that market, it's the largest travel market.

Speaker Change: Making sure that we continue.

Speaker Change: Our wide margin of competitive competitive leadership here and so we're very focused on that.

Speaker Change: And so on.

Speaker Change: Our comments really are really more around the north American Geo Jed I think.

Matthew Goldberg: Yeah, I think we certainly have the opportunity to think about how we move into other geographies and think deeply about that. And we want to do that in the right way. And, you know, think about that in terms of maintaining a financial profile that is attractive. But that's more of a future state for right now.

Speaker Change: We certainly have the opportunity to think about how we move into other geos and think deeply about that.

Speaker Change: And we want to do that.

Speaker Change: In the right way.

Speaker Change: <unk>.

Speaker Change: Think about that.

Speaker Change: In terms of maintaining a financial profile that is attractive, but that's more of a future state for right now.

Speaker Change: Thank you.

Speaker Change: Yeah. Thanks, Jeff.

Operator: Thank you. Thank you. One moment for our next question. The next question comes from the line of Vince Ciepiel from Cleveland Research Company. Vince, please go ahead.

Speaker Change: One moment for our next question.

Speaker Change: Yeah.

Speaker Change: The next question comes from the line of.

Speaker Change: <unk> from Cleveland Research Company. Please go ahead.

Vince Charles Ciepiel: Thanks so much. I'm curious if you could touch on the cost-saving plan that was lined out for this year. I think most of it will flow through branded TripAdvisor, and then some of the fork as well, that's still in place. And then, based on, you know, the guidance commentary today, it feels like there might be a number of offsets in terms of investment areas. And maybe you could speak to what those are. Yeah, hey, man.

Speaker Change: Thanks, So much I'm curious if you could touch on the cost save plan that was lined out for this year I think most of it flowing through.

Speaker Change: Branded Tripadvisor and then some of the fork as well that's still in place and then based on the guidance commentary today. It feels like there might be a number of offsets in terms of investment areas and maybe you could speak to what those are.

Michael Noonan: Yeah, you know, we had basically two programs that we were running under both brands. The $35 million that we cited last year was at BranchTripAdvisor. We had about $10 million in cash at the fork. You know, at the fork, we do expect and are seeing those savings flowing through, and that's an important part of their profit journey this year. You know, at BranchTripAdvisor, I think, you know, we think, I hope we've been very consistent on this, that, you know, we made some very difficult choices last year that really gave us room to execute on our strategy, right?

Speaker Change: Yes, yes.

Speaker Change: Yes.

Speaker Change: We have basically two programs.

Speaker Change: At both brands the $35 million that we cited last year was at branch of advisor only about $10 million in dollars at the four.

Speaker Change: Before we do expect and are seeing those savings flowing through and that's an important part of their their profit journey. This year a branch of advisor I think.

Michael Noonan: And a lot of the cost savings were around, you know, some of our go-to-market areas that we talked about and referenced in the script even. And so, you know, the strategy, the savings, I think are very much being used in a way through new hires, through backfills, you know, backfills into different roles, into some of these data engineering technology roles.

Speaker Change: We think we've been very consistent on this is that we.

Speaker Change: We made some very difficult choices last year that really gave us room to execute on our strategy right.

Speaker Change: And a lot of the cost savings were around.

Speaker Change: Some of our go to market areas that we talked about and referenced in the script even.

Speaker Change: And then we will sit back and think about how do we think about what we need to execute on our strategy and while that those savings.

Speaker Change: Gave us the ability to think about redeploying.

Speaker Change: In areas that we need to execute on our strategy. So that would be things like data scientists engineers as we were really ramping up our test and learn environment, we're really ramping up product development in ways I don't think we've seen before year end.

Speaker Change: And so.

Speaker Change: The strategy the savings I think are very much being used in a way through new hires through backfill backfill into different roles into the some of the data engineering technology technology roles.

Michael Noonan: And as well as, you know, we've referenced we are on a journey of migrating more into a cloud-based environment with a more modern tech stack across some of our businesses. And that's some areas we will continue to invest in over time. So, you know, we think it was the right move.

Speaker Change: And as well as we've referenced.

Speaker Change: We are on a journey continue journey of migrating more into a cloud based environment with a more modern tech stack across some of our businesses and that is that some areas. We will continue to invest in over time. So we think it was the right move it gave us the ability to be flexible to.

Michael Noonan: It gave us the ability to be flexible, to bounce into some areas on people costs that we needed to lean into. And we are continuing to do that. And as we modernize our tech stack, obviously, that allows us to move faster. You always want to be as agile and fast-moving as you possibly can.

Speaker Change: Two.

Speaker Change: Balanced into some areas on people costs that we needed to lean into and we are continue to do that and you're seeing it show up in strategy in the form of obviously the humans that can do the things that we are starting to do that are new and unique but also the ability to generate LTV based marketing programs you have to have your data in your data science.

Speaker Change: In place to do that and we expect that to deliver.

Speaker Change: Performance for us over time, and as we modernize our tech stack, obviously that allows us to move faster you always want to be as agile and fast moving as you possibly can.

Michael Noonan: Well, you know, those kinds of investments are required to get to the speed that you want to go at. So, you know, it's something we've thought very carefully about. We didn't do these things haphazardly.

Speaker Change: Those kinds of investments are required to get to the speed that you want to get too so.

Speaker Change: It's something we've thought very carefully about we didn't do these things haphazardly and I think we were very consistent that our goal here was to maintain the flexibility to deliver on this strategy.

Speaker Change: Yeah.

Vince Charles Ciepiel: And I think we were very consistent that our goal here was to maintain the flexibility to deliver on this strategy. Great. And then maybe one more on the cost side and zooming in a little bit closer to the Viator segment. Last year, I think revenue growth was really impressive, but the costs were up about as much. I think it was $240-ish million or something like that.

Speaker Change: Thank you and then maybe.

Speaker Change: One more on the cost side and zooming in a little bit closer to the viator.

Speaker Change: Segment last year, I think revenue growth is really impressive.

Speaker Change: But the costs were up about as much I think it was $248 million or something like that and we also saw a similar dynamic here in the first quarter, where I think revenue was maybe up $26 million of total costs were up 23. So just as we move through the course of this year would you expect cost growth to pace.

Vince Charles Ciepiel: And you almost saw a similar dynamic here in the first quarter, where I think revenue was maybe up $26 million, but total costs were up $23. So just as we move through the course of this year, would you expect cost growth to be close to, you know, close to in line with the dollar revenue growth that you anticipate? And I hear you on profitable for the year, but profitable can mean a lot of different things for Viator. Yeah, so, you know, a couple things. We are expecting, you know, margins, obviously, to improve, right? So that tells you a bit about the relative growth rate.

Speaker Change: Close to in line with the dollar revenue growth that you envision.

Speaker Change: I hear you on.

Speaker Change: Profitable for the year, but profitable can mean, a lot of different things.

Speaker Change: <unk> provided tour.

Michael Noonan: Yeah, I think, you know, when you look at that, that analysis, just compare year over year, I think just take a moment to remember, there's a couple things there. It's not all just marketing dollars in terms of performance channels, right? There are other things that we're doing to continue to invest in Viator. That could be more of some of the fixed and discretionary costs, or things like brand marketing, and things like people and products.

Speaker Change: Yeah. So a couple of things we are expecting margins, obviously to improve right.

Speaker Change: So that tells you that it is on the relative growth rates.

Speaker Change: Thank you.

Speaker Change: When you look at that that that analysis, just compare year over year I think just to get a remember theres a couple of things. There is not all just marketing dollars in terms of the performance channels right. There are other things that we're doing to continue to invest.

Speaker Change: And in Viator.

Michael Noonan: So, you know, we are continuing on a journey, as Matt talked about, of just product innovation. We're continuing to push at Viator, which we're very excited about, and we are, you know, hiring people and, and advancing technology in those areas. So, there are investments still being made in product supply, and not just all variable costs in marketing. And I think that's.

Speaker Change: That could be a more some of the fixed and discretionary costs.

Speaker Change: Brand marketing.

Speaker Change: And like people and product. So we're continuing on our journey as Matt talked about.

Speaker Change: There is a ton of just product innovation, we're continuing to push it vital which we're very excited about.

Speaker Change: And we are hiring people in and advancing technology in those areas. So there are investments still being made along product supply and not just all variable cost and marketing and I think thats. The point, yeah, Youll see us continue to be very strategic in our.

Michael Noonan: Yeah, you'll see us continue to be very strategic in our approach about how we trade off those various investments. And, you know, we're obviously excited about acquiring new customers and what's happening with our cohort. So we'll do that.

Speaker Change: Approach about how we trade off those various investments.

Speaker Change: We obviously are excited about acquiring new customers and what's happening with our cohort. So we'll do that we're thinking about the way that we.

Speaker Change: Look at our marketing mix over time, but the the product investments are also a very exciting area for via tour right, where we're very focused on leveraging the data asset that we have across Tripadvisor group, where there's 3 billion profiles to leverage and that will really help via toward drive personalization and I think drive converge.

Speaker Change: <unk> are very focused on the app because of its ability to really drive that kind of loyalty and repeat and conversion obviously focused on a on a rewards program that rewards repeat behavior.

Speaker Change: Thinking about supply and how we really serve our suppliers and the operators and then of course.

Speaker Change: Thinking about how to how to take advantage of AI and drive that to deliver both productivity and enhancements. So theres a lot of excitement there and I think what youre seeing is when we say balanced growth profitability and market share. We really mean it we're in this for the long haul and <unk>.

Speaker Change: Can and will be a winner and experiences for the long term.

Speaker Change: That's helpful. Thank you.

Speaker Change: Thanks, Dan.

Speaker Change: One moment for our next question.

Speaker Change: Okay.

Speaker Change: The next question comes from the line of Tom White of D. A Davidson Tom. Please go ahead.

Thomas Cauthorn White: Great. Thanks, just wanted to follow up on the travel service changes you touched on curious whether that's impacting by Toradol this quarter and I.

Matthew Goldberg: We're thinking about the way that we look at the marketing mix over time. But the product investments are also a very exciting area for Viator, right? We're very focused on leveraging the data asset that we have across TripAdvisor Group, where there are 3 billion profiles to leverage. And that'll really help Viator drive personalization and, I think, drive conversion.

Thomas Cauthorn White: I guess, how are you guys feeling about kind of the direct traffic mix for mobile.

Thomas Cauthorn White: For that asset.

Thomas Cauthorn White: How does it upon a wrinkle relative maybe brand towards the buzzer how do you improve going forward.

Thomas Cauthorn White: Yes.

Speaker Change: Thanks Al.

Speaker Change: Mike I'll take it.

Speaker Change: On the on the search changes so listen.

Speaker Change: There's been a lot.

Michael Noonan: That's been happening.

Speaker Change: On this and.

Speaker Change: And <unk> had some updates even at the end of last year. So we've been kind of seen a lot of these changes flowing through.

Speaker Change: When anything impacts kind of SCO.

Speaker Change: It's going to impact impact our brands, who play that right and look at and the traffic that comes from that for sure.

Speaker Change: We are have great teams at work and do great work to mitigate and work through this and they are in the process of doing that and <unk> been doing is doing that for some time, but it takes time right and it takes time to readjust when things change like that so I would say yes.

Speaker Change: Changes have impacted SCO.

Speaker Change: And I cited that a bit earlier.

Speaker Change: And we're again still very pleased with what we're seeing in other channels and to get to your what you referenced.

Speaker Change: Our App channel is growing very fast.

Speaker Change: Our main.

Speaker Change: Main SCM channel.

Speaker Change: It's still growing fast and again, that's a big channel for us to acquire new users right and start the process of new user to repeat user. So we still see healthy channels across a healthy healthy performance across the other channels, but do note. There is there are some some headwinds in the <unk>.

Speaker Change: On Google I got to just say.

Speaker Change: We are a partner to them as well and I want to say, we talked to them. All the time. So we feel that if you are going to react to how Google is making changes where in a very good position to do it across the group and Thats true to think about how we work with them in the future.

Speaker Change: Organically for both Tripadvisor and Viator and I think that's an advantage of the group you also have to remember on the channels provided tour.

Speaker Change: I said in my in my upfront comments.

Speaker Change: <unk> benefits from this direct relationship with Tripadvisor, where more than a third of our many hundreds of millions of travelers. Each month are coming shopping for experiences and really leaning into that channel and how to optimize it over time is one that creates I think tremendous opportunity and upside.

Speaker Change: <unk>.

Speaker Change: For us and of course, we're also doing a lot of product work.

Speaker Change: And investing to make sure that the App, which is our fastest growing surface. Our most loyal surface, we're seeing healthy improvement in app conversion.

Speaker Change: It's still a smaller base, but again tremendous upside and headroom for us for the future and our App downloads are growing at a very high rate and their performance on the App is going well, so we really like that and plan to lean into it. Thanks for the question.

Speaker Change: Thank you, Matt our time commitment our time limit so now I'd like to turn the call back over to Matt Goldberg for closing remarks.

Matthew Goldberg: Thanks, again to everyone for joining us today, we're looking forward to executing on our 2024 plan and continuing to drive our initiatives forward see what the next update.

Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Speaker Change: Yeah.

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Speaker Change: Good day, and thank you for standing by welcome.

Matthew Goldberg: Very focused on the app because of its ability to really drive that kind of loyalty and repeat and conversion. Obviously, focused on a rewards program that rewards repeat behavior, thinking about supply and how we really serve our suppliers and the operators. And then, of course, you know, thinking about how to take advantage of AI and drive that to deliver both productivity and enhancement.

Speaker Change: Welcome to the Tripadvisor first quarter 'twenty 'twenty four conference call.

Speaker Change: At this time all participants are in a listen only mode.

Speaker Change: After the speaker's presentation, there will be a question and answer session to ask a question. During the second you will need to press star one on your telephone you will then hear an automated message advising in hand is raised to withdraw your question. Please press star one one again please.

Speaker Change: Please be advised that today's conference is being recorded.

Matthew Goldberg: So there's a lot of excitement there. And I think what you're seeing is that when we say balance, growth, profitability, and market share, we really mean it. We're in this for the long haul, and Viator can and will be a winner in experiences for the long haul.

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

Vince Charles Ciepiel: Thank you. Thanks, Vince. One moment for our next question. The next question comes from the line of Tom White of DA Davidson & Co. Tom, please go ahead. Great. Thanks. Just wanted to follow up on the travel SERP changes you touched on. Curious whether that's impacting Viator at all this quarter.

Angela White: Thank you Felicia and good morning, everyone and welcome to Tripadvisor as the first quarter of 2024 financial results call. Joining me today are Mark Goldberg, President and CEO and Mike Noonan CFO.

Angela White: This morning before the market open we filed and made available our earnings release and that release, you'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measure discussed on this call before we begin I'd like to remind you that this call may contain estimates and other forward looking statements that represent management's view as of today may eight 2024.

Angela White: Tripadvisor disclaims any obligation to update these statements 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.

Thomas Cauthorn White: And I guess on Viator, how are you guys feeling about kind of the direct traffic mix or mobile app mix for that asset? How does that kind of rank up relative to maybe Brand Trip Advisor, and how do you improve that going forward? Thanks. Yeah, thanks, Tom. It's Mike. I'll take it.

Matthew Goldberg: Thanks, Angela and good morning to everyone. Joining us today, we were pleased with our first quarter results, which represented a solid start to the year across the board revenue was $395 million, reflecting year over year growth of 6% and adjusted EBITDA was $47 million or 12% of revenue.

Michael Noonan: You know, on the SERP changes, so, you know, listen, there's been a lot that's been happening with this, and, you know, the AHA had some updates even at the end of last year. So, we've been kind of seeing a lot of these changes flowing through. You know, when anything impacts the kind of SEO, you know, it's going to impact our brands who play that, right? And look at the traffic that comes with that for sure.

Michael Noonan: You know, we have great teams that work and do great work to mitigate and work through this, and they're in the process of doing that, and brand supervisors have been doing that for some time, but it takes time, right? And it takes time to readjust when things change like that.

Matthew Goldberg: Our results are a testament to our alliance strategy and disciplined financial and operational execution of our teams later in the call Mike will provide more financial details, but first I'll cover the progress we've made operationally as a reminder, we're operating unique but complementary strategies across our segments at branch Tripadvisor.

Michael Noonan: So, I would say, yes, the changes have impacted SEO, and I cited that a bit earlier, and we're, you know, again, still very pleased with what we're seeing in other channels, and as you get to your point, our app channel is growing very fast. You know, our main SEM channel is still growing fast, and again, that's a big channel for us to acquire new users, right, and start the process of, you know, getting new users to repeat.

Angela White: We're focusing on engagement and delivering world class guidance products to diversify and fuel our monetization paths advisors, we're reinforcing our leadership position in experiences by investing in our brand enhanced products and repeat bookings to drive LTV and improving unit economics at the fourth.

Angela White: We're driving revenue growth with margin improvement by delivering value to both diners and restaurants as the leader in the European Diamond market.

Michael Noonan: So we still see healthy channels, a healthy performance across the other channels. But do note, yeah, there are some headwinds in the SEO world. You know, on Google, I've got to just say, we are a partner to them as well. And I want to say, we talk to them all the time.

Angela White: Starting with brand Tripadvisor, we delivered revenue of $240 million, a decline of 2% and adjusted EBITDA of $78 million or 33% of revenue our results reflect the mix of growth and profit profiles within our segment portfolio as well as the initiatives, we're prioritizing to return to sustainable growth.

Matthew Goldberg: So we feel that if you're going to react to how Google's making changes, we're in a very good position to do it across the group. And that's true of how we work with them in the future organically for both TripAdvisor and Viator. And I think that's an advantage of the group.

Angela White: <unk>.

Angela White: The foundation, we built so far and the work we are pursuing in 2024 are expected to deliver clear strategic outcomes.

Matthew Goldberg: You also have to remember the channels for Viator. I said it in my upfront comments. Viator benefits from this direct relationship with TripAdvisor, where more than a third of our many hundreds of millions of travelers each month are coming shopping for experiences. And really leaning into that channel and how to optimize it over time is one that creates, I think, tremendous opportunity and upside for us. And of course, we're also doing a lot of product work and investing to make sure that the app, which is our fastest growing surface, our most loyal surface, we're seeing healthy improvement in app conversion.

Angela White: Drive continued scale in our global audience generate additional members who are more loyal and come back to us more frequently through direct channels like the app and deliver sustainable growth across our diverse monetization paths. These.

Matthew Goldberg: It's still a smaller base, but again, tremendous upside and headroom for us for the future. And app downloads are growing at a very high rate, and the performance of the app is going well. So we really like that and plan to lean into it. Thank you for the question.

Operator: We've met our time commitment, our time limit. So now I'd like to turn the call back over to Matt Goldberg for closing remarks. Thanks again to everyone for joining us today. We're looking forward to executing on our 2024 plan and continuing to drive our initiatives forward. See you at the next update. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Angela White: These are the core elements to drive engagement led opportunity opportunities across all of our categories and key to reducing our overall dependence on fly by traffic and addressing the well understood pressure on our legacy media our legacy metal business.

Angela White: We're measuring these outcomes across key metrics, including our overall audience active members in App users and average revenue per user.

Angela White: For all of these are year over year trends improved between Q4 2023 in Q1 of 2024, and we've seen positive trends emerge in monthly sequential changes over the last six months, while we still have work to do continuing to transform this business, we are well positioned to accelerate our progress.

Angela White: And exit 2024 with more momentum than we've had at any point in the past few years.

Operator: Thanks for watching! ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Music Music Music Music Music Music Music Music Music, ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good day and thank you for standing by. Welcome to the TripAdvisor first quarter 2024 conference call. At this time, all participants are in a listen-only mode.

Angela White: As I mentioned on the last call our three top priorities for brand Tripadvisor. This year are one differentiating the mobile app.

Angela White: Shifting our marketing to reinforce our engagement led strategy and three leveraging the investments we've made in data and AI to deliver a more personalized experience for our users let.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is ready.

Angela White: Let me share a few of our accomplishments from Q1 across these three priorities and the proof points. We continue to see that underscore how we can create more engagement and converted into increased monetization.

Operator: To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker for today, Angela White, VP of IR. Angela, please go ahead.

Angela White: First we scaled our trips itinerary tool from web to App, where we incorporated learnings from the web only launched last year, we continue to test and roll out new features including the ability to book experiences through our trips tool and other commerce testing as part of trip planning one critical area, we have been exploring it.

Angela White: Thank you, Felicia. Good morning, everyone, and welcome to TripAdvisor's first quarter 2024 financial results call. Joining me today are Matt Goldberg, President and CEO, and Mike Noonan, CFO. This morning, before the market opened, we filed and made available our earnings release.

Matthew Goldberg: In that release, you'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measure discussed on this call. Before we begin, I'd like to remind you that this call may contain estimates and other forward-looking statements that represent management's view as of today, May 8, 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 statistics. With that, I'll turn the call over to Matt.

Matthew Goldberg: Thanks, Angela, and good morning to everyone joining us today. We were pleased with our first quarter results, which represented a solid start to the year across the board. Revenue was $395 million, reflecting year-over-year growth of 6%, and adjusted EBITDA was $47 million, or 12% of revenue. Our results are a testament to our aligned strategy and the disciplined financial and operational execution of our team. Later in the call, Mike will provide more financial details, but first, I'll cover the progress we've made operationally. As a reminder, we operate unique but complementary strategies across our segments. At Brand TripAdvisor, we're focusing on engagement and delivering world-class guidance products to diversify and fuel our monetization.

Matthew Goldberg: At Viator, we're reinforcing our leadership position and experiences by investing in our brand, enhanced products, and repeat bookings to drive LTV and improve unit economics. At The Fork, we're driving revenue growth with margin improvement by delivering value to both diners and restaurants as the leader in the European dining industry. Starting with Brand TripAdvisor, we delivered revenue of $240 million, a decline of 2%, and adjusted EBITDA of $78 million, or 33% of revenue.

Angela White: The best layer and Bookable experiences at every stage in the trip planning journey for example in our AI powered trip planning flow when we ask users to select overall interest for their trip like hidden gems or historical landmarks, we now dynamically add destination specific themes tied to the most relevant bookable experiences.

Matthew Goldberg: Our results reflect the mix of growth and profit profiles within our segment portfolio, as well as the initiatives we're prioritizing to return to sustainable growth. The foundation we built so far, and the work we're pursuing in 2024, is expected to deliver clear strategic outcomes, drive continued scale in our global audience, generate additional members who are more loyal and come back to us more frequently through direct channels like the app, and deliver sustainable growth across our diverse monetization. These are the core elements to drive engagement-led opportunities across all our academies, and key to Reducing Our Overall Dependence on Flyby We're measuring these outcomes across key metrics, including our overall audience, active members, and app users, and average revenue per user.

Angela White: So if youre using our AI feature to build an itinerary for Rome, you might see that it can skip the line tours.

Angela White: Or path to making classes listed alongside the more general interest that apply across destinations.

Angela White: We're seeing that users who select one of these commerce focused interest generate 50% higher average revenue than users, who done which provides a fantastic signal of our ability to generate incremental demand and monetize it as users move through the journey.

Matthew Goldberg: For all of these, our year-over-year trends improved between Q4 2023 and Q1 of 2024, and we've seen positive trends emerge in monthly sequential changes over the last six months. While we still have work to do to continue to transform this business, we're well positioned to accelerate our progress and exit 2024 with more momentum than we've had at any point in the past few years. As I mentioned on the last call, our three top priorities for TripAdvisor this year are 1.

Angela White: Second to reinforce our engagement strategy and lean into one of our core Differentiators, we've been evaluating how free membership impacts of travelers content contributions.

Matthew Goldberg: Differentiating the mobile app, Two, shifting our marketing to reinforce our engagement-led strategy, and three, leveraging the investments we've made in data and AI to deliver a more personalized experience for our users. Let me share a few of our accomplishments from Q1 across these three priorities and the proof points we continue to see that underscore how we can create more engagement and convert it into increased monetization. First, we scaled our TRIPS itinerary tool from web to app, where we incorporated learnings from the web-only launch last year.

Angela White: In Q1, we began testing a new recognition program for members called achievements, which is based on our research that tells us that users are motivated to contribute reviews photos trips and other guidance specifically to help other travelers.

Angela White: Achievements recognized as travelers for their contributions to the community with badges that showcase the things. They are passionate about along with a new dashboard to track their progress although its early in testing. It has already delivered an increase of nearly three X in content contributions per user.

Angela White: Importantly, this follows the strong growth, we delivered last year, including approximately 20% growth across UGC contribute contributors review submissions and photos. We believe we can continue to build on this momentum as we further expand achievements and enhance our membership with additional incentives to reward engagement.

Angela White: Finally on our last call I talked about the introduction of Gen AI driven hotel reviews summaries and the early but strong positive indicators. We've observed we've continued to improve and expand this feature measuring performance by the year over year change in revenue and engagement for hotels that have this feature versus those that don't for hotel.

Angela White: With AI driven summaries the year over year change in click based revenue is three percentage points better than those without the underlying engagement is also healthier review submissions are three percentage points better photo submissions are four percentage points better and saves our eight percentage points better we continue to expand the number of <unk>.

Angela White: Hotels with this feature prioritizing recency and quality over quantity. We're also excited about our plans to scale. This feature to our experiences and restaurant categories over time.

Angela White: I want to thank our teams for their relentless effort to transform brand Tripadvisor, we're aligned on our strategy and focused on execution, we have a robust roadmap for 2024, and we have confidence will continue to provide travelers with indispensable products increased customer lifetime value and create even more opportunities.

Angela White: For our partners.

Angela White: Turning now to viator.

Angela White: As we noted on the last call. This year, we're focused on continuing to scale, while balancing growth profitability and market share invest.

Angela White: Investments to date have driven scale, and our customer base and value to our supplier base reinforcing our leading position in experiences <unk>.

Angela White: <unk> has the advantage of the demand from hundreds of millions of visitors to the tripadvisor site, each month, including more than $100 million Tripadvisor users actively shopping for an experience we continue to test and learn how best to capitalize on this relationship given the cross team talent deep industry knowledge and opportunities.

Matthew Goldberg: We continue to test and roll out new features, including the ability to book experiences through our Trips tool and other commerce testing as part of TripPlan. One critical area we've been exploring is how to best layer in bookable experiences at every stage in the trip planning journey. For example, in our AI-powered trip planning flow, when we ask users to select overall interests for their trip, like hidden gems or historical landmarks, we now dynamically add destination-specific themes tied to the most relevant bookable experiences. So if you're using our AI feature to build an itinerary for Rome, you might see Vatican skip-the-line tours or pasta-making classes listed alongside the more general interests that apply across destinations.

Angela White: We have in our geographic and supply reach.

Angela White: In Q1, <unk> revenue grew 23% year over year, while gross booking value or <unk> grew approximately 15%.

Angela White: In addition to the topline results we were very pleased with the year over year improvement in adjusted EBITDA margin a function of our operating leverage in sales and marketing and our commitment to operational efficiency Mike.

Angela White: Mike will hit more on the detail shortly but this quarter was an example of the levers we manage in order to strike the right balance between growth and profitability, both near and long term.

Matthew Goldberg: We're seeing that users who select one of these commerce-focused interests generate 50% higher average revenue than users who don't, which provides a fantastic signal of our ability to generate incremental demand and monetize it as users move through the journey. Second, to reinforce our engagement strategy and lean into one of our core differentiators, we've been evaluating how free membership impacts a traveler's content contribution. In Q1, we began testing a new recognition program for members called Achievements, which is based on our research that tells us that users are motivated to contribute reviews, photos, trips, and other guidance specifically to help other travelers. Achievements recognizes travelers for their contributions to the community with badges that showcase the things they're passionate about, along with a new dashboard to track their progress.

Angela White: On the traveler side, we continue to work on building an experience that encourages repeat engagement and drives loyalty and lifetime value.

Angela White: This includes ongoing focus on every part of the journey on acquisition, we're very pleased with our growth in brand health with meaningful increases in aided and unaided awareness as well as consideration.

Matthew Goldberg: Although it's early in testing, it has already delivered an increase of nearly 3x in content contributions per user. Importantly, this follows the strong growth we delivered last year, including approximately 20% growth across UGC contributors, review submissions, and photos. We believe we can continue to build on this momentum as we further expand achievements and enhance our membership with additional incentives to reward engagement. Finally, on our last call, I talked about the introduction of Gen-AI driven hotel review summaries and the early but strong positive indicators we've observed.

Matthew Goldberg: We've continued to improve and expand this feature, measuring performance by the year-over-year change in revenue and engagement for hotels that have this feature versus those that don't. For hotels with AI-driven summaries, the year-over-year change in click-based revenue is 3 percentage points better than those without AI-driven summaries. The underlying engagement is also healthier.

Matthew Goldberg: Review submissions are 3 percentage points better, photo submissions are 4 percentage points better, and saves are 8 percentage points better. We continue to expand the number of hotels with this feature, prioritizing recency and quality over quantity. We're also excited about our plans to scale this feature to our experiences and restaurant categories over time. I want to thank our teams for their relentless effort to transform Brand TripAdvisor.

Matthew Goldberg: We're aligned on our strategy and focused on execution. We have a robust roadmap for 2024, and we have confidence we'll continue to provide travelers with indispensable products, increase customer lifetime value, and create even more opportunities for our partners.

Matthew Goldberg: As we noted on the last call, this year we're focused on continuing to scale while balancing growth, profitability, and market share. Investments to date have driven scale in our customer base and value to our supplier base, reinforcing our leading position in experiences. Viator has the advantage of the demand from hundreds of millions of visitors to the TripAdvisor site each month, including more than 100 million TripAdvisor users actively shopping for experiences.

Angela White: As we grow our customer base, we're making it easier for them to book more things more often we're matching travelers to products expanding our rewards program and making significant improvements to checkout pages. These.

Matthew Goldberg: We continue to test and learn how best to capitalize on this relationship given the cross-team talent, deep industry knowledge, and opportunities we have in our geographic and supply reach. In Q1, Viator revenue grew 23% year-over-year, while Gross Booking Value, or GBV, grew approximately 15%. In addition to the top-line results, we were very pleased with the year-over-year improvement in adjusted EBITDA margin, a function of our operating leverage in sales and marketing and our commitment to operational efficiency.

Matthew Goldberg: Mike will hit more on the details shortly, but this quarter was an example of the levers we manage in order to strike the right balance between growth and profitability, both near and long term. On the traveler side, we continue to work on building an experience that encourages repeat engagement and drives loyalty and lifetime value. This includes ongoing focus on every part of the journey.

Matthew Goldberg: On acquisition, we're very pleased with our growth in brand health, with meaningful increases in aided and unaided awareness, as well as consideration. As we grow our customer base, we're making it easier for them to book more things, more often. We're matching travelers to products, expanding our rewards program, and making significant improvements to checkout pages. These changes are designed to provide more confidence in booking for our users, and they're driving an incremental lift in conversion and in revenue per visitor.

Angela White: These changes are designed to provide more confidence in booking for our users and they're driving incremental lift in conversion and in revenue per visitor.

Matthew Goldberg: Further, as we grow our audience and improve the experience, we're increasingly serving our customers through our most efficient channel, the app. In Q1, we saw record high app downloads, year-over-year growth and conversion, and a record high for app bookings, our most loyal and highest repeat service. On the supply side, the value we're driving is clear as we continue to see low supplier churn and growth in supplier GBV retention in each subsequent year on our platform. Viator has generated nearly $4 billion in sales for its Tor operators over the last year, and we're proud to be helping our operator partners access global demand to grow their business.

Angela White: Further as we grow our audience and improve the experience we are increasingly serving our customers through our most efficient channel. The app in Q1, we saw record high app downloads year over year growth in conversion and a record high for App bookings are most loyal and highest repeat surface.

Angela White: On the supply side the value, we're driving as clear as we continue to see low supplier churn and growth in supplier GBP retention in each subsequent year on our platform.

Angela White: <unk> has generated nearly $4 billion in sales for its tour operators over the last year and we're proud to be helping our operator partners access global demand to grow their businesses.

Matthew Goldberg: We also see the value we're driving for our tour operators reflected in our take rate, which reached an all-time high in March, driven by the incremental benefit coming from our Accelerate program enhancement. With the largest supply base and set of products in the market, both of which continue to grow, we will remain focused on enhancing the value we add for our partners and expanding high-quality supply options. Finally, at the fork, in 2024, we're prioritizing our efforts to drive value for our diners and restaurant owners as we transition to annual profitable growth. As the clear leader in European dining reservations, our hybrid model, revenue based on seated diners as well as ERB revenue, positions us to capture even more opportunity.

Angela White: We also see the value we're driving for our tour operators reflected in our take rate, which reached an all time high in March driven by incremental benefit coming from our accelerate program enhancements.

Angela White: With the largest supply base and set of products in the market both of which continue to grow we will remain focused on enhancing the value we add for our partners and expanding high quality supply offerings.

Angela White: Finally at the <unk> in 2024, we're prioritizing our efforts to drive value to our diners and restaurant owners as we transition to annual profitable growth.

Angela White: As the clear leader in European dining reservations are hybrid model revenue based on seeded diners as well as ERP revenue positions us to capture even more opportunities. Our Q1 results underscore that our past investments in technology and product with complete solutions to restaurants is paying.

Matthew Goldberg: Our Q1 results underscore that our past investment in technology and products with complete solutions to restaurants is paying off. Revenue at the fork grew 17% driven by a combination of bookings and pricing, with Meaningful Margin Improvement year over year. We also saw an opportunity during the quarter to balance the mix between brand and incentive marketing and performance marketing, given favorable returns in performance marketing channels.

Angela White: <unk>.

Angela White: Revenue in the fourth grew 17% driven by a combination of bookings and pricing growth with meaningful margin improvement year over year. We also saw an opportunity during the quarter to balance the mix between brand and incentive marketing and performance marketing given favorable returns and performance marketing channels. We.

Matthew Goldberg: We were pleased with the growth we delivered and plan to continue to refine our marketing. On the B2B side, in Q1, growth in our net restaurant count was over 4%, excluding Australia where we've exited the market, driven by healthy growth across markets with promising growth in new restaurant signings. We believe that our updated sales approach and technology solutions are gaining more traction thanks to the changes in our go-to-market strategy, including a more segmented approach and proactive outreach triggered by restaurant profiles.

Angela White: We were pleased with the growth, we delivered and plan to continue to refine our marketing mix.

Angela White: On the <unk> side in Q1 growth in our net restaurant count was over 4%, excluding Australia, where we've exited the market driven by healthy growth across markets with promising growth in new restaurants signatures. We believe that our updated sales approach and technology solutions are gaining more traction thanks to the changes in our <unk>.

Angela White: Go to market strategy, including a more segmented approach and proactive outreach triggered by restaurant profile data.

Matthew Goldberg: The investments we've made in technology and products are enabling more opportunities, such as ERB-driven pricing solutions, promotions, and yield management, which we believe can drive higher restaurant RPIs. However, revenue we derive from ERB solutions is still a small portion of the total revenue of the fork.

Angela White: The investments we've made in technology and product are enabling more opportunities such as ERP, driven pricing solutions promotions and yield management, which we believe can drive higher restaurant ARPA.

Angela White: Revenue, we derived from ERP solutions is still a small portion of the total revenue of the fourth however, given our leading position in the marketplace. We're confident that the right balance between the strategic sales approach Onboarding and management for these small businesses and their owners will help us capture more <unk> share ahead.

Matthew Goldberg: However, given our leading position in the marketplace, we're confident that the right balance between a strategic sales approach, onboarding, and management for these small businesses and their owners will help us capture more B2B share in the future. Before I pass the call to Mike, I want to reiterate the conviction we have about the long-term opportunity in travel and the role we can play there. One thing we've learned over the past few years is that travel and experiences remain a high priority for consumers around the world.

Speaker Change: Before I pass the call to Mike I want to reiterate the conviction we have about the long term opportunity in travel and the role we can play there.

Michael Noonan: One thing we've learned over the past few years is that travel and experiences remain a high priority to consumers around the world.

Matthew Goldberg: To date, we haven't identified any notable changes in our behavioral data to suggest otherwise. Length of stay and share of hotels across star ratings have remained consistent despite ongoing inflationary pressures and geopolitical tensions. Our traveler surveys indicate that consumers still have a tremendous appetite for travel. 80% of travelers expect to travel this summer, an increase from 76% last summer, and international travel interest remains high.

Michael Noonan: To date, we haven't identified notable changes in our behavioral data to suggest otherwise length of stay and share of hotels across star ratings have remained consistent despite ongoing inflationary pressures and geopolitical tensions are traveler surveys indicate that consumers still have a tremendous appetite for travel.

Michael Noonan: 80% of travelers expect to travel this summer and increased from 76% last summer and international travel interest remains high.

Matthew Goldberg: We head into the high travel season pleased with the work we've done to strengthen our positioning in this dynamic industry. With that, I'll turn the call over to Mike. Thanks, Matt. And good morning, everyone.

Michael Noonan: We head into the high travel season pleased with the work we've done to strengthen our positioning in this dynamic industry.

Michael Noonan: With that I'll turn the call over to Mike.

Michael Noonan: I will start with a recap of the quarter, and then we'll provide some thoughts on the near-term outlook and priorities for the remainder of the year. All growth rates are relative to comparable periods in 2023 unless noted otherwise. We start the year with a solid quarter, with revenue of $395 million, reflecting growth of 6%. Adjusted EBITDA was $47 million, or 12% of revenue and 300 basis points higher than last year. While we saw a slow start to the year in January, trends improved as we progressed through February and March.

Michael Noonan: Thanks, Matt and good morning, everyone I will start with a recap of the quarter and then will provide some thoughts on near term outlook and priorities for the remainder of the year.

Michael Noonan: All growth rates are relative to the comparable periods in 2023, unless unless noted otherwise.

Michael Noonan: We started the year with a solid quarter with revenue of $395 million, reflecting growth of 6%.

Michael Noonan: Adjusted EBITDA was $47 million or 12% of revenue and 300 basis points higher than last year.

Michael Noonan: While we saw a slow start to the year in January trends improved as we progressed through February and March.

Michael Noonan: Turning to segment performance for the first quarter, BranchTripAdvisor delivered revenue of $240 million, which is a decline of 2%. Branded hotel revenue was $159 million, a decline of 5%, driven by similar declines in both hotel meta and our B2B revenue. Hotel Meadow performance was driven by sustained pricing strength across most of our geos in both free and paid channels, which was more than offset by lower clicks. Our ROAS was slightly up year over year, which led to a marginally higher hotel META contribution margin compared to last year. From a revenue perspective, Hotel Meda in the U.S. declined slightly.

Michael Noonan: Turning to segment performance for the first quarter.

Michael Noonan: Brand to provide you delivered revenue of $240 million, which is a decline of 2% branded.

Michael Noonan: Branded hotel revenue was $159 million a decline of 5% driven by similar declines in both hotel <unk> revenue.

Michael Noonan: Hotel meta performance was driven by sustained pricing strength across most of our geos in both free and paid channels, which was more than offset by lower click volumes.

Michael Noonan: <unk> was slightly up year over year, which led to a marginally higher hotel meta contribution margin compared to last year.

Michael Noonan: From a revenue perspective hotel meta in the U S declined slightly rest.

Michael Noonan: Rest of World declined modestly, with APAC up slightly, and EMEA declining in line with prior claims. In B2B, revenue growth was impacted by decisions to de-emphasize less incremental advertising products. As well as flat performance in our subscription product as we began the transition to a self-service model that will serve our customers more effectively and efficiently going forward. Media and advertising revenue grew 10% to $33 million. Better than expected growth was a result of higher contribution from our off platform or creative media, and by better than expected programmatic. We also saw some timing benefits from some campaigns realized this quarter that will negatively impact growth. In dining revenue, experiences grew 9% to $36 million. However, experiences grew 17% while dining revenue declined year-over-year in connection with transitioning B2B from a sales-led to a self-service approach.

Michael Noonan: Rest of World declined modestly with APAC up slightly in EMEA declined in line with prior quarters.

Michael Noonan: <unk> revenue growth was impacted by decisions to deemphasize less incremental advertising products as well as flat performance in our subscription product as we began the transition to a self service model that will serve our customers more effectively and efficiently going forward.

Michael Noonan: Media and advertising revenue grew 10% to $33 million.

Michael Noonan: Better than expected growth was a result of higher contribution from our off platform or creative media spend and by better than expected programmatic spend.

Michael Noonan: We also saw some timing benefit from some campaigns realized this quarter that will negatively impact growth in Q2.

Michael Noonan: Experiences in dining revenue grew 9% to $36 million experiences grew 17% dining revenue declined year over year in connection with transitioning <unk> from a sales led to a self service approach.

Michael Noonan: Finally, our other revenue was $12 million, which was down 8% year-over-year. We continue to see growth in our cruise offerings, which grew 6% this quarter, though declines in our de-emphasized offerings more often than not. The adjusted EBITDA in the branch advisor segment was $78 million, or 33% of revenue.

Michael Noonan: And finally, other revenue was $12 million, which was down 8% year over year.

Michael Noonan: We continue to see growth in our cruise offering which grew 6% this quarter, though declines in our deemphasize offerings more than offset this growth.

Michael Noonan: Adjusted EBITDA in the brand provides our segment with $78 million or 33% of revenue.

Michael Noonan: 300 Base Point Expansion versus Q1 of last year was primarily due to increased contribution profit and experience and Lower People Cost in Sales and Marketing, and G&A, which more than offset year-over-year increases in tech and content headcount costs to support our strategy, as well as higher cloud efficiency. Now, turning to Viator, where we delivered better than expected revenue growth of 23% or $141 million, healthy growth across all points. The timing of the Easter holiday, as well as Leap Year, contributed approximately four million or three points of growth in Q1.

Michael Noonan: A 300 basis point expansion versus Q1 of last year was primarily due to increased contribution profit and experiences and lower people costs and sales and marketing and G&A.

Michael Noonan: Which more than offset year over year increases in tech and content head count costs to support our strategy as well as higher cloud and licensing costs.

Michael Noonan: Now turning to <unk>, where we delivered better than expected revenue revenue growth of 23% or $141 million with healthy growth across all points of sale.

Michael Noonan: The timing of Easter holiday as well as leap year contributed approximately $4 million or three points of growth in Q1.

Michael Noonan: The majority of this benefit was related to Easter, which resulted in a pull-forward of revenue from the second quarter, as compared to last year. Gross booking value, or GBV, grew 15% to approximately 1 billion, driven primarily by volume. The difference between revenue and GBV growth was partly due to the holiday timing, which impacted revenue positively, but GBV negatively.

Michael Noonan: The majority of this benefit was related to Easter, which resulted in a pull forward of revenue from the second quarter as compared to last year.

Michael Noonan: Gross booking value or <unk> grew 15% to approximately 1 billion driven primarily by volume growth.

Michael Noonan: The difference between revenue and <unk> growth was partly due to the holiday timing, which impacted revenue positively, but GBP negatively in the quarter.

Michael Noonan: We continue to prudently balance growth with investment, marketing, and spending. Performance marketing spent as a percent of GBV was flat year-over-year as we leaned into opportunities to drive growth, continue to acquire new customers at scale while consistently growing our repeat customers faster than our new. We also see higher than average growth in bookings that come to us directly, including through our app, and customers who book with us more than three times, who are our most loyal and profitable.

Michael Noonan: We continue to prudently balance growth with investment marketing spend.

Michael Noonan: Performance marketing spend as a percent of GBT was flat year over year, as we leaned into opportunities to drive growth in the quarter.

Michael Noonan: We continue to acquire new customers at scale, while consistently growing our repeat customers faster than our new ones.

Michael Noonan: We also see higher than average growth in bookings that come to us directly, including our App and customers, who book with us more than three times, who are our most loyal and profitable users.

Michael Noonan: These trends reinforce our confidence in our customer acquisition strategy and our ability to drive long-term profitable growth as we build the category. Adjusted EBITDA loss at Viator was $27 million, or negative 19% of revenue, an improvement versus last year's margin of negative 26%.

Michael Noonan: These trends reinforce our confidence in our customer acquisition strategy and our ability to drive long term profitable growth as we build category leadership.

Michael Noonan: Adjusted EBITDA loss at <unk> was $27 million or negative 19% of revenue an improvement versus last year's margin of negative 26%.

Michael Noonan: While margin benefited by approximately 200 basis points from the timing of the holiday revenue in Q1, excluding this impact, we saw solid leverage in variable costs, including performance marketing costs, and fixed costs, including people. At the fork, revenue grew 17% as reported and 16% in constant currency. Growth in booking volume of approximately 10% and pricing growth drove the solid. A just e-bill loss at the fork of $4 million, or negative 10% of revenue, was a significant improvement from last year's loss of $9 million, or negative $26 billion.

Michael Noonan: While margin benefited by approximately 200 basis points from the timing of the holiday revenue in Q1, excluding this impact we saw solid leverage in variable costs, including performance marketing costs and fixed costs, including people and brand cost.

Michael Noonan: At the <unk> revenue grew 17% as reported and 16% in constant currency terms.

Michael Noonan: $241 million.

Michael Noonan: Growth in booking volume of approximately 10% and pricing growth drove the solid performance.

Michael Noonan: Adjusted EBITDA loss at the port of $4 million or negative 10% of revenue was a significant improvement from last year's loss of $9 million or negative <unk>, 26% of revenue.

Michael Noonan: The largest driver of this improvement was lower people costs and direct costs, which more than offset higher costs of sales relating to a contract renegotiation that reduced costs in Q1. Turning to consolidate expenses for the company, cost of revenue increased by 100 basis points due to higher cloud and media production costs at Branch TripAdvisor and the D-Leverage at the fork as just. Sales and marketing as a percent of revenue was lower by approximately 300 basis points due to lower direct marketing spend and lower people costs across all.

Michael Noonan: The largest driver of this improvement was lower people costs and direct costs, which more than offset higher cost of sales related to a contract renegotiation that reduce cost in Q1 2023.

Michael Noonan: Turning to consolidate expenses for the quarter.

Michael Noonan: Cost of revenues cost of revenues increased by 100 basis points due to higher cloud and media production costs at <unk> advisor and the deleverage at the FERC has just mentioned.

Michael Noonan: Sales and marketing as a percent of revenue was lower by approximately 300 basis points due to lower direct marketing spend and lower people costs across all segments.

Michael Noonan: Technology and content costs as a percent of revenue were approximately 100 basis points higher, primarily due to higher staff costs at Brand, TripAdvisor, and Viber. G&A expenses as a percent of revenue increased by approximately 100 basis points year-over-year due to the impact of a $10 million accrual related to a potential settlement of a regulatory matter with a vacation rental. Not including this impact, G&A was down by approximately 100 basis points year-over-year due to lower people costs.

Michael Noonan: Technology and content cost as a percent of revenue were approximately 100 basis points higher primarily due to higher people costs at brand Tripadvisor and viator.

Michael Noonan: G&A expenses as a percent of revenue increased by approximately 100 basis points year over year due to the impact of a $10 million accrual related to a potential settlement of regulatory matter with our vacation rentals business.

Michael Noonan: Not including this impact G&A was down by approximately 100 basis points year over year due to lower people costs that branch or devices.

Michael Noonan: Now, to cash and with, operating cash flow was $139 million, and free cash flow was $125 million, driven by the timing of working capital and also normal seasonal trends and deferred merchant payables advisory. We ended the quarter with nearly $1.2 billion of cash in cash equivalents, an increase of $104 million from December 31, 2020. As discussed in our last call, in Q1, we recorded an income tax expense related to the 2014-2016 IRS Transfer Pricing Settlement totaling $46 million. We estimate the net cash outflow will be in the $110 million to $120 million range, and we'll be substantially settled in. This concludes all open IRS Transfer Pricing audits under the Mutual Agreement Procedure, or MAP.

Michael Noonan: Now to cash and liquidity.

Michael Noonan: Operating cash flow was $139 million in free cash flow was $123 million driven by the timing of working capital and also normal seasonal trends and deferred merchant payables in biotech.

Michael Noonan: We ended the quarter with nearly $1 2 billion of cash and cash equivalents, an increase of $104 million from December 31 2023.

Michael Noonan: As discussed in our last call in Q1, we recorded an income tax expense related to the 2014, 2016, IRS transfer pricing settlement, which totaled $46 million.

Michael Noonan: We estimate the net cash outflow will be in the 110 million to $120 million range and will be substantially settled in Q2.

Michael Noonan: This concludes all open IRS transfer pricing audits under the mutual agreement procedure or <unk> AP.

Michael Noonan: Turning to thoughts on Q2, we started the quarter with some unevenness in April as we faced weaker demand trends, some of which we believe were due to the Q1-Q2 timing of the Easter holiday. We also witnessed a wide-reaching update to the Travel SERP that extended for a more prolonged period of time than typical updates that we have seen in the past. This update drove noticeable impact to SEO rankings across categories. While we have progressed at mitigating these changes as we exit the month, we did see an impact in April and early May results. Incorporating these trends into our Q2 outlook, we expect consolidated revenue growth to be flat to up slightly year-over-year. At Branch TripAdvisor, we expect year-over-year declines of approximately single digits, high single digits.

Speaker Change: Turning to thoughts on Q2.

Michael Noonan: We started the quarter with some unevenness in April as we faced weaker demand trends some of which we believe were due to the Q1 Q2 timing of the Easter holiday.

Michael Noonan: We also witnessed a wide reaching update to the travel serve that extended for a more prolonged period of time than typical updates that we have seen in the past.

Michael Noonan: This update drove notable impact to Seo rankings across categories.

Michael Noonan: While we have progressed at mitigating these changes as we exited the month, we did see an impact April and early may results.

Michael Noonan: Incorporating these trends into our Q2 outlook, we expect consolidated revenue growth to be flat to up slightly year over year.

Michael Noonan: At brand Tripadvisor, we expect year over year declines of approximately single digits high single digits.

Michael Noonan: At Viator, we expect revenue growth to step down a couple points below the GBV growth we saw in Q1. The impact of EASTER revenue pulled forward into Q1 from Q2 is estimated to negatively impact Q2 revenue growth by approximately 100 to 200 basis points. At The Fork, we expect a step down in growth sequentially to low to mid-teens year-over-year growth due to Easter timing impacts in Q1. For Q2, we expect consolidated adjusted EBITDA margins to be close to 100 basis points down from last year's comparable, with declining margins at Branch or TripAdvisor offsetting improvement in margins at both Viator and The Fork.

Michael Noonan: At <unk>, we expect revenue growth to step down a couple points below the GBP growth we saw in Q1 the.

Michael Noonan: The impact of Easter revenue pull forward into Q1 from Q2 is estimated to negatively impact Q2 revenue growth by approximately 100 to 200 basis points.

Michael Noonan: At the <unk>, we expect a step down in growth sequentially to low to mid teens year over year growth due to Easter timing impacts between Q1 and Q2.

Michael Noonan: For Q2, we expect consolidated adjusted EBITDA margins to be close to 100 basis points down from last year's comparable period with declining margins at branch from advisor offsetting improving.

Michael Noonan: <unk> and margins at both <unk> and the <unk> versus last year.

Michael Noonan: Turning to Expectations for the Year. Given expected Q2 trends, we're taking a more cautious view for the full year. We now expect consolidated revenue to grow in the low to mid-single digits and Adjusted EBITDA of flat to low signal. I'll take a moment to touch base on what this means for each sector. With a little over 12 months behind us since the launch of our strategy, we're seeing momentum in our operations, and we're driving positive trends in our key metrics, which Matt referenced.

Michael Noonan: Turning to expectations for the year.

Michael Noonan: Given expected Q2 trends were taking a more cautious view for the full year.

Michael Noonan: We now expect consolidated revenue to grow in the low to mid single digits and adjusted EBITDA of flat to low single digit growth.

Michael Noonan: I'll take a moment of touch touch base on what this means for each segment.

Michael Noonan: Starting with brand Tripadvisor.

Michael Noonan: With a little over 12 months behind us since the launch of our strategy, we're seeing momentum in our operational execution and we are driving positive trends in our key metrics, which Matt referenced earlier.

Michael Noonan: We maintain confidence in our transformation agenda, which we believe will meaningfully impact important drivers of our financial profile as we exit 2024 and translate and translate into improved financial performance in 2024. We expect, in the meantime, that 2024 will continue to be a period of transition, as we have previously indicated. As such, we expect revenue declines of mid-single digit.

Michael Noonan: We maintain confidence in our transformation agenda that we believe will meaningfully impact important drivers of our financial profile as we exit 2024, and translate and translate into improved financial performance in 2025.

Michael Noonan: We expect in the meantime that 'twenty 'twenty four will continue to be a period of transition as we have previously indicated.

Michael Noonan: As such we expect revenue declines of mid single digits.

Michael Noonan: While we anticipate stable contribution margins, we expect adjusted EBITDA margins to step back from 2023 levels, given investment in people, marketing, and technology as we execute on our strategic transformation. At Viator, we prioritized the balance between growth, profitability, and market share gains. We continue to expect a step down in revenue growth for the year relative to where we exit 2023, which reflects Tough Growth Comparable 2023, our transition to full-year profitability, and incorporates our outlook for Q2 that we just provided. Finally, at the fork, we expect our profile to reflect our priorities for balanced growth and profit. We continue to expect a step down in revenue growth from last year but to achieve full year profitability.

Michael Noonan: While we anticipate stable contribution margin, we expect adjusted EBITDA margins to step back from 2020 through level given investment in people marketing and technology as we execute on our strategic transformation work.

Michael Noonan: Advisory Board, we're prioritizing the balance between growth profitability and market share gains.

Michael Noonan: We continue to expect a step down in revenue growth for the year relative to where we exit 'twenty <unk>, three which reflects Ah.

Michael Noonan: A tough growth comparable to $1 three or.

Michael Noonan: Our transition to full year profitability and incorporates our outlook for Q2 that we just provided.

Michael Noonan: Finally at the board, we expect our profile to reflect our priority for balanced growth and profitability. We continue to expect a step down in revenue growth from last year, but to achieve full year profitability. This year.

Michael Noonan: We are excited about the year and the opportunities ahead of us. We're confident they are making the right investment to drive sustainable, profitable growth across all of our brands. With that, I'll turn the call back over to Matt.

Michael Noonan: We are excited about the year and the opportunities ahead of US we're confident that we're making the right investments to drive sustainable profitable growth across all of our brands.

Michael Noonan: With that I'll turn the call back over to Matt for a few words.

Matthew Goldberg: Thanks, Mike. Before we wrap up, I'd like to provide a brief update on the work our board's special committee has been doing. You'll recall that in our last earnings call, we noted that TripAdvisor's Board of Directors had formed a special committee to evaluate proposals resulting from Liberty TripAdvisor Holdings' stated intention to engage in discussions with respect to a potential transaction or other alternative. The special committee has determined that at this time. There is no transaction with a third party that is in the best interests of the company and its stock.

Matthew Goldberg: Thanks, Mike before we wrap up I'd like to provide a brief update on the work our board Special Committee has been doing.

Matthew Goldberg: Youll recall that in our last earnings call. We noted that Tripadvisor is board of directors had formed a special committee to evaluate proposals, resulting from Liberty Tripadvisor Holdings stated intention to engage in discussions with respect to a potential transaction or other alternatives. The special Committee has determined that at this time there is no transaction with a third.

Matthew Goldberg: Party that is in the best interest of the company and its stockholders. The special Committee will continue to evaluate proposed alternatives as appropriate there can be no assurance that any transaction will result, and we appreciate your understanding that we will not take any questions on this topic today, we'll provide further updates unless we have something.

Matthew Goldberg: The Special Committee will continue to evaluate proposed alternatives as appropriate. However, there can be no assurance that any transaction will result, and we appreciate your understanding that we will not take any questions on this topic today or provide further updates unless we have something definitive to share. I want to emphasize that the management team and our board of directors are excited about the company's business and prospects and the meaningful value that we can create through continued execution of our plan, as underscored by our solid first quarter results and the initiatives we've discussed today. With that, I'd like to turn the call back to the operator to begin Q&A.

Matthew Goldberg: Definitive to share.

Matthew Goldberg: I want to emphasize that the management team and our board of directors are excited about the company's business and prospects and the meaningful value that we can create through continued execution of our plan as underscored by our solid first quarter results and the initiatives. We've discussed today with that I'd like to turn the call back.

Speaker Change: To the operator to begin Q&A.

Operator: Thank you. One moment while we compile the Q&A roster. The first question comes from the line of Naved Khan of B. Riley Securities. Naved, please go ahead.

Speaker Change: Thank you one moment, while we compile the Q&A roster.

Matthew Goldberg: Okay.

Matthew Goldberg: The first question comes from the line of Nevada Kang of B Riley Securities. Please go ahead.

Naved Khan: Yeah, good morning. And thanks. A couple of questions. Maybe the first one on Viator.

Nevada Kang: Yes, hi, good morning, and thanks.

Nevada Kang: Questions.

Nevada Kang: Yes.

Matthew Goldberg: Maybe.

Nevada Kang: The first one on wireless or so we've seen so now in biotech bookings.

Naved Khan: So we've seen a slowdown in Viator bookings for several quarters now, and we're kind of trying to kind of figure out, you know, in your language about balancing growth and profitability, how much of the slowdown is really around [inaudible] How much of that is related to the implementation of the Digital Market Act in Europe, or maybe if that is unrelated, then have you seen any changes due to the DMA? Great. Hey, Neived, it's Mike. I'll take the first one.

Matthew Goldberg: For many quarters now and trying to figure out.

Matthew Goldberg: Sure.

Matthew Goldberg: Balancing growth and profitability.

Matthew Goldberg: Much of the slowdown is really around.

Matthew Goldberg: From that work.

Matthew Goldberg: There's maybe some other changes you might have met including marketing mix channel mix.

Matthew Goldberg: Or maybe a distribution partner in China that might have.

Matthew Goldberg: Pulling back.

Speaker Change: The second question I have is.

Speaker Change: Is this the only commentary around the.

Matthew Goldberg: Impact from FCO changes.

Matthew Goldberg: How much of that as I alluded from the implementation of.

Matthew Goldberg: The digital marketing market access in Europe.

Matthew Goldberg: Maybe if that is unrelated to then have you seen any changes due to the EMEA. Thank you.

Speaker Change: Great Hey, Mike I'll take the first one yes, so <unk> I think a couple of things happening one on the growth rate.

Michael Noonan: Yeah, so in Vitor, I think a couple of things are happening, you know, one, the growth rate. Listen, we're still pleased with the growth rate; we're still operating in a very large market that is coming online gradually and has very low awareness, right? And these are things we've been saying for some time. And so we're going to continue to try to drive awareness and drive these users to our services. You know, on the growth rate itself, I'd say a couple things. You know, we are seeing, you know, tough comp, right, as we move through the year, particularly the first half.

Michael Noonan: And we're still we're still pleased with the growth rate, we are still operating at a very large.

Michael Noonan: A market that is coming online gradually and.

Michael Noonan: And has very low awareness right and these are things we've been saying for some time and so we're going to continue to try to drive awareness and drive or drive these users to our to our services.

Michael Noonan: On the growth rate itself I would say a couple of things.

Michael Noonan: We are seeing.

Michael Noonan: Tough comp right as we move through the year, particularly the first half those comps do ease as we move into the second half of the year.

Michael Noonan: So those comps do ease as we move into the second half of the year. You know, I think secondly, from a channel perspective, you know, listen, we continue to see very good growth in our core channels, SEM. Matt mentioned earlier that, you know, our app growth is very, very strong right now. But we have seen, as we called out in the call, some weakness in SEO, and that's relating to a lot of the changes that have been happening in the travel SERP. You know, that takes time to work through, as you know, and that has been one of the impacts.

Michael Noonan: I think secondly.

Michael Noonan: From a channel perspective listen we continue to see very good growth in our core our core channels SCM, Matt mentioned earlier that our App growth is very very strong right now.

Michael Noonan: We have seen as we called out in the call some weakness in SCO.

Michael Noonan: And thats related to a lot of the changes that have been happening in the travel search.

Michael Noonan: That takes time to work through as you know.

Michael Noonan: And that has been.

Michael Noonan: When the impact when we look at everything we still feel very good about where we are with <unk> when we look at.

Michael Noonan: You know, when we look at everything, we still feel very good about where we are with Viator. When we look at the metrics on our dashboard around, as I said, growth in our main channels, our pay channels, we look at, you know, conversion rates, we look at our repeat rates, we look at where we are playing in the auction rankings, we look at our brand awareness. We all feel good about all those metrics.

Michael Noonan: The metrics on our dashboard around as I said growth in our main channels. Our pay channels. We look at conversion rates, we look at our repeat rates, we look at where we are clean.

Michael Noonan: In the in the auction rankings, we look at our brand awareness, we all feel good about all of those metrics. So I think the growth rate just more of a factor of some of those things and again as we always have an eye on moving moving and keeping the consistent profitability as well, it's really more of those factors.

Michael Noonan: So I think the growth rate is just more of a factor of some of those things. And again, you know, as we always have an eye on moving and keeping the consistent profitability as well, it's really more of those factors. Yeah, and I think, I just think the growth, you know, you do see some, you know, external demand that's going to be playing out in travel. You know, Viator continues to make, I think, smart marketing investments, and we're very excited about the impact of the brand spend, and we're seeing really good, and particularly in Q1, results on that spend that, you know, give us a full funnel point of view on how to think about that marketing mix, and I think, you know, not only are we driving aided, unaided awareness and consideration, hitting our goals for the year in very short order, very efficient spend, and driving real impact over the last three months.

Speaker Change: Yeah, and I think I actually think the growth.

Speaker Change: Do see some external demand that's going to be playing out in travel.

Speaker Change: <unk> continues to make I think smart marketing investments and we're very excited about the impact of the brand spend and we're seeing really good and particularly in Q1 results on that spend that give us full funnel point of view on how to think about that marketing mix and I think not only are we driving aided unaided awareness and consideration hitting our.

Speaker Change: Our goals for the year in very short order very efficient spend.

Michael Noonan: And driving real impact over the last three months, we believe we're outperforming others in the space on that spend and expect that that performance is going to accelerate.

Michael Noonan: We believe we're outperforming others in the space on that spend and expect that that performance is going to accelerate as we enter the high season, but, you know, you're finding a place where you're, you know, getting the mix right, and thinking about what is the right level of growth to balance those three things, growth, profitability, and market share. So we feel good about the choices that we are making there and on the various channels. Now you asked about Google, and I will just say on Google there's a ton of stuff going on.

Michael Noonan: As we entered the high season.

Michael Noonan: Youre finding a place we've coming off of 49% growth last year and so you are finding a place where we're getting the mix right and thinking about what is the right level of growth to balance those three things growth profitability and market share. So we feel we feel good about the choices that we're making there and the various channels now you asked about Google and I will just add.

Michael Noonan: On Google Theres, a ton of stuff going on.

Matthew Goldberg: You know, there's the SERP change, there is, of course, the implementation in Europe of the DMA, and, of course, there's a whole host of other things that happen in that product all the time. As it relates to the DMA in particular, we've been monitoring it from the start. You know, we're fascinated to see how the European Commission is investigating Google's compliance with the prohibition on self-preferencing, and, of course, our teams are always adapting and adjusting in real time very quickly, and I think they do a very good job to mitigate impacts very quickly, but, you know, we can't directly correlate the DMA changes directly to the impact on us.

Michael Noonan: There is a certain change.

Michael Noonan: There is of course, the implementation in Europe around the DMA.

Michael Noonan: And of course, there is a whole host of other things that happened in that product all the time as it relates to the DMA in particular, we've been monitoring it from the start.

Michael Noonan: We're fascinated to see how the European Commission is investigating.

Michael Noonan: <unk>.

Michael Noonan: Google's compliance with the prohibition on self referencing and of course, our teams are always adapting and adjusting in real time very quickly and I think they do a very good job to mitigate impacts very quickly, but we can't put the DMA changes and directly correlate the impact on us what we do is we try to.

Matthew Goldberg: What we do is we try to optimize our position with that important partner and continue to drive our strategy, which is actually about diversifying and driving our product to get more engagement so more people come directly, download our app, and engage with us and fuel our monetization. So we feel like we're on a very good path there. Thanks, Navit. Thank you. One moment.

Michael Noonan: To optimize our position with that important partner.

Michael Noonan: And continue to drive our strategy, which is actually about.

Michael Noonan: Diversifying.

Michael Noonan: Driving our product to get more engagement, so more people come direct download, our app and engage with us and fuel our monetization. So we feel like we're on a very good path that thanks David.

Speaker Change: Thank you one moment.

Operator: Excuse me, one moment for our next question. The next question comes from the line of Ron Josie of Citi. Ron, please go ahead. Hi, this is Robert. Thanks for taking the question. Two questions on Viagra.

Speaker Change: Excuse me one moment for our next question.

Speaker Change: The next question comes from the line of Ron Josey of Citi. Brian. Please go ahead.

Ron Josie: First, how should we be thinking about the puts and takes on Viagra's take rate in the near term and then, as the platform continues to scale and becomes a larger part of the company, how do you see take rates evolving over the medium term? Yeah, hey, Robert, Mike, I'll take it back and chime in.

Robert: Hi, This is Robert.

Ron Josey: Thanks for taking my questions.

Robert: Two questions on <unk> first.

Ron Josey: How should we be thinking about the puts.

Ron Josey: And takes on Vipers take rate in the near term and then.

Speaker Change: As the platform continues to scale and become a larger part of the company how do you see take rates evolving over the medium term.

Speaker Change: Yeah, Hey, Robert Mike I'll take it back from China.

Michael Noonan: So listen, I think take rates are indicative of a lot of things. They're indicative, I think, of the value that we provide to our suppliers. And our ability as a platform to bring far-reaching users to our suppliers and operators that couldn't reach them otherwise. And we do that with marketing. We do that with sophisticated tools.

Speaker Change: So listen I think take rates are.

Speaker Change: Indicative of a lot of things Theyre indicative I think of the value that we provide to our suppliers.

Speaker Change: And our ability as a platform to bring far reaching users too.

Speaker Change: To our suppliers and operators that couldnt reach them, otherwise and we do that with marketing, we do that with sophisticated tools, we do that with investment to make that process easy and discoverable and so I think the value is.

Michael Noonan: We do that with investment to make that process easy and discoverable. And so I think the value is a tremendous value we give to a lot of small businesses and operators. And I think, first and foremost, that's reflected in that take rate. We also, and I think some of the take rate movements upward, I would say, over the past year have been around a lot of programs, additional programs we have been doing that give even more power to the operator to say, hey, I have more choice and ability to choose around what I want to pay for different advertising options on our platforms.

Speaker Change: Tremendous value, we give to a lot of small businesses and operators and I think first and foremost that's reflected in that take rate.

Speaker Change: Also and I think I think the some of the take rate.

Speaker Change: Movement upward I would say over the past year have been around a lot of programs additional programs we have been doing.

Speaker Change: To give even more power to the operator to say, hey, I have more choice and ability to choose around what I wanted to pay for different advertising options on our platforms and we've seen tremendous uptake in that in that in those products.

Michael Noonan: And we've seen tremendous uptake in those products where our suppliers voluntarily pay us more for different advertising opportunities. And so I think it really just gets back to that value equation that, at the most fundamental level, what we're bringing, the demand we're bringing to the operators, and then their ability to manage their demand on our platform, we feel really good about. And we think that's sustainable, right?

Speaker Change: We're our supplier voluntarily.

Speaker Change: Pay us higher for different advertising opportunities.

Speaker Change: And so I think it really just gets back to that that value equation that at the most fundamental level, what we're bringing the demand we are bringing to the operators and then their ability to <unk> to manage their demand on our platform. We feel really good about and we think that's sustainable we think thats sustainable and we're continuing every day to work on.

Michael Noonan: We think that's sustainable, and we continue every day to work on how we provide value to operators, how we make their business better. We monitor that very closely and are happy with the progress thus far. Yeah, and the only thing I would add is that take rates are not an objective function in and of themselves. We are not targeting a particular take rate. It is an output.

Speaker Change: And how we provide value to the operators, how we make their business better.

Speaker Change: We monitor that very closely and are happy with the progress so far yeah, and the only thing I would add as take rates are not an objective function in and of themselves. We are not targeting a particular take rate. It is an output and it is an indicator of the value that is being delivered and so as accelerate.

Matthew Goldberg: And it is an indicator of the value that is being delivered. And so as Accelerate, the program, has been innovated over time, we're able to give more demand, more control, better insights, competitive intelligence, detailed performance metrics, and the ability to dial up and down participation at any time, which is valuable and is what's really driving those take rates. So that's how we think about it. Yeah, that's helpful.

Speaker Change: The program has been.

Speaker Change: Innovated over time, we're able to give more demand more control better insights competitive intelligence detailed performance metrics and the ability to dial up and down participation at any time, which is valuable and is what's really driving that those take rates. So that's how we think about it.

Michael Noonan: And then, second one, just on supply trends, can you maybe elaborate on recent supply trends across biots? Are there any regions in particular that you call out where you're seeing sharper than expected growth? Any color there would be really helpful.

Speaker Change: Got it that's helpful. And then second one just on Wi Fi can you maybe elaborate on.

Speaker Change: Some supply trends across bioterror or are there any regions in particular that you call hours in charter an unexpected growth any any color there would be really helpful.

Ron Josie: Sorry, Robert, we didn't hear the question. What trends are you asking? We just couldn't hear it clearly. Yep, supply trends, just any color that you're seeing by geography or more broadly would be really helpful there. Look, you know, we don't talk in too terribly much detail at a granular level about our supply trends, but obviously, we have the largest supply available anywhere for experiences in the digital world. And it's, you know, it's a factor of multiples to the next closest.

Speaker Change: I'm sorry, Robert.

Speaker Change: Didn't hear the question what trends you are asking.

Speaker Change: We couldn't hear you clearly.

Speaker Change: Supply chain, so just any color that you're seeing by geography or more broadly would be really helpful. There.

Matthew Goldberg: We don't think that quantity is the final answer. We actually think quality is incredibly important. And so we are very focused on making sure that we have the highest quality supply. And actually, you know, when we look at our ratings and see the way that customers are rating them and coming back, which is typically between four and five stars on average, we think that we actually are the highest quality supply available anywhere on the web.

Speaker Change: Look.

Speaker Change: We don't talk in too terribly much detail at a granular level about our supply trends, but obviously, we have the largest supply available anywhere for experiences and digital world.

Speaker Change: It's a factor of multiples to the next closest we don't think that quantity is the final answer we actually think quality is incredibly important and so we are very focused on making sure that we have the highest quality supply and actually when we look at our ratings and we see the way that.

Matthew Goldberg: And so you combine those two, and then you think about how we're able to provide, you know, coverage globally. And then, of course, by geography, market by market, it really gives us an advantage in our ability to deliver coverage. And so they continue to grow; it continues to be strategic for us, and we are very focused on supply and demand matching. And so we're really excited, and I just want to compliment the teams for the work they do every day to make sure that we are leading the pack. Okay, that's helpful. Thanks a lot. Felicia

Speaker Change: <unk>, our rating them and coming back which is typically between four and five stars on average we think that we actually are the highest quality supply available anywhere.

Speaker Change: On the web and so you combine those two and then you think about how we're able to provide.

Speaker Change: Coverage globally, and then of course by geography market by market. It really gives us an advantage in our ability to deliver coverage. So.

Speaker Change: They continue to grow it continues to be strategic for us and we are very focused on supply demand matching and so we're really excited and I just want to compliment the teams for the work they do everyday to make sure that we are leading the pack.

Speaker Change: Okay. That's helpful. Thanks, a lot.

Speaker Change: Felicia.

Speaker Change: Felicia.

Operator: One moment for your next question. The next question comes from the line of Niall Mitchelson from Bernstein. Niall, please go ahead.

Speaker Change: One moment, Sir your next question.

Speaker Change #100: The next question comes from the line.

Speaker Change: <unk> of Myer Mitchelson from Bern.

Niall Mitchelson: Please go ahead.

Niall Mitchelson: Hi there, thanks. Could you sort of delve into how you plan to tackle the Liberty TripAdvisor structure? You've got a reasonable cash position on your balance sheet. Could you do a buyout of the TripAdvisor stake or maybe a special dividend? Is there something you can do there to sort of help collapse that structure? Yeah, hey, Nials, it's Mike.

Speaker Change: Thanks.

Niall Mitchelson: Could you.

Niall Mitchelson: Delve into how you plan to tackle the Liberty Tripadvisor structure.

Speaker Change: Reasonable cost because its stronger balance sheet could you do a buyout of that stake okay, maybe a special dividend.

Speaker Change #102: Can do that.

Speaker Change: Somehow collapsed that structure.

Michael Noonan: Yeah, I think we're going to avoid kind of diving into those types of questions. Obviously, we heard the announcement we just made about the special committee process. You know, they're still evaluating their alternatives, but that's really all we can really be at liberty to say at this point. And certainly don't want to speculate about what it could or couldn't be.

Speaker Change: Yes.

Speaker Change: <unk>.

Speaker Change: Yes, I think we're going to avoid kind of diving into those types of questions.

Speaker Change: Obviously, we heard the announcement, we just make on the special Committee process.

Speaker Change: They are still evaluating their alternatives, but thats really all we can really at liberty to say at this point.

Speaker Change: And certainly don't want to speculate on what could or could it be.

Matthew Goldberg: Yeah, I mean, the special committee continues to do its work. I think what we are doing is making sure that we have no distractions and that we continue to drive our business forward. And the consistency with which our teams have continued to deliver has really just given me great confidence that, you know, we will deliver on our plans. And, you know, when I think about what we said we were going to do, as we built out a foundation, as we developed our strategies, this is a year where we continue to look at what's working and how we accelerate it, and really round the corner going into the next year in a multi-year strategy situation for TripAdvisor.

Speaker Change: Yes, I mean, the special Committee continues to do its work I think what we are doing is making sure that we have no distraction and that we continue to drive our business forward and the consistency with which our teams have continued to deliver has really just given me great confidence that.

Speaker Change: We will deliver on our plans.

Speaker Change: And when I think about what we said we were going to do as we built out a foundation as we developed our strategies. This is a year, where we continue to look at what's working and how we accelerated and really round the corner going into the next year in our multi year strategy.

Matthew Goldberg: And then, of course, continuing to drive growth and leadership in our growth businesses at Viator and The Fork. So, for us, it's about staying focused, consistent, and continuing to build confidence in where these businesses are going.

Speaker Change: Situation for Tripadvisor, and then of course, continuing to drive growth and leadership in our in our growth businesses advisory or in the <unk>. So for us it's about.

Speaker Change: <unk> focused consistent.

Speaker Change: And continuing to build confidence in where these businesses are going.

Speaker Change: Yes.

Speaker Change: And Mr. Thank you very much.

Operator: One moment for our next question. The next question comes from the line of Doug Anmas of J.P. Morgan. Doug, please go ahead.

Speaker Change: One moment for our next question.

Speaker Change: Yes.

Speaker Change: The next question comes from the line of Doug Anmuth of Jpmorgan, Doug. Please go ahead.

Doug Anmas: Thanks, this is Dae for Doug. Thanks for taking the questions, too. First one, I appreciate the color you guys gave on Viator revenue and understand the Eastern dynamic there. But could you talk a little bit more about how Viator TVP growth has been trending and if that should be accelerating into 2Q and potentially into back-end? Yeah. Hey, Dave, Mike.

Speaker Change: Thanks.

Doug Anmuth: Thanks for taking the questions first one.

Doug Anmuth: I appreciate the color you guys gave on line for revenue.

Doug Anmuth: The eastern dynamic bareboat.

Doug Anmuth: Talk a little bit more firepower TBB growth have been trending.

Doug Anmuth: That should be accelerating <unk> questions back half.

Michael Noonan: We don't guide to GBV, but listen, GBV is obviously going to be a more forward-looking metric. We do think it's going to be trending roughly in line with how we think about revenue growth for the year, right? Obviously, with some timing differences quarter to quarter, as you're well aware of.

Speaker Change #105: Yeah, Hey, Dave Mike.

Speaker Change #103: We don't guide to two.

Speaker Change #101: Two <unk>.

Dave: Well listen.

Doug Anmuth: GB.

Doug Anmuth: <unk> is going to be.

Doug Anmuth: Obviously, a more forward thinking a forward looking metric.

Doug Anmuth: We do think it's going to be trend.

Doug Anmuth: Trending roughly.

Doug Anmuth: In line with how we think about revenue growth for the year right.

Doug Anmuth: Obviously with some timing differences quarter to quarter as youre well aware of so.

Doug Anmuth: I don't think that there is going to be over a longer period of time call. It the full year, a big discrepancy between the GBP growth.

Michael Noonan: So I don't think that there's going to be a big discrepancy between the GBV growth and the revenue growth over a longer period of time, call it the full year, other than normal things around council rates and things like that. So I think that's just the way we're thinking about it. And you just have to remember that we're playing in such an exciting, total addressable market with real, durable, secular trends, and there are multiple levers for growth.

Doug Anmuth: And the and the revenue growth.

Doug Anmuth: Other than normal things around cancel rates and things like that so I think thats just the way we're thinking about it and you just have to remember that we're playing and such.

Doug Anmuth: Exciting total addressable market with real durable secular trends.

Michael Noonan: And just the shift from offline to online and the opportunity for OTAs to step in and structure an unstructured, fragmented market, that opportunity continues. It's ahead of us. There are geographic expansion opportunities. There are category opportunities.

Doug Anmuth: And there are multiple levers for growth in <unk>.

Doug Anmuth: The shift from offline to online and the opportunity for Otas to step in and structure and unstructured fragmented market that opportunity continues. Its ahead of US there are geographic expansion opportunities there are category opportunities and we just really like our positioning in the and the sort of.

Michael Noonan: And we just really like our positioning and what we're seeing from consumers as we continue to look at these cohorts. So that continues to be very exciting. Got it. And as a follow-up, I'm looking at branches for a supplier. Could you remind us what's weighing on clicks on your middle thumb?

Doug Anmuth: What we're seeing from consumers as we continue to look at these cohorts. So that continues to be very exciting for us.

Speaker Change #107: Got it I'll follow up looking at our plans for our suppliers are could you remind us whats weighing on clicks on municipal thumb.

Doug Anmas: In the medium term, how should we think about, I guess, how should the work you're doing to transform this out of the business show up in your branch or provider results? Yeah, so I'll take the first part around, you know, what's weighing on click volume, and then we can talk about the strategy. So I think we've been pretty consistent around, you know, click volume, you know, and this is different than, obviously, traffic, but the click volumes at Brand Trip Advisor. You've got a couple things, right?

Doug Anmuth: The more medium term how should we think about.

Doug Anmuth: I guess hospital work Youre doing to transform the part of the business show up in your perhaps or provides our results.

Speaker Change #104: Yes, I will.

Speaker Change #108: Take the first part around.

Speaker Change #104: What's weighing on them click volume and then we can talk about the strategy piece. So I think we've been pretty consistent around.

Michael Noonan: One, as we think about all the SEO changes that have been made through the years, uh, that puts just kind of secular pressure on those for the clicks in the free channel. When you think about the paid channels, over time, you've had one, more and more paid products, and two, more and more kind of competitive intensity in those, which again puts pressure on that. I'd say a third big point, and we've said this consistently too, which is, you know, a lot of the pressure we put on clicks is done by ourselves, meaning we introduce products or features that may put pressure on actual clicks, but what it does is it results in a higher-quality clicker that comes through.

Speaker Change #104: Click volume.

Speaker Change #104: And this is different than obviously traffic, but the click volumes.

Doug Anmuth: A branch of advisor.

Speaker Change #106: <unk> got a couple of things one as we think about all the Seo changes have been made through the years.

Doug Anmuth: That puts just kind of secular pressure on those on the clicks and the free channel. When you think about the paid channels over time.

Doug Anmuth: One more and more paid products and to more and more kind of competitive intensity in those which again puts puts.

Doug Anmuth: On that I'd say, a third big point, and we've said this consistently too which is a lot of the.

Doug Anmuth: Some of the pressure we put on click is done by herself, meaning we introduced products or features that may put pressure on actual clicks, but what it what it does as a result in a higher qualified quicker that comes through that higher quality clicker.

Michael Noonan: That higher-qualified clicker, you know, should push through higher pricing, and we have seen consistently, and we've been talking about this for some time, while we've had pressure on volumes and clicks, we've had very nice price increases year over year, and we continue to see that even in Q1. So again, some of that is very much strategically born by us. That's the truth.

Doug Anmuth: Should push through higher pricing and we have seen consistently and we've been talking about this for some time, while we've had pressure on volumes click we've had very nice price increases year over year, and we continue to see that even in Q1.

Doug Anmuth: So again some of that is very much strategically born borne by us.

Speaker Change #109: That's the facts I don't Matt alternative, Utah, Yes, and I think you've put your finger on exactly what excites us most about the transformation work that we're doing because we've all known for a long time that meta is not going to be the growth driver of our business that's been clear for nearly a decade now.

Matthew Goldberg: I don't know, Matt, I'll turn it over to you to talk about some of the strategies. Yeah, and I think you've put your finger on exactly what excites us most about the transformation work that we're doing, because we've all known for a long time that meta is not going to be the growth driver of our business. That's been clear for nearly a decade now.

Matthew Goldberg: As we brought that business back coming out of the pandemic, and we realized that it is highly relevant, highly qualified traffic for our partners, and they will continue to lean into it, we've identified a strategy where we reinforce the relevance of the meta business, drive value through product changes, by leveraging data, thinking geography by geography, about how we can be the best partner to our partners in meta, while focusing on a strategy where you can see the results We are now focused on the highest-value users coming to our site, and that's people who come and are members who have five times, rather, I should say ten times, the value of non-members.

Speaker Change #109: As we brought that business back coming out of the pandemic and we realize that it is highly relevant highly qualified traffic for our partners and they will continue to lean into it we've identified a strategy, where we reinforce the relevance of the meta business drive the value through product changes by leveraging <unk>.

Speaker Change #109: Data thinking.

Doug Anmuth: <unk> by geography, how we can be the best partner to our partners in meta while focusing on a strategy that you can see the results in our product and the changes that are happening around how we are looking at engaging travelers. We are now focused on the.

Doug Anmuth: The highest value.

Doug Anmuth: Users coming to our site and Thats people, who come and our members who have five times, rather I should say 10 times the value of non members.

Matthew Goldberg: We're focused on those users who are going to be downloading and using our app and really thinking about how we can diversify and fuel that very high value, in a lifetime value perspective, for those users, where they are engaging, and they're driving monetization through media, where we have not even started the meaningful work to diversify our media business yet. That business was growing at double digits last quarter and last year, and so we can do that as well as become much better at matching supply and demand.

Doug Anmuth: Focused on those users, we're going to be downloading and using our app and really thinking about how we diversify and fuel through that very high value.

Doug Anmuth: Our life time value perspective on those users where they are engaging their driving monetization through media, where we have not even started the meaningful work to diversify our media business yet that business has been growing in double digits last quarter and last year and so we can do that as well as become much.

Doug Anmuth: [laughter] better at matching supply and demand and I think you've seen it in the growth we've delivered in experiences you've heard the proof points that we're talking about a round trip planning being able to match supply and demand and of course as we see a diverse set of travelers coming to us for hotels experiences and restaurants undersea.

Matthew Goldberg: I think you've seen it in the growth we've delivered in experiences, you've heard the proof points that we're talking about around trip planning, being able to match supply and demand, and, of course, as we see a diverse set of travelers coming to us for hotels, experiences, and restaurants, understanding what they're coming to us for and then driving the monetization by being more predictive and leveraging data and analytics to drive that. The proof points that I have laid out consistently and built upon quarter by quarter suggest that that engagement is happening, it's flowing through to higher levels of monetization, and your question is a great one, which is, how does that grow to be the diversified set of revenue streams that's going to drive sustainable growth in the future?

Doug Anmuth: Standing what theyre coming to us for and then driving the monetization by being more predictive.

Doug Anmuth: Leveraging data and analytics to drive that and again the proof points that I have laid out consistently and built upon quarter by quarter suggests that that engagement is happening it's flowing through to higher levels of monetization and your question is a great one which is how does that grow to be.

Doug Anmuth: The diversified set of revenue streams, that's going to drive sustainable growth in the future and I think we've been clear. This is the year, which is.

Matthew Goldberg: And I think we've been clear, this is the year that is the transitional year where we prove out this strategy, and we go into the coming year and really see the impact on our financials. That's why we introduced our KPIs that we're starting to track, and you will hear us talk more about that in the quarters to come. So we're super enthusiastic. We recognize that it may not happen as fast as some out there might wish, but again, just over 12 months into this strategy, we're making good progress. Great. Thank you. I look forward to it. The next question comes from the line of Jed Kelly of Oppenheimer. Jed, please go ahead.

Doug Anmuth: The transitional year, we prove out this strategy and we go into the coming year and really see the impact in our in our financials. That's why we introduced our kpis that we're starting to track and you will hear us talk more about that in quarters to come. So we're super enthusiastic we recognize that it may not happen as fast as some out there might wish but again.

Doug Anmuth: Just over 12 months into this strategy, we're making good progress.

Speaker Change #110: Great. Thank you look forward to it.

Speaker Change #118: One moment for our next question.

Speaker Change #111: The next question comes from the line of.

Doug Anmuth: Kelly of Oppenheimer. Please go ahead.

Jed Kelly: Hey, great. Thanks for taking my question. Just two, if I may, just sort of some of the trends you called out in TripAdvisor Core. Have you seen any change in traveler behavior or any change that kind of implies some weakness in the consumer? And then just on Viator growth, can you help us parse out where we should expect, on a geographical basis, the growth to come from? Is it still going to be in the U.S.?

Kelly: Hey, great. Thanks, Thanks for taking my question just two if I may just sort of some of the trends you called out in Tripadvisor core have you seen any change in travelers behavior or any change that kind of imply like some weakness in the consumer and then just on bias toward growth.

Doug Anmuth: Can you help us parse out where we should expect on a geographic greet geographical basis the growth to come from is it still going to be in the U S are you seeing better traction in Europe. Thank you.

Jed Kelly: Are you seeing better traction in Europe? Thank you. Thanks, Jed, I appreciate the question. I'll take the first one on the consumer.

Matthew Goldberg: As I mentioned, we haven't seen anything in our proprietary data that suggests that behavior is changing. You know, there is healthy demand data suggesting that, you know, the summer high season is when intent to travel is very high. And we've seen, you know, some of those key metrics that we look at hold. Of course, we continue to monitor the macro. And I think we mentioned, we saw some unevenness in April with the start of Q2 around demand trends and a whole bunch of things that are, you know, hard to parse between algorithms and overall macro and, you know, what, what, what, what, you know, some of the things we're actually doing to progress our product that we know can create noise.

Speaker Change #116: Thanks, Chad I appreciate the question I'll take the first one around the consumer as I mentioned, we haven't seen anything in our proprietary data that suggests that behavior is changing.

Speaker Change #119: There is.

Speaker Change #117: Healthy demand data, suggesting that the the summer Ah high season that the intent to travel is very high and we have seen.

Speaker Change #117: Some of those key metrics that we look at hold.

Speaker Change #116: Of course, we continue to monitor the macro and I think we mentioned we saw some unevenness in April.

Doug Anmuth: With the start to Q2 around demand trends and a whole bunch of things that are.

Doug Anmuth: Hard to parse between algorithms and overall macro and.

Doug Anmuth: What what some of the things we are actually doing.

Doug Anmuth: To progress our product that we know.

Doug Anmuth: Kent can create create noise, but I think as we look ahead, and we watch what's happening with inflation and cost of living and how consumers are likely to behave based on their own personal balance sheets and and we also like everyone else to see the same mixed signals and potentially a normalizing growth <unk>.

Matthew Goldberg: But I think as we look ahead, and we watch what's happening with inflation and the cost of living, and, you know, how consumers are likely to behave based on their own personal balance sheets. And, and, you know, and we also, like everyone else, see the same mixed signals and potentially, you know, a normalizing growth environment for travelers. We still see intent to travel high. And the data suggests that the high season is going to be an exciting one, like in the past couple of, Yeah, and question two for Viator growth by geography. So, you know, our primary markets are still, you know, English-speaking markets, and our primary market is North America, and obviously, the US.

Doug Anmuth: <unk> for travelers, we still see intend to travel high and the data suggests that the high season is going to be an exciting one like in the past couple of years.

Doug Anmuth: On question two for biotech growth by Geo. So our primary markets are still English speaking markets and primary market is North America, and obviously the U S. And we remained very focused on growing that market, it's the largest travel market.

Doug Anmuth: Making sure that we continue.

Doug Anmuth: Our wide margin of competitive competitive leadership here and so we're very focused on that.

Matthew Goldberg: And, you know, remain very focused on growing that market. It's a larger travel market, you know, making sure that we continue our wide margin of competitive, competitive leadership here. And so we're very focused on that. And so all our comments really are really more around the North American geo, Jed. Yeah, I think.

Doug Anmuth: And so on.

Doug Anmuth: Our comments really are really more around the north American Geo Jed I think.

Matthew Goldberg: We certainly have the opportunity to think about how we move into other geographies and think deeply about that. And we want to do that in the right way. And, you know, think about that in terms of maintaining a financial profile that is attractive. But that's more of a future state for right now.

Doug Anmuth: We certainly have the opportunity to think about how we move into other geos.

Doug Anmuth: <unk> about that.

Doug Anmuth: To do that.

Doug Anmuth: In the right way.

Doug Anmuth: And.

Doug Anmuth: Think about that.

Doug Anmuth: In terms of maintaining a financial profile that is attractive, but that's more of a future state for right now.

Speaker Change #120: Thank you.

Speaker Change #112: Yes, Thanks Ed.

Operator: Thank you. One moment for our next question. The next question comes from the line of Vince Ciepiel from Cleveland Research Company. Vince, please go ahead.

Speaker Change #113: One moment for our next question.

Speaker Change #121: The next question comes from the line of Cts.

Cts: <unk> from Cleveland Research Company. Please go ahead.

Vince Charles Ciepiel: Thanks so much. I'm curious if you could touch on the cost-saving plan that was lined out for this year. I think most of it will flow through branded TripAdvisor, and then some of the fork as well, that's still in place. And then, based on, you know, the guidance commentary today, it feels like there might be a number of offsets in terms of investment areas. And maybe you could speak to what those are. Yeah, hey, man.

Cts: Thanks, So much I'm curious if you could touch on the cost save plan that was lined out for this year I think most of it flowing through.

Cts: Branded Tripadvisor and then some of the <unk> as well that's still in place and then based on the guidance commentary today. It feels like there might be a number of offsets in terms of investment areas and maybe you could speak to what those are.

Michael Noonan: Yeah, you know, we had basically two programs that we were running under both brands. The $35 million that we cited last year was at Branch TripAdvisor; we had about $10 million in cash at the fork. You know, at the fork, we do expect and are seeing those savings flowing through. And that's an important part of their profit journey this year. You know, at Branch TripAdvisor, I think, you know, we think, I hope we've been very consistent on this is that, you know, we made some very difficult choices last year that really gave us room to execute on our strategy, right?

Cts: Yes.

Cts: Yes.

Cts: Basically two programs.

Cts: Both brands the $35 million that we cited last year was that branch of advisor about $10 million at the for the <unk>.

Cts: Sure.

Cts: We do expect and are seeing those savings flowing through and that's an important part of their their profit journey this year at <unk>.

Cts: <unk> advisor I think.

Cts: We think we've been very consistent on this is that we we we made some very difficult choices last year that really gave us room to execute on our strategy right.

Michael Noonan: And a lot of the cost savings were around, you know, some of our go-to market areas that we talked about in reference in the script, even. And then we really sit back and think about, you know, how do we think about what we need to execute on our strategy.

Cts: And a lot of the cost savings were around.

Cts: Some of our go to market areas that we talked about referenced in the script, even and then we will sit back and think about how do we think about what we need to execute on our strategy.

Cts: And while that those savings.

Michael Noonan: And while those savings gave us the ability to think about redeploying resources and areas that we need to execute on our strategy. So that would be things like data scientists, and engineers, as we are really ramping up our test and learn environment, we're really ramping up product development in ways that I don't think we've seen before here. And so, you know, the strategy, the savings, you know, I think are very much being used in a way through new hires, through backfills, you know, backfills into different roles, into some of the data engineering technology, technology roles.

Cts: Gave us the ability to think about redeploying.

Cts: In areas that we need to execute on our strategy. So that would be things like data scientists engineers as we were really ramping up our test and learn environment, we're really ramping up product development in ways I don't think we've seen before here.

Cts: And so.

Cts: The strategy.

Cts: <unk> I think are very much being used in a way through new hires through backfill backfill into different roles into the some of the data engineering technology technology roles.

Michael Noonan: And, as we've referenced, we are on a journey of migrating more into a cloud-based environment with a more modern tech stack across some of our businesses. And that's some areas we will continue to invest in over time. So, you know, we think it was the right move; it gave us the ability to be flexible and to balance into some areas of people costs that we needed to lean into.

Cts: And as well as we've referenced.

Cts: We are on a journey continue journey of migrating more into a cloud based environment with a more modern tech stack across some of our businesses and that is that some areas. We will continue to invest in over time. So.

Cts: We think it is the right move it gave us the ability to be flexible to.

Cts: Two.

Cts: Balanced into some areas on people costs that we needed to lean into and we are continuing to do that and you're seeing it show up in strategy in the form of obviously the humans that can do the things that we're starting to do that are new and unique but also the ability to generate LTV based marketing programs you have to have your data in your data science.

Michael Noonan: And we will continue to do that. Yeah, and you're seeing it show up in strategy in the form of obviously the humans that can do the things that we are starting to do that are new and unique, but also the ability to generate LTV-based marketing programs. You have to have your data and your data science in place to do that.

Cts: In place to do that and we expect that to deliver.

Cts: Performance for us over time, and as we modernize our tech stack, obviously that allows us to move faster you always want to be as agile and fast moving as you possibly can.

Michael Noonan: And we expect that to deliver performance for us over time. And as we modernize our tech stack, obviously, that allows us to move faster. You always want to be as agile and fast moving as you possibly can. Well, you know, those kinds of investments are required to get to the speed that you want to go at. So, you know, it's something we've thought very carefully about. We didn't do these things haphazardly.

Cts: Those kinds of investments are required to get to the speed that you want to get too so.

Cts: It's something we've thought very carefully about we didn't do these things haphazardly and I think we were very consistent that our goal here was to maintain the flexibility to deliver on this strategy.

Michael Noonan: And I think we were very consistent that our goal here was to maintain the flexibility to deliver on this strategy. Thank you. And maybe one more on the cost side and zooming in a little bit closer to the Viator segment. You know, last year, I think revenue growth was really impressive, but the costs were up about as much. I think it was $240-ish million or something like that. And you almost saw a similar dynamic here in the first quarter, where I think revenue was maybe up $26 million, but total costs were up $23.

Speaker Change #123: Thank you and then maybe.

Speaker Change #123: One more on the cost side and zooming in a little bit closer to the viator.

Speaker Change #123: Segment last year, I think revenue growth is really impressive.

Cts: The costs were up about as much I think it was $248 million or something like that and you also saw a similar dynamic here in the first quarter, where I think revenue was maybe up $26 million at total costs were up 23. So just as we move through the course of this year would you expect cost growth to pace.

Vince Charles Ciepiel: So just as we move through the course of this year, would you expect cost growth to be close to in line with the dollar revenue growth that you anticipate? And I hear you on being profitable for the year, but being profitable can mean a lot of different things for Viator. Yeah, so, you know, a couple things. We are expecting, you know, margins, obviously, to improve, right? So that tells you a bit about the relative growth rate.

Cts: Close to in line with the dollar revenue growth that you envision.

Cts: And I hear you on profitable.

Cts: Profitable for the year, but profitable can mean, a lot of different things for <unk>.

Michael Noonan: Yeah, I think, you know, when you look at that, that analysis, just compare year over year, I think just take a moment to remember, there's a couple things there. It's not all just marketing dollars in terms of performance channels, right? There are other things that we're doing to continue to invest in Viator. That could be more of some of the fixed and discretionary costs, or things like brand marketing, and things like people and products.

Speaker Change #122: Yeah. So a couple of things we are expecting margins, obviously to improve right.

Cts: So that tells you that it is on the relative growth rates.

Cts: Zinc.

Cts: <unk>.

Cts: When you look at that that analysis, just compare year over year I think just to get a remember theres a couple of things there.

Cts: Not all just marketing dollars in terms of the performance channels right. There are other things that we're doing to continue to invest.

Cts: In viator.

Michael Noonan: So, you know, we are continuing on a journey, as Matt talked about, of there's a ton of just product innovation that we're continuing to push at Viator, which we're very excited about. And we are, you know, hiring people and advancing technology in those areas. So there are investments still being made in product supply, and not just all variable costs in marketing.

Cts: That could be a more some of the fixed and discretionary costs.

Cts: Brand marketing.

Cts: And like people.

Cts: So we're continuing on our journey as Matt talked about.

Cts: <unk>.

Cts: There is a ton of just product innovation, we're continuing to push it vital which we're very excited about.

Cts: And we are hiring people in advancing technology in those areas. So there are investments still being made along product supply and not just all variable cost and marketing and I think thats. The point, yes, youll see us continue to be very strategic in our.

Michael Noonan: And I think that's a big part of it. Yeah, you'll see us continue to be very strategic in our approach about how we trade off those various investments. And, you know, we obviously are excited about acquiring new customers and what's happening with our cohort. So we'll do that.

Michael Noonan: We're thinking about the way that we look at the marketing mix over time. But the product investments are also a very exciting area for Viator, right? We're very focused on leveraging the data asset that we have across TripAdvisor Group, where there are 3 billion profiles to leverage. And that'll really help Viator drive personalization and, I think, drive conversion.

Cts: Our approach about how we trade off those various investments.

Cts: We obviously are excited about acquiring new customers and what's happening with our cohort. So we'll do that we're thinking about the way that we.

Matt Goldberg: Look at our marketing mix over time, but the the product investments are also a very exciting area for Avaya tour right, where we're very focused on leveraging the data asset that we have across Tripadvisor group, where there's 3 billion profiles to leverage and that will really help via toward drive personalization and I think drive convert.

Matthew Goldberg: Very focused on the app because of its ability to really drive that kind of loyalty and repeat and conversion. Obviously, focused on a rewards program that rewards repeat behavior, thinking about supply and how we really serve our suppliers and the operators. And then, of course, you know, thinking about how to take advantage of AI and drive that to deliver both productivity and enhancement.

Michael Noonan: <unk> very focused on the app because of it.

Cts: Its ability to really drive that kind of loyalty and repeat and conversion obviously focused on a on a rewards program that rewards repeat behavior.

Cts: Thinking about supply and how we really serve our suppliers and the operators and then of course.

Cts: Thinking about how to how to take advantage of AI and drive that to.

Matthew Goldberg: So there's a lot of excitement there, and I think what you're seeing is that when we say balance, growth, profitability, and market share, we really mean it. We're in this for the long haul, and Viator can and will be a winner in experiences for the long haul. That's helpful. Thank you. Thanks, Vince. One moment for our next question. The next question comes from the line of Tom White of D.A. Davidson & Co. Tom, please go ahead.

Cts: Deliver both productivity and enhancements so theres a lot of excitement there.

Cts: What youre seeing is when we say balanced growth profitability and market share, we really mean it we're in this for the long haul and <unk>.

Thomas Cauthorn White: Can and will be a winner and experiences for the long term.

Thomas Cauthorn White: That's helpful. Thank you.

Thomas Cauthorn White: Thanks Glenn.

Thomas Cauthorn White: One moment for our next question.

Matthew Goldberg: The next question comes from the line of Tom White of D. A Davidson Tom. Please go ahead.

Thomas Cauthorn White: Great. Thanks. Just wanted to follow up on the TravelSERP changes you touched on. Curious whether that's impacting Viator at all this quarter.

Thomas Cauthorn White: Great. Thanks, just wanted to follow up on the travel service changes you touched on curious whether that's impacting by Toradol. This quarter and I guess, how are you guys feeling about kind of the direct traffic mix or mobile.

Michael Noonan: And I guess on Viator, how are you guys feeling about kind of the direct traffic mix or mobile app mix for that asset? How does that kind of rank up relative to maybe Brand TripAdvisor and how do you improve that going forward? Thanks. Yeah, thanks, Tom. It's Mike. I'll take it.

Speaker Change #124: Thanks for that asset.

Mike: How does it upon a ramp up relative to maybe bring tripadvisor and how do you improve going forward.

Michael Noonan: You know, on the SERP changes, so, you know, listen, there's been a lot that's been happening with this, and, you know, in the AHA, some updates, even at the end of last year, so we've been kind of seeing a lot of these changes flowing through. You know, when anything impacts the kind of SEO, you know, it's going to impact our brands who play that, right, and the traffic that comes with that, for sure.

Michael Noonan: Yes.

Speaker Change #125: Thanks, Tom.

Speaker Change #127: Michael I think.

Speaker Change #126: On the on the <unk> changes so listen.

Speaker Change #126: There's been a lot that's been happening.

Michael Noonan: On this end.

Speaker Change #125: And <unk> had some updates even at the end of last year. So we've been kind of seen a lot of these changes flowing through.

Michael Noonan: When anything impacts kind of SCO.

Speaker Change #125: It's going to impact impact our brands, who play that right and look at and the traffic that comes to that for sure.

Michael Noonan: You know, we have great teams that work and do great work to mitigate and work through this, and they're in the process of doing that, and brand supervisors have been doing that for some time, but it takes time, right? And it takes time to readjust when things change like that. So, I would say, yes, the changes have impacted SEO, and I cited that a bit earlier, and we're, you know, again, still very pleased with what we're seeing in other channels. And as you get to what you referenced, you know, our app channel is growing very fast.

Speaker Change #125: We are have great teams that work can do great work to mitigate and work through this and they are in the process of doing that and Graham to provider has been doing is.

Speaker Change #125: Doing that for some time, but it takes time and it takes time to readjust when things change like that so I would say yes.

Speaker Change #125: The changes have impacted SCO.

Speaker Change #125: And I cited that a bit earlier.

Speaker Change #125: And we're again still very pleased with what we're seeing in other channels and to get to your what you referenced.

Speaker Change #125: <unk> channel is growing very fast.

Michael Noonan: Our main SEM channel is still growing fast, and again, that's a big channel for us to acquire new users, right, and start the process of, you know, new users to repeat users. So we still see healthy channels across, a healthy performance across the other channels. But do note, yeah, there are some headwinds in the SEO world. You know, on Google, I gotta just say, we are a partner to them as well. And I wanna say we talk to them all the time.

Speaker Change #125: Our main.

Speaker Change #125: <unk> SCM channel.

Speaker Change #125: It's still growing fast and again, that's a big channel for us to acquire new users right and start the process of new user to repeat user. So we still see healthy channels across a healthy healthy performance across the other channels, but do note. There is there are some headwinds in the Seo.

Speaker Change #125: On Google I got to just say.

Michael Noonan: We are a partner to them as well and I want to say, we talked to them. All the time. So we feel that if you are going to react to how Google is making changes where in a very good position to do it across the group and Thats true to think about how we work with them in the future.

Matthew Goldberg: So we feel that if you're going to react to how Google's making changes, we're in a very good position to do it across the group. And that's true of how we work with them in the future organically for both TripAdvisor and Viator. And I think that's an advantage of the group.

Matthew Goldberg: Organically for both Tripadvisor and Viator and I think that's an advantage of the group you also have to remember on the channels provided tour.

Matthew Goldberg: You also have to remember on the channels for Viator, you know, I said it in my upfront comments. Viator benefits from this direct relationship with TripAdvisor, where more than a third of our many hundreds of millions of travelers each month are coming shopping for experiences. And really leaning into that channel and how to optimize it over time is one that creates, I think, tremendous opportunity and upside for us. And of course, we're also doing a lot of product work and investing to make sure that the app, which is our fastest growing surface, our most loyal surface, we're seeing healthy improvement in app conversion. It's still a smaller base, but again, tremendous upside and headroom for us for the future. And app downloads are growing at a very high rate, and the performance of the app is going well.

Thomas Cauthorn White: So we really, really like that and plan to lean into it. Thanks for the question. Thank you. We've met our time commitment, our time limit. So now I'd like to turn the call back over to Matt Goldberg for closing remarks. Thanks again to everyone for joining us today. We're looking forward to executing on our 2024 plan and continuing to drive our initiatives forward. See you at the next update. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Matthew Goldberg: I've said it in my in my upfront comments.

Speaker Change #125: <unk> benefits from this direct relationship with Tripadvisor, where more than a third of our many hundreds of millions of travelers. Each month are coming shopping for experiences and really leaning into that channel and how to optimize it over time is one that creates I think tremendous opportunity and ups.

Speaker Change #125: Syed.

Thomas Cauthorn White: For us and of course, we're also doing a lot of product work.

Speaker Change #125: And investing to make sure that the App, which is our fastest growing surface. Our most loyal surface, we're seeing healthy improvement in app conversion.

Matthew Goldberg: It's still a smaller base, but again tremendous upside and headroom for us for the future and our App downloads are growing at a very high rate and their performance on the App is going well, so we really like that and plan to lean into it. Thanks for the question.

Thomas Cauthorn White: Thank you, Matt our time commitment our time limit so now I'd like to turn the call back over to Matt Goldberg for closing remarks.

Matthew Goldberg: Thanks, again to everyone for joining us today, we're looking forward to executing on our 2024 plan and continuing to drive our initiatives forward see what the next update.

Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.