Q2 2019 Earnings Call
Welcome to Tripadvisors second quarter 2019 earnings conference call.
As a reminder, today's conference call is being recorded.
At this time I would like to turn the conference call over to trip advisor as Vice President of Investor Relations Mr. will Lyons. Please go ahead.
Thanks, Howard Good morning, everyone and welcome to our call. Joining me today are CEO , Steve Kaufer, and our CFO constant last night after market close we distributed and filed our second quarter 2019 earnings release, we made available our prepared remarks on our Investor Relations website located at IR Dot trip advisor Dot com in the release you will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call. You'll also find supplemental financial information, which includes certain non-GAAP financial measures discussed on this call as well as other performance metrics.
Before we begin I'd like to remind you that this call may contain estimates and other forward looking statements represent management's views as of today August eight 2019.
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 now here's Steve will share a few thoughts before we open up the call to your question.
Thank you will and good morning, everyone.
To summarize our prepared remarks from last night in the second quarter and first half. The 2019, we drove strong consolidated profit growth grew hotels median platform segment profit and expanded profit margins and delivered rapid experiences and dining segment growth in bookings supply and revenue.
First half results keep us on track to deliver double digit consolidated adjusted EBITDA growth. This year and we're pleased with our 2019 progress towards our revenue growth objectives.
Trip advisor remains the world's largest travel community, we have a powerful global offering built on people powered information in a trusted brand we hope consumers discover explore an experienced their world in unique and compelling ways.
This year, we are operating with enhanced customer focus and we are executing well on a number of initiatives to deepen our customer engagement grow and serve our members and deliver travelers a more holistic and seamless travel experience. We're also laying the foundation for a world class media business to enable partners to capture more value on our platform, which can enable us to further monetize or significant travel influence.
Well now open up the call for questions.
Ladies and gentlemen, if you have a question or comment at this time. Please press Star then one on your telephone keypad.
If your question has been answered or you wish to remove yourself from the queue simply press the pound cake.
Again to ask a question or comment at this time. Please press Star then one on your telephone keypad.
Our first question or comment comes from the line of Deepak Mathivanan from Barclays. Your line is open.
Hey, guys. Thanks for taking the question. So first can you talk about yeah. The strategy behind the media outlets a little bit more in detail the content, particularly on the feed as improving steadily and we could look at that very closely and also we noticed that you're launching someone new AD units recently, although it's still and all the day what should we expect to see both in terms of product and also in terms of monetization efforts over the next few quarters that makes this a more sizable business in the next few say next year, yes.
Sure. Thanks for the question. This is Steve I, we first kind of want to want to remember again more than 400 million unique users and there were almost all on our site looking for a place to go looking for a place to stay looking for a thing to do a place to eat that's incredible amount of influence across the travel ecosystem and you know it is as you know we've monetized through a couple of different vehicles. So far you know our history, but we really don't feel we've tapped into the opportunity to better understand who these folks are so that we can segment them and offer visibility to these users across all of our endemic clients as well as non endemic clients. So you've noticed a couple of different AD units, that's great you'll see more custom pieces throughout the site you will see more native integrated pieces, the fetal beep pardon.
With that but I wouldn't say it would be I wouldn't guess says we are implementing new products I wouldn't guess that it would be a majority of the new pieces, a were going where we find consumers arda. The decision point, where can we inspire them or where can we help or or or our clients inspire them to go to that location and then how can we help select the right hotel the right thing to do for them all that comes down to a new video units that are programmatic capabilities or our claims can buy easier on our platform more AD units across all of our devices and in general a better targeting AD tech stack that that were already in the process of assembling. So this is new people relatively new effort.
So we have a very nice.
Display media business, but it's a nice opportunity for us to dramatically grow that using kind of latest technology, where we hadn't invested as much before.
Compared to some of our peers with our audience size I, we see it relatively.
Yeah, well you see what we believe to be a fantastic opportunity for for doubling is this part of our business in the next three to five years.
Great. Thanks, Dave and then Oh honest.
Was the Documentum revenue trends, you know and I hate to MP segment, a surprise to you at all how how are you thinking about it you know and then well looking looking at it in terms of the back half as well so that you're calling out returning to growth in Fourq yours is that you know primarily from comping through some of the marketing expenses or is there any other puts and takes that going on in that first of all thank you.
Hey, Deepak the profit growth trend in Asian people is not a surprise to us we continue to benefit from the optimizations that we've done in our around our marketing is marketing.
<unk> expenses, we saw continued.
I aggressive profit improvement first half now we have a total of.
31% EBITDA growth in our HM MP segment in that.
Q2 was very close to 30% Mark So that was a very pleasing and very strong for us.
On the revenue side, we had said that we.
We continue to see some weakness in the overall revenue line as a result of the of the marketing pullback or this quarter. We Additionally saw some increased FCO trends as well.
That we that we focused on but if you look ahead for the rest of the year in Q4, we are.
Seeing the segment go back to growth into Q1 for next year, we have fully lapped all the marketing.
The reset that we have done we will be in a position to start growing our paid marketing channels again, and we're forecasting to return to growth on the Hmm P segment in a in that year.
Display is an additional growth driver for the back half. So it's not just comping the paid marketing spend.
The display initiatives that Steve was just talking about will start to.
Kicking some extra contribution to our revenue growth as well towards the end of the year for expectation.
Okay. Thanks Hans.
Thank you. Our next question or comment comes from the line of Lloyd Walmsley from Deutsche Bank. Your line is open.
Thanks, guys two questions. If I can first can you just talk about the comments in the letter on MD segment growth tapering and what might be driving that.
Where are you.
In terms of driving bookings through core trick advisor versus a buyer or is some of the impacts competitive or are you kind of done making.
Making trip advisor kind of fully fully bookable.
And then second one just when you talked about slower demand is that on the consumer side in terms of.
Tell shoppers for the advertiser side both.
Any comments you can share on trends in metasearch pricing options would be great.
Yeah, I like to thank you.
First of all growth for the segment in the in the second quarter was strong was 28%, but excluding the impact of currency was 33%.
The product supply and marketing initiatives that we're driving are progressing very nicely.
We're pleased with that we're making a lot of investments this year that may not necessarily impact revenue growth. This year, but it is setting us up for longer term growth on the platform and as you know a huge.
Market opportunity across both restaurant and experiences that is very untapped.
80% offline on the experience the site.
Well, there's a couple of things this year.
In the revenue trends that we called out before is one is currency, obviously is making an impact.
This half, but also in the next half.
We've called out before that.
We're comping a sum.
Some very high growth in our restaurant products in the restaurant media products business that we built last year, and we're comping against that and particularly the back half of the year that was a major factor last year.
But also we had pretty explosive growth on on the TV platform for experiences last year, which were comping into as well if you dial back from all of that.
We were making huge investments for the for the growth here for them it for the future here.
And.
There is long term sustainable growth that were that were able to capture we believe we're playing to win not everything is focused on optimizing revenue this year.
But we see that there is a long term growth opportunity for for trip advisor.
And then this is Steve to add on when you look at the actual what's going on on trip advisor. There is a we think we're doing a much better job, helping our travelers find the things that they really want to book in advance before they go we feel there is a lot more headroom there were improving our what we call. Our trips functionality. So you can start building more of a trip together that needs to include and will include the abilities to book.
Tours those magical moments that are part of the vacation that Chris has whether they be things sold on on the platform or just the wonderful advice that you can get its really that full package that considered trip.
That allows us to shine, so well and experiences is a vital part of that.
To your second question Lloyd about the hotel met auction.
The trends that we're seeing on the consumer side. So on the supplier side, we've seen consistency.
In the bidding behavior of our partners.
We've seen slower demand in paid marketing, obviously, because we are bidding.
Less aggressively.
On the on those search terms and we're getting fewer paid customers in.
And on the radio side.
The comments that we saw some slowdown.
All right. Thank you.
Thank you. Our next question or comment comes from the line of Mike Olson from Piper Jaffray. Your line is open.
Hey, good morning.
Others in the space continue to talk more and more about getting more aggressive in the activities and experiences segment. Just wondering if you're seeing any evidence of more competition in that category or not really at this point and then also in experience in dining I realize you're pushing for long term growth with continued investment in the segment I believe you said in the past that you think this segment can have a margin profile that's.
More similar to Hften therapy do you still believe that's the case or is there anything structural that would make that more challenging. Thanks.
Hi, Mike. Thanks for the question this is Steve I.
The.
The focus the way we look at the overall experience is market is that its really in the beginning the demand is huge this is a huge new category coming online. We got in really early we have a number of other players that are also in the space, but but the vast vast majority of everything going on is still offline offline in the pre trip phase offline in the in destination as in someone walks up and buy something we truly believe all of that or a huge portion of that will migrate online and some of it will migrate online to to our app others for pre purchase were pre trip activities.
We're doing our best to invest in all the different areas, we need in order to capture more than our fair share of the marketplace. We fully expect all of our competitors to be on the same game plan and the beauty is theres plenty of opportunity for there'd be multiple winners in this category. We think are phenomenal traffic advantage gives us a great opportunity to.
To do extremely well so between traffic between supply between the friction was booking platform we have now.
It all.
All works to your second question on Oh.
On margin profile for the business.
We're not going to be too specifics, but we do believe that the margins in this category you end up looking like hotel margins have have evolved too and so we feel its a.
A very natural opportunity for our marketplace to consolidate the supply and we already have huge portion of the demand and that makes for a great.
Business with a ton of network effects.
Thank you.
Thank you. Our next question or comment comes from the line of Nevada Khan from Suntrust. Your line is open.
Yes.
Thanks, a lot.
Got a couple of questions maybe on the on the hotel side.
As you talk about the appeal.
Headwinds.
If that is the other.
As he had a headwind just limited on the hotel side or.
Is that something you also thing on expenses can you just clarify that for us and then.
It just based on the commentary it seems like.
If I look at the.
And with that sub segment.
You're going to comp.
Advertising costs in Q1 of 2020, so is that when we should expect that segment to kind of stabilize or maybe even touching positive growth, what's the right way to think about that.
Sure. Thanks, David This is Steve I'll take the first Seo related question I, let's start with the context that of course, we get a lot of decile traffic across all of our business units and its a great way for travelers to discover trip advisor and everything we do there is an effect of.
Google and other search engines, moving more and more into the travel space and that's a bit of the hotel headwind, we called out of course, it hits all of our business units.
But we continue to look at the overall positive of how this traffic fine says, we're able to educate them on trip advisor and I and then.
At some point if you want we can go into.
The rest of the initiatives that we're doing to otherwise drive long term loyal behavior of our customer base.
And to your point to have your quest second question not bad.
HM MP and growth in the future. Yes. This year 2019 is obviously a profit focused year, we've been talking about the significant profits we've been driving.
We have progressively throughout 20, a team made improvements in our performance marketing.
We're now in Q1 and Q2.
Flat on our returns there we're happy with our returns we are lapping into some benefit but its a diminishing benefit than.
It will should start helping revenue and our ability to start acquiring paid marketing.
Again and grow that line. So in Q1 of 2020, we'll we'll have fully lapped that.
And we will be to position to start focusing on growth in our paid marketing channels again.
So we've called out in Q4, we are anticipating to go to growth for the for the segment.
And into 2020, we are expecting growth from that segment.
Okay, just a just a quick clarification on that.
I think on the last earnings call you spoke about some weakness in auctions and in the month of April .
Seems like that might have been more.
Our advertising driven you can just give us some more color on how the quarter.
Well on that persist data what are you seeing on your end it seems like based on the reserves came out of the two large OTI is.
Their own business seems to be seeing room range I think is from rent growth in the double digits. What are you seeing on your hands and have those trends improved since April .
Yes, well, we called out as is not from our perspective, an advertiser driven event. It is more about.
The demand side on the one hand us pulling back.
On marketing and increasing efficiency, there, which has been an impact and wasn't impact in Q2.
Plus the ratio.
Challenges that Steve just talked about.
And so but we are going to lap through a lot of those changes throughout the rest of the year and as I just said.
Responded.
We we see us returning to growth for the segment by the end of the year.
Thank you.
Thank you.
Our next question or comment comes from the line of Mark Mahaney from RBC capital markets. Your line is open.
Great. Thank you.
A few questions. One could you. Please talk about demand trends you mentioned in the letter that they were softer than anticipated demand trends a little bit more comments on that would be great second on your membership and loyal customer base.
Base. So that is very interesting you shared some metrics around frequency as well as the ability to generate more revenue than an average user could you talk about what you are doing in order to get more members in order to keep them more engaged.
And some of the initiatives that you have taken and May take.
The rest of the year and then finally on.
It does thank you for sharing the giving some color on double digit growth rate as well as acceleration in Q4 over Q3 and then.
Back half growth being less than 15%, but could you could you talk about how youre thinking on investing and experience a segment how should we think about EBITDA in the back half for that segment as you invest thank you.
Sure.
This is Steve Thanks for the question when we look at at membership we look at the ability.
To sign somebody up have them use our app have them invest a bit in the platform that might be writing a review it might be saving a couple of things to to a trip that they want to take a high. We then take that information and customize our our CRM and our push notifications to make it highly relevant to what the customers looking for and then encourage them to return to the site to either finished the booking process. They were in the middle of or explore another adjacent activity you can imagine when there's someone starting on a flight or hotel, it's a great opportunity to add a thing to do and attraction of private tour was wonderful upsale opportunities that we'll have going down the road the job one for us that that we've been working on is making sure. The messages that we're sending to people are highly relevant we want to make sure that when they come to the site we know more.
About them than than just their name and IP address so that we can give rate recommendations that all drugs a wonderful value proposition for members and you combine that with our activity of.
Of soliciting membership more and you can and what we're happy shares.
We've seen the past four quarters have been consecutive growth in our membership numbers the growth year on year growth of how many new members, we add each quarter.
And we're on a tear for for the rest of the year. That's just one indication of how we get.
From the 400 million monthly you use to a more meaningful set of members who are coming back using us.
Or letting us help them in all of their trips. That's also one aspect of how.
How the demand.
How the demand question gets framed a year from now because we'll have a much more direct relationship with so many more members going forward.
To your second question about the experiences and dining EBITDA trends.
This is obviously a year in which we're making investments for the future.
This is a year in which EBITDA in this segment is coming down year over year.
Fortunately funded by significant EBITDA improvements on the hotel side.
We've said before and we maintain that that although even that will be lower for the segment, we forecast to be positive for the year in this segment and so you're going into the second quarter expect additional to see additional investment in this in this segment.
Thank you, Steve and Ernst and then on on demand trends that'd be great and that's it for me. Thanks.
Well again, we already covered some of the demand trends and then I talked about how membership I didn't talk much about app download, but that will be another.
Aspect that that we're working on and we have seen some nice results in order to move this demand to be more in our control if you're referring to kind of overall travel demand in the industry.
You know it's.
We see a number of different kind of signals out there.
When we look.
When we listen to other companies comments, there's there's a little confusion out there, but we're seeing a reasonably good travel environment at the moment.
So in our prepared remarks, we're not commenting or we're not calling out anything particularly unique in.
In travel, that's causing a big plus or big minus for us. So we're happy with the overall environment and we're executing importing.
We think we're well on our journey.
Okay. That's helpful. Thank you Steve.
Thank you. Our next question or comment comes from the line of Justin Patterson from Raymond James Your line is open.
Great. Thank you I wanted to go back to the AD platform opportunity how should we think through the investment ramp an AD tech infrastructure and the sales force as you build out that's new.
Initiatives and then a big picture one if I can.
I wanted to play Devil's advocate for a second I agree you under index on media revenue versus peers.
However, it's also true that you're more vertical focus focus on travel, whereas a lot of those periods. You cited are more horizontal in nature curious to hear how you think about that and how you think through potential feelings on monetization. Thanks.
Sure. Thanks, Justin I Love the question. So I, we're fortunate enough to have.
Resources internally on the tech side that we were able to shift over to.
It includes some some licensing in some buys not builds but I wouldn't phrase it as a big multi year lift to do this because we already have.
$50 million plus business built on a level of targeting and we just need to extend it.
Make it easier for our clients to buy programmatic and then build some additional AD AD units, particularly video fast growing area.
Where where we just don't have the product offering so I would say.
Small tech live there on the sales force side, we're already very global of course, we need to add some more.
Folks as.
As we reach into different sets of clients that have historically been advertising on our site, but love the demographic that that we represent so we're we're probably pretty well covered in endemic but feel like theres a lot of opportunity outside of travel with with audience targeting.
As evidenced by the many other companies out there that do it pretty well.
Hi, we.
Our obviously pretty good at taking advantage of the vertical nature of our categories and we move into that transaction as we go.
But of all the people that go to trip advisor, so many or purely in the research mode and they just are not ready to buy anything that's a beautiful aspect of our site being funneled from from many others. So.
For the folks that aren't ready to buy how do we monetize the ability to influence in one direction or another.
And that's not a click off to an OTI a that's not a transaction of a private tour.
Thats, a media opportunity to help educate the consumer.
On all the different stuff that that they really should do so I think we have a ton of influence in the category, we have a ton of traffic.
That is looking for something around their trip and the more information we can get about who those folks are the better we can do for overall general targeting.
I hope that was helpful.
That was very helpful. Thank you Steve.
Thank you.
Our next question or comment comes from the line of Jed Kelly from Oppenheimer. Your line is open.
Great. Thanks for taking my question.
Can you just speak on the new brand campaign, what the key message is going to be and then can you provide any update on the amount you spend on television this quarter and then one more if I can any any way you can give us. Some kb is just around the membership opportunity in terms of percentage of may use or how many are converting to members.
Hi.
Thanks for the question, but I'd say that.
I can't I can't really share the details of the brand messaging in part because it's evolving and in part we're not ready to launch this point, but I can tell you. It it will be most likely be focused on aspects that are relatively unique to the trip advisor value proposition versus what the other set of travel players can provide.
We have done a lot of research on our our travelers.
Fairness, we have in different markets and that the the irreplaceable value that we provide to so many travelers so.
The the brand campaign, we expect we'll highlight that delivered in unique and compelling ways across a wide variety of media.
In terms of the spend.
We spent $26 million on brand this quarter, which makes really first half very comparable and spend almost the same as as the year before.
With all these changes that we're thinking about our brand advertising. It does not mean that we're increasing our budgets for it so it shouldn't mean incremental spend now we're even even the following year. We're doing this all within our existing budget.
And should we expect to see the new television commercials this quarter.
No you would.
That would be far too early what we have going for.
For next year is and I want to go back up.
I wouldn't phrase it is just a television.
Effort, because we really do believe that there is a host of different media opportunities available for us and as the brand as the branding rolls out later in the year and the advertising begins probably closer to next year.
Maybe that'll help set your expectations.
Thank you.
Thank you our next question or comment comes from the line of.
We have Lee Horwitz from Evercore ISI Your line is open.
Great. Thanks for taking the question.
Dig in a little bit on the headwinds that you guys had called that obviously, Google has been moving more aggressively into travel products for a long time.
I was wondering what maybe different.
This quarter that warranted, a headwind or impacted your business in a more meaningful way.
Sure.
So.
Backup we actually grew as Seo traffic in 2018, though as I've mentioned many times. It is getting a lot harder due to Google pushing their own products and by the way. We think it's entirely appropriate for regulators to be looking into this practice, but frankly, we're focused on what we can do about it.
This past quarter. They did a few things on the hotel front, which hurt a bit more than usual, but we've been working on a handful of initiatives some of which we've already covered.
To counter that for a while so.
As we pointed out in the prepared remarks member growth App usage building, a stronger direct relationship with the travelers new branding campaign.
These are the sorts of things that we look to drive that deep consumer relationship that.
While we while we love the Google traffic, while we love all all search engine and all all social traffic as well.
Hi, we're looking.
We've been implementing and have more on the.
On the horizon initiatives that enable us to own the relationship in a in a tighter way.
Great. Thanks for the time.
Thank you. Our next question or comment comes from the line of James Lee from Mizuho Securities. Your line is open.
Yes, thanks for taking my questions a couple of questions here just one too.
Dig a little bit deeper about the trends in the second half here.
Last quarter, you mentioned for the hotel and media business are you expecting growth in the second half kind of implying third quarter will be growing.
I Wonder what has changed is it more due to maybe the external environment, where you see demand overall for travel. This week always in one to two internal decision, we want to cut down marketing expenses.
As a result, the revenues are coming down and secondly, also on digital advertising.
I'm sure you guys know, it's obviously, a pretty competitive space and I was wondering.
What new products are coming up that you feel confident that differentiate it and that's the confident that you put in this product include.
Denise fee product advertising dumping talk about last couple of quarters and how should we think about the growth rate for wholesale media business going to 2020. Thanks.
I'll start with the first part of the question. So this year has been a year in which growth in our hotel media platform business.
It has been impacted by our decision to optimize the marketing expenditure and that has been a major impact on the growth rates as we've been calling out.
Throughout as we believe those.
We'll start to abate by the end of the year and fully lapping in the first quarter. So.
From that we're expecting improvement.
We are seeing growth for the first time to return in that segment in the first quarter and then we're well set up for for the period beyond.
Exactly.
Yeah, and so for the immediate growth opportunity as I had mentioned.
New video AD units better programmatic access to specific audience us understanding.
In our own data in conjunction with other data, which.
Well I'll just call it more enhance segmentation, allowing advertisers to buy the specific audience that they want and some of this or I might argue most of this is not actually rocket science is just an area that we have not invested in in the past and so with a new level of focus we've already seen some modest results already rolled out a couple of additional products.
We mentioned there is some other AD products that are in beta now.
Able to sponsor a location or sponsor the discovery of a location and there are just a lot of both untapped media dollars in travel are endemic category and then a wide open opportunity of course, we have competition with that opportunity, but we have a ton of first party data unique to our massive audience at a global scale and that makes us a particularly nice compelling AD buy for for quite a few folks looking for an extremely brand safe in.
Sorry can you repeat the question sorry, yes, any commentary on the revenue growth rate for wholesale media business for 2020.
Yeah. As we said we are expecting to return to growth. It's a little early to be more specific than that we will do that in the quarters to come.
We're obviously have highlighted the various puts and takes there the the return to out.
A more level, playing field around the marketing efficiencies and as well as the.
Ambition, we have in the.
Media space, which we believe we can at least double in the next three to five years.
Okay. Thank you.
Thank you. Our next question or comment comes from the line of Kevin Kopelman from Cowen and company. Your line is open.
Oh, Thanks, a lot I just had a follow up on the H. MMP revenue guide so.
The second quarter was down on the revenues down 4% ex currency.
And.
It looks like you're expecting that to grow year over year in the fourth quarter. So in the interim can you talk about how Q3 is looking for.
Hmm team do you think it will.
It will be better than Q2, or where you see the full quarter of ask him headwinds thinking at similar or worse to Q2. Thanks.
Yeah, without putting too fine a point on it we Q3 will be still a quarter in which we.
We will have significantly lower marketing expense, which will be great for profitability.
But its still a slowing the recovery of revenue growth. So Q3 will be another.
Quarter in which in which we experienced that really in Q4, we see the more meaningful start of the lap of the of the marketing performance and Thats why we call out of Q4.
As the moment, where the segment income growth.
Okay, Great. That's helpful and then and on that Q4, you know the confidence they're returning to growth is that is that really across the segment and how much of that is driven by what you anticipate in the display side for the fourth quarter versus really the display and also the trip advisor branded hotels.
Yes, it's a combination of the.
The increased lapping into the marketing performances that we will see but also we have some exciting.
Things in the works on the media side, and we expect positive impact from that in Q3 and more in Q4.
Okay, great and.
Just one other just quick follow up that I talked about that kind of headwinds.
It sounds like.
Starting or may be exacerbated kind of mid quarter in the second quarter.
Hi.
Have you ever seen as Seo driven revenue down before or is 20 until 2019 would you expect that to be the first year that to happen.
We've seen or growth rates decelerated over the years, but I've kind of been talking about this for for quite a while as Google.
Continues to move into the travel the than the notion.
Comes back to with this trend that's been going on for several years, how we take control of that customer control is perhaps a bad word how we help that customer and encourage the relationships that they continually come back to us and with our growth in membership comes as we mentioned in our published remarks, the improved repeat rate the improved monetization and the improved loyalty to trip advisor and so we're particularly excited about the growth in our membership numbers you should expect more from us in in that store.
And that that helps address a number of the other concerns around the business.
Thank you. Our next question or comment comes from a line of Bret feel from Jefferies. Your line is open.
Good morning. This is Stan for Brian . Thank you for taking my question I was just wondering from a what can.
So far about your brown spent.
Is it helping drive more incremental traffic to the platform or it's mostly shifting through I think from a pay to direct channels.
Hi, Thanks for the question, it's hard for us.
To know that because.
We're blessed with so much traffic and so many of our points of sale in our pure branding campaigns tend to be in our larger markets, it's a little hard to.
We know it seems.
We know we are getting some additional audience, but the purpose of the campaign was really to drive different behavior of the people who are already knew us and so we've seen consistent improvement in conversion on our things to do section in on trip advisor. Some of that is going to be the brand campaign. Some of that is going to be convert on.
On the site.
Bettering implementations better supply teasing out the differences are but we know the brand campaign has been helping on the trip advisor point of sale.
Hi, guys and one more question can you give us some color on international trends any specific markets or regions. So to go out.
Nothing really to to highlight at this point.
We see pretty uniform trends across the globe at this point.
We've called out here.
We called out in the past that we saw some softness, particularly in Europe has started to converge so.
We don't see a particular area and we see actually the upside from some of the initiatives that we are currently deploying in all our markets across the world.
Great. Thank you very much.
Thank you I'm showing no additional questions in the queue at this time I'd like to turn the conference back over to CEO , Steve Kaufer for any closing remarks.
Great well. Thank you everyone for joining the call in closing I want to thank our global travel community because you make the trip advisor you make the trip it much there's a better every day and we will work tirelessly to deliver you great products to help you experienced the world I also want to thank our partners. We will continue to deliver offerings that enable you to drive your business.
And finally I want to thank all the trip advisor media group employees around the world. We have a lot of exciting work ahead.
And I look forward to updating everyone next quarter. Thank you.
Ladies and gentlemen, thank you for participating in today's conference. This concludes the program you may now disconnect everyone have a wonderful day.