Tripadvisor, Inc. Q4 FY2025 earnings call

Management Statement and Operational Highlights

• Revenue and Growth: Tripadvisor achieved record revenue of $1,900,000,000 in 2025, with 10% growth in Experiences and 22% growth at The Fork offsetting declines in legacy segments.
• Strategic Shift: Focus shifted to marketplace opportunities, with marketplace businesses representing 61% of group revenue in 2025. Experiences is expected to contribute over 50% of revenue in 2026.
• AI Initiatives: Launched an AI-native MVP in Q4 2025 to improve personalized recommendations and booking ease, with early data showing better engagement than prior AI efforts.
• Corporate Streamlining: Streamlined corporate structure and are evaluating strategic options for The Fork while focusing on Experiences as the primary growth driver.
• Segment Updates: Experiences saw 18% growth in booked experiences and GBV expansion. The Fork continued growth in B2C and B2B subscription revenue. Hotels and Other focused on profitability amidst traffic and SEO challenges.

Segment Performance

• Experiences: Q4 revenue was $204,000,000, a 10% growth. Full-year revenue was $924,000,000, a 10% growth. Gross booking value (GBV) in Q4 grew 16% to approximately $980,000,000, with full-year GBV reaching over $4,700,000,000. Repeat bookings are the fastest-growing cohort and most profitable customer base.
• The Fork: Q4 revenue was $57,000,000, a 18% growth. Full-year revenue was $221,000,000, a 22% growth. Adjusted EBITDA for The Fork improved to 9% margin for the full year, driven by revenue growth and fixed cost management.
• Hotels and Other: Q4 revenue was $151,000,000, a 15% decline. Full-year revenue was $750,000,000, an 8% decline. Impacted by structural demand headwinds and SEO traffic challenges, but Hotel Meta pricing remained strong due to travel intent delivered.

Guidance

• Full-Year 2026: Expect modest consolidated revenue growth with marketplace businesses representing two thirds of revenue. Experiences revenue expected to be over half of consolidated revenue. Experiences adjusted EBITDA margins to expand 300-400 basis points. The Fork expected low to mid-teens revenue growth. Hotels and Other expected mid to high teens revenue declines.
• Q1 2026: Expected consolidated revenue decline of 3%-5%. Experiences growth in low teens, The Fork growth of 20-22% (including currency benefit), and Hotels and Other declines of 21-23%. Consolidated Q1 adjusted EBITDA margin expected 3%-5%, impacted by Hotels and Other headwinds and Experiences investments.

Risks

• Competitive Intensity: Intense competition in marketing and supply acquisition for Experiences could impact growth and margins.
• AI Execution: Challenges in fully realizing AI's potential in improving user experience and monetization.
• Legacy Headwinds: Structural traffic and SEO challenges in Hotels and Other segments continue to pressure revenue and margins.

Question and Answer

• Q: Eric Sheridan from Goldman Sachs on Experiences growth investments and competitive intensity.

A: Matt Goldberg and Mike Noonan discussed Tripadvisor's strong position in Experiences, unit economics, and marketing efficiency, emphasizing the ability to double down in Experiences with growth and profitability potential.

• Q: Naveed Khan from B. Riley Securities on Experiences margin expansion and SEO.

A: Mike Noonan talked about margin expansion trade-offs, noting repeat bookings as a key driver, and low reliance on SEO for Experiences, focusing on paid channels and repeat cohorts for long-term margin progression.

• Q: Nafeesa Gupta from Bank of America on AI-native MVP and UGC.

A: Matt Goldberg discussed the AI-native MVP's impact on engagement and monetization, and how user-generated content (UGC) is leveraged for personalized recommendations and content value.

• Q: Stephen Ju from UBS on Viator geographic expansion.

A: Matt Goldberg mentioned geographic expansion through supply growth and marketing, targeting local Experiences in new geographies and categories.

• Q: Lloyd Wamsley from Mizuho on Experiences geographic expansion and AI partnerships.

A: Matt Goldberg discussed geo expansion as a combination of supply and marketing, and opportunities in AI partnerships to close the trust gap between planning and booking, leveraging data and scale.

• Q: Jed Kelly from Oppenheimer on Experiences marketing and partnerships.

A: Mike Noonan and Matt Goldberg talked about marketing discipline in Experiences, balancing growth and profitability, and potential partnerships to drive repeat traffic in areas like event ticketing.