Tripadvisor, a leading travel platform, recently held its third-quarter 2024 earnings call, shedding light on the company's strategic direction, financial performance, and future outlook. The call, led by Angela White, Vice President of Investor Relations, alongside CEO Matthew Goldberg and CFO Mike Noonan, provided a comprehensive overview of the company's financial results and strategic initiatives.
Financial Performance and Strategic Focus
For the third quarter, Tripadvisor reported $532 million in consolidated revenue, which remained flat compared to the previous year. This stable performance was driven by a healthy growth in Viator and TheFork, offsetting the anticipated headwinds in the Hotel Meta offering. The company's adjusted EBITDA came in at $122 million, demonstrating the profitability of its diverse portfolio.
Matthew Goldberg emphasized Tripadvisor's multiyear journey to transition from optimizing legacy offerings to scaling strategically focused growth drivers. He highlighted the company's ambitious goal to extend its leadership position in the experiences category, which is expected to grow faster than the travel industry as a whole. This strategic focus on experiences is driven by the growing recognition of experiences as a significant part of travel, with Tripadvisor's unique assets and trusted brands positioning the company for success.
Viator's Growth and Innovation
Viator, a segment of Tripadvisor, played a pivotal role in the company's third-quarter performance. Revenue for Viator reached $270 million, growing 10% year-over-year, with gross booking value surpassing $1.1 billion. The segment's adjusted EBITDA stood at $30 million, demonstrating its increasing contribution to the group's overall profitability.
Viator's growth strategy includes balancing investment and scale to drive revenue and profit growth. The company's efforts to expand beyond search and improve the user experience have resulted in higher-than-average growth in bookings from direct and other low-cost channels. Furthermore, Viator's focus on app bookings and repeat customer growth indicates a stable foundation for future growth.
Innovation is also a key focus for Viator, with the company leveraging generative AI to enhance its product and customer experience. This technology is being used to improve customer service, provide better product recommendations, and generate communications for agent follow-up, driving higher conversion and repeat business.
Brand Tripadvisor's Transition and Future Outlook
Brand Tripadvisor, another segment of Tripadvisor, faced challenges in the third quarter, with a year-over-year revenue decline of 12%. Despite this, the company remains optimistic about its future, focusing on innovating around travel planning and guidance to address the pain points faced by travelers. Tripadvisor's unique position to solve these challenges positions it for growth and profitability.
Looking Ahead
Tripadvisor's third-quarter earnings call provided valuable insights into the company's financial performance and strategic initiatives. The company's focus on experiences, innovation, and operational efficiency sets the stage for future growth, particularly in the experiences category, which is expected to outpace the travel industry as a whole. Tripadvisor's strategic transitions and investments in technology, such as generative AI, underscore its commitment to enhancing the user experience and driving growth. As Tripadvisor continues its journey towards transforming the travel industry, investors and analysts will be closely watching its progress and future outlook.