TRIP Q1 2025 Earnings

Call Details

• Call Title: TripAdvisor, Inc. Q1 2025 Earnings Call
• Date: May 7, 2025 12:30 PM UTC
• Management Team:
  • Angela White (Vice President of Investor Relations)
  • Matt Goldberg (President and Chief Executive Officer)
  • Mike Noonan (Chief Financial Officer)

Call Summary

Financial Performance

• Consolidated Q1 revenue was $398M, representing 1% growth and approximately 3% growth in constant currency versus Q1 2024.
• Consolidated adjusted EBITDA was $44M, representing 11% of revenue for the quarter.
• Viator booked experiences grew 15% year-over-year and Viator revenue was $156M, up 10% or approximately 12% in constant currency.
• Viator recorded an adjusted EBITDA loss of $18M, representing an 800 basis point improvement in margin versus the prior period.
• Brand TripAdvisor revenue was $219M, a decline of 8% year-over-year, and Brand adjusted EBITDA was $65M, or 30% of revenue.
• Gross booking value (GBV) grew 10% and approximately 12% in constant currency to about $1.1B for the quarter.
• The Fork revenue was $46M, up 12% and 16% in constant currency, with an adjusted EBITDA loss of $3M and a 100 basis point margin improvement.
• Cash flow metrics for Q1 included operating cash flow of $102M and free cash flow of $83M, with cash and cash equivalents of $1.2B at quarter end.

Guidance

• Q2 consolidated revenue growth is expected to be between 5% and 8%, with adjusted EBITDA margin of approximately 16% to 18%.
• Viator Q2 outlook is mid-teens growth in experiences booked, revenue growth of approximately 9% to 11%, and adjusted EBITDA margin in the mid-to-high single digits.
• Brand TripAdvisor is expected to show sequentially improved revenue in Q2 with flat to a 2% decline year-over-year and adjusted EBITDA margins of approximately 26% to 28%.
• The Fork is expected to accelerate revenue growth sequentially to 26% to 28% in Q2, which includes about six percentage points of currency benefit at current rates, with adjusted EBITDA margin in the mid-teens.
• The company is maintaining full-year consolidated guidance of 5% to 7% revenue growth and 16% to 18% adjusted EBITDA margin provided last quarter.
• Management stated they view it as premature to adjust full-year guidance given increased macroeconomic uncertainty and will monitor indicators such as booking windows and cancellation rates.