Earnings Hub
← Back to Transcript

AI-Generated Summary

TRIP Q3 2025 Earnings Call

Call Details

  • Call Title: TripAdvisor, Inc. Q3 2025 Earnings Call
  • Date: November 6, 2025
  • Management Team:
    • Matt Goldberg, President and CEO
    • Mike Noonan, Chief Financial Officer
    • Angela White, Vice President of Investor Relations

Call Summary

Financial Performance

  • TripAdvisor reported consolidated revenue of $553 million, reflecting a 4% increase year-over-year.
  • Adjusted EBITDA reached $123 million, representing 22% of revenue, exceeding expectations.
  • The Viator segment saw a 15% increase in gross booking value (GBV) to approximately $1.3 billion, with revenue growth of 9% to $294 million.
  • The number of experiences booked through Viator grew by 18%, indicating strong demand.
  • Brand TripAdvisor's revenue declined by 8% to $235 million, attributed to traffic headwinds affecting both free and paid channels.
  • Media and advertising revenue fell by 11% to $36 million, primarily due to traffic challenges.
  • The Fork segment achieved $63 million in revenue, marking a 28% increase year-over-year, with a 22% adjusted EBITDA margin.

Guidance

  • For Q4 2025, TripAdvisor expects consolidated revenue to be approximately flat compared to the previous year, with adjusted EBITDA margins projected between 11% and 13%.
  • Viator anticipates bookings growth of 16% to 18%, while Brand TripAdvisor expects a revenue decline in the low teens.
  • The Fork is expected to grow revenue in the mid-teens, benefiting from currency fluctuations.
  • Full-year consolidated revenue growth is now projected at 3% to 4%, with adjusted EBITDA margins unchanged at 16% to 18%.

Capital Allocation

  • TripAdvisor plans to implement a gross cost savings program of $85 million annually, primarily through a 20% reduction in headcount across various segments.
  • The company aims to optimize its operating model to enhance profitability while managing legacy offerings for stability.
  • Share repurchases are expected to resume in Q4, with approximately $160 million remaining in the authorization.
  • The travel industry continues to show signs of recovery, with TripAdvisor's experiences segment becoming the strategic focus, expected to grow faster than legacy business lines.
  • The global experiences total addressable market (TAM) is projected to reach $350 billion by 2028, indicating significant growth potential.
  • TripAdvisor's unique data and brand trust are seen as competitive advantages in capturing market share in the experiences category.

AI & Technology Initiatives

  • TripAdvisor is focusing on leveraging AI to enhance customer experiences, with plans to launch an AI-native minimum viable product (MVP) in Q4 2025.
  • The company has built data science and machine learning capabilities to improve conversion rates and customer engagement.
  • AI initiatives are expected to streamline operations and improve decision-making for travelers, positioning TripAdvisor as a leader in AI-enabled travel solutions.

Notable Quotes

  • Matt Goldberg, President and CEO: "We believe that our strength to lead the experiences category lies in the differentiated assets across our brands that are hard to replicate."
  • Mike Noonan, CFO: "We will be launching an annualized gross cost savings program of $85 million in Q4 that we intend to execute throughout 2026."
  • Matt Goldberg: "We are building a stronger TripAdvisor group focused on faster growing categories with large TAMs, durable transactional economics, and strong supply."
  • Mike Noonan: "We expect experienced revenue growth on the TripAdvisor point of sale to accelerate as a result of our new operating model."
  • Matt Goldberg: "We believe our first-party data, user-generated content, and decades of trust combined with supplier connectivity give us a unique advantage to lead in the age of AI."
  • Mike Noonan: "We remain focused on improving the quality of our hotels offering and delivering highly qualified incremental demand to our partners."
  • Matt Goldberg: "We think there will be lower barriers to adoption in those source markets where travelers already know and use TripAdvisor."
  • Mike Noonan: "We expect approximately $10 million of the savings to be recognized in Q4 of this year."
  • Matt Goldberg: "Taken together, these actions are not a deprioritization of the TripAdvisor brand."
  • Mike Noonan: "We are excited about our strategic direction as we finish the year and believe that the operating model changes will sharpen our focus."

Q&A Summary

Q: Richard Clark (Bernstein)
Richard inquired about the revenue growth assumptions going forward, particularly regarding the experiences segment and the impact of the new organizational structure.

A: Mike Noonan, CFO
Mike responded that they expect the experiences segment to reaccelerate next year, driven by geographic expansion and category diversification. He emphasized the importance of focusing investments on experiences rather than low-margin growth in the hotel segment.

Q: Nived Khan (B. Riley Securities)
Nived asked about the potential to grow closer to competitors and the balance between growth and margin expansion.

A: Matt Goldberg, CEO
Matt expressed confidence in their ability to reaccelerate growth while expanding margins, citing their leadership position and unique assets in the experiences category.

Q: Ronald Josie (Citi)
Ronald requested insights on new user trends at Viator and the approach to growing supply in new markets.

A: Mike Noonan, CFO
Mike highlighted the importance of disciplined user acquisition and the potential for growth in secondary markets, leveraging TripAdvisor's brand awareness.

Q: Nafisa Gupta (Bank of America)
Nafisa questioned the future of the meta-search business and the potential sale of The Fork.

A: Matt Goldberg, CEO
Matt acknowledged the challenges in the meta business but emphasized its ongoing value. Regarding The Fork, he stated that while they are exploring options, they are focused on maximizing shareholder value.

Q: Jed Kelly (Oppenheimer & Co.)
Jed asked about the go-to-market strategy for experiences and expansion into new regions.

A: Matt Goldberg, CEO
Matt explained that both Viator and TripAdvisor brands will coexist in different markets, with a focus on leveraging TripAdvisor's brand for experiences while optimizing the customer journey across both platforms.

On This Page