"Nothing Is Off The Table"

Tripadvisor (TRIP) Initiation

While most consumers would associate Tripadvisor with its namesake website and mobile app, this statement from CEO Matt Goldberg’s FY24 shareholder letter speaks to how the company’s strategic focus and business mix has evolved over time: “More than half of our revenue now comes from the growth marketplaces in our experiences [Viator] and dining [TheFork] segments, which delivered revenue growth in the mid- and high-teens, respectively, outpacing revenue performance in our legacy offerings...”

This shift has meaningfully accelerated in recent years. The legacy segment, Brand Tripadvisor, which accounted for ~75% of the company’s revenues in FY19, will account for ~40% of the total in FY25e (we do not have access to clean segment financials before FY19 given reporting changes). This mix shift reflects legacy business declines, alongside a >3x revenue increase at Viator since FY19. As such, Viator, Brand Tripadvisor, and TheFork account for ~50%, ~40%, and ~10%, respectively, of Tripadvisor’s FY25e revenues.

Let’s begin by examining what’s going well at Tripadvisor.