Naved Khan

Naved Khan from B. Riley Securities questioned the promotional environment in the U.S. and the impact of all-in pricing on platform conversion rates.

Answer

CEO Ariane Gorin noted an increase in supplier-driven promotions, reflecting both partner participation and consumer price sensitivity. She explained that Expedia's own promotional activity is methodically optimized with marketing and loyalty for best returns. Regarding all-in pricing, she stated that while any UX change causes adjustments, the impact was within expectations and is viewed as a positive for travelers. CFO Scott Schenkel clarified that loyalty costs are not in marketing expenses.

Naved Khan of B. Riley Securities questioned recent demand trends, asking about monthly performance in April and May and for more color on the nature of the observed 'consumer softness.' He also asked about the strategic opportunity and potential ROI from social channels like Instagram.

Answer

CEO Ariane Gorin described the new Instagram integration as an innovative trip-planning feature. Regarding demand, she noted that April was softer than March, particularly in the U.S., and that consumers are shifting to lower-priced rate plans (e.g., non-refundable) rather than trading down on hotel star ratings. She stated the company is well-positioned to serve the demand that exists.

Naved Khan inquired about the performance of the one million apartment-style properties added to Vrbo and whether that inventory type is a focus for 2025. He also asked about the sustainability of the strong 25% growth in advertising revenue.

Answer

CEO Ariane Gorin confirmed the new urban inventory contributed to Vrbo's recovery but stated the 2025 supply focus is broader, emphasizing quality aspects like rate flexibility and cancellation policies, not just property count. Regarding advertising revenue, she expressed confidence in its continued growth, citing a long runway for innovation by adding more advertisers to the platform, introducing new ad types, and improving monetization tools.

Naved Khan asked how the 150 basis point improvement in One Key member repeat rates compares to initial expectations and what levers exist to drive it higher. He also inquired about the B2B business pipeline and its ability to sustain strong growth.

Answer

CEO Ariane Gorin expressed satisfaction with the One Key results, highlighting strong engagement from tiered members and successful cross-brand acquisition for Vrbo. She noted they are continuously tuning the program's value proposition and spend. For B2B, she described the market as massive and expects continued 'healthy double-digit' growth, even if the recent elevated rates, partly driven by Asia's recovery, moderate.

Naved Khan inquired about the drivers behind the strong sequential user growth in Western markets versus the flat performance of Opera GX users, and asked about the potential pricing and compute cost model for the upcoming Opera Neon browser.

Answer

Co-CEO Song Lin explained that Opera GX's user numbers were affected by seasonality, as its younger gamer audience is more impacted by summer. He highlighted strong growth in Europe, where AI competition is raising general browser awareness. He noted that the company focuses its marketing efforts on specific product lines rather than broad geographic segments.

Naved Khan inquired about the drivers behind search revenue growing slower than advertising, the slight sequential dip in Opera GX ARPU, and the impact of currency fluctuations on Q1 results.

Answer

Co-CEO Lin Song explained that the company is capitalizing on high user intent, which shifts some monetization from traditional search to broader advertising formats, boosting overall revenue. He attributed the GX ARPU dip to seasonality. CFO Frode Jacobsen added that a strong U.S. dollar created a 5-6 percentage point headwind on year-over-year growth.

Naved Khan inquired about the drivers behind the surprising strength in Search revenue and the status of the Google renewal. He also asked what fueled the strong AdTech growth: new advertisers or regional expansion.

Answer

CFO Frode Jacobsen stated that the 15% annual search growth was very strong and expects the Google partnership renewal in H2 2025. Co-CEO Lin Song attributed the AdTech strength to deepening relationships with major e-commerce partners and strong performance-based execution, rather than regional expansion, which led to larger budget allocations.

Naved Khan inquired about the growth rate and long-term potential of e-commerce advertising revenue, and sought to understand the drivers behind the increased Q4 marketing spend, questioning if it was for specific launches or general marketing.

Answer

CFO Frode Jacobsen explained that e-commerce revenue is growing faster than the overall advertising segment and is becoming a material part of the business. He clarified that the Q4 marketing budget increase is a strategic shift of unused Q3 funds to support the new Opera One R2 and upcoming GX releases. Co-CEO Song Lin added that the strength in e-commerce is driven by its performance-based model, which ensures advertiser satisfaction and signals strong future potential.

Naved Khan from B. Riley Securities asked about the company's organic growth rate after excluding recent acquisitions and inquired about the strategy for physical footprint expansion, comparing M&A opportunities to building greenfield locations.

Answer

CFO Bill Zarella quantified that a recent acquisition in Indiana contributed about 1% to dealer unit growth in the quarter. CEO George Chamoun explained that the core strategy for physical expansion is focused on building capital-efficient greenfield locations, like the one in Houston. While open to M&A at the right price, the primary plan is to build, with a second greenfield location already planned for Q1 of next year.

Naved Khan of B. Riley Securities questioned the drivers behind ACV Capital's 30%+ revenue growth, the strategies for managing associated risks, and the potential for tariffs to cause fleet owners to reduce wholesale listings.

Answer

CFO Bill Zerella addressed the ACV Capital question, highlighting improved risk management capabilities that led to a 50% year-over-year decrease in bad debt expense despite strong revenue growth. CEO George Chamoun added that ACV's current exposure to the commercial/fleet segment is still early-stage, mitigating the direct impact of any potential slowdown in that area. Both executives confirmed that the attach rate for ACV Capital is rising and that off-platform financing is a new growth vector.

Naved Khan asked about the trend in marketplace conversion rates during the fourth quarter and the drivers behind the strong performance and margin expansion in the ACV Transportation business.

Answer

CEO George Chamoun confirmed that Q4 conversion rates were slightly up, providing a helpful tailwind. For transportation, he attributed margin improvement to the early success of bundling vehicle shipments. By grouping cars on trucks already heading in the same direction, ACV can pass savings to dealers while simultaneously improving its own margins. CFO Bill Zerella added that an updated view on transport margin expectations would be provided at the upcoming Analyst Day.

Naved Khan asked whether the strong Q3 conversion rate was driven more by market conditions or platform enhancements, and also inquired about the drivers behind the improvement in transportation revenue margin.

Answer

CEO George Chamoun attributed the strong conversion rate to both favorable market conditions and ACV's ongoing technology and product enhancements that improve vehicle merchandising. For transportation, he credited the record margin to the team's effective use of AI for pricing lanes and the early benefits from bundling vehicle shipments to optimize logistics.

Naved Khan asked about the sustainability and economics of the 'Rate Saver' payments feature and requested an update on the percentage of top-of-funnel traffic now exposed to the Arrow experience.

Answer

CEO Aman Bhutani explained that Rate Saver is a permanent product feature, not a promotion, designed to sustainably reduce merchant costs and is part of a broader strategy to enhance the SaaS component of their commerce offering. He also confirmed that practically all new customers at the top of the funnel are now exposed to the Arrow experience, which allows for better segmentation and engagement.

Naved Khan inquired about the dip in Q1 gross margins, the attach rates for the digital marketing suite, and the potential for that suite within the company's bundling strategy.

Answer

CFO Mark McCaffrey explained that the gross margin was within the expected range of 64% plus or minus 100 basis points, with fluctuations driven by product mix, and directed focus to the expanding normalized EBITDA margin. CEO Aman Bhutani stated that the digital marketing suite is still small with no specific metrics to share, but confirmed it is one of many options being evaluated in the bundling and pricing test pipeline.

Naved Khan asked for clarification on FX impact in the 2025 guide, the potential P&L impact from declining generative AI costs, and whether to expect a return to positive customer growth.

Answer

CFO Mark McCaffrey confirmed a small FX headwind is in the guide and that they expect a return to customer growth. CEO Aman Bhutani noted that they are already judicious with AI costs, so any further price decreases are a net positive for the company and its customers.

Naved Khan asked about the trend for the 40% of paid website subscribers originating from Airo and inquired about the relative size of the domain-first versus website-first customer on-ramps.

Answer

CEO Aman Bhutani clarified that the 40% share has been increasing over recent months and that it's too early to predict a ceiling. He explained that the long-term goal is to unify all on-ramps with the Airo experience, making the distinction between starting points less relevant as all customers will receive a similar comprehensive product discovery journey.

Naved Khan of B. Riley Securities asked about customer retention trends for the AccuTrade solution and inquired about the rollout timing and potential churn risk associated with the new marketplace repackaging initiative.

Answer

CEO Alex Vetter stated that AccuTrade churn is often tied to individual personnel changes at dealerships rather than product dissatisfaction, and that new enterprise-level deals are improving retention by institutionalizing the product. CFO Sonia Jain explained that the marketplace repackaging is rolling out over Q3 and Q4. She clarified it is a value-add initiative creating a new 'Premium Plus' tier, which is expected to mitigate churn risk compared to a pure pricing action.

Naved Khan asked about the dual impact of tariffs on both advertising spend and used car volumes, seeking to understand the relative uncertainty in each area. He also followed up on AccuTrade's growth, questioning if there was a lag in OEM endorsements converting to dealer wins or if churn was a factor.

Answer

CEO Alex Vetter explained that tariffs are pulling consumer demand forward, boosting marketplace traffic, but creating uncertainty in OEM ad commitments, which are shifting to a month-to-month basis. He noted AccuTrade is seeing strong usage growth and inbound interest, with the slower subscription ramp attributed to necessary onboarding and training time. CFO Sonia Jain added that the benefits from recent OEM endorsements are expected to become more visible in Q2 results.

Naved Khan asked about the growth drivers for AccuTrade, focusing on customer retention and the potential impact of new OEM endorsements. He also questioned the key drivers for the guided 100 basis point margin improvement in 2025 and the effect of the DealerClub acquisition on margins.

Answer

CEO Alex Vetter highlighted strong AccuTrade momentum, with rising appraisal volumes and dealer acquisition rates, noting that new OEM endorsements should meaningfully contribute to growth starting in Q2. CFO Sonia Jain stated that while DealerClub integration costs will create some near-term margin pressure, the full-year margin expansion is expected to be a natural benefit of scaling revenue across the platform.

Naved Khan inquired about the drivers of the dealer count rebound in October, the recovery timeline from the CDK outage, and the marketing spend outlook for Q4.

Answer

CEO Alex Vetter confirmed that October's growth was broad-based across Marketplace and all product solutions, indicating a return of sales momentum post-DMS outage. CFO Sonia Jain added that Q3 marketing spend benefited from favorable comps and that Q4 spend could see sequential growth due to typical event seasonality.

Naved Khan from B. Riley Securities asked about the reasons for the quarterly decline in franchise dealers, the factors contributing to the highest prospect close rates since Q2 2021, and the level of dealer engagement with new features like 'Actionable Insights' and 'Motivated Buyer' badging.

Answer

President & CEO Jantoon Reigersman clarified that the dealer count change reflects a strategic focus on network quality over quantity, using a scoring algorithm to retain and add high-performing dealers. He stated this network optimization, combined with more efficient marketing, is driving higher close rates. Regarding new feature adoption, Reigersman described it as an ongoing education process, with engagement varying by a dealer's digital proficiency, and noted it is a key focus of their quarterly dealer service cycle.

Naved Khan inquired about specific product enhancements that could yield competitive advantages and how OEM incentive ad spending might evolve amid new tariffs.

Answer

Jantoon Reigersman (executive) highlighted the use of GenAI for personalized email campaigns as a key product enhancement. Regarding OEM spending, he noted that while it's difficult to predict, OEMs might increase support for vehicle sales to maintain market share, which could benefit TrueCar. However, he emphasized that the overall uncertainty makes forecasting challenging.

Speaking for Naved Khan, Ryan Powell asked about the ongoing trend of rising franchise dealers versus declining independent dealers, the expected impact of the 12-month service program, and the scale of the opportunity in adding new affinity partners.

Answer

Executive Jantoon Reigersman confirmed a continued focus on franchise dealers, stating that independent dealer churn is mainly within the long tail of smaller businesses. He highlighted that the 12-month service program is designed to reduce churn among larger clients and described the affinity partner opportunity as a 'huge' priority for driving high-intent buyers.

Naved Khan from B. Riley Securities asked for an update on the state-level title JVs, the potential for further automation in transaction processing, and the drivers behind the strong mortgage revenue growth.

Answer

CEO Tamir Poleg explained the plan is to open about 12 state-based title JVs, with some already showing positive signs, though he noted the strategy shift caused a temporary dip in title growth. COO Jenna Rozenblat confirmed there are more levers to pull on automation, with a new in-house AI automation team being established in Q3 to accelerate efficiency efforts. Regarding mortgage growth, Tamir Poleg attributed some of the 80% YoY increase to incentives offered to the end client (borrower), not the agent, and expressed confidence in accelerating growth even without further promotions.

Naved Khan of B. Riley Securities inquired about the quantifiable impact of foreign exchange headwinds on Q2 2025 results and the full-year outlook. He also asked about the remaining growth runway for trivago's brand marketing investments.

Answer

CEO Johannes Thomas stated that FX was a -3% headwind to top-line revenue in Q2, and a more significant -7% in the Americas segment. Regarding brand investment, he highlighted that 2024 spend was only 50% of 2019 levels, indicating significant upside potential, and noted that the current strategy is already proving effective with compounding effects.

Naved Khan of B. Riley Securities inquired about the quantifiable impact of foreign exchange (FX) headwinds on Q2 results and full-year guidance, and also asked about the growth runway for brand marketing investments.

Answer

MD & CEO Johannes Thomas quantified the Q2 FX headwind as a -3% impact on top-line revenue, and -7% for the Americas segment specifically. Regarding brand investment, he stated that 2024 spend was only 50% of 2019 levels, indicating a significant runway for growth. He noted that the current strategy is effective, with a 22% increase in spend driving an 18% rise in referral revenue while maintaining a stable ROAS.

Naved Khan of B. Riley Securities inquired about the quantitative impact of foreign currency (FX) headwinds on Q2 results and the full-year outlook, and also asked about the remaining growth runway for brand marketing investments.

Answer

Johannes Thomas, trivago's MD & CEO, quantified the Q2 FX headwind as approximately -3% on total revenue and -7% for the Americas segment. He confirmed the full-year guidance of mid-teens percentage growth accounts for these effects. Regarding brand investment, Thomas stated that the strategy is working effectively, citing a 22% spend increase yielding an 18% referral revenue increase with stable ROAS. He highlighted significant upside potential, noting that 2024 brand spend was only 50% of 2019 levels.

Naved Khan of B. Riley Securities inquired about regional performance trends, particularly in the U.S., and their influence on the full-year guidance. He also asked for commentary on consumer price sensitivity, booking conversions, and an update on the Holisto acquisition.

Answer

Executive Robin Harries confirmed strong double-digit growth continued into April across all regions, supported by healthy ADRs and booking values in Q1. He noted that while some international traffic to the U.S. softened, strong domestic demand compensated for it. Executive Johannes Thomas elaborated on the Holisto acquisition, explaining the strategic goal is to simplify the user experience for less-known brands on trivago's platform, thereby lifting conversion rates. Robin Harries added that the deal's positive top-line impact is not yet reflected in the updated guidance.

Naved Khan of B. Riley Securities inquired about the key drivers needed to accelerate top-line growth to double-digits, plans for brand campaign expansion in 2025, and the reasoning behind the conservative high single-digit full-year guidance despite strong double-digit growth in January.

Answer

Executive Robin Harries explained that growth acceleration will be driven by scaling brand marketing investments and ongoing product improvements that boost conversion rates. He confirmed there are opportunities to expand into new markets and increase spending in existing ones. Executive Johannes Thomas added that the full-year guidance remains at 'at least high single-digit' because it's still early in the year, and noted that Q1 has a more favorable comparison base than subsequent quarters.

Naved Khan inquired about the drivers for the return to positive growth in Q4 2024, asking for specific color on whether the Americas and Developed Europe segments were expected to turn positive. He also requested details on the non-Google performance marketing channels driving traffic in the Rest of World segment.

Answer

Robin Harries, an executive at trivago, confirmed that Q4 was showing positive growth so far, with the Americas and Rest of World segments already positive. He noted that Developed Europe was showing improvement but remained slightly negative. Regarding traffic sources, Harries explained that while Google remains a headwind, positive performance from non-Google channels, such as Yahoo! in Japan and various social media platforms, was more than offsetting it in the Rest of World segment.

Naved Khan inquired about the cost structure of the expanded Etsy Insider loyalty program and asked for a breakdown of mobile GMS growth between new app downloads and improved conversion from existing users.

Answer

CEO Josh Silverman described the company's 'test and learn' approach for Etsy Insider, noting the next version will have better economic guardrails and target their most valuable buyers. CFO Lanny Baker explained that while the app is a better long-term platform, new app users initially spend less than established ones, creating a mix effect. The long-term goal is to increase GMS per buyer and loyalty through the app experience.

Speaking on behalf of Naved Khan from B. Riley Securities, Inc., a representative asked about the seller reaction to the 'Etsy Insider' loyalty program and for any initial takeaways from the beta test.

Answer

CEO Josh Silverman described the program as being in the 'earliest of early days,' with a limited beta launch to learn about user behavior and value propositions. He noted that both buyers and sellers supported the idea of free shipping, with buyers uniquely expressing a desire that sellers should not have to bear the cost.

Naved Khan of B. Riley Securities inquired about the new Yext Scout product, asking about the customer mix on the waitlist, plans for sales headcount expansion, the expected sales cycle length, and the timeline for general availability.

Answer

CEO Mike Walrath explained that the Scout waitlist includes a mix of new prospects, new customers, and existing customers. He stated that Yext has room to grow with its current sales headcount but will be opportunistic. Walrath anticipates a shorter sales cycle for Scout due to its clear value and easier implementation, and noted the product is currently in a controlled, open beta with no firm date for general availability yet.

Naved Khan of B. Riley Securities questioned the financial impact of the Places Scout acquisition, the reasons for the Q4 sequential ARR decline, and the organic drivers for projected ARR growth in fiscal 2026. He also asked if the annual EBITDA guidance was independent of revenue performance.

Answer

CFO Darryl Bond clarified that Places Scout has no material financial impact and that the Q4 ARR decline was primarily due to a $3.5M FX headwind. CEO Michael Walrath added that underlying ARR decline has slowed significantly and that future growth will be driven by improving retention and new product offerings. Walrath confirmed the company's confidence in the EBITDA guide is high due to direct control over expenses and sustainable operational improvements.

Naved Khan of B. Riley Securities requested clarification on the sequential decline in direct ARR in Q3. He also asked for management's perspective on the pace of consumer adoption of new search experiences and Yext's positioning if the market shift is slow.

Answer

CFO Darryl Bond characterized the slight sequential dip in direct ARR as stable, while CEO Mike Walrath added it reflects a focus on long-term customer health, evidenced by improving retention. Walrath expressed strong conviction that the shift to new search experiences is inevitable, as platforms will move from exploration to monetizable 'exploit' queries, increasing the need for Yext's structured data.

Naved Khan of B. Riley Securities asked about the trend of 'boomerang' customers, inquiring about the reasons for their return and the terms of their new contracts. He also sought clarification on the implied Q4 EBITDA margin and questioned the rationale behind the shift from contractual to usage-based models for third-party resellers.

Answer

CEO Mike Walrath attributed the return of 'boomerang' customers to competitors failing to deliver on promises, noting Yext's teams make it easy for them to come back. CFO Darryl Bond clarified the implied Q4 EBITDA margin is around 22%. Regarding the reseller model, Mike Walrath explained the shift offers flexibility to partners who may not want large upfront commitments, which can dampen reported committed ARR but provides more go-to-market options.

Naved Khan from B. Riley Securities asked for CarGurus' outlook on OEM ad spending amid potential industry caution due to tariffs, and requested specific examples of the strategic changes being considered for the CarOffer platform to adapt to market volatility.

Answer

Sam Zales, President and COO, addressed both questions. On OEM ads, he noted Q1 strength was driven by CarGurus' growing, high-intent audience, but acknowledged macro caution exists. Regarding CarOffer, he explained the company is conducting a broad strategic review. Examples include re-evaluating operational workflows (e.g., inspections, transport) and exploring new product-market fits, such as monetizing its unique predictive data insights or developing new seller-focused tools, to create a more flexible and profitable long-term business model.

Naved Khan of B. Riley Securities questioned the impact of recent changes in Google's experiences auctions and asked whether the year-over-year decline in Viator's average booking value (ABV) was due to consumer choice or a mix shift.

Answer

CFO Mike Noonan commented that changes in Google's ad placements are expected and that TripAdvisor remains nimble in utilizing new ad formats. On ABV, he clarified the decline is predominantly a result of a faster-growing mix of third-party bookings, which have lower ABVs but are highly incremental and profitable. CEO Matt Goldberg added that demand for higher-priced experiences has remained strong.

Naved Khan inquired about the potential impact of Airbnb's entry into the experiences market on category growth and Viator. He also sought clarification on Viator's 2025 margin guidance and the drivers of foreign exchange headwinds.

Answer

CEO Matt Goldberg stated that new entrants like Airbnb validate the size of the experiences market and build category awareness, which benefits Tripadvisor's leadership position built on superior supply scale and a large traveler audience. CFO Mike Noonan clarified that the guidance for Viator is for adjusted EBITDA dollars to 'nearly double,' implying margin expansion without a specific target. He explained the FX headwind is primarily from U.S. travelers booking in Europe, where revenue is collected in USD but operators are paid in EUR.

Naved Khan sought clarity on how Tripadvisor plans to balance growth and profitability for Viator in 2025 amidst expectations for double-digit category growth, and asked for details on the new rewards program in the Tripadvisor app.

Answer

CEO Matt Goldberg clarified that while the experiences category is expected to grow strongly, Tripadvisor's focus is on leveraging its assets to enhance the group's overall profit profile through disciplined investment. He described the new rewards program as a key part of the free membership strategy, focusing on earning cash back from bookings rather than discounting, which is driving higher conversion and repeat engagement.

Naved Khan asked for an update on the TikTok partnership's conversion rates and questioned the rationale for the 2025 mid-single-digit EBITDA margin guidance, comparing it to the higher 9% margin achieved in 2023.

Answer

CEO Julia Hartz stated that while the TikTok partnership is an important discovery channel, they are actively working with TikTok's product team to improve conversion by reducing clicks. CFO Anand Gandhi explained the lower 2025 margin guidance is primarily due to a ~600 basis point compression from losing high-margin organizer fee revenue and a ~500 basis point impact from budgeting for an annual performance bonus that was not paid in 2024. He emphasized that financial discipline is preventing a steeper decline and positions the company for future margin expansion.

Naved Khan asked for an update on urban demand regulation, particularly in cities like New York, and inquired about broader platform regulations in Europe, such as the Digital Markets Act (DMA).

Answer

CEO Brian Chesky positioned Airbnb as a partner to cities, citing successes during the Paris Olympics and disaster relief, and framed New York City's ban as a 'cautionary tale' that failed to lower rents. CFO Ellie Mertz stated that the DMA does not apply to Airbnb, consistent with previous commentary.

Naved Khan asked if GenAI could accelerate the shift of bookings from direct hotel websites to online travel agencies like Booking.com and requested an update on partnerships with super apps in Asia.

Answer

CEO Glenn Fogel asserted that Booking Holdings is in a 'pole position' with GenAI due to its significant advantages in resources, data, and capital, which allow it to create a superior, personalized product compared to individual hotels. He clarified that partnerships with Asian super apps are a very small part of the business and not a material driver of its growth in the region.

Naved Khan of B. Riley Securities asked about the monetization of conversation pages, which saw 40% growth, inquiring about the progress and remaining opportunity in monetizing that specific ad inventory.

Answer

COO Jen Wong stated that Reddit is still in the early stages of monetizing conversation placements, including testing ads in comments. She noted that while it's a minority of inventory today, it's a high-intent surface with significant opportunity. The focus is on designing appropriate ad formats that follow consumer experience improvements, rather than simply increasing ad load.

Asked about the assumptions in the guidance (FX, organic growth), the sustainability of cost leverage, the outlook for factoring expense savings, and areas of investment affecting margins.

Answer

The executive explained that guidance accounts for FX headwinds and is based on 100% organic growth. While cost leverage is strong, the company will continue to invest, particularly in B2B, aiming for a normalized 20% EBITDA margin. The strategy to use cash to reduce factoring expenses will continue. They declined to provide quarterly EBITDA guidance but reiterated confidence in the full-year target.