experiment and learn, drive that velocity, and then scale the things that work. And we continue to work on that. These are not things that you will see showing up immediately in the P&L, but there are areas where we are getting and many more. bookable and aligned with the plan. So we're out there testing. Again, we've got great volumes to be testing. We're driving rapid experimentation. We're iterating fast based on those insights and really thinking about how that will shift the product. But again, these are early efforts. We will experiment and learn. We feel good about them. And then finally, the question you asked about how we want to work with the AI labs and thought leaders. I think there is a lot we can be doing. We've been as active as maybe anyone signing deals with OpenAI and Perplexity, Microsoft, Amazon, Anthropic. Obviously, there are a few we can't talk about. We recently announced that we're the first to work with Google Gemini. And so we're partnering to integrate our experiences Inventory, you know, that's an area we're very excited about. We think learning there will put us in a good position to serve travelers wherever they may lead. We're also focused on AEO and really making sure our visibility is incredibly high. We get really nice, high intent traffic that's growing very rapidly, but it's still pretty small. and it's dwarfed by where search has been historically. And so these deals are contributing value. They're growing. We look for a balance of licensing revenue traffic. There are ways that we can think about experimenting around product. We have nothing to announce today, but there's a lot of active conversations and we think we're incredibly well positioned with our data content brand. to really work with the AI leaders out there. So again, it's a good setup. It's a very dynamic space. We're doing a lot internally. We're doing a lot natively. And we're doing a lot with partners. And I think you'll see that continue to be something that we talk about over time. All right. Thank you.

One moment for your next question. The next question comes from the line of Nafisa Gupta of Bank of America Securities. Nafisa, please go ahead.

Hi, good morning. Thanks for taking my question. So there are multiple factors which are weighing on third quarter experiences, revenue and bookings, weather-related cancellations, Europe-U.S. demand, lower booking values. Which one among these would you say is The largest issue that you're seeing and is it, do you see it as temporary or is it more structural is what I'd like to understand in these revenue segments.

It's Mike, I'll take that. Yeah, so listen, July, as we said in prepared remarks, was a bit uneven. It was a little bit of continuation. We saw it in June. All of these things, we do believe firmly that they're transitory. and that they are not structural. You know, when we look at particularly in cancel rates is one of the biggest impact. Listen, our business, as we said, is largely a North American Booker origin business. A very large corridor for us is U.S. to Europe. And we can all look at the news headlines and see, you know, really unfortunate the weather and events are happening there. and it's not unsurprising that you may see higher cancellation rates, particularly in the areas that we are so strong, which is guided tours and activities, a lot of them in outdoors. And so we understand that. So when we look at that, we view that very much as transitory and not structural. I think the overall demand environment, again, is weighed on, particularly around all the macro factors we've said. Again, for us though, got to look at it. We have a lot of mix in our business. Continue to see the Viator point of sale growing nicely, as we said. But even then, we believe that that point of sale can grow much faster behind the investments we talked about earlier. And that, you know, that point of sale has been growing, you know, in the mid-teens this year. So, listen, our business, just where it is today, we feel so strongly about the opportunity. As Matt said, it's the highest growth category within travel. It's a long-term growth opportunity. We're working through some macro events. We're not going to stop the investments that we think will produce durable long-term growth ahead of the category. And we're looking forward to getting past some of these macro events into more normalized travel behavior.

Thank you. And the second one, could you also talk more about continued portfolio review and any other strategic opportunities that you are exploring?

I don't know that I heard the question, but you're asking about the portfolio review. And look, we continue to look at every part of the portfolio and determine where do we want to invest, where do we want to pull back and maybe optimize and where might we want to divest? And so we want to catalyze shareholder value ahead. I would say there's never been an option off the table. We want to look at any option that is in the interest of shareholders. And our work is intended to reshape this company to focus more directly on experiences and simplify the portfolio because we understand that the complexity has been you know, something that has not been rewarded. And so we're allocating our resources to enhance the value of the portfolio regardless of our, you know, where we land on the portfolio review and our strategic priorities are designed to create value on their own because we're focused on creating the strongest experiences company as possible and to simplify our organization to do it most effectively.

Thank you so much. Thank you.

Thank you.

As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. One moment for your next question. The next question comes from the line of Doug Anmuth of JP Morgan. Doug, please go ahead.

Good morning. This is for Doug. Thanks for taking the questions. Following up on your comments about I guess broadly looking at the challenges that you're facing right now, do you guys have any line of sight on when those challenges or headwinds might normalize? And is there a way to think about as those challenges normalize or your growth initiatives kick into higher gear, when we can expect to see revenues start to reaccelerate and the margins also beginning to expand again? Thank you.

Yeah, I'll take that. You know, listen, I think we you would expect us to be prudent in our guide as we think about Q3 and the rest of the year, because it's very hard to understand when they do evade. But they will over time as they always have in travel. Listen, when you go back to where we were started the year and we had You know, very high, you know, overall segment kind of mid teens, high teens and viatork in the high 20s in some categories to growth rates. This is where, you know, we are going to get back to. Right. And it really accelerate from there, we believe. because, you know, we don't see anything different in our business other than fighting through some of these things. So, you know, weather impacts, you know, lower priced, you know, people trading down to lower priced tours and attractions, you know, as the macro abates or, you know, people feel better about the discretionary income they may have in their pocket to spend on higher pricings. Those things will come back and it will alleviate the pressure, certainly on the revenue, NGBB and revenue basis. So our overall ambition has not changed. And as Matt talked about in an earlier question, beyond this and expanding into different geos, expanding in different products and different product mix, are all really exciting for us and we believe can take us into a different revenue, you know, help escalate or accelerate from there. So, you know, I think we feel pretty good about the long term.

And let me just speak to the macro because, you know, we all are seeing the same thing, so I'm not going to repeat that. But we also know travelers are going to find a way to travel, and we see travel intent durable for the fall. It's led by the U.S., which seems a bit stronger in terms of intent than perhaps last year. Domestic is picking up some at the expense of international, so we'll have to watch that. We do see it across categories. But those who are thinking about economic uncertainties, actually they indicate they're placing more value on experiences. in a pretty good way. So when they plan their travel, when they plan their budget, they're going to go do that. Now, some of the mix we talked about with price, and it could be that they elect lower price experiences, but we'll be there to soak up that demand for sure. Because what we know is that experiences continues to play an increasingly durable role. And that 80% of travelers say they would cut any other part of travel than experiences, And it's influencing destination choice and travel planning, particularly among younger customers and Americans. And we think we're really well positioned to go take advantage of that. So I do think some of the uneven environment, you know, is going to pass. And we can't predict timing of that, but we can put our business in a position to be there as it does. So we like the resilience we're seeing and we're certainly keeping an eye on trends as we look forward.

I am showing no further questions at this time, so this does conclude the question and answer session. I will now turn the call back over to Matt Goldberg for closing remarks.

Thanks, and thanks for joining us this morning. Before closing out, I just want to briefly welcome our newest board members, Carl Sparks and Laura Bassetto, who joined the board following our June shareholder meeting. Carl and Laura each bring operational and strategic perspectives that will provide insight for our strategic priorities ahead. I also want to congratulate Jeremy Phillips on his appointment to chair. His role as our lead independent director has provided invaluable leadership during key transition periods, and I know we're going to benefit from his continued guidance. And finally, and most importantly, I want to thank all of our employees for the things they do every day to achieve our ambition. We look forward to providing further updates Thank you all.

This concludes today's conference call. You may now disconnect.