- Total revenue rose to €298.3 million for the second quarter of 2017, representing a 67% increase year-over-year
- Total revenue for the six months ended June 30, 2017 also increased 67% to €565.9 million from €338.3 million for the same period in 2016
- Qualified Referrals increased to 196.4 million in the second quarter of 2017 or by 59% year-over-year
- Revenue per Qualified Referral increased by 4% and 5% during the three and six months ended June 30, 2017, respectively, compared to the same periods in 2016
- Adjusted EBITDA increased to €3.2 million in the second quarter of 2017, reflecting an increase of 39% year-over-year. Adjusted EBITDA increased to €22.5 million in the first half of 2017, or 125% year-over-year
- Net loss decreased to €(3.4) million in the second quarter of 2017, from €(49.9) million in the second quarter of 2016, and turned to net income of €4.3 million in the first six months ended June 30, 2017, compared to net loss of €(50.0) million for the same period in 2016
DÜSSELDORF, Germany - August 4, 2017 - trivago N.V. (NASDAQ: TRVG), a global hotel search platform helping travellers find their ideal hotel at the lowest rate, today announced its results for the second quarter of 2017. trivago reaffirms its full-year guidance following another strong quarter, with significant increases in revenue, adjusted EBITDA and positive net income for the six months ended June 30, 2017.
Total revenue increased to €298.3 million in the second quarter of 2017 and €565.9 million in the six months ended June 30, 2017, or by 67% and 67%, respectively, year-over-year. These increases were driven by an increase in advertising spend in both periods.
Referral revenue in the second quarter of 2017 increased significantly to €115.8 million, €120.6 million and €58.6 million, in Americas, Developed Europe and Rest of World (RoW), respectively, or 67%, 45% and 137%, respectively, as compared to the same period in 2016. This increase was due to strong investment in advertising spend and included continued positive revenue effects from the introduction of our relevance assessment, which assesses the quality of users' experience after leaving trivago's website.
Strong referral revenue growth in all segments in the second quarter of 2017 was further positively impacted by reinvestment of profits into advertising spend, particularly in the Developed Europe segment. These drivers also led to solid growth in the six months ended June 30, 2017, with referral revenue increasing 72%, 44% and 134% year-over-year in Americas, Developed Europe and RoW, respectively. The growth in RoW was mainly driven by increased marketing activities in Japan, India and Russia.
At the end of the second quarter of 2017, over 310,000 hoteliers engaged directly with our platform through Hotel Manager, of which over 33,000 subscribed to Hotel Manager Pro. trivago receives a fee for Hotel Manager Pro subscriptions, driving the 74% and 104% growth in Other Revenue in the second quarter and the first six months of 2017, respectively, as compared to the same periods in 2016.
Axel Hefer, CFO, said: "Our focus is on growth and long-term value creation when managing our business. In taking this direction, we have seen strong performance in Q2 2017 as our revenue has increased by 67% year-over-year and our adjusted EBITDA by 39%."
trivago will host a media call on 4 August 2017 at 9:00am EST (3:00pm CEST) to go over the second quarter highlights and Q3 and fiscal year 2017 guidance, and answer media questions. Click here to view the presentation for the call and click here to view the full Q2 2017 Earnings Release.
The details are as follows:
|Access Number||Originating Country||PIN|
|0800 589 30 15||Germany (toll-free)|| |
41 908 107
|+49 69 20 45 72 650||Germany (toll)|
|0800 279 78 20||United Kingdom (toll-free)|
|+44 203 364 52 20||United Kingdom (toll)|
|1877 423 08 35||United States (toll-free)|
For more details, refer to trivago's second-quarter report, which is available on the Securities and Exchange Commission's website (http://www.sec.gov).
For additional information and a media presentation summarizing the results, refer to trivago's investor website (ir.trivago.com).
Definitions of Non-GAAP Measures
We define adjusted EBITDA as net income (loss) plus:
1. provision (benefit) for income taxes,
2. total other (income) expense, net,
3. depreciation of property and equipment, including amortization of internal use software and website development
4. amortization of intangible assets, and
5. share-based compensation
Adjusted EBITDA is a non-GAAP financial measure. A "non-GAAP financial measure" refers to a numerical measure of a company's historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with U.S. GAAP in such company's financial statements. We present this non-GAAP financial measure because it is used by management to evaluate our operating performance, formulate business plans, and make strategic decisions on capital allocation. We also believe that this non-GAAP financial measure provides useful information to investors and others in understanding and evaluating our operating performance and consolidated results of operations in the same manner as our management and in comparing financial results across accounting periods. Our use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results reported in accordance with U.S. GAAP, including net loss. Some of these limitations are:
· Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
· Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
· Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; and
· Other companies, including companies in our own industry, may calculate adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Tabular Reconciliations for Non-GAAP Measures
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization)
|Three months ended||Six Months ended|
|June 30, 2017||June 30, 2016||June 30, 2017||June 30, 2016|
|Net income (loss)||(3.4)||(49.9)||4.3||(50.0)|
|Provision (benefit) for income taxes||0.3||(0.0)||5.0||0.4|
|Income (loss) before income taxes||(3.1)||(49.9)||9.3||(49.6)|
|Amortization of intangible assets||0.4||2.5||2.4||8.8|
Note: Some figures may not add due to rounding.
Forward looking statements
This press release contains certain forward-looking statements. Words, and variations of words such as "believe," "expect," "plan," "continue," "will," "should," and similar expressions are intended to identify our forward-looking statements. These forward-looking statements involve risks and uncertainties, many of which are beyond our control, and important factors that could cause actual events and results to differ materially from those in the forward-looking statements. For additional information factors that could affect our forward-looking statements, see our risk factors, as they may be amended from time to time, set forth in our public filings with the Securities and Exchange Commission. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
About trivago N.V.
trivago N.V. (NASDAQ: TRVG) is a global hotel search platform. Our mission is to "be the traveler's first and independent source of information for finding the ideal hotel at the lowest rate." We are focused on reshaping the way travelers search for and compare hotels, while enabling hotel advertisers to grow their businesses by providing access to a broad audience of travelers via our websites and apps. Our platform allows travelers to make informed decisions by personalizing their hotel search and providing access to a deep supply of hotel information and prices.
Source: trivago N.V.