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trivago Delivers Profitable Growth in Q1, After Strong Start to the Year

May 17, 2017 Financial No Comments Email Email

trivago N.V. (NASDAQ: TRVG), a global hotel search platform helping travelers find their ideal hotel at the lowest rate, today announced its first-quarter results and, boosted by a strong start to the year, reaffirmed its full-year guidance that it recently increased.

Revenues grew by 68% to €267.7 million in the first quarter from €159.4 million in the previous year. The growth in Qualified Referrals and Referral Revenue, across all three of the company’s segments – Americas, Developed Europe and Rest of the World (in particular, Japan, India and Russia) – was driven by investment in branding and user experience. These investments also increased the number of hoteliers engaging through trivago with its Hotel Manager platform. Over 280,000 hoteliers were using the platform at end-Q1, of which more than 30,000 paid a subscription for the Hotel Manager Pro offering.

Axel Hefer, CFO, said: “The investments we have made in the business are paying off. In the first quarter, we generated record revenue at a growth rate of 68% while boosting profitability with a strong net income and significant gains in adjusted EBITDA. The improvements in profitability were principally driven by the scaling of the business and our continuous improvements of our technology and algorithms, which we expect to continue to benefit from in the future. We are on track to deliver continued growth in revenue and profit in line with our guidance.”

The number of travelers accessing trivago’s websites and apps continued to grow, with qualified referrals up 60% year-on-year, strengthening trivago’s position as a scalable marketing channel for hotel advertisers, OTAs, hotel chains and independent hotels.

Rolf Schrömgens, CEO and Founder, said: “Not only are we making progress in terms of continuously improving brand awareness, user loyalty, as well as revenue growth and profitability, but we also continue to see strong interest from applicants all over the world, with almost 15,000 applicants in the first quarter interested in becoming part of our entrepreneurial culture. To maintain our momentum and build scale as a truly global business, hiring and investing in our talent base will continue to be a top priority for us.”

Media call

trivago will host a media call on 15 May 2017 at 9:00am EST (3:00pm CET) to go over the first quarter highlights and answer media questions. Click here to download the presentation for the call.

The details are as follows:

Access Number Originating Country PIN
+49 69 20 45 72 650 Germany

914 355 48#

0800 589 30 15 Germany (Toll Free)
1877 423 08 35 United States (Toll Free)

Financial Summary & Operating Metrics (€ millions unless stated)

Three months ended March 31,
Metric 2017 2016 Δ Y/Y
Total Revenue 267.6 159.4 68 %
Americas 102.2 57.8 77 %
Developed Europe 113.5 78.9 44 %
Rest of World 48.6 21.3 128 %
Qualified Referrals (in millions) 177.2 110.5 60 %
Revenue per Qualified Referral (in €) 1.49 1.43 4 %
Operating income 12.5 0.3 n.m.
Net income (loss) 7.7 (0.1 ) n.m.
Return on Advertising Spend 121 % 120 % 110bps
Adjusted EBITDA (1) 19.3 7.7 151 %

n.m. – not meaningful

(1) “Adjusted EBITDA” (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) is a non-GAAP measure. Please see “Definitions of Non-GAAP Measures” and “Tabular Reconciliations for Non-GAAP Measures” below for explanations and reconciliations of non-GAAP measures used throughout this release.

For more details, refer to trivago’s first-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).

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