trivago Marks Turning Point, Gears Up for Accelerated Growth in 2025
trivago (NASDAQ: TRVG) reported positive Q4 2024 financial results, marking a significant turnaround with its first revenue growth since Q1 2023. Total revenue increased 3% to €94.8 million, while Referral Revenue grew 5% to €93.5 million compared to Q4 2023.
The company's net income saw a substantial increase of 104% to €5.1 million, with Adjusted EBITDA growing 52% to €11.1 million. Notable developments include the launch of new advertisement campaigns featuring Brand Ambassador Jürgen Klopp in key markets including the US, UK, and Canada.
The company reported strong double-digit revenue growth across all three segments in January 2025. With a cash balance exceeding €130 million, no long-term debt, and a healthy Adjusted EBITDA margin of around 10% over the last two quarters, trivago positions itself for sustained growth in 2025.
trivago (NASDAQ: TRVG) ha riportato risultati finanziari positivi per il quarto trimestre del 2024, segnando un'inversione significativa con la sua prima crescita dei ricavi dal primo trimestre del 2023. I ricavi totali sono aumentati del 3% arrivando a €94,8 milioni, mentre i ricavi da Referral sono cresciuti del 5% a €93,5 milioni rispetto al quarto trimestre del 2023.
Il reddito netto della società ha registrato un aumento sostanziale del 104%, raggiungendo i €5,1 milioni, con un EBITDA rettificato in crescita del 52% a €11,1 milioni. Tra i principali sviluppi vi è stato il lancio di nuove campagne pubblicitarie con il Brand Ambassador Jürgen Klopp in mercati chiave come Stati Uniti, Regno Unito e Canada.
La società ha riportato una forte crescita a doppia cifra dei ricavi in tutti e tre i segmenti nel gennaio 2025. Con un saldo di cassa superiore a €130 milioni, nessun debito a lungo termine e un sano margine EBITDA rettificato di circa il 10% negli ultimi due trimestri, trivago si posiziona per una crescita sostenuta nel 2025.
trivago (NASDAQ: TRVG) reportó resultados financieros positivos para el cuarto trimestre de 2024, marcando un cambio significativo con su primer crecimiento de ingresos desde el primer trimestre de 2023. Los ingresos totales aumentaron un 3% alcanzando los €94,8 millones, mientras que los ingresos por referencia crecieron un 5% hasta €93,5 millones en comparación con el cuarto trimestre de 2023.
El ingreso neto de la empresa experimentó un notable aumento del 104%, alcanzando €5,1 millones, mientras que el EBITDA ajustado creció un 52% hasta €11,1 millones. Los desarrollos notables incluyen el lanzamiento de nuevas campañas publicitarias con el Embajador de Marca Jürgen Klopp en mercados clave como Estados Unidos, Reino Unido y Canadá.
La empresa reportó un fuerte crecimiento de ingresos de dos dígitos en los tres segmentos en enero de 2025. Con un saldo de caja que supera los €130 millones, sin deuda a largo plazo y un saludable margen EBITDA ajustado de alrededor del 10% durante los últimos dos trimestres, trivago se posiciona para un crecimiento sostenido en 2025.
트리바고 (NASDAQ: TRVG)는 2024년 4분기 긍정적인 재무 실적을 보고하며, 2023년 1분기 이후 처음으로 수익 성장을 기록하는 중요한 전환점을 맞이했습니다. 총 수익은 3% 증가하여 9,480만 유로에 달했으며, 추천 수익은 5% 증가하여 9,350만 유로에 이르렀습니다.
회사의 순이익은 104%의 큰 증가율을 기록하여 510만 유로에 도달했으며, 조정된 EBITDA는 52% 증가하여 1,110만 유로에 이르렀습니다. 주요 개발 사항으로는 미국, 영국, 캐나다 등 주요 시장에서 브랜드 앰배서더인 위르겐 클롭을 포함한 새로운 광고 캠페인의 론칭이 있습니다.
회사는 2025년 1월에 모든 세그먼트에서 두 자릿수의 수익 성장을 보고했습니다. 1억 3천만 유로를 초과하는 현금 잔고와 장기 부채가 없으며, 지난 두 분기 동안 약 10%의 건강한 조정 EBITDA 마진을 보유하고 있는 트리바고는 2025년에 지속 가능한 성장을 위해 자신을 자리 잡고 있습니다.
trivago (NASDAQ: TRVG) a annoncé des résultats financiers positifs pour le quatrième trimestre de 2024, marquant un tournant significatif avec sa première croissance des revenus depuis le premier trimestre de 2023. Le chiffre d'affaires total a augmenté de 3 % pour atteindre 94,8 millions d'euros, tandis que les revenus de parrainage ont progressé de 5 % pour atteindre 93,5 millions d'euros par rapport au quatrième trimestre de 2023.
Le revenu net de l'entreprise a connu une augmentation substantielle de 104 %, atteignant 5,1 millions d'euros, avec un EBITDA ajusté en hausse de 52 %, s'élevant à 11,1 millions d'euros. Parmi les développements notables, le lancement de nouvelles campagnes publicitaires mettant en vedette l'ambassadeur de la marque Jürgen Klopp sur des marchés clés, notamment les États-Unis, le Royaume-Uni et le Canada.
La société a annoncé une forte croissance à deux chiffres de ses revenus dans les trois segments en janvier 2025. Avec un solde de trésorerie supérieur à 130 millions d'euros, aucune dette à long terme et une marge EBITDA ajustée saine d'environ 10 % au cours des deux derniers trimestres, trivago se positionne pour une croissance durable en 2025.
trivago (NASDAQ: TRVG) berichtete über positive Finanzzahlen für das vierte Quartal 2024 und markiert damit einen bedeutenden Wendepunkt mit dem ersten Umsatzwachstum seit dem ersten Quartal 2023. Der Gesamterlös stieg um 3 % auf 94,8 Millionen Euro, während die Empfehlungsumsätze um 5 % auf 93,5 Millionen Euro im Vergleich zum vierten Quartal 2023 anwuchsen.
Der Nettogewinn des Unternehmens verzeichnete einen beträchtlichen Anstieg von 104 % auf 5,1 Millionen Euro, während das bereinigte EBITDA um 52 % auf 11,1 Millionen Euro wuchs. Erwähnenswerte Entwicklungen sind der Start neuer Werbekampagnen mit dem Markenbotschafter Jürgen Klopp in wichtigen Märkten wie den USA, dem Vereinigten Königreich und Kanada.
Das Unternehmen meldete im Januar 2025 ein starkes zweistelliges Umsatzwachstum in allen drei Segmenten. Mit einem Kassenbestand von über 130 Millionen Euro, keinen langfristigen Schulden und einer gesunden bereinigten EBITDA-Marge von etwa 10 % in den letzten zwei Quartalen positioniert sich trivago für ein nachhaltiges Wachstum im Jahr 2025.
- First revenue growth since Q1 2023 with 3% increase to €94.8M
- Net income grew 104% to €5.1M in Q4 2024
- Adjusted EBITDA increased 52% to €11.1M
- Strong cash position of €130M+ with no long-term debt
- Double-digit revenue growth across all segments in January 2025
- Full-year 2024 revenue declined 5% to €460.8M
- Full-year 2024 Adjusted EBITDA decreased 81% to €10.2M
- Full-year 2024 net loss of €23.7M
Insights
trivago's Q4 2024 results mark a pivotal turning point, delivering the first quarterly revenue growth since Q1 2023. The 3% revenue increase to €94.8M and impressive 104% net income growth to €5.1M signal a successful execution of the company's turnaround strategy.
The improvement in Return on Advertising Spend (ROAS) to 162.9% (up 7.5 percentage points year-over-year) is particularly noteworthy, indicating enhanced marketing efficiency. This metric suggests that trivago's strategic investment in new brand ambassador Jürgen Klopp and targeted advertising campaigns in key markets is yielding positive returns.
The company's financial position is robust, with over €130M in cash and zero long-term debt. The 52% growth in Adjusted EBITDA to €11.1M and a healthy 10% EBITDA margin demonstrate strong operational execution and cost management. While the full-year 2024 shows a 5% revenue decline, the Q4 results and January 2025's double-digit growth across all segments suggest the company has successfully reset its growth trajectory.
The contrast between quarterly improvement and annual performance metrics provides valuable context: while 2024 saw an overall revenue decline, the strong Q4 performance and January 2025 results indicate the company has effectively addressed its challenges and positioned itself for sustainable growth. The healthy ROAS and improved profitability metrics suggest trivago can maintain this momentum while managing costs effectively.
Exhibit 99.1
Operating and Financial Review
DÜSSELDORF, GERMANY - February 5, 2025 – trivago N.V. (NASDAQ: TRVG) (the “Company”, “we,” “us,” “our,” or “trivago,”) announced financial results for the fourth quarter ended December 31, 2024.
Highlights:
- Total revenue grew
3% to€94.8 million , with Referral Revenue growing5% to€93.5 million during the fourth quarter, compared to the same prior year period. This marks a return to revenue growth for the first time since the first quarter of 2023. - Net income grew by
104% to€5.1 million and Adjusted EBITDA1 grew by52% to€11.1 million during the fourth quarter, compared to the same prior year period. - New advertisement campaigns, which feature trivago’s new Brand Ambassador Jürgen Klopp, launched in key markets, including the United States, the United Kingdom, and Canada.
- Strong double-digit overall revenue growth year-over-year across all three reporting segments in January 2025.
"In the fourth quarter of 2024, we reached a turning point towards sustainable growth. We are excited to share that in the last quarter, we achieved a
"Our robust financial performance in the fourth quarter and the excellent start to the year are very encouraging. Both the fourth quarter of 2024 and January 2025 exceeded our expectations. With a return to revenue growth, a strong cash balance of over
Financial Summary & Operating Metrics (€ millions, unless otherwise stated)
| Three months ended December 31, | Twelve months ended December 31, | ||||||
| 2024 | 2023 | Δ Y/Y | 2024 | 2023 | Δ Y/Y | ||
| Total revenue | 94.8 | 91.7 | | 460.8 | 485.0 | (5)% | |
| Referral Revenue | 93.5 | 88.8 | | 456.2 | 476.8 | (4)% | |
| Return on Advertising Spend | | | 7.5 ppts | | | (15.5) ppts | |
| Net income/(loss) | 5.1 | 2.5 | | (23.7) | (164.5) | (86)% | |
| Adjusted EBITDA | 11.1 | 7.3 | | 10.2 | 54.1 | (81)% | |
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(1) “Adjusted EBITDA” and "Adjusted EBITDA margin" are non-GAAP measures. Please see “Definitions of Non-GAAP Measures” and “Tabular Reconciliations for Non-GAAP Measures” on pages 17 to 18 herein for explanations and reconciliations of non-GAAP measures used.
About trivago N.V.
trivago N.V. is a global hotel and accommodation search platform. We are focused on reshaping the way travelers search for and compare different types of accommodations, such as hotels, vacation rentals and apartments, while enabling our advertisers to grow their businesses by providing them with access to a broad audience of travelers via our websites and apps. Our platform allows travelers to make informed decisions by personalizing their search for accommodations and providing them with access to a deep supply of relevant information and prices. As of December 31, 2024, we offered access to more than 5.0 million hotels and other types of accommodation in over 190 countries, including over 3.8 million units of alternative accommodation, such as vacation rentals and apartments. Our search platform forms the core of our user experience and can be accessed globally via 53 localized websites and apps available in 31 languages.
Discussion of Results
The discussion of results should be considered together with our unaudited financial information included with this review and the periodic reports we file with the Securities and Exchange Commission, including our Annual Report on Form 20-F for the fiscal year ended December 31, 2023. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) have been omitted from this review. The unaudited information included with this review is derived from our preliminary internal financial reports and is subject to revision based on the completion of our year-end processes necessary to finalize our audited financial statements as of and for the year ended December 31, 2024.
Recent Trends
Total revenues grew by
Investments in our branded channel traffic2 across all three reporting segments have fueled the growth during the quarter. These investments assisted us in reaching a larger audience, resulting in a strengthened branded baseline that we believe will have a long-term positive impact. In late December 2024, we launched our new global marketing campaigns featuring our Brand Ambassador, Jürgen Klopp. These campaigns have resonated well with audiences in key launch markets, including the United States, United Kingdom, and Canada, which we believe has benefited our brand during the fourth quarter of 2024 and will continue into 2025.
Referral Revenue grew year-over-year in our Americas and Rest of World segments. In Americas, we observed healthy levels of growth in monetization as compared to the third quarter of 2024 and the fourth quarter of the prior year. In Rest of World, higher branded channel traffic volumes and better booking conversion more than offset the slightly softer monetization for the quarter compared to the fourth quarter of the prior year (though monetization in Rest of World showed positive improvements over the course of the fourth quarter). We observed softer monetization in Developed Europe as compared to the same prior year quarter. Referral Revenue in Developed Europe declined
In conjunction with our revenue growth, operating expenses of
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2 Branded channel traffic refers to traffic to our platform through: one of our localized platform websites, one of our downloadable mobile applications, branded search engine optimization marketing channels (or "branded free traffic") for keyword searches that are inclusive of the trivago brand name, and/or paid keyword searches that include the trivago brand name, such as "trivago" or "trivago hotel".
Outlook
During the first weeks of 2025, we have observed strong double-digit year-over-year revenue growth in all three reporting segments. We are encouraged by the strong start to the new year, which has exceeded our expectations. We believe the performance marketing channel3 headwinds observed in prior quarters have largely subsided over the course of 2024 and anticipate this will reduce volatility in our upcoming earnings.
Our total Advertising Spend remains at a fraction of historical levels, which we believe highlights the significant upside potential that remains of further increasing our global marketing efforts. We plan to continue pursuing our strategy of prioritizing investing in our brand over short-term profit maximization and to take an opportunity-driven approach to investing, focusing on investments that we believe will deliver long-term benefits. We expect to continue re-investing our profits into our marketing strategy, including further increasing our Advertising Spend in the upcoming year to maintain the positive momentum we have seen so far. We believe trivago is well-positioned, well-capitalized, and ready to sustain its growth trajectory. As a result, for the full year 2025, we expect total revenues to grow by at least high single-digit percentage levels compared to the same period in 2024, and to achieve at least breakeven Adjusted EBITDA levels for the full year-ending 2025.
Revenue, Advertising Spend, and Return of Advertising Spend
Referral Revenue & Other Revenue
We match our users’ searches with large numbers of hotel and other accommodation offers through our auction platform, which we call our marketplace. With our marketplace, we provide advertisers a competitive forum to access user traffic by facilitating a vast quantity of auctions on any particular day. Advertisers submit hotel room and other accommodation rates and participate in our marketplace primarily by making bids for each user click on an advertised rate for a hotel or other accommodation on a cost-per-click, or CPC, basis. We also offer the option for our advertisers to participate in our marketplace on a cost-per-acquisition, or CPA, basis.
We earn substantially all of our revenue when users of our websites and apps click on hotel and accommodation offers or advertisements in our search results and are referred to one of our advertisers, or when a user makes a booking on the advertiser's website ultimately from a referral from our platform. We call this our Referral Revenue.
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3 Performance marketing channel traffic refers to traffic to our platform that is acquired for our website by purchasing certain keywords (excluding keyword combinations inclusive of the trivago brand name) from general search engines (referred to as “search engine marketing”), such as Google or Yahoo!, and through advertisements on other online marketing channels such as advertising networks, social media sites, and affiliate websites.
Management has identified three reportable segments: Americas, Developed Europe and Rest of World (RoW). Our Americas segment is comprised of Argentina, Brazil, Canada, Chile, Colombia, Ecuador, Mexico, Peru, the United States and Uruguay. Our Developed Europe segment is comprised of Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. Our RoW segment is comprised of all other countries. In the fourth quarter of 2024, the most significant countries by revenue in that segment were Japan, Australia, Turkey, New Zealand, and India. We have also determined that our equity method investment in Holisto Limited has met the criteria for an operating segment, however, it does not meet the quantitative thresholds of a separate reportable segment.
We also earn revenue by offering our advertisers business-to-business (B2B) solutions such as data product offerings and subscription fees earned from advertisers for the trivago Business Studio subscriptions. These revenue streams do not represent a significant portion of our total revenue.
Referral Revenue by Segment & Other Revenue (€ millions)
| | Three months ended December 31, | Twelve months ended December 31, | ||||||||||||
| 2024 | 2023 | Δ € | Δ % | 2024 | 2023 | Δ € | Δ % Y/Y | |||||||
| Americas | € | 36.0 | € | 33.3 | € | 2.7 | | € | 173.6 | € | 176.4 | € | (2.8) | (2)% |
| Developed Europe | 37.0 | 37.6 | | (0.6) | (2)% | 192.1 | 215.7 | (23.6) | (11)% | |||||
| Rest of World | 20.5 | 17.9 | | 2.6 | | 90.5 | 84.7 | 5.8 | | |||||
| Total Referral Revenue | € | 93.5 | € | 88.8 | € | 4.7 | | € | 456.2 | € | 476.8 | € | (20.6) | (4)% |
| Other revenue | 1.3 | 2.9 | | (1.6) | (55)% | 4.7 | 8.2 | (3.5) | (43)% | |||||
| Total revenue | € | 94.8 | € | 91.7 | € | 3.1 | | € | 460.8 | € | 485.0 | € | (24.2) | (5)% |
Note: Some figures may not add up due to rounding.
Total revenue increased by
Americas
Referral Revenue increased by
Developed Europe
Referral Revenue decreased by
Rest of World
Referral Revenue increased by
Other Revenue
Other revenue decreased by
Advertiser Concentration
We generate the majority of our Referral Revenue from online travel agencies, or OTAs. For brands affiliated with Expedia Group, including Brand Expedia, Hotels.com, Orbitz, Travelocity, Hotwire, Wotif, Vrbo and ebookers, the share of our Referral Revenue was
Advertising Spend
Advertising Spend is included in selling and marketing expense and consists of fees that we pay for our various marketing channels like TV, search engine marketing, display and affiliate marketing, email marketing, online video, app marketing, content marketing, and sponsorship and endorsement.
Advertising Spend by Segment (€ millions)
| Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
| 2024 | 2023 | Δ€ | Δ% | 2024 | 2023 | Δ€ | Δ%Y/Y | ||||||||
| Americas | € | 22.6 | € | 19.2 | € | 3.4 | | € | 136.4 | € | 119.0 | € | 17.4 | | |
| Developed Europe | 21.0 | 24.6 | (3.6) | (15)% | 136.3 | 147.7 | (11.4) | (8)% | |||||||
| Rest of World | 13.8 | 13.4 | 0.4 | | 72.7 | 56.5 | 16.2 | | |||||||
| Total Advertising Spend | € | 57.4 | € | 57.2 | € | 0.2 | | € | 345.4 | € | 323.2 | € | 22.2 | | |
Note: Some figures may not add up due to rounding.
Total Advertising Spend increased by
Return on Advertising Spend (ROAS)
ROAS Contribution is the difference between Referral Revenue and Advertising Spend. ROAS is the ratio of Referral Revenue to Advertising Spend. We believe that both are indicators of the efficiency of our advertising. ROAS is our primary operating metric.
ROAS Contribution (in € millions) and ROAS (in %) by Segment
| Three months ended December 31, | ||||||||||
| ROAS Contribution | ROAS | |||||||||
| 2024 | 2023 | Δ€ | 2024 | 2023 | Δppts | |||||
| Americas | € | € | € | | | (13.8)ppts | ||||
| Developed Europe | 16.0 | 13.0 | 3.0 | | | 23.3ppts | ||||
| Rest of World | 6.7 | 4.6 | 2.1 | | | 13.8ppts | ||||
| Global | € | 36.1 | € | 31.7 | € | 4.4 | | | 7.5ppts | |
Note: Some figures may not add up due to rounding.
| Twelve months ended December 31, | ||||||||||
| ROAS Contribution | ROAS | |||||||||
| | 2024 | 2023 | Δ€ | 2024 | 2023 | Δppts | ||||
| Americas | | | | | | (21.0)ppts | ||||
| Developed Europe | 55.8 | 68.0 | (12.2) | | | (5.1)ppts | ||||
| Rest of World | 17.8 | 28.3 | (10.5) | | | (25.6)ppts | ||||
| Global | € | 110.8 | € | 153.7 | € | (42.9) | | | (15.5)ppts | |
Global ROAS increased by 7.5 ppts during the three months ended December 31, 2024, compared to the same period in 2023, driven by improved performance in Developed Europe and Rest of World, where Advertising Spend generated a higher share of branded revenue. This improvement was partially offset by lower ROAS in Americas, where increased brand marketing investments resulted in revenue growth for the quarter but at a lower ROAS due to higher Advertising Spend. During the twelve months ended December 31, 2024, global ROAS decreased by 15.5 ppts primarily due to increased brand marketing efforts across all segments with the intention of increasing the volume of direct traffic to our platforms.
Expenses
Expenses by Cost Category (€ millions)
| Three months ended December 31, | As a % of Revenue | ||||||||
| 2024 | 2023 | Δ€ | Δ% | 2024 | 2023 | ||||
| Cost of revenue | € | 2.7 | € | 2.8 | € | (0.1) | (4)% | | |
| Selling and marketing | 63.6 | 63.7 | (0.1) | (0)% | | | |||
| Advertising Spend | 57.4 | 57.2 | 0.2 | 0% | 61% | 62% | |||
| Other selling and marketing | 6.2 | 6.5 | (0.3) | (5)% | 7% | 7% | |||
| Technology and content | 12.5 | 12.1 | 0.4 | | | | |||
| General and administrative | 8.1 | 8.6 | (0.5) | (6)% | | | |||
| Amortization of intangible assets | — | 0.0 | 0.0 | | | | |||
| Impairment of intangible assets and goodwill | 0.1 | — | 0.1 | —% | | —% | |||
| Total costs and expenses | € | 87.0 | € | 87.3 | € | (0.3) | 0% | | 95% |
Note: Some figures may not add up due to rounding.
| Twelve months ended December 31, | Asa % of Revenue | ||||||||
| 2024 | 2023 | Δ€ | Δ% | 2024 | 2023 | ||||
| Cost of revenue | € | 11.3 | € | 12.0 | € | (0.7) | (6)% | | |
| Selling and marketing | 368.2 | 345.6 | 22.6 | | | | |||
| Advertising Spend | 345.4 | 323.2 | 22.2 | 7% | 75% | 67% | |||
| Other selling and marketing | 22.8 | 22.4 | 0.4 | 2% | 5% | 5% | |||
| Technology and content | 50.2 | 49.0 | 1.2 | | | | |||
| General and administrative | 33.1 | 38.7 | (5.6) | (14)% | | | |||
| Amortization of intangible assets | 0.0 | 0.1 | (0.1) | (100)% | | | |||
| Impairment of intangible assets and goodwill | 30.1 | 196.1 | (166.0) | (85)% | | | |||
| Total costs and expenses | € | 493.0 | € | 641.6 | € | (148.6) | (23)% | | 132% |
Note: Some figures may not add up due to rounding.
Cost of Revenue
Cost of revenue decreased by
Selling and Marketing
Selling and marketing expense decreased by
Other selling and marketing expense decreased by
The decrease during the three months ended December 31, 2024 was primarily driven by lower marketing expenses due to the end of our long-term sponsorship agreement in June 2024, a reduction in personnel costs from a lower headcount, and the non-recurrence of marketing commitments written off in 2023. These were partly offset by higher share-based compensation expense in connection with restricted stock units (RSUs) issued for marketing services received.
The increase during the twelve months ended December 31, 2024 was primarily driven by higher television advertisement production costs, the recognition of cumulative Canadian digital services taxes in the second quarter of 2024 as legislation was passed with retroactive effect from January 1, 2022, and higher share-based compensation expense in connection with RSUs issued for marketing services received. These were partly offset by lower expenses incurred to acquire traffic related to our products that were discontinued over the course of 2023, lower marketing expenses due to the end of our long- term sponsorship agreement, the non-recurrence of marketing commitments written off in 2023, and lower personnel expenses resulting mostly from lower headcount.
Technology and Content
Technology and content expense increased by
The increases in both periods were primarily driven by higher non-core cloud-related service provider costs, including a one-time fee paid in the fourth quarter of 2024 related to a contract amendment. The increases were partly offset by lower depreciation and salaries expenses as a result of the tax credits mentioned below. The increases were further offset by lower share-based compensation and content- related service provider costs. The increase in the twelve months ended December 31, 2024 was further driven by higher personnel costs due to lower capitalized developer salaries as certain projects finalized at the end of 2023, and higher annual compensation costs, partly offset by lower headcount during the first half of 2024.
In the fourth quarter of 2024, we received approval from the German tax authority for
General and Administrative
General and administrative expense decreased by
Impairment of intangible assets and goodwill
We recognized an impairment loss of
As a result of our annual impairment test performed in the third quarter of 2023, the Developed Europe and Americas reporting unit goodwill balances were eliminated as a result of impairment charges of
Income Taxes, Net Loss and Adjusted EBITDA(1) (€ millions)
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||
| | 2024 | 2023 | Δ € | 2024 | 2023 | Δ € | ||||||||
| Operating income/(loss) | € | 7.8 | € | 4.4 | € | 3.4 | | € | (32.2) | € | (156.6) | € | 124.4 | |
| Other income/(expense) | ||||||||||||||
| Interest expense | (0.0) | (0.0) | 0.0 | (0.0) | (0.0) | 0.0 | ||||||||
| Interest income | 0.8 | 1.1 | (0.3) | 3.6 | 5.2 | (1.6) | ||||||||
| Other, net | (0.0) | (0.1) | 0.1 | 0.4 | (0.5) | 0.9 | ||||||||
| Total other income, net | € | 0.8 | € | 0.9 | € | (0.1) | | € | 3.9 | € | 4.7 | € | (0.8) | |
| Income/(loss) before income taxes | 8.7 | 5.4 | 3.3 | (28.2) | (151.9) | 123.7 | ||||||||
| Expense/(benefit) for income taxes | 2.8 | 2.8 | 0.0 | (6.3) | 12.4 | (18.7) | ||||||||
| Income/(loss) before equity method investments | € | 5.8 | € | 2.5 | € | 3.3 | | € | (22.0) | € | (164.3) | € | 142.3 | |
| Loss from equity method investments | (0.8) | (0.0) | (0.7) | (1.7) | (0.2) | (1.5) | ||||||||
| Net income/(loss) | € | 5.1 | € | 2.5 | € | 2.6 | | € | (23.7) | € | (164.5) | € | 140.8 | |
| Adjusted EBITDA(1) | € | 11.1 | € | 7.3 | € | 3.8 | | € | 10.2 | € | 54.1 | € | (43.9) | |
Note: Some figures may not add up due to rounding.
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(1) “Adjusted EBITDA” is a non-GAAP measure. Please see “Definitions of Non-GAAP Measures” and “Tabular Reconciliations for Non-GAAP Measures” on pages 17 to 18 herein for explanations and reconciliations of non-GAAP measures used.
Income Taxes
Income tax expense was
Income tax benefit was
The difference between the weighted average tax rate and the effective tax rate for both the three and twelve months ended December 31, 2024 primarily relates to the non-tax-deductible share-based compensation expense in both periods.
The uncertain tax position for unrecognized tax benefits relating to the deductibility of expenses was
Net Income/Loss and Adjusted EBITDA
Net income was
Balance Sheet and Cash Flows
Total cash, cash equivalents and restricted cash were
Cash provided by operating activities during the twelve months ended December 31, 2024, was primarily driven by the net loss adjusted by non-cash items of
The positive change in operating assets and liabilities was primarily driven by an increase in accounts payable of
Cash provided by investing activities during the twelve months ended December 31, 2024, was primarily driven by proceeds from sales and maturities of investments of
Cash used in financing activities during the twelve months ended December 31, 2024, was primarily driven by the payments totaling
trivago N.V. Condensed consolidated balance sheets
(€ thousands, except per share amounts) (unaudited)
| ASSETS | As of December 31, 2024 | As of December 31, 2023 | ||
| Current assets: | ||||
| Cash and cash equivalents | € | 133,745 | € | 101,847 |
| Restricted cash | 342 | 342 | ||
| Accounts receivable, net of allowance for credit losses of | 25,652 | 23,613 | ||
| Accounts receivable, related party | 21,259 | 19,094 | ||
| Short-term investments | — | 25,225 | ||
| Tax receivable | 2,815 | 6,774 | ||
| Prepaid expenses and other current assets | 6,458 | 11,032 | ||
| Total current assets | 190,271 | 187,927 | ||
| Property and equipment, net | 8,210 | 10,079 | ||
| Operating lease right-of-use assets | 39,865 | 42,273 | ||
| Equity method investments | 13,170 | 5,329 | ||
| Investments and other assets | 3,856 | 3,847 | ||
| Intangible assets, net | 45,345 | 75,614 | ||
| TOTAL ASSETS | € | 300,717 | € | 325,069 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | € | 24,668 | € | 17,930 |
| Income taxes payable | 1,613 | 2,087 | ||
| Deferred revenue | 1,041 | 1,176 | ||
| Payroll liabilities | 2,327 | 2,619 | ||
| Accrued expenses and other current liabilities | 17,667 | 9,874 | ||
| Operating lease liability | 2,363 | 2,301 | ||
| Total current liabilities | 49,679 | 35,987 | ||
| Operating lease liability | 36,070 | 38,434 | ||
| Deferred income taxes | 16,798 | 26,549 | ||
| Other long-term liabilities | 565 | 9,075 | ||
| Stockholders’ equity: | ||||
| Class A common stock, | 6,843 | 6,655 | ||
| Class B common stock, | 142,486 | 142,486 | ||
| Reserves | 687,232 | 681,333 | ||
| Contribution from Parent | 122,307 | 122,307 | ||
| Accumulated other comprehensive income | 267 | 75 | ||
| Accumulated deficit | (761,530) | (737,832) | ||
| Total stockholders' equity | 197,605 | 215,024 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | € | 300,717 | € | 325,069 |
trivago N.V. Condensed consolidated statements of operations
(€ thousands, except per share amounts) (unaudited)
| Three months ended December 31, | Twelve months ended December 31, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| Revenue | € | 60,640 | € | 61,235 | € | 287,929 | € | 312,559 |
| Revenue from related party | 34,135 | 30,462 | 172,920 | 172,472 | ||||
| Total revenue | 94,775 | 91,697 | 460,849 | 485,031 | ||||
| Costs and expenses: | ||||||||
| Cost of revenue, including related party, excluding amortization (1) | 2,674 | 2,748 | 11,266 | 11,971 | ||||
| Selling and marketing, including related party (1)(3) | 63,617 | 63,725 | 368,249 | 345,639 | ||||
| Technology and content, including related party (1)(2)(3) | 12,463 | 12,143 | 50,217 | 49,020 | ||||
| General and administrative, including related party (1)(3) | 8,052 | 8,636 | 33,097 | 38,726 | ||||
| Amortization of intangible assets (2) | — | 34 | 23 | 135 | ||||
| Impairment of intangible assets and goodwill | 148 | — | 30,148 | 196,127 | ||||
| Operating income/(loss) | 7,821 | 4,411 | (32,151) | (156,587) | ||||
| Other income/(expense) | ||||||||
| Interest expense | (4) | (5) | (17) | (12) | ||||
| Interest income | 849 | 1,087 | 3,559 | 5,213 | ||||
| Other, net | (11) | (141) | 362 | (478) | ||||
| Total other income, net | 834 | 941 | 3,904 | 4,723 | ||||
| Income/(loss) before income taxes | 8,655 | 5,352 | (28,247) | (151,864) | ||||
| Expense/(benefit) for income taxes | 2,845 | 2,810 | (6,254) | 12,391 | ||||
| Income/(loss) before equity method investments | 5,810 | 2,542 | (21,993) | (164,255) | ||||
| Loss from equity method investments | (751) | (48) | (1,705) | (221) | ||||
| Net income/(loss) | € | 5,059 | € | 2,494 | € | (23,698) | € | (164,476) |
| Earnings per share available to common stockholders: | ||||||||
| Basic | € | 0.01 | € | 0.01 | € | (0.07) | € | (0.48) |
| Diluted | 0.01 | 0.01 | (0.07) | (0.48) | ||||
| Shares used in computing earnings per share: | ||||||||
| Basic | 350,324 | 345,538 | 349,622 | 344,937 | ||||
| Diluted | 351,018 | 348,469 | 349,622 | 344,937 | ||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| (1) Includes share-based compensation as follows: | ||||||||
| Cost of revenue | € | 31 | € | 38 | € | 121 | € | 146 |
| Selling and marketing | 592 | 136 | 939 | 463 | ||||
| Technology and content | 320 | 401 | 1,322 | 1,728 | ||||
| General and administrative | 1,691 | 699 | 6,069 | 7,168 | ||||
| (2) Includes amortization as follows: | ||||||||
| Amortization of internal use software and website development costs included in technology and content | € | 791 | € | 805 | € | 3,185 | € | 3,085 |
| Amortization of acquired technology included in amortization of intangible assets | — | 34 | 23 | 135 | ||||
| (3) Includes related party expense as follows: | ||||||||
| Selling and marketing | € | 7 | € | 26 | € | 33 | € | 94 |
| Technology and content | 604 | 407 | 1,726 | 1,618 | ||||
| General and administrative | 12 | 39 | 55 | 63 | ||||
trivago N.V. Condensed consolidated statements of cash flows
(€ thousands) (unaudited)
| Three months ended December 31, | Twelve months ended December 31, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| Operating activities: | ||||||||
| Net income/(loss) | ||||||||
| Adjustments to reconcile net income/(loss) to net cash provided by/(used in): | ||||||||
| Depreciation (property and equipment and internal-use software and website development) | 462 | 1,115 | 3,725 | 4,421 | ||||
| Goodwill and intangible assets impairment loss | 148 | — | 30,148 | 196,127 | ||||
| Share-based compensation | 2,634 | 1,274 | 8,451 | 9,505 | ||||
| Deferred income taxes | 157 | 1,128 | (9,751) | (3,501) | ||||
| Other, net | 860 | (58) | 1,455 | 1,610 | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, including related party | 20,767 | 25,241 | (4,306) | 6,691 | ||||
| Prepaid expenses and other assets | (1,807) | 194 | 5,585 | (3,565) | ||||
| Accounts payable | (1,203) | (8,932) | 6,898 | (2,389) | ||||
| Taxes payable/receivable, net | 2,348 | (6,062) | 4,505 | (16,532) | ||||
| Other changes in operating assets and liabilities, net | (2,490) | (973) | (2,762) | (90) | ||||
| Net cash provided by operating activities | € | 26,935 | € | 15,421 | € | 20,250 | € | 27,801 |
| Investing activities: | ||||||||
| Purchase of investments | — | (25,225) | — | (25,225) | ||||
| Proceeds from sales and maturities of investments | — | — | 25,225 | 45,000 | ||||
| Capital expenditures, including internal-use software and website development | (698) | (897) | (2,800) | (3,514) | ||||
| Investment in equity-method investee | — | — | (10,211) | — | ||||
| Other investing activities, net | 2 | 2 | 6 | 28 | ||||
| Net cash provided by/(used in) investing activities | € | (696) | € | (26,120) | € | 12,220 | € | 16,289 |
| Financing activities: | ||||||||
| Proceeds from exercise of option awards | — | 140 | — | 365 | ||||
| Payment of withholding taxes on net share settlements of equity awards | (96) | (2,017) | (699) | (6,380) | ||||
| Dividends paid to shareholders | — | (184,381) | — | (184,381) | ||||
| Other financing activities, net | (19) | (10) | (75) | (46) | ||||
| Net cash used in financing activities | € | (115) | € | (186,268) | € | (774) | € | (190,442) |
| Effect of exchange rate changes on cash | 33 | (143) | 202 | (385) | ||||
| Net increase/(decrease) in cash, cash equivalents and restricted cash | € | 26,157 | € | (197,110) | € | 31,898 | € | (146,737) |
| Cash, cash equivalents and restricted cash at beginning of the period | 107,930 | 299,299 | 102,189 | 248,926 | ||||
| Cash, cash equivalents and restricted cash at end of the period | € | 134,087 | € | 102,189 | € | 134,087 | € | 102,189 |
| Supplemental cash flow information: | ||||||||
| Cash received for interest | € | 902 | € | 1,782 | € | 3,571 | € | 5,271 |
| Cash paid for taxes, net of (refunds) | 175 | 7,731 | (1,264) | 32,895 | ||||
| Non-cash investing and financing activities: | ||||||||
| Receipt of tax credits | 1,020 | — | 1,020 | — | ||||
Earnings Per Share and Ownership of the Company
Basic and diluted earnings per share of common stock are computed by dividing net income/(loss) by the weighted average number of Class A and Class B shares outstanding during the period.
The following table presents our basic and diluted earnings per share:
| Three months ended December 31, | Twelve months ended December 31, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| Numerator (€ thousands) | ||||||||
| Net income/(loss) | € | 5,059 | € | 2,494 | € | (23,698) | € | (164,476) |
| Denominator (in thousands) | ||||||||
| Weighted average number of common shares: | ||||||||
| Basic | 350,324 | 345,538 | 349,622 | 344,937 | ||||
| Diluted | 351,018 | 348,469 | 349,622 | 344,937 | ||||
| Net income/(loss) per share: | ||||||||
| Basic(1) | € | 0.01 | € | 0.01 | € | (0.07) | € | (0.48) |
| Diluted(2) | € | 0.01 | € | 0.01 | € | (0.07) | € | (0.48) |
_____________________
(1) Basic net income/(loss) per common share is computed by dividing net income/(loss) by basic weighted average common shares outstanding.
(2) Diluted net income/(loss) per common share is computed by dividing net income/(loss) by the diluted weighted average common shares outstanding, which has been adjusted to include potentially dilutive securities. Diluted net income/(loss) per common share for the twelve-month periods ended December 31, 2024 and December 31, 2023 do not include the effects of the exercise of then- outstanding stock options as the inclusion of these instruments would have been anti–dilutive.
The split between Class A and Class B shares of trivago N.V. as of December 31, 2024 is as follows:
| Class A shares | Class B shares | Total | |
| Number of shares | 114,059,630 | 237,476,895 | 351,536,525 |
| Shares in % | 32 % | 68 % | 100 % |
Notes & Definitions:
Definitions of Non-GAAP Measures
Adjusted EBITDA:
We report Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures to U.S. Generally Accepted Accounting Principles ("GAAP").
We define Adjusted EBITDA as net income/(loss) adjusted for:
- income/(loss) from equity method investment,
- expense/(benefit) for income taxes,
- total other (income)/expense, net,
- depreciation of property and equipment and amortization of intangible assets,
- impairment of, and gains and losses on disposals of, property and equipment,
- impairment of intangible assets and goodwill,
- share-based compensation, and
- certain other items, including restructuring, ADS cancellation fees, and significant legal settlements and court-ordered penalties.
We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.
From time to time, we may exclude from Adjusted EBITDA the impact of certain items that affect the period- to-period comparability of our operating performance.
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. 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 these non-GAAP financial measures because they are used by management to evaluate our operating performance, formulate business plans, and make strategic decisions on capital allocation. We also believe that these non-GAAP financial measures provide 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 the exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure in comparing financial results between periods as these costs may vary independent of core business performance.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results reported in accordance with U.S. GAAP, including net income/loss. Some of these limitations are:
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect expenses, such as restructuring and other related reorganization costs;
- Although depreciation, amortization and impairments are non-cash charges, the assets being depreciated, amortized or impaired may have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA margin do 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 and Adjusted EBITDA margin differently than we do, limiting their usefulness as comparative measures.
We periodically provide an Adjusted EBITDA outlook. We are, however, unable to provide a reconciliation of our Adjusted EBITDA outlook to net income/(loss), the comparable GAAP measure, because certain items that are excluded from Adjusted EBITDA cannot be reasonably or reliably predicted or are not in our control, including, in particular, the timing or magnitude of share-based compensation, interest, taxes, impairments, restructuring related costs and/or significant legal settlements and court-ordered penalties without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, net income/(loss) in the future.
Tabular Reconciliations for Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA Margin (€ millions, unless otherwise stated)
| | Three months ended September 30, | Three months ended December 31, | Twelve months ended December 31, | |||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||
| Total revenue | € | 146.1 | € | 157.9 | € | 94.8 | € | 91.7 | € | 460.8 | € | 485.0 |
| Net income/(loss) | € | (15.4) | € | (182.6) | € | 5.1 | € | 2.5 | € | (23.7) | € | (164.5) |
| Loss from equity method investments | (0.9) | (0.1) | (0.8) | (0.0) | (1.7) | (0.2) | ||||||
| Income/(loss) before equity method investments | € | (14.5) | € | (182.6) | € | 5.8 | € | 2.5 | € | (22.0) | € | (164.3) |
| Expense/(benefit) for income taxes | (3.8) | (0.0) | 2.8 | 2.8 | (6.3) | 12.4 | ||||||
| Income/(loss) before income taxes | € | (18.4) | € | (182.6) | € | 8.7 | € | 5.4 | € | (28.2) | € | (151.9) |
| Add/(less): | ||||||||||||
| Interest expense | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||
| Interest income | (0.8) | (1.8) | (0.8) | (1.1) | (3.6) | (5.2) | ||||||
| Other, net | (0.4) | 0.1 | 0.0 | 0.1 | (0.4) | 0.5 | ||||||
| Operating income/(loss) | € | (19.6) | € | (184.3) | € | 7.8 | € | 4.4 | € | (32.2) | € | (156.6) |
| Depreciation of property and equipment and amortization of intangible assets | 1.1 | 1.1 | 0.5 | 1.1 | 3.7 | 4.6 | ||||||
| Impairment of intangible assets and goodwill | 30.0 | 196.1 | 0.1 | — | 30.1 | 196.1 | ||||||
| Share-based compensation | 2.2 | 3.1 | 2.6 | 1.3 | 8.5 | 9.5 | ||||||
| Certain other items, including restructuring, ADS cancellation fees, significant legal settlements and court-ordered penalties(1) | — | — | 0.0 | 0.5 | 0.0 | 0.5 | ||||||
| Adjusted EBITDA | € | 13.6 | € | 16.0 | € | 11.1 | € | 7.3 | € | 10.2 | € | 54.1 |
| Adjusted EBITDA margin | 9.3 % | 10.1 % | 11.7 % | 8.0 % | 2.2 % | 11.1 % | ||||||
Note: Some figures may not add up due to rounding.
_____________________
(1) The
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This review contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management’s expectations as of the date of this review and assumptions which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as "will," “intend” and “expect,” among others, generally identify forward- looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future revenue, expenses, margins, profitability, net income / (loss), earnings per share and other measures of results of operations and the prospects for future growth of trivago N.V.’s business. Actual results and the timing and outcome of events may differ materially from those expressed or implied in the forward-looking statements for a variety of reasons, including, among others:
- the extent to which our strategy of increasing brand marketing investments positively impacts the volume of direct traffic to our platform and grows our revenue in future periods without reducing our profits or incurring losses;
- the continuing negative impact of having almost completely ceased television advertising in 2020 and only having resumed such advertising at reduced levels in recent years on our ability to grow our revenue;
- our reliance on search engines, particularly Google, whose search results can be affected by a number of factors, many of which are not in our control;
- the promotion by Google of its own product and services that compete directly with our hotel and accommodation search;
- our continued dependence on a small number of advertisers for our revenue and adverse impacts that could result from their reduced spending or changes in their cost-per-click, or (CPC), bidding or cost-per-acquisition (CPA) strategy;
- our ability to generate referrals, customers, bookings or revenue and profit for our advertisers on a basis they deem to be cost-effective;
- factors that contribute to our period-over-period volatility in our financial condition and result of operations;
- the potential negative impact of a worsening of the economic outlook and inflation on consumer discretionary spending;
- any further impairment of intangible assets;
- geopolitical and diplomatic tensions, instabilities and conflicts, including war, civil unrest, terrorist activity, sanctions or other geopolitical events or escalations of hostilities, such as the war in Ukraine and the ongoing conflict affecting the Middle Eastern region;
- increasing competition in our industry;
- our business model's dependence on consumer preferences for traditional hotel-based accommodation;
- our ability to innovate, integrate, and provide tools and services that are useful to our users and advertisers;
- our dependence on relationships with third parties to provide us with content;
- changes to and our compliance with applicable laws, rules and regulations;
- the impact of any legal and regulatory proceedings to which we are or may become subject; and
- potential disruptions in the operation of our systems, security breaches and data protection,
as well as other risks and uncertainties detailed in our public filings with the SEC, including trivago's Annual Report on Form 20-F for the fiscal year ended December 31, 2023, as such risks and uncertainties may be updated from time to time. Except as required by law, we undertake no obligation to update any forward-looking or other statements in this review, whether as a result of new information, future events or otherwise.
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