trivago N.V.: Reports Fourth Quarter and Full Year 2016 Results
(Thomson Reuters ONE) -
trivago N.V. /
trivago N.V.: Reports Fourth Quarter and Full Year 2016 Results
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The issuer is solely responsible for the content of this announcement.
Düsseldorf - February 24, 2017 - trivago N.V. (NASDAQ: TRVG) announced financial
results today for the quarter and year ended December 31, 2016.
"In our first quarter reporting as a public company, we're encouraged by our
strong revenue growth and increased profitability. We will continue to test,
learn and refine our long-term growth drivers-through the smart allocation of ad
spend, increased presence in fast growing markets and focus on building our
entrepreneurial team". - Rolf Schrömgens, CEO and Founder
Highlights
* Total revenue increased to ?169.2 million in the fourth quarter of 2016, or
70% year-over-year, compared to ?99.3 million in 2015, and to ?754.2 million
in the full year 2016, or 53% year-over-year compared to ?493.1 million in
2015
* Growth in Qualified Referrals was 65% year-over-year in the fourth quarter
of 2016. The number of Qualified Referrals increased to 535.3 million in
full year 2016 compared to 334.6 million in 2015
* Net income increased to ?0.1 million in the fourth quarter of 2016, turning
positive from ?(2.0) million in 2015. Net income was ?(51.4) million for the
full year 2016 compared to ?(39.4) million in 2015
* Adjusted EBITDA was ?11.9 million in the fourth quarter of 2016, compared to
?12.3 million in the fourth quarter of 2015. Adjusted EBITDA was ?28.2
million for the full year 2016, up from ?(1.1) million in 2015
Financial Summary & Operating Metrics (? millions unless stated)
+----------------------------------+--------------------+----------------------+
| | Fourth Quarter | Full Year |
| +--------------------+----------------------+
| | ^ % | ^ % |
| Metric | 2016 2015 Y/Y | 2016 2015 Y/Y |
+----------------------------------+--------------------+----------------------+
|Total Revenue 169.2 99.3 70 % 754.2 493.1 53 %|
| |
|Qualified Referrals (in millions) 122.2 74.1 65 % 535.3 334.6 60 %|
| |
|Revenue per Qualified Referral (in |
|?) 1.36 1.32 3 % 1.39 1.46 (5 )%|
| |
|Operating income (loss) 5.9 (0.4 ) n.m. (44.4 ) (47.9 ) 7 %|
| |
|Net income (loss) 0.1 (2.0 ) n.m. (51.4 ) (39.4 ) (30 )%|
| |
|Net income (loss) attributable to |
|trivago N.V. 0.3 (1.8 ) n.m. (50.7 ) (39.1 ) (30 )%|
| |
|Return on Advertising Spend 134 % 141 % (5 )% 120 % 113 % 6 %|
| |
|Adjusted EBITDA ((1)) 11.9 12.3 (3 )% 28.2 (1.1 ) n.m.|
+------------------------------------------------------------------------------+
(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" on pages
19-20
((2) ) herein for explanations and reconciliations of non-GAAP
measures used throughout this release.
Discussion of Results
As used herein, references to "we", "us", the "company", or "trivago", or
similar terms shall mean trivago N.V. and, as the context requires, its
subsidiaries.
We have historically conducted our business through trivago GmbH, and therefore
our historical financial statements present the results of operations and
financial condition of trivago GmbH and its controlled subsidiaries. In
connection with our initial public offering, or IPO, trivago N.V. became the
holding company of trivago GmbH, and the historical consolidated financial
statements of trivago GmbH became the historical consolidated financial
statements of trivago N.V.
The historical financial statements of trivago GmbH and its controlled
subsidiaries make reference to the members' equity as trivago GmbH Class A units
and trivago GmbH Class B units. The equity of a GmbH is not unitized into shares
under German corporate law. However, pursuant to the company's articles of
association, we unitized members' equity into trivago GmbH Class A units and
Class B units, with each trivago GmbH Class B unit having 1/1,000 of the voting
rights of a trivago GmbH Class A unit.
Referral Revenue, Other Revenue, Qualified Referrals & RPQR
Referral Revenue by Segment & Other Revenue (? millions)
+--------------------+---------------------------+-----------------------------+
| | Fourth Quarter | Full Year |
| +---------------------------+-----------------------------+
| | ^ ^ % | ^ ^ % |
| | 2016 2015 Y/Y | 2016 2015 Y/Y |
+--------------------+---------------------------+-----------------------------+
| Developed Europe| 72.9 50.5 22.4 44 %|348.9 259.6 89.3 34 %|
| | | |
| Americas| 62.9 34.3 28.6 83 %|286.4 171.9 114.5 67 %|
| | | |
| Rest of World| 30.7 13.2 17.5 133 %|110.5 58.8 51.7 88 %|
+--------------------+---------------------------+-----------------------------+
| Total Referral| | |
| Revenue|166.5 97.9 68.6 70 %|745.8 490.2 255.6 52 %|
+--------------------+---------------------------+-----------------------------+
| Other Revenue| 2.7 1.3 1.4 108 %| 8.3 2.8 5.5 196 %|
+--------------------+---------------------------+-----------------------------+
| Total Revenue|169.2 99.3 69.9 70 %|754.2 493.1 261.1 53 %|
+--------------------+---------------------------+-----------------------------+
Note: Some numbers may not add up due to rounding.
For the fourth quarter of 2016, total revenue increased 70% compared to the
fourth quarter of 2015, with strong growth in all three segments. This rapid
growth was driven by the opportunity to invest in advertising above fourth
quarter 2015 levels.
For the full year 2016, total revenue increased 53%. Developed Europe continues
to show solid growth, with Referral Revenue increasing 34% year-over-year.
Referral Revenue in Americas increased 67% to ?286.4 million. The Rest of World
("RoW") segment continues to scale, recording ?110.5 million in Referral Revenue
and growing 88% year-over-year in 2016. Increased marketing in newer markets in
this segment, particularly in Japan, had a significant impact on the revenue
growth.
Qualified Referrals by Segment (in millions)
+----------------+---------------------------+-----------------------------+
| | Fourth Quarter | Full Year |
| +---------------------------+-----------------------------+
| | ^ ^ % | ^ ^ % |
| | 2016 2015 Y/Y | 2016 2015 Y/Y |
+----------------+---------------------------+-----------------------------+
|Developed Europe| 51.2 35.9 15.3 43 %|255.4 183.7 71.7 39 %|
| | | |
| Americas| 36.7 22.6 14.1 62 %|149.1 87.1 62.0 71 %|
| | | |
| Rest of World| 34.3 15.6 18.7 120 %|130.8 63.8 67.0 105 %|
+----------------+---------------------------+-----------------------------+
| Total|122.2 74.1 48.1 65 %|535.3 334.6 200.7 60 %|
+----------------+---------------------------+-----------------------------+
Note: Some numbers may not add up due to rounding.
During the fourth quarter of 2016, growth in Qualified Referrals ("QRs") was
65% year-over-year, with strong performance in all three segments. In Developed
Europe the growth rate accelerated in the fourth quarter of 2016 compared to the
growth rate for the same period in 2015, amid strong investment opportunities in
advertising spend.
For the full year 2016, the global growth in QR was 60%. Developed Europe,
Americas and Rest of World contributed almost equally to the full year growth,
with an increase in QRs by 71.7 million, 62.0 million and 67.0 million,
respectively.
Revenue Per Qualified Referrals by Segment (in ?)
+------------------+-----------------------+-----------------------+
| | Fourth Quarter | Full Year |
| +-----------------------+-----------------------+
| | 2016 2015 ^ % Y/Y | 2016 2015 ^ % Y/Y |
+------------------+-----------------------+-----------------------+
| Developed Europe | 1.42 1.41 1 % | 1.37 1.41 (3 )% |
| | | |
| Americas | 1.72 1.52 13 % | 1.92 1.97 (3 )% |
| | | |
| Rest of World | 0.90 0.84 7 % | 0.85 0.92 (8 )% |
+------------------+-----------------------+-----------------------+
| Total | 1.36 1.32 3 % | 1.39 1.46 (5 )% |
+------------------+-----------------------+-----------------------+
In the fourth quarter of 2016, Revenue per Qualified Referral ("RPQR") increased
by 3% due to improved
commercialization. The stronger increase in RPQR in Americas compared to other
segments was
influenced by the appreciation of the U.S. dollar in the second half of the
fourth quarter, during
which the currency appreciated by approximately 5% against the Euro.
RPQR was down 5% in full year 2016. This was due to high RPQR across all
segments in the first half of
2015 following the introduction of hotel-level CPC bidding in early 2015. This
drove an initial increase in
RPQR in the first half of 2015, followed by a slight decrease and subsequent
stabilization during the
second half of the year which continued throughout the year 2016.
Expenses
Costs and Expenses As a % of Revenue
------------------------ --------------------
Fourth Quarter Fourth Quarter
------------------------ --------------------
2016 2015 ^ % Y/Y 2016 2015 ^ in bps
------------------------ --------------------
(? millions)
Cost of revenue 1.2 0.9 33 % 1 % 1 % 0
of which share-based compensation 0.0 0.1 (100 )%
Selling and marketing 136.7 77.8 76 % 81 % 78 % 300
of which share-based compensation 0.5 1.0 (50 )%
Technology and content 11.1 7.8 42 % 7 % 8 % (100)
of which share-based compensation 0.5 1.2 (58 )%
General and administrative 11.9 5.7 109 % 7 % 6 % 100
of which share-based compensation 0.6 2.0 (70 )%
Amortization of intangible assets 2.5 7.5 (67 )% 1 % 8 % (700)
---------------------------------------------
Total costs and expenses 163.3 99.7 64 % 97 % 100 % (300)
Note: Some numbers may not add up due to rounding.
Costs and Expenses As a % of Revenue
------------------------ ---------------------
Year ended Year ended
------------------------ ---------------------
^ %
2016 2015 Y/Y 2016 2015 ^ in bps
------------------------ ---------------------
(? millions)
Cost of revenue 4.3 2.9 48 % 1 % 1 % 0
of which share-based
compensation 0.7 0.2 250 %
Selling and marketing 674.7 461.3 46 % 89 % 94 % (500)
of which share-based
compensation 10.9 3.4 221 %
Technology and content 51.7 28.7 80 % 7 % 6 % 100
of which share-based
compensation 15.8 4.5 251 %
General and administrative 54.1 18.1 199 % 7 % 4 % 300
of which share-based
compensation 26.3 6.0 338 %
Amortization of intangible
assets 13.9 30.0 (54 )% 2 % 6 % (400)
----------------------------------------------
Total costs and expenses 798.6 541.0 48 % 106 % 110 % (400)
Note: Some numbers may not add up due to rounding.
Cost of revenue
Cost of revenue increased 33% and 48% year-over-year for the fourth quarter and
full year 2016, respectively. Overall it represented 1% of total revenue for
both periods.
Selling and marketing
For the fourth quarter of 2016, selling and marketing expense grew 76% year-
over-year. Advertising expense (which makes up 91% of total selling and
marketing expense) was driven by strong advertising spend across all regions
with ?46.1 million, ?46.4 million and ?31.8 million in Developed Europe,
Americas and RoW respectively.
For the full year 2016, selling and marketing expense increased by 46% year-
over-year, as we continued to invest in brand and performance marketing channels
to increase our brand awareness in each of our three operating segments.
Investments in advertising spend amounted to ?257.5 million, ?243.2 million and
?122.8 million in Developed Europe, Americas and RoW respectively.
Technology and content
For the fourth quarter of 2016, total technology and content expense increased
by 42% year-over-year, mainly driven by an increase in personnel costs.
For the full year 2016, total technology and content expense increased by 80%
year-over-year. The growth was primarily driven by an increase in personnel
costs, as headcount grew from 399 on December 31, 2015 to 516 on December
31, 2016, and an increase of ?11.3 million in share-based compensation expense
driven by fluctuations in the fair value accounting treatment of liability-
classified awards granted in prior periods. Depreciation of internal-use
software and website development increased by ?0.9 million.
General and administrative
For the fourth quarter of 2016, general and administrative expense increased
109% year-over-year. The increase was primarily driven by IPO and corporate
reorganization costs of ?3.5 million.
For the full year 2016, expensed IPO and corporate reorganization costs amounted
to ?5.7 million, including IPO expense of ?0.6 million pushed down from Expedia,
or 11% of general and administrative expense. Share-based compensation increased
to ?26.3 million from ?6.0 million in 2015, primarily due to fluctuations in the
fair value accounting treatment of liability-classified awards granted in prior
periods.
Related party shared service fee expense (non-cash) from Expedia amounted to
?1.3 million in the fourth quarter of 2016 of which ?0.3 million were IPO and
reorganization costs. For the full year 2016, related party shared service fee
expense was ?4.2 million compared to ?2.8 million in 2015. In 2016, ?0.6 million
of the push down costs were IPO and corporate reorganization costs.
trivago is planning to move into its new campus in 2018. The contractual lease
agreements triggered build-to-suit treatment under US GAAP. We have bifurcated
our lease payments pursuant to the premises into a portion that is allocated to
the building (a reduction to the financing obligation) and a portion that is
allocated to the land on which the building was constructed. The portion of the
lease obligations allocated to the land is treated as an operating lease that
commenced in July 2015. For the years ended December 31, 2016 and 2015, we
recorded ?1.7 million and ?0.9 million, respectively, of non-cash land rent
expense in connection with this lease which is recorded in general and
administrative expense. The expense was ?0.4 million in the fourth quarter in
2016.
Amortization of intangible assets
Amortization of intangible assets was ?13.9 million in the full year 2016,
compared to ?30.0 million in 2015. The decrease is due to certain technology
assets being fully amortized during the first quarter of 2016. These
amortization costs relate predominantly to intangible assets recognized by
Expedia, Inc. upon the acquisition of a majority stake in trivago GmbH in 2013
which were pushed down to trivago GmbH.
Share-based compensation expense
Total share-based compensation amounted to ?53.7 million for the year ended
December 31, 2016. There were certain shares held by trivago employees which
were originally awarded in prior years in the form of share-based options
pursuant to the trivago employee option plan and subsequently exercised by such
employees. During the second quarter of 2016, Expedia, Inc. exercised a call
right on these shares and elected to do so at a premium to fair value, the
aggregate payment of which, ?62.5 million, was recorded as a Contribution from
Parent in Members' Equity. The exercise resulted in an incremental share-based
compensation charge of approximately ?43.7 million in the second quarter of
2016 pursuant to liability award treatment. The differential between the cash
settlement amount and the incremental share-based compensation charge reflects
share-based compensation expense recorded on these awards in previous periods.
For the full year 2016 ?51.0 million of expense is due to the mark-to-market
treatment.
Net income (loss) attributable to trivago and Adjusted EBITDA* (? millions)
+-------------------+---------------------------+------------------------------+
| | Fourth Quarter | Year ended |
| +---------------------------+------------------------------+
| | ^ % | ^ % |
| | 2016 2015 ^ ? Y/Y | 2016 2015 ^ ? Y/Y |
+-------------------+---------------------------+------------------------------+
|Operating income | | |
|(loss) | 5.9 (0.4 ) 6.3 n.m.|(44.4 ) (47.9 ) 3.5 7 %|
| | | |
|Other income (loss)| | |
| | | |
|Interest expense | 0.0 (0.1 ) 0.1 n.m.| (0.1 ) (0.1 ) 0.0 0.0 %|
| | | |
|Other, net |(0.7 ) (2.0 ) 1.3 65 %| (0.1 ) (2.7 ) 2.6 96 %|
| +---------------------------+------------------------------+
|Total other income | | |
|(expense), net |(0.7 ) (2.1 ) 1.4 67 %| (0.3 ) (2.8 ) 2.5 89 %|
| | | |
| | | |
| | | |
|Income (loss) | | |
|before income taxes| 5.2 (2.5 ) 7.7 n.m.|(44.7 ) (50.7 ) 6.0 12 %|
| | | |
|Expense (benefit) | | |
|for income taxes | 5.1 (0.5 ) 5.6 n.m.| 6.7 (11.3 ) 18.0 n.m.|
| +---------------------------+------------------------------+
|Net income (loss) | 0.1 (2.0 ) 2.1 n.m.|(51.4 ) (39.4 ) (12.0 ) (30 )%|
| | | |
| | | |
| +---------------------------+------------------------------+
|Net (income) loss | | |
|attributable to | | |
|noncontrolling | | |
|interests | 0.2 0.2 0.0 0.0 %| 0.7 0.3 0.4 133 %|
| +---------------------------+------------------------------+
|Net income (loss) | | |
|attributable to | | |
|trivago N.V. | 0.3 (1.8 ) 2.1 n.m.|(50.7 ) (39.1 ) (11.6 ) (30 )%|
| +---------------------------+------------------------------+
| | | |
| | | |
|Adjusted EBITDA |11.9 12.3 (0.4 ) (3 )%| 28.2 (1.1 ) 29.3 n.m.|
+-------------------+---------------------------+------------------------------+
Note: Some numbers may not add up due to rounding.
* Adjusted EBITDA is a non-GAAP measure. See pages 19-20 herein for a
description and reconciliation to the corresponding GAAP measure.
Net income attributable to trivago N.V. was ?0.3 million in the fourth quarter
of 2016, and ?(50.7) million for the full year 2016.
Adjusted EBITDA increased by ?29.3 million to ?28.2 million for the full year
2016 compared to the full year 2015 as a result of a gradual increase in
profitability. Adjusted EBITDA decreased 3% in the fourth quarter of 2016
compared to the same period in 2015 due to IPO and corporate reorganization
costs.
Income taxes
Income tax expenses were ?6.7 million in the full year 2016 compared to tax
benefits of ?11.3 million in the full year 2015. Our effective tax rate was
(14.9)% in 2016 compared to 22.3% in 2015. This is mainly due to non-deductible
share-based compensation of (pre-tax) ?14.1 million in 2015 and ?53.7 million in
2016. Furthermore, corporate costs of (pre-tax) ?2.8 million for 2015 and ?4.2
million for 2016 were pushed down from Expedia, which are non-deductible for tax
purposes.
Balance sheet, cash flows and capitalization
For the full year 2016, positive operating cash flow improved our cash position
and as a result, we paid back ?20.0 million on our credit facility on a net
basis, thus increasing our current ratio from 0.9 as of December 31, 2015 to
4.8 as of December 31, 2016. In addition, IPO net proceeds of ?207.8 million,
after deducting underwriting discounts and commissions, contributed to our
positive cash balance. All U.S. dollar IPO proceeds were converted to Euros on
the date of settlement.
Efforts to improve our working capital year-over-year resulted in a slower
increase of receivables (+23%) over revenue (+53%). The increase in prepayments
was driven by the rolling-out of the Mr. and Mrs. trivago advertising campaign
in 26 markets. This led to a significant increase in TV production cost and
prepayments for TV production.
The company's plan to move into a newly leased campus building in Dusseldorf's
media harbor, results in a steadily increasing capitalization on the balance
sheet of capital lease costs.
Earnings per Share
Basic and diluted earnings per share of Class A and Class B common stock is
computed by dividing net income attributable to trivago N.V., after adjusting
for noncontrolling interest as a result of the corporate reorganization and IPO,
for the period from December 16, 2016 (effective date of the corporate
reorganization and IPO) through December 31, 2016, by the weighted average
number of Class A and Class B common stock outstanding during the same period.
There were no shares of Class A or Class B common stock outstanding prior to
December 16, 2016, therefore no earnings per share information has been
presented for any period prior to that date.
The following table presents our basic and diluted earnings per share:
December 16, 2016 through December
31, 2016
(? thousands, except per share data)
Numerator
Net income 1,185
Less: net income attributable to 285
noncontrolling interest
-------------------------------------
Net income attributable to trivago N.V. ?900
Denominator
Weighted average shares of Class A and
Class B common stock outstanding - basic 237,811
and diluted
-------------------------------------
Earnings per share attributable to
trivago N.V. available to Class A and ?0.00
Class B common stockholders - basic and
diluted
trivago N.V.
Consolidated balance sheets
(? thousands, except per share amounts)
(unaudited)
As of December As of December
ASSETS 31, 2016 31, 2015
Current assets:
Cash ? 227,298 ? 17,556
Restricted cash 884 685
Accounts receivable, less allowance of
?152 and ?251 at
December 31, 2016 and December
31, 2015, respectively 36,658 19,748
Accounts receivable, related party 16,505 23,605
Prepaid expenses and other current
assets 11,529 4,603
----------------------------------------
Total current assets 292,874 66,197
Property and equipment, net 46,862 12,853
Other long-term assets 955 936
Intangible assets, net 176,052 189,909
Goodwill 490,503 490,360
----------------------------------------
TOTAL ASSETS ? 1,007,246 ? 760,255
----------------------------------------
LIABILITIES AND STOCKHOLDERS'
EQUITY/MEMBERS' EQUITY
Current liabilities:
Accounts payable ?39,965 ?26,263
Income taxes payable 3,433 256
Short-term debt - 20,000
Members' liability - 13,377
Related party payable - 7,129
Deferred revenue 5,078 2,264
Accrued expenses and other current
liabilities 12,627 2,720
----------------------------------------
Total current liabilities 61,103 72,009
Deferred income taxes 53,156 57,994
Other long-term liabilities 38,565 5,896
Redeemable noncontrolling interests 351 2,076
Stockholders'/members' equity:
Subscribed capital - 48
Class A common stock, ?.06 par value -
700,000 shares authorized,
30,026,635 shares issued and
outstanding as of December 31, 2016 1,802 -
Class B common stock, ?.60 par value -
320,000 shares authorized,
209,008,088 shares issued and
outstanding as of December 31, 2016 125,405 -
Reserves 584,667 695,871
Contribution from Parent 122,200 55,529
Accumulated other comprehensive income
(loss) 21 (12 )
Retained earnings (Accumulated
deficit) (179,837 ) (129,156 )
----------------------------------------
Total stockholders' equity
attributable to trivago N.V./ members'
equity 654,258 622,280
Noncontrolling interest 199,813 -
----------------------------------------
Total stockholders'/members' equity 854,071 622,280
----------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY/MEMBERS' EQUITY ? 1,007,246 ? 760,255
----------------------------------------
trivago N.V.
Consolidated statements of operations
(? thousands)
(unaudited)
Three months Three months
Year ended Year ended ended ended
December December December December
31, 2016 31, 2015 31, 2016 31, 2015
Revenue ? 485,942 ? 298,842 ? 107,253 ? 59,462
Revenue from related
party 268,227 194,241 61,914 39,801
-------------------------------------------------------
Total revenue 754,169 493,083 169,167 99,263
Costs and expenses:
Cost of revenue,
including related
party, excluding
amortization((1)(2)) 4,273 2,946 1,155 981
Selling and
marketing((1)) 674,729 461,219 136,679 77,796
Technology and
content((1)) 51,658 28,693 11,050 7,754
General and
administrative,
including related
party((1)(3)) 54,097 18,065 11,877 5,653
Amortization of
intangible assets 13,857 30,030 2,527 7,509
-------------------------------------------------------
Operating income (loss) (44,445 ) (47,870 ) 5,879 (430 )
Other income (expense)
Interest expense (137 ) (147 ) (10 ) (69 )
Other, net (139 ) (2,667 ) (672 ) (1,906 )
-------------------------------------------------------
Total other income
(expense), net (276 ) (2,814 ) (682 ) (1,975 )
-------------------------------------------------------
Income (loss) before
income taxes (44,721 ) (50,684 ) 5,197 (2,405 )
Expense (benefit) for
income taxes 6,670 (11,318 ) 5,090 (477 )
-------------------------------------------------------
Net income (loss) (51,391 ) (39,366 ) 107 (1,928 )
Net (income) loss
attributable to non-
controlling interests 710 239 186 146
-------------------------------------------------------
Net income (loss)
attributable to trivago
N.V. ? (50,681 ) ? (39,127 ) ? 293 ? (1,782 )
-------------------------------------------------------
(1) Includes share-
based compensation as
follows:
Cost of revenue 737 238 13 67
Selling and marketing 10,913 3,360 517 960
Technology and content,
net of capitalized
internal-use software
and website development
costs 15,816 4,545 538 1,245
General and
administrative 26,256 5,986 644 2,014
(2) Amortization of
acquired technology
included in
Amortization of
intangible assets is as
follows: 3,750 19,927 - 4,982
Amortization of
internal use software
and website development
costs
included in Technology
and content is as
follows: 1,410 475 497 160
(3) Includes related
party shared service
fee as follows:
General and
administrative 4,185 2,826 1,293 530
trivago N.V.
Consolidated statements of cash flows
(? thousands)
(unaudited)
Year ended December Year ended December
31, 2016 31, 2015
Operating activities:
Net loss ? (51,391 ) ? (39,366 )
Adjustments to reconcile net
loss to net cash used:
Depreciation (property and
equipment and internal-use
software and website
development) 5,083 2,649
Amortization of intangible
assets 13,857 30,030
Share-based compensation 53,722 14,129
Deferred income taxes (4,838 ) (10,444 )
Foreign exchange (gain) loss (16 ) 960
Bad debt (recovery) expense 1,589 (410 )
Non-cash charge, contribution
from Parent 4,185 2,826
Changes in operating assets and
liabilities, net of effects
from of businesses acquired:
Accounts receivable, including
related party (11,256 ) (18,540 )
Prepaid expense and other
assets (7,144 ) (121 )
Accounts payable 13,879 13,102
Accrued expenses and other
liabilities 7,486 2,415
Deferred revenue 2,814 1,780
Taxes payable/receivable, net 3,177 (25 )
-----------------------------------------------
Net cash provided by (used in)
operating activities 31,147 (1,015 )
Investing activities:
Acquisition of business, net of
cash acquired - (286 )
Acquisition of redeemable non-
controlling interest (874 ) -
Capital expenditures, including
internal-use software and
website development (8,121 ) (6,224 )
-----------------------------------------------
Net cash used in investing
activities (8,995 ) (6,510 )
Financing activities:
Payments of initial public
offering costs (882 ) -
Payment of loan to shareholder - (7,129 )
Payment of loan to related
party - (1,039 )
Proceeds from issuance of loan
from related party - 7,129
Payment on credit facility (40,000 ) -
Proceeds from issuance of
credit facility 20,000 20,000
Net proceeds from issuance of
common stock 207,840 -
Proceeds from exercise of
option awards 685 -
Proceeds from exercise of
members' equity awards 1 10
-----------------------------------------------
Net cash provided by (used in)
financing activities 187,644 18,971
Effect of exchange rate changes
on cash (54 ) (32 )
-----------------------------------------------
Net increase (decrease) in cash 209,742 11,414
Cash at beginning of year 17,556 6,142
-----------------------------------------------
Cash at end of year ? 227,298 ? 17,556
-----------------------------------------------
Supplemental cash flow
information:
Cash paid for interest 160 100
Cash paid for taxes 8,696 751
Non-cash investing and
financing activities:
Offering costs included in
accrued expenses 4,038 -
Fixed assets-related payable 129 306
Capitalization of construction
in process related to build-to-
suit lease 30,883 4,852
Extinguishment of loan to
members through contribution
from Parent in members' equity 7,129 -
Extinguishment of loan from
related party through members'
liability 7,129 -
trivago N.V. Key Metrics
* The following metrics are intended as a supplement to the financial
statements found in this release and in our filings with the SEC. In the
event of discrepancies between amounts in these tables and our historical
financial statements, readers should rely on our filings with the SEC and
the financial statements in our most recent earnings release.
* We intend to periodically review and refine the definition, methodology and
appropriateness of each of our supplemental metrics. As a result, metrics
are subject to removal and/or change, and such changes could be material.
* These metrics do not include adjustments for one-time items, acquisitions,
foreign exchange or other adjustments.
* Some numbers may not add due to rounding.
Full Year 2016 Full Year 2015 Full Year 2014
ROAS by segment
Developed Europe 136% 133% 130%
Americas 118% 102% 90%
Rest of World 90% 87% 92%
---------------------------------------------
Total 120% 113% 114%
QR by segment (in millions)
Developed Europe 255.4 183.7 150.0
Americas 149.1 87.1 41.6
Rest of World 130.8 63.8 23.9
---------------------------------------------
Total 535.3 334.6 215.5
RPQR by segment
Developed Europe ?1.37 ?1.41 ?1.40
Americas ?1.92 ?1.97 ?1.76
Rest of World ?0.85 ?0.92 ?1.07
---------------------------------------------
Total ?1.39 ?1.46 ?1.43
Three months ended Three months ended
December 31, 2016 December 31, 2015
ROAS by segment
Developed Europe 158% 176%
Americas 136% 130%
Rest of World 97% 92%
----------------------------------------------------
Total 134% 141%
QR by segment (in
millions)
Developed Europe 51.2 35.9
Americas 36.7 22.6
Rest of World 34.3 15.6
----------------------------------------------------
Total 122.2 74.2
RPQR by segment
Developed Europe ?1.42 ?1.41
Americas ?1.72 ?1.52
Rest of World ?0.90 ?0.84
----------------------------------------------------
Total ?1.36 ?1.32
Notes & Definitions:
ROAS : The ratio of our referral revenue to our advertising expenses, or return
on advertising spend. We invest in multiple marketing channels, such as TV, out-
of-home advertising, radio, search engine marketing, display and affiliate
marketing, email marketing, social media, online video, mobile app marketing and
content marketing.
QR : We define a qualified referral as a unique visitor per day that generates
at least one referral. For example, if a single visitor clicks on multiple hotel
offers in our search results in a given day, they count as multiple referrals,
but as only one qualified referral.
RPQR: We use average revenue per qualified referral, to measure how effectively
we convert qualified referrals to revenue. RPQR is calculated as referral
revenue divided by the total number of qualified referrals in a given period.
Referral Revenue: We use the term "referral" to describe each time a visitor to
one of our websites or apps clicks on a hotel offer in our search results and is
referred to one of our advertisers. We charge our advertisers for each referral
on a cost-per-click, or CPC, basis.
Definitions of Non-GAAP Measures
Adjusted EBITDA:
We define adjusted EBITDA as net loss plus:
1. benefit (provision) 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 intagible 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 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 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 Year ended
December 31, December 31,
------------------------- ------------------
2016 2015 2016 2015
-------- ---------------- --------- --------
(? millions)
Net income (loss) 0.1 (2.0 ) (51.4 ) (39.4 )
Expense (benefit) for income taxes 5.1 (0.5 ) 6.7 (11.3 )
-------- ---------------- --------- --------
Income (less) before income taxes 5.2 (2.5 ) (44.7 ) (50.7 )
Interest expense 0.0 (0.1 ) 0.1 0.1
Other, net 0.7 2.0 0.1 2.7
-------- ---------------- --------- --------
Operating income (loss) 5.9 (0.4 ) (44.4 ) (47.9 )
Depreciation 1.8 0.8 5.1 2.6
Amortization of intangible assets 2.5 7.5 13.9 30.0
-------- ---------------- --------- --------
EBITDA 10.2 7.9 (25.5 ) (15.2 )
Share-based compensation 1.7 4.3 53.7 14.1
-------- ---------------- --------- --------
Adjusted EBITDA 11.9 12.3 28.2 (1.1 )
Note: Some numbers may not add up due to rounding.
Conference Call
trivago N.V. will webcast a conference call to discuss fourth quarter and year
end 2016 financial results and certain forward-looking information on Friday,
February 24, 2017 at 8:00 a.m. Eastern Time (ET). The webcast will be open to
the public and available via http://ir.trivago.com. trivago N.V. expects to
maintain access to the webcast on the IR website for approximately three months
subsequent to the initial broadcast.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This release 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 February 24, 2017 and assumptions which are
inherently subject to uncertainties, risks and changes in circumstances that are
difficult to predict. The use of words such as "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:
* our ability to effectively manage our growth;
* global political and economic instability and other events beyond our
control;
* increasing competition and consolidation in our industry;
* our advertiser concentration;
* our ability to maintain and increase our brand awareness;
* our ability to maintain and/or expand relationships with, and develop new
relationships with, hotel chains and independent hotels as well as OTAs;
* our reliance on search engines, which may change their algorithms;
* our reliance on technology;
* the effect of the corporate reorganization;
* our material weakness in our internal control over financial reporting and
our ability to establish and maintain an effective system of internal
control over financial reporting;
* our ability to attract, train and retain executives and other qualified
employees;
* our entrepreneurial culture and decentralized decision making;
as well as other risks detailed in our public filings with the SEC. Except as
required by law, we undertake no obligation to update any forward-looking or
other statements in this release, whether as a result of new information, future
events or otherwise.
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.
Contacts
Investor Relations Communications
ir(at)trivago.com corporate.communication(at)trivago.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: trivago N.V. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 24.02.2017 - 13:33 Uhr
Sprache: Deutsch
News-ID 526420
Anzahl Zeichen: 58192
contact information:
Town:
Düsseldorf
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 278 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"trivago N.V.: Reports Fourth Quarter and Full Year 2016 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
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