trivago N.V. Reports First Quarter 2017 Results
(Thomson Reuters ONE) -
trivago N.V. /
trivago N.V. Reports First Quarter 2017 Results
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The issuer is solely responsible for the content of this announcement.
Düsseldorf - May 15, 2017 - trivago N.V. (NASDAQ: TRVG) announced financial
results today for the quarter ended March 31, 2017.
Highlights
* Total revenue increased to ?267.6 million in the first quarter of 2017
compared to ?159.4 million in the first quarter of 2016, representing a 68%
increase period over period
* The number of Qualified Referrals increased by 60% period over period to
177.2 million in the first quarter of 2017, compared to 110.5 million in the
first quarter of 2016
* Revenue per Qualified Referral in the first quarter of 2017 increased by 4%
period over period
* Net income increased to ?7.7 million in the first quarter of 2017, turning
positive from ?(0.1) million in the first quarter of 2016
* Adjusted EBITDA was ?19.3 million in the first quarter of 2017 compared to
?7.7 million in the first quarter of 2016, reflecting an increase of 151%
period over period
Financial Summary & Operating Metrics (? millions unless stated)
+----------------------------------------------+------------------------+
| |Three months ended March|
| | 31, |
| +------------------------+
| Metric |2017 2016 ^ Y/Y |
+----------------------------------------------+------------------------+
|Total Revenue 267.6 159.4 68% |
| |
|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. |
| |
|Net income (loss) attributable to trivago N.V. 5.2 (0.0) n.m. |
| |
|Return on Advertising Spend 121% 120% 110 bps |
| |
|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" on pages 18-19
herein for explanations and reconciliations of non-GAAP measures used throughout
this release.
Discussion of Results
You should read the following discussion together with our unaudited financial
information included with this release and the section contained in our annual
report on Form 20-F for the year ended December 31, 2016, "Item 5. Operating and
Financial Review and Prospects". Certain information and disclosures normally
included in consolidated financial statements prepared in accordance with U.S.
Generally Accepted Accounting Principles (US GAAP) have been omitted from this
release.
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
the comparative historical financial information for the three months ended
March 31, 2016 included herein present the results of operations and financial
condition of trivago GmbH and its controlled subsidiaries. In connection with
our initial public offering in December 2016, trivago N.V. became the holding
company of trivago GmbH, as a result of which the historical consolidated
financial statements of trivago GmbH became the historical consolidated
financial statements of trivago N.V.
Overview
trivago 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. As of December 31, 2016, we offered access to approximately 1.4 million
hotels in over 190 countries.
We believe that the number of travelers accessing our websites and apps makes us
an important and scalable marketing channel for our hotel advertisers, which
include OTAs, hotel chains and independent hotels. Additionally, our ability to
refine user intent through our search function allows us to provide advertisers
with transaction-ready referrals. We generate revenues primarily on a "cost-per-
click," or CPC, basis, whereby an advertiser is charged when a user clicks on an
advertised rate for a hotel and is referred to that advertiser's website where
the user can complete the booking.
Referral Revenue, Other Revenue, Qualified Referrals & RPQR
Referral Revenue by Segment & Other Revenue (? millions)
+------------------------+---------------------------------+
| | Three months ended March 31, |
| +---------------------------------+
| | 2017 2016 ^ ^ % Y/Y |
+------------------------+---------------------------------+
| Americas | 102.2 57.8 44.4 77% |
| | |
| Developed Europe | 113.5 78.9 34.6 44% |
| | |
| Rest of World | 48.6 21.3 27.3 128% |
+------------------------+---------------------------------+
| Total Referral Revenue | 264.3 158.0 106.3 67% |
+------------------------+---------------------------------+
| Other Revenue | 3.4 1.4 2.0 143% |
+------------------------+---------------------------------+
| Total Revenue | 267.6 159.4 108.2 68% |
+------------------------+---------------------------------+
Note: Some numbers may not add up due to rounding.
For the first quarter of 2017, total revenue increased 68% compared to the first
quarter of 2016, with strong growth in all three segments. The growth was
primarily driven by an increase in advertising spend both during the fourth
quarter of 2016 and the first quarter of 2017.
In Americas, Referral Revenue was ?102.2 million, an increase of 77% period over
period during the three months ended March 31, 2017. Developed Europe continues
to show solid growth, with Referral Revenue increasing to ?113.5 million, or
44% period over period in the first quarter of 2017. The Rest of World (RoW)
segment continues to follow a strong growth trajectory, mainly driven by
increased marketing activity in Japan, India and Russia. Referral Revenue for
the segment was ?48.6 million in the first quarter of 2017, an increase of 128%
period over period.
At the end of the first quarter in 2017, over 280,000 hoteliers engaged through
Hotel Manager directly with our platform, of which over 30,000 subscribed to
Hotel Manager Pro. trivago receives a fee for Hotel Manager Pro subscriptions,
driving the 143% growth in Other Revenue.
Qualified Referrals by Segment (in millions)
+------------------+--------------------------------+
| | Three months ended March 31, |
| +--------------------------------+
| | 2017 2016 ^ ^ % Y/Y |
+------------------+--------------------------------+
| Americas | 55.5 33.6 21.9 65% |
| | |
| Developed Europe | 73.6 54.5 19.1 35% |
| | |
| Rest of World | 48.2 22.4 25.8 115% |
+------------------+--------------------------------+
| Total | 177.2 110.5 66.7 60% |
+------------------+--------------------------------+
Note: Some numbers may not add up due to rounding.
During the first quarter of 2017, growth in QRs was 60% period over period, with
55.5 million, 73.6 million and 48.2 million QRs in Americas, Developed Europe
and RoW, respectively. The growth rate reflected users' increased awareness of
our brand, continued strong TV advertising spend and an increase in investment
in performance marketing channels.
Revenue Per Qualified Referrals by Segment (in ?)
+-------------------+------------------------------+
| | Three months ended March 31, |
| +------------------------------+
| | 2017 2016 ^% Y/Y |
+-------------------+ ------------------------+
| Americas | 1.84 1.72 7% |
| | |
| Developed Europe | 1.54 1.45 6% |
| | |
| Rest of World | 1.01 0.95 6% |
+-------------------+------------------------------+
| Consolidated RPQR | 1.49 1.43 4% |
+-------------------+------------------------------+
In the first quarter of 2017, Revenue per Qualified Referral (RPQR) increased by
4% compared to the first quarter of 2016. All segments showed consistent growth
rates around 6%, which is higher than the consolidated average of 4% due to the
increased weighting of the lower RPQR in our RoW segment in 2017. This growth
was largely driven by the introduction of a relevance assessment in our
marketplace algorithm in December 2016, which assesses the quality of users'
experience after leaving our website. In some cases, advertisers have
compensated for their lower relevance assessments through higher cost-per-click
bids. We expect that, as advertisers optimize their websites and bidding
strategy, these positive revenue effects will be partially mitigated over time.
Expenses
Costs and Expenses | As % of Revenue
-----------------------+------------------
Three months ended |Three months ended
March 31, |March 31,
-----------------------+------------------
| ^
2017 2016 ^% Y/Y|2017 2016 in bps
-----------------------+------------------
(? millions) |
|
Cost of revenue 1.1 0.7 51 %| 0 % 0 % (5 )
|
of which share-based compensation 0.0 0.0 |
|
Selling and marketing 231.5 140.1 65 %|86 % 88 % (145 )
|
of which share-based compensation 1.0 0.2 |
|
Technology and content 11.7 7.6 54 %| 4 % 5 % (41 )
|
of which share-based compensation 1.0 (0.0 ) |
|
General and administrative 8.9 4.3 104 %| 3 % 3 % 59
|
of which share-based compensation 1.3 0.0 |
|
Amortization of intangible assets 2.0 6.3 (68 )%| 1 % 4 % (319 )
-----------------------+------------------
Total costs and expenses 255.1 159.1 60 %|95 % 100 % (450 )
|
Note: Some numbers may not add up due to rounding.
Cost of revenue
Cost of revenue increased ?0.4 million for the first quarter of 2017, or 51%
period over period, as the business continues to make investments to reach
scale. Cost of revenue includes data center and server costs as well as user
support functions.
Selling and marketing
For the first quarter of 2017, selling and marketing expense grew ?91.3 million,
or 65% period over period. Advertising expense (which made up 95% of total
selling and marketing expense) was driven by higher advertising spend across all
regions with ?86.6 million, ?81.8 million and ?50.5 million in Americas,
Developed Europe and RoW, respectively, compared to ?50.0 million, ?58.0 million
and ?24.2 million, respectively, in the first quarter of 2016.
Technology and content
For the first quarter of 2017, total technology and content expense increased by
?4.1 million, or 54% period over period, mainly driven by an increase in
personnel costs as the company continues to grow its headcount. Of the ?11.7
million expense, ?1.0 million was share-based compensation and ?0.4 million was
depreciation of internal-use software and website development, compared to nil
and ?0.2 million in the first quarter of 2016, respectively.
General and administrative
For the first quarter of 2017, general and administrative expense increased by
?4.6 million, or 104% period over period, to ?8.9 million. The increase was
primarily driven by higher personnel costs, share-based compensation and
external advisory expenses relating to being a publicly-traded company.
The company continued to build up internal expertise in the finance, legal and
internal audit departments. Overall, personnel and recruiting costs increased
?1.5 million. Share-based compensation was ?1.3 million in the first quarter of
2017, compared to nil in the first quarter of 2016.
Professional fees and other in the first quarter of 2017 increased by ?2.5
million compared to the first quarter of 2016. A significant portion of the
increase is due to additional costs incurred as a publicly-traded company. As we
are incurring such professional services ourselves, the related party shared
service fee expense from Expedia decreased by ?0.7 million in the first quarter
of 2017 compared to same period in 2016.
We are planning to move into our 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 three months ended March 31, 2017, we recorded
?0.4 million of non-cash land rent expense in connection with this lease,
unchanged compared to the same period in 2016.
Amortization of intangible assets
Amortization of intangible assets was ?2.0 million in the first quarter of
2017, compared to ?6.3 million in 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 in 2013, which were allocated to
trivago.
Net income (loss) attributable to trivago and Adjusted EBITDA((1)) (? millions)
+-----------------------------------------------------+------------------------+
| |Three months ended March|
| | 31, |
| +------------------------+
| |2017 2016 ^? ^% Y/Y|
+-----------------------------------------------------+ -------------------+
|Operating income |12.5 0.3 12.2 n.m. |
| | |
|Other income (loss) | |
| | |
|Interest expense |(0.0) (0.0) 0.0 n.m. |
| | |
|Other, net |(0.1) 0.0 (0.2) n.m. |
| +------------------------+
|Total other income (expense), net |(0.1) 0.0 (0.2) n.m. |
| | |
| | |
| | |
|Income before income taxes |12.4 0.3 12.1 n.m. |
| | |
|Expense for income taxes | 4.7 0.4 4.3 n.m. |
| +------------------------+
|Net income (loss) | 7.7 (0.1) 7.8 n.m. |
| | |
| | |
| +------------------------+
|Net (income) loss attributable to noncontrolling | |
|interests |(2.4) 0.1 (2.5) n.m. |
| +------------------------+
|Net income (loss) attributable to trivago N.V. | 5.2 (0.0) 5.3 n.m. |
| +------------------------+
| | |
| | |
|Adjusted EBITDA((1)) |19.3 7.7 11.6 151% |
+-----------------------------------------------------+------------------------+
Note: Some numbers may not add up due to rounding.
n.m. - not meaningful
((1)) Adjusted EBITDA is a non-GAAP measure. See pages 18-19 herein for a
description and reconciliation to the corresponding GAAP measure.
Net income attributable to trivago N.V. was ?5.2 million in the first quarter of
2017. Adjusted EBITDA increased by ?11.6 million to ?19.3 million in the first
quarter of 2017, compared to the first quarter of 2016, or 151% period over
period.
Income taxes
Income tax expenses were ?4.7 million in the first quarter of 2017 compared to
?0.4 million in the first quarter of 2016. The total weighted average tax rate
was 30%, which is mainly driven by the German statutory rate of approximately
31%. The slightly lower rate is due to permanent differences in Germany. Our
effective tax rate was 38% due to share-based compensation expenses, which are
non-deductible for tax purposes.
Balance sheet, cash flows and capitalization
Cash and cash equivalents (including ?0.8 million restricted cash) were ?217.4
million as of March 31, 2017, compared to ?228.2 million as of December
31, 2016. The decrease was mainly driven by accounts receivable increasing more
than accounts payable in the first quarter of 2017. Our receivables vary
significantly from quarter to quarter, reflecting seasonal fluctuations in the
demand for our services, in particular as a result of seasonally lower patterns
in travel bookings during the holiday season. Accordingly, accounts receivable
increased by ?61.9 million or 116% in the first quarter of 2017, driven by
strong revenue growth of ?98.5 million or 58% in the first quarter of 2017
compared to the fourth quarter of 2016.
Accounts payable increased by ?35.9 million or 90% in the first quarter of 2017
due to the seasonal ramp-up in advertising expenses, which increased by ?94.7
million or 76% in the first quarter of 2017 compared to the fourth quarter of
2016. As a result, our current ratio accordingly decreased from 4.8 in the
fourth quarter of 2016 to 3.4 in the first quarter of 2017.
Our plan to move into a newly leased campus building in Düsseldorf's media
harbor results in a steadily increasing capitalization on the balance sheet of
capital lease costs.
trivago N.V. Consolidated balance sheets
(? thousands, except per share amounts) (unaudited)
As of March As of December
ASSETS 31, 2017 31, 2016
Current assets:
Cash and cash equivalents ? 216,536 ? 227,298
Restricted cash 884 884
Accounts receivable, less allowance of ?181
and ?152 at March 31, 2017 and December
31, 2016, respectively 64,197 36,658
Accounts receivable, related party 50,821 16,505
Prepaid expenses and other current assets 10,432 11,529
--------------------------------
Total Current Assets 342,870 292,874
Property and equipment, net 55,202 46,862
Other long-term assets 1,020 955
Intangible assets, net 174,055 176,052
Goodwill 490,511 490,503
--------------------------------
TOTAL ASSETS 1,063,658 1,007,246
--------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY/ MEMBERS'
EQUITY
Current liabilities:
Accounts payable 75,887 39,965
Income taxes payable 7,341 3,433
Deferred revenue 7,547 5,078
Accrued expenses and other current liabilities 9,663 12,627
--------------------------------
Total current liabilities 100,438 61,103
Deferred income taxes 51,978 53,156
Other long-term liabilities 46,367 38,565
Redeemable noncontrolling interests 364 351
Stockholders'/members' equity:
Class A common stock, ?0.06 par value -
700,000,000 shares authorized, 30,108,829 and
30,026,635 shares issued and outstanding as of
March 31, 2017 and December 31, 2016 1,807 1,802
Class B common stock, ?0.60 par value -
320,000,000 shares authorized, 209,008,088
shares issued and outstanding as of March
31, 2017 and December 31, 2016, respectively 125,405 125,405
Reserves 587,420 584,667
Contribution from parent 122,200 122,200
Accumulated other comprehensive income 39 21
Retained earnings (accumulated deficit) (174,602 ) (179,837 )
--------------------------------
Total stockholders' equity attributable to
trivago N.V. / members' equity 662,269 654,258
--------------------------------
Noncontrolling interest 202,242 199,813
--------------------------------
Total stockholders' / members' equity 864,511 854,071
--------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'/MEMBERS'
EQUITY 1,063,658 1,007,246
--------------------------------
trivago N.V. Consolidated statements of operations
(? thousands, except per share data) (unaudited)
Three months ended Three months ended
March 31, 2017 March 31, 2016
------------------------------------------------
Revenue 169,881 101,329
Revenue from related party 97,763 58,022
------------------------------------------------
Total revenue 267,644 159,351
Costs and expenses:
Cost of revenue, including
related party, excluding
amortization (1)(2)(3) 1,098 715
Selling and marketing (1) 231,455 140,112
Technology and content (1)(3) 11,715 7,640
General and administrative,
including related party (1)(3) 8,869 4,340
Amortization of intangible
assets 1,998 6,276
------------------------------------------------
Operating income 12,509 268
Other income (expense)
Interest expense (4 ) (27 )
Other, net (145 ) 36
------------------------------------------------
Total other income (expense),
net (149 ) 9
------------------------------------------------
Income before income taxes 12,360 277
Provision for income taxes 4,702 385
------------------------------------------------
Net income (loss) 7,658 (108 )
Net (income) loss
attributable to noncontrolling
interests (2,423 ) 91
------------------------------------------------
Net income (loss)
attributable to trivago N.V. 5,235 (17 )
------------------------------------------------
Earnings per share
attributable to trivago N.V.
available to common
stockholders (4):
Basic 0.02 -
Diluted 0.02 -
Shares used in computing
earnings per share:
Basic 239,075 -
Diluted 244,361 -
(1) Includes share-based
compensation as follows:
Cost of revenue 13 4
Selling and marketing 979 197
Technology and content, net of
capitalized internal-use
software and website
development costs 1,004 (19 )
General and administrative,
including related party 1,308 7
(2) Amortization of acquired
technology included in
Amortization of intangible
assets is as follows : - 3,750
Amortization of internal use
software and website
development costs included in
Technology and content is as
follows : 380 187
(3) Includes related party
expense as follows:
Cost of revenue 17 -
Technology and content 53 -
General and administrative 79 794
(4) Represents earnings per
share of Class A and Class B
common stock and weighted-
average shares of Class A and
Class B common stock
outstanding for the period
from January 1, 2017 through
March 31, 2017, the period
following the capitalization
of the parent company and IPO.
We have reclassified certain amounts related to our prior period results to
conform to current period presentation.
trivago N.V. Consolidated statements of cash flows
(? thousands) (unaudited)
Three months ended Three months ended
March 31, 2017 March 31, 2016
Operating activities:
Net income (loss) 7,658 (108 )
Adjustments to reconcile net
loss to net cash used:
Depreciation (property and
equipment and internal-use
software and website
development) 1,475 951
Amortization of intangible
assets 1,998 6,276
Share-based compensation 3,304 188
Deferred income taxes (1,178 ) (1,459 )
Foreign exchange (gain) loss 76 (53 )
Bad debt (recovery) expense 29 (145 )
Non-cash charge, contribution
from Parent - 794
Changes in operating assets and
liabilities:
Accounts receivable, including
related party (61,927 ) (31,589 )
Prepaid expense and other assets 1,032 (1,712 )
Accounts payable 35,685 19,770
Accrued expenses and other
liabilities 1,284 (358 )
Deferred revenue 2,469 246
Taxes payable/receivable, net 3,908 1,561
----------------------------------------------
Net cash used in operating
activities (4,187 ) (5,638 )
----------------------------------------------
Investing activities:
Capital expenditures, including
internal-use software and
website development (2,358 ) (2,808 )
----------------------------------------------
Net cash used in investing
activities (2,358 ) (2,808 )
----------------------------------------------
Financing activities:
Payments of initial public
offering costs (4,038 ) -
Dividends paid to NCI (158 ) -
----------------------------------------------
Net cash used in financing
activities (4,196 ) -
----------------------------------------------
Effect of exchange rate changes
on cash (21 ) (152 )
----------------------------------------------
Net increase (decrease) in cash
and cash equivalents restricted
cash (10,762 ) (8,598 )
Cash and cash equivalents at
beginning of year 227,298 17,556
----------------------------------------------
Cash and cash equivalents at end
of year 216,536 8,958
----------------------------------------------
Supplemental cash flow
information:
Cash paid for interest 2 33
Cash paid for taxes 1,972 191
Non-cash investing and financing
activities:
Taxes payable for shares
withheld 534 -
Fixed assets-related payable 363 98
Capitalization of construction
in process related to build-to-
suit lease 7,212 5,024
Earnings per Share and Ownership of the Company
Basic and diluted earnings per share of common stock is computed by dividing net
income attributable to trivago N.V., after adjusting for noncontrolling
interest, 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:
January 1, 2017 through
March 31, 2017
(? thousands, except per share
data)
Numerator
Net income 7,658
Less: net income attributable to (2,423 )
noncontrolling interest
-----------------------------------
Net income attributable to trivago N.V. 5,235
Denominator
Weighted average number of common shares:
Basic 239,075,464
Diluted 244,360,987
-----------------------------------
Net income per share attributable to common
stockholders of trivago N.V.:
Basic ? 0.02
Diluted ? 0.02
The ownership of trivago N.V. as of March 31, 2017, is as follows:
Class A shares Class B shares Total
Free float 30,108,828 - 30,108,828
Expedia - 209,008,088 209,008,088
----------------------------------------------------------
Total 30,108,828 209,008,088 239,116,916
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Class A shares in % Class B shares in % Total
Public 12.6% 0.0% 12.6%
Expedia 0.0% 87.4% 87.4%
----------------------------------------------------------
Total 12.6% 87.4% 100.0%
Assuming trivago receives a favorable tax ruling and the planned corporate
reorganization, pursuant to which trivago GmbH will be merged with and into
trivago N.V., is consummated, the ownership of trivago N.V. would be as set
forth in the table below. For further information regarding our planned
corporate reorganization, refer to our annual report on Form 20-F for the year
ended December 31, 2016, Item 4C, and other relevant disclosures therein.
Class A shares Class B shares Total
Founders Collectively - 110,791,880 110,791,880
Public 30,108,828 - 30,108,828
Expedia - 209,008,088 209,008,088
----------------------------------------------------
Total 30,108,828 319,799,968 349,908,796
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Class A shares in % Class B shares in % Total
Founders Collectively 0.0% 31.7% 31.7%
Public 8.6% 0.0% 8.6%
Expedia 0.0% 59.7% 59.7%
----------------------------------------------------
Total 8.6% 91.4% 100.0%
trivago N.V. Key Metrics
· The following metrics are intended as a supplement to the financial
information found in this release and the financial statements included in our
filings with the Securities and Exchange Commission (SEC). In the event of
discrepancies between amounts in these tables and our historical financial
statements, readers should rely on our filings with the Securities and Exchange
Commission (the "SEC") and our most recent financial statements filed with the
SEC.
· 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.
Three months ended March Three months ended March
31, 2017 31, 2016
ROAS by segment
Americas 118.0% 115.8%
Developed Europe 138.7% 136.1%
Rest of World 96.3% 87.9%
Total 120.7% 119.6%
QR by segment (in
millions)
Americas 55.5 33.6
Developed Europe 73.6 54.5
Rest of World 48.2 22.4
Total 177.2 110.5
RPQR by segment
Americas ?1.84 ?1.72
Developed Europe ?1.54 ?1.45
Rest of World ?1.01 ?0.95
Total ?1.49 ?1.43
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.
Segment Information
Beginning in the second quarter of 2016, management identified three reportable
segments, which correspond to our three operating segments: the Americas,
Developed Europe and Rest of World. Our Americas segment is currently comprised
of Argentina, Brazil, Canada, Chile, Columbia, 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 Rest of
World segment is comprised of all other countries, the most significant by
revenue of which are Australia, Hong Kong, Japan, New Zealand and Poland.
Definitions of Non-GAAP Measures
Adjusted EBITDA:
We define adjusted EBITDA as net income (loss) plus:
1. 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 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 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 March 31,
-------------------------------
2017 2016
---------------- ------------
(? millions)
Net income (loss) 7.7 (0.1)
Expense for income taxes 4.7 0.4
---------------- ------------
Income before income taxes 12.4 0.3
Interest expense 0.0 0.0
Other, net 0.1 (0.0)
---------------- ------------
Operating income 12.5 0.3
Depreciation 1.5 1.0
Amortization of intangible assets 2.0 6.3
---------------- ------------
EBITDA 16.0 7.5
Share-based compensation 3.3 0.2
---------------- ------------
Adjusted EBITDA 19.3 7.7
Note: Some numbers may not add up due to rounding.
Conference Call
trivago N.V. will webcast a conference call to discuss first quarter 2017
financial results and certain forward-looking information on Monday, May
15, 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 at least 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 May 15, 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 and uncertainties detailed in our public filings with the
SEC, including trivago's annual report on Form 20-F for the year ended December
31, 2016. 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: 15.05.2017 - 12:58 Uhr
Sprache: Deutsch
News-ID 543016
Anzahl Zeichen: 54784
contact information:
Town:
Düsseldorf
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 123 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"trivago N.V. Reports First Quarter 2017 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
trivago N.V. (Nachricht senden)
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