trivago N.V. / trivago N.V.: Reports Fourth Quarter and Full Year 2016 Results . Processed and transmitted by Nasdaq Corporate Solutions. 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
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 |
# 8764 Words Related Articles
Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release. | |||||||||||
