trivago N.V. · NASDAQ:TRVG
trivago — Q4 2017 Earnings Presentation
29 slides from trivago's earnings presentation, Feb 7, 2018
Slide 1: Earnings Call Q4 and FY2017
Earnings Call Q4 and FY2017 7 February 2018
Slide 2: Disclaimer
Disclaimer All of the information herein has been prepared by the Company solely for use in this presentation. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be
Slide 3: Agenda
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 3
Slide 4: Agenda: Company update
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 4
Slide 5: Our vision of combining the best product with a strong brand
Our vision of combining the best product with a strong brand Trusted brand Search technology Broad offering Matching OTAs 0.5 Hotel chains View 0.8 Individual hotels 0.8 Spa 0.7 User Profiling 1 Gym 0.4 Accommodation Profiling 0.1 Beach 0.6 Global reach Hotels Booking the B&B ideal hotel Private apa
Slide 6: 2017 Key achievements
2017 Key achievements Revenue exceeding Back-end Attribution Model Relevance Alternative New Leadership €1bn in FY 2017 infrastructure roll-out Assessment Accommodations Model revamp optimization scale-up implementation 6
Slide 7: Revenue in 2017 surpassed 1bn EUR for the first time
Revenue in 2017 surpassed 1bn EUR for the first time Total Revenue (€mm) € 1,035.4 €1bn revenue € 754.2 € 493.1 € 309.3 2010 2011 2012 2013 2014 2015 2016 2017 Source: 2014, 2015 and 2016: Audited US GAAP Financial Statements; 2017: Unaudited US GAAP financials; historic numbers based on HGB financi
Slide 8: 2017 – Financial Performance
2017 – Financial Performance Total Revenue (€mm) Referral Revenue by segment (€mm) Referral Revenue distribution +37% 28.2 11.9 7.9 (7.5) Q4 FY 2016 2017 Source: unaudited US GAAP financials 8
Slide 9: Advertiser revenue share development
Advertiser revenue share development FY 2016 vs FY 2017 Q3 vs Q4 2017 • The revenue share mix of our advertisers was stable for the full year 2017 compared to the full year 2016 • The revenue share mix fluctuated between the quarters with Priceline´s revenue share dropping to 33% in the fourth quart
Slide 10: Agenda: Financial performance
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 10
Slide 11: Revenue increased to over €1bn in 2017
Revenue increased to over €1bn in 2017 Total Revenue (€mm) Adj. EBITDA1 (€mm) Net Income (€mm) +37% 28.2 11.9 7.9 +7% (7.5) Q4 FY 2016 2017 Source: unaudited US GAAP financials 11 1. Adj. EBITDA is only adjusted for share-based compensation. A reconciliation to reported results is included in the Ap
Slide 12: Adjusted EBITDA slowed down YoY
Adjusted EBITDA slowed down YoY Return on Advertising Spend (%) Adjusted EBITDA1(% of Total Revenue) 28.2 11.9 7.9 (7.5) Q4 FY 2016 2017 Source: unaudited US GAAP financials 12 1. Adj. EBITDA is only adjusted for share-based compensation. A reconciliation to reported results is included in the Appen
Slide 13: Qualified Referrals KPI – Global
KPI – Global Q4 Full Year Key Drivers of Q4 2017 performance Attribution model and Referrals Qualified platform optimizations (mm) YoY YoY +14% +36% Commercialization and FX effects testing RPQR (€) Attribution model and 1 YoY YoY platform optimizations -7% flat Commercialization and testing ROAS (%
Slide 14: Qualified Referrals KPI – Developed Europe
KPI – Developed Europe 2016 2017 Q4 Full Year Highlights • Qualified Referrals decreased in Q4 2017 against a strong Q4 2016 driven by lower advertising spend growth while traffic quality improved • FY 2017 profited from a very strong H1 2017 reflecting the Referrals Qualified introduction of the re
Slide 15: Qualified Referrals KPI – Americas
KPI – Americas 2016 2017 Q4 Full Year Highlights • Qualified Referrals growth decelerated in Q4 2017 against a Referrals Qualified strong Q4 2016 driven by lower advertising spend growth (mm) YoY YoY while traffic quality improved +13% +36% • FY 2017 profited from a very strong H1 2017 reflecting th
Slide 16: Qualified Referrals KPI – Rest of World
KPI – Rest of World 2016 2017 Q4 Full Year Highlights • Qualified Referrals growth decelerated in Q4 2017 against a Referrals Qualified strong Q4 2016 driven by lower advertising spend growth (mm) YoY YoY while traffic quality improved +40% +75% • FY 2017 profited from a very strong H1 2017 reflecti
Slide 17: Agenda: Guidance 2018
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 17
Slide 18: Guidance for 2018
Guidance for 2018 H1 20181 H2 20181 Full Year 20181 Revenue Total Revenue expected2 ROAS <<<<<<<< to grow 5-10% OPEX Adjusted EBITDA margin <<<< expected to be slightly RPQR flat by negative region Adjusted EBITDA 1. Year-over-Year as compared to the same period in 2017 18 2. Assumes constant FX rat
Slide 19: Q&A
trivago Q&A
Slide 20: Agenda: Appendix: Financial statements
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 20
Slide 21: Consolidated Financials FY 2017, trivago N.V.
Consolidated Financials FY 2017, trivago N.V. (in €k) FY 2017 FY 2016 Abs Δ vs. FY'16 Δ vs. FY'16 Referral revenue 1,020,333 745,824 274,509 36.8% Comments Other revenue 15,050 8,345 6,705 80.3% Total revenue 1,035,383 754,169 281,214 37.3% Cost of revenue (5,930) (4,273) (1,657) 38.8% • Overview of
Slide 22: Consolidated Financial Information FY 2017, trivago N.V.
Consolidated Financial Information FY 2017, trivago N.V. (in €k) FY 2017 FY 2016 Abs Δ vs. FY'16 Δ vs. FY'16 Referral revenue 1,020,333 745,824 274,509 36.8% 1 Comments Other revenue 15,050 8,345 6,705 80.3% 2 Total revenue 1,035,383 754,169 281,214 37.3% 1) 1 Referral revenue increased 37% YoY main
Slide 23: Reconciliation of non-GAAP Financial Measures FY 2017
Reconciliation of non-GAAP Financial Measures FY 2017, trivago N.V. (in €mm) FY 2017 FY 2016 Abs Δ vs. FY'16 Δ vs. FY'16 Net income (loss) (13.0) (51.4) 38.4 74.7% Provision (benefit) for income taxes (4.8) 6.7 (11.5) (171.6%) Income (loss) before income tax (17.8) (44.7) 26.9 60.2% Add/(Deduct): Ne
Slide 24: Consolidated Financials Q4 2017, trivago N.V.
Consolidated Financials Q4 2017, trivago N.V. (in €k) Q4 2017 Q4 2016 Abs Δ vs. Q4'16 Δ vs. Q4'16 Referral revenue 177,246 166,500 10,746 6.5% Comments Other revenue 4,297 2,667 1,630 61.1% Total revenue 181,543 169,167 12,376 7.3% Cost of revenue (1,575) (1,155) (420) 36.4% • Overview of P&L under
Slide 25: Consolidated Financial Information Q4 2017, trivago N.V.
Consolidated Financial Information Q4 2017, trivago N.V. (in €k) Q4 2017 Q4 2016 Abs Δ vs. Q4'16 Δ vs. Q4'16 Referral revenue 177,246 166,500 10,746 6.5% 1 Comments Other revenue 4,297 2,667 1,630 61.1% 2 Total revenue 181,543 169,167 12,376 7.3% 1) 1 Referral revenue increased 6% YoY mainly driven
Slide 26: Reconciliation of non-GAAP Financial Measures Q4 2017
Reconciliation of non-GAAP Financial Measures Q4 2017, trivago N.V. (in €mm) Q4 2017 Q4 2016 Abs Δ vs. Q4'16 Δ vs. Q4'16 Net income (loss) (9.6) 0.1 (9.7) n.m Provision (benefit) for income taxes (3.5) 5.1 (8.6) (168.6%) Income (loss) before income tax (13.1) 5.2 (18.3) n.m Add/(Deduct): Net interes
Slide 27: Consolidated Statement of Cash Flows FY2017
Consolidated Statement of Cash Flows FY2017, trivago N.V. (in €k) FY 2017 FY 2016 Net lncome (loss) (13,049) (51,391) Comments Adjustments to reconcile net income to net cash used: Depreciation 7,802 5,083 1 1) The amortization costs relate predominantly to intangible assets Amortization of intangib
Slide 28: Consolidated Statement of Cash Flows Q4 2017
Consolidated Statement of Cash Flows Q4 2017, trivago N.V. (in €k) Q4 2017 Q4 2016 Net lncome (loss) (9,596) 107 Comments Adjustments to reconcile net income to net cash used: Depreciation 2,803 1,752 1 1) The amortization costs relate predominantly to intangible assets Amortization of intangible as
Slide 29: Consolidated Balance Sheet FY 2017, trivago N.V.
Consolidated Balance Sheet FY 2017, trivago N.V. (in €k) Dec 31, 2017 Dec 31, 2016 Cash and cash equivalent 190,201 227,298 1 Comments Restricted cash 103 884 Accounts receivable 43,062 36,658 2 1) 1 Net decrease in cash and cash equivalent driven by negative cash Accounts receivable, related party