trivago N.V. · NASDAQ:TRVG
trivago — Q4 2016 Earnings Presentation
33 slides from trivago's earnings presentation, Feb 24, 2017
Slide 1: Earnings Call Q4 and FY 2016
Earnings Call Q4 and FY 2016 24 February 2017
Slide 2: Disclaimer
Disclaimer The following applies to the information following this page, which is the information of trivago N.V. and its subsidiaries. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in an
Slide 3: Agenda
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 3
Slide 4: Agenda
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 4
Slide 5: 2016 – Financial Performance
2016 – Financial Performance Strong Total Revenue Return to profitability Strong Referral Revenue growth (€mm) Adj. EBITDA* (€mm) growth in Americas and RoW 754.2 28.2 8% 12% 15% RoW +53% 24% 35% 493.1 38% Americas +59% 309.3 68% 53% Developed 47% Europe 3.5 2014 2015 2016 2014 2015 2016 (1.1) 2014
Slide 6: 2016 – Key Achievements
2016 – Key Achievements Strong growth in Buildup of expert Roll-out of Mr. & Launch of end- Successful IPO Japan: Already one team on Mrs. trivago to a to-end in December of the largest Amsterdam IT total of 26 markets: measurement: 2016: Significant countries by campus: Pre-testing of new Optimizat
Slide 7: Milestones
trivago has developed rapidly whilst raising only €1.4mm prior to our IPO trivago Total Revenue (€mm) +53% 754.2 +59% 493.1 309.3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Milestones Second First TV 1.4mm financing campaign Expedia acquires a 63% hotels searched round DE and ES stake in
Slide 8: $415bn Large Market Potential
The online hotel market is vast and growing quickly as consumers continue to transition online Market Potential 6% CAGR⁶ $415bn Large Market Global Hotel Bookings (1) $62bn Based on 15% global Take- rate(5) of Hotel Industry Bookings 33% Low Online Penetration(2) 9% CAGR⁶ $21bn Take-rate on 10.8% Hi
Slide 9: trivago value proposition
trivago value proposition Challenges addressed Choice Availability Price Global OTAs OTA Regional OTAs 1.4mm .vn .de .co.za hotels Hotel Chains and independent hotels Find the ideal hotel Find online availability from over Book at the lowest rate for the trip 200 advertisers 9
Slide 10: The trivago system
The trivago system Marketing Hotel Search Advertiser Relations >740mm SEM bids 160 Hotel Chains e.g. New York Search >500 new TV spots 120 OTAs tested CPC Marketplace OTA 1.4mm Hotels 40.5mm app 1 Global Product downloads to date 7,000 Individual Hotels Enablers Technology Talents Marketplace 10
Slide 11: We dominate the top of the funnel for the hotel vertical
We dominate the top of the funnel for the hotel vertical with our strong consumer brand Referral Revenue FY 2016 Aided brand awareness¹ by Traffic Type SEO2 DEA2 Branded SEM2 >75% 50 – 75% 25 – 50% Below 25% Present Not Present Search interest³ Source: TNS Omnibus, Research Now, Google Trends, Inter
Slide 12: Growing number of advertisers
We continuously increased the number of advertisers and are now also building business with individual hotels 2005 – 2009 2010 – 2013 2014 – Present 5 Global OTAs 4 Global OTAs 4 Global OTAs >115 Regional OTAs >15 Regional OTAs >35 Regional OTAs >160 Chains >10 Chains >30 Chains >7,000 Indies Select
Slide 13: Advertisers bid and pay a price for each click
Advertisers bid and pay a price for each click a user makes to an offer price Advertisers Room Price CPC Bid1 Global OTAs $163 OTA $1.20 Regional OTAs $163 $1.10 .vn .de .co.za $0.90 $174 Hotel Chains $0.90 $177 Vertical exposure Horizontal exposure Independent Hotels • Advertisers bid on our CPC-ba
Slide 14: A global unified product addressing critical user needs
We address the critical user needs with a global unified product Mobile Desktop Transparent Pricing www.trivago.com Search details Best deal Price comparison Rich content Ratings and reviews 14
Slide 15: Agenda
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 15
Slide 16: Strong YoY growth in Revenue continued in Q4 2016
Strong YoY growth in Revenue continued in Q4 2016 Incl. €3.5mm IPO Quarterly Total Revenue (€mm) and Adj. EBITDA (€mm) and reorganization costs 2015 2016 Incl. €2.3mm IPO 12.3 11.9 and reorganization costs 246.7 +55% 6.4 169.2 159.3 +70% 99.3 Total Revenue Adj. EBITDA FY 2016: €754.2mm FY 2016: €28.
Slide 17: Strong profitability improvement in FY 2016
Strong profitability improvement in FY 2016 despite higher investments in Q4 ROAS (% of Advertising Expense) Adjusted EBITDA (% of Total Revenue) 141% 12.4% Incl. €3.5mm IPO 134% and reorganization costs Incl. €2.3mm IPO and reorganization 2015 costs 7.0% 2015 115% 2016 2016 105% ROAS Adj. EBITDA 2.
Slide 18: Financials FY 2016 – selected items
Financials FY 2016 – selected items • IPO and corporate reorganization costs in FY 2016 amounted to €11.1mm (€3.7mm in Q3 and €7.4mm in Q4) IPO related costs • Of the €11.1mm, €5.4mm have been capitalized • The related party shared service fee expense (non-cash) amounted to €1.3mm in Q4 2016, of whi
Slide 19: KPI overview – Total
KPI overview – Total Strong traffic growth and improved profitability Highlights 179 2015 2016 Referrals Qualified 114 122 • Global growth acceleration in Qualified Referrals in FY (mm) FY 2016: 535mm 74 vs 2016, especially driven by strong Q4 performance FY 2015: 335mm • Developed Europe, Americas
Slide 20: KPI overview – Developed Europe
KPI overview – Developed Europe Highlights 89 2015 2016 Referrals Qualified 65 (mm) 51 FY 2016: 255mm • Growth rate accelerated in Q4 to 42% YoY, driven by 36 vs good investment opportunities FY 2015: 184mm +39% YoY growth Q3 Q4 FY 2016: €1.37 • Launch of end-to-end optimization of traffic managemen
Slide 21: KPI overview – Americas
KPI overview – Americas Highlights 2015 2016 Referrals Qualified 46 37 (mm) FY 2016: 149mm • Continuation of strong growth across the region. Main 28 drivers are US, Brazil and Mexico, representing 34%, 23 vs FY 2015: 87mm 25% and 15% of the FY 2016 QR growth YoY +71% YoY growth respectively Q3 Q4 2
Slide 22: KPI overview – Rest of World
KPI overview – Rest of World Highlights 2015 2016 Referrals Qualified 45 (mm) 34 FY 2016: 131mm • Strong growth across the region, particular driven by 22 vs large markets that moved from testing to scaling stage 16 such as Japan, India and Russia FY 2015: 64mm +105% YoY growth Q3 Q4 0.84 0.90 FY 20
Slide 23: Agenda
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 23
Slide 24: Guidance for 2017
Guidance for 2017 • Long-term growth drivers are intact • Continued investments into Total Revenue expected to • Advertising, growing trivago brand grow around 45% through smart allocation of advertisement spend • Growth, increasing trivago presence in fast growing countries (with focus on Americas
Slide 25: Q&A
Q&A
Slide 26: Agenda
Agenda Company overview Financial performance Guidance 2017 Appendix: Financial statements 26
Slide 27: Consolidated financials FY 2016, trivago N.V.
Consolidated financials FY 2016, trivago N.V. (€k) FY 2016 FY 2015 Abs. Δ vs FY '15 Δ vs FY 2015 Comments Referral revenue 745,824 490,240 255,584 52.1% Other revenue 8,345 2,843 5,502 193.5% Total revenue 754,169 493,083 261,086 52.9% • Overview of P&L including US GAAP measures Cost of revenue (4,
Slide 28: Consolidated financials FY 2016, trivago N.V.
Consolidated financials FY 2016, trivago N.V. (€k) FY 2016 FY 2015 Abs. Δ vs FY '15 Δ vs FY 2015 Referral revenue 745,824 490,240 255,584 52.1% 1 Other revenue 8,345 2,843 5,502 193.5% 2 Total revenue 754,169 493,083 261,086 52.9% Comments Cost of revenue excl. SBC (3,536) (2,708) (828) 30.6% % of T
Slide 29: Consolidated financials Q4 2016, trivago N.V.
Consolidated financials Q4 2016, trivago N.V. (€k) Q4 2016 Q4 2015 Abs. Δ vs Q4 '15 Δ vs Q4 '15 Comments Referral revenue 166,500 97,947 68,553 70.0% Other revenue 2,667 1,316 1,351 102.7% Total revenue 169,167 99,263 69,904 70.4% • Overview of P&L including US GAAP measures Cost of revenue (1,155)
Slide 30: Consolidated financials Q4 2016, trivago N.V.
Consolidated financials Q4 2016, trivago N.V. (€k) Q4 2016 Q4 2015 Abs. Δ vs Q4 '15 Δ vs Q4 '15 Referral revenue 166,500 97,947 68,553 70.0% 1 Other revenue 2,667 1,316 1,351 102.7% Comments Total revenue 169,167 99,263 69,904 70.4% Cost of revenue excl. SBC (1,142) (914) (228) 24.9% % of Total Rev.
Slide 31: Consolidated Balance Sheet, trivago N.V.
Consolidated Balance Sheet, trivago N.V. (€k) 31 Dec 2016 31 Dec 2015 Cash 227,298 17,556 1 Restricted cash 884 685 Accounts receivable 36,658 19,748 Comments 2 Accounts receivable, related party 16,505 23,605 Prepaid expenses and other current assets 11,529 4,603 3 1) All USD IPO proceeds (incl. Gr
Slide 32: Consolidated Cash Flow Statement, trivago N.V.
Consolidated Cash Flow Statement, trivago N.V. (€k) FY 2016 FY 2015 Net loss (51,391) (39,366) Adjustments to reconcile net loss to net cash used: Depreciation 5,083 2,649 Comments Amortization of intangible assets 13,857 30,030 Share-based compensation 53,722 14,129 1) Strong development YoY of ope
Slide 33: Share-based compensation
Share-based compensation During 2016 the company recognized €51mm of liability classified award expenses, which was related to awards granted in prior periods, as shown below €16mm €8mm €7mm €7mm €4mm €4mm €2mm €2mm 2008 2009 2010 2011 2012 2013 2014 2015 Source: Internal data Note: Numbers may not