trivago N.V. · NASDAQ:TRVG
trivago — Q1 2019 Earnings Presentation
25 slides from trivago's earnings presentation, May 1, 2019
Slide 1: Earnings Call Q1 2019
Earnings Call Q1 2019 1 May 2019
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 2019 Appendix: Financial statements 3
Slide 4: Agenda
Agenda Company update Financial performance Guidance 2019 Appendix: Financial statements 4
Slide 5: Q1 2019 — Financial Update
Q1 2019 — Financial Update 2018 «=f 2019 Ss HM YoY Total Revenue Adj. EBITDA’ Net Income / (Loss) Return on Advertising Spend (€mm) (€mm) (€mm) (%) 20.9 7.8 259.4 , — Ys ey 208.8 (21.9) (21.8) 137% (% of Total Revenue) 10.0% Source: Unaudited US GAAP financials and internal data oO trivago Note: Som
Slide 6: Recalibration of Advertising Spend and platform optimizations changed referral revenue dynamics
Recalibration of Advertising Spend and platform optimizations have changed the dynamics of our Referral Revenue drivers QR’ and RPQR? year-on-year growth rates 80% EE EE EEE EEE ESTE SS 1 20% 10% 0% Q1 2018 Q2 2018 Q4 2018 Q1 2019 (10)% (20)% (30)% (40)% Leet eee ee ee ee ee ee ee ee ee ee — OR YoY%
Slide 7: Improved contribution year-on-year leading to higher adjusted EBITDA margin
We continued to improve our contribution year-on-year leading to a significantly higher adjusted EBITDA margin © trivago Change in ROAS contribution YoY (€mm) Q1 2018 (27) Q22Yk8 4Q32018 Q42018 12019 34 25% 20% 15% 10% 5% 0% (5%) (10%) (15%) (20%) Change in Adj. EBITDA‘ margin YoY (ppts) Q1 2018 (15
Slide 8: Our advertiser mix was broadly in line with prior periods
Our advertiser mix was broadly in line with prior periods Advertiser revenue share as % of total revenue All others Booking Holdings Expedia Group Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 oO trivago Source: Internal data
Slide 9: Alternative accommodation effort continues: crossed 1.8mm units milestone
Our alternative accommodation effort continues: we have crossed the 1.8mm units milestone ative accommodation units 1.8mm+ 1.5mm+ Q12018 = 22018 = QQ 2018 ss 4 2018s QQ: 2019 O trivago
Slide 10: Q1 2019 Highlights
Q1 2019 Highlights Referral Revenue benefited from a significant improvement in RPQR while it continued to be negatively affected by a decline in Qualified Referrals Continued to optimize and recalibrate Advertising Spend, resulting in a strong improvement in profitability Benefited from stabilized
Slide 11: Agenda
Agenda Company update Financial performance Guidance 2019 Appendix: Financial statements 11
Slide 12: KPI — Global
KPI — Global 2018 «=f 2019 Ss HM YoY ROAS' (%) 108% 137% Optimization and recalibration of HZ. Advertising Spend 29 ppts Qualified Referrals (mm) Referral Revenue (€mm) ©) Optimization and 189.5 1293 recalibration of Advertising Spend % Platform optimizations Source: Internal data a Note: Some numbe
Slide 13: KPI — Developed Europe
KPI — Developed Europe 2018 «=f 2019 Ss HM YoY ROAS!' (%) 154% Qualified Referrals (mm) Primarily driven by the optimization and recalibration of our Advertising Spend 70.1 48.0 SILL (32)% nal data Negatively impacted by a reduction in our Advertising Spend and product optimizations Referral Revenue
Slide 14: KPI — Americas
KPI — Americas 2018 «=f 2019 Ss HM YoY ROAS' (%) Qualified Referrals (mm) Primarily driven by the optimization and recalibration of our Advertising Spend 59.9 38.9 SLT!) —_—_1— Intemal data Negatively impacted by a reduction in our Advertising Spend and product optimizations may not add up due to ro
Slide 15: KPI — Rest of World
KPI — Rest of World 2018 «=f 2019 Ss HM YoY ROAS' (%) Qualified Referrals (mm) Primarily driven by the optimization and recalibration of our Advertising Spend 59.5 42.5 SLI a (29)% Negatively impacted by a reduction in our Advertising Spend and product optimizations up due to rounding Referral Reven
Slide 16: Agenda
Agenda Company update Financial performance Guidance 2019 Appendix: Financial statements 16
Slide 17: Guidance for 2019
Guidance for 2019 • FY 2019 Adj. EBITDA1 expected to be between €50-75mm • Advertising expense is expected to decline2 in Q2 and increase2 in Q3 and Q4 • Referral revenue is expected to decline2 in Q2 and increase2 in Q3 and Q4 1. Adj. EBITDA is a non-GAAP measure and only adjusted for share-based c
Slide 18: Appendix
Appendix 18
Slide 19: Consolidated Financials Q1 2019, trivago N.V.
Consolidated Financials Q1 2019, trivago N.V. in €k Q1 2019 Q1 2018 Abs Δ vs. Q1'18 Δ vs. Q1'18 Comments Referral revenue 204,976 255,891 (50,915) (19.9)% Other revenue 3,780 3,473 307 8.8% • Overview of P&L under US GAAP Total revenue 208,755 259,364 (50,609) (19.5)% Cost of revenue 1,901 1,579 322
Slide 20: Consolidated Financial Information Q1 2019, trivago N.V.
Consolidated Financial Information Q1 2019, trivago N.V. in €k Q1 2019 Q1 2018 Abs Δ vs. Q1'18 Δ vs. Q1'18 Referral revenue 204,976 255,891 (50,915) (19.9)% 1 Other revenue 3,780 3,473 307 8.8% 2 Comments Total revenue 208,755 259,364 (50,609) (19.5)% Cost of revenue excl. SBC 1,836 1,550 286 18.5%
Slide 21: Reconciliation of non-GAAP Financial Measures Q1 2019
Reconciliation of non-GAAP Financial Measures Q1 2019, trivago N.V. in €mm Q1 2019 Q1 2018 Abs Δ vs. Q1'18 Δ vs. Q1'18 Net income/(loss) 7.8 (21.8) 29.6 135.8% Income from equity method investment 0.1 — 0.1 n.m. Income/(loss) before equity method investment 7.7 (21.8) 29.5 135.3% Expense/(benefit) f
Slide 22: Consolidated Statement of Cash Flows Q1 2019
Consolidated Statement of Cash Flows Q1 2019, trivago N.V. in €k Q1 2019 Q1 2018 Net income/(loss) 7,828 (21,798) 1 Adjustments to reconcile net income/(loss) to net cash provided by/(used in): Comments Depreciation 2,170 2,423 Amortization of intangible assets 421 421 1. 1 Net income improved to €7
Slide 23: Consolidated Balance Sheet Q1 2019
Consolidated Balance Sheet Q1 2019, trivago N.V. As of As of in €k March 31, 2019 December 31, 2018 Cash and cash equivalents 196,939 161,871 1 Comments Restricted cash 122 122 Accounts receivable, less allowance 50,216 54,981 1. 1 Increase in Cash and cash equivalents was mainly driven by 2 Account
Slide 24: Reconciliation of quarterly non-GAAP Financial Measures
Reconciliation of quarterly non-GAAP Financial Measures in €mm Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Net income/(loss) (21.8) (20.7) 10.1 11.7 7.8 Income/(loss) from equity method investment — — 0.1 — — Income/(loss) before equity method investment (21.8) (20.7) 10.0 11.6 7.7 Expense/(benefit) for
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