trivago N.V. · NASDAQ:TRVG
trivago — Q3 2018 Earnings Presentation
29 slides from trivago's earnings presentation, Oct 24, 2018
Slide 1: Earnings Call Q3 2018
Earnings Call Q3 2018 24 October 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
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 4
Slide 5: Q3 2018 – Financial Performance
Q3 2018 – Financial Performance 2017 2018 YoY Total Revenue (€mm) Qualified Referrals (mm) RPQR1 (€) Referral Revenue by segment Q3 YTD Q3 YTD Q3 YTD Q3 2017 Q3 2018 (12)% (12)% (12)% (5)% flat (7)% Source: Unaudited US GAAP financials 5 1. RPQR: Revenue per Qualified Referral
Slide 6: We have adjusted our Advertising Spend to adapt to the changing market environment
We have adjusted our Advertising Spend to adapt to the changing market environment YoY Advertising Spend (€mm) ROAS (%) Adj. EBITDA1 (€mm) 8% (19)% (28)% (13) ppt (3) ppts 25 ppts €(41.2) mm €(20.9) mm €33.7 mm Source: Unaudited US GAAP financials 6 1. Adj. EBITDA is only adjusted for share-based co
Slide 7: After consolidating our core infrastructure, we have focused on UX innovation
After consolidating our core infrastructure, we have focused on UX innovation Old app New app New app launched on both Android and iOS featuring redesigned UI, improved functionalities and increased focus on in-app content Multiple new front-end features launched during Q3 7
Slide 8: Our alternative accommodation effort continues: we have crossed the 1mm units milestone
Our alternative accommodation effort continues: we have crossed the 1mm units milestone No. of alternative accommodation units Source: Internal data 8 Note: Represents access offered to over 1 million units of alternative accommodation, such as vacation rentals and private apartments
Slide 9: Development of our advertiser revenue share mix
Development of our advertiser revenue share mix Advertiser revenue share as % of total revenue Source: Internal data 9
Slide 10: Agenda
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 10
Slide 11: Q3 2018 – Financial Update
Q3 2018 – Financial Update 2017 2018 YoY Total Revenue Adj. EBITDA1 Net Income / (Loss) Return on Advertising Spend (€mm) (€mm) (€mm) (%) (% of Total Revenue) (% of Total Revenue) Q3 YTD Q3 YTD +37% +37% (12)% (12)% 25 ppts 2 ppts Q3 YTD Q3 YTD Source: Unaudited US GAAP financials 11 1. Adj. EBITDA
Slide 12: KPI – Global
KPI – Global 2017 2018 YoY Qualified Referrals (mm) RPQR1 (€) ROAS (%) Q3 YTD Q3 YTD Q3 YTD (12)% (5)% flat (7)% 25 ppts 2 ppts Increased marketing Commercialization Increased marketing profitability targets profitability targets Attribution model and Attribution model and platform optimizations pla
Slide 13: KPI – Developed Europe
KPI – Developed Europe 2017 2018 YoY Qualified Referrals (mm) RPQR1 (€) ROAS (%) Q3 YTD Q3 YTD Q3 YTD (16)% (15)% 13% 3% 21 ppts 5 ppts • Qualified Referrals decreased against the • RPQR improved in Q3 as a result of significant • ROAS significantly improved in Q3 driven same periods in 2017 and wer
Slide 14: KPI – Americas
KPI – Americas 2017 2018 YoY Qualified Referrals (mm) RPQR1 (€) ROAS (%) Q3 YTD (8)% (13)% Q3 YTD RPQR1 (US$2) Q3 YTD (19)% (7)% 26 ppts flat Q3 YTD (9)% (7)% • Qualified Referrals decreased against the • RPQR decreased in Q3 mainly due to lower commercialization, • ROAS improved in Q3 driven by sam
Slide 15: KPI – Rest of World
KPI – Rest of World 2017 2018 YoY Qualified Referrals (mm) RPQR1 (€) ROAS (%) Q3 YTD 1% (7)% Q3 YTD RPQR1 (US$2) Q3 YTD (1)% 8% 27 ppts 4 ppts Q3 YTD flat flat • Qualified Referrals slightly decreased in Q3 • RPQR slightly improved in Q3 as the positive impact from • ROAS significantly improved in Q
Slide 16: Agenda
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 16
Slide 17: Guidance for 2018
Guidance for 2018 revenue Expected Adjusted EBITDA1 €(10)mm – breakeven 1. Adjusted EBITDA is a non-GAAP measure and only adjusted for share-based compensation 17
Slide 18: Appendix
Appendix 18
Slide 19: Consolidated Financials YTD 2018, trivago N.V.
Consolidated Financials YTD 2018, trivago N.V. in €k YTD 2018 YTD 2017 Abs Δ vs. YTD'17 Δ vs. YTD'17 Comments Referral revenue 737,433 843,087 (105,654) (12.5)% Other revenue 10,605 10,753 (148) (1.4)% • Overview of P&L under US GAAP Total revenue 748,038 853,840 (105,802) (12.4)% Cost of revenue 4,
Slide 20: Consolidated Financial Information YTD 2018, trivago N.V.
Consolidated Financial Information YTD 2018, trivago N.V. in €k YTD 2018 YTD 2017 Abs Δ vs. YTD'17 Δ vs. YTD'17 Referral revenue 737,433 843,087 (105,654) (12.5)% 1 Other revenue 10,605 10,753 (148) (1.4)% 2 Comments Total revenue 748,038 853,840 (105,802) (12.4)% Cost of revenue excl. SBC 4,296 4,2
Slide 21: Reconciliation of non-GAAP Financial Measures YTD 2018, trivago N.V.
Reconciliation of non-GAAP Financial Measures YTD 2018, trivago N.V. in €mm YTD 2018 YTD 2017 Abs Δ vs. YTD'17 Δ vs. YTD'17 Net income/(loss) (32.5) (3.5) (29.0) n.m. Income from equity method investment — — — —% Income/(loss) before equity method investment (32.5) (3.5) (29.0) n.m. Expense/(benefit
Slide 22: Consolidated Financials Q3 2018, trivago N.V.
Consolidated Financials Q3 2018, trivago N.V. in €k Q3 2018 Q3 2017 Abs Δ vs. Q3'17 Δ vs. Q3'17 Comments Referral revenue 250,449 283,760 (33,311) (11.7)% Other revenue 3,226 4,100 (874) (21.3)% • Overview of P&L under US GAAP Total revenue 253,675 287,860 (34,185) (11.9)% Cost of revenue 1,408 1,84
Slide 23: Consolidated Financial Information Q3 2018, trivago N.V.
Consolidated Financial Information Q3 2018, trivago N.V. in €k Q3 2018 Q3 2017 Abs Δ vs. Q3'17 Δ vs. Q3'17 Referral revenue 250,449 283,760 (33,311) (11.7)% 1 Other revenue 3,226 4,100 (874) (21.3)% 2 Comments Total revenue 253,675 287,860 (34,185) (11.9)% Cost of revenue excl. SBC 1,351 1,813 (462)
Slide 24: Reconciliation of non-GAAP Financial Measures Q3 2018, trivago N.V.
Reconciliation of non-GAAP Financial Measures Q3 2018, trivago N.V. in €mm Q3 2018 Q3 2017 Abs Δ vs. Q2'17 Δ vs. Q3'17 Net income/(loss) 10.1 (7.7) 17.8 n.m. Income from equity method investment 0.1 — 0.1 n.m. Income/(loss) before equity method investment 10.0 (7.7) 17.7 n.m. Expense/(benefit) for i
Slide 25: Consolidated Statement of Cash Flows YTD 2018, trivago N.V.
Consolidated Statement of Cash Flows YTD 2018, trivago N.V. in €k YTD 2018 YTD 2017 Net income/(loss) (32,478) (3,453) 1 Adjustments to reconcile net income/(loss) to net cash provided by/(used in): Comments Depreciation 8,490 4,999 Amortization of intangible assets 1,263 2,798 Impairment of interna
Slide 26: Consolidated Statement of Cash Flows Q3 2018, trivago N.V.
Consolidated Statement of Cash Flows Q3 2018, trivago N.V. in €k Q3 2018 Q3 2017 Net income/(loss) 10,053 (7,726) 1 Adjustments to reconcile net income/(loss) to net cash provided by/(used in): Comments Depreciation 2,961 1,869 Amortization of intangible assets 421 412 Impairment of internal-use sof
Slide 27: Consolidated Balance Sheet YTD 2018, trivago N.V.
Consolidated Balance Sheet YTD 2018, trivago N.V. As of As of in €k September 30, 2018 December 31, 2017 Cash and cash equivalents 144,770 190,201 1 Comments Restricted cash 103 103 Accounts receivable, less allowance 53,685 43,062 2 1. 1 Decrease in Cash and cash equivalents was driven by Accounts
Slide 28: Reconciliation of non-GAAP Financial Measures from Q1 - Q2 2018
Reconciliation of non-GAAP Financial Measures from Q1 - Q2 2018 in €mm Q1 2018 Q2 2018 Net income/(loss) (21.8) (20.7) Income/(loss) from equity method investment — — Income/(loss) before equity method investment (21.8) (20.7) Expense/(benefit) for income taxes (7.4) (6.6) Income/(loss) before incom
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