trivago N.V. · NASDAQ:TRVG
trivago — Q1 2018 Earnings Presentation
25 slides from trivago's earnings presentation, Apr 25, 2018
Slide 1: Earnings Call Q1 2018
Earnings Call Q1 2018 25 April 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: Q1 2018 – Financial Performance
Q1 2018 – Financial Performance Q1 2017 Q1 2018 Total Revenue (€mm) Qualified Referrals (mm) RPQR1 (€) Referral Revenue by segment 267.6 259.4 18% 21% Rest of World 189.5 177.2 39% 38% Americas 1.49 1.35 Developed 43% 41% Europe Q1 2017 Q1 2018 (3)% 7% (9)% Source: Unaudited US GAAP financials 1. RP
Slide 6: Seasonality pattern is back in line with previous years
Seasonality pattern is back in line with previous years after the rebase in Q3 2017 Qualified Referrals: sequential QoQ growth rates 60% 2015 2016 2017 2018 50% 40% 30% 20% 10% 0% (10)%Q2 Q3 Q4 Q1 (20)% (30)% (40)% Source: Internal data 6
Slide 7: Our advertiser revenue share mix has stabilized
Our advertiser revenue share mix has stabilized Advertiser revenue share development 18% 28% 24% All Others 47% 33% 38% Booking Holdings 35% 39% 38% Expedia Group First nine months Q4 2017 Q1 2018 2017 Source: Internal data 7
Slide 8: We continued building the trivago brand
We continued building the trivago brand Shifting the focus in our creatives trivago’s rank in regular usage of hotel related travel sites1 2 3 4 5 Not covered in survey Sources: TNS Omnibus, Research Now, internal data 1. Selected countries in Europe 8
Slide 9: We are increasing our brand awareness in the US
We are increasing our brand awareness in the US Top of Mind and Unaided Brand Awareness in the US since March 2016 % Top of Mind (%) Unaided Brand Awareness (%) 30 28 25 22 20 17 15 15 11 10 8 5 0 Mar ’16 Mar ’17 Mar ‘18 Source: Research Now 9
Slide 10: Agenda
Agenda Company update Financial performance Guidance 2018 Appendix: Financial statements 10
Slide 11: Revenue and profitability decreased YoY
Revenue and profitability decreased YoY Q1 2017 Q1 2018 1 Total Revenue Adj. EBITDA Net Income / (Loss) Return on Advertising Spend (€mm) (€mm) (€mm) (%) 19.3 5.2 267.6 259.4 121% (21.9) (21.8) 108% (% of Total Revenue) (% of Total Revenue) 7.2% 1.9% +37% (3)% (13)ppts (8.4)% (8.4)% Source: Unaudite
Slide 12: KPI – Global
KPI – Global Q1 2017 Q1 2018 1 Qualified Referrals (mm) RPQR (€) ROAS (%) 177.2 189.5 121% 1.49 108% 1.35 YoY 7% (9)% (13)ppts +36% Attribution model and Commercialization Commercialization platform optimizations Attribution model and platform optimizations FX effects Source: Internal data 1. RPQR:
Slide 13: KPI – Developed Europe
KPI – Developed Europe Q1 2017 Q1 2018 1 Qualified Referrals (mm) RPQR (€) ROAS (%) 139% 128% 1.54 1.49 73.6 70.1 YoY YoY YoY YoY YoY (5)% (3)% (11)ppts +14% +36% flat -16ppts -5ppts • Qualified Referrals decreased • RPQR decreased 3% due to lower • ROAS was negatively impacted by against a strong Q
Slide 14: KPI – Americas
KPI – Americas Q1 2017 Q1 2018 1 1 2 Qualified Referrals (mm) RPQR (€) RPQR (USD ) ROAS (%) $1.96 $1.99 €1.84 €1.62 118% 104% 55.5 59.9 YoY YoY YoY YoY YoY YoY 8% (12)% 2% (14)ppts +14% +36% -7% flat -16ppts -5ppts • Qualified Referrals increased 8% • RPQR decreased mainly due to negative FX effects
Slide 15: KPI – Rest of World
KPI – Rest of World Q1 2017 Q1 2018 1 1 2 Qualified Referrals (mm) RPQR (€) RPQR (USD ) ROAS (%) 96% 59.5 €1.01 $1.08 $1.12 87% 48.2 €0.91 YoY YoY YoY YoY YoY YoY 23% (10)% 4% (9)ppts +14% +36% -7% flat -16ppts -5ppts • Qualified Referrals increased 23% • RPQR decreased mainly due to negative FX eff
Slide 16: Opex and headcount development
Opex and headcount development Cost and expenses Q1 2017 Q1 2018 % YoY (€mm) Cost of revenue 1 1.1 1.6 45% Headcount 1,2 1,609 1,620 Other selling & marketing 11.5 18.0 57% 1,282 1 Technology & content 10.7 14.7 37% General & administrative 1 7.6 12.0 58% 1,2 Costs and expenses 30.9 46.3 50% Share-b
Slide 17: Agenda
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 Revenue guidance ROAS Revenue growth expected to be flat2 OPEX Adjusted EBITDA guidance RPQR Continue to expect negative adjusted EBITDA (between €mm -25 and -50) Adjusted EBITDA 1. Year-over-Year comparison for the same period in 2017 18 2
Slide 19: Appendix
Appendix 19
Slide 20: Consolidated Financials Q1 2018, trivago N.V.
Consolidated Financials Q1 2018, trivago N.V. (in €k) Q1 2018 Q1 2017 Abs Δ vs. Q1'17 Δ vs. Q1'17 Referral revenue 255,891 264,292 (8,401) (3.2%) Comments Other revenue 3,473 3,352 121 3.6% Total revenue 259,364 267,644 (8,280) (3.1%) Cost of revenue (1,579) (1,098) (481) 43.8% • Overview of P&L und
Slide 21: Consolidated Financial Information Q1 2018, trivago N.V.
Consolidated Financial Information Q1 2018, trivago N.V. (in €k) Q1 2018 Q1 2017 Abs Δ vs. Q1'17 Δ vs. Q1'17 Referral revenue 255,891 264,292 (8,401) (3.2%) 1 Comments Other revenue 3,473 3,352 121 3.6% 2 Total revenue 259,364 267,644 (8,280) (3.1%) Cost of revenue excl. SBC (1,550) (1,085) (465) 42
Slide 22: Reconciliation of non-GAAP Financial Measures Q1 2018, trivago N.V.
Reconciliation of non-GAAP Financial Measures Q1 2018, trivago N.V. (in €mm) Q1 2018 Q1 2017 Abs Δ vs. Q1'17 Δ vs. Q1'17 Net income (loss) (21.8) 7.7 (29.5) n.m Provision (benefit) for income taxes (7.4) 4.7 (12.1) n.m Income (loss) before income tax (29.1) 12.4 (41.5) n.m Add/(Deduct): Net interest
Slide 23: Consolidated Statement of Cash Flows Q1 2018, trivago N.V.
Consolidated Statement of Cash Flows Q1 2018, trivago N.V. (in €k) Q1 2018 Q1 2017 Net lncome/(loss) (21,798) 7,658 Comments Adjustments to reconcile net income/(loss) to net cash used: Depreciation 2,423 1,475 Amortization of intangible assets 421 1,998 1 Accounts receivable increased more than acc
Slide 24: Consolidated Balance Sheet Q1 2018, trivago N.V.
Consolidated Balance Sheet Q1 2018, trivago N.V. (in €k) Mar 31, 2018 Dec 31, 2017 Cash and cash equivalent 157,018 190,201 1 Restricted cash 103 103 Comments Accounts receivable 57,526 43,062 2 Accounts receivable, related party 66,625 39,063 1 Decrease in cash and cash equivalent was driven by Tax
Slide 25: Slide 25