Trivago recently announced financial results for the second quarter of 2019 ended June 30, 2019.
Financial Highlights
• Net income in the second quarter of 2019 was €5.9 million, compared to a net loss of €20.7 million in the second quarter of 2018.
• Consolidated ROAS improved to 129.6% in the second quarter of 2019, compared to 110.1% in the same period in 2018.
• Consolidated Revenue per Qualified Referral ("RPQR") improved significantly, reaching €1.67 in the second quarter of 2019, up 28% compared to the same period in 2018.
• The number of Qualified Referrals decreased to 131.3 million in the second quarter of 2019, or by 26%, compared to 177.1 million in the second quarter of 2018.
• Total revenue decreased to €223.4 million in the second quarter of 2019, compared to €235.0 million in the same period in 2018, representing a decline of 5% period-over-period.
• Adjusted EBITDA was €18.5 million in the second quarter of 2019, compared to an Adjusted EBITDA loss of €17.7 million in the second quarter of 2018.
• Reflecting our performance through the second quarter of 2019, we expect our Adjusted EBITDA for 2019 to be between €60 million and €80 million.
Financial Summary & Operating Metrics (€ millions)
• As of June 30, 2019, we offered access to more than 3.0 million hotels and other types of accommodation in over 190 countries, including over 1.8 million units of alternative accommodation, such as vacation rentals and apartments.
• In the second quarter of 2019, cost of revenue increased by €0.7 million to €2.1 million, or 50%, period-over-period, and in the six months ended June 30, 2019 increased by €1.0 million to €4.0 million, or 33%, period-over-period, mainly due to an increase in costs for third-party cloud-related service providers.
• Selling and marketing expense was 81% of total revenue in the second quarter of 2019, compared to 97% in the same period in 2018.
• In the second quarter of 2019, selling and marketing expense decreased by €46.7 million, or by 21%, period-over-period to €180.8 million, of which €169.7 million, or 94%, was Advertising Spend.
• Total cash, cash equivalents and restricted cash were €216.6 million as of June 30, 2019, of which €214.3 million were included in current assets and €2.3 million of long-term restricted cash were included in other long-term assets in the balance sheet primarily relating to the new campus building, compared to total cash, cash equivalents and restricted cash of €164.3 million as of December 31, 2018.
Referral Revenue by Segment & Other Revenue (€ millions)
• Referral Revenue in the second quarter of 2019 decreased to €81.8 million and €44.9 million, or by 3% and 17%, in Americas and RoW, respectively, while it remained flat in Developed Europe at €93.2 million, compared to the same period in 2018.
• Other revenue decreased by 10% to €3.5 million in the second quarter of 2019, compared to €3.9 million in the same period in 2018 mainly driven by a decrease in subscription revenue.
Trivago CEO and founder Rolf Schrömgens said: "This quarter, we worked closely with key advertisers to provide more flexibility over how they bid on our platform. These refinements have already begun delivering increased value to both advertisers and end-users, and we will continue to focus on delivering the best experience to our users. With these improvements to our marketplace, and by further optimizing our advertising spend, we remain optimistic about the second half of the year.”
Trivago CFO Axel Hefer said, "We’re continuing with our strategy to focus on profitability, and I’m pleased to see a significant increase in adjusted EBITDA over the second quarter of 2018. We’re very optimistic that the further improvements that we are currently making to the platform will deliver increased value to our advertisers and we’re looking forward to a strong second half of the year.”
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