trivago N.V. · NASDAQ:TRVG
trivago — Q3 2019 Earnings Presentation
26 slides from trivago's earnings presentation, Nov 5, 2019
Slide 1: Earnings Call Q3 2019
Earnings Call Q3 2019 5 November 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: Q3 2019 – Financial Update
Q3 2019 – Financial Update 2018 2019 YoY Total Revenue Adj. EBITDA1 Net Income / (Loss) Return on Advertising Spend (€mm) (€mm) (€mm) (%) 50.3 26.6 10.9 10.1 14.0 748.0 0.3 682.5 (13.0) (32.5) 136% 129% 123% Q3 YTD Q3 YTD 117% 253.7 250.3 (% of Total Revenue) (% of Total Revenue) 10.5% 7.4% 4.4% 4.0
Slide 6: Our advertiser mix was broadly in line with the same period in prior years
Our advertiser mix was broadly in line with the same period in prior years Option 2 Advertiser revenue share as % of total revenue 21% 24% 25% All others 45% Booking Holdings 44% 43% 34% 32% 32% Expedia Group Q3 2017 Q3 2018 Q3 2019 Source: Internal data 6
Slide 7: We more than doubled our alternative accommodation within a year
We more than doubled our alternative accommodation within a year No. of alternative accommodation units 2.3mm+ 1.0mm+ 250k+ Q3 2017 Q3 2018 Q3 2019 Source: Internal data 7 Note: Represents access to over 2.3 million units of alternative accommodation, such as vacation rentals and private apartments
Slide 8: Agenda
Agenda Company update Financial performance Guidance 2019 Appendix: Financial statements 8
Slide 9: KPI – Global
KPI – Global 2018 2019 YoY ROAS (%) Referral Revenue (€mm) 737.4 672.1 136% 123% 117% 129% 250.4 247.2 Q3 YTD Q3 YTD (13) ppts 12 ppts (1)% (9)% Qualified Referrals (mm) RPQR1 (€) 555.6 422.6 1.53 1.59 1.32 1.33 189.1 162.0 Q3 YTD Q3 YTD (14)% (24)% 16% 20% Source: Internal data 9 Note: Some numbers
Slide 10: KPI – Developed Europe
KPI – Developed Europe 2018 2019 YoY ROAS (%) Referral Revenue (€mm) 150% 136% 311.7 287.5 135% 144% 114.4 104.2 Q3 YTD Q3 YTD (14) ppts 9 ppts (9)% (8)% Qualified Referrals (mm) RPQR1 (€) 1.60 1.77 • Negatively impacted 1.51 1.49 • Negatively impacted by a 209.4 162.3 by product general softness in
Slide 11: KPI – Americas
KPI – Americas 2018 2019 YoY ROAS (%) Referral Revenue (€mm) 136% 124% 262.1 249.2 115% 125% 80.8 96.3 Q3 YTD Q3 YTD (12) ppts 10 ppts 19% (5)% Qualified Referrals (mm) RPQR1 (€) 2.24 2.13 1.83 1.74 • Negatively impacted by • Improvement driven by product optimizations optimizations of our 151.0 117
Slide 12: KPI – Rest of World
KPI – Rest of World 2018 2019 YoY ROAS (%) Referral Revenue (€mm) 114% 100% 112% 163.6 135.4 95% 55.3 46.7 Q3 YTD Q3 YTD (14) ppts 17 ppts (16)% (17)% Qualified Referrals (mm) RPQR1 (€) • Negatively impacted • Improvement driven by 195.3 143.3 by product 0.80 0.86 0.84 0.94 optimizations of our 69.1
Slide 13: Q3 2019 Highlights
Q3 2019 Highlights To be updated Referral Revenue in Americas grew significantly as we increased our Advertising Spend Continued to roll out bid modifiers and phased out the relevance assessment in our marketplace Continued to increase our coverage of alternative accommodation 13
Slide 14: Agenda
Agenda Company update Financial performance Guidance 2019 Appendix: Financial statements 14
Slide 15: Guidance for 2019
Guidance for 2019 Adjusted EBITDA • FY 2019 Adj. EBITDA1 expected to be between €60mm – €80mm 1. Adj. EBITDA is a non-GAAP measure and only adjusted for share-based compensation 15
Slide 16: Appendix
Appendix 16
Slide 17: Consolidated Financials YTD 2019, trivago N.V.
Consolidated Financials YTD 2019, trivago N.V. in €k YTD 2019 YTD 2018 Abs Δ vs. YTD'18 Δ vs. YTD'18 Comments Referral revenue 672,078 737,433 (65,355) (8.9)% Other revenue 10,391 10,605 (214) (2.0)% • Overview of P&L under US GAAP Total revenue 682,468 748,038 (65,570) (8.8)% Cost of revenue 6,538
Slide 18: Consolidated Financial Information YTD 2019, trivago N.V.
Consolidated Financial Information YTD 2019, trivago N.V. in €k YTD 2019 YTD 2018 Abs Δ vs. YTD'18 Δ vs. YTD'18 Referral revenue 672,077 737,433 (65,356) (8.9)% 1 Other revenue 10,391 10,605 (214) (2.0)% Total revenue 682,468 748,038 (65,570) (8.8)% 2 Comments Cost of revenue excl. SBC 6,334 4,296 2
Slide 19: Reconciliation of non-GAAP Financial Measures YTD 2019
Reconciliation of non-GAAP Financial Measures YTD 2019, trivago N.V. in €mm YTD 2019 YTD 2018 Abs Δ vs. YTD'18 Net income/(loss) 14.0 (32.5) 46.5 Income/(loss) from equity method investment 0.2 (0.0) 0.2 Income/(loss) before equity method investment 13.8 (32.5) 46.3 Expense/(benefit) for income taxe
Slide 20: Consolidated Financials Q3 2019, trivago N.V.
Consolidated Financials Q3 2019, trivago N.V. in €k Q3 2019 Q3 2018 Abs Δ vs. Q3'18 Δ vs. Q3'18 Comments Referral Revenue 247,166 250,449 (3,283) (1.3)% Other revenue 3,112 3,226 (114) (3.5)% • Overview of P&L under US GAAP Total revenue 250,278 253,675 (3,397) (1.3)% Cost of revenue 2,558 1,408 1,1
Slide 21: Consolidated Financial Information Q3 2019, trivago N.V.
Consolidated Financial Information Q3 2019, trivago N.V. in €k Q3 2019 Q3 2018 Abs Δ vs. Q3'18 Δ vs. Q3'18 Referral Revenue 247,166 250,449 (3,283) (1.3)% 1 Other revenue 3,112 3,226 (114) (3.5)% Total revenue 250,278 253,675 (3,397) (1.3)% 2 Comments Cost of revenue excl. SBC 2,492 1,351 1,141 84.5
Slide 22: Reconciliation of non-GAAP Financial Measures Q3 2019
Reconciliation of non-GAAP Financial Measures Q3 2019, trivago N.V. in €mm Q3 2019 Q3 2018 Abs Δ vs. Q3'18 Net income/(loss) 0.3 10.1 (9.8) Income/(loss) from equity method investment 0.1 0.1 — Income/(loss) before equity method investment 0.2 10.0 (9.8) Expense/(benefit) for income taxes 2.4 7.1 (4
Slide 23: Consolidated Statement of Cash Flows YTD 2019
Consolidated Statement of Cash Flows YTD 2019, trivago N.V. in €k YTD 2019 YTD 2018 Net income/(loss) 14,030 (32,478) 1 Adjustments to reconcile net income/(loss) to net cash provided by/(used in): Comments Depreciation 7,531 8,490 Amortization of intangible assets 1,263 1,263 1. 1 Net income improv
Slide 24: Consolidated Statement of Cash Flows Q3 2019
Consolidated Statement of Cash Flows Q3 2019, trivago N.V. in €k Q3 2019 Q3 2018 Net income/(loss) 293 10,053 1 Adjustments to reconcile net income/(loss) to net cash provided by/(used in): Comments Depreciation 2,712 2,961 Amortization of intangible assets 421 421 Share-based compensation 5,326 5,3
Slide 25: Consolidated Balance Sheet YTD 2019, trivago N.V.
Consolidated Balance Sheet YTD 2019, trivago N.V. As of As of in €k September 30, 2019 December 31, 2018 Cash and cash equivalents Restricted cash 195,670 122 161,871 122 1 Comments Accounts receivable, less allowance 51,453 54,981 2 Accounts receivable, related party 45,461 39,655 1. 1 Increase in
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