trivago N.V. · NASDAQ:TRVG
trivago — Q4 2018 Earnings Presentation
31 slides from trivago's earnings presentation, Feb 6, 2019
Slide 1: Earnings Call Q4 2018
Earnings Call Q4 2018 6 February 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: Q4 2018 – Financial Performance
Q4 2018 – Financial Performance 2017 2018 YoY Total Revenue (€mm) Qualified Referrals (mm) RPQR1 (€) Referral Revenue by segment 1,035.4 23% 26% Rest of World 914.8 727.1 668.3 37% 33% Americas 181.5 166.8 1.27 1.44 1.40 1.35 139.3 112.6 40% 41% Developed Europe Q4 FY Q4 FY Q4 FY Q4 2017 Q4 2018 (8)
Slide 6: Return on Advertising Spend improved in H2 2018
Return on Advertising Spend improved in H2 2018 2017 2018 YoY Advertising Spend (€mm) ROAS (%) 300 180% 250 163% 160% 200 150 140% 100 120% 118% 50 0 100% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 H1 H2 (7)% (30)% Source: Unaudited US GAAP financials 6
Slide 7: Positive trend in operating expenses contributed to higher Adjusted EBITDA in 2018
The positive trend in our operating expenses contributed to an increase in Adjusted EBITDA in 2018 2017 2018 YoY Operating expenses1 (€mm) Adj. EBITDA2 (€mm) 50 30 28.6 45 20 10 40 0 35 Q1 Q2 Q3 Q4 (10) (8.7) 30 (20) 25 Q1 Q2 Q3 Q4 (30) H1 H2 36% 3% Source: Internal data 7 1. Operating expenses excl
Slide 8: Year-over-year Adjusted EBITDA increase accelerated while Referral Revenue decline decelerated
Year-over-year our Adjusted EBITDA increase accelerated while the Referral Revenue decline decelerated Change in Adj. EBITDA1 2018 vs. 2017 (€mm) Referral Revenue YoY% 2018 vs. 2017 60 0% Q1 Q2 Q3 Q4 37.3 33.7 (3)% (5)% 30 (8)% (10)% (12)% 0 Q1 Q2 Q3 Q4 (15)% (20.9) (30) (41.2) (20)% (22)% (60) (25)
Slide 9: Alternative accommodation: crossed the 1.5mm units milestone
Our alternative accommodation effort continues: we have crossed the 1.5mm units milestone No. of alternative accommodation units 1.5mm+ 1mm+ 800k+ 350k+ 250k+ Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Source: Internal data 9 Note: Represents access to over 1.5 million units of alternative accommodatio
Slide 10: Our advertiser mix was similar to Q4 2017
Our advertiser mix was similar to Q4 2017 Advertiser revenue share as % of total revenue 28% 24% 24% 24% 29% All others 33% 38% 38% 44% 34% Booking Holdings 39% 38% 38% 37% 32% Expedia Group Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Source: Internal data 10
Slide 11: Agenda
Agenda Company update Financial performance Guidance 2019 Appendix: Financial statements 11
Slide 12: Q4 2018 – Financial Update
Q4 2018 – Financial Update 2017 2018 YoY Total Revenue Adj. EBITDA1 Net Income / (Loss) Return on Advertising Spend (€mm) (€mm) (€mm) (%) 28.6 15.6 11.7 6.7 1,035.4 163% 914.8 (8.7) (9.6) (13.0) (20.8) 123% 118% 115% (% of Total Revenue) (% of Total Revenue) 17.1% 181.5 166.8 7.0% 0.6% 1.7% Q4 FY (1
Slide 13: KPI – Global
KPI – Global 2017 2018 YoY ROAS (%) Referral Revenue (€mm) 1,020.3 899.8 163% 118% 115% 123% Optimization and recalibration of 177.2 162.4 Advertising Spend Q4 FY Commercialization Q4 FY 45 ppts 8 ppts (8)% (12)% Qualified Referrals (mm) RPQR1 (€) 727.1 668.3 Optimization and 1.44 Commercialization
Slide 14: KPI – Developed Europe
KPI – Developed Europe 2017 2018 YoY ROAS (%) Referral Revenue (€mm) 202% • ROAS significantly 136% 131% 144% improved in Q4 2018 425.0 378.9 69.9 67.2 • Primarily driven by the optimization and Q4 FY Q4 FY recalibration of our Advertising Spend 66 ppts 13 ppts (4)% (11)% Qualified Referrals (mm) RP
Slide 15: KPI – Americas
KPI – Americas 2017 2018 YoY ROAS (%) Referral Revenue (€mm) • ROAS significantly improved in Q4 2018 159% 123% 116% 121% 391.7 316.0 • Primarily driven by optimization and 65.8 53.9 recalibration of our Q4 FY Advertising Spend Q4 FY and to lesser extent by slightly improved 36 ppts 5 ppts levels of
Slide 16: KPI – Rest of World
KPI – Rest of World 2017 2018 YoY ROAS (%) Referral Revenue (€mm) • ROAS significantly improved in Q4 2018 127% 93% 92% 100% • Primarily driven by 203.6 204.9 optimization and 41.5 41.3 recalibration of our Q4 FY Advertising Spend Q4 FY 34 ppts 8 ppts flat 1% Qualified Referrals (mm) RPQR1 (€) • Qua
Slide 17: Q4 2018 Summary
Q4 2018 Summary Continued to optimize and recalibrate Advertising Spend, resulting in strong profitability improvement Benefitted from stable and improved marketplace dynamics vs. Q4 2017 when some of our largest advertisers had conducted significant testing activities Referral Revenue relatively re
Slide 18: Agenda
Agenda Company update Financial performance Guidance 2019 Appendix: Financial statements 18
Slide 19: Guidance for 2019
Guidance for 2019 Adjusted • FY 2019 Adj. EBITDA1 expected to be between €50mm – €75mm EBITDA • Total Revenue expected to decline in H12, significantly more in Q1 than in Q2 Total Revenue • In H2, Total Revenue expected to return to growth2 1. Adj. EBITDA is a non-GAAP measure and only adjusted for
Slide 20: Appendix
Appendix 20
Slide 21: Consolidated Financials FY 2018, trivago N.V.
Consolidated Financials FY 2018, trivago N.V. in €k FY 2018 FY 2017 Abs Δ vs. FY'17 Δ vs. FY'17 Comments Referral revenue 899,822 1,020,333 (120,511) (11.8)% Other revenue 14,994 15,050 (56) (0.4)% • Overview of P&L under US GAAP Total revenue 914,816 1,035,383 (120,567) (11.6)% Cost of revenue 5,43
Slide 22: Consolidated Financial Information FY 2018, trivago N.V.
Consolidated Financial Information FY 2018, trivago N.V. in €k FY 2018 FY 2017 Abs Δ vs. FY'17 Δ vs. FY'17 Referral revenue 899,822 1,020,333 (120,511) (11.8)% 1 Other revenue 14,994 15,050 (56) (0.4)% 2 Comments Total revenue 914,816 1,035,383 (120,567) (11.6)% Cost of revenue excl. SBC 5,251 5,815
Slide 23: Reconciliation of non-GAAP Financial Measures FY 2018
Reconciliation of non-GAAP Financial Measures FY 2018, trivago N.V. in €mm FY 2018 FY 2017 Abs Δ vs. FY'17 Δ vs. FY'17 Net income/(loss) (20.8) (13.0) (7.8) 60.0% Income from equity method investment 0.1 — 0.1 n.m. Income/(loss) before equity method investment (20.9) (13.0) (7.9) 60.8% Expense/(bene
Slide 24: Consolidated Financials Q4 2018, trivago N.V.
Consolidated Financials Q4 2018, trivago N.V. in €k Q4 2018 Q4 2017 Abs Δ vs. Q4'17 Δ vs. Q4'17 Comments Referral revenue 162,389 177,246 (14,857) (8.4)% Other revenue 4,389 4,297 92 2.1% • Overview of P&L under US GAAP Total revenue 166,778 181,543 (14,765) (8.1)% Cost of revenue 1,001 1,575 (574)
Slide 25: Consolidated Financial Information Q4 2018, trivago N.V.
Consolidated Financial Information Q4 2018, trivago N.V. in €k Q4 2018 Q4 2017 Abs Δ vs. Q4'17 Δ vs. Q4'17 Referral revenue 162,389 177,246 (14,857) (8.4)% 1 Other revenue 4,389 4,297 92 2.1% Comments Total revenue 166,778 181,543 (14,765) (8.1)% Cost of revenue excl. SBC 955 1,545 (590) (38.2)% 1.
Slide 26: Reconciliation of non-GAAP Financial Measures Q4 2018
Reconciliation of non-GAAP Financial Measures Q4 2018, trivago N.V. in €mm Q4 2018 Q4 2017 Abs Δ vs. Q4'17 Δ vs. Q4'17 Net income/(loss) 11.7 (9.6) 21.3 n.m. Income from equity method investment 0.0 — — n.m. Income/(loss) before equity method investment 11.6 (9.6) 21.2 n.m. Expense/(benefit) for inc
Slide 27: Consolidated Statement of Cash Flows FY 2018
Consolidated Statement of Cash Flows FY 2018, trivago N.V. in €k FY 2018 FY 2017 Net income/(loss) (20,815) (13,049) 1 Adjustments to reconcile net income/(loss) to net cash provided by/(used in): Comments Depreciation 11,370 7,802 Amortization of intangible assets 1,684 3,220 1. 1 Net loss of €20.8
Slide 28: Consolidated Statement of Cash Flows Q4 2018
Consolidated Statement of Cash Flows Q4 2018, trivago N.V. in €k Q4 2018 Q4 2017 Net income/(loss) 11,663 (9,596) 1 Adjustments to reconcile net income/(loss) to net cash provided by/(used in): Comments Depreciation 2,880 2,803 Amortization of intangible assets 421 422 1. 1 Cash flow from operating
Slide 29: Consolidated Balance Sheet FY 2018, trivago N.V.
Consolidated Balance Sheet FY 2018, trivago N.V. As of As of in €k December 31, 2018 December 31, 2017 Cash and cash equivalents 161,871 190,201 1 Comments Restricted cash 122 103 Accounts receivable, less allowance 55,961 43,062 2 1. 1 Decrease in Cash and cash equivalents was mainly driven Account
Slide 30: Reconciliation of quarterly non-GAAP Financial Measures 2017 - 2018
Reconciliation of quarterly non-GAAP Financial Measures 2017 - 2018 in €mm Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Net income/(loss) 7.7 (3.4) (7.7) (9.6) (21.8) (20.7) 10.1 11.7 Income/(loss) from equity method investment — — — — — — 0.1 — Income/(loss) before equity method
Slide 31: Slide 31