Trivago N.V. (NASDAQ:TRVG) Q1 2025 Earnings Conference Call April 30, 2025 8:15 AM ET Company Participants Johannes Thomas - CEO Robin Harries - CFO Conference Call Participants Naved Khan - B. Riley Securities Tom White - D.A. Davidson Dae Lee - JPMorgan Operator Good day, ladies and gentlemen. Thank you for standing by and welcome to the Trivago Q1 Earnings Call 2025. I must advise you the call is being recorded today, Wednesday the April 30, 2025. We are pleased to be joined on the call today by Johannes ...

Financial Data and Key Metrics Changes - Trivago reported a total revenue of €124.1 million for Q1 2025, representing a 22% year-over-year increase compared to Q1 2024 [12][13] - The company experienced a net loss of €7.8 million and an adjusted EBITDA loss of €6.5 million, which was better than internal expectations [14][15] - Operational expenses increased by €20.7 million to €133.7 million, primarily due to a €21.4 million increase in selling and marketing expenses [15][16] - Cash and cash equivalents stood at €118.6 million with no long-term debt, indicating a strong financial position [16] Business Line Data and Key Metrics Changes - Referral revenues grew by 44% in the Rest of World segment, 19% in Developed Europe, and 18% in the Americas, driven by increased branded channel traffic and booking conversion improvements [14][15] - The company observed a stable Return on Advertising Spend (ROAS) globally at 118.1%, with notable improvements in Developed Europe [16] Market Data and Key Metrics Changes - Average Daily Rates (ADRs) were up across all segments, with a slight increase in length of stay in the Americas and Developed Europe, while remaining stable in the Rest of the World [22][23] - Search interest showed strong demand across all segments in Q1, with geo shifts noted but overall healthy global demand [24] Company Strategy and Development Direction - Trivago's strategic priorities include brand marketing, enhancing the hotel search experience, and empowering partners [5][8] - The company is focused on scaling brand marketing investments, particularly in the U.S., Brazil, and Japan, to drive revenue growth [4][12] - Investments in AI and machine learning are expected to transform the hotel search experience and improve user engagement [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for 2025, raising full-year revenue growth guidance to mid-teens percentage and anticipating positive adjusted EBITDA in the latter half of the year [4][16] - The company is confident in its ability to navigate potential macroeconomic slowdowns due to its focus on cost-conscious consumers [67] Other Important Information - The acquisition of Hollisto was completed, which is expected to enhance conversion rates and user experience on the platform [27][31] - A leadership change was announced, with the departure of CFO Robin Harris and the appointment of Dr. Wolff Schmull as the new CFO [75][76] Q&A Session Summary Question: Trends in U.S. vs. Other Markets - Management noted strong double-digit growth in all regions, with slight differences in consumer behavior and traffic patterns [21][22] Question: Commentary on Hollisto Acquisition - The acquisition aims to simplify operations and enhance conversion rates through the integration of Hollisto's offerings [27][31] Question: AI Risks and Opportunities - Management discussed the potential of AI to enhance user experience while acknowledging the competitive landscape posed by AI hyperscalers [35][39] Question: Brand Investment Impact - There is a compounding effect from brand investments that positively influences non-branded channels, leading to improved click-through rates [40][42] Question: Hotel Search Performance and AI Highlights - Initial learnings from AI-generated hotel highlights indicate a focus on unique features to enhance user engagement and conversion rates [45][46] Question: Full Year Guidance Upside - The guidance was increased due to strong Q1 performance and the potential for scaling brand marketing investments across all segments [59][63]

Core Insights - trivago N.V. reported a strong financial performance in Q1 2025, with total revenue increasing by 22% to €124.1 million and referral revenue growing by 23% to €123.4 million compared to the same period in 2024 [6][10][21] - The company has revised its full-year revenue growth guidance upward to the mid-teens percentage range, reflecting a strong growth trajectory and improved Adjusted EBITDA profitability [4][15] - The positive momentum continued into April 2025, with strong double-digit growth observed [5][12] Financial Performance - Total revenue for Q1 2025 was €124.1 million, up from €101.4 million in Q1 2024, marking a 22% year-over-year increase [6][10] - Referral revenue reached €123.4 million, a 23% increase from €100.2 million in the prior year [6][21] - The net loss decreased by 7% to €7.8 million, while Adjusted EBITDA loss improved by 29% to €6.5 million compared to Q1 2024 [6][44] Revenue Breakdown - Referral revenue growth was observed across all segments: Americas (18%), Developed Europe (19%), and Rest of World (44%) [7][21] - The company generated 35% of its referral revenue from Expedia Group brands and 40% from Booking Holdings brands in Q1 2025 [25] Advertising and Marketing - Advertising spend increased by 24% to €104.5 million in Q1 2025, driven by brand marketing investments across all segments [28][29] - The global Return on Advertising Spend (ROAS) was stable at 118.1%, slightly down from 119.2% in the previous year [11][30] Cost Structure - Total costs and expenses rose by 18% to €133.7 million in Q1 2025, primarily due to increased selling and marketing expenses [32][34] - Selling and marketing expenses accounted for €110.2 million, with €104.5 million attributed to advertising spend [34][36] Cash Flow and Balance Sheet - Total cash, cash equivalents, and restricted cash decreased to €118.6 million as of March 31, 2025, down from €134.1 million at the end of 2024 [45] - Cash used in operating activities was €14.1 million, contributing to the overall cash decrease [46]

Erivago Turning the Tide Investor Presentation Q1 2025 29 April 2025 Disclaimer 41 df f the infornation heed has been presened du tincao N.V.V the Comaru ! Seeleufru sei nthis resentation. The intrreation nor not been nice eartation has not been nice express or inqtited, is yrada as to, and nor elimos strude be places on, the fairness, accuracu, corndebeness or correstotes of the infornation or the opinions op artained the cortend of the cricumstation as prevalling at time and has not been and will not be u ...

DÜSSELDORF, Germany, April 15, 2025 – trivago N.V. (NASDAQ: TRVG) is pleased to announce the appointment of Dr. Wolf Schmuhl as the company's new Chief Financial Officer, effective June 1, 2025. Dr. Schmuhl has proven himself during his tenure at trivago and is a natural fit for the role, bringing a wealth of experience in finance, strategic development, and leadership. "We are pleased to announce Wolf's appointment as CFO. Wolf brings deep financial expertise and proven leadership abilities to our team. ...

  trivago N.V.'s First Quarter 2025 Earnings Release Scheduled for April 29, 2025; Webcast Scheduled for April 30, 2025   DÜSSELDORF, GERMANY – April 14, 2025 - trivago N.V. (NASDAQ:TRVG) announced today that it will release its financial results for the first quarter for the period ended March 31, 2025 on Tuesday, April 29, 2025 after market close. On Wednesday, April 30, 2025, trivago N.V.'s management will conduct a webcast beginning at 2:15 PM CEST / 8:15 AM EDT. These items will be available in the In ...

Financial Performance - The company recorded an impairment charge of €30.0 million to its indefinite-lived intangible assets in Q3 2024 due to a decline in revenue compared to the prior year[45]. - In the year ended December 31, 2024, trivago generated revenue of €460.8 million, with a net loss of €23.7 million and Adjusted EBITDA of €10.2 million[171]. - The company has a remaining intangible asset balance of €45.3 million as of December 31, 2024, which may be subject to further impairments[45]. Advertising and Marketing Strategy - The company has significantly reduced television advertising since 2020 but resumed investments in late 2023, expecting short-to-medium term negative impacts on profitability[31][32]. - The company is pursuing a strategy to increase brand marketing investments to boost direct traffic, although this may not guarantee revenue growth and could reduce profits[30][32]. - The primary operating metric for trivago is Return on Advertising Spend (ROAS) Contribution, which compares Referral Revenue to Advertising Spend[167]. - The company focuses on building brand awareness through various media channels, including TV marketing and social media engagement[177]. - Trivago's marketing strategy incorporates AI technology to enhance advertising effectiveness and has produced localized TV advertisements in over ten languages[175]. Competition and Market Dynamics - The company relies heavily on a small number of advertisers, with major revenue contributions from brands affiliated with Booking Holdings and Expedia Group, making it vulnerable to changes in their spending strategies[38][40]. - The company faces increased competition from search engines like Google, which promotes its own hotel search platform, negatively impacting traffic volumes to the company's platform[36][37]. - The company has observed higher competition and prices in keyword auctions, particularly affecting traffic volumes in the Americas and Developed Europe segments in 2024[35]. - The company anticipates continued declines in traditional television viewership, prompting investments in digital channels, which may yield lower marginal returns on advertising spend[34]. Economic and Regulatory Environment - The company’s financial condition is significantly dependent on general economic conditions, with potential declines in travel or discretionary spending adversely affecting demand for its services[44]. - Climate change may disrupt travel patterns and affect consumer preferences, potentially harming the company's business[59]. - Regulatory scrutiny on online travel companies may lead to increased compliance costs and impact the company's business practices and competitiveness[61]. - The company faces increased complexity and uncertainty due to the proliferation of data protection regulations, which may lead to significant compliance costs and potential penalties[67]. Technology and Data Management - The company is facing challenges from the rapid advancement of AI/ML technologies, which could disrupt the online travel industry and require significant resource investment to remain competitive[47]. - The company must continuously invest in and adapt its information technology systems to maintain competitiveness, which may not always be cost-effective[96]. - The company processes a large amount of user and advertiser data, utilizing proprietary algorithms to enhance platform performance and user experience[217]. - Trivago is enhancing the hotel search process by integrating AI features, including personalization algorithms and AI Smart Search, to improve user experience[197]. Corporate Governance and Structure - Expedia Group owned Class B shares representing 59.5% of issued shares and 84.0% of voting power as of December 31, 2024[108]. - The dual-class share structure allows Class B shares to have ten votes per share compared to one vote per Class A share, limiting influence of Class A shareholders[124]. - The company is not obligated to comply with all best practice provisions of the Dutch Corporate Governance Code, which may affect shareholder rights[122]. - The company has delegated considerable operational autonomy to employees, which may lead to poor decision-making due to inexperience[102]. Risks and Liabilities - The company faces reputational risks that could materially affect its business and financial condition due to negative publicity and regulatory investigations[101]. - Counterparty default risks are significant, especially with major advertisers like Booking Holdings and Expedia Group, which could lead to increased credit losses[58]. - The company is subject to potential liabilities and increased costs related to evolving ESG regulations, which may impact its financial performance and reputation[78]. - The company is exposed to currency fluctuations, which can impact advertising spend and revenue, particularly as a large portion of advertising expenses are incurred in local currencies[56]. Operational Challenges - The company faces cybersecurity threats that could lead to significant operational disruptions and reputational harm, as it has experienced cyber-related fraud and denial-of-service attacks in the past[90][91]. - The company has identified a material weakness in its internal control over financial reporting, which could lead to material misstatements and loss of investor confidence[87]. - The company may face difficulties in implementing new business and financial systems, which could lead to deficiencies in internal controls and adversely affect its financial condition[88]. Future Outlook - The company expects a multi-year effort to rebuild its branded visitor baseline, optimizing marketing investments for better efficiency over time[196]. - Future strategies may include offering alternative hotel listing products to ensure competitive rate coverage globally, although success is not guaranteed[50]. - The company is exploring changes to its business structures to manage operational and financial risks while making services more financially attractive to customers[145].

Financial Data and Key Metrics Changes - Total revenues grew by 3% to €94.8 million in Q4 2024 compared to the same period in 2023, primarily driven by a 5% increase in referral revenue [22][24] - Adjusted EBITDA reached €11.1 million, exceeding expectations due to higher-than-expected revenue growth and more efficient marketing [6][27] - The company reported a net income of €5.1 million for Q4 2024 [27] Business Line Data and Key Metrics Changes - Referral revenues in the Rest of World segment increased by 15%, while the Americas experienced an 8% increase, and Developed Europe showed a 2% decline [25] - Brand investment efforts yielded positive results, particularly in Developed Europe and Rest of World segments, achieving double-digit revenue growth from branded channel traffic year-over-year [25] Market Data and Key Metrics Changes - The company is well positioned in a market estimated to be over €1.5 trillion in size, with significant potential for brand investment growth compared to pre-COVID levels [14][15] - U.S. travelers using trivago to compare prices have a good chance of saving up to 40%, indicating a strong value proposition in a price-conscious market [17] Company Strategy and Development Direction - The company aims to focus on three strategic pillars: brand marketing, core hotel search product improvement, and empowering partners through initiatives like trivago Book & Go [17][19] - The company plans to invest in AI-powered marketing campaigns and enhance user experience through continuous product improvements [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about travel demand remaining solid and healthy, with expectations of at least high single-digit revenue growth in 2025 [30] - The company is committed to a disciplined investment strategy, prioritizing growth over immediate profitability [48] Other Important Information - The company has over €130 million in cash and no long-term debt, maintaining robust financial health [23] - The company has implemented a performance-driven culture and established a company-wide AI infrastructure to enhance productivity [10][12] Q&A Session Summary Question: What needs to happen for the company to accelerate growth into double digits? - Management indicated that strong brand investments and product improvements are key drivers for performance, with opportunities to scale brand marketing investments [36][37] Question: Will brand campaigns expand into new markets or increase spending in current markets? - Management confirmed that there are opportunities to enter new markets while also scaling investments in existing markets [38] Question: What is the outlook for profitability while ramping brand investments? - Management stated that achieving growth is prioritized over immediate profitability, with a focus on brand marketing and product improvements [48][49] Question: What are the early learnings from the AI Smart Search feature? - Management highlighted that AI Smart Search offers a new way of searching for hotels, with positive feedback expected as user behavior gradually changes [52][56] Question: How does the differentiated member proposition differ from traditional loyalty programs? - Management explained that the focus is on providing better prices for logged-in users without a traditional loyalty program structure, enhancing value for price-conscious travelers [60][62] Question: What is the status of the Holisto partnership and the potential to purchase remaining equity? - Management expressed satisfaction with the Holisto partnership and indicated that a decision on purchasing remaining equity would depend on the delivery of agreed objectives [64][66]

Core Insights - The company achieved a 3% top-line growth in Q4 2024, with Adjusted EBITDA of €11.1 million, indicating a return to profitable growth [4][10][12] - Strong cash balance of over €130 million and no long-term debt positions the company well for future growth [5][19] - The company expects high single-digit revenue growth for the full year 2025 and aims for at least breakeven Adjusted EBITDA [19][64] Financial Performance - Total revenue for Q4 2024 was €94.8 million, a 3% increase from €91.7 million in Q4 2023 [6][10] - Referral Revenue grew by 5% to €93.5 million in Q4 2024, while net income increased by 104% to €5.1 million [10][12] - Adjusted EBITDA rose by 52% to €11.1 million in Q4 2024 compared to €7.3 million in Q4 2023 [10][64] Revenue Breakdown - Revenue from the Americas segment increased by €2.7 million in Q4 2024 but decreased by €2.8 million for the full year [29] - Developed Europe saw a decline in Referral Revenue by €0.6 million in Q4 2024 and €23.6 million for the full year [30] - The Rest of World segment experienced a €2.6 million increase in Q4 2024 and a €5.8 million increase for the full year [31] Advertising and Marketing - Total Advertising Spend increased by €0.2 million in Q4 2024 and €22.2 million for the full year, driven by higher brand marketing investments [38][39] - Return on Advertising Spend (ROAS) improved globally by 7.5 percentage points in Q4 2024 compared to the same period in 2023 [40] - The company plans to continue investing in brand marketing to sustain growth momentum [18][19] Cost Management - Operating expenses remained stable at €87.0 million in Q4 2024 compared to €87.3 million in Q4 2023 [15][45] - Selling and marketing expenses increased by €22.6 million for the full year, primarily due to higher advertising costs [46] - General and administrative expenses decreased by €0.5 million in Q4 2024 and €5.6 million for the full year [53] Balance Sheet and Cash Flow - Total cash and cash equivalents increased to €134.1 million as of December 31, 2024, from €102.2 million a year earlier [65] - Cash provided by operating activities was €20.3 million, driven by a positive change in operating assets and liabilities [66] - The company recorded an impairment charge of €30.0 million to indefinite-lived intangible assets during the year [64][54]

Exhibit 99.1 Operating and Financial Review DÜSSELDORF, GERMANY - February 4, 2025 – trivago N.V. (NASDAQ: TRVG) (the "Company", "we," "us," "our," or "trivago,") announced financial results for the fourth quarter ended December 31, 2024. Highlights: "In the fourth quarter of 2024, we reached a turning point towards sustainable growth. We are excited to share that in the last quarter, we achieved a 3% top-line growth while delivering €11.1 million in Adjusted EBITDA, both exceeding our expectations. Our bra ...