trivago Marks Turning Point, Gears Up for Accelerated Growth in 2025

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]