trivago Reports 17% Growth in Second Consecutive Quarter of Strong Performance

Core Insights - trivago N.V. reported a strong financial performance with a 17% year-over-year revenue growth for Q2 2025, marking the third consecutive quarter of growth and the second consecutive quarter of double-digit growth across all segments [4][9][10] - The company achieved an 18% increase in Referral Revenue, reaching €138.5 million, driven by branded channel traffic growth [6][9][10] - The acquisition of Holisto Ltd. is expected to enhance user experience and contribute low double-digit million euro revenue in 2025 [5][13] Financial Summary - Total revenue for Q2 2025 was €139.3 million, up from €118.6 million in Q2 2024, reflecting a 17% increase [6][9] - Referral Revenue increased to €138.5 million from €117.2 million, an 18% rise year-over-year [6][21] - Net loss for Q2 2025 was €6.5 million, compared to €4.9 million in Q2 2024, while Adjusted EBITDA loss improved to €5.1 million from €5.4 million [6][49] Revenue Growth by Segment - Revenue growth was driven by a 10% increase in the Americas, 20% in Developed Europe, and 32% in Rest of World [9][21] - Logged-in users contributed 20% of total Referral Revenue, indicating progress in user engagement [9][10] Advertising Spend and Efficiency - Advertising Spend increased by 22% year-over-year to €116.4 million in Q2 2025, reflecting a disciplined approach to marketing investments [12][26] - Return on Advertising Spend (ROAS) was 119.0%, down from 122.7% in Q2 2024, indicating a slight decrease in advertising efficiency [6][30] Cost Structure - Total costs and expenses for Q2 2025 were €147.3 million, up from €127.4 million in Q2 2024, primarily due to increased selling and marketing expenses [32][49] - Selling and marketing expenses rose by €21.8 million year-over-year, with Advertising Spend representing 94% of total selling and marketing expenses [35][36] Outlook - The company anticipates continued double-digit revenue growth for Q3 2025, although at a rate below Q2 2025 [15] - For the full year 2025, trivago expects total revenue growth in the mid-teens percentage range year-over-year [15]