Financial Data and Key Metrics Changes - The company achieved a 13% year-over-year revenue growth, marking the third consecutive quarter of double-digit growth [3][10] - Adjusted EBITDA improved by 18% year-over-year, reaching EUR 16 million [3][11] - Total revenue for Q3 2025 was EUR 165.6 million, a 13% increase compared to Q3 2024 [10][11] - Net profit for the quarter was EUR 11 million, exceeding expectations [11] - Operational expenses decreased by EUR 12.3 million, totaling EUR 153.4 million, primarily due to the non-recurrence of a EUR 30 million impairment charge from the previous year [11][12] Business Line Data and Key Metrics Changes - Referral revenue growth was 14% in the Americas, 12% in the Rest of the World, and 9% in Developed Europe [10] - The growth was driven by increased branded channel traffic and product improvements enhancing booking conversion [11] Market Data and Key Metrics Changes - Developed Europe faced headwinds from strong prior-year comparisons, but trends normalized over the course of Q3 2025 [10] - Unfavorable foreign exchange headwinds negatively impacted revenue by approximately 4% globally [11] Company Strategy and Development Direction - The company aims to continue its double-digit growth trajectory by focusing on branded growth and enhancing the core hotel search experience [4][5] - Strategic priorities include branded growth, improving marketing efficiency, and creating more value for partners [4][8] - The company plans to optimize existing markets rather than expand, which is expected to gradually increase profitability [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-teens revenue growth for the full year of 2025 and a positive adjusted EBITDA of at least EUR 10 million [10][11] - The company is optimistic about the growth potential in its core markets, which still have substantial runway for growth [25] Other Important Information - The company consolidated Trivago Deals Limited into its operations, viewing it as integral to future growth [14] - AI initiatives have significantly improved user experience and operational efficiency, allowing the company to operate with a smaller team [36][52] Q&A Session Summary Question: What percentage of users could be logged in over the next 12-18 months? - Management indicated that while there is no fixed target, reaching around 30% logged-in users would signify a core user segment with better engagement and conversion [16][18] Question: Could Trivago play a role in the B2B space? - Management acknowledged the potential for B2B opportunities but emphasized a current focus on leisure travel, where they see significant growth potential [20] Question: How should we think about growth in the core business versus Holisto? - Management expects both segments to grow double digits, with a focus on optimizing existing markets for profitability [23][24] Question: What improvements are being seen in marketing efficiency? - The majority of growth is attributed to branded growth, with compounding effects expected to enhance profitability over time [27][28] Question: What incentives are provided to logged-in users? - Logged-in users receive private deals, which significantly improve engagement and conversion rates [29][30] Question: How is Trivago positioned against AI-driven tools? - Management noted that while AI tools are growing, they do not see a significant impact on their traffic, emphasizing the strength of their brand and user experience [33][35] Question: Will the 2026 guidance reflect margin expansion? - Management indicated that the focus will be on optimizing existing markets and taking profits to the bottom line rather than expanding into new markets [41][42] Question: Are there any channel conflicts with OTAs due to Holisto? - Management clarified that Holisto, now Trivago Deals, aims to create value for partners and users without significant channel conflicts [54][56]