trivago N.V.(US:TRVG)2025-08-06 13:15Financial Data and Key Metrics Changes - The company reported a total revenue of €139.3 million for Q2 2025, representing a 17% year-over-year increase, marking the third consecutive quarter of growth [18] - Referral revenue increased by 18%, driven by sustained branded traffic growth while maintaining a stable return on advertising spend [16] - The company reported a net loss of €6.5 million and an adjusted EBITDA loss of €5.1 million, similar to the previous year's performance [19] Business Line Data and Key Metrics Changes - Referral revenues grew by 32% in the Rest of the World, 20% in Developed Europe, and 10% in the Americas, primarily driven by increased branded channel traffic [19] - The company achieved a milestone of generating 20% of referral revenue from logged-in users, indicating progress in fostering user loyalty [11][17] Market Data and Key Metrics Changes - Geographic performance showed robust growth across all regions, with the Rest of the World leading at 32% year-over-year growth, followed by Developed Europe at 20% and the Americas at 10% [4] - The company faced a foreign exchange headwind that affected the top line by approximately -3%, with a stronger impact of -7% in the Americas [25][26] Company Strategy and Development Direction - The company is focused on three strategic priorities: brand marketing, enhancing the core hotel search experience, and empowering partners [5][12] - Brand marketing investments are expected to continue driving returns, with a commitment to further expand these investments [6] - The acquisition of Hollisto is aimed at enhancing the user experience and expanding the trivago branded booking funnel [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-teens percentage revenue growth for the full year of 2025 despite economic uncertainties and foreign exchange headwinds [16][17] - The company anticipates positive adjusted EBITDA in the third and fourth quarters of the year [20] Other Important Information - Operational expenses increased by €19.9 million, totaling €147.3 million for the second quarter, primarily due to higher brand marketing investments [20] - The company maintained a solid global return on advertising spend (ROAS) at 119% for Q2, slightly down from 122.7% in the prior year [21] Q&A Session Summary Question: What was the FX impact for Q2 results? - The FX effect was a strong headwind affecting the top line by approximately -3%, with a -7% impact in the Americas [25][26] Question: What is the growth runway for brand investments? - The company has seen a 22% spend increase year-on-year and an 18% referral revenue increase, indicating effective brand strategy and significant upside potential [26] Question: What differences exist between logged-in and logged-out users? - Logged-in users show a 25% higher conversion rate, and the company is encouraging logins through exclusive deals and features [34][35] Question: What gives confidence for revenue growth acceleration in Q3? - Despite FX effects impacting July, strong double-digit branded traffic growth and branded revenue growth in July support confidence in achieving double-digit growth [36][39] Question: What are the early learnings from partnerships with the Book and Go product? - Early partnerships have shown significant double-digit conversion improvements, making partners more competitive in the marketplace [42][43]