Trivago reports q1 2018 results increase in qualified referrals leads to broadly stable revenues nasdaq trvg

• In the first quarter of 2018, Qualified Referrals increased by 7% to 189.5 million, compared to 177.2 million in the first quarter of 2017. Americas and Rest of World continued to drive qualified referral growth in the first quarter of 2018, increasing to 59.9 million and 59.5 million, respectively. Qualified Referrals in Developed Europe decreased to 70.1 million

• Total revenue in the first quarter of 2018 was broadly stable at €259.4 million, showing a slight decline of 3% year-over-year, compared to €267.6 million in a strong first quarter of 2017. This was due to a decline in commercialization and significant headwinds from foreign exchange effects


Rolf Schrömgens, CEO and Founder , "Over the course of 2017 we invested heavily into building up both our team and technology to promote long-term growth. While impacting our operating costs, we believe the effects of this investment will become increasingly visible. Our product teams continuously make improvements to our platform on the backend, with a strong focus on personalized technologies and user experience. On the brand side, having already established a very high brand awareness globally, our new ad creatives are focused on advancing the user’s understanding of our product’s features in order to further increase usage."

Axel Hefer, CFO , " We managed to grow the usage on our platforms, enabling us to almost match a very strong Q1 17 in terms of revenues. We achieved this despite strong headwinds from currency movements in the Americas and Rest of the World and a drop in commercialization as our advertisers appeared to have increased their profitability targets for their spend on our marketplace compared to the first quarter of 2017."

(1) "Adjusted EBITDA" (Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Share Based Compensation) is a non-GAAP measure. Refer to the "Definitions of Non-GAAP Measures" and "Tabular Reconciliations for Non-GAAP Measures" for explanations and reconciliations of non-GAAP measures.

trivago is a leading global hotel search platform focused on reshaping the way travelers search for and compare hotels and alternative accommodations. Incorporated in 2005 in Düsseldorf, Germany, the platform allows travelers to make informed decisions by personalizing their hotel search and providing them access to a deep supply of hotel information and prices. trivago enables its advertisers to grow their businesses by providing access to a broad audience of travelers via its websites and apps. As of March 31, 2018, trivago has established 55 localized platforms connected to over two million hotels and alternative accommodations, in over 190 countries.

trivago N.V. will webcast a conference call to discuss first quarter 2018 financial results and certain forward-looking information on Wednesday, April 25, 2018 at 8:00 a.m. Eastern Time (ET). The webcast will be open to the public and available via http://ir.trivago.com. trivago N.V. expects to provide access to the webcast on the IR website for at least three months subsequent to the initial broadcast.

QR: We define a qualified referral as a unique visitor per day that generates at least one referral. For example, if a single visitor clicks on multiple hotel offers in our search results in a given day, they count as multiple referrals, but as only one qualified referral.

Referral Revenue: We use the term "referral" to describe each time a visitor to one of our websites or apps clicks on a hotel offer in our search results and is referred to one of our advertisers. We charge our advertisers for each referral on a cost-per-click (CPC) basis.

Adjusted EBITDA is a non-GAAP financial measure. A "non-GAAP financial measure" refers to a numerical measure of a company’s historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with U.S. GAAP in such company’s financial statements. We present this non-GAAP financial measure because it is used by management to evaluate our operating performance, formulate business plans, and make strategic decisions on capital allocation. We also believe that this non-GAAP financial measure provides useful information to investors and others in understanding and evaluating our operating performance and consolidated results of operations in the same manner as our management and in comparing financial results across accounting periods. Our use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results reported in accordance with U.S. GAAP, including net loss. Some of these limitations are:

• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; and

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management’s expectations as of April 25, 2018 and assumptions which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as "intend" and "expect," among others, generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future revenue, expenses, margins, profitability, net income / (loss), earnings per share and other measures of results of operations and the prospects for future growth of trivago N.V.’s business.

as well as other risks and uncertainties detailed in our public filings with the SEC, including trivago’s annual report on Form 20-F for the year ended December 31, 2017. Except as required by law, we undertake no obligation to update any forward-looking or other statements in this release, whether as a result of new information, future events or otherwise.