TRVG Q3 2022 Earnings

Call Details

• Call Title: Trivago Q3 2022 Earnings Call
• Date: November 2, 2022 at 12:15 PM UTC
• Management Team:
  • Axel Hefer (Chief Executive Officer)
  • Matthias Tillmann (Chief Financial Officer)

Call Summary

Financial Performance

• Adjusted EBITDA for Q3 2022 was €33.5 million, the highest quarterly adjusted EBITDA in company history.
• Adjusted EBITDA for the first nine months of 2022 was €84.8 million, compared to €51.5 million in the same period in 2019, an increase of 64%.
• Adjusted EBITDA for the last 12 months was €104.4 million with a margin of 20%, meeting the stated long-term margin goal over a 12-month period.
• The company now expects full-year 2022 adjusted EBITDA to exceed €100 million, which is significantly higher than full-year 2019 adjusted EBITDA of €69.9 million.
• Referral revenue increased 33% year-on-year in Q3 2022 as a result of higher average booking values, higher quality traffic, and healthy auction dynamics.
• The company reported a net loss of €67.1 million in Q3 2022 due to a non-cash impairment charge of €100.4 million, comprising €52.8 million of intangible asset impairments and €47.6 million of goodwill impairment.

Bookings Growth & Mix

• Qualified referrals remained stable at above 60% of 2019 levels on a global basis and increased approximately 20% sequentially in Q3, with the highest absolute qualified referral volume in July.
• Global revenue per qualified referral was up 16% versus 2019, driven mainly by higher average booking values.
• Referral revenue relative to 2019 improved from 64% in Q2 to 73% in Q3 on a global basis.
• In developed Europe, qualified referrals were 73% of 2019 levels, down from 79% in Q2 2022.
• In the Americas, qualified referrals were around 60% of 2019 levels and revenue per qualified referral increased 32% versus 2019, driven by higher ADRs and positive currency effects.
• In Rest of World, qualified referrals were 52% of 2019 levels and revenue per qualified referral was 88% of 2019 levels, with currency headwinds of around 10% cited as a drag.