trivago invests for growth with 67% increase in revenue in the second quarter of 2017
DUSSELDORF, GERMANY – trivago N.V., a global hotel search platform helping travellers find their ideal hotel at the lowest rate, today announced its results for the second quarter of 2017.
trivago reaffirms its full-year guidance following another strong quarter, with significant increases in revenue, adjusted EBITDA and positive net income for the six months ended June 30, 2017. Total revenue increased to 298.3 million euros in the second quarter of 2017 and 565.9 million euros in the six months ended June 30, 2017, or by 67% and 67%, respectively, year-over-year. These increases were driven by an increase in advertising spend in both periods.
Referral revenue in the second quarter of 2017 increased significantly to 115.8 million euros, 120.6 million euros and 58.6 million euros, in Americas, Developed Europe and Rest of World (RoW), respectively, or 67%, 45% and 137%, respectively, as compared to the same period in 2016. This increase was due to strong investment in advertising spend and included continued positive revenue effects from the introduction of our relevance assessment, which assesses the quality of users’ experience after leaving trivago’s website.
Strong referral revenue growth in all segments in the second quarter of 2017 was further positively impacted by reinvestment of profits into advertising spend, particularly in the Developed Europe segment. These drivers also led to solid growth in the six months ended June 30, 2017, with referral revenue increasing 72%, 44% and 134% year-over-year in Americas, Developed Europe and RoW, respectively. The growth in RoW was mainly driven by increased marketing activities in Japan, India and Russia.
At the end of the second quarter of 2017, over 310,000 hoteliers engaged directly with our platform through Hotel Manager, of which over 33,000 subscribed to Hotel Manager Pro. trivago receives a fee for Hotel Manager Pro subscriptions, driving the 74% and 104% growth in Other Revenue in the second quarter and the first six months of 2017, respectively, as compared to the same periods in 2016.
Axel Hefer, CFO, said: “Our focus is on growth and long-term value creation when managing our business. In taking this direction, we have seen strong performance in Q2 2017 as our revenue has increased by 67% year-over-year and our adjusted EBITDA by 39%.”