Earnings Review and Free Research Report: trivago’s Revenue Soared 67%; Net Loss Narrowed

Research Desk Line-up: JMU Ltd Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on trivago N.V. (NASDAQ: TRVG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TRVG, following the Company’s posting of its second quarter fiscal 2017 financial results on August 04, 2017. The global hotel-search platform missed earnings expectations, driven by an increase in advertising spend. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Internet Information Providers industry. Pro-TD has currently selected JMU Ltd (NASDAQ: JMU) for due-diligence and potential coverage as the Company announced on August 16, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on JMU Ltd when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TRVG; also brushing on JMU. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the quarter ended June 30, 2017, trivago’s total revenue surged 67% to €298.3 million compared to €179.0 million in Q2 2016.

For Q2 2017, trivago’s cost of revenue was €1.4 million; almost flat on a y-o-y basis. In the reported quarter, the Company’s selling and marketing expenses grew to €275.3 million, of which €260.1 million, or 94%, were advertising expenses. The increase was driven by higher advertising spend across all regions with €99.4 million, €97.3 million, and €63.4 million spent in Americas, Developed Europe, and Rest of the World (RoW), respectively, compared to €61.0 million, €65.1 million, and €28.3 million, respectively, spent in Q2 2016. trivago’s selling and marketing expenses were 92% of revenues for Q2 2017, up from 87% in Q1 2017, as net income from the previous quarter was reinvested into TV and performance marketing in developed Europe to contribute to revenue growth in that segment.

trivago’s net loss decreased to €3.4 million in Q2 2017, from €49.9 million in Q2 2016. On a per share basis, the Company recorded a loss of €0.01 versus Wall Street’s expectations for income of €0.02 per share.

trivago’s adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was €3.2 million in Q2 2017 compared to €2.3 million in Q2 2016; reflecting an increase of 39% on a y-o-y basis.

Business Metrics

During Q2 2017, trivago’s number of Qualified Referrals (QRs) increased by 59% to 196.4 million compared to 123.3 million in Q2 2016. The Company’s revenue per QRs grew 4% and 5% during the reported quarter and six months ended June 30, 2017, respectively, compared to the same periods in 2016.

trivago’s QRs reported growth in all segments with 52.0 million, 82.1 million, and 62.4 million QRs in the Americas, Developed Europe, and RoW, respectively, in Q2 2017. At the end of the reported quarter, over 310,000 hoteliers engaged directly with trivago’s 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% growth in Other Revenue in Q2 2017 compared to the same period in 2016. As of June 30, 2017, trivago offered access to over 1.8 million hotels in over 190 countries.

Balance sheet, Cash Flows, and Capitalization

As of June 30, 2017, trivago’s cash, cash equivalents, and restricted cash were €217.2 million compared to €228.2 million as of December 31, 2016. The decline was attributed to an increase in accounts receivable versus accounts payable in H1 2017. The Company’s accounts receivable increased by €90.1 million, or 169%, as of June 30, 2017, compared to December 31, 2016, driven by strong revenue growth, but also by a standardization of related party payment terms which delayed the Company’s receipt of related party revenue until after month-end close.

trivago’s accounts payable increased by €67.5 million, or 169%, as of June 30, 2017, compared to December 31, 2016, due to the seasonal ramp-up in advertising expenses, which raised €135.8 million, or 109%, in Q2 2017, compared to Q4 2016. As a result, trivago’s current ratio decreased from 4.8 at the end of Q4 2016, to 2.8 at the end of Q2 2017.

trivago noted that its plan to move into a newly leased campus building in Düsseldorf`s media harbor results in a steadily increasing capitalization on the balance sheet of capital lease costs, amounting to €58.1 million as of June 30, 2017, compared to €35.7 million as of December 31, 2016.

Stock Performance

At the closing bell, on Wednesday, August 23, 2017, trivago’s stock was marginally down 0.90%, ending the trading session at $15.45. A total volume of 1.02 million shares have exchanged hands. The Company’s stock price rallied 19.03% in the past six months. Moreover, the stock soared 31.49% since the start of the year. The stock is trading at a PE ratio of 1287.50 and currently has a market cap of $3.72 billion.

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