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trivago NV (TRVG)
NASDAQ:TRVG
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trivago
(NASDAQ:TRVG)
60Neutral
Positive Factors
Earnings Surprises
Revenue, adj. EBITDA, and '25 guidance came in better than expected.
Revenue Growth
Trivago's brand marketing initiatives resulted in double digit revenue growth from branded channel traffic across Developed Europe and Rest of World.
Strategic Investments
The noticeable improvement underscores healthy demand, driven by the company’s strategic investments in the branded channel that yielded better user retention and conversion.
Negative Factors
Margin Pressure
Brand investments are likely to weigh on margins.
Profitability Concerns
There are questions around the relevance of the metasearch model and lack of visibility on TRVG's path to profitability.
Regional Revenue Decline
Americas revenue grew -14% YoY, down 26 points vs last quarter, due to headwinds from performance traffic channels and ad format changes made by GOOGL resulting in near-term unfavorable market conditions.
trivago (TRVG) vs. S&P 500 (SPY)
Market Cap
$332.55M
Dividend YieldN/A
Average Volume (3M)120.42K
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth-4.88%
EPS Growth85.67%
CountryUS
Employees668
SectorCommunication Services
Sector Strength78
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.37
Shares Outstanding22,440,207
10 Day Avg. Volume141,008
30 Day Avg. Volume120,417
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.77
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.69Price Target Upside-10.00% Downside
Rating ConsensusHold
Number of Analyst Covering5
trivago Business Overview & Revenue Model
Company Descriptiontrivago N.V., commonly known as trivago, is a leading global hotel and accommodation search platform operating in the online travel industry. Founded in 2005 and headquartered in Düsseldorf, Germany, trivago focuses on empowering travelers to find their ideal hotel at the best available rate by aggregating hotel deals from numerous booking sites worldwide. The platform is accessible through its website and mobile applications, offering a user-friendly experience for comparing prices, availability, and user reviews among millions of hotel listings globally.
How the Company Makes Moneytrivago primarily generates revenue through a Cost-Per-Click (CPC) model, where online travel agencies (OTAs), hotel chains, and independent hotels pay trivago for referrals that lead to potential bookings on their sites. The company acts as a metasearch engine, directing users to partner booking sites where actual reservations are made. Additionally, trivago offers a subscription-based product called 'trivago Business Studio,' which allows hoteliers to enhance their listings with marketing tools and analytics to reach more potential customers. Key partnerships with major OTAs like Booking Holdings and Expedia Group significantly contribute to trivago's revenue, as these partnerships ensure a steady stream of listings and competitive pricing available for trivago's user base.
trivago Financial Statement Overview
Summary
trivago's financial health faces challenges with declining revenues and persistent losses. Despite high gross profit margins indicating effective cost management, negative operating margins and net losses reflect inefficiencies. The balance sheet is stable with low leverage but lacks profitability. Positive cash flow generation from operations is present, yet growth in free cash flow is lacking.Income Statement
trivago's income statement shows declining revenue and profitability. The gross profit margin remains high at around 97.3% in TTM, indicating effective cost management. However, the net profit margin is negative due to persistent net losses, with a TTM net income of -23.7 million. Revenue growth is negative compared to previous periods, which highlights a concerning trend. EBIT and EBITDA margins are also negative, reflecting operating inefficiencies.35
Negative
Balance Sheet
The balance sheet reveals a stable equity position with an equity ratio of approximately 65.7% in TTM, indicating a solid financial base. The debt-to-equity ratio is low at 0.19, suggesting low financial leverage risk. However, the return on equity is negative due to net losses, which is a significant weakness. Overall, the balance sheet shows stability but lacks profitability.45
Neutral
Cash Flow
trivago's cash flow statement highlights a positive operating cash flow of 20.2 million in TTM, indicating sufficient cash generation from operations. However, free cash flow has decreased compared to the previous year, showing a negative growth rate. The operating cash flow to net income ratio is healthy, but free cash flow to net income ratio is constrained by net losses. Overall, cash flow management appears stable, but growth remains a concern.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 460.85M | 485.03M | 535.00M | 361.46M | 248.92M | Gross Profit |
| 449.58M | 473.06M | 522.31M | 349.96M | 238.79M | EBIT |
| -32.15M | -156.59M | 64.45M | 23.68M | -45.03M | EBITDA |
| -24.48M | -147.30M | -120.26M | 10.05M | -252.65M | Net Income Common Stockholders |
| -23.70M | -164.48M | -126.82M | 10.70M | -244.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 133.75M | 127.07M | 293.58M | 256.38M | 227.80M | Total Assets |
| 300.72M | 325.07M | 691.59M | 834.52M | 830.90M | Total Debt |
| 38.43M | 40.73M | 45.27M | 47.54M | 93.17M | Net Debt |
| -95.31M | -61.11M | -203.32M | -208.84M | -115.19M | Total Liabilities |
| 103.11M | 110.05M | 129.86M | 140.74M | 166.38M | Stockholders Equity |
| 197.60M | 215.02M | 561.74M | 693.78M | 664.52M |
| Cash Flow | Free Cash Flow | |||
| 17.45M | 24.29M | 62.29M | 28.75M | 2.37M | Operating Cash Flow |
| 20.25M | 27.80M | 66.27M | 32.54M | 7.87M | Investing Cash Flow |
| 12.22M | 16.29M | -54.91M | 10.02M | -16.19M | Financing Cash Flow |
| -774.00K | -190.44M | -19.62M | 1.05M | -180.00K |
trivago Technical Analysis
Neutral
4.10
Price Trends
3.93
Positive
3.04
Positive
2.48
Positive
Market Momentum
0.24
Positive
45.40
Neutral
40.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRVG, the sentiment is Neutral. The current price of 4.1 is below the 20-day moving average (MA) of 4.46, above the 50-day MA of 3.93, and above the 200-day MA of 2.48, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 40.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRVG.
trivago Risk Analysis
trivago disclosed 57 risk factors in its most recent earnings report. trivago reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
trivago Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $76.10B | 28.89 | 31.95% | ― | 11.95% | -44.02% | |
75 Outperform | $21.66B | 18.58 | 79.84% | ― | 6.64% | 69.85% | |
72 Outperform | $152.07B | 26.84 | -146.32% | 0.76% | 11.11% | 47.03% | |
61 Neutral | $1.98B | 853.64 | 0.55% | ― | 2.63% | -58.77% | |
60 Neutral | $332.55M | ― | -11.75% | ― | -4.88% | 85.67% | |
59 Neutral | $27.87B | 0.90 | -19.24% | 4.15% | 2.11% | -44.59% | |
40 Underperform | $1.18B | ― | 20.22% | ― | 4.19% | 53.84% |
* Communication Services Sector Average
Performance Comparison
TRVG
trivago
4.10
1.08
35.76%
EXPE
Expedia
168.10
35.16
26.45%
BKNG
Booking Holdings
4,606.91
1,067.60
30.16%
TRIP
TripAdvisor
14.17
-13.52
-48.83%
SABR
Sabre
2.81
0.39
16.12%
ABNB
Airbnb
119.46
-43.91
-26.88%
trivago Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 33.99% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with successful revenue growth, strong financial health, and promising brand marketing and AI initiatives. However, challenges in performance marketing channels and a revenue decline in Developed Europe were noted.Highlights
Revenue Growth and Improved Financial Performance
Achieved revenue growth in Q4 2024 with a 5% increase in referral revenue and €11.1 million in adjusted EBITDA, surpassing expectations. Total revenues grew by 3% to €94.8 million.
Successful Brand Marketing and AI Initiatives
Promising results from new AI-powered marketing campaigns with Jürgen Klopp and expansion into 23 key travel markets. Developed AI Smart Search and AI highlights for over 300,000 hotels.
Strong Start to 2025
Reported strong double-digit top line growth in January 2025 across all segments, indicating positive momentum moving forward.
Robust Financial Health
Ended Q4 2024 with over €130 million in cash and no long-term debt, demonstrating strong financial stability.
Lowlights
Challenges in Performance Marketing Channels
Faced challenges in performance marketing channels due to changes in Google advertising formats, leading to volatility and traffic volume losses.
Decline in Developed Europe Revenue
Experienced a 2% decline in revenue in Developed Europe, although it was an improvement from the previous quarter.
Company Guidance
During the trivago Q4 2024 earnings call, the company reported a 5% growth in referral revenue and achieved €11.1 million in adjusted EBITDA, surpassing expectations. The quarter's revenue totaled €94.8 million, marking a 3% increase from the previous year. The company highlighted strong double-digit top-line growth across all segments at the beginning of the current quarter. Trivago aims for at least high single-digit revenue growth in 2025, focusing on AI-powered marketing campaigns and expanding brand marketing in over 23 key travel markets. The company maintains robust financial health with over €130 million in cash and no long-term debt. Operational expenses were managed well, decreasing slightly to €87 million, while advertising spend was strategically reallocated, leading to improved return on ad spend (ROAS). Trivago continues to invest in technology enhancements, including AI-driven search features and a differentiated member proposition to boost user engagement and conversion rates.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.