trivago (TRVG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 7% year-over-year to EUR 146.1 million, with solid branded revenue growth in Developed Europe and Rest of World, while Americas faced temporary headwinds from softer demand and reduced TV reach due to major sports and political events.

• Net loss for Q3 2024 was EUR 15.4 million, primarily due to a EUR 30 million impairment charge, significantly improved from EUR 182.6 million loss in Q3 2023.

• Adjusted EBITDA for Q3 2024 was EUR 13.6 million, down 15% year-over-year, moving closer to break-even for the full year.

• Strategic priorities include branded growth, improved hotel search experience, enhanced deal coverage, and empowering partners.

• Launched a new AI-driven marketing campaign with Jürgen Klopp as brand ambassador and expanded AI-powered hotel highlights to 250,000 hotels across 27 markets.

Financial highlights

• Q3 2024 total revenue was EUR 146.1 million, a 7% decline year-over-year; nine-month revenue was EUR 366.1 million, down 7% year-over-year.

• Referral revenues: Rest of World up 9%, Developed Europe down 8%, Americas down 14%.

• Net loss of EUR 15.4 million, including a EUR 30 million intangible asset impairment; nine-month net loss was EUR 28.8 million.

• Adjusted EBITDA was EUR 13.6 million, compared to EUR 16.0 million in Q3 2023; nine-month Adjusted EBITDA was a loss of EUR 0.9 million.

• Cash, cash equivalents, and restricted cash totaled EUR 108 million as of September 30, 2024.

Outlook and guidance

• Expecting year-over-year top-line growth in Q4 2024 and sustainable growth in 2025, with full-year 2024 adjusted EBITDA expected to be close to break-even.

• 2025 adjusted EBITDA expected to be similar to 2024, with double-digit revenue growth in the medium term.

• Q4 2024 showing positive growth in Americas and Rest of World, with improvements in Developed Europe.

• 2025 revenue growth expected to be closer to 10% than 0%, driven by branded revenue and better comps.