Trivago’s Earnings Call Highlights Growth Amid Challenges

Trivago ((TRVG)) has held its Q2 earnings call. Read on for the main highlights of the call.

Trivago’s recent earnings call painted a picture of robust financial health and strategic advancement, with a positive overall sentiment. The company showcased strong revenue growth and successful brand marketing initiatives, alongside innovative AI-powered product developments. Despite challenges such as a net loss and increased operational expenses, the sentiment remained optimistic due to significant achievements and growth potential.

Strong Revenue Growth

Trivago reported a remarkable 17% year-over-year increase in total revenue, marking the third consecutive quarter of growth and the second consecutive quarter of double-digit growth across all segments. This consistent upward trajectory underscores the company’s effective strategies and market positioning.

Geographic Performance

The Rest of the World segment led the charge with an impressive 32% year-over-year growth, followed by Developed Europe at 20% and the Americas at 10%. This geographic performance highlights Trivago’s global reach and adaptability in diverse markets.

Brand Marketing Success

Trivago achieved double-digit branded revenue growth across all geographic segments, supported by a 22% increase in brand marketing spend. This investment translated into an 18% increase in referral revenue, showcasing the effectiveness of their marketing strategies.

AI and Product Innovations

The company launched AI-powered review summaries for over 230,000 hotels in 11 languages and integrated AI Smart Search into the core hotel search experience. These innovations are designed to enhance user experience and streamline the search process.

Holisto Acquisition

Trivago completed the acquisition of Holisto, which is expected to generate low double-digit million euros in revenue for the remaining months of 2025. This acquisition is a strategic move to bolster Trivago’s revenue streams.

Referral Revenue from Logged-In Users

A significant milestone was achieved with 20% of referral revenue now coming from logged-in users, who exhibit conversion rates 25% higher than non-logged-in users. This indicates growing user engagement and loyalty.

Net Loss

The company reported a net loss of EUR 6.5 million, with a better-than-expected adjusted EBITDA loss of EUR 5.1 million. While a challenge, these figures were mitigated by other positive financial indicators.

Operational Expenses Increase

Operational expenses rose by EUR 19.9 million, primarily due to a EUR 21.8 million increase in selling and marketing expenses. This reflects Trivago’s aggressive marketing strategies aimed at sustaining growth.

ROAS Decline

Global ROAS decreased to 119% in Q2 2025 from 122.7% the previous year, with notable reductions in the Americas and Developed Europe. This decline is a point of concern that the company will need to address.

FX Headwinds

FX effects posed a strong headwind, impacting the top line by approximately minus 3%, with the Americas experiencing a more significant impact at minus 7%. This external factor is a challenge for Trivago’s financial outlook.

Forward-Looking Guidance

Trivago maintains a positive outlook for 2025, anticipating mid-teens revenue growth and positive adjusted EBITDA. The company plans to continue scaling brand marketing investments and enhancing user experience through AI innovations. The recent acquisition of Holisto is expected to contribute significantly to revenue, supporting Trivago’s growth ambitions.

In summary, Trivago’s earnings call reflects a company on a strong growth trajectory, driven by strategic marketing and technological innovations. Despite facing challenges such as net loss and FX headwinds, the overall sentiment remains positive, with promising forward-looking guidance and continued investment in key growth areas.