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trivago NV (TRVG)
NASDAQ:TRVG
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trivago (TRVG) AI Stock Analysis

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TRVG

trivago

(NASDAQ:TRVG)

Rating:57Neutral
Price Target:
$4.00
▲(4.99%Upside)
The overall score for trivago is driven by its financial stability and strong revenue growth as highlighted in the earnings call. However, profitability challenges and negative cash flow trends weigh down the score. While technical indicators suggest mixed sentiment, the company's strategic marketing and growth initiatives provide a positive outlook.
Positive Factors
Financial Performance
The company delivered solid results with total revenue growth turning and EBITDA beating expectations by a wide margin.
Guidance and Estimates
With improving fundamentals, the analyst raises the FY26E EBITDA estimate from €30m to €37m, maintaining Outperform and increasing the price target from $2.50 to $3.50.
Revenue Growth
Trivago's brand marketing initiatives resulted in double digit revenue growth from branded channel traffic across Developed Europe and Rest of World.
Negative Factors
Margin Pressure
Brand investments are likely to weigh on margins.
Performance Marketing Headwinds
Performance marketing headwinds, particularly in Search, partially offset positive results.
Profitability Challenges
There are questions around the relevance of the metasearch model and lack of visibility on TRVG's path to profitability.

trivago (TRVG) vs. SPDR S&P 500 ETF (SPY)

trivago Business Overview & Revenue Model

Company Descriptiontrivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides access to its platform through 53 localized websites and apps in 31 languages. As of December 31, 2021, its hotel search platform offered access to approximately 5.0 million hotels and other types of accommodation worldwide. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. is a subsidiary of Expedia Lodging Partner Services Sarl.
How the Company Makes MoneyTrivago primarily generates revenue through a business model known as cost-per-click (CPC). The company earns money when users click on hotel offers displayed in its search results, redirecting them to partner booking sites, such as online travel agencies and direct hotel websites, where the actual booking transaction takes place. These partners pay Trivago a fee for each user referral, constituting the core of its revenue stream. Additionally, Trivago may generate some revenue from display advertising, although this represents a smaller portion of its overall earnings. Significant partnerships with major global hotel chains and online travel agencies further bolster its financial performance by ensuring a broad range of offers and competitive pricing for its users.

trivago Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: -1.04%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
Trivago's Q1 2025 earnings call reflects a strong focus on growth through successful brand marketing and strategic partnerships. Despite posting a net loss, the company showed substantial revenue growth and advancements in AI, indicating a positive outlook. The increase in operational expenses and a decline in ROAS in the Americas were notable drawbacks.
Q1-2025 Updates
Positive Updates
Revenue Growth
Trivago achieved a 22% year-over-year increase in total revenues for Q1 2025, with strong double-digit growth across all three reporting segments.
Brand Marketing Success
The company's brand marketing investments have been successful, with significant increases in branded channel traffic and improvements in booking conversion rates.
Strategic Partnership with Holisto
Trivago successfully strengthened its strategic partnership with Holisto, which is expected to yield positive results in conversion rates and user experience.
AI and Machine Learning Advancements
Trivago expanded AI-generated hotel highlights to over 350,000 hotels and 11 languages, leveraging machine learning for better tailored search results.
Financial Stability
As of the end of Q1 2025, Trivago has EUR118.6 million in cash and cash equivalents, maintaining a strong financial position with no long-term debt.
Negative Updates
Net Loss Reported
Trivago reported a net loss of EUR7.8 million and an adjusted EBITDA loss of EUR6.5 million for Q1 2025.
Operational Expenses Increase
Operational expenses increased by EUR20.7 million, primarily due to a EUR21.4 million rise in selling and marketing costs.
ROAS Decline in Americas
Return on Advertising Spend (ROAS) in the Americas decreased from 114.5% to 102.7%.
Company Guidance
During Trivago's Q1 2025 earnings call, the company announced a significant acceleration in its momentum, surpassing expectations for both top-line and bottom-line results. The CEO, Johannes Thomas, highlighted that Trivago is raising its full-year revenue growth guidance to mid-teens percentage and anticipates better-than-expected adjusted EBITDA profitability. The CFO, Robin Harries, reported a 22% year-over-year increase in total revenue, reaching EUR124.1 million. Despite a net loss of EUR7.8 million and an adjusted EBITDA loss of EUR6.5 million, Trivago continues to see strong double-digit revenue growth across all regions. The company is increasing its brand marketing investments, resulting in a 31% increase in advertising spend in America, 50% in the rest of the world, and 7% in developed Europe. Trivago's return on advertising spend (ROAS) remained globally stable at 118.1%, with significant improvement in developed Europe. The company maintains a strong financial position with EUR118.6 million in cash and no long-term debt. Trivago is optimistic about its outlook and expects to achieve positive adjusted EBITDA similar to last year's levels, driven by strategic brand marketing investments and product enhancements.

trivago Financial Statement Overview

Summary
trivago's financial overview presents a mixed picture. The company maintains a strong equity position with low leverage, but it struggles with profitability, evidenced by negative net income and EBIT margins. Cash flow generation is positive but declining, indicating potential challenges in sustaining operational liquidity. Improving profitability and reversing negative cash flow trends are critical for future growth.
Income Statement
55
Neutral
trivago's TTM revenue shows modest growth compared to the previous annual report, but profitability remains a concern with negative EBIT and net income margins. The gross profit margin is strong, indicating effective cost management relative to revenue. However, the negative net profit and EBIT margins highlight ongoing challenges in achieving operational profitability.
Balance Sheet
65
Positive
trivago maintains a healthy balance sheet with a strong equity ratio, indicating a solid financial foundation. The debt-to-equity ratio is low, suggesting manageable leverage levels. However, the declining stockholders' equity over recent periods and the decrease in total assets warrant attention. Overall, the balance sheet reflects stability with potential risks if equity continues to decline.
Cash Flow
60
Neutral
Cash flow performance is mixed, with a decline in free cash flow compared to previous periods. The operating cash flow remains positive but has decreased from the prior year, and the free cash flow growth rate is negative. The company demonstrates an ability to generate operating cash flow, though the declining trend in free cash flow could impact future flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue460.85M485.03M535.00M361.46M248.92M
Gross Profit449.58M473.06M522.31M349.96M238.79M
EBITDA-24.48M-147.30M-120.26M10.05M-252.65M
Net Income-23.70M-164.48M-126.82M10.70M-244.64M
Balance Sheet
Total Assets300.72M325.07M691.59M834.52M830.90M
Cash, Cash Equivalents and Short-Term Investments133.75M127.07M293.58M256.38M227.80M
Total Debt38.43M40.73M45.27M47.54M93.17M
Total Liabilities103.11M110.05M129.86M140.74M166.38M
Stockholders Equity197.60M215.02M561.74M693.78M664.52M
Cash Flow
Free Cash Flow17.45M24.29M62.29M28.75M2.37M
Operating Cash Flow20.25M27.80M66.27M32.54M7.87M
Investing Cash Flow12.22M16.29M-54.91M10.02M-16.19M
Financing Cash Flow-774.00K-190.44M-19.62M1.05M-180.00K

trivago Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.81
Price Trends
50DMA
3.97
Negative
100DMA
4.11
Negative
200DMA
3.30
Positive
Market Momentum
MACD
-0.04
Negative
RSI
50.99
Neutral
STOCH
85.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRVG, the sentiment is Positive. The current price of 3.81 is above the 20-day moving average (MA) of 3.70, below the 50-day MA of 3.97, and above the 200-day MA of 3.30, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 85.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$935.19M24.9832.17%113.43%
73
Outperform
$2.24B16.6919.74%5.93%29.17%
73
Outperform
$1.53B23.929.18%4.53%26.71%-23.67%
62
Neutral
$42.18B-1.56-12.06%2.81%2.10%-71.01%
57
Neutral
$274.47M-11.66%0.77%87.59%
56
Neutral
$363.54M25.25-1.00%0.82%-102.72%
54
Neutral
$719.27M-18.77%12.01%35.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TRVG
trivago
3.81
1.73
83.17%
YELP
Yelp
34.70
-1.83
-5.01%
EVER
EverQuote
25.71
-0.05
-0.19%
OPRA
Opera
17.20
5.72
49.83%
SEAT
Vivid Seats
1.70
-3.28
-65.86%
NXDR
Nextdoor Holdings
1.88
-0.99
-34.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 23, 2025