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trivago NV (TRVG)
NASDAQ:TRVG
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trivago
(NASDAQ:TRVG)
Rating:64Neutral
Price Target:―
Positive Factors
Brand Marketing
Trivago's brand marketing initiatives resulted in double digit revenue growth from branded channel traffic across Developed Europe and Rest of World.
Financial Performance
The company delivered solid results with total revenue growth turning and EBITDA beating expectations by a wide margin.
Product Initiatives
Management highlighted several product initiatives that could drive continued conversion rate improvements, including AI-powered highlights, AI Smart Search, and Book & Go.
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 Concerns
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)
Market Cap
$323.03M
Dividend YieldN/A
Average Volume (3M)203.01K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth0.77%
EPS Growth87.59%
CountryUS
Employees668
SectorCommunication Services
Sector Strength81
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.02
Shares Outstanding22,881,096
10 Day Avg. Volume95,485
30 Day Avg. Volume203,011
Financial Highlights & Ratios
PEG Ratio-4.19
Price to Book (P/B)1.64
Price to Sales (P/S)0.00
P/FCF Ratio32.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.88Price Target Upside12.18% Upside
Rating ConsensusHold
Number of Analyst Covering5
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 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 shows a solid gross profit margin but struggles with profitability, as evidenced by negative net income and EBIT margins. The balance sheet reflects low leverage and a strong equity position, though the decline in equity and assets is concerning. Cash flow generation is positive but has shown a downward trend, suggesting potential challenges in sustaining operational liquidity.Income Statement
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.55
Neutral
Balance Sheet
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.65
Positive
Cash Flow
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.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 483.53M | 460.85M | 485.03M | 535.00M | 361.46M | 248.92M | Gross Profit |
| 472.57M | 449.58M | 473.06M | 522.31M | 349.96M | 238.79M | EBIT |
| -30.15M | -32.15M | -156.59M | 64.45M | 23.68M | -45.03M | EBITDA |
| -22.41M | -24.48M | -147.30M | -120.26M | 10.05M | -252.65M | Net Income Common Stockholders |
| -23.11M | -23.70M | -164.48M | -126.82M | 10.70M | -244.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 118.59M | 133.75M | 127.07M | 293.58M | 256.38M | 227.80M | Total Assets |
| 301.97M | 300.72M | 325.07M | 691.59M | 834.52M | 830.90M | Total Debt |
| 37.85M | 38.43M | 40.73M | 45.27M | 47.54M | 93.17M | Net Debt |
| -80.74M | -95.31M | -61.11M | -203.32M | -208.84M | -115.19M | Total Liabilities |
| 110.93M | 103.11M | 110.05M | 129.86M | 140.74M | 166.38M | Stockholders Equity |
| 191.05M | 197.60M | 215.02M | 561.74M | 693.78M | 664.52M |
| Cash Flow | Free Cash Flow | ||||
| 9.57M | 17.45M | 24.29M | 62.29M | 28.75M | 2.37M | Operating Cash Flow |
| 12.75M | 20.25M | 27.80M | 66.27M | 32.54M | 7.87M | Investing Cash Flow |
| -13.38M | 12.22M | 16.29M | -54.91M | 10.02M | -16.19M | Financing Cash Flow |
| -714.00K | -774.00K | -190.44M | -19.62M | 1.05M | -180.00K |
trivago Technical Analysis
Neutral
4.35
Price Trends
4.31
Positive
3.81
Positive
2.86
Positive
Market Momentum
0.13
Positive
47.97
Neutral
15.69
Positive
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 4.35 is below the 20-day moving average (MA) of 4.55, above the 50-day MA of 4.31, and above the 200-day MA of 2.86, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 15.69 is Positive, 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 3 New Risks
1.
We have incurred losses due to impairment of intangible assets and may in the future record further impairments. Q4, 2024
2.
Regulations and expectations relating to environmental, social, and governance ("ESG") considerations could expose us to potential liabilities, increased costs, and reputational harm. Q4, 2024
3.
Climate change may have an adverse impact on our business. Q4, 2024
trivago Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.65B | 24.98 | 9.18% | 4.24% | 26.71% | -23.67% | |
77 Outperform | $2.46B | 18.29 | 19.74% | ― | 5.93% | 29.17% | |
71 Outperform | $855.10M | 21.97 | 32.17% | ― | 113.43% | ― | |
64 Neutral | $323.03M | ― | -11.66% | ― | 0.77% | 87.59% | |
60 Neutral | $14.06B | 6.51 | -3.76% | 3.69% | 2.48% | -35.40% | |
52 Neutral | $405.96M | 25.25 | -1.00% | ― | 0.82% | -102.72% | |
44 Neutral | $554.75M | ― | -18.77% | ― | 12.01% | 35.71% |
* Communication Services Sector Average
Performance Comparison
TRVG
trivago
4.35
1.94
80.50%
YELP
Yelp
38.02
1.62
4.45%
EVER
EverQuote
22.61
-1.12
-4.72%
OPRA
Opera
17.90
5.34
42.52%
SEAT
Vivid Seats
1.87
-3.25
-63.48%
KIND
Nextdoor Holdings
1.44
-0.99
-40.74%
trivago Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 12.99%|
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.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.