trivago N.V. (TRVG) Q2 2025 Earnings Call Transcript

Revenue Total revenue reached EUR 139.3 million, representing a 17% increase compared to the same period in 2024. This growth was driven by increased branded channel traffic in response to ongoing brand marketing investments and product improvements enhancing booking conversion.

Referral Revenue Referral revenues grew 32% in Rest of World, 20% in Developed Europe, and 10% in Americas. This growth was primarily driven by increased branded channel traffic and product improvements.

Net Loss Reported a net loss of EUR 6.5 million, which aligns with the company's performance expectations.

Adjusted EBITDA Achieved a better-than-expected adjusted EBITDA loss of EUR 5.1 million, similar to 2024 performance. Negative adjusted EBITDA was reported in the first and second quarters, with expectations of positive adjusted EBITDA in the third and fourth quarters.

Operational Expenses Operational expenses increased by EUR 19.9 million, totaling EUR 147.3 million for the second quarter. This was mainly due to a EUR 21.8 million increase in selling and marketing expenses, driven by higher brand marketing investments.

Advertising Spend Advertising spend increased by EUR 9.5 million (26%) in Developed Europe, EUR 5.9 million (31%) in Rest of World, and EUR 5.5 million (14%) in the Americas, largely due to brand marketing investments.

Return on Advertising Spend (ROAS) Global ROAS was maintained at 119% for Q2 compared to 122.7% in the prior year. ROAS improved in Rest of World (from 115.7% to 117.1%) but decreased in the Americas (from 120.7% to 116.9%) and Developed Europe (from 128.5% to 122.1%).

Cash and Cash Equivalents Held EUR 111.2 million in cash and cash equivalents at the end of Q2 2025, with no long-term debt, maintaining a strong financial position.