trivago NV Q4 FY2024 earnings call

• Johannes Thomas mentioned Q4 2024 saw 5% growth in referral revenue and €11.1 million in adjusted EBITDA, marking a turning point with solid momentum into 2025. • Strong double-digit top line growth across all segments at the start of Q1 2025. • Key drivers include major product enhancements, positive returns from brand marketing investments, AI-powered marketing campaign with Jürgen Klopp launched in over 23 key travel markets. • Focus on 3 strategic pillars: brand marketing optimization, core hotel search product improvements including personalization and AI features, and empowering partners via trivago Book & Go. • Operational expenses decreased by €0.3 million in Q4, with adjusted EBITDA exceeding expectations due to higher revenue growth and efficient marketing.

In Q4 2024, total revenue grew by 3% to €94.8 million. Referral revenue saw a 5% growth. The Rest of World segment had a 15% increase in referral revenues, the Americas saw an 8% increase, while Developed Europe had a 2% decline. Adjusted EBITDA was €11.1 million, and net income was €5.1 million. Total revenue in Q4 2024 was €94.8 million, with referral revenue growing 5%, and adjusted EBITDA at €11.1 million.

• Expect to achieve at least high single-digit revenue growth in 2025. • Anticipate adjusted EBITDA to be at least at breakeven as profits are reinvested into marketing strategy. • See substantial opportunities to scale brand marketing activities for long-term revenue impact.

• Challenges in performance marketing channels due to changes in Google advertising formats, which introduced volatility and traffic volume losses. However, stabilization observed in past months.

Q: What needs to happen for trivago to accelerate growth into double-digit from current levels?

A: Robin Harries stated they see opportunities to scale brand investments and further improve the product, with brand and product being drivers. Johannes Thomas mentioned looking at when returns of investments diminish, and elasticity of spend currently looks promising.

Q: On AI Smart Search, any early learnings on conversion or monetization?

A: Johannes Thomas said AI Smart Search is a new way of searching where users can type semantic research sentences, and they are watching user behavior change gradually as it's a slow process of behavior change.

Q: How does the differentiated member proposition differ from traditional loyalty programs?

A: Johannes Thomas said the core is to differentiate from other search engines and GenAIs, aiming to lock in price-conscious users to start their journey on trivago, with users getting better prices if logged in through sourcing exclusive deals with partners.

Q: How is the Holisto partnership evolving and when would trivago exercise the option to purchase remaining equity?

A: Johannes Thomas said they are assessing scalability of Book & Go, and there's no decision yet on exercising the option as they check if Holisto is delivering on OKRs.