trivago NV Q1 FY2025 earnings call

Brand Marketing: Continues to elevate globally recognized brands. AI-powered Jurgen Klopp TV creators and localized campaigns for Brazil and Japan are performing well. Summer campaign launched in the U.S. and rolling out globally. Observed marketing elasticity enabling scaling of brand investments while maintaining discipline in performance marketing channels. ### Core Hotel Search Experience: Product teams increased product testing velocity, delivering user experience enhancements and improving conversion rates. Increased member sign-ups with exclusive deals, improved map functionality, AI-powered hotel filtering, and expanded AI-generated hotel highlights to over 350,000 hotels in 11 languages. Leveraged machine learning for tailored search results. ### Empowering Partners: Marketplace evolution with high-quality leads. Progress in expanding Trivago Book & Go, and strengthened partnership with Holisto yielding promising results.

In Q1 2025, Trivago's total revenue reached EUR124.1 million, a 22% year-over-year increase. Referral revenues showed strong double-digit growth across all three reporting segments: rest of world grew 44%, developed Europe 19%, and America 18%. This growth was driven by increased branded channel traffic and response to ongoing brand marketing investments, along with improvements in booking conversion and higher traffic volumes.

Raised full-year revenue growth guidance to mid-teens percentage and foresee better-than-expected adjusted EBITDA profitability. Anticipate significant potential to scale brand marketing investments, aiming to regain pre-COVID revenue levels. Positive outlook with strong execution of strategic priorities.

Potential risks posed by AI hyperscalers changing travel search and booking behavior. Market volatility and uncertainty affecting travel demand. Need to remain responsive to changes in performance, as seen in past cuts to spend during events like Olympics or elections.

Q: Naved Khan asked about regional performance, April's strength, and trends like consumer price sensitivity in the U.S.

A: Robin Harries responded on ADRs, length of stay, ABB trends, strong global demand, and diversity of countries.

Q: Tom White asked about risks from AI hyperscalers and brand investment compounding.

A: Johannes Thomas discussed AI's impact on travel search, brand as hedge against AI risks, and brand investment compounding benefits.

Q: Unidentified Analyst asked about AI hotel search performance and localized campaigns.

A: Johannes Thomas talked about AI highlights, dynamic content, and successful localized campaigns in Japan with positive ROAS.