Trivago ( NASDAQ: TRVG ) stock climbed ~21% on Wednesday after the hotel search engine operator reported strong Q3 results amid continued rebound in travel demand.
The company reported Q3 adj. EBITDA of €33.47M, its highest ever quarterly number, driven by continued cost discipline, increased marketing efficiency and recovering travel demand.
Revenue grew 32.5% Y/Y to €183.7M. Referral revenue increased 56.3%, 11.8% and 65.2% in Americas, Developed Europe and RoW, respectively, helped by higher revenue per qualified referrals (RPQR) across all segments.
Other revenue increased 27.1%, led by increased revenue from B2B solutions.
After annual goodwill and indefinite-lived intangible asset impairment analysis as of Sept. 30, Trivago ( TRVG ) recorded an impairment charge of €100.4M due to deteriorating macroeconomic conditions, including rising interest rates and high inflation. This charge led to Q3 net loss of €67.1M vs. net income of €5.5M in Q3 2021.
For Q4 and 2023, Trivago ( TRVG ) expects consumers to mitigate higher accommodation prices by reducing duration of trips and picking cheaper accommodation.
"As a result, we believe accommodation price comparison will become an even more important element in consumers’ travel planning," the firm added.
Trivago ( TRVG ) also said it will buy 20M class A shares - 5.5% of its outstanding stock - from one of its founders Peter Vinnemeier for $20M (or $1/share). The purchase will be funded with available working capital.
Shares of Trivago ( TRVG ) dropped ~46% YTD.
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Trivago stock climbs 21% on strong earnings as travel demand continues to recover