eastunder
1 year ago
trivago Announces Ex-Dividend Date for Extraordinary Dividend and Updates Effective Date for the Ratio Change under its American Depositary Share Program
November 01, 2023 07:06 ET
| Source: trivago N.V.
DÜSSELDORF, Germany, November 1, 2023 - trivago N.V. (NASDAQ: TRVG) announced today that, in connection with the Company’s recently announced one-time extraordinary cash dividend of EUR 0.529228 per share (the “Extraordinary Dividend”), Nasdaq has determined that the ex-dividend date for the Extraordinary Dividend will be November 14, 2023 (the “Ex-Dividend Date”). The payment of the distribution on the Company’s American Depositary Shares (“ADSs”) remains anticipated to be made on November 13, 2023, as previously announced by the Company.
Since the payment of the Extraordinary Dividend represents more than 25% of the price of the Company’s ADSs, Nasdaq has determined that the Company’s ADSs will trade with “due bills” representing an assignment of the right to receive the Extraordinary Dividend from the record date of November 3, 2023 through the closing of The Nasdaq Stock Market on the payment date of November 13, 2023 (this period of time representing the “Dividend Right Period”). Thus, the Company’s ADSs will trade with this “due bill” and the assignment of the right to receive the Extraordinary Dividend during the Dividend Right Period until the Ex-Dividend Date of November 14, 2023, the first business day after the payment date.
ADS holders who sell their ADSs during the Dividend Right Period and prior to the Ex-Dividend Date will be selling their right to the Extraordinary Dividend, and such ADS holder will not be entitled to receive the Extraordinary Dividend. Due bills obligate a seller of ADSs to deliver the Extraordinary Dividend payable on such ADSs to the buyer and holder of the ADSs as of the payment date (the “Dividend Right”). The due bill obligations are settled customarily between the brokers representing the buyers and sellers of the ADSs. The Company has no obligation for either the amount of the due bill or the processing of the due bill. Buyers and sellers of the Company’s the ADSs should consult their broker before trading to be sure they understand the effect of Nasdaq’s due bill procedures.
As previously announced, the extraordinary cash dividend equal to EUR 0.529228 per share is scheduled to be paid to ADS holders on November 13, 2023, and the dividend will be payable in U.S. dollars. The record date of November 3, 2023 will be used as the date for establishing the due bill tracking of the Dividend Right to the holder of the ADSs on the payment date.
Additionally, as previously announced, the Company’s management board approved a change of ratio in the Company’s ADS program, comprising a change in the ratio of ADSs to the Company’s class A shares (the “Shares”) from one (1) ADS representing one (1) Share, to one (1) ADS representing five (5) Shares (the “Ratio Change”). The effective date of the Ratio Change is expected to be November 17, 2023, in lieu of the November 7, 2023 date previously announced by the Company. Pursuant to the Ratio Change, as of the effective date thereof, record holders who directly hold ADSs will be required to exchange their existing ADSs for new ADSs on the basis of one (1) new ADS for every five (5) existing ADSs surrendered. The depositary under the Company’s ADS program will contact the Company’s ADS holders and arrange for the exchange of their existing ADSs for new ADSs. ADS beneficial holders who hold through an ADS holder intermediary need not take any action in connection with the Ratio Change. No new Shares will be issued in connection with the Ratio Change. The ADSs will continue to be traded on The Nasdaq Stock Exchange under the symbol “TRVG.”
About trivago N.V.
trivago is a global hotel and accommodation search platform. We are focused on reshaping the way travelers search for and compare different types of accommodations, such as hotels, vacation rentals and apartments, while enabling our advertisers to grow their businesses by providing them with access to a broad audience of travelers via our websites and apps. Our platform allows travelers to make informed decisions by personalizing their search for accommodations and providing them with access to a deep supply of relevant information and prices.
Media Contact
corentine.aronica@trivago.com
Investor Contact
ir@trivago.com
eastunder
1 year ago
trivago Announces Ratio Change under its American Depositary Share Program
October 27, 2023 06:06 ET
DÜSSELDORF, Germany, October 27, 2023 - trivago N.V. (NASDAQ: TRVG) announced today that its management board has approved a change of ratio in the Company’s American Depositary Share (“ADS”) program, comprising a change in the ratio of American Depositary Shares (the “ADSs”) to trivago class A shares (the “Shares”) from one (1) ADS representing one (1) Share, to one (1) ADS representing five (5) Shares (the “Ratio Change”). The effective date of the Ratio Change (the “Effective Date”) is expected to be November 7, 2023.
(aka: 1:5 Reverse split)
Pursuant to the Ratio Change, as of the Effective Date, record holders who directly hold ADSs will be required to exchange their existing ADSs for new ADRs on the basis of one (1) new ADR for every five (5) existing ADSs surrendered. The Depositary will contact the Company’s ADS holders and arrange for the exchange of their existing ADSs for new ADSs. ADS beneficial holders who hold through an ADS holder intermediary need not take any action in connection with the Ratio Change. No new Shares will be issued in connection with the Ratio Change. The ADSs will continue to be traded on The Nasdaq Stock Exchange under the symbol “TRVG.”
Additionally, as previously announced, the Company’s management board, with the approval of its supervisory board, has resolved to issue a one-time extraordinary dividend, totaling EUR 184,380,959. As previously announced, part of this extraordinary dividend in the amount of EUR 167,893,889 is subject to trivago shareholder approval. The dividend is expected to equal EUR 0.529228 per Share for those holders as of record on November 3, 2023. The payment of the distribution on the ADS is anticipated to be made on November 13, 2023.
Further information regarding the one-time extraordinary dividend is contained in the convening notice and explanatory notes for the extraordinary general meeting of shareholders to be held on November 1, 2023, which are available free of charge in the Investor Relations section of trivago N.V.'s corporate website at ir.trivago.com.
About trivago N.V.
trivago is a global hotel and accommodation search platform. We are focused on reshaping the way travelers search for and compare different types of accommodations, such as hotels, vacation rentals and apartments, while enabling our advertisers to grow their businesses by providing them with access to a broad audience of travelers via our websites and apps. Our platform allows travelers to make informed decisions by personalizing their search for accommodations and providing them with access to a deep supply of relevant information and prices.
Media Contact
corentine.aronica@trivago.com
Investor Contact:
ir@trivago.com
eastunder
1 year ago
Where is that money coming from for a special dividend?
https://ir.trivago.com/static-files/0b99aed0-7f9f-40da-bc34-0ee95ddb2e43
CONVENING NOTICE
This is the convening notice for the extraordinary general meeting of shareholders of trivago N.V. (the
"Company") to be held on November 1, 2023 at 15:00 CEST at the offices of NautaDutilh N.V.,
Beethovenstraat 400, 1082 PR Amsterdam, the Netherlands (the "EGM").
The agenda for the EGM is as follows:
1. Opening
2. Distribution from the Company's distributable reserves (voting item)
3. Closing
No business shall be voted on at the EGM, except such item as included as voting item in the abovementioned agenda.
The registration date for the EGM is October 4, 2023 (the "Registration Date"). Those who are
shareholders of the Company, or who otherwise have voting rights and/or meeting rights with respect
to shares in the Company's capital, on the Registration Date and who are recorded as such in the
Company's shareholders' register or in the register maintained by the Company's U.S. transfer agent
may attend and, if relevant, vote at the EGM (the "Persons with Meeting Rights").
Persons with Meeting Rights who wish to attend the EGM, in person or represented by proxy, must
notify the Company in writing of their identity and intention to attend the EGM. This notice must be
received by the Company ultimately on October 25, 2023. Persons with Meeting Rights who have not
complied with this requirement may be refused entry to the EGM. Persons with Meeting Rights may
have themselves represented at the EGM through the use of a written or electronically recorded proxy.
Proxyholders should present a copy of their proxies upon entry to the EGM, failing which the
proxyholder concerned may be refused entry to the EGM. A proxy form can be downloaded from the
Company's website (http://www.trivago.com).
EXPLANATORY NOTES TO THE AGENDA
2. Distribution from the Company's distributable reserves (voting item)
On September 15, 2023, the Company announced distributing a one-time extraordinary
dividend later this year, subject to shareholder approval. For that purpose, the Company's
management board (the "Management Board"), with the approval of the Company's
supervisory board (the "Supervisory Board"), has resolved to make a total distribution of
EUR 184,380,959 (being a distribution of approximately EUR 0.53 per share in the capital of
the Company) (the "Distribution").
The Distribution consists of two components: (i) an interim distribution from the Company's
profits realized during the current financial year in the total amount of EUR 16,487,070 (the
"Interim Profits Distribution") and (ii) a distribution from the Company's distributable
reserves in the amount of EUR 167,893,889 (the "Distributable Reserves Distribution").
In accordance with Dutch law and the Company's articles of association, the Management
Board, with the approval of the Supervisory Board, may resolve to make the Interim Profits
Distribution without the approval of the Company's general meeting. However, in accordance
with the Company's articles of association, the Management Board, with the approval of the
Supervisory Board, does require a resolution of the Company's general meeting to make the
Distributable Reserves Distribution. Therefore, this voting item only relates to the
Distributable Reserves Distribution. If this voting item passes, the total Distribution will be
made as described below. If this voting item does not pass, the Company will still make the
Interim Profits Distribution.
The Company has determined that the shareholders of the Company (or, as applicable, eligible
usufructuaries and pledgees) on November 3, 2023 shall be the parties entitled to the
Distribution. Further, the Management Board, with the approval of the Supervisory Board, has
determined that the Distribution shall be paid in euro on November 6, 2023 (the "Distribution
Payment Date"), such that the ex-dividend date is November 2, 2023.
eastunder
1 year ago
trivago announcing a renewed focus on its brand marketing strategy; plans to issue a special one-time extraordinary dividend; no longer expects to exceed adjusted EBITDA of 70 million in 2023
6:18 AM ET, 09/05/2023 - Briefing.com
This strategic shift aims to fuel long-term growth and underscore the relevance of its offerings to travelers. Additionally, trivago anticipates distributing a one-time extraordinary dividend later this year, subject to shareholder approval. trivago's renewed emphasis on brand marketing is prompted by the robust growth in the online travel sector and the positive impact of the company's latest summer marketing campaigns. The company is intensifying its brand marketing investments, with an anticipated decrease in profitability for the current year. It no longer expects to exceed adjusted EBITDA* of 70 million in 2023. As part of a multi-year strategy to rejuvenate its brand presence, the company aims for a return to double-digit revenue growth in the medium term. trivago is confident that its meta-search model is more relevant than ever. Travelers remain budget-conscious when booking hotels. Compared to 2019, room rates have increased, and most travelers appear to be Over the past several years, the company has proven its ability to generate robust cash flows. To further optimize its capital structure and to return value to shareholders, trivago plans to issue a special one-time extraordinary dividend. The dividend is anticipated to total approximately 184 million (or approximately 0.53 per share) (.56 american coin) and to occur later this year, subject to shareholder approval.
Math that makes you go...wtf?
Sooo...WTF is TRVG even thinking?
eastunder
1 year ago
trivago N.V. Announces an Extraordinary General Meeting of Shareholders to Approve One-time Extraordinary Dividend
DÜSSELDORF, Germany, September 15, 2023 - trivago N.V. (NASDAQ: TRVG) announced today that an extraordinary general meeting of shareholders (“EGM”) will be held on November 1, 2023 at the offices of NautaDutilh N.V., Beethovenstraat 400, 1082 PR Amsterdam, the Netherlands. The meeting will start at 3:00 p.m. CEST.
trivago’s management board, with the approval of its supervisory board, has resolved to issue a one-time extraordinary dividend, totaling EUR 184,380,959 (or approximately EUR 0.53 per share). Part of this extraordinary dividend in the amount of EUR 167,893,889 is subject to trivago shareholder approval. The only agenda item for the EGM relates to this part of the proposed dividend. The payment date for the distribution on the common shares is anticipated to be on November 6, 2023, with a record date of November 3, 2023. Relevant details regarding the payment date for trivago’s American Depositary Shares will be announced at a later time.
Further information regarding the proposed dividend is contained in the convening notice and explanatory notes for the EGM, which are available free of charge in the Investor Relations section of trivago N.V.'s corporate website at ir.trivago.com.
About trivago N.V.
trivago is a global hotel and accommodation search platform. We are focused on reshaping the way travelers search for and compare different types of accommodations, such as hotels, vacation rentals and apartments, while enabling our advertisers to grow their businesses by providing them with access to a broad audience of travelers via our websites and apps. Our platform allows travelers to make informed decisions by personalizing their search for accommodations and providing them with access to a deep supply of relevant information and prices.
Media Contact
corentine.aronica@trivago.com
Investor Contact:
ir@trivago.com
eastunder
2 years ago
Trivago Focusing on Booking Tool to Fight Online Travel Agencies
https://finance.yahoo.com/news/trivago-focusing-booking-tool-fight-173000570.html
Justin Dawes
Wed, February 8, 2023 at 10:30 AM MST·5 min read
Trivago is based in Düsseldorf, Germany.
In an effort to combat the hold that online travel agencies have on the hotel market, Trivago is focusing on building a capability for direct access between hotels and travelers.
“What has happened over the last 10 years is that a few OTAs have gained more and more market share, so the industry is quite consolidated,” said CEO Axel Hefer in an interview with Skift, adding that that means customers have less choice, and hotels have many of their bookings coming through the top OTAs.
“That’s why we believe that is one of the biggest — or the biggest — opportunities in online travel, in a way to dis-intermediate the OTAs, because the OTAs got too big.”
Trivago is a metasearch site for hotels and accommodations, meaning that user search results are compiled from multiple search engines into a single list, allowing users to compare prices. As of the end of 2022, the company offered access to more than 5 million hotels and other types of lodging accommodations in more than 190 countries.
Trivago executives shared info about the direct booking tool in development and other details during its fourth-quarter earnings call on Wednesday.
Total revenue in 2022 was nearly $574 million (€535 million), an increase of 48 percent from the previous year. The company had a record adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $115.3 million (€107.5 million), an increase of 211 percent from last year. Net loss for 2022 was $136.4 million (€127.2 million), mainly driven by the impairment charges recorded in the second and third quarters of 2022 totaling $198 million (€184.6 million). Trivago shares are up 28 percent year-to-date, trading at $1.75 at midday Wednesday.
The company expects to reduce operating expenses in 2023 despite inflation, mainly through job cuts carried out in the second half of 2022. Hefer declined to share details about the job cuts, referring the 20-F filing with the U.S. Securities and Exchange Commission that’s due in late March.
Hotel Direct Access
Leisure travel has increased post-pandemic, but Trivago said it is beginning to see consequences of inflation as travelers search for less expensive options.
“We believe that metasearch is well positioned in this environment as consumers shift their focus to cost savings, and we will focus on improving the user experience and make it even easier for travelers to find great deals on our platforms,” said Matthias Tillmann, chief financial officer for Trivago, during the earnings call on Wednesday.
The company has been testing the direct access tool in eight of its largest markets. It is meant to connect hotels and travelers directly, giving consumers access to direct booking prices, which Hefer said are about 10 percent lower than through intermediaries. For the hotels, the tool means they can generate more revenue, and ultimately offer more individualized services and upsell more easily, he said.
“From a consumer perspective, yes, we can go to the website of the hotels directly. But there is no place where you can basically do that for hundreds of thousands of hotels,” Hefer said.
Trivago makes most of its revenue when users click on hotel and accommodation ads within its website, referring them to one of the company’s advertisers. Trivago regularly facilitates auctions through which companies bid for ad placement. Booking Holdings and Expedia Group, which is Trivago’s controlling shareholder, are Trivago’s dominant advertisers.
Trivago is investing upfront in the direct access tool by providing free links to get more hotels to participate. With greater hotel participation, the company expects to generate more consumer demand.
In the eight large test markets, the company said it has gained a hotel participation rate of more than 50 percent through a partnership with data connectivity company UBIO Limited. Trivago has a goal to reach 80 percent hotel participation by the end of 2023. The next step would be to offer the tool to travel agencies.
In the long term, it could have a big impact on the company’s business model.
“Going forward, it might well affect our revenue streams because we might decide to monetize the direct bookings differently than our OTA bookings. But for now, we basically provide them for free,” Hefer said.
Increased Marketing and Other Investment
Trivago spent $366.6 million (€342.0 million), an increase of 37 percent, on selling and marketing in 2022. Executives plan to increase that in 2023 with a strong focus on price comparison.
“Our goal is to grow the business sustainably from our post-pandemic revenue baseline, focusing on high-quality and repeat traffic. And that is more important to us than hitting 2019 revenue levels. And consequently, we will continue to be disciplined with our marketing investments. However, if we do see opportunities to invest to accelerate our growth profitably at the expense of short term contribution, we will do that, even if it means that our margin will temporarily go down,” he said.
“For 2023, we do expect to increase our brand marketing investments. With the benefit of hindsight, we believe we could have invested more last year, in particular during the peak summer period.”
In the fourth quarter of 2020, Trivago testing a new product design in five markets — four in Europe and one in Brazil — on how to more effectively ensure that a consumer is ready to purchase when they click on a link.
In Brazil, that led to a “significant decline in qualified referrals in that country,” Tillmann said. “However, on the flip side, the click-to-book conversion increased significantly in Brazil, which had a positive impact on our revenue per qualified referral.”
eastunder
2 years ago
Letter to Shareholders.
February 7, 2023
https://www.sec.gov/Archives/edgar/data/1683825/000168382523000004/exhibit992lettertosharehol.htm
Dear Shareholders,
Last year was a turning point for the travel industry as COVID-19 became endemic in most parts of the world, and we have seen a strong recovery in leisure travel. The surge in inflation has led to significantly higher Average Daily Rates (ADRs) for hotels in many of our core markets without our having observed any notable adverse effects on travel demand. However, in the second half of the year, we started to see first signs that travelers around the world are trying to mitigate the impact of higher hotel rates by comparing different hotel offers or searching for cheaper destinations. In this environment, we believe that the value of metasearch has increased, and we have shifted our focus to innovation in our core product and plan to improve transparency of our offering and price comparison functionality.
As we reflect on the past year, we think it is important to take a step back. trivago was founded 18 years ago. Since then, it has been a leading player in the accommodation price comparison industry, while it has built one of the best known global online travel brands through broad-reach TV marketing campaigns. Until 2018, our key focus was bringing as many users as possible online and helping them to compare prices to find great deals. Prior to 2018, we experienced stellar growth, together with many of our advertisers.
Around 2018, the market dynamic started to change – industry growth slowed, particularly in Europe and the US, while most consumers had already moved their search for accommodation online. We quickly adjusted to this change in market dynamic, shifting our focus from growth to profitability. Starting in the second half of 2018, we reduced unprofitable marketing spend, improved efficiency and optimized costs, resulting in a significant increase in profitability in 2019. Through the pandemic we continued on this path, and while in 2022 our net loss was €127.2 million, mainly driven by the impairment charges recorded in the second and third quarters of 2022, we achieved a record adjusted EBITDA of €107.5 million. While improving our adjusted EBITDA, we have worked on and tested various growth options for the future, such as expanding in other travel verticals, developing travel inspiration products, integrating wholesale inventory and many others. These initiatives have generated valuable learnings that have informed our strategy going forward.
While we continue to improve our product and strengthen our core value proposition, we plan to scale up growth initiatives. Looking at the years ahead, we believe that the biggest opportunity for us – both from a consumer and a B2B perspective - is to offer travelers direct access to the hotel in addition to the traditional online travel agency offering. We believe this will benefit travelers by providing them with better rates, more personalized offers and direct communication with the service provider, while hotels will appreciate owning the customer relationship, tailoring their offerings and increasing the revenue they can generate per customer. We are convinced that we are well positioned to pursue this opportunity and are excited about the value we can bring to users and hotels going forward.
trivago in 2022
Despite all the challenges and changes that we have experienced during the past year, we achieved a record adjusted EBITDA of €107.5 million, more than 50% above our 2019 pre-COVID result, with an adjusted EBITDA margin of 20.1%. Revenue grew 48% year-on-year and cash, cash equivalents and short-term investments have increased to almost €300 million, while operating expenses (excluding Advertising Spend, significant court-ordered penalties and impairments of goodwill and intangible assets) were stable. We are very happy with our results in a challenging environment and see it – despite all the volatility we have experienced over the past few years – as proof of the value we are delivering to our users and advertisers every day!
In addition to our financial success during the year, we have made significant progress on our strategic initiatives:
We have scaled up our brand marketing investments and sharpened our brand communication with a clear focus on price comparison.
In four European markets and Brazil, we have run a large scale full-market test to improve the transparency of our offering and price comparison functionality.
We have accelerated the growth in our direct hotel coverage on our platform through our strategic partnership with UBIO Limited.
In addition to our traditional cost-per-click and cost-per-acquisition (CPA) revenue models, we are extending our net CPA on consumption model beyond independent hotels also to our hotel chain customers.
trivago in Q4 2022 and early trends in 2023
We finished the year strong, growing our revenue 18% year-over-year while maintaining our disciplined marketing approach, leading to net income of €10.4 million and an increase in adjusted EBITDA of 15% and an adjusted EBITDA margin of 21.5%.
Average booking value1 continued to be positively impacted by increased average daily hotel rates and were, as a result, significantly higher compared to the prior year period. This was a key driver of our strong financial performance, which is reflected in the increase of our Revenue-Per-Qualified-Referral (RPQR) year-over-year. However, we are seeing first signs of consumers trying to mitigate increasing average daily hotel rates by, for example, shortening their length of stay or looking for cheaper destinations and accommodations. We believe that we are well positioned to help travelers around the world to navigate through different offers, making sure they get the best deal, and present them with attractive alternatives. Consequently, volumes have been relatively stable. In Developed Europe, Qualified Referrals (QR) increased slightly year-over-year, and in our segment Rest of World, QRs would have been roughly flat when excluding the loss of volumes in Russia and Central Eastern European markets due to the war in Ukraine. The significant decrease in QRs in Americas of 20% year-over-year was mostly driven by a large-scale full market test in Brazil. While this led to a significant decrease in click-outs and QRs, the overall booking volume in that segment increased year-over-year, driving the increase in referral revenue of 15% in that segment.
2023 has started strong with a year-on-year referral revenue increase in January of over 30% which partly reflects the weakness in the same period a year ago when Europe in particular had travel restrictions in place due to the Omicron wave. We have increased our marketing spend year-on-year in anticipation of robust travel demand at the beginning of the year and are encouraged by the current trends in our branded traffic.
trivago in 2023 and beyond
In 2023 and beyond, our key focus remains to serve our users and advertisers better, delivering more value and better ease of use to them. As a first step, we have increased our coverage in eight test markets of rates directly bookable at the hotel. These rates are now available for hotels that attract 50% of click-outs, an increase from 38% prior to the test. We expect to reach 80% by year-end. With the increase in coverage, our front-end teams have the opportunity to launch new features that leverage the direct access to the hotel and better rates, and we expect to be able to actively promote these features by the beginning of 2024.
We are very excited about the opportunity ahead of us and will keep you posted on our progress in the quarters to come.
eastunder
2 years ago
TRVG Cpps @ 1.40
Trend Analysis
TRVG appears to be in a strong bearish trend. Both the 200-day moving average and MACD histogram are falling. Comparative Relative Strength analysis shows that this issue is outperforming the S&P 500.
As of 11:08 AM ET Wednesday, 01/04/2023
Momentum
Momentum for TRVG is strongly bullish. The 14-period Slow Stochastic Oscillator is rising, as investors pay higher prices for shares.
As of 11:08 AM ET Wednesday, 01/04/2023
Volume
Today's volume is on track to be heavier than usual, with 128,751 shares having traded so far. The On Balance Volume indicator (OBV) is bullish. The slope of the indicator is positive and suggests that buyers are presently more active than sellers.
As of 11:08 AM ET Wednesday, 01/04/2023
Volatility
Volatility, measured using the width of the Bollinger Bands®, is extremely low, resulting in a condition called the Bollinger Band Squeeze. Bollinger Band Squeezes tend to precede major price breakouts, although they do not predict which direction the new trend will take. Trend and momentum indicators can be useful during Squeeze conditions to help discern the direction of future trends.
As of 11:08 AM ET Wednesday, 01/04/2023
eastunder
2 years ago
Fast-paced Momentum Stock Trivago N.V. ADS (TRVG) Is Still Trading at a Bargain
Zacks Equity Research
Wed, January 4, 2023 at 6:50 AM MST·4 min read
https://finance.yahoo.com/news/fast-paced-momentum-stock-trivago-135001345.html
Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Trivago N.V. ADS (TRVG) is one of them. Here are the key reasons why this stock is a great candidate.
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 3.8%, the stock of this company is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. TRVG meets this criterion too, as the stock gained 23.6% over the past 12 weeks.
Moreover, the momentum for TRVG is fast paced, as the stock currently has a beta of 1.55. This indicates that the stock moves 55% higher than the market in either direction.
Given this price performance, it is no surprise that TRVG has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped TRVG earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, TRVG is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. TRVG is currently trading at 0.87 times its sales. In other words, investors need to pay only 87 cents for each dollar of sales.
So, TRVG appears to have plenty of room to run, and that too at a fast pace.
eastunder
2 years ago
TRVG
November 1, 2022
Dear Shareholders,
The past few months have given us a better view on the “new normal”. The pandemic appears to be behind us as high immunization levels – achieved both through large-scale vaccinations and mass recovery from COVID-19 infections – have eased the impact of the pandemic on consumer behavior and travel activity in most parts of the world. We have seen a significantly improved summer business in our core Western markets compared to prior year, and believe that travel seasonality this winter will be more in line with what we experienced prior to the pandemic.
Throughout the summer, we have observed a significant increase in average price levels for hotel rooms. We believe that geopolitical conflicts and disruptions, which have led to higher energy prices, are likely to continue for the foreseeable future. We anticipate that this, when combined with the effects of labor cost increases, may continue to result in increases in consumer prices, including average daily rates for hotels. In the third quarter of 2022, we saw first signs of consumers attempting to mitigate this effect through searching for more affordable destinations and accommodations as well as by reducing the length of their trip, especially in our Developed Europe segment.
We believe that this trend is likely to continue in 2023 as inflation leads to consumers having lower real disposable income. While this may result in lower traffic volumes, we continue to believe that our value proposition will be highly relevant for consumers around the globe and that we will be able to benefit from consumers’ greater focus on cost saving and their need for price comparison.
trivago in Q3 2022
The strong start of the summer season in the northern hemisphere continued throughout the third quarter of 2022, and as planned, we increased our branded marketing activities during this period. Our new television advertising creative, refocusing on price comparison, performed very well and led to a healthy growth in our branded traffic to our platform.
Overall, competitive dynamics in performance marketing channels, including our own auction, intensified during the summer as many players in the online travel industry appeared to have focused on gaining traffic share. While we benefited from this increased competition and have experienced a very strong auction during the quarter, these dynamics have also resulted in higher costs in some performance marketing channels in certain markets. We maintained our disciplined marketing approach and continued to focus on high-quality traffic at the expense of more traffic volume to maintain profitability targets that we believe create long-term value.
In the third quarter of 2022, we generated the highest quarterly adjusted EBITDA in our history. We are proud of this strong operational performance, which is a result of our continued cost discipline, increased marketing efficiency and recovering travel demand. However, the macroeconomic outlook has worsened as high inflation and rising interest rates continue to weigh on consumer sentiment. This was also reflected in declining equity markets. We performed our annual goodwill and indefinite-lived intangible assets impairment test which resulted in an impairment charge of €100.4 million, driving the net loss of €67.1 million for the quarter.
In the third quarter of 2022, we have made significant progress on long-term projects:
We have completed the migration of our organic search pages to our new front-end infrastructure, reducing complexity and laying the foundations for further optimizations going forward.
We have launched first tests to significantly improve our coverage of directly bookable hotel rates across our platform.
In a company-wide effort, we have reviewed our company values and launched an updated set of values, providing more focus and guidance while preserving our way of working and collaborating.
Q4 2022 and 2023 outlook
For the fourth quarter 2022 and 2023, we expect consumers to partly mitigate the effect of higher accommodation prices by reducing the duration of their trips as well as by choosing cheaper accommodation options. As a result, we believe accommodation price comparison will become an even more important element in consumers’ travel planning. Going forward, we plan to remain disciplined with our expenses, both for marketing campaigns and in respect of our fixed costs, to enable us to fully leverage our value proposition in this more challenging environment while still delivering robust operational results and strong positive cash flows.
https://www.sec.gov/Archives/edgar/data/1683825/000168382522000024/exhibit992lettertosharehol.htm
eastunder
3 years ago
TRVG: trivago Q4 2021 Shareholder Letter from 2/8/22
February 8, 2022
Dear Shareholders,
2021 is now behind us. It has been a roller coaster year. Although it has not always been easy to navigate through all these changes, we are very proud of our teams. They have remained positive and focused on solving customer problems. We have invested in upgrading our infrastructure and systems and despite a very volatile environment, have tried out new initiatives. Not every idea has worked out but that has never been our aspiration - we try out ideas to generate learnings and understand better our customers' needs. Having finished the fourth quarter on a strong note, we are very happy with our financial and operational achievements in 2021.
The start to the year was challenging as travel restrictions were in place in many countries. As travel restrictions eased and the market improved, we benefited from cost discipline and marketing efficiency gains and improved our profitability every quarter. As a result, net income improved markedly, and in the second half of 2021, Adjusted EBITDA increased even in comparison to the same period in pre-pandemic 2019. Our Adjusted EBITDA margin in the fourth quarter 2021 reached 22%, the highest since we went public in 2016.
We more than tripled our active partners for our cost per acquisition (CPA) product, helping them manage elevated volatility during the pandemic and driving higher engagement in our auction.
We successfully launched the first partnerships of our Meta-as-a-Service (MaaS) product. While still early, we believe this presents an exciting opportunity to expand our business-to-business (B2B) offering.
We generated valuable learnings through testing new verticals and our local travel product trivago weekend. This will help us to focus our efforts to expand our offering and increase value to our customers.
We took advantage of a COVID-19 subsidy program and received a €12.0 million payment from the German government in the fourth quarter of 2021. The German government provided this assistance to compensate for losses incurred in the fourth quarter of 2020 and the first half in 2021 as a result of the pandemic.
trivago in 2022
Even with high infection levels and new restrictions on daily life and travel in place, we are optimistic and excited about the year ahead of us. The virus has mutated in a way that appears to cause less severe health consequences, the share of recovered and vaccinated people is rising quickly around the world, and more and more governments are moving towards accepting COVID-19 as endemic and are taking measures accordingly. We believe that travel demand could bounce back as early as the spring of 2022 in most of our important markets. This does not mean that travel will be back to 2019 levels and patterns, though. Some segments like business travel or city trips are still lagging. In addition, the industry must deal with labor shortages as many seasonal workers found other jobs and have not returned to the hospitality sector. Consequently, it will take more time until supply and service levels are back to pre- pandemic levels. We are preparing for that and future growth in the travel industry. Key levers for the years to come from our perspective are:
Innovation: We are confident that there is plenty of space for innovation in price comparison for accommodation. We are investing both in new feature development and the improvement of our back-end systems in terms of usability, reliability and speed.
Marketing: Since the start of the pandemic, we have reduced our marketing activities and in particular cut back our brand marketing investments. We believe that travel will bounce back earlier and more sustainably in our core markets in 2022 than in 2021 and that city trips, historically one of our strengths, will catch up significantly in the recovery. We plan to use this opportunity to sustainably gain market share by investing in marketing to increase our brand baseline.
Broadening of our offering: Outside of our core product, we have explored many ideas and opportunities in the past few years. We are excited about our B2B initiatives and believe that there is substantial room to serve our business customers with a broader set of solutions. In addition, we will continue to test additional business-to-consumer (B2C) products, aiming to deliver even more value to our core customers and attracting new customers alike.
Team development: We believe that we are uniquely positioned to compete in the war for talent. Leveraging our global brand, we were able to attract many talents from around the world in 2021. We believe this will help us to further improve the quality of our teams and reach our ambitious goals for the years to come.
As we expect to see a less volatile recovery going forward, it should become easier for us to forecast travel demand. We are looking forward to investing in new features, expanded product offerings, and marketing campaigns to serve travelers around the world in 2022 and in the years to come.
https://www.sec.gov/Archives/edgar/data/1683825/000168382522000004/exhibit992lettertosharehol.htm
eastunder
3 years ago
3 Reasons Why Trivago Could Bounce Back in 2022
The struggling travel stock may finally be turning the corner.
Jeremy Bowman
(TMFHobo)
Feb 13, 2022 at 7:11AM
https://www.fool.com/investing/2022/02/13/3-reasons-why-trivago-stock-could-bounce-back-in-2/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Key Points
Several signs point to a recovery in travel demand this year.
Trivago significantly reduced costs during the pandemic, setting it up for higher profitability.
New B2B business lines could also be a profit driver.
Like most of the travel sector, Trivago (NASDAQ:TRVG) has been hit hard by the pandemic, as revenue has fallen sharply from pre-pandemic levels. The stock is mostly unchanged from where it was two years ago, but the company has taken significant strides to cut costs and restructure its business, though those changes have been overshadowed by the challenges from COVID.
In its fourth-quarter earnings report, the company rebounded from the depths of the pandemic a year ago and delivered strong earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. Revenue was up 176% to 89.1 million euros, though that was still down 43% from Q4 2019. Adjusted EBITDA margin also hit a record for the accommodation-booking specialist at 22%, with EBITDA reaching 19.6 million euros.
While the market has mostly forgotten Trivago -- the stock barely moved on the report on Wednesday -- 2022 could mark a comeback for the banged-up travel stock. Here are three reasons why.
1. The pandemic may finally end
There are some signs that 2022 could be the year in which the COVID-19 pandemic comes to a close, or at least becomes endemic, meaning it's treated as a part of normal everyday life. Evidence shows that the omicron variant is less severe than earlier strains, and an increasing percentage of the world's population is becoming vaccinated or has gained natural immunity.
Restrictions on travel and policies like masking are also starting to be loosened. A number of states in the U.S. have begun lifting masking mandates, and the U.K. could lift all virus restrictions as early as this month. Several countries in the E.U. have also said they're eliminating requirements for entry, such as a negative test, if you're already vaccinated.
Trivago said its sees a direct connection between restrictions being lifted and bookings on its platform. Often, travelers don't want to deal with inconveniences, such as testing or even quarantining, that have been necessary to travel.
Though the company didn't give specific guidance, it said that growth had improved in January from December and expected that trend to persist in the first quarter. While the company is sanguine about labor shortages impacting the recovery, it's optimistic about momentum building into the spring and summer.
2. Costs have been significantly reduced
The record EBITDA margins in the fourth quarter are a promising sign for the company as the travel market recovers. Trivago significantly reduced its cost base over the last two years, laying off staff and slashing its office space. It's also made its marketing more efficient, and those steps should lead to wider profit margins as the travel sector bounces back.
In a normal environment, most of company's revenue goes to sales and marketing expenses, which are expected to ramp up later in the year, but general and administrative expenses and technology costs should remain relatively in line with Q4 2021 levels, so the company will gain operating leverage as revenue increases.
The company predicted that total operating expenses would be below 2020 levels, which is good news for the company's long-term profitability.
3. New business lines are emerging
While Trivago will always primarily be an accommodations-booking service, the company has begun B2B services that monetize the data it generates from travel searches. The company is in the early stages of developing this business, partnering with companies like Huawei and an online ticketing platform, among others, in what it calls metasearch-as-a-service.
With Huawei, the Chinese tech giant is using Trivago to power its online hotel bookings, and Trivago shares bookings revenue with it. As this gains scale, it should be a higher-margin line of business as it leverages Trivago's tech infrastructure that's already in place, and allows it to tap into a new customer base.
Trivago categorizes this business as "other revenue." It only had 5.4 million euros in other revenue in Q4, but that figure should accelerate this year and could be an important profit driver down the road.
Trivago has been trading in penny stock range for several years now and has missed out on some of the recovery tailwinds that other travel stocks have gotten. However, based on run-rate EBITDA from the fourth quarter, the stock is trading at just 11 times EBITDA, making it look surprisingly affordable, especially since its revenue will surge again this year. If Trivago can deliver bottom-line growth, as well, the stock should move higher this year.
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