Metasearch engine
Trivago
says that the second quarter of 2022 saw an end to nearly all COVID-19-related restrictions of movement and a rebound in travel activity.
Subscribe to our newsletter below
In the three months ended June 30, 2022, total revenue was €144.8 million, an increase of €49.3 million, or 52%, compared to the same period in 2021. In the six months ended June 30, 2022, total revenue climbed €112.7 million, or 84%, from the same period last year to €246.4.
The company credits factors such as a healthy auction and a disciplined marketing approach for the strong results.
The company earns the majority of its revenue from referrals, primarily from online travel agencies.
Net loss, meanwhile, racked up: For the three months ended June 30, 2022, net loss was €59.8 million compared to a net loss of €3.3 million in the corresponding period in 2021.
The company says the decline was “mainly driven by the impairment of intangible assets and goodwill of €84.2 million and was partly offset by the recovery of travel demand, resulting in an increase in referral revenue and advertising spend of €48.0 million and €20.7 million respectively.”
For the six months ended June 30, 2022, net loss was €70 million compared to a net loss of €10 million in the same period last year, which Trivago says is in part related to the
fine imposed by the Australian Federal Court
.
Adjusted EBITDA, which excludes the impairment of intangible assets and goodwill, increased by €26.0 million to €30.3 million in the second quarter, compared to the same period in 2021. In the six months ended June 30, 2022, adjusted EBITDA rose by €51.9 million to €51.4 million, according to Trivago.
However, the German metasearch company expects rising inflation to affect travel in the second half of the year and beyond.
“While we continue to experience high pent-up demand, strong advertiser bidding dynamics and a strong summer season, we are preparing ourselves for an economic slowdown,” the company says in its earnings release.
Trivago calls its core value proposition “more relevant than ever” as travelers increasingly compare prices amid rising inflation. The company plans to spend the rest of the year focusing on improving its core product – accommodation price comparison – to retain users.
“To reflect this focus, we have adjusted our priorities internally and made the decision to discontinue projects and products, such as our display ads and Weekend product, that are either not consistent with this approach or distract us from moving full speed in this direction,” Trivago says.
As of June 30, Trivago says it provided access to more than five million hotels and other types of accommodation in more than 190 countries, including more than 3.8 million units of alternative accommodation, such as vacation rentals and apartments.
Founded in 2005, Trivago is based in Düsseldorf, Germany.