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SEC Filings

6-K
TRIVAGO N.V. filed this Form 6-K on 04/25/2018
Entire Document
 

Expenses (€ millions)
 
Costs and Expenses
 
As a % of Revenue
 
Three months ended March 31,
 
Three months ended March 31,
 
2018
 
2017
 
Δ %
 
2018
 
2017
 
Δ in bps
Cost of revenue
1.6

 
1.1

 
45%
 
1%
 
—%
 
1%
of which share-based compensation
0.0

 
0.0

 
—%
 
 
 
 
 
 
Selling and marketing
256.2

 
231.5

 
11%
 
99%
 
86%
 
13%
of which share-based compensation
0.8

 
1.0

 
(20)%
 
 
 
 
 
 
Technology and content
15.5

 
11.7

 
32%
 
6%
 
4%
 
2%
of which share-based compensation
0.8

 
1.0

 
(20)%
 
 
 
 
 
 
General and administrative
14.9

 
8.9

 
67%
 
6%
 
3%
 
3%
of which share-based compensation
2.9

 
1.3

 
123%
 
 
 
 
 
 
Amortization of intangible assets
0.4

 
2.0

 
(80)%
 
—%
 
1%
 
(1)%
Total costs and expenses
288.6

 
255.1

 
13%
 
111%
 
95%
 
16%
Note: Some figures may not add due to rounding.
 
 
 
 
 
 
 
Cost of revenue
In the first quarter of 2018, cost of revenue increased by €0.5 million, or by 45%, year-over-year to €1.6 million. This reflects our continued investment in our data center and servers, higher personnel costs and depreciation.

Selling and marketing
In the first quarter of 2018, selling and marketing expense increased by €24.7 million, or by 11% year-over-year to €256.2 million, of which €237.4 million, or 93%, was advertising expense. The increase was driven by higher advertising spend in Americas and RoW with €93.3 million and €62.5 million respectively, compared to €86.6 million and €50.5 million in the first quarter of 2017. The advertising spend in Developed Europe was flat at €81.6 million in the first quarter of 2018 compared to €81.8 million in the first quarter of 2017. Selling and marketing expense was 99% of revenues in the first quarter of 2018, up from 86% in the first quarter of 2017. In Americas and RoW, we increased advertising spend compared to the first quarter of 2017, while lowering our Return on Advertising Spend targets to support revenue levels. In Developed Europe, advertising spend was flat, reflecting lower marginal returns on advertising spend compared to our other segments.

In the first quarter of 2018, other selling and marketing expense excluding share-based compensation increased by €6.5 million, or 57% year over year to €18.0 million. Most of the increase was driven by higher investments in the production of television advertisements by €4.1 million as well as an increase in personnel costs of €1.5 million.

Share-based compensation decreased by €0.2 million to €0.8 million in the first quarter of 2018.

Technology and content
In the first quarter of 2018, total technology and content expense increased by €3.8 million, or 32% year-over-year to €15.5 million. The increase was primarily driven by an increase in personnel costs of €1.9 million as we continued to invest in headcount.

In the first quarter of 2018, technology and content included €0.8 million of share-based compensation compared to €1.0 million in the same period in 2017.







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