|TRIVAGO N.V. filed this Form 6-K on 04/25/2018|
General and administrative
For the first quarter of 2018, general and administrative expense increased by €6.0 million, or 67%, year-over-year, to €14.9 million, which was primarily driven by higher professional fees, personnel expense, and share-based compensation.
Professional fees and other increased by €2.6 million in the first quarter of 2018 compared to the first quarter of 2017 primarily due to increased legal, audit and consulting expenses.
Overall personnel and recruiting costs increased by €1.9 million. Share-based compensation increased by €1.6 million in the first quarter of 2018 to €2.9 million.
We plan to move into our new campus in Düsseldorf in June 2018. The contractual lease agreements triggered build-to-suit treatment under U.S. GAAP. We have bifurcated our lease payments relating to the premises into a portion that is allocated to the building (a reduction to the financing obligation) and a portion that is allocated to the land on which the building was constructed. The portion of the lease obligations allocated to the land is treated as an operating lease that commenced in July 2015. For the quarter ended March 31, 2018, we recorded €0.4 million of non-cash land rent expense in connection with this lease, unchanged compared to the same period in 2017.
Amortization of intangible assets
Amortization of intangible assets was €0.4 million in the first quarter of 2018, compared to €2.0 million in the first quarter of 2017. These amortization costs relate predominantly to intangible assets recognized by Expedia Group upon the acquisition of a majority stake in trivago in 2013, which were allocated to trivago. The amortization expense decreased as some of these intangible assets reached the end of their useful lives.
Share-based compensation was €4.5 million in the first quarter of 2018, compared to €3.3 million in the first quarter of 2017.