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SEC Filings

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

Referral Revenue, Other Revenue, Qualified Referrals & RPQR

Referral Revenue by Segment & Other Revenue (€ millions)

Management has identified three reportable segments, which correspond to our three operating segments: the Americas, Developed Europe and Rest of World. Our Americas segment is comprised of Argentina, Barbados, Brazil, Canada, Chile, Columbia, Costa Rica, Ecuador, Mexico, Montenegro, Panama, Peru, Puerto Rico, the United States and Uruguay. Our Developed Europe segment is comprised of Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. Our Rest of World segment is comprised of all other countries, the most significant by revenue of which are Australia, Japan, India, New Zealand and Hong Kong. We believe the different trends in Referral Revenue across our reportable segments is primarily related to the different stages of development of our markets. We generate the most Referral Revenue in Developed Europe, our segment that includes the markets where we have operated the longest and where we have the highest level of brand awareness, but have also historically experienced relatively modest growth and where our revenue declined in the first quarter of 2018. We experience higher growth rates in newer markets, and as a result, our Referral Revenue in RoW continues to grow.
Three months ended March 31,
Δ €
Δ %


Developed Europe


Rest of World


Total Referral Revenue


Other Revenue


Total Revenue


Note: Some figures may not add due to rounding.

Total Revenue decreased by €8.2 million during the first quarter of 2018, compared to the same period in 2017, negatively impacted by lower levels of commercialization, as our advertisers optimized their spending across regions, and a slow-down in Qualified Referral growth.

Referral Revenue in the first quarter of 2018 increased to €54.2 million in Rest of World (RoW), or by 12%, while it decreased to €97.2 million and €104.5 million in Americas and Developed Europe, or by 5% and 8% respectively, as compared to the same period in 2017. The year-over-year declines in Referral Revenue in Developed Europe and Americas and the slow-down in the Referral Revenue growth rate in RoW were driven by the negative impacts on our levels of commercialization, as described above. In Developed Europe, the number of Qualified Referrals declined, while the growth rates in Qualified Referrals slowed in Americas and RoW, also reflecting lower marginal returns on increased advertising spend in these two segments. The slowdown in Qualified Referrals growth has negatively impacted Referral Revenue in all segments, particularly in Developed Europe.

Foreign exchange rate effects in the first quarter of 2018, in particular the relative weakening of the U.S. dollar and a number of other currencies in the Asia Pacific region to the euro, have negatively impacted Referral Revenue growth in Americas and RoW.

Other Revenue grew by 3% in the first quarter as compared to the same period in 2017. This increase was primarily driven by an increase in the number of Hotel Manager Pro subscriptions for which we receive a fee.