|TRIVAGO N.V. filed this Form 6-K on 07/25/2018|
Qualified Referrals by Segment (in millions)
Note: Some figures may not add due to rounding.
Qualified Referrals in the second quarter of 2018 decreased year-over-year in Americas and Developed Europe while increasing in RoW year-over-year. The decline in Americas and Developed Europe, and slowdown of growth rate in RoW were the result of reductions in advertising spend during the second quarter of 2018.
Qualified Referrals in the six months ended June 30, 2018 slightly decreased in Americas, declined in Developed Europe and increased in RoW compared to the same period in 2017. The slight decline in Americas was due to the decline in Qualified Referrals in the second quarter that more than offset the positive growth in Qualified Referrals in the first quarter of 2018. The decline in Developed Europe was due to a decline in the first quarter of 2018 which reflected the negative impacts of reduced click-outs rates due to the roll-out of the attribution model and ongoing product optimizations, together with a further decline in the second quarter of 2018. The increase in RoW was driven by a strong increase in the first quarter of 2018 reflecting increased advertising spend, which was partly offset by the slowed growth in the second quarter of 2018.
Revenue Per Qualified Referrals (RPQR)
We use RPQR to measure how effectively we convert Qualified Referrals to revenue. RPQR is calculated as Referral Revenue divided by the total number of Qualified Referrals in a given period. Alternatively, RPQR can be separated into its price and volume components and calculated as follows:
RPQR = RPR x click-out rate
RPR = revenue per referral
click-out rate = referrals / Qualified Referrals
RPQR is a key financial metric that describes the quality of our referrals, the efficiency of our marketplace and, as a consequence, how effectively we monetize the referrals we provide our advertisers. Furthermore, we use RPQR to help us detect and analyze changes in market dynamics.
The following table sets forth the RPQR for our reportable segments for the periods indicated (based on Referral Revenue):
RPQR by Segment (in €)