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SEC Filings

6-K
TRIVAGO N.V. filed this Form 6-K on 07/25/2018
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Technology and content
For the second quarter of 2018, technology and content expense increased by €4.0 million to €17.0 million, or 31% period-over-period, and for the six months ended June 30, 2018, increased by €7.8 million to €32.5 million, or 32% period over period. The increase was primarily driven by an increase in personnel costs of €1.6 million and €3.5 million during the second quarter and six months ended June 30, 2018, respectively, as we continued to invest in headcount. The increase was also driven by higher office expenses of €0.7 million in the second quarter of 2018 and of €1.0 million in the six months ended June 30, 2018 due to expansions relating to the headcount increases, and higher costs for third-party IT service providers of €0.6 million and of €1.1 million respectively. Share-based compensation increased by €0.3 million and €0.1 million during the second quarter and six months ended June 30, 2018, compared to the same periods in 2017.

General and administrative
General and administrative expenses increased by €4.0 million, or 36%, to €15.2 million in the second quarter of 2018 and increased by €10.0 million, or 50%, to €30.1 million in the six months ended June 30, 2018, compared to the same periods in 2017.

Professional fees and other expenses increased by €1.8 million and €4.4 million during the second quarter and six months ended June 30, 2018, compared to the same periods in 2017, primarily due to an increase in audit and consulting expenses, as well as the impairment of internal-use software. In addition, legal expenses increased during the six months ended June 30, 2018.

Personnel and recruiting expenses increased by €1.3 million and €3.2 million during the second quarter and six months ended June 30, 2018, compared to the same periods in 2017, primarily driven by an increase in headcount.

Share-based compensation increased by €0.9 million to €3.0 million in the second quarter of 2018 and by €2.5 million to €5.9 million in the six months ended June 30, 2018, compared to the same periods in 2017.

We moved into our new campus in Düsseldorf in June 2018. The contractual lease agreements triggered build-to-suit treatment under U.S. GAAP, and the move-in triggered a sale and subsequent leaseback transaction. We have bifurcated our lease payments relating to the premises into a portion that is allocated to the building (a reduction of 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 June 30, 2018, we recorded €0.4 million of non-cash land rent expense in connection with this lease, of which €0.3 million are general and administrative expense, compared to €0.4 million in the same period in 2017. Depreciation of the fixed asset commenced upon construction completion, resulting in €0.2 million of depreciation expense for the second quarter of 2018, of which the majority is recorded as technology and content expense.

Amortization of intangible assets
Amortization of intangible assets remained unchanged at €0.4 million during the second quarter of 2018 and decreased by €1.6 million to €0.8 million during the six months ended June 30, 2018 compared to the same period in 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
Share-based compensation increased by €1.3 million to €5.4 million, or 32% and by €2.5 million to €9.9 million, or 34% during the second quarter and the six months ended June 30, 2018, compared to the same periods in 2017.


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