Print Page      Close Window     

SEC Filings

6-K
TRIVAGO N.V. filed this Form 6-K on 10/24/2018
Entire Document
 

reductions in our Advertising Spend across all segments in the third quarter of 2018 in order to improve profitability. These reductions were implemented across all segments, and were reflected in reduced brand marketing expenditure and increased return on investment targets for our performance marketing campaigns. Reflecting these changes, our return on brand marketing spend improved substantially.

In the nine months ended September 30, 2018, ROAS slightly improved across all segments by 0.6 ppts, 5.1 ppts and 3.1 ppts in Americas, Developed Europe and RoW, respectively, compared to the same period in 2017. The increase was mainly driven by substantial improved return on brand marketing spend in the third quarter of 2018, and partly offset by lower ROAS in the first quarter of 2018 when we lowered profitability targets on our Advertising Spend to support revenue levels.

Expenses (€ millions)
 
Costs and Expenses
 
As a % of Revenue
 
Three months ended September 30,
 
Three months ended September 30,
 
2018
 
2017
 
Δ %
 
2018
 
2017
 
Δ in ppts
Cost of revenue
1.4

 
1.8

 
(22)%
 
1%
 
1%
 
—%
of which share-based compensation
0.1

 
0.0

 
0%
 
 
 
 
 
 
Selling and marketing
204.2

 
274.4

 
(26)%
 
80%
 
95%
 
(15)%
of which share-based compensation
0.8

 
0.8

 
—%
 
 
 
 
 
 
Technology and content
17.1

 
13.4

 
28%
 
7%
 
5%
 
2%
of which share-based compensation
1.5

 
0.8

 
88%
 
 
 
 
 
 
General and administrative
12.7

 
12.1

 
5%
 
5%
 
4%
 
1%
of which share-based compensation
3.0

 
3.2

 
(6)%
 
 
 
 
 
 
Amortization of intangible assets
0.4

 
0.4

 
0%
 
0%
 
0%
 
0%
Total costs and expenses
235.8

 
302.2

 
(22)%
 
93%
 
105%
 
(12)%

 
Costs and Expenses
 
As a % of Revenue
 
Nine months ended September 30,
 
Nine months ended September 30,
 
2018
 
2017
 
Δ % Y/Y
 
2018
 
2017
 
Δ in ppts
Cost of revenue
4.4

 
4.3

 
2%
 
1%
 
1%
 
—%
of which share-based compensation
0.1

 
0.1

 
0%
 
 
 
 
 
 
Selling and marketing
687.9

 
781.2

 
(12)%
 
92%
 
91%
 
1%
of which share-based compensation
2.6

 
2.7

 
(4)%
 
 
 
 
 
 
Technology and content
49.6

 
38.1

 
30%
 
7%
 
4%
 
3%
of which share-based compensation
3.6

 
2.8

 
29%
 
 
 
 
 
 
General and administrative
42.8

 
32.2

 
33%
 
6%
 
4%
 
2%
of which share-based compensation
8.9

 
6.7

 
33%
 
 
 
 
 
 
Amortization of intangible assets
1.3

 
2.8

 
(54)%
 
0%
 
0%
 
0%
Total costs and expenses
786.0

 
858.6

 
(8)%
 
105%
 
101%
 
4%
Note: Some figures may not add due to rounding.


10