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SEC Filings

6-K
TRIVAGO N.V. filed this Form 6-K on 02/06/2019
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Technology and content
For the fourth quarter of 2018, technology and content expense increased by €3.2 million to €17.3 million, or 23%, period-over-period, and for the twelve months ended December 31, 2018, increased by €14.7 million to €66.9 million year-over-year, or 28% compared to the same period in 2017.

The increase in technology and content expense was primarily driven by an increase in personnel costs of €1.0 million and €5.1 million in the fourth quarter of 2018 and twelve months ended December 31, 2018, respectively, compared to the same periods in 2017. For the fourth quarter of 2018, personnel costs increased primarily due to an increase in social security expense resulting from an audit assessment by the German Social Security authorities in 2018 of €0.9 million relating to prior periods, and due to an increase in compensation expense and related social security amounts of €0.5 million, which was slightly offset by a reduction of our employee benefits compared to the same period in 2017. For the twelve months ended December 31, 2018, personnel costs increased mainly due to an increase in compensation expense and related social security amounts of €5.9 million, as our headcount was higher in the first half of 2018 compared to the same period in 2017, combined with an audit assessment by the German Social Security authorities of €0.9 million in 2018 predominantly relating to prior periods. These increases were slightly offset by a higher capitalization of our developers' salaries, as well as lower employee benefits in the twelve months ended December 31, 2018, compared to the same period in 2017.

Our costs for third-party IT service providers increased by €0.7 million in the fourth quarter of 2018, and by €3.1 million in the twelve months ended December 31, 2018, compared to the same periods in 2017, mainly due to higher data center and cloud-related expenses.

The increase in technology and content expense was also driven by higher depreciation expense by €0.6 million and €2.1 million, and higher office expenses by €0.4 million and €1.8 million in the fourth quarter of 2018, and twelve months ended December 31, 2018, respectively, compared to the same periods in 2017, mainly due to the new campus.

Share-based compensation increased by €0.9 million and €1.7 million during the fourth quarter of 2018 and twelve months ended December 31, 2018, compared to the same periods in 2017.

General and administrative
General and administrative expenses decreased by €3.8 million, or 25% period-over-period, to €11.5 million in the fourth quarter of 2018 and increased by €6.9 million, or 15% year-over-year, to €54.3 million in the twelve months ended December 31, 2018, compared to the same periods in 2017.

For the fourth quarter ended December 31, 2018, the decrease in general and administrative expenses was driven by a reduction in professional fees and other expenses by €4.9 million compared to the same period in 2017, primarily driven by a decrease in legal, consulting and audit expense of €4.1 million, the reclassification of €0.9 million taxes withheld in foreign jurisdiction to income tax provision, and an adjustment in 2018 to losses on receivables recorded in prior periods. These were slightly offset by a reallocation of certain insurance expenses in the fourth quarter of 2018 to general and administrative expense. Personnel and recruiting expenses increased slightly by €0.1 million, primarily due to a €0.3 million increase in social security expense resulting from an audit assessment by the German Social Security authorities relating to prior periods, that was partly offset by a decrease in compensation expense and related social security amounts of €0.2 million due to a reduction in headcount compared to the same period in 2017. Share-based compensation increased by €1.0 million to €3.1 million in the fourth quarter of 2018, compared to the same period in 2017.

For the twelve months ended December 31, 2018, the increase in general and administrative expense was primarily driven by an increase in personnel and recruiting expenses of €3.8 million, mainly due to an increase in compensation expense and related social security amounts of €3.1 million, as our headcount was higher in the first three quarters of 2018 compared to the same periods in 2017, as well as an audit assessment

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