trivago N.V. | |||||||||||||||||
Date: August 1, 2023 | By: | /s/ Matthias Tillmann | |||||||||||||||
Matthias Tillmann | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ Y/Y | 2023 | 2022 | Δ Y/Y | ||||||||||||||||||||||||||||||
Total revenue | 124.4 | 144.8 | (14)% | 235.5 | 246.4 | (4)% | |||||||||||||||||||||||||||||
Referral Revenue | 122.6 | 141.4 | (13)% | 231.9 | 239.9 | (3)% | |||||||||||||||||||||||||||||
Return on Advertising Spend | 144.6% | 165.9% | (21.3) ppts | 154.9% | 172.8% | (17.9) ppts | |||||||||||||||||||||||||||||
Net income/(loss) | 5.8 | (59.8) | n.m. | 15.7 | (70.5) | n.m. | |||||||||||||||||||||||||||||
Adjusted EBITDA(1) | 12.2 | 30.3 | (60)% | 30.7 | 51.4 | (40)% |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ € | Δ % | 2023 | 2022 | Δ € | Δ % Y/Y | ||||||||||||||||||||||||||||||||||||||||
Americas | € | 42.9 | € | 55.7 | (12.8) | (23)% | € | 83.4 | € | 99.4 | (16.0) | (16)% | |||||||||||||||||||||||||||||||||||
Developed Europe | 56.7 | 66.8 | (10.1) | (15)% | 108.6 | 110.3 | (1.7) | (2)% | |||||||||||||||||||||||||||||||||||||||
Rest of World | 22.9 | 19.0 | 3.9 | 21% | 39.9 | 30.2 | 9.7 | 32% | |||||||||||||||||||||||||||||||||||||||
Total Referral Revenue | € | 122.6 | € | 141.4 | (18.8) | (13)% | € | 231.9 | € | 239.9 | (8.0) | (3)% | |||||||||||||||||||||||||||||||||||
Other revenue | 1.9 | 3.3 | (1.4) | (42)% | 3.6 | 6.5 | (2.9) | (45)% | |||||||||||||||||||||||||||||||||||||||
Total revenue | € | 124.4 | € | 144.8 | (20.4) | (14)% | € | 235.5 | € | 246.4 | (10.9) | (4)% |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ ppts | 2023 | 2022 | Δ ppts | ||||||||||||||||||||||||||||||
ROAS | |||||||||||||||||||||||||||||||||||
Americas | 142.1% | 166.8% | (24.7) ppts | 157.1% | 174.2% | (17.1) ppts | |||||||||||||||||||||||||||||
Developed Europe | 139.9% | 157.1% | (17.2) ppts | 148.8% | 164.3% | (15.5) ppts | |||||||||||||||||||||||||||||
Rest of World | 163.7% | 202.1% | (38.4) ppts | 168.6% | 206.9% | (38.3) ppts | |||||||||||||||||||||||||||||
Consolidated ROAS | 144.6% | 165.9% | (21.3) ppts | 154.9% | 172.8% | (17.9) ppts |
Costs and expenses | As a % of revenue | ||||||||||||||||||||||||||||||||||
Three months ended June 30, | Three months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ % | 2023 | 2022 | Δ in ppts | ||||||||||||||||||||||||||||||
Cost of revenue | € | 3.0 | € | 3.0 | — | % | 2 | % | 2 | % | — | % | |||||||||||||||||||||||
of which share-based compensation | 0.0 | 0.1 | (100) | % | |||||||||||||||||||||||||||||||
Selling and marketing | 90.2 | 92.4 | (2) | % | 73 | % | 64 | % | 9 | % | |||||||||||||||||||||||||
of which share-based compensation | 0.1 | 0.2 | (50) | % | |||||||||||||||||||||||||||||||
Technology and content | 12.4 | 15.5 | (20) | % | 10 | % | 11 | % | (1) | % | |||||||||||||||||||||||||
of which share-based compensation | 0.5 | 1.0 | (50) | % | |||||||||||||||||||||||||||||||
General and administrative | 10.3 | 9.5 | 8 | % | 8 | % | 7 | % | 1 | % | |||||||||||||||||||||||||
of which share-based compensation | 1.9 | 2.4 | (21) | % | |||||||||||||||||||||||||||||||
Amortization of intangible assets | 0.0 | 0.0 | — | % | 0 | % | 0 | % | — | % | |||||||||||||||||||||||||
Impairment of intangible assets and goodwill | — | 84.2 | (100) | % | 0 | % | 58 | % | (58) | % | |||||||||||||||||||||||||
Total costs and expenses | € | 115.9 | € | 204.5 | (43) | % | 93% | 141 | % | (48) | % |
Costs and Expenses | As a % of Revenue | ||||||||||||||||||||||||||||||||||
Six months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ % Y/Y | 2023 | 2022 | Δ in ppts | ||||||||||||||||||||||||||||||
Cost of revenue | € | 6.1 | € | 6.0 | 2% | 3 | % | 2 | % | 1 | % | ||||||||||||||||||||||||
of which share-based compensation | 0.1 | 0.1 | —% | ||||||||||||||||||||||||||||||||
Selling and marketing | 160.2 | 151.7 | 6% | 68 | % | 62 | % | 6 | % | ||||||||||||||||||||||||||
of which share-based compensation | 0.2 | 0.4 | (50)% | ||||||||||||||||||||||||||||||||
Technology and content | 24.9 | 29.0 | (14)% | 11 | % | 12 | % | (1) | % | ||||||||||||||||||||||||||
of which share-based compensation | 0.8 | 1.6 | (50)% | ||||||||||||||||||||||||||||||||
General and administrative | 20.8 | 40.1 | (48)% | 9 | % | 16 | % | (7) | % | ||||||||||||||||||||||||||
of which share-based compensation | 4.1 | 4.6 | (11)% | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 0.1 | 0.1 | —% | 0 | % | 0 | % | — | % | ||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | — | 84.2 | 100% | —% | 34 | % | (34) | % | |||||||||||||||||||||||||||
Total costs and expenses | € | 212.1 | € | 311.0 | (32)% | 90% | 126 | % | (36) | % | |||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ € | 2023 | 2022 | Δ € | ||||||||||||||||||||||||||||||
Operating income/(loss) | € | 8.6 | € | (59.8) | 68.4 | € | 23.3 | € | (64.6) | 87.9 | |||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||||||||
Interest expense | (0.0) | (0.0) | — | (0.0) | (0.0) | — | |||||||||||||||||||||||||||||
Interest income | 1.3 | 0.0 | 1.3 | 2.3 | 0.1 | 2.2 | |||||||||||||||||||||||||||||
Other, net | (0.1) | 0.3 | (0.4) | (0.2) | 0.4 | (0.6) | |||||||||||||||||||||||||||||
Total other income/(expense), net | € | 1.3 | € | 0.2 | 1.1 | € | 2.1 | € | 0.5 | 1.6 | |||||||||||||||||||||||||
Income/(loss) before income taxes | 9.8 | (59.5) | 69.3 | 25.4 | (64.2) | 89.6 | |||||||||||||||||||||||||||||
Expense for income taxes | 4.1 | 0.2 | 3.9 | 9.6 | 6.3 | 3.3 | |||||||||||||||||||||||||||||
Income/(loss) before equity method investment | € | 5.8 | € | (59.8) | 65.6 | € | 15.8 | € | (70.4) | 86.2 | |||||||||||||||||||||||||
Gain/(loss) from equity method investment | 0.0 | (0.1) | 0.1 | (0.1) | (0.1) | — | |||||||||||||||||||||||||||||
Net income/(loss) | € | 5.8 | € | (59.8) | 65.6 | € | 15.7 | € | (70.5) | 86.2 | |||||||||||||||||||||||||
Adjusted EBITDA(1) | € | 12.2 | € | 30.3 | (18.1) | € | 30.7 | € | 51.4 | (20.7) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
ROAS by segment | |||||||||||||||||||||||
Americas | 142.1% | 166.8% | 157.1% | 174.2% | |||||||||||||||||||
Developed Europe | 139.9% | 157.1% | 148.8% | 164.3% | |||||||||||||||||||
Rest of World | 163.7% | 202.1% | 168.6% | 206.9% | |||||||||||||||||||
Consolidated ROAS | 144.6% | 165.9% | 154.9% | 172.8% | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income/(loss) | € | 5.8 | € | (59.8) | € | 15.7 | € | (70.5) | |||||||||||||||
Gain/(loss) from equity method investment | 0.0 | (0.1) | (0.1) | (0.1) | |||||||||||||||||||
Income/(loss) before equity method investment | € | 5.8 | € | (59.8) | € | 15.8 | € | (70.4) | |||||||||||||||
Expense for income taxes | 4.1 | 0.2 | 9.6 | 6.3 | |||||||||||||||||||
Income/(loss) before income taxes | € | 9.8 | € | (59.5) | € | 25.4 | € | (64.2) | |||||||||||||||
Add/(less): | |||||||||||||||||||||||
Interest expense | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||
Interest income | (1.3) | 0.0 | (2.3) | (0.1) | |||||||||||||||||||
Other, net | 0.1 | (0.3) | 0.2 | (0.4) | |||||||||||||||||||
Operating income/(loss) | € | 8.6 | € | (59.8) | € | 23.3 | € | (64.6) | |||||||||||||||
Depreciation of property and equipment and amortization of intangible assets | 1.1 | 1.7 | 2.3 | 3.4 | |||||||||||||||||||
Impairment of, and gains and losses on disposals of, property and equipment | 0.0 | 0.9 | 0.0 | 0.9 | |||||||||||||||||||
Impairment of intangible assets and goodwill | — | 84.2 | — | 84.2 | |||||||||||||||||||
Share-based compensation | 2.5 | 3.7 | 5.1 | 6.8 | |||||||||||||||||||
Certain other items, including restructuring, significant legal settlements and court-ordered penalties | 0.0 | (0.4) | 0.0 | 20.7 | |||||||||||||||||||
Adjusted EBITDA | € | 12.2 | € | 30.3 | € | 30.7 | € | 51.4 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | € | 75,648 | € | 103,769 | € | 146,123 | € | 171,477 | |||||||||||||||
Revenue from related party | 48,788 | 41,006 | 89,349 | 74,936 | |||||||||||||||||||
Total revenue | 124,436 | 144,775 | 235,472 | 246,413 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization (1) | 2,980 | 2,984 | 6,143 | 5,963 | |||||||||||||||||||
Selling and marketing, including related party (1)(2)(3) | 90,164 | 92,369 | 160,230 | 151,692 | |||||||||||||||||||
Technology and content, including related party (1)(2)(3) | 12,405 | 15,473 | 24,866 | 29,047 | |||||||||||||||||||
General and administrative, including related party (1)(2)(3) | 10,286 | 9,510 | 20,839 | 40,081 | |||||||||||||||||||
Amortization of intangible assets (2) | 34 | 34 | 67 | 68 | |||||||||||||||||||
Impairment of intangible assets and goodwill | — | 84,177 | — | 84,177 | |||||||||||||||||||
Operating income/(loss) | 8,567 | (59,772) | 23,327 | (64,615) | |||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||
Interest expense | (1) | (20) | (4) | (35) | |||||||||||||||||||
Interest income | 1,329 | 31 | 2,289 | 129 | |||||||||||||||||||
Other, net | (57) | 221 | (214) | 355 | |||||||||||||||||||
Total other income/(expense), net | 1,271 | 232 | 2,071 | 449 | |||||||||||||||||||
Income/(loss) before income taxes | 9,838 | (59,540) | 25,398 | (64,166) | |||||||||||||||||||
Expense for income taxes | 4,080 | 212 | 9,616 | 6,282 | |||||||||||||||||||
Income/(loss) before equity method investment | 5,758 | (59,752) | 15,782 | (70,448) | |||||||||||||||||||
Gain/(loss) from equity method investment | 18 | (54) | (118) | (54) | |||||||||||||||||||
Net income/(loss) | € | 5,776 | € | (59,806) | € | 15,664 | € | (70,502) | |||||||||||||||
Earnings per share available to common stockholders: | |||||||||||||||||||||||
Basic | € | 0.02 | € | (0.17) | € | 0.05 | € | (0.20) | |||||||||||||||
Diluted | 0.02 | (0.17) | 0.04 | (0.20) | |||||||||||||||||||
Shares used in computing earnings per share: | |||||||||||||||||||||||
Basic | 343,259 | 359,990 | 342,912 | 359,636 | |||||||||||||||||||
Diluted | 352,440 | 359,990 | 352,728 | 359,636 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(1) Includes share-based compensation as follows: | |||||||||||||||||||||||
Cost of revenue | € | 38 | € | 61 | € | 71 | € | 102 | |||||||||||||||
Selling and marketing | 132 | 229 | 192 | 431 | |||||||||||||||||||
Technology and content | 472 | 991 | 786 | 1,627 | |||||||||||||||||||
General and administrative | 1,865 | 2,384 | 4,089 | 4,638 | |||||||||||||||||||
(2) Includes amortization as follows: | |||||||||||||||||||||||
Amortization of internal use software costs included in selling and marketing | € | — | € | 2 | € | — | € | 8 | |||||||||||||||
Amortization of internal use software and website development costs included in technology and content | 728 | 1,075 | 1,491 | 2,162 | |||||||||||||||||||
Amortization of internal use software costs included in general and administrative | — | 46 | — | 103 | |||||||||||||||||||
Amortization of acquired technology included in amortization of intangible assets | 34 | 34 | 67 | 68 | |||||||||||||||||||
(3) Includes related party expense as follows: | |||||||||||||||||||||||
Selling and marketing | € | 36 | € | 40 | € | 48 | € | 86 | |||||||||||||||
Technology and content | 412 | 55 | 814 | 61 | |||||||||||||||||||
General and administrative | — | — | 24 | 1 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income/(loss) | € | 5,776 | € | (59,806) | € | 15,664 | € | (70,502) | |||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Currency translation adjustments | 5 | 16 | 3 | 28 | |||||||||||||||||||
Total other comprehensive income | 5 | 16 | 3 | 28 | |||||||||||||||||||
Comprehensive income/(loss) | € | 5,781 | € | (59,790) | € | 15,667 | € | (70,474) |
ASSETS | As of June 30, 2023 | As of December 31, 2022 | |||||||||
Current assets: | |||||||||||
Cash and cash equivalents | € | 272,662 | € | 248,584 | |||||||
Restricted cash | 342 | 342 | |||||||||
Accounts receivable, net of allowance for credit losses of €1,212 and €418 at June 30, 2023 and December 31, 2022, respectively | 32,423 | 25,679 | |||||||||
Accounts receivable, related party | 33,298 | 24,432 | |||||||||
Short-term investments | 25,000 | 45,000 | |||||||||
Tax receivable | 1,895 | 498 | |||||||||
Prepaid expenses and other current assets | 14,499 | 8,669 | |||||||||
Total current assets | 380,119 | 353,204 | |||||||||
Property and equipment, net | 10,448 | 13,075 | |||||||||
Operating lease right-of-use assets | 43,448 | 45,028 | |||||||||
Investments and other assets | 9,295 | 8,409 | |||||||||
Intangible assets, net | 89,882 | 89,949 | |||||||||
Goodwill | 181,927 | 181,927 | |||||||||
TOTAL ASSETS | € | 715,119 | € | 691,592 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | € | 32,668 | € | 19,941 | |||||||
Income taxes payable | 3,943 | 12,325 | |||||||||
Deferred revenue | 1,323 | 1,689 | |||||||||
Payroll liabilities | 6,685 | 2,454 | |||||||||
Accrued expenses and other current liabilities | 10,709 | 8,675 | |||||||||
Operating lease liability | 2,263 | 4,538 | |||||||||
Total current liabilities | 57,591 | 49,622 | |||||||||
Operating lease liability | 39,594 | 40,729 | |||||||||
Deferred income taxes | 30,001 | 30,050 | |||||||||
Other long-term liabilities | 8,749 | 9,455 | |||||||||
Stockholders’ equity: | |||||||||||
Class A common stock, €0.06 par value - 700,000,000 shares authorized, Shares issued: 127,879,457 and 124,305,225, respectively Shares outstanding: 107,879,457 and 104,305,225, respectively | 7,672 | 7,458 | |||||||||
Class B common stock, €0.60 par value - 320,000,000 shares authorized, 237,476,895 and 237,476,895 shares issued and outstanding, respectively | 142,486 | 142,486 | |||||||||
Treasury stock at cost - Class A shares, 20,000,000 and 20,000,000 shares, respectively | (19,960) | (19,960) | |||||||||
Reserves | 865,554 | 863,987 | |||||||||
Contribution from Parent | 122,307 | 122,307 | |||||||||
Accumulated other comprehensive income | 57 | 54 | |||||||||
Accumulated deficit | (538,932) | (554,596) | |||||||||
Total stockholders' equity | 579,184 | 561,736 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | € | 715,119 | € | 691,592 |
Three months ended June 30, 2023 | Class A common stock | Class B common stock | Treasury stock - Class A common stock | Reserves | Retained earnings (accumulated deficit) | Accumulated other comprehensive income/(loss) | Contribution from Parent | Total stockholders' equity | |||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | € | 7,505 | € | 142,486 | € | (19,960) | € | 866,562 | € | (544,708) | € | 52 | € | 122,307 | € | 574,244 | |||||||||||||||||||||||||||||||
Net income | 5,776 | 5,776 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (net of tax) | 5 | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 2,507 | 2,507 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of options and vesting of RSUs | 167 | (10) | 157 | ||||||||||||||||||||||||||||||||||||||||||||
Withholding taxes on net share settlements of equity awards | (3,505) | (3,505) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | € | 7,672 | € | 142,486 | € | (19,960) | € | 865,554 | € | (538,932) | € | 57 | € | 122,307 | € | 579,184 |
Six months ended June 30, 2023 | Class A common stock | Class B common stock | Treasury stock - Class A common stock | Reserves | Retained earnings (accumulated deficit) | Accumulated other comprehensive income/(loss) | Contribution from Parent | Total stockholders' equity | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | € | 7,458 | € | 142,486 | € | (19,960) | € | 863,987 | € | (554,596) | € | 54 | € | 122,307 | € | 561,736 | |||||||||||||||||||||||||||||||
Net income | 15,664 | 15,664 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (net of tax) | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 5,138 | 5,138 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of options and vesting of RSUs | 214 | (33) | 181 | ||||||||||||||||||||||||||||||||||||||||||||
Withholding taxes on net share settlements of equity awards | (3,538) | (3,538) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | € | 7,672 | € | 142,486 | € | (19,960) | € | 865,554 | € | (538,932) | € | 57 | € | 122,307 | € | 579,184 |
Three months ended June 30, 2022 | Class A common stock | Class B common stock | Treasury stock - Class A common stock | Reserves | Retained earnings (accumulated deficit) | Accumulated other comprehensive income/(loss) | Contribution from Parent | Total stockholders' equity | |||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | € | 5,934 | € | 156,458 | € | — | € | 839,599 | € | (438,074) | € | 48 | € | 122,307 | € | 686,272 | |||||||||||||||||||||||||||||||
Net loss | (59,806) | (59,806) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (net of tax) | 16 | 16 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 3,665 | 3,665 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B shares | 1,397 | (13,972) | 12,575 | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of options and vesting of RSUs | 31 | (22) | 9 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (23) | (23) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | € | 7,362 | € | 142,486 | € | (23) | € | 855,817 | € | (497,880) | € | 64 | € | 122,307 | € | 630,133 |
Six months ended June 30, 2022 | Class A common stock | Class B common stock | Treasury stock - Class A common stock | Reserves | Retained earnings (accumulated deficit) | Accumulated other comprehensive income/(loss) | Contribution from Parent | Total stockholders' equity | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | € | 5,802 | € | 157,178 | € | — | € | 835,839 | € | (427,378) | € | 36 | € | 122,307 | € | 693,784 | |||||||||||||||||||||||||||||||
Net loss | (70,502) | (70,502) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (net of tax) | 28 | 28 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 6,798 | 6,798 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B shares | 1,469 | (14,692) | 13,223 | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of options and vesting of RSUs | 91 | (43) | 48 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (23) | (23) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | € | 7,362 | € | 142,486 | € | (23) | € | 855,817 | € | (497,880) | € | 64 | € | 122,307 | € | 630,133 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Net income/(loss) | € | 5,776 | € | (59,806) | € | 15,664 | € | (70,502) | |||||||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by: | |||||||||||||||||||||||
Depreciation (property and equipment and internal-use software and website development) | 1,073 | 1,616 | 2,213 | 3,319 | |||||||||||||||||||
Amortization of intangible assets | 34 | 34 | 67 | 68 | |||||||||||||||||||
Goodwill and intangible assets impairment loss | — | 84,177 | — | 84,177 | |||||||||||||||||||
Impairment of long-lived assets including internal-use software and website development | — | 893 | — | 893 | |||||||||||||||||||
Share-based compensation | 2,507 | 3,665 | 5,138 | 6,798 | |||||||||||||||||||
Deferred income taxes | 677 | (3,157) | (49) | (3,569) | |||||||||||||||||||
Foreign exchange (gain)/loss | 58 | (365) | 363 | (697) | |||||||||||||||||||
Expected credit losses, net | 182 | 85 | 832 | 23 | |||||||||||||||||||
Gain on disposal of fixed assets | (13) | (7) | (14) | (10) | |||||||||||||||||||
(Income)/loss from equity method investment | (18) | 54 | 118 | 54 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable, including related party | (10,729) | (18,489) | (16,482) | (34,513) | |||||||||||||||||||
Prepaid expenses and other assets | (7,972) | (5,930) | (6,853) | (3,849) | |||||||||||||||||||
Accounts payable | 12,640 | 19,084 | 12,589 | 25,492 | |||||||||||||||||||
Payroll liabilities | 1,973 | 44 | 2,547 | 442 | |||||||||||||||||||
Accrued expenses and other liabilities | 712 | (29,719) | 1,737 | (875) | |||||||||||||||||||
Deferred revenue | (264) | (182) | (366) | (406) | |||||||||||||||||||
Taxes payable/receivable, net | (3,190) | 812 | (9,797) | (1,933) | |||||||||||||||||||
Net cash provided by/(used in) operating activities | 3,446 | (7,191) | 7,707 | 4,912 | |||||||||||||||||||
Investing activities: | |||||||||||||||||||||||
Purchase of investments | — | (50,000) | — | (50,000) | |||||||||||||||||||
Proceeds from sales and maturities of investments | 15,000 | — | 20,000 | — | |||||||||||||||||||
Capital expenditures, including internal-use software and website development | (946) | (1,149) | (1,696) | (2,206) | |||||||||||||||||||
Investment in equity-method investees | — | (5,951) | — | (5,951) | |||||||||||||||||||
Proceeds from sale of fixed assets | 22 | 7 | 23 | 10 | |||||||||||||||||||
Net cash provided by/(used in) investing activities | 14,076 | (57,093) | 18,327 | (58,147) | |||||||||||||||||||
Financing activities: | |||||||||||||||||||||||
Proceeds from exercise of option awards | 157 | 9 | 181 | 48 | |||||||||||||||||||
Payment of withholding taxes on net share settlements of equity awards | (1,802) | — | (1,802) | — | |||||||||||||||||||
Repayment of other non-current liabilities | (13) | (43) | (26) | (86) | |||||||||||||||||||
Net cash used in financing activities | (1,658) | (34) | (1,647) | (38) | |||||||||||||||||||
Effect of exchange rate changes on cash | 52 | 126 | (309) | 1,431 | |||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 15,916 | (64,192) | 24,078 | (51,842) | |||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of the period | 257,088 | 269,069 | 248,926 | 256,719 | |||||||||||||||||||
Cash, cash equivalents and restricted cash at end of the period | € | 273,004 | € | 204,877 | € | 273,004 | € | 204,877 | |||||||||||||||
Supplemental cash flow information: | |||||||||||||||||||||||
Cash paid for interest | € | 1 | € | 20 | € | 4 | € | 35 | |||||||||||||||
Cash received for interest | 1,188 | 11 | 2,004 | 109 | |||||||||||||||||||
Cash paid for taxes, net of (refunds) | 6,543 | 2,777 | 19,221 | 5,565 | |||||||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||||||||
Withholding taxes on net share settlements of equity awards-related liability | 1,684 | — | 1,684 | — | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Interest income | € | 1,329 | € | 31 | € | 2,289 | € | 129 |
As of June 30, 2023 | Total | Level 1 | Level 2 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Term deposits | € | 179,000 | € | — | € | 179,000 | ||||||||||||||
Short-term investments: | ||||||||||||||||||||
Term deposits | 25,000 | — | 25,000 | |||||||||||||||||
Investments and other assets: | ||||||||||||||||||||
Term deposits | 1,351 | — | 1,351 | |||||||||||||||||
Total | € | 205,351 | € | — | € | 205,351 |
As of December 31, 2022 | Total | Level 1 | Level 2 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Term deposits | € | 159,000 | € | — | € | 159,000 | ||||||||||||||
Short-term investments: | ||||||||||||||||||||
Term deposits | 45,000 | — | 45,000 | |||||||||||||||||
Investments and other assets: | ||||||||||||||||||||
Term deposits | 1,351 | — | 1,351 | |||||||||||||||||
Total | € | 205,351 | € | — | € | 205,351 |
(in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||
Prepaid advertising | € | 10,491 | € | 6,284 | ||||||||||
Other prepaid expenses | 3,102 | 2,035 | ||||||||||||
Other assets | 906 | 350 | ||||||||||||
Total | € | 14,499 | € | 8,669 |
June 30, 2023 | December 31, 2022 | |||||||||||||
(in thousands) | ||||||||||||||
Building and leasehold improvements | € | 4,117 | € | 6,865 | ||||||||||
Capitalized software and software development costs | 27,599 | 28,867 | ||||||||||||
Computer equipment | 15,276 | 15,916 | ||||||||||||
Furniture and fixtures | 2,999 | 3,045 | ||||||||||||
Subtotal | € | 49,991 | € | 54,693 | ||||||||||
Less: accumulated depreciation | 40,416 | 42,175 | ||||||||||||
Construction in process | 873 | 557 | ||||||||||||
Property and equipment, net | € | 10,448 | € | 13,075 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cost of revenue | € | 38 | € | 61 | € | 71 | € | 102 | |||||||||||||||
Selling and marketing | 132 | 229 | 192 | 431 | |||||||||||||||||||
Technology and content | 472 | 991 | 786 | 1,627 | |||||||||||||||||||
General and administrative | 1,865 | 2,384 | 4,089 | 4,638 | |||||||||||||||||||
Total share-based compensation expense | € | 2,507 | € | 3,665 | € | 5,138 | € | 6,798 |
Options | Weighted average exercise price | Remaining contractual life | Aggregate intrinsic value | ||||||||||||||||||||
(in €) | (In years) | (€ in thousands) | |||||||||||||||||||||
Balance as of January 1, 2023 | 27,357,798 | 2.30 | 10 | 23,179 | |||||||||||||||||||
Granted | 20,879,816 | 1.02 | |||||||||||||||||||||
Exercised(1) | 6,346,032 | 0.06 | |||||||||||||||||||||
Cancelled | 1,297,979 | 2.78 | |||||||||||||||||||||
Balance as of June 30, 2023 | 40,593,603 | 1.96 | 9 | 20,339 | |||||||||||||||||||
Exercisable as of June 30, 2023 | 12,470,575 | 4.53 | 14 | 6,498 | |||||||||||||||||||
Fully Vested and Expected to Vest | Options | Weighted average exercise price | Remaining contractual life | Aggregate intrinsic value | |||||||||||||||||||
(in €) | (In years) | (€ in thousands) | |||||||||||||||||||||
Outstanding | 31,625,126 | 2.24 | 10 | 17,068 | |||||||||||||||||||
Currently Exercisable | 12,470,575 | 4.53 | 14 | 6,498 |
RSUs | Weighted Average Grant Date Fair Value | Remaining contractual life | ||||||||||||||||||
(in €) | (in years) | |||||||||||||||||||
Balance as of January 1, 2023 | 2,972,024 | 1.94 | 6 | |||||||||||||||||
Granted | 1,417,500 | 1.58 | ||||||||||||||||||
Vested(1) | 733,275 | 1.79 | ||||||||||||||||||
Cancelled | 346,269 | 2.16 | ||||||||||||||||||
Balance as of June 30, 2023 | 3,309,980 | 1.74 | 6 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(€ thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income/(loss) | € | 5,776 | € | (59,806) | € | 15,664 | € | (70,502) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares of Class A and Class B common stock outstanding: | |||||||||||||||||||||||
Basic | 343,259 | 359,990 | 342,912 | 359,636 | |||||||||||||||||||
Diluted | 352,440 | 359,990 | 352,728 | 359,636 | |||||||||||||||||||
Net income/(loss) per share: | |||||||||||||||||||||||
Basic | € | 0.02 | € | (0.17) | € | 0.05 | € | (0.20) | |||||||||||||||
Diluted | 0.02 | (0.17) | 0.04 | (0.20) |
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||
(€ thousands) | Developed Europe | Americas | Rest of World | Corporate & Eliminations | Total | ||||||||||||||||||||||||
Referral Revenue | € | 56,744 | € | 42,886 | € | 22,934 | € | — | € | 122,564 | |||||||||||||||||||
Subscription revenue | — | — | — | 669 | 669 | ||||||||||||||||||||||||
Other revenue | — | — | — | 1,203 | 1,203 | ||||||||||||||||||||||||
Total revenue | € | 56,744 | € | 42,886 | € | 22,934 | € | 1,872 | € | 124,436 | |||||||||||||||||||
Advertising Spend | 40,559 | 30,178 | 14,011 | — | 84,748 | ||||||||||||||||||||||||
ROAS contribution | € | 16,185 | € | 12,708 | € | 8,923 | € | 1,872 | € | 39,688 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization | 2,980 | ||||||||||||||||||||||||||||
Other selling and marketing, including related party(1) | 5,416 | ||||||||||||||||||||||||||||
Technology and content, including related party | 12,405 | ||||||||||||||||||||||||||||
General and administrative, including related party | 10,286 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 34 | ||||||||||||||||||||||||||||
Operating income | € | 8,567 | |||||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Interest expense | (1) | ||||||||||||||||||||||||||||
Interest income | 1,329 | ||||||||||||||||||||||||||||
Other, net | (57) | ||||||||||||||||||||||||||||
Total other income/(expense), net | € | 1,271 | |||||||||||||||||||||||||||
Income before income taxes | € | 9,838 | |||||||||||||||||||||||||||
Expense for income taxes | 4,080 | ||||||||||||||||||||||||||||
Income before equity method investment | € | 5,758 | |||||||||||||||||||||||||||
Income from equity method investment | 18 | ||||||||||||||||||||||||||||
Net income | € | 5,776 | |||||||||||||||||||||||||||
Three months ended June 30, 2022 | |||||||||||||||||||||||||||||
(€ thousands) | Developed Europe | Americas | Rest of World | Corporate & Eliminations | Total | ||||||||||||||||||||||||
Referral Revenue | € | 66,759 | € | 55,663 | € | 19,016 | € | — | € | 141,438 | |||||||||||||||||||
Subscription revenue | — | — | — | 854 | 854 | ||||||||||||||||||||||||
Other revenue | — | — | — | 2,483 | 2,483 | ||||||||||||||||||||||||
Total revenue | € | 66,759 | € | 55,663 | € | 19,016 | € | 3,337 | € | 144,775 | |||||||||||||||||||
Advertising Spend | 42,491 | 33,376 | 9,407 | — | 85,274 | ||||||||||||||||||||||||
ROAS contribution | € | 24,268 | € | 22,287 | € | 9,609 | € | 3,337 | € | 59,501 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization | 2,984 | ||||||||||||||||||||||||||||
Other selling and marketing, including related party(1) | 7,095 | ||||||||||||||||||||||||||||
Technology and content, including related party | 15,473 | ||||||||||||||||||||||||||||
General and administrative, including related party | 9,510 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 34 | ||||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | 84,177 | ||||||||||||||||||||||||||||
Operating loss | € | (59,772) | |||||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Interest expense | (20) | ||||||||||||||||||||||||||||
Interest income | 32 | ||||||||||||||||||||||||||||
Other, net | 220 | ||||||||||||||||||||||||||||
Total other income/(expense), net | € | 232 | |||||||||||||||||||||||||||
Loss before income taxes | € | (59,540) | |||||||||||||||||||||||||||
Expense for income taxes | 212 | ||||||||||||||||||||||||||||
Loss before equity method investment | € | (59,752) | |||||||||||||||||||||||||||
Loss from equity method investment | (54) | ||||||||||||||||||||||||||||
Net loss | € | (59,806) |
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||
(€ thousands) | Developed Europe | Americas | Rest of World | Corporate & Eliminations | Total | ||||||||||||||||||||||||
Referral Revenue | € | 108,600 | € | 83,421 | € | 39,855 | € | — | € | 231,876 | |||||||||||||||||||
Subscription revenue | — | — | — | 1,375 | 1,375 | ||||||||||||||||||||||||
Other revenue | — | — | — | 2,221 | 2,221 | ||||||||||||||||||||||||
Total revenue | € | 108,600 | € | 83,421 | € | 39,855 | € | 3,596 | € | 235,472 | |||||||||||||||||||
Advertising Spend | 73,004 | 53,084 | 23,633 | — | 149,721 | ||||||||||||||||||||||||
ROAS contribution | € | 35,596 | € | 30,337 | € | 16,222 | € | 3,596 | € | 85,751 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization | 6,143 | ||||||||||||||||||||||||||||
Other selling and marketing, including related party(1) | 10,509 | ||||||||||||||||||||||||||||
Technology and content, including related party | 24,866 | ||||||||||||||||||||||||||||
General and administrative, including related party | 20,839 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 67 | ||||||||||||||||||||||||||||
Operating income | € | 23,327 | |||||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Interest expense | (4) | ||||||||||||||||||||||||||||
Interest income | 2,289 | ||||||||||||||||||||||||||||
Other, net | (214) | ||||||||||||||||||||||||||||
Total other income/(expense), net | € | 2,071 | |||||||||||||||||||||||||||
Income before income taxes | € | 25,398 | |||||||||||||||||||||||||||
Expense for income taxes | 9,616 | ||||||||||||||||||||||||||||
Income before equity method investment | € | 15,782 | |||||||||||||||||||||||||||
Loss from equity method investment | (118) | ||||||||||||||||||||||||||||
Net income | € | 15,664 |
Six months ended June 30, 2022 | |||||||||||||||||||||||||||||
(€ thousands) | Developed Europe | Americas | Rest of World | Corporate & Eliminations | Total | ||||||||||||||||||||||||
Referral Revenue | € | 110,283 | € | 99,377 | € | 30,224 | € | — | € | 239,884 | |||||||||||||||||||
Subscription revenue | — | — | — | 1,921 | 1,921 | ||||||||||||||||||||||||
Other revenue | — | — | — | 4,608 | 4,608 | ||||||||||||||||||||||||
Total revenue | € | 110,283 | € | 99,377 | € | 30,224 | € | 6,529 | € | 246,413 | |||||||||||||||||||
Advertising Spend | 67,143 | 57,062 | 14,608 | — | 138,813 | ||||||||||||||||||||||||
ROAS contribution | € | 43,140 | € | 42,315 | € | 15,616 | € | 6,529 | € | 107,600 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization | 5,963 | ||||||||||||||||||||||||||||
Other selling and marketing, including related party(1) | 12,879 | ||||||||||||||||||||||||||||
Technology and content, including related party | 29,047 | ||||||||||||||||||||||||||||
General and administrative, including related party | 40,081 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 68 | ||||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | 84,177 | ||||||||||||||||||||||||||||
Operating loss | € | (64,615) | |||||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Interest expense | (35) | ||||||||||||||||||||||||||||
Interest income | 129 | ||||||||||||||||||||||||||||
Other, net | 355 | ||||||||||||||||||||||||||||
Total other income/(expense), net | € | 449 | |||||||||||||||||||||||||||
Loss before income taxes | € | (64,166) | |||||||||||||||||||||||||||
Expense for income taxes | 6,282 | ||||||||||||||||||||||||||||
Loss before equity method investment | € | (70,448) | |||||||||||||||||||||||||||
Loss from equity method investment | (54) | ||||||||||||||||||||||||||||
Net loss | € | (70,502) |