trivago N.V. | |||||||||||||||||
Date: November 1, 2023 | By: | /s/ Matthias Tillmann | |||||||||||||||
Matthias Tillmann | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ Y/Y | 2023 | 2022 | Δ Y/Y | ||||||||||||||||||||||||||||||
Total revenue | 157.9 | 183.7 | (14)% | 393.3 | 430.1 | (9)% | |||||||||||||||||||||||||||||
Referral Revenue | 156.1 | 180.5 | (14)% | 388.0 | 420.3 | (8)% | |||||||||||||||||||||||||||||
Return on Advertising Spend | 134.3% | 147.6% | (13.3) ppts | 145.9% | 161.0% | (15.1) ppts | |||||||||||||||||||||||||||||
Net loss | (182.6) | (67.1) | 172% | (167.0) | (137.6) | 21% | |||||||||||||||||||||||||||||
Adjusted EBITDA(1) | 16.0 | 33.5 | (52)% | 46.8 | 84.8 | (45)% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ € | Δ % | 2023 | 2022 | Δ € | Δ % Y/Y | ||||||||||||||||||||||||||||||||||||||||
Americas | € | 59.7 | € | 75.2 | (15.5) | (21)% | € | 143.1 | € | 174.6 | (31.5) | (18)% | |||||||||||||||||||||||||||||||||||
Developed Europe | 69.5 | 83.5 | (14.0) | (17)% | 178.1 | 193.7 | (15.6) | (8)% | |||||||||||||||||||||||||||||||||||||||
Rest of World | 27.0 | 21.8 | 5.2 | 24% | 66.8 | 52.0 | 14.8 | 28% | |||||||||||||||||||||||||||||||||||||||
Total Referral Revenue | € | 156.1 | € | 180.5 | (24.4) | (14)% | € | 388.0 | € | 420.3 | (32.3) | (8)% | |||||||||||||||||||||||||||||||||||
Other revenue | 1.7 | 3.2 | (1.5) | (47)% | 5.3 | 9.8 | (4.5) | (46)% | |||||||||||||||||||||||||||||||||||||||
Total revenue | € | 157.9 | € | 183.7 | (25.8) | (14)% | € | 393.3 | € | 430.1 | (36.8) | (9)% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ ppts | 2023 | 2022 | Δ ppts | ||||||||||||||||||||||||||||||
ROAS | |||||||||||||||||||||||||||||||||||
Americas | 127.8% | 142.5% | (14.7) ppts | 143.4% | 159.0% | (15.6) ppts | |||||||||||||||||||||||||||||
Developed Europe | 138.7% | 146.8% | (8.1) ppts | 144.7% | 156.3% | (11.6) ppts | |||||||||||||||||||||||||||||
Rest of World | 138.3% | 172.2% | (33.9) ppts | 154.9% | 190.8% | (35.9) ppts | |||||||||||||||||||||||||||||
Consolidated ROAS | 134.3% | 147.6% | (13.3) ppts | 145.9% | 161.0% | (15.1) ppts |
Costs and expenses | As a % of revenue | ||||||||||||||||||||||||||||||||||
Three months ended September 30, | Three months ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ % | 2023 | 2022 | Δ in ppts | ||||||||||||||||||||||||||||||
Cost of revenue | € | 3.1 | € | 3.2 | (3) | % | 2 | % | 2 | % | — | % | |||||||||||||||||||||||
of which share-based compensation | 0.0 | 0.0 | — | % | |||||||||||||||||||||||||||||||
Selling and marketing | 121.7 | 128.8 | (6) | % | 77 | % | 70 | % | 7 | % | |||||||||||||||||||||||||
of which share-based compensation | 0.1 | 0.2 | (50) | % | |||||||||||||||||||||||||||||||
Technology and content | 12.0 | 13.5 | (11) | % | 8 | % | 7 | % | 1 | % | |||||||||||||||||||||||||
of which share-based compensation | 0.5 | 0.7 | (29) | % | |||||||||||||||||||||||||||||||
General and administrative | 9.3 | 11.1 | (16) | % | 6 | % | 6 | % | — | % | |||||||||||||||||||||||||
of which share-based compensation | 2.4 | 4.0 | (40) | % | |||||||||||||||||||||||||||||||
Amortization of intangible assets | 0.0 | 0.0 | — | % | 0 | % | 0 | % | — | % | |||||||||||||||||||||||||
Impairment of intangible assets and goodwill | 196.1 | 100.4 | 95 | % | 124 | % | 55 | % | 69 | % | |||||||||||||||||||||||||
Total costs and expenses | € | 342.2 | € | 257.1 | 33 | % | 217% | 140 | % | 77 | % |
Costs and Expenses | As a % of Revenue | ||||||||||||||||||||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ % Y/Y | 2023 | 2022 | Δ in ppts | ||||||||||||||||||||||||||||||
Cost of revenue | € | 9.2 | € | 9.2 | —% | 2 | % | 2 | % | — | % | ||||||||||||||||||||||||
of which share-based compensation | 0.1 | 0.2 | (50)% | ||||||||||||||||||||||||||||||||
Selling and marketing | 281.9 | 280.5 | —% | 72 | % | 65 | % | 7 | % | ||||||||||||||||||||||||||
of which share-based compensation | 0.3 | 0.6 | (50)% | ||||||||||||||||||||||||||||||||
Technology and content | 36.9 | 42.5 | (13)% | 9 | % | 10 | % | (1) | % | ||||||||||||||||||||||||||
of which share-based compensation | 1.3 | 2.3 | (43)% | ||||||||||||||||||||||||||||||||
General and administrative | 30.1 | 51.2 | (41)% | 8 | % | 12 | % | (4) | % | ||||||||||||||||||||||||||
of which share-based compensation | 6.5 | 8.7 | (25)% | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 0.1 | 0.1 | —% | 0 | % | 0 | % | — | % | ||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | 196.1 | 184.6 | 6% | 50% | 43 | % | 7 | % | |||||||||||||||||||||||||||
Total costs and expenses | € | 554.3 | € | 568.1 | (2)% | 141% | 132 | % | 9 | % | |||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Δ € | 2023 | 2022 | Δ € | ||||||||||||||||||||||||||||||
Operating loss | € | (184.3) | € | (73.4) | (110.9) | € | (161.0) | € | (138.0) | (23.0) | |||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||||||||
Interest expense | (0.0) | (0.0) | — | (0.0) | (0.0) | — | |||||||||||||||||||||||||||||
Interest income | 1.8 | 0.1 | 1.7 | 4.1 | 0.2 | 3.9 | |||||||||||||||||||||||||||||
Other, net | (0.1) | 0.3 | (0.4) | (0.3) | 0.7 | (1.0) | |||||||||||||||||||||||||||||
Total other income, net | € | 1.7 | € | 0.4 | 1.3 | € | 3.8 | € | 0.9 | 2.9 | |||||||||||||||||||||||||
Loss before income taxes | (182.6) | (73.0) | (109.6) | (157.2) | (137.2) | (20.0) | |||||||||||||||||||||||||||||
Expense/(benefit) for income taxes | (0.0) | (6.1) | 6.1 | 9.6 | 0.2 | 9.4 | |||||||||||||||||||||||||||||
Loss before equity method investment | € | (182.6) | € | (66.9) | (115.7) | € | (166.8) | € | (137.3) | (29.5) | |||||||||||||||||||||||||
Loss from equity method investment | (0.1) | (0.3) | 0.2 | (0.2) | (0.3) | 0.1 | |||||||||||||||||||||||||||||
Net loss | € | (182.6) | € | (67.1) | (115.5) | € | (167.0) | € | (137.6) | (29.4) | |||||||||||||||||||||||||
Adjusted EBITDA(1) | € | 16.0 | € | 33.5 | (17.5) | € | 46.8 | € | 84.8 | (38.0) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
ROAS by segment | |||||||||||||||||||||||
Americas | 127.8% | 142.5% | 143.4% | 159.0% | |||||||||||||||||||
Developed Europe | 138.7% | 146.8% | 144.7% | 156.3% | |||||||||||||||||||
Rest of World | 138.3% | 172.2% | 154.9% | 190.8% | |||||||||||||||||||
Consolidated ROAS | 134.3% | 147.6% | 145.9% | 161.0% | |||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net loss | € | (182.6) | € | (67.1) | € | (167.0) | € | (137.6) | |||||||||||||||
Loss from equity method investment | (0.1) | (0.3) | (0.2) | (0.3) | |||||||||||||||||||
Loss before equity method investment | € | (182.6) | € | (66.9) | € | (166.8) | € | (137.3) | |||||||||||||||
Expense/(benefit) for income taxes | (0.0) | (6.1) | 9.6 | 0.2 | |||||||||||||||||||
Loss before income taxes | € | (182.6) | € | (73.0) | € | (157.2) | € | (137.2) | |||||||||||||||
Add/(less): | |||||||||||||||||||||||
Interest expense | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||
Interest income | (1.8) | (0.1) | (4.1) | (0.2) | |||||||||||||||||||
Other, net | 0.1 | (0.3) | 0.3 | (0.7) | |||||||||||||||||||
Operating loss | € | (184.3) | € | (73.4) | € | (161.0) | € | (138.0) | |||||||||||||||
Depreciation of property and equipment and amortization of intangible assets | 1.1 | 1.5 | 3.4 | 4.9 | |||||||||||||||||||
Impairment of, and gains and losses on disposals of, property and equipment | 0.0 | 0.0 | 0.0 | 0.9 | |||||||||||||||||||
Impairment of intangible assets and goodwill | 196.1 | 100.4 | 196.1 | 184.6 | |||||||||||||||||||
Share-based compensation | 3.1 | 4.9 | 8.2 | 11.7 | |||||||||||||||||||
Certain other items, including restructuring, significant legal settlements and court-ordered penalties | 0.0 | — | 0.0 | 20.7 | |||||||||||||||||||
Adjusted EBITDA | € | 16.0 | € | 33.5 | € | 46.8 | € | 84.8 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | € | 105,201 | € | 122,747 | € | 251,324 | € | 294,224 | |||||||||||||||
Revenue from related party | 52,661 | 60,955 | 142,010 | 135,891 | |||||||||||||||||||
Total revenue | 157,862 | 183,702 | 393,334 | 430,115 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization (1) | 3,080 | 3,236 | 9,223 | 9,199 | |||||||||||||||||||
Selling and marketing, including related party (1)(2)(3) | 121,684 | 128,799 | 281,914 | 280,491 | |||||||||||||||||||
Technology and content, including related party (1)(2)(3) | 12,011 | 13,453 | 36,877 | 42,500 | |||||||||||||||||||
General and administrative, including related party (1)(2)(3) | 9,251 | 11,121 | 30,090 | 51,202 | |||||||||||||||||||
Amortization of intangible assets (2) | 34 | 34 | 101 | 102 | |||||||||||||||||||
Impairment of intangible assets and goodwill | 196,127 | 100,465 | 196,127 | 184,642 | |||||||||||||||||||
Operating loss | (184,325) | (73,406) | (160,998) | (138,021) | |||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||
Interest expense | (3) | (11) | (7) | (46) | |||||||||||||||||||
Interest income | 1,837 | 86 | 4,126 | 215 | |||||||||||||||||||
Other, net | (123) | 329 | (337) | 684 | |||||||||||||||||||
Total other income, net | 1,711 | 404 | 3,782 | 853 | |||||||||||||||||||
Loss before income taxes | (182,614) | (73,002) | (157,216) | (137,168) | |||||||||||||||||||
Expense/(benefit) for income taxes | (35) | (6,124) | 9,581 | 158 | |||||||||||||||||||
Loss before equity method investment | (182,579) | (66,878) | (166,797) | (137,326) | |||||||||||||||||||
Loss from equity method investment | (55) | (259) | (173) | (313) | |||||||||||||||||||
Net loss | € | (182,634) | € | (67,137) | € | (166,970) | € | (137,639) | |||||||||||||||
Earnings per share available to common stockholders: | |||||||||||||||||||||||
Basic | € | (0.53) | € | (0.19) | € | (0.49) | € | (0.38) | |||||||||||||||
Diluted | (0.53) | (0.19) | (0.49) | (0.38) | |||||||||||||||||||
Shares used in computing earnings per share: | |||||||||||||||||||||||
Basic | 343,806 | 360,609 | 343,919 | 359,964 | |||||||||||||||||||
Diluted | 343,806 | 360,609 | 343,919 | 359,964 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(1) Includes share-based compensation as follows: | |||||||||||||||||||||||
Cost of revenue | € | 37 | € | 48 | € | 108 | € | 150 | |||||||||||||||
Selling and marketing | 135 | 161 | 327 | 592 | |||||||||||||||||||
Technology and content | 541 | 687 | 1,327 | 2,314 | |||||||||||||||||||
General and administrative | 2,380 | 4,044 | 6,469 | 8,682 | |||||||||||||||||||
(2) Includes amortization as follows: | |||||||||||||||||||||||
Amortization of internal use software costs included in selling and marketing | € | — | € | — | € | — | € | 8 | |||||||||||||||
Amortization of internal use software and website development costs included in technology and content | 789 | 1,042 | 2,280 | 3,204 | |||||||||||||||||||
Amortization of internal use software costs included in general and administrative | — | 1 | — | 104 | |||||||||||||||||||
Amortization of acquired technology included in amortization of intangible assets | 34 | 34 | 101 | 102 | |||||||||||||||||||
(3) Includes related party expense as follows: | |||||||||||||||||||||||
Selling and marketing | € | 20 | € | 7 | € | 68 | € | 93 | |||||||||||||||
Technology and content | 397 | 51 | 1,211 | 112 | |||||||||||||||||||
General and administrative | — | — | 24 | 1 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net loss | € | (182,634) | € | (67,137) | € | (166,970) | € | (137,639) | |||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Currency translation adjustments | 4 | 24 | 7 | 52 | |||||||||||||||||||
Total other comprehensive income | 4 | 24 | 7 | 52 | |||||||||||||||||||
Comprehensive income/(loss) | € | (182,630) | € | (67,113) | € | (166,963) | € | (137,587) |
ASSETS | As of September 30, 2023 | As of December 31, 2022 | |||||||||
Current assets: | |||||||||||
Cash and cash equivalents | € | 298,957 | € | 248,584 | |||||||
Restricted cash | 342 | 342 | |||||||||
Accounts receivable, net of allowance for credit losses of €1,236 and €418 at September 30, 2023 and December 31, 2022, respectively | 36,501 | 25,679 | |||||||||
Accounts receivable, related party | 31,162 | 24,432 | |||||||||
Short-term investments | — | 45,000 | |||||||||
Tax receivable | 2,551 | 498 | |||||||||
Prepaid expenses and other current assets | 10,788 | 8,669 | |||||||||
Total current assets | 380,301 | 353,204 | |||||||||
Property and equipment, net | 10,287 | 13,075 | |||||||||
Operating lease right-of-use assets | 42,862 | 45,028 | |||||||||
Investments and other assets | 9,673 | 8,409 | |||||||||
Intangible assets, net | 75,649 | 89,949 | |||||||||
Goodwill | — | 181,927 | |||||||||
TOTAL ASSETS | € | 518,772 | € | 691,592 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | € | 26,874 | € | 19,941 | |||||||
Income taxes payable | 3,926 | 12,325 | |||||||||
Deferred revenue | 1,273 | 1,689 | |||||||||
Payroll liabilities | 2,505 | 2,454 | |||||||||
Accrued expenses and other current liabilities | 10,028 | 8,675 | |||||||||
Operating lease liability | 2,282 | 4,538 | |||||||||
Dividend payable | 57,914 | — | |||||||||
Dividend payable, related party | 126,467 | — | |||||||||
Total current liabilities | 231,269 | 49,622 | |||||||||
Operating lease liability | 39,016 | 40,729 | |||||||||
Deferred income taxes | 25,421 | 30,050 | |||||||||
Other long-term liabilities | 8,882 | 9,455 | |||||||||
Stockholders’ equity: | |||||||||||
Class A common stock, €0.06 par value - 700,000,000 shares authorized, Shares issued: 108,750,543 and 124,305,225, respectively Shares outstanding: 108,750,543 and 104,305,225, respectively | 6,525 | 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, nil and 20,000,000 shares, respectively | — | (19,960) | |||||||||
Reserves | 683,131 | 863,987 | |||||||||
Contribution from Parent | 122,307 | 122,307 | |||||||||
Accumulated other comprehensive income | 61 | 54 | |||||||||
Accumulated deficit | (740,326) | (554,596) | |||||||||
Total stockholders' equity | 214,184 | 561,736 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | € | 518,772 | € | 691,592 |
Three months ended September 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 July 1, 2023 | € | 7,672 | € | 142,486 | € | (19,960) | € | 865,554 | € | (538,932) | € | 57 | € | 122,307 | € | 579,184 | |||||||||||||||||||||||||||||||
Net loss | (182,634) | (182,634) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (net of tax) | 4 | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 3,093 | 3,093 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of options and vesting of RSUs | 53 | (9) | 44 | ||||||||||||||||||||||||||||||||||||||||||||
Withholding taxes on net share settlements of equity awards | (1,126) | (1,126) | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock retirement | (1,200) | 19,960 | (18,760) | — | |||||||||||||||||||||||||||||||||||||||||||
Dividend payables | (184,381) | (184,381) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | € | 6,525 | € | 142,486 | € | — | € | 683,131 | € | (740,326) | € | 61 | € | 122,307 | € | 214,184 |
Nine months ended September 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 loss | (166,970) | (166,970) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (net of tax) | 7 | 7 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 8,231 | 8,231 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of options and vesting of RSUs | 267 | (42) | 225 | ||||||||||||||||||||||||||||||||||||||||||||
Withholding taxes on net share settlements of equity awards | (4,664) | (4,664) | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock retirement | (1,200) | 19,960 | (18,760) | — | |||||||||||||||||||||||||||||||||||||||||||
Dividend payables | (184,381) | (184,381) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | € | 6,525 | € | 142,486 | € | — | € | 683,131 | € | (740,326) | € | 61 | € | 122,307 | € | 214,184 |
Three months ended September 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 July 1, 2022 | € | 7,362 | € | 142,486 | € | (23) | € | 855,817 | € | (497,880) | € | 64 | € | 122,307 | € | 630,133 | |||||||||||||||||||||||||||||||
Net loss | (67,137) | (67,137) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (net of tax) | 24 | 24 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 4,940 | 4,940 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of options and vesting of RSUs | 66 | (24) | 42 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (276) | (276) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | € | 7,428 | € | 142,486 | € | (299) | € | 860,733 | € | (565,017) | € | 88 | € | 122,307 | € | 567,726 |
Nine months ended September 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 | (137,639) | (137,639) | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (net of tax) | 52 | 52 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 11,738 | 11,738 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B shares | 1,469 | (14,692) | 13,223 | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of options and vesting of RSUs | 157 | (67) | 90 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (299) | (299) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | € | 7,428 | € | 142,486 | € | (299) | € | 860,733 | € | (565,017) | € | 88 | € | 122,307 | € | 567,726 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Net loss | € | (182,634) | € | (67,137) | € | (166,970) | € | (137,639) | |||||||||||||||
Adjustments to reconcile net loss to net cash provided by: | |||||||||||||||||||||||
Depreciation (property and equipment and internal-use software and website development) | 1,093 | 1,464 | 3,306 | 4,783 | |||||||||||||||||||
Amortization of intangible assets | 34 | 34 | 101 | 102 | |||||||||||||||||||
Goodwill and intangible assets impairment loss | 196,127 | 100,465 | 196,127 | 184,642 | |||||||||||||||||||
Impairment of long-lived assets including internal-use software and website development | — | — | — | 893 | |||||||||||||||||||
Share-based compensation | 3,093 | 4,940 | 8,231 | 11,738 | |||||||||||||||||||
Deferred income taxes | (4,580) | (15,419) | (4,629) | (18,988) | |||||||||||||||||||
Foreign exchange (gains)/losses, net | 124 | (326) | 487 | (1,023) | |||||||||||||||||||
Expected credit losses, net | 92 | 66 | 924 | 89 | |||||||||||||||||||
(Gain)/loss on disposal of fixed assets | (3) | 8 | (17) | (2) | |||||||||||||||||||
Loss from equity method investment | 55 | 259 | 173 | 313 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable, including related party | (2,068) | (1,903) | (18,550) | (36,416) | |||||||||||||||||||
Prepaid expenses and other assets | 3,094 | 3,428 | (3,759) | (421) | |||||||||||||||||||
Accounts payable | (6,046) | (10,150) | 6,543 | 15,342 | |||||||||||||||||||
Payroll liabilities | (2,723) | (92) | (176) | 350 | |||||||||||||||||||
Accrued expenses and other liabilities | (262) | 1,192 | 1,475 | 317 | |||||||||||||||||||
Deferred revenue | (50) | 210 | (416) | (196) | |||||||||||||||||||
Taxes payable/receivable, net | (673) | 10,301 | (10,470) | 8,368 | |||||||||||||||||||
Net cash provided by operating activities | 4,673 | 27,340 | 12,380 | 32,252 | |||||||||||||||||||
Investing activities: | |||||||||||||||||||||||
Purchase of investments | — | — | — | (50,000) | |||||||||||||||||||
Proceeds from sales and maturities of investments | 25,000 | — | 45,000 | — | |||||||||||||||||||
Capital expenditures, including internal-use software and website development | (921) | (1,126) | (2,617) | (3,332) | |||||||||||||||||||
Investment in equity-method investees | — | — | — | (5,951) | |||||||||||||||||||
Proceeds from sale of fixed assets | 3 | 3 | 26 | 13 | |||||||||||||||||||
Net cash provided by/(used in) investing activities | 24,082 | (1,123) | 42,409 | (59,270) | |||||||||||||||||||
Financing activities: | |||||||||||||||||||||||
Proceeds from exercise of option awards | 44 | 42 | 225 | 90 | |||||||||||||||||||
Payment of withholding taxes on net share settlements of equity awards | (2,561) | — | (4,363) | — | |||||||||||||||||||
Repayment of other non-current liabilities | (10) | (13) | (36) | (99) | |||||||||||||||||||
Purchases of treasury stock | — | (299) | — | (299) | |||||||||||||||||||
Net cash used in financing activities | (2,527) | (270) | (4,174) | (308) | |||||||||||||||||||
Effect of exchange rate changes on cash | 67 | 988 | (242) | 2,419 | |||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 26,295 | 26,935 | 50,373 | (24,907) | |||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of the period | 273,004 | 204,877 | 248,926 | 256,719 | |||||||||||||||||||
Cash, cash equivalents and restricted cash at end of the period | € | 299,299 | € | 231,812 | € | 299,299 | € | 231,812 | |||||||||||||||
Supplemental cash flow information: | |||||||||||||||||||||||
Cash paid for interest | € | 3 | € | 11 | € | 7 | € | 46 | |||||||||||||||
Cash received for interest | 1,485 | 18 | 3,489 | 127 | |||||||||||||||||||
Cash paid for taxes, net of (refunds) | 5,943 | (1,020) | 25,164 | 4,545 | |||||||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||||||||
Withholding taxes on net share settlements of equity awards-related liability | 227 | — | 227 | — | |||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Foreign exchange gains/(losses), net | € | (124) | € | 326 | € | (487) | € | 1,023 |
As of September 30, 2023 | Total | Level 1 | Level 2 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Term deposits | € | 239,186 | € | — | € | 239,186 | ||||||||||||||
Investments and other assets: | ||||||||||||||||||||
Term deposits | 1,351 | — | 1,351 | |||||||||||||||||
Total | € | 240,537 | € | — | € | 240,537 |
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) | September 30, 2023 | December 31, 2022 | ||||||||||||
Prepaid advertising | € | 7,409 | € | 6,284 | ||||||||||
Other prepaid expenses | 2,489 | 2,035 | ||||||||||||
Other assets | 890 | 350 | ||||||||||||
Total | € | 10,788 | € | 8,669 |
September 30, 2023 | December 31, 2022 | |||||||||||||
(in thousands) | ||||||||||||||
Building and leasehold improvements | € | 4,117 | € | 6,865 | ||||||||||
Capitalized software and software development costs | 29,392 | 28,867 | ||||||||||||
Computer equipment | 15,195 | 15,916 | ||||||||||||
Furniture and fixtures | 2,999 | 3,045 | ||||||||||||
Subtotal | € | 51,703 | € | 54,693 | ||||||||||
Less: accumulated depreciation | 41,416 | 42,175 | ||||||||||||
Construction in process | — | 557 | ||||||||||||
Property and equipment, net | € | 10,287 | € | 13,075 |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Goodwill | € | — | € | 181,927 | |||||||
Intangible assets with definite lives, net | 304 | 404 | |||||||||
Intangible assets with indefinite lives | 75,345 | 89,545 | |||||||||
Total | € | 75,649 | € | 271,876 |
(in thousands) | Developed Europe | Americas | Rest of World | Total | |||||||||||||||||||
Balance as of January 1, 2022 | € | 200,067 | € | 86,472 | € | — | € | 286,539 | |||||||||||||||
Foreign exchange translation | 26 | 4 | — | 30 | |||||||||||||||||||
Impairment charge | (104,642) | — | — | (104,642) | |||||||||||||||||||
Balance as of December 31, 2022 | € | 95,451 | € | 86,476 | € | — | € | 181,927 | |||||||||||||||
Impairment charge | (95,451) | (86,476) | — | (181,927) | |||||||||||||||||||
Balance as of September 30, 2023 | € | — | € | — | € | — | € | — |
(in thousands) | Intangible assets with indefinite lives | ||||
Balance as of January 1, 2022 | € | 169,545 | |||
Impairment charge | (80,000) | ||||
Balance as of December 31, 2022 | € | 89,545 | |||
Impairment charge | (14,200) | ||||
Balance as of September 30, 2023 | € | 75,345 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cost of revenue | € | 37 | € | 48 | € | 108 | € | 150 | |||||||||||||||
Selling and marketing | 135 | 161 | 327 | 592 | |||||||||||||||||||
Technology and content | 541 | 687 | 1,327 | 2,314 | |||||||||||||||||||
General and administrative | 2,380 | 4,044 | 6,469 | 8,682 | |||||||||||||||||||
Total share-based compensation expense | € | 3,093 | € | 4,940 | € | 8,231 | € | 11,738 |
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 | 1.05 | |||||||||||||||||||||
Exercised(1) | 7,955,542 | 0.06 | |||||||||||||||||||||
Cancelled | 1,306,532 | 2.86 | |||||||||||||||||||||
Balance as of September 30, 2023 | 38,975,540 | 2.08 | 9 | 14,994 | |||||||||||||||||||
Exercisable as of September 30, 2023 | 11,596,858 | 4.99 | 15 | 4,362 | |||||||||||||||||||
Fully Vested and Expected to Vest | Options | Weighted average exercise price | Remaining contractual life | Aggregate intrinsic value | |||||||||||||||||||
(in €) | (In years) | (€ in thousands) | |||||||||||||||||||||
Outstanding | 30,007,063 | 2.41 | 10 | 12,340 | |||||||||||||||||||
Currently Exercisable | 11,596,858 | 4.99 | 15 | 4,362 |
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 | 1,446,392 | 1.57 | ||||||||||||||||||
Vested(1) | 1,055,410 | 1.82 | ||||||||||||||||||
Cancelled | 363,710 | 2.16 | ||||||||||||||||||
Balance as of September 30, 2023 | 2,999,296 | 1.72 | 6 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(€ thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net loss | € | (182,634) | € | (67,137) | € | (166,970) | € | (137,639) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares of Class A and Class B common stock outstanding: | |||||||||||||||||||||||
Basic | 343,806 | 360,609 | 343,919 | 359,964 | |||||||||||||||||||
Diluted | 343,806 | 360,609 | 343,919 | 359,964 | |||||||||||||||||||
Net loss per share: | |||||||||||||||||||||||
Basic | € | (0.53) | € | (0.19) | € | (0.49) | € | (0.38) | |||||||||||||||
Diluted | (0.53) | (0.19) | (0.49) | (0.38) |
Three months ended September 30, 2023 | |||||||||||||||||||||||||||||
(€ thousands) | Developed Europe | Americas | Rest of World | Corporate & Eliminations | Total | ||||||||||||||||||||||||
Referral Revenue | € | 69,479 | € | 59,682 | € | 26,968 | € | — | € | 156,129 | |||||||||||||||||||
Subscription revenue | — | — | — | 619 | 619 | ||||||||||||||||||||||||
Other revenue | — | — | — | 1,114 | 1,114 | ||||||||||||||||||||||||
Total revenue | € | 69,479 | € | 59,682 | € | 26,968 | € | 1,733 | € | 157,862 | |||||||||||||||||||
Advertising Spend | 50,077 | 46,682 | 19,504 | — | 116,263 | ||||||||||||||||||||||||
ROAS contribution | € | 19,402 | € | 13,000 | € | 7,464 | € | 1,733 | € | 41,599 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization | 3,080 | ||||||||||||||||||||||||||||
Other selling and marketing, including related party(1) | 5,421 | ||||||||||||||||||||||||||||
Technology and content, including related party | 12,011 | ||||||||||||||||||||||||||||
General and administrative, including related party | 9,251 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 34 | ||||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | 196,127 | ||||||||||||||||||||||||||||
Operating loss | € | (184,325) | |||||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Interest expense | (3) | ||||||||||||||||||||||||||||
Interest income | 1,837 | ||||||||||||||||||||||||||||
Other, net | (123) | ||||||||||||||||||||||||||||
Total other income/(expense), net | € | 1,711 | |||||||||||||||||||||||||||
Loss before income taxes | € | (182,614) | |||||||||||||||||||||||||||
Benefit for income taxes | (35) | ||||||||||||||||||||||||||||
Loss before equity method investment | € | (182,579) | |||||||||||||||||||||||||||
Loss from equity method investment | (55) | ||||||||||||||||||||||||||||
Net loss | € | (182,634) | |||||||||||||||||||||||||||
Three months ended September 30, 2022 | |||||||||||||||||||||||||||||
(€ thousands) | Developed Europe | Americas | Rest of World | Corporate & Eliminations | Total | ||||||||||||||||||||||||
Referral Revenue | € | 83,463 | € | 75,188 | € | 21,808 | € | — | € | 180,459 | |||||||||||||||||||
Subscription revenue | — | — | — | 764 | 764 | ||||||||||||||||||||||||
Other revenue | — | — | — | 2,479 | 2,479 | ||||||||||||||||||||||||
Total revenue | € | 83,463 | € | 75,188 | € | 21,808 | € | 3,243 | € | 183,702 | |||||||||||||||||||
Advertising Spend | 56,837 | 52,760 | 12,664 | — | 122,261 | ||||||||||||||||||||||||
ROAS contribution | € | 26,626 | € | 22,428 | € | 9,144 | € | 3,243 | € | 61,441 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization | 3,236 | ||||||||||||||||||||||||||||
Other selling and marketing, including related party(1) | 6,538 | ||||||||||||||||||||||||||||
Technology and content, including related party | 13,453 | ||||||||||||||||||||||||||||
General and administrative, including related party | 11,121 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 34 | ||||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | 100,465 | ||||||||||||||||||||||||||||
Operating loss | € | (73,406) | |||||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Interest expense | (11) | ||||||||||||||||||||||||||||
Interest income | 86 | ||||||||||||||||||||||||||||
Other, net | 329 | ||||||||||||||||||||||||||||
Total other income/(expense), net | € | 404 | |||||||||||||||||||||||||||
Loss before income taxes | € | (73,002) | |||||||||||||||||||||||||||
Benefit for income taxes | (6,124) | ||||||||||||||||||||||||||||
Loss before equity method investment | € | (66,878) | |||||||||||||||||||||||||||
Loss from equity method investment | (259) | ||||||||||||||||||||||||||||
Net loss | € | (67,137) |
Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||
(€ thousands) | Developed Europe | Americas | Rest of World | Corporate & Eliminations | Total | ||||||||||||||||||||||||
Referral Revenue | € | 178,080 | € | 143,103 | € | 66,823 | € | — | € | 388,006 | |||||||||||||||||||
Subscription revenue | — | — | — | 1,994 | 1,994 | ||||||||||||||||||||||||
Other revenue | — | — | — | 3,334 | 3,334 | ||||||||||||||||||||||||
Total revenue | € | 178,080 | € | 143,103 | € | 66,823 | € | 5,328 | € | 393,334 | |||||||||||||||||||
Advertising Spend | 123,081 | 99,766 | 43,137 | — | 265,984 | ||||||||||||||||||||||||
ROAS contribution | € | 54,999 | € | 43,337 | € | 23,686 | € | 5,328 | € | 127,350 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization | 9,223 | ||||||||||||||||||||||||||||
Other selling and marketing, including related party(1) | 15,930 | ||||||||||||||||||||||||||||
Technology and content, including related party | 36,877 | ||||||||||||||||||||||||||||
General and administrative, including related party | 30,090 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 101 | ||||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | 196,127 | ||||||||||||||||||||||||||||
Operating loss | € | (160,998) | |||||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Interest expense | (7) | ||||||||||||||||||||||||||||
Interest income | 4,126 | ||||||||||||||||||||||||||||
Other, net | (337) | ||||||||||||||||||||||||||||
Total other income/(expense), net | € | 3,782 | |||||||||||||||||||||||||||
Loss before income taxes | € | (157,216) | |||||||||||||||||||||||||||
Expense for income taxes | 9,581 | ||||||||||||||||||||||||||||
Loss before equity method investment | € | (166,797) | |||||||||||||||||||||||||||
Loss from equity method investment | (173) | ||||||||||||||||||||||||||||
Net loss | € | (166,970) |
Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||
(€ thousands) | Developed Europe | Americas | Rest of World | Corporate & Eliminations | Total | ||||||||||||||||||||||||
Referral Revenue | € | 193,745 | € | 174,565 | € | 52,033 | € | — | € | 420,343 | |||||||||||||||||||
Subscription revenue | — | — | — | 2,685 | 2,685 | ||||||||||||||||||||||||
Other revenue | — | — | — | 7,087 | 7,087 | ||||||||||||||||||||||||
Total revenue | € | 193,745 | € | 174,565 | € | 52,033 | € | 9,772 | € | 430,115 | |||||||||||||||||||
Advertising Spend | 123,980 | 109,822 | 27,272 | — | 261,074 | ||||||||||||||||||||||||
ROAS contribution | € | 69,765 | € | 64,743 | € | 24,761 | € | 9,772 | € | 169,041 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||
Cost of revenue, including related party, excluding amortization | 9,199 | ||||||||||||||||||||||||||||
Other selling and marketing, including related party(1) | 19,417 | ||||||||||||||||||||||||||||
Technology and content, including related party | 42,500 | ||||||||||||||||||||||||||||
General and administrative, including related party | 51,202 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 102 | ||||||||||||||||||||||||||||
Impairment of intangible assets and goodwill | 184,642 | ||||||||||||||||||||||||||||
Operating loss | € | (138,021) | |||||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Interest expense | (46) | ||||||||||||||||||||||||||||
Interest income | 215 | ||||||||||||||||||||||||||||
Other, net | 684 | ||||||||||||||||||||||||||||
Total other income/(expense), net | € | 853 | |||||||||||||||||||||||||||
Loss before income taxes | € | (137,168) | |||||||||||||||||||||||||||
Expense for income taxes | 158 | ||||||||||||||||||||||||||||
Loss before equity method investment | € | (137,326) | |||||||||||||||||||||||||||
Loss from equity method investment | (313) | ||||||||||||||||||||||||||||
Net loss | € | (137,639) |