Trivago today announced financial results for the second quarter of 2020 ended June 30.
Highlights
Total revenue decreased by €207.6 million, or by 93%, during the second quarter of 2020, compared to the same period in 2019. Total revenue decreased by €276.7 million, or by 64%, during the six months ended June 30, 2020, compared to the same period in 2019.
Net income decreased by €26.1 million to a loss of €20.2 million in the second quarter of 2020, compared to the same period in 2019. In the six months ended June 30, 2020, net income decreased by €248.1 million to a loss of €234.4 million.
In the second quarter of 2020, Referral Revenue declined to €6.5 million, €4.9 million and €2.5 million in Americas, Developed Europe and RoW, respectively. In the first six months ended June 30, 2020, Referral Revenue amounted to €61.2 million, €62.2 million and €27.2 million in Americas, Developed Europe and RoW, respectively. In all three segments, Referral Revenue was negatively impacted by significant declines in Qualified Referrals and Revenue Per Qualified Referral (RPQR).
Other revenue decreased by €1.4 million, or 38% during the second quarter of 2020, and by €2.4 million, or 31%, during the six months ended June 30, 2020, due to a decrease in subscription revenue.
In the second quarter of 2020, total Qualified Referrals decreased by 82% as Qualified Referrals decreased by 81%, 82% and 83% in Americas, Developed Europe and RoW, respectively, compared to the same period in 2019.
Operational Highlights
In the second quarter of 2020, cost of revenue increased by €0.6 million to €2.7 million, or 29%, period-over-period, and in the six months ended June 30, 2020, increased by €1.5 million to €5.5 million, or 38%, period-over-period.
Selling and marketing expense was 80% of total revenue in the second quarter of 2020, compared to 81% in the same period in 2019. In the six months ended June 30, 2020, selling and marketing expense decreased by 64% period-over-period to €124.2 million.
As of June 30, 2020, Trivago offered access to more than 5.0 million hotels and other types of accommodation in over 190 countries, including over 3.8 million units of alternative accommodation, such as vacation rentals and apartments.
Trivago in Q2 and beyond
Trivago expects the trend towards local leisure travel to persist until well into 2021, city trip activity to remain muted for the remainder of 2020, and international travel to be limited for the foreseeable future.
As some of these destinations have seen a recovery in terms of searches beyond 2019 levels, Trivago believes that its efforts to integrate a significant number of alternative accommodation properties into its search platform have proven very valuable to travelers.
Trivago has also made significant progress implementing the restructuring that it announced earlier this year. Trivago has closed its Leipzig office, has signed an agreement for the sale of
Spanish development center and is in the process of closing its Amsterdam office.
Trivago sees the crisis as a catalyst for it as a business to change and adapt faster than it would have otherwise.
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