Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-37959 |
Entity Registrant Name | trivago N.V. |
Entity Incorporation, State or Country Code | P7 |
Entity Address, Address Line One | Kesselstraße 5 - 7 |
Entity Address, Postal Zip Code | 40221 |
Entity Address, City or Town | Düsseldorf |
Entity Address, Country | DE |
Title of 12(b) Security | American Depositary Shares, each representing oneClass A share, nominal value €0.06 per share |
Trading Symbol | TRVG |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001683825 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Common Class A | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 96,704,815 |
Common Class B | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 261,962,688 |
Business contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Kesselstraße 5 - 7 |
Entity Address, Postal Zip Code | 40221 |
Entity Address, City or Town | Düsseldorf |
Entity Address, Country | DE |
Contact Personnel Name | Axel Hefer |
Country Region | +49 |
City Area Code | 211 |
Local Phone Number | 3876840000 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 1251 |
Auditor Name | Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft |
Auditor Location | Düsseldorf, Germany |
Consolidated statements of oper
Consolidated statements of operations - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Statement [Abstract] | ||||
Revenue | € 270,110 | € 181,491 | € 554,046 | |
Revenue from related party | 91,355 | 67,430 | 284,571 | |
Total revenue | 361,465 | 248,921 | 838,617 | |
Costs and expenses: | ||||
Cost of revenue, including related party, excluding amortization | [1],[2] | 11,500 | 10,133 | 9,159 |
Selling and marketing, including related party | [1],[2],[3] | 249,196 | 178,255 | 664,155 |
Technology and content, including related party | [1],[2],[3] | 52,374 | 64,258 | 69,924 |
General and administrative, including related party | [1],[2],[3] | 38,208 | 40,935 | 55,543 |
Amortization of intangible assets | [3] | 136 | 373 | 1,685 |
Impairment of goodwill | 0 | 207,618 | 0 | |
Operating income/(loss) | 10,051 | (252,651) | 38,151 | |
Other income/(expense) | ||||
Interest expense | (389) | (270) | (33) | |
Other, net | 13,628 | (212) | (428) | |
Total other income/(expense), net | 13,239 | (482) | (461) | |
Income/(loss) before income taxes | 23,290 | (253,133) | 37,690 | |
Expense/(benefit) for income taxes | 12,586 | (8,494) | 20,982 | |
Income/(loss) before equity method investment | 10,704 | (244,639) | 16,708 | |
Income/(loss) from equity method investment | 0 | (739) | 453 | |
Net income/(loss) | € 10,704 | € (245,378) | € 17,161 | |
Earnings per share attributable to common stockholders: | ||||
Basic (in Euro per share) | € 0.03 | € (0.69) | € 0.05 | |
Diluted (in Euro per share) | € 0.03 | € (0.69) | € 0.05 | |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 357,525,000 | 353,338,000 | 351,991,000 | |
Diluted (in shares) | 367,240,000 | 353,338,000 | 356,738,000 | |
[1] | Year ended December 31, 2019 2020 2021 (1) Includes share-based compensation as follows: Cost of revenue € 269 € 243 € 257 Selling and marketing 2,359 1,169 1,104 Technology and content 5,978 3,808 3,897 General and administrative 11,285 9,859 12,003 | |||
[2] | (3) Includes related party expense as follows: Cost of revenue € 44 € (32) € 0 Selling and marketing 263 133 111 Technology and content 465 97 48 General and administrative 43 31 0 | |||
[3] | (2) Includes amortization as follows: Amortization of internal use software costs included in € 360 € 188 € 98 Amortization of internal use software and website development costs included in technology and content 3,239 3,926 4,566 Amortization of internal use software costs included in general and administrative 656 491 313 Amortization of acquired technology included in amortization of intangible assets 143 84 136 |
Consolidated statements of op_2
Consolidated statements of operations (Parenthetical) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based compensation | € 17,300 | € 15,100 | € 19,900 | |
Amortization of intangible assets | [1] | 136 | 373 | 1,685 |
Internal use software costs | ||||
Amortization of intangible assets | 5,000 | 4,600 | 4,300 | |
Acquired technology | ||||
Amortization of intangible assets | 136 | 84 | 143 | |
Cost of Sales [Member] | ||||
Share-based compensation | 257 | 243 | 269 | |
Related party expense | 0 | (32) | 44 | |
Selling and Marketing Expense [Member] | ||||
Share-based compensation | 1,104 | 1,169 | 2,359 | |
Related party expense | 111 | 133 | 263 | |
Selling and Marketing Expense [Member] | Internal use software costs | ||||
Amortization of intangible assets | 98 | 188 | 360 | |
Research and Development Expense [Member] | ||||
Share-based compensation | 3,897 | 3,808 | 5,978 | |
Related party expense | 48 | 97 | 465 | |
Research and Development Expense [Member] | Internal use software costs | ||||
Amortization of intangible assets | 4,566 | 3,926 | 3,239 | |
General and Administrative Expense [Member] | ||||
Share-based compensation | 12,003 | 9,859 | 11,285 | |
Related party expense | 0 | 31 | 43 | |
General and Administrative Expense [Member] | Internal use software costs | ||||
Amortization of intangible assets | € 313 | € 491 | € 656 | |
[1] | (2) Includes amortization as follows: Amortization of internal use software costs included in € 360 € 188 € 98 Amortization of internal use software and website development costs included in technology and content 3,239 3,926 4,566 Amortization of internal use software costs included in general and administrative 656 491 313 Amortization of acquired technology included in amortization of intangible assets 143 84 136 |
Consolidated statements of comp
Consolidated statements of comprehensive income/(loss) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | € 10,704 | € (245,378) | € 17,161 |
Other comprehensive income/(loss): | |||
Currency translation adjustments | 32 | (58) | 151 |
Total other comprehensive income/(loss) | 32 | (58) | 151 |
Comprehensive income/(loss) | € 10,736 | € (245,436) | € 17,312 |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | € 256,378 | € 208,353 |
Restricted cash | 0 | 103 |
Accounts receivable, net of allowance for credit losses of €348 and €658 at December 31, 2020 and December 31, 2021, respectively | 23,707 | 11,642 |
Accounts receivable, related party | 16,506 | 2,969 |
Short-term investments | 0 | 19,448 |
Tax receivable | 3,527 | 7,839 |
Prepaid expenses and other current assets | 10,273 | 10,438 |
Total Current Assets | 310,391 | 260,792 |
Property and equipment, net | 15,905 | 26,682 |
Operating lease right-of-use assets | 48,323 | 86,810 |
Deferred income taxes | 26 | 1 |
Other long-term assets | 3,250 | 4,399 |
Intangible assets, net | 170,085 | 169,550 |
Goodwill | 286,539 | 282,664 |
TOTAL ASSETS | 834,519 | 830,898 |
Current liabilities: | ||
Accounts payable | 14,053 | 6,755 |
Income taxes payable | 4,358 | 102 |
Deferred revenue | 2,174 | 2,750 |
Payroll liabilities | 3,289 | 2,983 |
Accrued expenses and other current liabilities | 16,323 | 14,934 |
Operating lease liability | 2,269 | 7,188 |
Total Current Liabilities | 42,466 | 34,712 |
Operating lease liability | 45,267 | 85,979 |
Deferred income taxes | 49,810 | 42,176 |
Other long-term liabilities | 3,192 | 3,514 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Reserves | 835,839 | 798,017 |
Contribution from Parent | 122,307 | 122,307 |
Accumulated other comprehensive income | 36 | 4 |
Accumulated deficit | (427,378) | (438,082) |
Total stockholders' equity | 693,784 | 664,517 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 834,519 | 830,898 |
Common Class A | ||
Stockholders' equity: | ||
Common stock | 5,802 | 3,358 |
Common Class B | ||
Stockholders' equity: | ||
Common stock | € 157,178 | € 178,913 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - EUR (€) € in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for credit losses | € 658 | € 348 |
Common Class A | ||
Class common stock, par value (Euro per share) | € 0.06 | € 0.06 |
Class common stock, shared authorized (in shares) | 700,000,000 | 700,000,000 |
Class common stock, shares issued (in shares) | 96,704,815 | 55,967,976 |
Common stock, shares outstanding (in shares) | 96,704,815 | 55,967,976 |
Common Class B | ||
Class common stock, par value (Euro per share) | € 0.60 | € 0.60 |
Class common stock, shared authorized (in shares) | 320,000,000 | 320,000,000 |
Class common stock, shares issued (in shares) | 261,962,688 | 298,187,967 |
Common stock, shares outstanding (in shares) | 261,962,688 | 298,187,967 |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Thousands | Total | Impact of adoption of new accounting guidance | Common stockCommon Class A | Common stockCommon Class B | Reserves | Retained earnings (accumulated deficit) | Retained earnings (accumulated deficit)Impact of adoption of new accounting guidance | Accumulated other comprehensive income/(loss) | Contribution from Parent |
Beginning balance at Dec. 31, 2018 | € 853,583 | € 3,799 | € 2,554 | € 185,213 | € 757,262 | € (213,664) | € 3,799 | € (89) | € 122,307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 17,161 | 17,161 | |||||||
Other comprehensive income (net of tax) | 151 | 151 | |||||||
Share-based compensation expense | 19,891 | 19,891 | |||||||
Conversion of Class B shares | 0 | 420 | (4,200) | 3,780 | |||||
Issued capital, options exercised | 202 | 75 | 127 | ||||||
Ending balance at Dec. 31, 2019 | 894,787 | 3,049 | 181,013 | 781,060 | (192,704) | 62 | 122,307 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | (245,378) | (245,378) | |||||||
Other comprehensive income (net of tax) | (58) | (58) | |||||||
Share-based compensation expense | 15,079 | 15,079 | |||||||
Conversion of Class B shares | 0 | 210 | (2,100) | 1,890 | |||||
Issued capital, options exercised | 87 | 99 | (12) | ||||||
Ending balance at Dec. 31, 2020 | 664,517 | 3,358 | 178,913 | 798,017 | (438,082) | 4 | 122,307 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 10,704 | 10,704 | |||||||
Other comprehensive income (net of tax) | 32 | 32 | |||||||
Share-based compensation expense | 17,261 | 17,261 | |||||||
Conversion of Class B shares | 0 | 2,174 | (21,735) | 19,561 | |||||
Issued capital, options exercised | 1,270 | 270 | 1,000 | ||||||
Ending balance at Dec. 31, 2021 | € 693,784 | € 5,802 | € 157,178 | € 835,839 | € (427,378) | € 36 | € 122,307 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating activities: | ||||
Net income/(loss) | € 10,704 | € (245,378) | € 17,161 | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in): | ||||
Depreciation (property and equipment, internal-use software and website development) | 8,213 | 10,479 | 10,298 | |
Amortization of intangible assets | [1] | 136 | 373 | 1,685 |
Goodwill impairment loss | 0 | 207,618 | 0 | |
Impairment of long-lived assets including internal-use software and website development | 0 | 549 | 96 | |
Share-based compensation (see Note 10) | 17,261 | 15,079 | 19,891 | |
Deferred income taxes | 8,856 | (8,248) | 1,904 | |
Foreign exchange (gains)/losses | (1,554) | 795 | 429 | |
Expected credit losses, net | 255 | 656 | 754 | |
Loss on disposal of fixed assets | 317 | 185 | 2 | |
Gain from settlement of asset retirement obligation | (5) | (137) | (209) | |
Gain from lease termination and modification, net | (1,307) | (179) | 0 | |
(Income)/loss from equity method investment | 0 | 739 | (453) | |
Gain on divestitures | 0 | (393) | 0 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable, including related party | (25,754) | 53,732 | 24,926 | |
Prepaid expenses and other assets | (2,510) | (773) | 3,696 | |
Accounts payable | 6,897 | (26,620) | (665) | |
Payroll liabilities | 297 | (891) | (4,476) | |
Accrued expenses and other liabilities | 2,738 | 2,594 | 7,591 | |
Deferred revenue | (576) | (2,550) | (2,310) | |
Taxes payable/receivable, net | 8,568 | 242 | (6,099) | |
Net cash provided by/(used in) operating activities | 32,536 | 7,872 | 74,221 | |
Investing activities: | ||||
Purchase of investments | (1,351) | (8,850) | (10,000) | |
Proceeds from sales of investments | 19,338 | 0 | 0 | |
Proceeds from divestitures, net of cash divested | 0 | 556 | 0 | |
Prepayment of pending business acquisition | 0 | (3,038) | 0 | |
Business acquisition, net of cash acquired | (4,302) | 0 | 0 | |
Capital expenditures, including internal-use software and website development | (3,781) | (5,501) | (8,017) | |
Proceeds from sale of fixed assets | 114 | 644 | 36 | |
Net cash used in investing activities | 10,018 | (16,189) | (17,981) | |
Financing activities: | ||||
Proceeds from exercise of option awards | 1,270 | 87 | 202 | |
Repayment of other non-current liabilities | (217) | (267) | (301) | |
Net cash provided by/(used in) financing activities | 1,053 | (180) | (99) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,341 | (1,275) | 94 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 45,948 | (9,772) | 56,235 | |
Cash, cash equivalents and restricted cash at beginning of year | 210,771 | 220,543 | 164,308 | |
Cash, cash equivalents and restricted cash at end of year | 256,719 | 210,771 | 220,543 | |
Supplemental cash flow information: | ||||
Cash paid for interest | 383 | 217 | 51 | |
Cash paid for taxes, net of (refunds) | (4,848) | (484) | 25,171 | |
Non-cash investing and financing activities: | ||||
Fixed assets-related payable | € 3 | € 5 | € 202 | |
[1] | (2) Includes amortization as follows: Amortization of internal use software costs included in € 360 € 188 € 98 Amortization of internal use software and website development costs included in technology and content 3,239 3,926 4,566 Amortization of internal use software costs included in general and administrative 656 491 313 Amortization of acquired technology included in amortization of intangible assets 143 84 136 |
Organization and basis of prese
Organization and basis of presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and basis of presentation | Organization and basis of presentation Description of business trivago N.V., (“trivago” the “Company,” “us,” “we” and “our”) and its subsidiaries offer online meta-search for hotel and accommodation through online travel agencies (“OTAs”), hotel chains and independent hotels. Our search-driven marketplace, delivered on websites and apps, provides users with a tailored search experience via our proprietary matching algorithms. We generally employ a ‘cost-per-click’ (or “CPC”) pricing structure, allowing advertisers to control their own return on investment and the volume of lead traffic we generate for them. Beginning in 2020, we began to offer a ‘cost-per-acquisition’ (or “CPA”) pricing structure, whereby an advertiser pays us a percentage of the booking revenues that ultimately result from a referral. During 2013, the Expedia Group, Inc. (formerly Expedia, Inc., the "Parent" or "Expedia Group") completed the purchase of a controlling interest in the Company. As of December 31, 2021, Expedia Group’s ownership interest and voting interest in trivago N.V. is 58.3% and 76.9%, respectively. The Class B shares of trivago N.V. held by Messrs. Schrömgens, Vinnemeier and Siewert (whom we collectively refer to as our Founders) as of December 31, 2021, had an ownership interest and voting interest of 14.8% and 19.5%, respectively. The Founders may also own Class A shares in addition to the Class B shares held. The holders of Class A shares are entitled to one vote per share compared to Class B shares which are entitled to ten votes per share. The additional ownership of Class A shares by the Founders would not significantly change ownership or voting interest. Basis of presentation Unless otherwise specified, “the Company” refers to trivago N.V. and its respective subsidiaries throughout the remainder of these notes. These consolidated financial statements reflect Expedia Group’s basis of accounting due to the change in control in 2013 when Expedia Group acquired a controlling ownership in trivago, as we elected the option to apply pushdown accounting in the period in which the change in control event occurred. Seasonality We experience seasonal fluctuations in the demand for our services as a result of seasonal patterns in travel. For example, searches and consequently our revenue are generally the highest in the first three quarters as travelers plan and book their spring, summer and winter holiday travel. Our revenue typically decreases in the fourth quarter. We generally expect to experience higher return on advertising spend in the first and fourth quarter of the year as we typically expect to advertise less in the periods outside of high travel seasons. Seasonal fluctuations affecting our revenue also affect the timing of our cash flows. We typically invoice once per month, with customary payment terms. Therefore, our cash flow varies seasonally with a slight delay to our revenue, and is significantly affected by the timing of our advertising spending. Changes in the relative revenue share of our offerings in countries and areas where seasonal travel patterns vary from those described above may influence the typical trend of our seasonal patterns in the future. It is difficult to forecast the seasonality for future periods, given the uncertainty related to the duration of the impact from COVID-19 and the shape and timing of any sustained recovery. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies Consolidation Our consolidated financial statements include the accounts of trivago and entities we control. Intercompany balances and transactions have been eliminated in consolidation. We deconsolidate entities from our results of operations on the day when we lose control. Further, the equity method of accounting is used for investments in associated companies in which we have a financial interest but do not have control over. As of December 31, 2020 and December 31, 2021, there are no noncontrolling interest balances, as all subsidiaries of the Company are wholly-owned. Accounting estimates We use estimates and assumptions in the preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Preparation of the consolidated financial statements and accompanying notes requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as revenue and expenses during the periods reported. Our actual financial results could differ significantly from these estimates. The significant estimates underlying our consolidated financial statements include: leases, recoverability of goodwill, intangible assets and other long-lived assets, income taxes, legal and tax contingencies, business combinations and share-based compensation. The COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the travel industry, which may have a significant adverse effect on our business and results of operations. The uncertainty associated with COVID-19 increased the level of judgement applied in our estimates and assumptions. Our estimates may change in future periods as a result of new events arising from the COVID-19 pandemic. Revenue recognition We recognize revenues when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We derive our revenues from the following streams: Referral Revenue We earn referral revenue using cost-per-click ("CPC") and cost-per-acquisition ("CPA") models. Both relate to fees earned on the display of a customer's (advertiser's) link on the trivago website. CPC revenue is recognized after the traveler makes the click-through to the related advertiser’s website. Control is deemed to have transferred at a point in time, being when the link or advertisement has been displayed and the click-through to the customer's website has occurred. CPA revenue is recognized when the click-through to the related advertiser's website results in a booking, as control is deemed to have transferred at that point in time. We consider the performance obligation to be satisfied when the booking has occurred. The price that an advertiser pays for a click that results in a booking is based on a percentage of the booking revenue. The prices per click for CPC and CPA advertising campaigns are negotiated in advance, thus, the amount to be recognized as revenue for the respective click is fixed and determinable when the performance obligation has been satisfied. Most of our revenue is invoiced on a monthly basis after the performance obligation has been satisfied with payment terms between 10 to 90 days. For some advertisers we require prepayments. Subscription Revenue Revenue from subscription services is recognized ratably over the contract term, which is generally 12 months or less from the subscription commencement date. Customers may choose to be billed annually or monthly via SEPA or credit card. The price per subscription is fixed and determinable when the contract commences. Deferred revenue Deferred revenue relates to advanced payments received for services provided in future periods, primarily related to subscription services. At December 31, 2019, €5.6 million was recorded as deferred revenue, €5.2 million of which was recognized as revenue during the year ended December 31, 2020. At December 31, 2020, the deferred revenue balance was €2.8 million, €2.8 million of which was recognized as revenue during the year ended December 31, 2021. At December 31, 2021, the deferred revenue balance was €2.2 million. Cost of revenue Cost of revenue consists of expenses that are directly or closely correlated to revenue generation, including data center costs, third-party cloud-related service providers, salaries and share-based compensation for our data center operations staff and our customer service team who are directly involved in revenue generation. For the years ended December 31, 2019, 2020 and 2021 cost of revenue excludes €0.1 million, €0.1 million and €0.1 million, respectively, of amortization expense of acquired technology. For the years ended December 31, 2019, 2020 and 2021 cost of revenue excludes €4.3 million, €4.6 million and €5.0 million, respectively, of amortization expense related to internal use software and website development. Cash and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, consisting of money market funds, which are readily accessible mutual funds that invest in high-quality, short-term debt, and time deposit investments, with original maturities of three months or less when purchased. Restricted cash Restricted cash primarily consists of funds held as guarantees in connection with corporate leases and funds held in escrow accounts in the event of default on corporate credit card statements. The carrying value of restricted cash approximates its fair value. As of December 31, 2020 and December 31, 2021, restricted cash was €2.4 million and €0.3 million, respectively. The total balance as of December 31, 2021 is classified as other long-term assets based on the expected dates the restricted cash will be made available to the Company. Accounts receivable Accounts receivable are generally due within 10 to 90 days and are recorded net of an allowance for expected credit losses. We consider accounts outstanding longer than the contractual payment terms as past due. The risk characteristics we generally review when analyzing our accounts receivable pools primarily include the type of receivable, collection terms and historical or expected credit loss patterns. For each pool, we make estimates for the allowance based on the current expected credit loss ("CECL") methodology by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history continually updated for new collections data, the credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions and other factors that may affect our ability to collect from customers. The provision for estimated credit losses is recorded as general and administrative expense in our consolidated statement of operations. As disclosed in Note 17: Valuation and qualifying accounts , for the year ended December 31, 2021, we recorded approximately €0.3 million of incremental allowance for expected uncollectible amounts, including estimated future losses in consideration of the impact of COVID-19 pandemic on the economy and the Company, partially offset by €20 thousand of write-offs. Actual future bad debt could differ materially from this estimate resulting from changes in our assumptions of the duration and severity of the impact of the COVID-19 pandemic. Investments Our short-term investments consist of time deposit and term deposit accounts with original maturities of more than three but fewer than 12 months. Our long-term investments, classified as other long-term assets, consist of term deposits with maturity of more than one year. Property and equipment, net including software and website capitalization We record property and equipment at cost, net of accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets, which is generally three Certain direct development costs associated with website and internal-use software are capitalized during the application development stage. Capitalized costs include external direct costs of services and payroll costs (including share-based compensation). The payroll costs are for employees devoting time to the software development projects principally related to website and mobile app development, including support systems, software coding, designing system interfaces and installation and testing of the software. These costs are recorded as property and equipment and are generally amortized over a period of three years beginning when the asset is ready for use. Costs incurred that are expected to result in additional features or functionality are capitalized and amortized over the estimated useful life of the enhancements, which is generally a period of three years. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as incurred. Certain acquired software licenses and implementation costs are capitalized during the implementation stage. Capitalized costs include the license fee, external direct costs of services provided in regards to the implementation and customization of the software, and internal payroll costs for employees involved with the implementation process. These costs are recorded as property and equipment and are amortized over the license term when the asset is ready for use. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as incurred. Leases We determine if an arrangement is a lease at inception. Our operating leases primarily comprises of office space which includes our campus building lease. The operating leases balances are included in operating lease right-of-use ("ROU") assets and operating lease liabilities on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate as the discount rate in measuring the present value of lease payments given the rate implicit in our leases is not typically readily determinable. Estimating the incremental borrowing rate requires assessing a number of inputs including an estimated synthetic credit rating, collateral adjustments and interest rates. The operating lease ROU asset is comprised of the initial operating lease liability, adjusted for any prepaid or deferred rent payments, unamortized initial direct costs, and lease incentives received. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Payments under our operating leases are primarily fixed, however, certain of our operating lease agreements include rental payments which are adjusted periodically for inflation. We recognize these costs as variable lease costs on our consolidated statement of operations. For operating leases with a term of one year or less, we have elected to not recognize a lease liability or ROU asset on our consolidated balance sheet. Instead, we recognize the lease payments as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to our consolidated statements of operations and cash flows. We have lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as a single lease component. Additionally, in the prior periods we had entered into subleases for unoccupied leased office space. We recognized sublease payments on a straight-line basis over the term of the sublease. As of December 31, 2021 we have no active sub-leases for our office space. Business combinations We assign the value of the consideration transferred to acquire a business to the tangible assets and identifiable intangible assets acquired and liabilities assumed on the basis of their fair values at the date of acquisition. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Adjustments may be made to the preliminary purchase price allocation when facts and circumstances that existed on the date of the acquisition become known during the measurement period subsequent to the preliminary purchase price allocation, not to exceed one year from the date of acquisition. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Recoverability of goodwill and indefinite-lived intangible assets Goodwill: Goodwill is assigned to our three reporting units, which correspond to our three operating segments, on the basis of their relative fair values. We assess goodwill for impairment annually as of September 30, or more frequently, if events and circumstances indicate that an impairment may have occurred. In the evaluation of goodwill for impairment, we typically first perform a qualitative assessment to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount, followed by performing a quantitative assessment by comparing the fair value of the reporting unit to the carrying value, if necessary. Periodically, we may elect to bypass the initial qualitative assessment and proceed directly to the quantitative goodwill impairment test. An impairment charge is recorded based on the excess of the reporting unit's carrying amount over its fair value. We generally base the measurement of fair value of our three reporting units on a blended analysis of the present value of future discounted cash flows and market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that we expect the reporting unit to generate in the future. Our significant estimates in the discounted cash flows model include our weighted average cost of capital, revenue growth rates, profitability of our business and long-term rate of growth. The market valuation approach indicates the fair value of the business based on a comparison of the reporting unit to comparable publicly traded firms in similar lines of business. Our significant estimates in the market approach model include identifying similar companies with comparable business factors, such as size, growth, profitability, risk and return on investment, assessing comparable revenue and operating income multiples and the control premium applied in estimating the fair value of the reporting unit. We believe the weighted use of discounted cash flows and market approach is the best method for determining the fair value of our reporting units because these are the most common valuation methodologies used within the travel and Internet industries; and the blended use of both models compensates for the inherent risks associated with either model if used on a stand-alone basis. In addition to measuring the fair value of our reporting units as described above, we consider the combined fair values of our reporting units and corporate-level assets and liabilities in relation to the Company’s total fair value of equity as of the assessment date, which assumes our fully diluted market capitalization, using either the stock price on the valuation date or the average stock price over a range of dates around the valuation date, plus an estimated acquisition premium which is based on observable transactions of comparable companies. Indefinite-lived intangible assets: In our evaluation of our indefinite-lived intangible assets, we typically first perform a qualitative assessment to determine whether the fair value of the indefinite-lived intangible assets is more likely than not impaired. If so, we perform a quantitative assessment and an impairment charge is recorded for the excess of the carrying value of the indefinite-lived intangible assets over the fair value. Periodically, we may elect to bypass the initial qualitative assessment and proceed directly to the quantitative impairment test of indefinite-lived intangible assets. We base our measurement of the fair value of our indefinite-lived intangible assets, which consist of trade name, trademarks and domain names, on the relief-from-royalty method. This method assumes that the trade name and trademarks have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them. Recoverability of intangible assets with definite lives and other long-lived assets Intangible assets with definite lives and other long-lived assets are carried at cost and are amortized on a straight-line basis over their estimated useful lives of generally less than seven years. We review the carrying value of long-lived assets or asset groups, including property and equipment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, we would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, we will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group’s carrying amount and its estimated fair value. Income taxes We record income taxes under the liability method. Deferred tax assets and liabilities reflect our estimation of the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for book and tax purposes. We determine deferred income taxes based on the differences in accounting methods and timing between financial statement and income tax reporting. Accordingly, we determine the deferred tax asset or liability for each temporary difference based on the enacted tax rates expected to be in effect when we realize the underlying items of income and expense. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as other relevant factors. We may establish a valuation allowance to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated results of operations, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates. We account for uncertain tax positions based on a two-step process of evaluating recognition and measurement criteria. The first step assesses whether the tax position is more likely than not to be sustained upon examination by the tax authority, including resolution of any appeals or litigation, based on the technical merits of the position. If the tax position meets the more likely than not criteria, the portion of the tax benefit greater than 50% likely to be realized upon settlement with the tax authority is recognized in the financial statements. Interest and penalties related to uncertain tax positions are classified in the financial statements as a component of income tax expense. Presentation of taxes in the statements of operations We present taxes that we collect from advertisers and remit to government authorities on a net basis in our consolidated statements of operations. Foreign currency translation and transaction gains and losses The consolidated financial statements have been prepared in euros, the reporting currency. Certain of our operations outside of the Eurozone use the local currency as their functional currency. We translate revenue and expense at average exchange rates during the period and assets and liabilities at the exchange rates as of the consolidated balance sheet dates and include such foreign currency translation gains and losses as a component of other comprehensive income. Due to the nature of our operations and our corporate structure, we also have subsidiaries that have transactions in foreign currencies other than their functional currency. We record transaction gains and losses in our consolidated statements of operations related to the recurring remeasurement and settlement of such transactions. Advertising expense We incur advertising expense consisting of offline costs, including television and radio advertising expense, online advertising expense, as well as sponsorship and endorsement expense, in order to promote our brands. A significant portion of traffic from users is directed to our websites through our participation in display advertising campaigns on search engines, advertising networks, affiliate websites and social networking sites. We consider traffic acquisition costs to be indirect advertising fees. We expense the production costs associated with advertisements in the period in which the advertisement first takes place. We expense the costs of communicating the advertisement (e.g., television airtime) as incurred each time the advertisement is shown. These costs are included in selling and marketing expense in our consolidated statements of operations. Share-based compensation Share-based compensation expense relates to stock awards granted in connection with the Omnibus Incentive Plan, as further discussed in Note 10 - Share-based awards and other equity instruments . For the years ended December 31, 2020 and 2021, we had no awards classified as liabilities. Forfeitures are accounted for in the period that the award is forfeited. Share Options : The majority of our share options are service-based awards. We also grant awards that contain performance conditions which vest upon achievement of certain company-based targets and awards which contain market conditions which vest upon achievement of certain market-based targets, in addition to containing service conditions. The fair value of share options accounted for as equity settled transactions is measured at the grant date (or modification date, if applicable) using an appropriate valuation model, including the Black-Scholes option pricing model and, for awards that contain market-based vesting conditions, the Monte Carlo simulation pricing model. The majority of our share options vest between one Restricted Stock Units: We grant Restricted Stock Units ("RSUs"), which are stock awards entitling the holder to shares of common stock as the award vests. For RSU awards with only service-based vesting conditions, we measure the value of RSUs at fair value based on the number of shares granted and the quoted price of our common stock at the date of grant. For RSU awards which contain market conditions, we estimate the fair value using the Monte Carlo simulation model. The majority of our RSUs vest between one We amortize the fair value of service-based awards, net of actual forfeitures, as share-based compensation expense over the vesting term on a straight-line basis. Performance and Market-Based Awards. Awards with company-based performance conditions are assessed to determine the probability of the award vesting. If assessed as probable, we record compensation expense for these awards over the total performance and service period using the accelerated method. At each reporting period, we reassess the probability of achieving the performance targets, which requires judgment. In the event that actual results or updated estimates differ from our current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period in which estimates are revised, or the change in estimate will be applied prospectively depending on whether the change affects the estimate of total compensation cost to be recognized. The ultimate number of shares issued and the related compensation expense recognized will be based on a comparison of the final performance metrics to the specified targets. For awards with market conditions, the probabilities of the actual number of awards expected to vest is reflected in the grant date fair values. Compensation expense for these awards is recognized over the service period using the accelerated method. The valuation models used incorporate various assumptions including expected volatility of equity, expected term and risk-free interest rates. The expected volatility is based on historical volatility of our common stock. We use the simplified method in determining the term by using the midpoint between the vesting date and the end of the contractual term. The simplified method was used as we do not have sufficient relatable historical term data available. The share price assumption used in the model is based on our publicly traded share price on the date of grant. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive these awards, and subsequent events are not indicative of the reasonableness of our original estimates of fair value. Reserves available for dividend distribution We do not at present plan to pay cash dividends on our Class A shares. Under Dutch law, we may only pay dividends to the extent that our shareholders’ equity ( eigen vermogen ) exceeds the sum of the paid-up and called-up share capital plus the reserves required to be maintained under Dutch law or by our articles of association (although we note that, presently, we are not required by our articles of association to maintain reserves in addition to those which we must maintain under Dutch law). Subject only to such restrictions, any future determination to pay dividends will be at the discretion of our management board (in some instances, subject to approval by a Founder). In making a determination to pay dividends, the management board must act in the interests of our company and its business, taking into account relevant interests of our shareholders and other factors that our management board considers relevant, including our results of operations, financial condition, and future prospects. For the years ended December 31, 2020 and 2021, our reserves restricted for dividend distribution were €188.7 million and €169.3 million, respectively. Fair value recognition, measurement and disclosure The carrying amounts of cash and cash equivalents, restricted cash and short-term investments reported on our consolidated balance sheets approximate fair value as we maintain them with various high-quality financial institutions. Our accounts receivable are short-term in nature and their carrying value generally approximates fair value. We disclose the fair value of our financial instruments based on the fair value hierarchy using the following three categories: Level 1 - Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 - Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Certain risks and concentration of credit risk Our business is subject to certain risks and concentrations including dependence on relationships with our advertisers, dependence on third-party technology providers, and exposure to risks associated with online commerce security. Our concentration of credit risk relates to depositors holding our cash and customers with significant accounts receivable balances. Our customer base includes primarily OTAs, hotel chains and independent hotels. We perform ongoing credit evaluations of our customers and maintain allowances for potential credit losses. We generally do not require collateral or other security from our customers. Expedia Group, our controlling shareholder, and its affiliates represent 34%, 27% and 25% respectively, of revenues for the year ended December 31, 2019, 2020 and 2021 and 20% and 41% of total accounts receivable as of December 31, 2020 and 2021. Booking Holdings and its affiliates represent 40%, 44% and 54%, respectively, of revenues for the years ended December 31, 2019, 2020 and 2021 and 47% and 31%, respectively, of total accounts receivable as of December 31, 2020 and 2021. Contingent liabilities From time to time, we may be involved in various claims and legal proceedings relating to claims arising out of our operations, as discussed further in Note 14: Commitments and contingencies . Periodically, and at year end, we review the status of all significant outstanding matters to assess the potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time, which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. Government Grants Government grants are recognized when there is reasonable assurance that the Company will comply with any conditions attached to the grant and the grant will be received. A government grant that compensates for expenses incurred is recognized in our consolidated statements of operations as a deduction from relevant expenses on a systematic basis in the periods in which the expenses are recognized. A government grant that becomes receivable for costs already incurred or for the purpose of giving immediate financial support to the Company, with no future related costs, is recognized as income in the period in which it becomes receivable. During the year ended December 31, 2021, we took advantage of a COVID-19 subsidy program and received a €12 million grant from the German government. The German government provided this assistance to compensate for losses incurred in the fourth quarter of 2020 and the first half in 2021 as a result of the pandemic. As of December 31, 2021 the full amount was received and all conditions attached to the grant were met. The grant was recognized as other income and presented within the line item other, net in |
Acquisitions and divestitures
Acquisitions and divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and divestitures | Acquisitions and divestitures Acquisitions Effective on January 12, 2021, we acquired 100% of weekengo GmbH ("Weekengo") shares for €6.7 million from former shareholders and the domain and related trademark for €0.7 million from a former shareholder, for an aggregate cash purchase price of €7.4 million of which €0.5 million are held in escrow to be released to the former shareholders one year after closing. Refer to Note 18 - Subsequent events for details on the escrow release subsequent to December 31, 2021. Weekengo is a company based in Germany that operates the online travel search website “weekend.com”, which specializes in optimizing the delivery of search results for direct flights and hotel packages with a short-trip focus. A portion of the purchase consideration was paid in December 2020 as partial fulfillment of closing conditions amounting to €3.0 million. This amount was included in prepaid expenses and other current assets on the consolidated balance sheet as of December 31, 2020. The acquisition was accounted for as a business combination using the acquisition method of accounting. Accordingly, we have allocated the consideration paid for Weekengo to the net tangible and identifiable intangible assets based on their estimated fair values. Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and identifiable intangible assets. The following table summarizes the final acquisition date fair values of the assets acquired and liabilities assumed: (in thousands) January 12, 2021 Cash and cash equivalents € 85 Prepaid expenses and other current assets 54 Property and equipment, net 1,662 Deferred income taxes 1,247 Goodwill 3,838 Intangible assets, net 675 Total Assets € 7,561 Accounts payable (121) Other liabilities (15) Net assets acquired € 7,425 The allocation of the purchase price was subject to revision during the measurement period, which is up to one year from the date of the acquisition. Adjustments to the preliminary values, which may include tax and other estimates, during the measurement period are recorded in the reporting period in which the adjustment amounts are determined. In the fourth quarter of 2021, we recorded a measurement period adjustment to the provisional amount recognized of deferred income taxes to reflect information that became known to management regarding facts and circumstances that existed as of the acquisition date. The adjustment resulted in an increase in deferred tax assets of €1.5 million, attributable to tax losses carried forward, which was offset by €0.3 million of deferred tax liabilities attributable to fair value adjustment on capitalized software and software development costs. The €1.2 million net increase in deferred tax assets resulted in a corresponding decrease to goodwill. The adjustment did not result in an impact to our consolidated statements of operations. As of December 31, 2021, our purchase price allocation is complete. The Company applied variations of the cost approach to estimate the fair values of the acquired trademark and domain “WEEKEND.com”, recognized within intangible assets, of €0.7 million with an estimated useful life of 5 years, and capitalized software and software development costs, recognized within property and equipment, of €1.6 million with an estimated useful life of 3 years. The goodwill balance of €3.8 million has been assigned to the Developed Europe and Americas segments in the amounts of €2.5 million and €1.3 million, respectively. The goodwill largely reflects our access to Weekengo’s development team and know-how, and expected synergies to strengthen our presence in the weekend getaway market. Goodwill is not expected to be deductible for tax purposes. Revenues from Weekengo included in the Company's consolidated statements of operations for the year ended December 31, 2021 were €0.2 million. Net loss from Weekengo included in the Company's consolidated statements of operations for the same period was €2.3 million. The Company did not incur material transaction costs with respect to the Weekengo acquisition during the year ended December 31, 2021. The following unaudited pro forma information reflects our consolidated results of operations as if the acquisition had occurred on January 1, 2020. The pro forma information is not necessarily indicative of the results of operations that we would have reported had the transaction actually occurred at the beginning of the period nor is it necessarily indicative of future results. The pro forma financial information does not reflect the impact of future events that may occur after the acquisition, including, but not limited to, anticipated costs savings from synergies or other operational improvements. (in thousands) Year ended December 31, 2020 Revenue € 249,287 Net loss (247,220) The pro forma financial information in the table above includes adjustments that are directly attributable to the business combination and are factually supportable. The pro forma financial information include adjustments of €0.6 million for the year ended December 31, 2020 related to application of the Company’s accounting policies, depreciation and amortization related to fair value adjustment on capitalized software and software development costs and recognition of the trademark and domain, and acquisition related transaction costs. Divestitures trivago Spain S.L.U. ("Palma") was a wholly-owned subsidiary of trivago. In the third quarter of 2020, we entered into an agreement to sell 100% of our shares in Palma to a third-party buyer for cash consideration of €1.3 million. The transaction closed in September 2020. As a result of the sale, we also recorded an impairment loss of €0.5 million on property and equipment for the year ended December 31, 2020, which was recognized within our operating expenses on our consolidated statements of operations. base7booking.com Sarl ("base7") was a wholly-owned subsidiary of trivago. In the fourth quarter of 2020, we entered into an agreement to sell substantially all assets of base7 to a third-party buyer for cash consideration of €0.8 million, subject to subsequent net working capital and subscription revenue adjustments. The transaction closed in November 2020. We recognized a gain on sale of €0.5 million and derecognized €0.3 million of goodwill associated with the disposal group for the year ended December 31, 2020. In December 2020, we entered into an agreement to sell our minority interest (49%) in myhotelshop GmbH ("myhotelshop") for a cash consideration of €70 thousand to its majority shareholder, who is not a related party to trivago. One of the closing conditions of the agreement was for myhotelshop to repay the outstanding shareholder loan to us. As of December 31, 2020, the outstanding loan and accrued interest of €1.0 million with myhotelshop had been fully repaid. Due to the imminent closing of the transaction, we recognized an impairment loss of €1.1 million based on the difference between the consideration and the carrying amount of the minority interest, and this amount has been included in income from equity method investment for the year ended December 31, 2020. The sale of myhotelshop closed on January 28, 2021. As a result of the conclusion of the sale, we derecognized the remaining equity method investment of €70 thousand on our consolidated balance sheet with no further gain or loss recognized between the consideration and the carrying amount. Refer to Note 15 - Related party transactions for related party considerations arising from myhotelshop. |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement Financial assets measured at fair value on a recurring basis as of December 31, 2020 included the following: As of December 31, 2020 Total Level 1 Level 2 (in thousands) Assets Cash equivalents: Money market funds € 65,111 € 65,111 € — Short-term investments Term deposits 9,448 — 9,448 Total € 74,559 € 65,111 € 9,448 Financial assets measured at fair value on a recurring basis as of December 31, 2021 are classified using the fair value hierarchy in the table below: As of December 31, 2021 Total Level 1 Level 2 (in thousands) Assets Cash equivalents: Money market funds € 19,922 € 19,922 € — Other long-term assets Term deposits 1,351 — 1,351 Total € 21,273 € 19,922 € 1,351 We value our financial assets using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents as Level 1 measurements. We hold term deposit investments with financial institutions. We classify our term deposits within Level 2 in the fair value hierarchy because they are valued at amortized cost, which approximates fair value. Term deposits with original maturity of more than three months but less than one year are classified as short- |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other current assets | Prepaid expenses and other current assets As of December 31, (in thousands) 2020 2021 Prepaid advertising € 2,297 € 5,078 Other prepaid expenses 4,132 4,968 Other assets 4,009 227 Total € 10,438 € 10,273 As of December 31, 2020, €3.0 million in other assets related to a portion of the purchase consideration for the Weekengo acquisition. The transaction closed on January 12, 2021, at which time, the total consideration, inclusive of the €3.0 million paid prior to the closing of the acquisition, was allocated to the acquired asset as discussed in Note 3: Acquisitions and divestitures . In January 2021, we entered into a long-term marketing sponsorship agreement for various marketing rights beginning July 1, 2021. The first contractual installment payments under this agreement have been paid and as of December 31, 2021, €3.6 million has been included within prepaid advertising in the above table. |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net As of December 31, (in thousands) 2020 2021 Leasehold improvements € 15,295 € 6,865 Capitalized software and software development costs 22,702 26,643 Computer equipment 17,248 15,795 Furniture and fixtures 5,480 3,026 Subtotal 60,725 52,329 Less: accumulated depreciation 34,352 37,537 Construction in process 309 1,113 Property and equipment, net € 26,682 € 15,905 Our headquarters in Düsseldorf, Germany is accounted for as an operating lease, and consequently the operating lease right-of-use ("ROU") assets and operating lease liabilities are recognized on our consolidated balance sheet (see Note 2 - Significant accounting policies - Leases and Note 7 - Leases for further information). As part of the amendment to the campus operating lease agreement on January 29, 2021, we transferred long-lived assets with a net book value of €7.5 million related to the terminated floor space to the landlord. We recognized a gain of €0.2 million on the sale of the fixed assets. We establish assets and liabilities for the present value of estimated future costs to return our new headquarters to their original condition under the authoritative accounting guidance for asset retirement obligations. Such assets are depreciated over the useful live of the underlying asset or the lease period and the recorded liabilities are accreted to the future value of the estimated restoration costs. As of December 31, 2020 and 2021, an asset retirement obligation asset and liability of €0.3 million and €0.1 million, respectively, is included within building and leasehold improvements, gross of accumulated depreciation of €39 thousand and €6 thousand, respectively, for the cost to decommission the physical space of our headquarters and our leased facilities. As of December 31, 2020 and 2021, our internally developed capitalized software and acquired software development costs, net of accumulated amortization, were €7.2 million and €6.9 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for office space and office equipment. Our leases have remaining lease terms of less than one year to 16 years, some of which include options to extend the leases for up to ten years, and some of which include options to terminate the leases within one year. Operating lease costs were €8.2 million and €5.1 million for the years ended December 31, 2020 and 2021. Variable lease costs of €0.4 million for the year ended December 31, 2021 includes short payment of rent to the landlord on account of defects identified in the office space in our corporate headquarters and cost-of-living index adjustments. Variable lease costs for the years ended December 31, 2019 and December 31, 2020 were insignificant. The Company also had subleases mainly for office space under agreements which were terminated by the end of 2021. Sublease income from such agreements was €1.0 million, €0.9 million and €0.1 million for the years ended December 31, 2019, 2020 and 2021. On January 29, 2021, we entered into an amendment to the operating lease agreement for office space in our corporate headquarters, whereby the landlord agreed to grant us partial termination of the lease related to certain floor spaces from January 1, 2021 for a penalty of €6.7 million, and from May 31, 2023 for a penalty of €2.3 million. The amendment was treated as a modification to the existing lease agreement with an effective date of January 29, 2021 and the termination penalties will be expensed over the remaining lease term. As part of the amendment, the landlord agreed to pay trivago €2.6 million as a settlement of prior claims for defects in the leased office space, which has been treated as a lease incentive and will reduce lease expense over the lease term. As a result of this lease modification, we recognized a gain of €1.2 million on the lease modification, agreed to pay €0.5 million as a settlement of prior claims for defects that had previously been accrued for and reduced our operating lease right-of-use assets and operating lease liability by €34.7 million and €36.4 million, respectively. Supplemental information related to operating leases was as follows: As of December 31, (in thousands) 2020 2021 Cash payments for operating leases € 5,225 € 10,468 New operating lease assets obtained in exchange for operating lease liabilities € 417 € — Supplemental consolidated balance sheet information related to leases were as follows: As of December 31, (in thousands) 2020 2021 Operating lease right-of-use assets € 86,810 € 48,323 Current operating lease liabilities € 7,188 € 2,269 Long-term operating lease liabilities € 85,979 € 45,267 Total operating lease liabilities € 93,167 € 47,536 Weighted average remaining lease term 17.3 years 15.6 years Weighted average discount rate 3.9 % 3.4 % Maturities of operating lease liabilities are as follows: Year ended December 31, (in thousands) 2021 2022 € 3,826 2023 5,979 2024 3,646 2025 3,630 2026 3,560 2027 and thereafter 40,639 Total lease payments 61,280 Less: imputed interest (13,744) Total € 47,536 |
Goodwill and intangible assets,
Goodwill and intangible assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets, net | Goodwill and intangible assets, net The following table presents our goodwill and intangible assets as of December 31, 2020 and 2021: As of December 31, (in thousands) 2020 2021 Goodwill € 282,664 € 286,539 Intangible assets with definite lives, net 5 540 Intangible assets with indefinite lives 169,545 169,545 Total € 452,214 € 456,624 Impairment Assessment As a response to the business impact from the COVID-19 pandemic, we performed a quantitative goodwill impairment assessment in the first quarter of 2020. As a result, we recorded goodwill impairment charges of €17.6 million, €107.5 million and €82.5 million, in the Developed Europe, Americas and Rest of World reporting units, respectively. We performed our annual impairment assessment for goodwill as of September 30, 2020 and 2021. During the assessments, we compared the fair values of our reporting units to their carrying values. The fair value estimates for all reporting units were based on a blended analysis of the present value of future discounted cash flows and market value approach. The significant estimates used in the discounted cash flows model included our weighted average cost of capital, revenue growth rates, profitability of our business and long-term rate of growth. Our assumptions were based on the anticipated duration of COVID-19 impacts and rates of recovery, and implied risk premiums based on our market capitalization and factors specific to each reporting unit as of the assessment dates. Our significant estimates in the market approach model included identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, assessing comparable revenue and earnings multiples and the control premium applied in estimating the fair values of the reporting units. We did not record any impairment charges as a result of the annual assessments as the fair values of the reporting units were assessed to be higher than their carrying values. Goodwill The following table presents the changes in goodwill by reporting segment: (in thousands) Developed Europe Americas Rest of World Total Balance as of January 1, 2020 € 215,310 € 192,753 € 82,527 € 490,590 Foreign exchange translation (4) 6 7 9 Impairment charge (17,568) (107,516) (82,534) (207,618) Disposals (222) (95) — (317) Balance as of December 31, 2020 € 197,516 € 85,148 € 0 € 282,664 Balance as of January 1, 2021 € 197,516 € 85,148 € 0 € 282,664 Foreign exchange translation 26 11 — 37 Impairment charge — — — — Additions 2,525 1,313 — 3,838 Balance as of December 31, 2021 € 200,067 € 86,472 € 0 € 286,539 As of December 31, 2020 and December 31, 2021, we had accumulated impairment losses for goodwill of €207.6 million. Indefinite-lived Intangible Assets Our indefinite-lived intangible assets relate principally to trade names, trademarks and domain names. Concurrently with our annual goodwill impairment assessment, we also performed a quantitative impairment assessment for indefinite-lived intangible assets. We did not record any impairment losses as a result of this assessment. As of December 31, 2020 and December 31, 2021, we had no accumulated impairment losses for indefinite-lived intangible assets. Intangible Assets with Definite Lives The following table presents the components of our intangible assets with definite lives as of December 31, 2020 and 2021: December 31, 2020 December 31, 2021 (in thousands) Cost (Accumulated Amortization) Net Cost (Accumulated Amortization) Net Partner relationships 34,220 (34,220) — 34,220 (34,220) — Technology 59,789 (59,784) 5 59,789 (59,789) — Non-compete agreement 10,800 (10,800) — 10,800 (10,800) — Trademark/domain — — — 675 (135) 540 Total € 104,809 € (104,804) € 5 € 105,484 € (104,944) € 540 Amortization expense was €0.4 million for the year ended December 31, 2020 and €0.1 million for the year ended December 31, 2021. The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2021, assuming no subsequent impairment of the underlying assets, will be €135 thousand for each of the four succeeding fiscal years. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the second quarter of 2020, we announced a restructuring of our organization in order to adjust to the new economic situation due to the COVID-19 pandemic. We decided to consolidate our office locations and to reduce our headcount significantly, in order to shape a leaner organization, enabling us to prepare for the expected market recovery and achieve our long-term profit recovery plan. During 2020, the Company recorded €6.2 million of charges associated with the restructuring activity. The charges were comprised of €1.8 million being recorded in selling and marketing expense, €2.9 million in technology and content expense and €1.5 million in general and administrative expense. Charges recorded in cost of revenue in 2020 were insignificant. No restructuring charges were incurred in the year ended December 31, 2021. As of December 31, 2020, €0.2 million of total restructuring charges related to employee related costs remained in accrued expenses and other liabilities in the consolidated balance sheets. The remaining restructuring costs accrued were fully paid during 2021. The restructuring was complete as of December 31, 2021. The following table presents the development of our restructuring liability for the year ended December 31, 2021. (in thousands) Employee related costs Liability as of January 1, 2020 € — 2020 restructuring charges 6,235 Cash payments (6,063) Liability as of December 31, 2020 € 172 Cash payments (172) Liability as of December 31, 2021 € — The charges incurred in 2020 in connection with the restructuring activity mainly consists of severance and benefit charges. |
Share-based awards and other eq
Share-based awards and other equity instruments | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based awards and other equity instruments | Share-based awards and other equity instruments 2016 Omnibus Incentive Plan In connection with our IPO, we established the trivago N.V. 2016 Omnibus Incentive Plan, which we refer to as the 2016 Plan, with the purpose of giving us a competitive advantage in attracting, retaining and motivating officers, employees, management board members, supervisory board members, and/or consultants by providing them incentives directly linked to shareholder value. The maximum number of Class A shares available for issuance under the 2016 Plan as of December 31, 2021 are 59,635,698 Class A shares (34,711,009 as of December 31, 2020), which does not include any Class B share conversions. Class A shares issuable under the 2016 Plan are represented by ADSs for such Class A shares. The 2016 Plan is administered by a committee of at least two members of our supervisory board, which we refer to as the plan committee. The plan committee must approve all awards to directors. Our management board may approve awards to eligible recipients other than directors, subject to annual aggregate and individual limits as may be agreed by the supervisory board. Subject to applicable law or the listing standards of the applicable exchange, the plan committee may delegate to other appropriate persons the authority to grant equity awards under the 2016 Plan to eligible award recipients. Management board members, supervisory board members, officers, employees and consultants of the company or any of our subsidiaries or affiliates, and any prospective directors, officers, employees and consultants of the company who have accepted offers of employment or consultancy from the company or our subsidiaries or affiliates are eligible for awards under the 2016 Plan. Awards include options, performance-based stock options share appreciation rights, restricted stock units, performance-based stock units and other share-based and cash-based awards. Awards may be settled in stock or cash. The option exercise price for options under the 2016 Plan can be less than the fair market value of a Class A share as defined in the 2016 Plan on the relevant grant date. To the extent that listing standards of the applicable exchange require the company’s shareholders to approve any repricing of options, options may not be repriced without shareholder approval. Options and share appreciation rights shall vest and become exercisable at such time and pursuant to such conditions as determined by the plan committee and as may be specified in an individual grant agreement. The plan committee may at any time accelerate the exercisability of any option or share appreciation right. Restricted shares may vest based on continued service, attainment of performance goals or both continued service and performance goals. The plan committee at any time may waive any of these vesting conditions. Options and share appreciation rights will have a term of not more than ten years. The 2016 Plan has a ten year term, although awards outstanding on the date the 2016 Plan terminates will not be affected by the termination of the 2016 Plan. During the years ended December 31, 2020 and 2021, 10,156,893 and 7,014,589 awards, respectively, were granted under the 2016 Plan. We issue new shares to satisfy the exercise or settlement of share-based awards. The following table presents a summary of our share option activity: Options Weighted Remaining Aggregate (in €) (In years) (€ in thousands) Balance as of January 1, 2019 20,693,398 5.54 17 32,050 Granted 3,932,498 0.06 17,412 Exercised 1,218,560 0.17 5,034 Cancelled 2,233,623 6.93 1,572 Balance as of December 31, 2019 21,173,713 4.79 15 19,556 Granted 8,550,753 0.06 12,359 Exercised 1,405,583 0.06 2,168 Cancelled 1,971,734 4.28 1,214 Balance as of December 31, 2020 26,347,149 3.29 12 28,356 Granted 5,979,438 0.06 20,865 Exercised 3,960,319 0.32 10,769 Cancelled 4,538,322 6.16 2,623 Balance as of December 31, 2021 23,827,946 2.64 11 30,237 Exercisable as of December 31, 2021 12,605,128 4.54 16 10,856 Vested and expected to vest after December 31, 2021 23,827,946 2.64 11 30,237 The following table presents a summary of our restricted stock units (RSUs): RSUs Weighted Average Grant Date Fair Value Remaining (in €) (in years) Balance as of January 1, 2019 57,806 3.88 7 Granted 474,121 4.25 Vested 38,262 3.88 Cancelled 8,000 5.29 Balance as of December 31, 2019 485,665 4.22 6 Granted 1,606,140 1.13 Vested 245,687 4.30 Cancelled 221,657 2.43 Balance as of December 31, 2020 1,624,461 1.39 5 Granted 1,035,151 3.81 Vested 553,241 2.08 Cancelled 740,248 1.44 Balance as of December 31, 2021 1,366,123 2.92 6 The fair value of share awards granted during the years ended December 31, 2019, 2020 and 2021 were estimated at the date of grant using appropriate valuation techniques, including the Black-Scholes and Monte Carlo simulation pricing models, assuming the following weighted average assumptions: Year ended December 31, 2019 2020 2021 Risk-free interest rate (0.56) % (0.20) % (0.46) % Expected volatility 50 % 60 % 71 % Expected life (in years) 4.50 4.12 4.41 Dividend yield — % — % — % Weighted-average estimated fair value of options granted during the year € 4 € 1 € 4 The Monte Carlo simulation model, which simulated the probabilities of the potential outcomes of future stock prices of the Company over the performance period, was used to calculate the grant-date fair value for awards with market conditions. On October 22, 2020, a modification was made to the vesting conditions for market-based awards, which impacted 3,580,049 awards granted to three grantees on March 11, 2020. As of the modification date, additional incremental compensation expense of €1.0 million is being amortized over the remaining service period using the accelerated method. During the years ended December 31, 2019, 2020 and 2021, we recognized total share-based compensation expense of €19.9 million, €15.1 million and €17.3 million, respectively, which had no related income tax benefit. Cash received from share-based award exercises for the years ended December 31, 2019, 2020 and 2021 was €202 thousand, €87 thousand and €1,270 thousand, respectively. As of December 31, 2021, there was approximately €18.4 million in unrecognized share-based compensation expense related to unvested share-based awards subject to equity treatment, which is expected to be recognized in expense over the weighted average period of 1.6 years. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The following table summarizes our income tax expense/(benefit): Year ended December 31, (€ thousands) 2019 2020 2021 Current income tax expense/(benefit): Germany € 18,769 € (362) € 3,729 Other countries 309 117 1 Current income tax expense/(benefit) € 19,078 € (245) € 3,730 Deferred income tax expense/(benefit): Germany 2,020 (8,165) 8,914 Other countries (116) (84) (58) Deferred income tax expense/(benefit) € 1,904 € (8,249) € 8,856 Income tax expense/(benefit) € 20,982 € (8,494) € 12,586 Reconciliation of German statutory income tax rate to effective income tax rate The following table summarizes our income/(loss) before income taxes allocated to Germany and to other countries: Year ended December 31, (€ thousands) 2019 2020 2021 Germany € 36,750 € (252,859) € 23,387 Other countries 940 (274) (97) Income/(loss) before income taxes € 37,690 € (253,133) € 23,290 A reconciliation of amounts computed by applying the German statutory income tax rate of 31.23% to income/(loss) before income taxes to total income tax expense/(benefit) is as follows: Year ended December 31, (€ thousands) 2019 2020 2021 Income/(loss) before income taxes € 37,690 € (253,133) € 23,290 Income tax expense at German tax rate 11,769 (79,041) 7,272 Foreign rate differential 100 40 17 Expected tax expense/(benefit) € 11,869 € (79,001) € 7,289 Tax effect from: Non-deductible share-based compensation € 6,211 € 4,708 € 5,390 Non-deductible corporate costs — — 121 Goodwill impairment — 64,829 — Prior period taxes 66 9 (294) Movement in valuation allowance 19 454 80 Foreign withholding taxes — 305 — Movement in uncertain tax positions 2,857 14 56 Income tax effect resulting from weekengo asset deal transaction — — 1,938 Initial recognition of tax deductible goodwill and intangibles — — (1,938) Other differences (40) 188 (56) Income tax expense/(benefit) € 20,982 € (8,494) € 12,586 The income tax expense/(benefit) is mainly driven by income/(loss) before income taxes of €37.7 million, €(253.1) million and €23.3 million for the years ended December 31, 2019, 2020 and 2021, respectively. Our effective tax rate was 55.7%, 3.4% and 54.0% in the years ended December 31, 2019, 2020 and 2021, respectively. Non-deductible share-based compensation of (pre-tax) €19.9 million, €15.1 million and €17.3 million had an impact on the effective tax rates of 16.5%, (1.9)% and 23.1% in the years ended December 31, 2019, 2020 and 2021, respectively. In 2020, non-deductible impairment expenses on goodwill of €207.6 million had an impact on the effective tax rate of (25.6)%. Additional details on the movement in valuation allowance are included in the deferred income tax section below. Following the weekengo share deal in January 2021, an intragroup asset deal took place in August 2021. The asset deal resulted in a deferred income tax benefit of €1.9 million on level of trivago N.V. for tax deductible goodwill and intangible assets. Correspondingly, an income tax expense resulted on level of weekengo split into deferred tax expense of €1.3 million (utilization of tax loss carry forwards) and current tax expense of €0.6 million (minimum taxation). The tax effects resulting from the acquisition of shares and assets of weekengo are separate transactions in the year 2021. Other differences relate to one-off items during the year, such as non-deductible expenses which are individually insignificant. Uncertain tax positions Uncertain tax positions as of December 31, 2020 and 2021 were as follows: Year Ended December 31, (€ thousands) 2020 2021 Balance, beginning of year € 2,857 € 2,871 Increases to tax positions related to the current year — — Increases to tax positions related to prior years — — Interest and penalties 14 56 Balance, end of year € 2,871 € 2,927 Tax audits The Company is subject to audit by federal, state, local and foreign income tax authorities. As of December 31, 2021, the audit of tax returns from 2016 through 2018 for corporate and trade income tax as well as value-added tax for trivago N.V. has been announced. According to the statute of limitation, the German tax authorities may initiate additional audits of the tax years for 2019 through 2021 . Deferred income taxes At December 31, 2020 and 2021, the significant components of our deferred tax assets and deferred tax liabilities were as follows: Year Ended December 31, (€ thousands) 2020 2021 Deferred tax assets: Net operating loss and tax credit carryforwards € 11,840 € 5,665 Prepaid expense and other current assets 1,335 310 Property and equipment 1 — Accrued expenses and other current liabilities 26 157 Operating lease liability 28,132 14,843 Other long-term liabilities 115 47 Other — — Deferred tax assets (gross) € 41,449 € 21,022 Less valuation allowance (536) (1,388) Subtotal € 40,913 € 19,634 Offsetting (40,912) (19,608) Deferred tax assets € 1 € 26 Deferred tax liabilities: Cash and cash equivalents € — € 722 Intangible assets, net 52,928 51,257 Property and equipment 2,875 2,334 Operating lease right-of-use assets 27,106 15,089 Other 179 16 Subtotal € 83,088 € 69,418 Offsetting (40,912) (19,608) Deferred tax liabilities € 42,176 € 49,810 At December 31, 2021, we had net operating loss carryforwards (“NOLs”) for a tax-effected amount of approximately €5.7 million (in 2020: €11.8 million). The tax-effected NOL carryforwards decreased by €6.1 million from the amount recorded at December 31, 2020, primarily due to the utilization of the losses at the level of the trivago N.V. trivago N.V. is a Dutch listed entity, however has its tax residency in Germany. As of December 31, 2021, deferred tax assets of €1.4 million for accumulated tax loss carryforwards of domestic and foreign subsidiaries were not recognized as we have considered these tax loss carryforwards as not realizable. Accordingly the valuation allowance increased by €0.9 million from the amount recorded as of December 31, 2020, with €0.8 million resulting from the acquisition of weekengo, primarily due to the absence of potential future taxable profits necessary to use tax loss carryforwards. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period change, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. The total cumulative amount of undistributed earnings related to investments in certain foreign subsidiaries where the foreign subsidiary has or will invest undistributed earnings indefinitely was €1.7 |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' equity As of December 31, 2021, we had ADSs representing 96,704,815 Class A shares and 261,962,688 Class B shares outstanding. Each Class B share is convertible into one Class A share at any time by the holder. During the years ended December 31, 2019, 2020 and 2021, 7,000,000, 3,500,000 and 36,225,279 Class B shares were converted into Class A shares, respectively. Class A and Class B common stock has a par value of €0.06 and €0.60, respectively. The holders of our Class B shares, Expedia Group and Founders, are entitled to ten votes per share, and holders of our Class A shares are entitled to one vote per share. All other terms and preferences of Class A and Class B common stock are the same. Reserves Reserves primarily represents the effects of pushdown accounting applied due to the change in control in 2013 in addition to share premium as result of the corporate reorganization and IPO. See Note 1 - Organization and basis of presentation . Further effects to the Reserves are due to the merger of trivago GmbH with and into trivago N.V. in 2017, exercises of employee stock options, and the effect of the Founders' conversion of Class B shares to Class A shares. Accumulated other comprehensive income/(loss) Accumulated other comprehensive income/(loss) represents foreign currency translation adjustments for our subsidiaries in foreign locations. As of December 31, 2021 we do not expect to reclassify any amounts included in accumulated other comprehensive income/(loss) into earnings during the next 12 months. Contribution from Parent The beginning contribution from Parent balance represents the pushdown of share-based compensation expense from Expedia Group. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per shareBasic and diluted earnings per share of Class A and Class B common stock is computed by dividing net income/(loss) by the weighted average number of Class A and Class B common stock outstanding during the same period. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. The following table presents our basic and diluted earnings per share: Year Ended December 31, (€ thousands, except per share data) 2019 2020 2021 Numerator: Net income/(loss) € 17,161 € (245,378) € 10,704 Denominator: Weighted average shares of Class A and Class B common stock outstanding: Basic 351,991 353,338 357,525 Diluted 356,738 353,338 367,240 Net income/(loss) per share: Basic € 0.05 € (0.69) € 0.03 Diluted € 0.05 € (0.69) € 0.03 Diluted weighted average common shares outstanding in 2020 do not include the effects of the exercise of outstanding stock options and RSUs as the inclusion of these instruments would have been anti-dilutive. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Purchase obligations We have commitments and obligations which include purchase commitments, which could potentially require our payment in the event of demands by third parties or contingent events. Commitments and obligations as of December 31, 2021 were as follows: By Period (in thousands) Total Less than 1 to 3 years 3 to 5 years More than Purchase obligations € 48,818 € 19,165 € 29,653 € — € — Our purchase obligations represent the minimum obligations we have under agreements with certain of our vendors. These minimum obligations are less than our projected use for those periods. Payments may be more than the minimum obligations based on actual use. Legal proceedings On August 23, 2018, the Australian Competition and Consumer Commission, or ACCC, instituted proceedings in the Australian Federal Court against us. The ACCC alleged a number of breaches of the Australian Consumer Law, or ACL, relating to certain advertisements in Australia concerning the hotel prices available on our Australian site, our Australian strike-through pricing practice and other aspects of the way offers for accommodation were displayed on our Australian website. The matter went to trial in September 2019 and, on January 20, 2020, the Australian Federal Court issued a judgment finding that we had engaged in conduct in breach of the ACL. On March 4, 2020, we filed a notice of appeal at the Australian Federal Court appealing part of that judgment. On November 4, 2020, the Australian Federal Court dismissed trivago’s appeal. On October 18 and 19, 2021, the Australian Federal Court heard submissions from the parties in relation to relief. In its submissions, the ACCC proposed a penalty of at least AUD90 million and an injunction restraining us from engaging in misleading conduct of the type found by the Australian Federal Court to be in contravention of the ACL. trivago submitted that an appropriate penalty for the court to impose would be in the order of up to AUD15 million. The court’s decision will be forthcoming. Management recorded a provision of AUD15 million for the probable and currently estimable loss in connection with these proceedings within current other liabilities. The ultimate penalty amount could substantially exceed the level of provision that we established for this litigation. In establishing a provision in respect of the ACCC matter, management took into account the information currently available, including judicial precedents. However, there is considerable uncertainty regarding how the Australian Federal Court would calculate the penalties that will be ultimately assessed on us. In particular, the Australian Federal Court determined that we engaged in certain conduct after September 1, 2018 that will result in the applicability of the new penalty regime under the ACL, which significantly increased the maximum penalty applicable to parts of our conduct. Only a few cases have been decided so far assessing penalties for contraventions of the ACL under the new regime. In cases involving conduct before and after September 1, 2018, the Australian Federal Court in each case did not allocate the total penalty imposed between the old and new penalty regime. As a result, an estimate of the reasonable possible loss or range of probable loss in excess of the amount reserved cannot be made. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Relationships with Expedia We have commercial relationships with Expedia Group, Inc. and many of its affiliated brands, including Brand Expedia, Hotels.com, Orbitz, Travelocity, Hotwire, Wotif, Vrbo and ebookers. These are arrangements terminable at will or upon three For the years ended December 31, 2019, 2020 and 2021, our operating expenses include €0.8 million, €0.2 million and €0.2 million, respectively, of related-party shared services fees and amounts related to the services and support agreements detailed below. The related party trade receivable balances with Expedia Group and its subsidiaries reflected in our consolidated balance sheets as of December 31, 2020 and 2021 were €2.9 million and €16.4 million. Services agreement On May 1, 2013, we entered into an Assets Purchase Agreement, pursuant to which Expedia Group purchased certain computer hardware and software from us, and a Data Hosting Services Agreement, pursuant to which Expedia Group provides us with certain data hosting services relating to all of the servers we use that are located within the United States. Either party may terminate the Data Hosting Services Agreement upon 30 days’ prior written notice. For the year ended December 31, 2019, we paid Expedia Group €45 thousand for these data hosting services. During the years ended December 31, 2020 and 2021, we did not utilize this service agreement. Services and support agreement On September 1, 2016, we entered into a Services and Support Agreement, pursuant to which Expedia Group agreed to provide us with certain services in connection with localizing content on our websites, such as translation services. Either party may terminate the Services and Support Agreement upon 90 days’ prior notice. For each of the years ended December 31, 2019, 2020 and 2021, we incurred €0.8 million, €0.3 million and €0.2 million, respectively, for these services and support services. myhotelshop |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Management has identified three reportable segments, which correspond to our three operating segments: the Americas, Developed Europe and Rest of World. Our Americas segment is comprised of Argentina, Barbados, Brazil, Canada, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Puerto Rico, the United States and Uruguay. Our Developed Europe segment is comprised of Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. Our Rest of World segment is comprised of all other countries, the most significant by revenue of which are Australia, Turkey, Japan, Israel and India. We determined our operating segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. Our primary operating metric is Return on Advertising Spend, or ROAS, for each of our segments, which compares Referral Revenue to Advertising Spend. ROAS includes the allocation of revenue by segment which is based on the location of the website, or domain name, regardless of where the consumer resides. This is consistent with how management monitors and runs the business. Corporate and Eliminations also includes all corporate functions and expenses except for direct advertising. In addition, we record amortization of intangible assets and any related impairment, share-based compensation expense, restructuring and related reorganization charges, legal reserves, occupancy tax and other taxes, and other items excluded from segment operating performance in Corporate and Eliminations. Such amounts are detailed in our segment reconciliations below. The following tables present our segment information for the years ended December 31, 2019, 2020 and 2021. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers. Year Ended December 31, 2019 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 347,094 € 305,061 € 171,469 € — € 823,624 Subscription revenue — — — 12,152 12,152 Other revenue — — — 2,841 2,841 Total revenue € 347,094 € 305,061 € 171,469 € 14,993 € 838,617 Advertising spend 230,291 233,949 152,465 — 616,705 ROAS contribution € 116,803 € 71,112 € 19,004 € 14,993 € 221,912 Costs and expenses: Cost of revenue, including related party, excluding amortization 9,159 Other selling and marketing, including related party (1) 47,450 Technology and content, including related party 69,924 General and administrative, including related party 55,543 Amortization of intangible assets 1,685 Operating income € 38,151 Other income/(expense) Interest expense (33) Other, net (428) Total other income/(expense), net € (461) Income before income taxes € 37,690 Expense/(benefit) for income taxes 20,982 Income before equity method investment € 16,708 Income from equity method investment 453 Net income € 17,161 (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2020 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 102,899 € 89,341 € 46,125 € — € 238,365 Subscription revenue — — — 7,657 7,657 Other revenue — — — 2,899 2,899 Total revenue € 102,899 € 89,341 € 46,125 € 10,556 € 248,921 Advertising spend 60,784 56,979 32,211 — 149,974 ROAS contribution € 42,115 € 32,362 € 13,914 € 10,556 € 98,947 Costs and expenses: Cost of revenue, including related party, excluding amortization 10,133 Other selling and marketing, including related party (1) 28,281 Technology and content, including related party 64,258 General and administrative, including related party 40,935 Amortization of intangible assets 373 Impairment of goodwill 207,618 Operating loss € (252,651) Other income/(expense) Interest expense (270) Other, net (212) Total other income/(expense), net € (482) Loss before income taxes € (253,133) Expense/(benefit) for income taxes (8,494) Loss before equity method investment € (244,639) Loss from equity method investment (739) Net loss € (245,378) (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2021 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 163,700 € 140,143 € 45,599 € — € 349,442 Subscription revenue — — — 3,914 3,914 Other revenue — — — 8,109 8,109 Total revenue € 163,700 € 140,143 € 45,599 € 12,023 € 361,465 Advertising spend 106,984 94,096 22,470 — 223,550 ROAS contribution € 56,716 € 46,047 € 23,129 € 12,023 € 137,915 Costs and expenses: Cost of revenue, including related party, excluding amortization 11,500 Other selling and marketing, including related party (1) 25,646 Technology and content, including related party 52,374 General and administrative, including related party 38,208 Amortization of intangible assets 136 Operating income € 10,051 Other income/(expense) Interest expense (389) Other, net 13,628 Total other income/(expense), net € 13,239 Income before income taxes € 23,290 Expense/(benefit) for income taxes 12,586 Income before equity method investment € 10,704 Net income € 10,704 (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Geographic information The following table presents revenue by geographic area for the years ended December 31, 2019, 2020 and 2021. Referral revenue was allocated by country using the same methodology as the allocation of segment revenue, while non-referral revenue was allocated either based upon the location of the customer using the service, or using the same methodology as the allocation of segment revenue, depending on the nature of the non-referral revenue stream. Year ended December 31, (in thousands) 2019 2020 2021 Total revenues United States € 192,526 € 57,406 € 102,687 Germany 68,491 27,491 42,301 United Kingdom 85,284 26,637 41,389 All other countries (1) 492,316 137,387 175,088 € 838,617 € 248,921 € 361,465 (1) Includes a portion of Corporate & Eliminations The following table presents property and equipment, net for Germany and all other countries, as of December 31, 2020 and 2021: (€ thousands) Years ended December 31, 2020 2021 Property and equipment, net: Germany € 26,289 € 15,817 All other countries 393 88 € 26,682 € 15,905 |
Valuation and qualifying accoun
Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and qualifying accounts | Valuation and qualifying accounts The following table presents the changes in our valuation and qualifying accounts not disclosed elsewhere in these financial statements. (€ thousands) Balance at Beginning of Period Charges to Earnings Deductions Balance at End of Period 2019 Allowance for doubtful accounts € 250 € 754 € (930) € 74 2020 Allowance for expected credit losses 74 656 (382) 348 2021 Allowance for expected credit losses 348 330 (20) 658 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events After the date of the balance sheet through the date of issuance of these consolidated financial statements, 1,200,000 Class B shares were converted into 1,200,000 Class A shares consistent with the conversion ratio discussed in Note 12 - Stockholders' equity . Furthermore, 794,681 Class A shares were issued as a result of options exercised and RSUs released. On January 13, 2022, the €0.5 million held in escrow pursuant to Weekengo's acquisition, was released to the former shareholders. On March 2, 2022, our trivago.ru domain and related mobile application was discontinued. On March 1, 2022, the Company's Supervisory Board authorized a program to repurchase up to 10 million of the Company's American Depositary Shares (“ADS”), each representing one Class A share, during the period commencing March 7, 2022 and expiring no later than May 30, 2022. Purchases of ADSs may be made from time to time depending on share price and trading volume, and will comply with the parameters set by the Company's general meeting of shareholders for such ADS repurchases. In order to facilitate these repurchases, the Company intends to enter into a plan that is designed to comply with the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The repurchases of ADSs will be funded from available working capital. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation Unless otherwise specified, “the Company” refers to trivago N.V. and its respective subsidiaries throughout the remainder of these notes. These consolidated financial statements reflect Expedia Group’s basis of accounting due to the change in control in 2013 when Expedia Group acquired a controlling ownership in trivago, as we elected the option to apply pushdown accounting in the period in which the change in control event occurred. |
Seasonality/Revenue recognition | Seasonality We experience seasonal fluctuations in the demand for our services as a result of seasonal patterns in travel. For example, searches and consequently our revenue are generally the highest in the first three quarters as travelers plan and book their spring, summer and winter holiday travel. Our revenue typically decreases in the fourth quarter. We generally expect to experience higher return on advertising spend in the first and fourth quarter of the year as we typically expect to advertise less in the periods outside of high travel seasons. Seasonal fluctuations affecting our revenue also affect the timing of our cash flows. We typically invoice once per month, with customary payment terms. Therefore, our cash flow varies seasonally with a slight delay to our revenue, and is significantly affected by the timing of our advertising spending. Changes in the relative revenue share of our offerings in countries and areas where seasonal travel patterns vary from those described above may influence the typical trend of our seasonal patterns in the future. It is difficult to forecast the seasonality for future periods, given the uncertainty related to the duration of the impact from COVID-19 and the shape and timing of any sustained recovery. Revenue recognition We recognize revenues when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We derive our revenues from the following streams: Referral Revenue We earn referral revenue using cost-per-click ("CPC") and cost-per-acquisition ("CPA") models. Both relate to fees earned on the display of a customer's (advertiser's) link on the trivago website. CPC revenue is recognized after the traveler makes the click-through to the related advertiser’s website. Control is deemed to have transferred at a point in time, being when the link or advertisement has been displayed and the click-through to the customer's website has occurred. CPA revenue is recognized when the click-through to the related advertiser's website results in a booking, as control is deemed to have transferred at that point in time. We consider the performance obligation to be satisfied when the booking has occurred. The price that an advertiser pays for a click that results in a booking is based on a percentage of the booking revenue. The prices per click for CPC and CPA advertising campaigns are negotiated in advance, thus, the amount to be recognized as revenue for the respective click is fixed and determinable when the performance obligation has been satisfied. Most of our revenue is invoiced on a monthly basis after the performance obligation has been satisfied with payment terms between 10 to 90 days. For some advertisers we require prepayments. Subscription Revenue Revenue from subscription services is recognized ratably over the contract term, which is generally 12 months or less from the subscription commencement date. Customers may choose to be billed annually or monthly via SEPA or credit card. The price per subscription is fixed and determinable when the contract commences. Deferred revenue |
Consolidation | Consolidation Our consolidated financial statements include the accounts of trivago and entities we control. Intercompany balances and transactions have been eliminated in consolidation. We deconsolidate entities from our results of operations on the day when we lose control. Further, the equity method of accounting is used for investments in associated companies in which we have a financial interest but do not have control over. As of December 31, 2020 and December 31, 2021, there are no noncontrolling interest balances, as all subsidiaries of the Company are wholly-owned. |
Accounting estimates | Accounting estimates We use estimates and assumptions in the preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). Preparation of the consolidated financial statements and accompanying notes requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as revenue and expenses during the periods reported. Our actual financial results could differ significantly from these estimates. The significant estimates underlying our consolidated financial statements include: leases, recoverability of goodwill, intangible assets and other long-lived assets, income taxes, legal and tax contingencies, business combinations and share-based compensation. The COVID-19 pandemic has had, and is expected to continue to have, a material adverse impact on the travel industry, which may have a significant adverse effect on our business and results of operations. The uncertainty associated with COVID-19 increased the level of judgement applied in our estimates and assumptions. Our estimates may change in future periods as a result of new events arising from the COVID-19 pandemic. |
Cost of revenue | Cost of revenueCost of revenue consists of expenses that are directly or closely correlated to revenue generation, including data center costs, third-party cloud-related service providers, salaries and share-based compensation for our data center operations staff and our customer service team who are directly involved in revenue generation. For the years ended December 31, 2019, 2020 and 2021 cost of revenue excludes €0.1 million, €0.1 million and €0.1 million, respectively, of amortization expense of acquired technology. For the years ended December 31, 2019, 2020 and 2021 cost of revenue excludes €4.3 million, €4.6 million and €5.0 million, respectively, of amortization expense related to internal use software and website development. |
Cash and Cash Equivalents and Restricted cash | Cash and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, consisting of money market funds, which are readily accessible mutual funds that invest in high-quality, short-term debt, and time deposit investments, with original maturities of three months or less when purchased. Restricted cash Restricted cash primarily consists of funds held as guarantees in connection with corporate leases and funds held in escrow accounts in the event of default on corporate credit card statements. The carrying value of restricted cash approximates its fair value. As of December 31, 2020 and December 31, 2021, restricted cash was €2.4 million and €0.3 million, respectively. The total balance as of December 31, 2021 is classified as other long-term assets based on the expected dates the restricted cash will be made available to the Company. |
Accounts receivable | Accounts receivable Accounts receivable are generally due within 10 to 90 days and are recorded net of an allowance for expected credit losses. We consider accounts outstanding longer than the contractual payment terms as past due. The risk characteristics we generally review when analyzing our accounts receivable pools primarily include the type of receivable, collection terms and historical or expected credit loss patterns. For each pool, we make estimates for the allowance based on the current expected credit loss ("CECL") methodology by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history continually updated for new collections data, the credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions and other factors that may affect our ability to collect from customers. The provision for estimated credit losses is recorded as general and administrative expense in our consolidated statement of operations. As disclosed in Note 17: Valuation and qualifying accounts , for the year ended December 31, 2021, we recorded approximately €0.3 million of incremental allowance for expected uncollectible amounts, including estimated future losses in consideration of the impact of COVID-19 pandemic on the economy and the Company, partially offset by €20 thousand of write-offs. Actual future bad debt could differ materially from this estimate resulting from changes in our assumptions of the duration and severity of the impact of the COVID-19 pandemic. |
Investments | Investments Our short-term investments consist of time deposit and term deposit accounts with original maturities of more than three but fewer than 12 months. Our long-term investments, classified as other long-term assets, consist of term deposits with maturity of more than one year. |
Property and equipment, net including software and website capitalization | Property and equipment, net including software and website capitalization We record property and equipment at cost, net of accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets, which is generally three Certain direct development costs associated with website and internal-use software are capitalized during the application development stage. Capitalized costs include external direct costs of services and payroll costs (including share-based compensation). The payroll costs are for employees devoting time to the software development projects principally related to website and mobile app development, including support systems, software coding, designing system interfaces and installation and testing of the software. These costs are recorded as property and equipment and are generally amortized over a period of three years beginning when the asset is ready for use. Costs incurred that are expected to result in additional features or functionality are capitalized and amortized over the estimated useful life of the enhancements, which is generally a period of three years. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as incurred. Certain acquired software licenses and implementation costs are capitalized during the implementation stage. Capitalized costs include the license fee, external direct costs of services provided in regards to the implementation and customization of the software, and internal payroll costs for employees involved with the implementation process. These costs are recorded as property and equipment and are amortized over the license term when the asset is ready for use. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as incurred. |
Leases | Leases We determine if an arrangement is a lease at inception. Our operating leases primarily comprises of office space which includes our campus building lease. The operating leases balances are included in operating lease right-of-use ("ROU") assets and operating lease liabilities on our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate as the discount rate in measuring the present value of lease payments given the rate implicit in our leases is not typically readily determinable. Estimating the incremental borrowing rate requires assessing a number of inputs including an estimated synthetic credit rating, collateral adjustments and interest rates. The operating lease ROU asset is comprised of the initial operating lease liability, adjusted for any prepaid or deferred rent payments, unamortized initial direct costs, and lease incentives received. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Payments under our operating leases are primarily fixed, however, certain of our operating lease agreements include rental payments which are adjusted periodically for inflation. We recognize these costs as variable lease costs on our consolidated statement of operations. For operating leases with a term of one year or less, we have elected to not recognize a lease liability or ROU asset on our consolidated balance sheet. Instead, we recognize the lease payments as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to our consolidated statements of operations and cash flows. We have lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as a single lease component. |
Business combinations | Business combinations We assign the value of the consideration transferred to acquire a business to the tangible assets and identifiable intangible assets acquired and liabilities assumed on the basis of their fair values at the date of acquisition. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Adjustments may be made to the preliminary purchase price allocation when facts and circumstances that existed on the date of the acquisition become known during the measurement period subsequent to the preliminary purchase price allocation, not to exceed one year from the date of acquisition. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. |
Recoverability of goodwill and indefinite-lived intangible assets | Recoverability of goodwill and indefinite-lived intangible assets Goodwill: Goodwill is assigned to our three reporting units, which correspond to our three operating segments, on the basis of their relative fair values. We assess goodwill for impairment annually as of September 30, or more frequently, if events and circumstances indicate that an impairment may have occurred. In the evaluation of goodwill for impairment, we typically first perform a qualitative assessment to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount, followed by performing a quantitative assessment by comparing the fair value of the reporting unit to the carrying value, if necessary. Periodically, we may elect to bypass the initial qualitative assessment and proceed directly to the quantitative goodwill impairment test. An impairment charge is recorded based on the excess of the reporting unit's carrying amount over its fair value. We generally base the measurement of fair value of our three reporting units on a blended analysis of the present value of future discounted cash flows and market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that we expect the reporting unit to generate in the future. Our significant estimates in the discounted cash flows model include our weighted average cost of capital, revenue growth rates, profitability of our business and long-term rate of growth. The market valuation approach indicates the fair value of the business based on a comparison of the reporting unit to comparable publicly traded firms in similar lines of business. Our significant estimates in the market approach model include identifying similar companies with comparable business factors, such as size, growth, profitability, risk and return on investment, assessing comparable revenue and operating income multiples and the control premium applied in estimating the fair value of the reporting unit. We believe the weighted use of discounted cash flows and market approach is the best method for determining the fair value of our reporting units because these are the most common valuation methodologies used within the travel and Internet industries; and the blended use of both models compensates for the inherent risks associated with either model if used on a stand-alone basis. In addition to measuring the fair value of our reporting units as described above, we consider the combined fair values of our reporting units and corporate-level assets and liabilities in relation to the Company’s total fair value of equity as of the assessment date, which assumes our fully diluted market capitalization, using either the stock price on the valuation date or the average stock price over a range of dates around the valuation date, plus an estimated acquisition premium which is based on observable transactions of comparable companies. |
Recoverability of intangible assets with definite lives and other long-lived assets | Recoverability of intangible assets with definite lives and other long-lived assetsIntangible assets with definite lives and other long-lived assets are carried at cost and are amortized on a straight-line basis over their estimated useful lives of generally less than seven years. We review the carrying value of long-lived assets or asset groups, including property and equipment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, we would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, we will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group’s carrying amount and its estimated fair value. |
Income taxes | Income taxes We record income taxes under the liability method. Deferred tax assets and liabilities reflect our estimation of the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for book and tax purposes. We determine deferred income taxes based on the differences in accounting methods and timing between financial statement and income tax reporting. Accordingly, we determine the deferred tax asset or liability for each temporary difference based on the enacted tax rates expected to be in effect when we realize the underlying items of income and expense. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as other relevant factors. We may establish a valuation allowance to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated results of operations, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates. We account for uncertain tax positions based on a two-step process of evaluating recognition and measurement criteria. The first step assesses whether the tax position is more likely than not to be sustained upon examination by the tax authority, including resolution of any appeals or litigation, based on the technical merits of the position. If the tax position meets the more likely than not criteria, the portion of the tax benefit greater than 50% likely to be realized upon settlement with the tax authority is recognized in the financial statements. Interest and penalties related to uncertain tax positions are classified in the financial statements as a component of income tax expense. Presentation of taxes in the statements of operations We present taxes that we collect from advertisers and remit to government authorities on a net basis in our consolidated statements of operations. |
Foreign currency translation and transaction gains and losses | Foreign currency translation and transaction gains and losses The consolidated financial statements have been prepared in euros, the reporting currency. Certain of our operations outside of the Eurozone use the local currency as their functional currency. We translate revenue and expense at average exchange rates during the period and assets and liabilities at the exchange rates as of the consolidated balance sheet dates and include such foreign currency translation gains and losses as a component of other comprehensive income. Due to the nature of our operations and our corporate structure, we also have subsidiaries that have transactions in foreign currencies other than their functional currency. We record transaction gains and losses in our consolidated statements of operations related to the recurring remeasurement and settlement of such transactions. |
Advertising expense | Advertising expense We incur advertising expense consisting of offline costs, including television and radio advertising expense, online advertising expense, as well as sponsorship and endorsement expense, in order to promote our brands. A significant portion of traffic from users is directed to our websites through our participation in display advertising campaigns on search engines, advertising networks, affiliate websites and social networking sites. We consider traffic acquisition costs to be indirect advertising fees. We expense the production costs associated with advertisements in the period in which the advertisement first takes place. We expense the costs of communicating the advertisement (e.g., television airtime) as incurred each time the advertisement is shown. These costs are included in selling and marketing expense in our consolidated statements of operations. |
Share-based compensation | Share-based compensation Share-based compensation expense relates to stock awards granted in connection with the Omnibus Incentive Plan, as further discussed in Note 10 - Share-based awards and other equity instruments . For the years ended December 31, 2020 and 2021, we had no awards classified as liabilities. Forfeitures are accounted for in the period that the award is forfeited. Share Options : The majority of our share options are service-based awards. We also grant awards that contain performance conditions which vest upon achievement of certain company-based targets and awards which contain market conditions which vest upon achievement of certain market-based targets, in addition to containing service conditions. The fair value of share options accounted for as equity settled transactions is measured at the grant date (or modification date, if applicable) using an appropriate valuation model, including the Black-Scholes option pricing model and, for awards that contain market-based vesting conditions, the Monte Carlo simulation pricing model. The majority of our share options vest between one Restricted Stock Units: We grant Restricted Stock Units ("RSUs"), which are stock awards entitling the holder to shares of common stock as the award vests. For RSU awards with only service-based vesting conditions, we measure the value of RSUs at fair value based on the number of shares granted and the quoted price of our common stock at the date of grant. For RSU awards which contain market conditions, we estimate the fair value using the Monte Carlo simulation model. The majority of our RSUs vest between one We amortize the fair value of service-based awards, net of actual forfeitures, as share-based compensation expense over the vesting term on a straight-line basis. Performance and Market-Based Awards. Awards with company-based performance conditions are assessed to determine the probability of the award vesting. If assessed as probable, we record compensation expense for these awards over the total performance and service period using the accelerated method. At each reporting period, we reassess the probability of achieving the performance targets, which requires judgment. In the event that actual results or updated estimates differ from our current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period in which estimates are revised, or the change in estimate will be applied prospectively depending on whether the change affects the estimate of total compensation cost to be recognized. The ultimate number of shares issued and the related compensation expense recognized will be based on a comparison of the final performance metrics to the specified targets. For awards with market conditions, the probabilities of the actual number of awards expected to vest is reflected in the grant date fair values. Compensation expense for these awards is recognized over the service period using the accelerated method. The valuation models used incorporate various assumptions including expected volatility of equity, expected term and risk-free interest rates. The expected volatility is based on historical volatility of our common stock. We use the simplified method in determining the term by using the midpoint between the vesting date and the end of the contractual term. The simplified method was used as we do not have sufficient relatable historical term data available. The share price assumption used in the model is based on our publicly traded share price on the date of grant. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive these awards, and subsequent events are not indicative of the reasonableness of our original estimates of fair value. |
Reserves available for dividend distribution | Reserves available for dividend distribution We do not at present plan to pay cash dividends on our Class A shares. Under Dutch law, we may only pay dividends to the extent that our shareholders’ equity ( eigen vermogen ) exceeds the sum of the paid-up and called-up share capital plus the reserves required to be maintained under Dutch law or by our articles of association (although we note that, presently, we are not required by our articles of association to maintain reserves in addition to those which we must maintain under Dutch law). Subject only to such restrictions, any future determination to pay dividends will be at the discretion of our management board (in some instances, subject to approval by a Founder). In making a determination to pay dividends, the management board must act in the interests of our company and its business, taking into account relevant interests of our shareholders and other factors that our management board considers relevant, including our results of operations, financial condition, and future prospects. For the years ended December 31, 2020 and 2021, our reserves restricted for dividend distribution were €188.7 million and €169.3 million, respectively. |
Fair value recognition, measurement and disclosure | Fair value recognition, measurement and disclosure The carrying amounts of cash and cash equivalents, restricted cash and short-term investments reported on our consolidated balance sheets approximate fair value as we maintain them with various high-quality financial institutions. Our accounts receivable are short-term in nature and their carrying value generally approximates fair value. We disclose the fair value of our financial instruments based on the fair value hierarchy using the following three categories: Level 1 - Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 - Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. |
Certain risks and concentration of credit risk | Certain risks and concentration of credit risk Our business is subject to certain risks and concentrations including dependence on relationships with our advertisers, dependence on third-party technology providers, and exposure to risks associated with online commerce security. Our concentration of credit risk relates to depositors holding our cash and customers with significant accounts receivable balances. Our customer base includes primarily OTAs, hotel chains and independent hotels. We perform ongoing credit evaluations of our customers and maintain allowances for potential credit losses. We generally do not require collateral or other security from our customers. Expedia Group, our controlling shareholder, and its affiliates represent 34%, 27% and 25% respectively, of revenues for the year ended December 31, 2019, 2020 and 2021 and 20% and 41% of total accounts receivable as of December 31, 2020 and 2021. Booking Holdings and its affiliates represent 40%, 44% and 54%, respectively, of revenues for the years ended December 31, 2019, 2020 and 2021 and 47% and 31%, respectively, of total accounts receivable as of December 31, 2020 and 2021. |
Contingent liabilities | Contingent liabilities From time to time, we may be involved in various claims and legal proceedings relating to claims arising out of our operations, as discussed further in Note 14: Commitments and contingencies . Periodically, and at year end, we review the status of all significant outstanding matters to assess the potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time, which can be |
Government Grants | Government Grants Government grants are recognized when there is reasonable assurance that the Company will comply with any conditions attached to the grant and the grant will be received. A government grant that compensates for expenses incurred is recognized in our consolidated statements of operations as a deduction from relevant expenses on a systematic basis in the periods in which the expenses are recognized. A government grant that becomes receivable for costs already incurred or for the purpose of giving immediate financial support to the Company, with no future related costs, is recognized as income in the period in which it becomes receivable. |
Adoption of new accounting pronouncements and Recent accounting policies not yet adopted | Adoption of new accounting pronouncements Codification Improvements. In October 2020, the FASB issued ASU 2020-10, which did not prescribe any new accounting guidance, but instead made minor improvements and clarifications on several different FASB ASC topics based on comments and suggestions made by various stakeholders. The codification improvements applicable to us were adopted effective immediately. The adoption of the new guidance did not have a material impact to our consolidated financial statements. Income Taxes. As of January 1, 2021, we have prospectively adopted ASU 2019-12, which eliminates certain exceptions in current guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The adoption of this new guidance did not have a material impact to our consolidated financial statements. Equity Method Investments . As of January 1, 2021, we have prospectively adopted ASU 2020-01, which clarifies the interaction between the accounting for investments in equity securities, equity method investments and certain derivative instruments. The adoption of this new guidance did not have a material impact to our consolidated financial statements. Recent accounting pronouncements not yet adopted Business Combinations . In October 2021, the FASB issued ASU 2021-08 which require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 instead of at fair value. The new standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statements; however, we currently do not expect a material impact. Government Assistance. In November 2021, the FASB issued ASU 2021-10 which introduces annual disclosure requirements about government grants. The new standard is effective for fiscal years beginning after December 15, 2021. Early adoption is permitted. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statements; however, we currently do not expect a material impact. |
Acquisitions and divestitures (
Acquisitions and divestitures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of assets acquired and liabilities assumed | The following table summarizes the final acquisition date fair values of the assets acquired and liabilities assumed: (in thousands) January 12, 2021 Cash and cash equivalents € 85 Prepaid expenses and other current assets 54 Property and equipment, net 1,662 Deferred income taxes 1,247 Goodwill 3,838 Intangible assets, net 675 Total Assets € 7,561 Accounts payable (121) Other liabilities (15) Net assets acquired € 7,425 |
Business acquisition pro forma information | The following unaudited pro forma information reflects our consolidated results of operations as if the acquisition had occurred on January 1, 2020. The pro forma information is not necessarily indicative of the results of operations that we would have reported had the transaction actually occurred at the beginning of the period nor is it necessarily indicative of future results. The pro forma financial information does not reflect the impact of future events that may occur after the acquisition, including, but not limited to, anticipated costs savings from synergies or other operational improvements. (in thousands) Year ended December 31, 2020 Revenue € 249,287 Net loss (247,220) |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | Financial assets measured at fair value on a recurring basis as of December 31, 2020 included the following: As of December 31, 2020 Total Level 1 Level 2 (in thousands) Assets Cash equivalents: Money market funds € 65,111 € 65,111 € — Short-term investments Term deposits 9,448 — 9,448 Total € 74,559 € 65,111 € 9,448 Financial assets measured at fair value on a recurring basis as of December 31, 2021 are classified using the fair value hierarchy in the table below: As of December 31, 2021 Total Level 1 Level 2 (in thousands) Assets Cash equivalents: Money market funds € 19,922 € 19,922 € — Other long-term assets Term deposits 1,351 — 1,351 Total € 21,273 € 19,922 € 1,351 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of prepaid expenses and other current assets | As of December 31, (in thousands) 2020 2021 Prepaid advertising € 2,297 € 5,078 Other prepaid expenses 4,132 4,968 Other assets 4,009 227 Total € 10,438 € 10,273 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | As of December 31, (in thousands) 2020 2021 Leasehold improvements € 15,295 € 6,865 Capitalized software and software development costs 22,702 26,643 Computer equipment 17,248 15,795 Furniture and fixtures 5,480 3,026 Subtotal 60,725 52,329 Less: accumulated depreciation 34,352 37,537 Construction in process 309 1,113 Property and equipment, net € 26,682 € 15,905 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of supplemental information, operating lease | Supplemental information related to operating leases was as follows: As of December 31, (in thousands) 2020 2021 Cash payments for operating leases € 5,225 € 10,468 New operating lease assets obtained in exchange for operating lease liabilities € 417 € — |
Schedule of supplemental consolidated balance sheet information, operating lease | Supplemental consolidated balance sheet information related to leases were as follows: As of December 31, (in thousands) 2020 2021 Operating lease right-of-use assets € 86,810 € 48,323 Current operating lease liabilities € 7,188 € 2,269 Long-term operating lease liabilities € 85,979 € 45,267 Total operating lease liabilities € 93,167 € 47,536 Weighted average remaining lease term 17.3 years 15.6 years Weighted average discount rate 3.9 % 3.4 % |
Lessee, operating lease, liability, maturity | Maturities of operating lease liabilities are as follows: Year ended December 31, (in thousands) 2021 2022 € 3,826 2023 5,979 2024 3,646 2025 3,630 2026 3,560 2027 and thereafter 40,639 Total lease payments 61,280 Less: imputed interest (13,744) Total € 47,536 |
Goodwill and intangible asset_2
Goodwill and intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets | The following table presents our goodwill and intangible assets as of December 31, 2020 and 2021: As of December 31, (in thousands) 2020 2021 Goodwill € 282,664 € 286,539 Intangible assets with definite lives, net 5 540 Intangible assets with indefinite lives 169,545 169,545 Total € 452,214 € 456,624 |
Schedule of goodwill | The following table presents the changes in goodwill by reporting segment: (in thousands) Developed Europe Americas Rest of World Total Balance as of January 1, 2020 € 215,310 € 192,753 € 82,527 € 490,590 Foreign exchange translation (4) 6 7 9 Impairment charge (17,568) (107,516) (82,534) (207,618) Disposals (222) (95) — (317) Balance as of December 31, 2020 € 197,516 € 85,148 € 0 € 282,664 Balance as of January 1, 2021 € 197,516 € 85,148 € 0 € 282,664 Foreign exchange translation 26 11 — 37 Impairment charge — — — — Additions 2,525 1,313 — 3,838 Balance as of December 31, 2021 € 200,067 € 86,472 € 0 € 286,539 |
Components of intangible assets with definite lives | The following table presents the components of our intangible assets with definite lives as of December 31, 2020 and 2021: December 31, 2020 December 31, 2021 (in thousands) Cost (Accumulated Amortization) Net Cost (Accumulated Amortization) Net Partner relationships 34,220 (34,220) — 34,220 (34,220) — Technology 59,789 (59,784) 5 59,789 (59,789) — Non-compete agreement 10,800 (10,800) — 10,800 (10,800) — Trademark/domain — — — 675 (135) 540 Total € 104,809 € (104,804) € 5 € 105,484 € (104,944) € 540 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring reserve rollforward | The following table presents the development of our restructuring liability for the year ended December 31, 2021. (in thousands) Employee related costs Liability as of January 1, 2020 € — 2020 restructuring charges 6,235 Cash payments (6,063) Liability as of December 31, 2020 € 172 Cash payments (172) Liability as of December 31, 2021 € — |
Share-based awards and other _2
Share-based awards and other equity instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock options activity | The following table presents a summary of our share option activity: Options Weighted Remaining Aggregate (in €) (In years) (€ in thousands) Balance as of January 1, 2019 20,693,398 5.54 17 32,050 Granted 3,932,498 0.06 17,412 Exercised 1,218,560 0.17 5,034 Cancelled 2,233,623 6.93 1,572 Balance as of December 31, 2019 21,173,713 4.79 15 19,556 Granted 8,550,753 0.06 12,359 Exercised 1,405,583 0.06 2,168 Cancelled 1,971,734 4.28 1,214 Balance as of December 31, 2020 26,347,149 3.29 12 28,356 Granted 5,979,438 0.06 20,865 Exercised 3,960,319 0.32 10,769 Cancelled 4,538,322 6.16 2,623 Balance as of December 31, 2021 23,827,946 2.64 11 30,237 Exercisable as of December 31, 2021 12,605,128 4.54 16 10,856 Vested and expected to vest after December 31, 2021 23,827,946 2.64 11 30,237 |
Schedule of RSU activity | The following table presents a summary of our restricted stock units (RSUs): RSUs Weighted Average Grant Date Fair Value Remaining (in €) (in years) Balance as of January 1, 2019 57,806 3.88 7 Granted 474,121 4.25 Vested 38,262 3.88 Cancelled 8,000 5.29 Balance as of December 31, 2019 485,665 4.22 6 Granted 1,606,140 1.13 Vested 245,687 4.30 Cancelled 221,657 2.43 Balance as of December 31, 2020 1,624,461 1.39 5 Granted 1,035,151 3.81 Vested 553,241 2.08 Cancelled 740,248 1.44 Balance as of December 31, 2021 1,366,123 2.92 6 |
Schedule of stock options valuation assumptions | The fair value of share awards granted during the years ended December 31, 2019, 2020 and 2021 were estimated at the date of grant using appropriate valuation techniques, including the Black-Scholes and Monte Carlo simulation pricing models, assuming the following weighted average assumptions: Year ended December 31, 2019 2020 2021 Risk-free interest rate (0.56) % (0.20) % (0.46) % Expected volatility 50 % 60 % 71 % Expected life (in years) 4.50 4.12 4.41 Dividend yield — % — % — % Weighted-average estimated fair value of options granted during the year € 4 € 1 € 4 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense/(benefit) | The following table summarizes our income tax expense/(benefit): Year ended December 31, (€ thousands) 2019 2020 2021 Current income tax expense/(benefit): Germany € 18,769 € (362) € 3,729 Other countries 309 117 1 Current income tax expense/(benefit) € 19,078 € (245) € 3,730 Deferred income tax expense/(benefit): Germany 2,020 (8,165) 8,914 Other countries (116) (84) (58) Deferred income tax expense/(benefit) € 1,904 € (8,249) € 8,856 Income tax expense/(benefit) € 20,982 € (8,494) € 12,586 |
Schedule of income (loss) before income tax, domestic and foreign | The following table summarizes our income/(loss) before income taxes allocated to Germany and to other countries: Year ended December 31, (€ thousands) 2019 2020 2021 Germany € 36,750 € (252,859) € 23,387 Other countries 940 (274) (97) Income/(loss) before income taxes € 37,690 € (253,133) € 23,290 |
Schedule of effective income tax rate reconciliation | A reconciliation of amounts computed by applying the German statutory income tax rate of 31.23% to income/(loss) before income taxes to total income tax expense/(benefit) is as follows: Year ended December 31, (€ thousands) 2019 2020 2021 Income/(loss) before income taxes € 37,690 € (253,133) € 23,290 Income tax expense at German tax rate 11,769 (79,041) 7,272 Foreign rate differential 100 40 17 Expected tax expense/(benefit) € 11,869 € (79,001) € 7,289 Tax effect from: Non-deductible share-based compensation € 6,211 € 4,708 € 5,390 Non-deductible corporate costs — — 121 Goodwill impairment — 64,829 — Prior period taxes 66 9 (294) Movement in valuation allowance 19 454 80 Foreign withholding taxes — 305 — Movement in uncertain tax positions 2,857 14 56 Income tax effect resulting from weekengo asset deal transaction — — 1,938 Initial recognition of tax deductible goodwill and intangibles — — (1,938) Other differences (40) 188 (56) Income tax expense/(benefit) € 20,982 € (8,494) € 12,586 |
Schedule of uncertain tax positions | Uncertain tax positions as of December 31, 2020 and 2021 were as follows: Year Ended December 31, (€ thousands) 2020 2021 Balance, beginning of year € 2,857 € 2,871 Increases to tax positions related to the current year — — Increases to tax positions related to prior years — — Interest and penalties 14 56 Balance, end of year € 2,871 € 2,927 |
Schedule of deferred tax assets and liabilities | At December 31, 2020 and 2021, the significant components of our deferred tax assets and deferred tax liabilities were as follows: Year Ended December 31, (€ thousands) 2020 2021 Deferred tax assets: Net operating loss and tax credit carryforwards € 11,840 € 5,665 Prepaid expense and other current assets 1,335 310 Property and equipment 1 — Accrued expenses and other current liabilities 26 157 Operating lease liability 28,132 14,843 Other long-term liabilities 115 47 Other — — Deferred tax assets (gross) € 41,449 € 21,022 Less valuation allowance (536) (1,388) Subtotal € 40,913 € 19,634 Offsetting (40,912) (19,608) Deferred tax assets € 1 € 26 Deferred tax liabilities: Cash and cash equivalents € — € 722 Intangible assets, net 52,928 51,257 Property and equipment 2,875 2,334 Operating lease right-of-use assets 27,106 15,089 Other 179 16 Subtotal € 83,088 € 69,418 Offsetting (40,912) (19,608) Deferred tax liabilities € 42,176 € 49,810 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The following table presents our basic and diluted earnings per share: Year Ended December 31, (€ thousands, except per share data) 2019 2020 2021 Numerator: Net income/(loss) € 17,161 € (245,378) € 10,704 Denominator: Weighted average shares of Class A and Class B common stock outstanding: Basic 351,991 353,338 357,525 Diluted 356,738 353,338 367,240 Net income/(loss) per share: Basic € 0.05 € (0.69) € 0.03 Diluted € 0.05 € (0.69) € 0.03 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term purchase commitment | Commitments and obligations as of December 31, 2021 were as follows: By Period (in thousands) Total Less than 1 to 3 years 3 to 5 years More than Purchase obligations € 48,818 € 19,165 € 29,653 € — € — |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following tables present our segment information for the years ended December 31, 2019, 2020 and 2021. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers. Year Ended December 31, 2019 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 347,094 € 305,061 € 171,469 € — € 823,624 Subscription revenue — — — 12,152 12,152 Other revenue — — — 2,841 2,841 Total revenue € 347,094 € 305,061 € 171,469 € 14,993 € 838,617 Advertising spend 230,291 233,949 152,465 — 616,705 ROAS contribution € 116,803 € 71,112 € 19,004 € 14,993 € 221,912 Costs and expenses: Cost of revenue, including related party, excluding amortization 9,159 Other selling and marketing, including related party (1) 47,450 Technology and content, including related party 69,924 General and administrative, including related party 55,543 Amortization of intangible assets 1,685 Operating income € 38,151 Other income/(expense) Interest expense (33) Other, net (428) Total other income/(expense), net € (461) Income before income taxes € 37,690 Expense/(benefit) for income taxes 20,982 Income before equity method investment € 16,708 Income from equity method investment 453 Net income € 17,161 (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2020 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 102,899 € 89,341 € 46,125 € — € 238,365 Subscription revenue — — — 7,657 7,657 Other revenue — — — 2,899 2,899 Total revenue € 102,899 € 89,341 € 46,125 € 10,556 € 248,921 Advertising spend 60,784 56,979 32,211 — 149,974 ROAS contribution € 42,115 € 32,362 € 13,914 € 10,556 € 98,947 Costs and expenses: Cost of revenue, including related party, excluding amortization 10,133 Other selling and marketing, including related party (1) 28,281 Technology and content, including related party 64,258 General and administrative, including related party 40,935 Amortization of intangible assets 373 Impairment of goodwill 207,618 Operating loss € (252,651) Other income/(expense) Interest expense (270) Other, net (212) Total other income/(expense), net € (482) Loss before income taxes € (253,133) Expense/(benefit) for income taxes (8,494) Loss before equity method investment € (244,639) Loss from equity method investment (739) Net loss € (245,378) (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2021 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 163,700 € 140,143 € 45,599 € — € 349,442 Subscription revenue — — — 3,914 3,914 Other revenue — — — 8,109 8,109 Total revenue € 163,700 € 140,143 € 45,599 € 12,023 € 361,465 Advertising spend 106,984 94,096 22,470 — 223,550 ROAS contribution € 56,716 € 46,047 € 23,129 € 12,023 € 137,915 Costs and expenses: Cost of revenue, including related party, excluding amortization 11,500 Other selling and marketing, including related party (1) 25,646 Technology and content, including related party 52,374 General and administrative, including related party 38,208 Amortization of intangible assets 136 Operating income € 10,051 Other income/(expense) Interest expense (389) Other, net 13,628 Total other income/(expense), net € 13,239 Income before income taxes € 23,290 Expense/(benefit) for income taxes 12,586 Income before equity method investment € 10,704 Net income € 10,704 (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. |
Schedule of revenue from external customers and long-lived assets, by geographical areas | The following table presents revenue by geographic area for the years ended December 31, 2019, 2020 and 2021. Referral revenue was allocated by country using the same methodology as the allocation of segment revenue, while non-referral revenue was allocated either based upon the location of the customer using the service, or using the same methodology as the allocation of segment revenue, depending on the nature of the non-referral revenue stream. Year ended December 31, (in thousands) 2019 2020 2021 Total revenues United States € 192,526 € 57,406 € 102,687 Germany 68,491 27,491 42,301 United Kingdom 85,284 26,637 41,389 All other countries (1) 492,316 137,387 175,088 € 838,617 € 248,921 € 361,465 (1) Includes a portion of Corporate & Eliminations The following table presents property and equipment, net for Germany and all other countries, as of December 31, 2020 and 2021: (€ thousands) Years ended December 31, 2020 2021 Property and equipment, net: Germany € 26,289 € 15,817 All other countries 393 88 € 26,682 € 15,905 |
Valuation and qualifying acco_2
Valuation and qualifying accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and qualifying accounts | The following table presents the changes in our valuation and qualifying accounts not disclosed elsewhere in these financial statements. (€ thousands) Balance at Beginning of Period Charges to Earnings Deductions Balance at End of Period 2019 Allowance for doubtful accounts € 250 € 754 € (930) € 74 2020 Allowance for expected credit losses 74 656 (382) 348 2021 Allowance for expected credit losses 348 330 (20) 658 |
Organization and basis of pre_2
Organization and basis of presentation (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Common Class A | |
Subsidiary, Sale of Stock [Line Items] | |
Common stock, voting rights per share | 1 |
Common Class B | |
Subsidiary, Sale of Stock [Line Items] | |
Common stock, voting rights per share | 10 |
Trivago N.V. | Expedia | |
Subsidiary, Sale of Stock [Line Items] | |
Ownership percentage by parent | 58.30% |
Parent voting interest, percentage | 76.90% |
Trivago N.V. | Messrs. Schrömgens, Vinnemeier and Siewert | |
Subsidiary, Sale of Stock [Line Items] | |
Ownership percentage by noncontrolling owners | 14.80% |
Non-controlling interest, voting percentage | 19.50% |
Significant accounting polici_3
Significant accounting policies (Details) € in Thousands | 12 Months Ended | |||
Dec. 31, 2021EUR (€)segmentreporting_unitd | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | ||
Significant Accounting Policies [Line Items] | ||||
Deferred revenue | € 2,174 | € 2,750 | € 5,600 | |
Revenue recognized that was included in beginning deferred revenue balance | 2,800 | 5,200 | ||
Amortization of intangible assets | [1] | 136 | 373 | 1,685 |
Restricted cash | 300 | 2,400 | ||
Incremental allowance for uncollectible amounts | 255 | 656 | 754 | |
Allowance for uncollectible amount, write-offs | € 20 | |||
Number of reporting units | reporting_unit | 3 | |||
Number of operating segments | segment | 3 | |||
Reserves restricted for dividend distribution | € 169,300 | 188,700 | ||
Grant received from German government | 13,628 | € (212) | € (428) | |
Grant | ||||
Significant Accounting Policies [Line Items] | ||||
Grant received from German government | € 12,000 | |||
Customer Concentration Risk | Expedia | Revenue | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 25.00% | 27.00% | 34.00% | |
Customer Concentration Risk | Expedia | Accounts Receivable | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 41.00% | 20.00% | ||
Customer Concentration Risk | Booking Holdings | Revenue | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 54.00% | 44.00% | 40.00% | |
Customer Concentration Risk | Booking Holdings | Accounts Receivable | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 31.00% | 47.00% | ||
Software Development Costs | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment useful life | 3 years | |||
Software Enhancement Costs | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment useful life | 3 years | |||
Acquired technology | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization of intangible assets | € 136 | € 84 | € 143 | |
Internal use software and website development costs | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization of intangible assets | € 5,000 | € 4,600 | € 4,300 | |
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Performance obligation payment terms | 10 days | |||
Accounts receivable due, number of days | d | 10 | |||
Minimum | Stock Option | ||||
Significant Accounting Policies [Line Items] | ||||
Award vesting period (in years) | 1 year | |||
Minimum | RSUs | ||||
Significant Accounting Policies [Line Items] | ||||
Award vesting period (in years) | 1 year | |||
Minimum | Computer equipment, capitalized software and software development cost and furniture and other equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment useful life | 3 years | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Performance obligation payment terms | 90 days | |||
Accounts receivable due, number of days | d | 90 | |||
Intangible asset, useful life | 7 years | |||
Maximum | Stock Option | ||||
Significant Accounting Policies [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Maximum | RSUs | ||||
Significant Accounting Policies [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Maximum | Computer equipment, capitalized software and software development cost and furniture and other equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment useful life | 8 years | |||
[1] | (2) Includes amortization as follows: Amortization of internal use software costs included in € 360 € 188 € 98 Amortization of internal use software and website development costs included in technology and content 3,239 3,926 4,566 Amortization of internal use software costs included in general and administrative 656 491 313 Amortization of acquired technology included in amortization of intangible assets 143 84 136 |
Acquisitions and divestitures -
Acquisitions and divestitures - Acquisitions (Details) - EUR (€) € in Thousands | Jan. 12, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||||
Goodwill | € 282,664 | € 286,539 | € 286,539 | € 282,664 | € 490,590 | |
Developed Europe | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 197,516 | 200,067 | 200,067 | 197,516 | 215,310 | |
Americas | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 85,148 | 86,472 | 86,472 | 85,148 | € 192,753 | |
weekengo Gmbh | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interest acquired | 100.00% | |||||
Consideration for shares acquired | € 6,700 | |||||
Consideration for domain and trademark acquired | 700 | |||||
Payments to acquire businesses | 7,400 | € 3,000 | ||||
Amount held in Escrow | € 500 | |||||
Escrow deposit release period | 1 year | |||||
Increase in deferred tax assets, measurement period adjustment | 1,500 | |||||
Deferred tax liabilities, measurement period adjustment | 300 | |||||
Decrease in goodwill, measurement period adjustment | € 1,200 | |||||
Consideration for property and equipment acquired | € 1,662 | |||||
Goodwill | 3,838 | |||||
Revenue of acquiree | 200 | |||||
Operating losses of acquiree | € 2,300 | |||||
Revenue | 249,287 | |||||
Intangible assets, net | 675 | |||||
weekengo Gmbh | Accounting Policies, Fair Value Adjustments On Intangible Assets And Acquisition Related Costs | ||||||
Business Acquisition [Line Items] | ||||||
Revenue | € (600) | |||||
weekengo Gmbh | Developed Europe | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 2,500 | |||||
weekengo Gmbh | Americas | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 1,300 | |||||
weekengo Gmbh | Capitalized Software And Software Development Costs | ||||||
Business Acquisition [Line Items] | ||||||
Consideration for property and equipment acquired | € 1,600 | |||||
Estimated useful lives, property and equipment, | 3 years | |||||
weekengo Gmbh | Trademark and Domain | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful life, finite-lived intangible assets acquired | 5 years | |||||
Intangible assets, net | € 700 |
Acquisitions and divestitures_2
Acquisitions and divestitures - Summary of assets acquired and liabilities assumed (Details) - EUR (€) € in Thousands | Dec. 31, 2021 | Jan. 12, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | € 286,539 | € 282,664 | € 490,590 | |
weekengo Gmbh | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | € 85 | |||
Prepaid expenses and other current assets | 54 | |||
Property and equipment, net | 1,662 | |||
Deferred income taxes | 1,247 | |||
Goodwill | 3,838 | |||
Intangible assets, net | 675 | |||
Total Assets | 7,561 | |||
Accounts payable | (121) | |||
Other liabilities | (15) | |||
Net assets acquired | € 7,425 |
Acquisitions and divestitures_3
Acquisitions and divestitures - Summary of pro forma information (Details) - weekengo Gmbh € in Thousands | 12 Months Ended |
Dec. 31, 2020EUR (€) | |
Business Acquisition [Line Items] | |
Revenue | € 249,287 |
Net loss | € (247,220) |
Acquisitions and divestitures_4
Acquisitions and divestitures - Divestitures (Details) - EUR (€) € in Thousands | Jan. 28, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Derecognised goodwill | € 317 | ||
myhotelshop | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Ownership percentage by noncontrolling owners | 49.00% | ||
myhotelshop | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Derecognition of equity method investment | € 70 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Palma | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Ownership interest sold | 100.00% | ||
Consideration amount for sale | € 1,300 | ||
Impairment loss | € 500 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | base7 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration amount for sale | 800 | ||
Gain (loss) on disposal | 500 | ||
Derecognised goodwill | 300 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | myhotelshop | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration amount for sale | 70 | ||
Gain (loss) on disposal | (1,100) | ||
Due from related parties | € 1,000 |
Fair value measurement (Details
Fair value measurement (Details) - Recurring - EUR (€) € in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash equivalents: | ||
Money market funds | € 19,922 | € 65,111 |
Short-term investments | ||
Term deposits | 9,448 | |
Other long-term assets | ||
Term deposits | 1,351 | |
Total | 21,273 | 74,559 |
Level 1 | ||
Cash equivalents: | ||
Money market funds | 19,922 | 65,111 |
Short-term investments | ||
Term deposits | 0 | |
Other long-term assets | ||
Term deposits | 0 | |
Total | 19,922 | 65,111 |
Level 2 | ||
Cash equivalents: | ||
Money market funds | 0 | 0 |
Short-term investments | ||
Term deposits | 9,448 | |
Other long-term assets | ||
Term deposits | 1,351 | |
Total | € 1,351 | € 9,448 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets - Summary of prepaid expenses and other current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid advertising | € 5,078 | € 2,297 |
Other prepaid expenses | 4,968 | 4,132 |
Other assets | 227 | 4,009 |
Total | € 10,273 | € 10,438 |
Prepaid expenses and other cu_4
Prepaid expenses and other current assets - Narratives (Details) - EUR (€) € in Thousands | Jan. 12, 2021 | Dec. 31, 2020 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Contractual installment payment | € 2,297 | € 5,078 | |
Marketing Sponsorship Agreement | |||
Business Acquisition [Line Items] | |||
Contractual installment payment | € 3,600 | ||
weekengo Gmbh | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses | € 7,400 | € 3,000 |
Property and equipment, net (De
Property and equipment, net (Details) - EUR (€) € in Thousands | Jan. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Less: accumulated depreciation | € 37,537 | € 34,352 | |
Property and equipment, net | 15,905 | 26,682 | |
Net book value of long-lived assets transferred | € 7,500 | ||
Gain on sale of fixed assets | € 200 | ||
Depreciable Property, Plant And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 52,329 | 60,725 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,865 | 15,295 | |
Capitalized software and software development costs | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 26,643 | 22,702 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 15,795 | 17,248 | |
Property and equipment, net | 1,800 | 3,300 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,026 | 5,480 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,113 | 309 | |
Building and leasehold improvements with asset retirement obligations | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 100 | 300 | |
Less: accumulated depreciation | 6 | 39 | |
Software Development Costs | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | € 6,900 | € 7,200 |
Leases (Details)
Leases (Details) - EUR (€) € in Thousands | Jan. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||||
Option to extend term | 10 years | |||
Option to terminate period | 1 year | |||
Operating lease cost | € 5,100 | € 8,200 | ||
Variable lease costs | 400 | |||
Sublease income | 100 | 900 | € 1,000 | |
Amount to be received for settlement of claims | € 2,600 | |||
Gain on lease modification | 1,200 | |||
Amount to be paid for settlement of claims | 500 | |||
Operating lease right-of-use assets | 34,700 | 48,323 | 86,810 | |
Operating lease liability | 36,400 | 47,536 | 93,167 | |
Cash payments for operating leases | 10,468 | 5,225 | ||
New operating lease assets obtained in exchange for operating lease liabilities | 0 | 417 | ||
Current operating lease liabilities | 2,269 | 7,188 | ||
Long-term operating lease liabilities | 45,267 | 85,979 | ||
Total operating lease liabilities | 36,400 | € 47,536 | € 93,167 | |
Weighted average remaining lease term | 15 years 7 months 6 days | 17 years 3 months 18 days | ||
Weighted average discount rate | 3.40% | 3.90% | ||
2022 | € 3,826 | |||
2023 | 5,979 | |||
2024 | 3,646 | |||
2025 | 3,630 | |||
2026 | 3,560 | |||
2027 and thereafter | 40,639 | |||
Lessee, Operating Lease, Liability, Payments, Due, Total | 61,280 | |||
Less: imputed interest | € (13,744) | |||
Termination, January 1 2021 | ||||
Lessee, Lease, Description [Line Items] | ||||
Accrued penalty | 6,700 | |||
Termination, May 31, 2023 | ||||
Lessee, Lease, Description [Line Items] | ||||
Accrued penalty | € 2,300 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term | 16 years |
Goodwill and intangible asset_3
Goodwill and intangible assets, net - Summary (Details) - EUR (€) € in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | € 286,539 | € 282,664 | € 490,590 |
Intangible assets with definite lives, net | 540 | 5 | |
Intangible assets with indefinite lives | 169,545 | 169,545 | |
Total | € 456,624 | € 452,214 |
Goodwill and intangible asset_4
Goodwill and intangible assets, net - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Goodwill [Line Items] | ||||
Goodwill impairment loss | € 0 | € 207,618 | € 0 | |
Accumulated impairment losses of goodwill | 207,600 | 207,600 | ||
Accumulated impairment losses of indefinite-lived intangible assets | 0 | 0 | ||
Amortization of intangible assets | [1] | 136 | 373 | € 1,685 |
2022 | 135 | |||
2023 | 135 | |||
2024 | 135 | |||
2025 | € 135 | |||
Developed Europe | ||||
Goodwill [Line Items] | ||||
Goodwill impairment loss | 17,600 | |||
Americas | ||||
Goodwill [Line Items] | ||||
Goodwill impairment loss | 107,500 | |||
Rest of World | ||||
Goodwill [Line Items] | ||||
Goodwill impairment loss | € 82,500 | |||
[1] | (2) Includes amortization as follows: Amortization of internal use software costs included in € 360 € 188 € 98 Amortization of internal use software and website development costs included in technology and content 3,239 3,926 4,566 Amortization of internal use software costs included in general and administrative 656 491 313 Amortization of acquired technology included in amortization of intangible assets 143 84 136 |
Goodwill and intangible asset_5
Goodwill and intangible assets, net - Goodwill rollforward (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | € 282,664 | € 490,590 | |
Foreign exchange translation | 37 | 9 | |
Impairment charge | 0 | (207,618) | € 0 |
Disposals | (317) | ||
Additions | 3,838 | ||
Goodwill, ending balance | 286,539 | 282,664 | 490,590 |
Developed Europe | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 197,516 | 215,310 | |
Foreign exchange translation | 26 | (4) | |
Impairment charge | 0 | (17,568) | |
Disposals | (222) | ||
Additions | 2,525 | ||
Goodwill, ending balance | 200,067 | 197,516 | 215,310 |
Americas | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 85,148 | 192,753 | |
Foreign exchange translation | 11 | 6 | |
Impairment charge | 0 | (107,516) | |
Disposals | (95) | ||
Additions | 1,313 | ||
Goodwill, ending balance | 86,472 | 85,148 | 192,753 |
Rest of World | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 0 | 82,527 | |
Foreign exchange translation | 0 | 7 | |
Impairment charge | 0 | (82,534) | |
Disposals | 0 | ||
Additions | 0 | ||
Goodwill, ending balance | € 0 | € 0 | € 82,527 |
Goodwill and intangible asset_6
Goodwill and intangible assets, net - Definite lived intangible assets (Details) - EUR (€) € in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | € 105,484 | € 104,809 |
(Accumulated Amortization) | (104,944) | (104,804) |
Intangible assets with definite lives, net | 540 | 5 |
Partner relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 34,220 | 34,220 |
(Accumulated Amortization) | (34,220) | (34,220) |
Intangible assets with definite lives, net | 0 | 0 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 59,789 | 59,789 |
(Accumulated Amortization) | (59,789) | (59,784) |
Intangible assets with definite lives, net | 0 | 5 |
Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 10,800 | 10,800 |
(Accumulated Amortization) | (10,800) | (10,800) |
Intangible assets with definite lives, net | 0 | 0 |
Trademark/domain | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 675 | 0 |
(Accumulated Amortization) | (135) | 0 |
Intangible assets with definite lives, net | € 540 | € 0 |
Goodwill and intangible asset_7
Goodwill and intangible assets, net - Future amortization (Details) € in Thousands | Dec. 31, 2021EUR (€) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | € 135 |
2023 | 135 |
2024 | 135 |
2025 | € 135 |
Restructuring - Narratives (Det
Restructuring - Narratives (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | € 0 | € 6.2 |
Restructuring charges, included in accrued expenses and other liabilities | 0.2 | |
Selling and Marketing Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.8 | |
Technology and content expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2.9 | |
General and Administrative Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | € 1.5 |
Restructuring - Roll forward (D
Restructuring - Roll forward (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
2020 restructuring charges | € 0 | € 6,200 |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 172 | 0 |
2020 restructuring charges | 6,235 | |
Cash payments | (172) | (6,063) |
Liability, ending balance | € 0 | € 172 |
Share-based awards and other _3
Share-based awards and other equity instruments - Narrative (Details) | Oct. 22, 2020EUR (€)granteeshares | Dec. 31, 2021EUR (€)shares | Dec. 31, 2020EUR (€)shares | Dec. 31, 2019EUR (€) | Dec. 31, 2016member |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of awards affected, plan modification (in shares) | shares | 3,580,049 | ||||
Number of grantees affected, plan modification | grantee | 3 | ||||
Incremental compensation expense, plan modification | € 1,000,000 | ||||
Share-based compensation | € 17,300,000 | € 15,100,000 | € 19,900,000 | ||
Income tax benefit related to share-based compensation expense | 0 | 0 | 0 | ||
Proceeds from exercise of option awards | 1,270,000 | € 87,000 | € 202,000 | ||
Unrecognized share-based compensation expense | € 18,400,000 | ||||
Unrecognized share-based compensation expense, period for recognition | 1 year 7 months 6 days | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment award, term | 10 years | ||||
2016 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant (in shares) | shares | 59,635,698 | 34,711,009 | |||
Number of supervisory board in plan administration committee | member | 2 | ||||
Share-based payment award, term | 10 years | ||||
Number of shares awarded (in shares) | shares | 7,014,589 | 10,156,893 |
Share-based awards and other _4
Share-based awards and other equity instruments - Stock options activities (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | ||||
Beginning balance (in shares) | 26,347,149 | 21,173,713 | 20,693,398 | |
Granted (in shares) | 5,979,438 | 8,550,753 | 3,932,498 | |
Exercised (in share) | 3,960,319 | 1,405,583 | 1,218,560 | |
Canceled (in shares) | 4,538,322 | 1,971,734 | 2,233,623 | |
Ending balance (in shares) | 23,827,946 | 26,347,149 | 21,173,713 | 20,693,398 |
Exercisable (in shares) | 12,605,128 | |||
Vested and expected to vest (in shares) | 23,827,946 | |||
Weighted average exercise price | ||||
Beginning balance, Weighted average exercise price (in EUR per share) | € 3.29 | € 4.79 | € 5.54 | |
Granted, Weighted average exercise price (in EUR per share) | 0.06 | 0.06 | 0.06 | |
Exercised, Weighted average exercise price (in EUR per share) | 0.32 | 0.06 | 0.17 | |
Canceled, Weighted average exercise price (in EUR per share) | 6.16 | 4.28 | 6.93 | |
Ending balance, Weighted average exercise price (in EUR per share) | 2.64 | € 3.29 | € 4.79 | € 5.54 |
Exercisable, Weighted average exercise price (in EUR per share) | 4.54 | |||
Vested and expected to vest, Weighted average exercise price (in EUR per share) | € 2.64 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Outstanding, Remaining contractual term (in years) | 11 years | 12 years | 15 years | 17 years |
Exercisable, Remaining contractual term (in years) | 16 years | |||
Vested and expected to vest after, Remaining contractual life (in years) | 11 years | |||
Outstanding, Aggregate intrinsic value | € 28,356 | € 19,556 | € 32,050 | |
Granted, Aggregate intrinsic value | 20,865 | 12,359 | 17,412 | |
Exercised, Aggregate intrinsic value | 10,769 | 2,168 | 5,034 | |
Canceled, Aggregate intrinsic value | 2,623 | 1,214 | 1,572 | |
Outstanding, Aggregate intrinsic value | 30,237 | € 28,356 | € 19,556 | € 32,050 |
Exercisable, Aggregate intrinsic value | 10,856 | |||
Vested and expected to vest, Aggregate intrinsic value | € 30,237 |
Share-based awards and other _5
Share-based awards and other equity instruments - RSUs activity (Details) - RSUs - € / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RSUs | ||||
Beginning balance (in shares) | 1,624,461 | 485,665 | 57,806 | |
Granted (in shares) | 1,035,151 | 1,606,140 | 474,121 | |
Vested (in shares) | 553,241 | 245,687 | 38,262 | |
Cancelled (in shares) | 740,248 | 221,657 | 8,000 | |
Ending balance (in shares) | 1,366,123 | 1,624,461 | 485,665 | 57,806 |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in EUR per share) | € 1.39 | € 4.22 | € 3.88 | |
Granted (in EUR per share) | 3.81 | 1.13 | 4.25 | |
Vested (in EUR per share) | 2.08 | 4.30 | 3.88 | |
Cancelled (in EUR per share) | 1.44 | 2.43 | 5.29 | |
Ending balance (in EUR per share) | € 2.92 | € 1.39 | € 4.22 | € 3.88 |
Remaining contractual life | 6 years | 5 years | 6 years | 7 years |
Share-based awards and other _6
Share-based awards and other equity instruments - Stock options fair value assumptions (Details) - € / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | (0.46%) | (0.20%) | (0.56%) |
Expected volatility | 71.00% | 60.00% | 50.00% |
Expected life (in years) | 4 years 4 months 28 days | 4 years 1 month 13 days | 4 years 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of options granted during the year (in EUR per share) | € 4 | € 1 | € 4 |
Income taxes - Schedule of inco
Income taxes - Schedule of income tax expense/(benefit) (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax expense/(benefit): | |||
Germany | € 3,729 | € (362) | € 18,769 |
Other countries | 1 | 117 | 309 |
Current income tax expense/(benefit) | 3,730 | (245) | 19,078 |
Deferred income tax expense/(benefit): | |||
Germany | 8,914 | (8,165) | 2,020 |
Other countries | (58) | (84) | (116) |
Deferred income tax expense/(benefit) | 8,856 | (8,249) | 1,904 |
Income tax expense/(benefit) | € 12,586 | € (8,494) | € 20,982 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2021EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |
Operating Loss Carryforwards [Line Items] | |||
Statutory income tax rate, percent | 31.23% | 31.23% | 31.23% |
Income (loss) before income taxes | € 23,290 | € (253,133) | € 37,690 |
Effective tax rate | 54.00% | 3.40% | 55.70% |
Share-based compensation | € 17,300 | € 15,100 | € 19,900 |
Impact of non-deductible share-based compensation on effective tax rate | 23.10% | (1.90%) | 16.50% |
Goodwill impairment loss | € 207,600 | ||
Impact of non-deductible impairment expense on goodwill on effective tax rate | (25.60%) | ||
Income tax effect resulting from weekengo asset deal transaction | € 1,938 | € 0 | € 0 |
Current tax expense | 3,730 | (245) | € 19,078 |
NOLs carryforwards | 5,665 | 11,840 | |
Decrease in NOL | 6,100 | ||
Net operating loss carryforwards | 1,400 | ||
Increase in valuation allowance | 900 | ||
Undistributed earnings of foreign subsidiaries | 1,700 | € 100 | |
Undistributed earnings in domestic subsidiaries | € 10 | ||
German | |||
Operating Loss Carryforwards [Line Items] | |||
Undistributed earnings in domestic subsidiaries percentage | 0.05 | ||
Percentage of tax exempt capital gains on sale of participations | 0.95 | ||
weekengo Gmbh | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax expense | € 1,300 | ||
Current tax expense | 600 | ||
Increase in valuation allowance | € 800 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of German statutory income tax rate to effective income tax rate (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Germany | € 23,387 | € (252,859) | € 36,750 |
Other countries | (97) | (274) | 940 |
Income/(loss) before income taxes | 23,290 | (253,133) | 37,690 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense at German tax rate | 7,272 | (79,041) | 11,769 |
Foreign rate differential | 17 | 40 | 100 |
Expected tax expense/(benefit) | 7,289 | (79,001) | 11,869 |
Tax effect from: | |||
Non-deductible share-based compensation | 5,390 | 4,708 | 6,211 |
Non-deductible corporate costs | 121 | 0 | 0 |
Goodwill impairment | 0 | 64,829 | 0 |
Prior period taxes | (294) | 9 | 66 |
Movement in valuation allowance | 80 | 454 | 19 |
Foreign withholding taxes | 0 | 305 | 0 |
Movement in uncertain tax positions | 56 | 14 | 2,857 |
Income tax effect resulting from weekengo asset deal transaction | 1,938 | 0 | 0 |
Initial recognition of tax deductible goodwill and intangibles | (1,938) | 0 | 0 |
Other differences | (56) | 188 | (40) |
Income tax expense/(benefit) | € 12,586 | € (8,494) | € 20,982 |
Income taxes - Uncertain tax po
Income taxes - Uncertain tax positions (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | € 2,871 | € 2,857 |
Increases to tax positions related to the current year | 0 | 0 |
Increases to tax positions related to prior years | 0 | 0 |
Interest and penalties | 56 | 14 |
Balance, end of year | € 2,927 | € 2,871 |
Income taxes - Deferred income
Income taxes - Deferred income taxes (Details) - EUR (€) € in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss and tax credit carryforwards | € 5,665 | € 11,840 |
Prepaid expense and other current assets | 310 | 1,335 |
Property and equipment | 0 | 1 |
Accrued expenses and other current liabilities | 157 | 26 |
Operating lease liability | 14,843 | 28,132 |
Other long-term liabilities | 47 | 115 |
Other | 0 | 0 |
Deferred tax assets (gross) | 21,022 | 41,449 |
Less valuation allowance | (1,388) | (536) |
Subtotal | 19,634 | 40,913 |
Offsetting | (19,608) | (40,912) |
Deferred tax assets | 26 | 1 |
Deferred tax liabilities: | ||
Cash and cash equivalents | 722 | 0 |
Intangible assets, net | 51,257 | 52,928 |
Property and equipment | 2,334 | 2,875 |
Operating lease right-of-use assets | 15,089 | 27,106 |
Other | 16 | 179 |
Subtotal | 69,418 | 83,088 |
Offsetting | (19,608) | (40,912) |
Deferred tax liabilities | € 49,810 | € 42,176 |
Stockholders' equity (Details)
Stockholders' equity (Details) | 12 Months Ended | ||
Dec. 31, 2021€ / sharesshares | Dec. 31, 2020€ / sharesshares | Dec. 31, 2019shares | |
Common Class A | |||
Class of Stock [Line Items] | |||
Common stock, shares outstanding (in shares) | 96,704,815 | 55,967,976 | |
Class common stock, par value (in EUR per ADS) | € / shares | € 0.06 | € 0.06 | |
Common stock, voting rights per share | 1 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Common stock, shares outstanding (in shares) | 261,962,688 | 298,187,967 | |
Common stock, conversion ratio | 1 | 1 | |
Shares converted (in shares) | 36,225,279 | 3,500,000 | 7,000,000 |
Class common stock, par value (in EUR per ADS) | € / shares | € 0.60 | € 0.60 | |
Common stock, voting rights per share | 10 |
Earnings per share (Details)
Earnings per share (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income/(loss) | € 10,704 | € (245,378) | € 17,161 |
Denominator: | |||
Weighted average shares of Class A and Class B common stock outstanding - basic (in shares) | 357,525,000 | 353,338,000 | 351,991,000 |
Weighted average shares of Class A and Class B common stock outstanding - diluted (in shares) | 367,240,000 | 353,338,000 | 356,738,000 |
Net income/(loss) per share: | |||
Net income/(loss) per share, Basic (in EUR per share) | € 0.03 | € (0.69) | € 0.05 |
Net income/(loss) per share, Diluted (in EUR per share) | € 0.03 | € (0.69) | € 0.05 |
Commitments and contingencies_2
Commitments and contingencies (Details) € in Thousands | Dec. 31, 2021EUR (€) |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Total | € 48,818 |
Less than 1 year | 19,165 |
1 to 3 years | 29,653 |
3 to 5 years | 0 |
More than 5 years | € 0 |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) - Australian Competition and Consumer Commission (ACCC) - Pending Litigation $ in Millions | Oct. 19, 2021AUD ($) |
Loss Contingencies [Line Items] | |
Penalty proposed by ACCC | $ 90 |
Penalty proposed | 15 |
Provision for penalty | $ 15 |
Related party transactions (Det
Related party transactions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Revenue from related party | € 91,355 | € 67,430 | € 284,571 |
Accounts receivable, related party | 16,506 | 2,969 | |
myhotelshop | |||
Related Party Transaction [Line Items] | |||
Derecognition of equity method investment | € 70 | ||
Myhotelshop N.V. | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | € 1,100 | € 2,800 | |
Expedia | Revenue | Customer Concentration Risk | |||
Related Party Transaction [Line Items] | |||
Concentration risk, percentage | 25.00% | 27.00% | 34.00% |
Principal owner | Expedia | |||
Related Party Transaction [Line Items] | |||
Revenue from related party | € 91,300 | € 66,400 | € 281,800 |
Other operating expenses from related party | 200 | 200 | 800 |
Accounts receivable, related party | € 16,400 | 2,900 | |
Principal owner | Expedia | Data Hosting Services Agreement | |||
Related Party Transaction [Line Items] | |||
Termination notice period | 30 days | ||
Expenses to related party | 45 | ||
Principal owner | Expedia | Services and Support Agreement | |||
Related Party Transaction [Line Items] | |||
Termination notice period | 90 days | ||
Expenses to related party | € 200 | € 300 | € 800 |
Minimum | Principal owner | Expedia | |||
Related Party Transaction [Line Items] | |||
Prior notice period on customary commercial terms | 3 days | ||
Maximum | Principal owner | Expedia | |||
Related Party Transaction [Line Items] | |||
Prior notice period on customary commercial terms | 7 days |
Segment information - Narrative
Segment information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Number of operating segments | 3 |
Segment information - Schedule
Segment information - Schedule of segment information (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | € 361,465 | € 248,921 | € 838,617 | |
Other revenue | 8,109 | 2,899 | 2,841 | |
Advertising spend | 223,550 | 149,974 | 616,705 | |
ROAS contribution | 137,915 | 98,947 | 221,912 | |
Costs and expenses: | ||||
Cost of revenue, including related party, excluding amortization | [1],[2] | 11,500 | 10,133 | 9,159 |
Other selling and marketing, including related party | 25,646 | 28,281 | 47,450 | |
Technology and content, including related party | [1],[2],[3] | 52,374 | 64,258 | 69,924 |
General and administrative, including related party | [1],[2],[3] | 38,208 | 40,935 | 55,543 |
Amortization of intangible assets | [3] | 136 | 373 | 1,685 |
Impairment of goodwill | 0 | 207,618 | 0 | |
Operating income/(loss) | 10,051 | (252,651) | 38,151 | |
Other income/(expense) | ||||
Interest expense | (389) | (270) | (33) | |
Other, net | 13,628 | (212) | (428) | |
Total other income/(expense), net | 13,239 | (482) | (461) | |
Income/(loss) before income taxes | 23,290 | (253,133) | 37,690 | |
Expense/(benefit) for income taxes | 12,586 | (8,494) | 20,982 | |
Income/(loss) before equity method investment | 10,704 | (244,639) | 16,708 | |
Income/(loss) from equity method investment | 0 | (739) | 453 | |
Net income/(loss) | 10,704 | (245,378) | 17,161 | |
Developed Europe | ||||
Costs and expenses: | ||||
Impairment of goodwill | 0 | 17,568 | ||
Americas | ||||
Costs and expenses: | ||||
Impairment of goodwill | 0 | 107,516 | ||
Rest of World | ||||
Costs and expenses: | ||||
Impairment of goodwill | 0 | 82,534 | ||
Operating Segments | Developed Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 163,700 | 102,899 | 347,094 | |
Other revenue | 0 | 0 | 0 | |
Advertising spend | 106,984 | 60,784 | 230,291 | |
ROAS contribution | 56,716 | 42,115 | 116,803 | |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 140,143 | 89,341 | 305,061 | |
Other revenue | 0 | 0 | 0 | |
Advertising spend | 94,096 | 56,979 | 233,949 | |
ROAS contribution | 46,047 | 32,362 | 71,112 | |
Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 45,599 | 46,125 | 171,469 | |
Other revenue | 0 | 0 | 0 | |
Advertising spend | 22,470 | 32,211 | 152,465 | |
ROAS contribution | 23,129 | 13,914 | 19,004 | |
Corporate & Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 12,023 | 10,556 | 14,993 | |
Other revenue | 8,109 | 2,899 | 2,841 | |
Advertising spend | 0 | 0 | 0 | |
ROAS contribution | 12,023 | 10,556 | 14,993 | |
Referral revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 349,442 | 238,365 | 823,624 | |
Referral revenue | Operating Segments | Developed Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 163,700 | 102,899 | 347,094 | |
Referral revenue | Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 140,143 | 89,341 | 305,061 | |
Referral revenue | Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 45,599 | 46,125 | 171,469 | |
Referral revenue | Corporate & Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,914 | 7,657 | 12,152 | |
Subscription revenue | Operating Segments | Developed Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Subscription revenue | Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Subscription revenue | Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Subscription revenue | Corporate & Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | € 3,914 | € 7,657 | € 12,152 | |
[1] | Year ended December 31, 2019 2020 2021 (1) Includes share-based compensation as follows: Cost of revenue € 269 € 243 € 257 Selling and marketing 2,359 1,169 1,104 Technology and content 5,978 3,808 3,897 General and administrative 11,285 9,859 12,003 | |||
[2] | (3) Includes related party expense as follows: Cost of revenue € 44 € (32) € 0 Selling and marketing 263 133 111 Technology and content 465 97 48 General and administrative 43 31 0 | |||
[3] | (2) Includes amortization as follows: Amortization of internal use software costs included in € 360 € 188 € 98 Amortization of internal use software and website development costs included in technology and content 3,239 3,926 4,566 Amortization of internal use software costs included in general and administrative 656 491 313 Amortization of acquired technology included in amortization of intangible assets 143 84 136 |
Segment information - Geographi
Segment information - Geographic information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | € 361,465 | € 248,921 | € 838,617 |
Property and equipment, net | 15,905 | 26,682 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 102,687 | 57,406 | 192,526 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 42,301 | 27,491 | 68,491 |
Property and equipment, net | 15,817 | 26,289 | |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 41,389 | 26,637 | 85,284 |
All other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 175,088 | 137,387 | € 492,316 |
Property and equipment, net | € 88 | € 393 |
Valuation and qualifying acco_3
Valuation and qualifying accounts (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | € 348 | € 74 | € 250 |
Charges to Earnings | 330 | 656 | 754 |
Deductions | (20) | (382) | (930) |
Balance at End of Period | € 658 | € 348 | € 74 |
Subsequent events (Details)
Subsequent events (Details) - EUR (€) € in Millions | Jan. 13, 2022 | Mar. 04, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 01, 2022 |
Common Class B | ||||||
Subsequent Event [Line Items] | ||||||
Shares converted (in shares) | 36,225,279 | 3,500,000 | 7,000,000 | |||
Subsequent Event | weekengo Gmbh | ||||||
Subsequent Event [Line Items] | ||||||
Escrow deposit released to former shareholders | € 0.5 | |||||
Subsequent Event | Common Class B | ||||||
Subsequent Event [Line Items] | ||||||
Shares converted (in shares) | 1,200,000 | |||||
Subsequent Event | Common Class A | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued after conversion (in shares) | 1,200,000 | |||||
Share-based awards, shares issued upon exercise (in shares) | 794,681 | |||||
Shares authorized to be repurchased (in shares) | 1 | |||||
Subsequent Event | American Depositary Shares | ||||||
Subsequent Event [Line Items] | ||||||
Authorized amount for stock repurchased | € 10 |