Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
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 (ADSs), each representing five Class A shares, 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 Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001683825 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Class A common stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 110,919,270 |
Class B common stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 237,476,895 |
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 | Johannes Thomas |
Country Region | +49 |
City Area Code | 211 |
Local Phone Number | 3876840000 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 1251 |
Auditor Name | EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft |
Auditor Location | Düsseldorf, Germany |
Consolidated statements of oper
Consolidated statements of operations - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue | € 485,031 | € 535,004 | € 361,465 | |
Costs and expenses: | ||||
Cost of revenue, including related party, excluding amortization | [1] | 11,971 | 12,691 | 11,500 |
Selling and marketing, including related party | [1],[2],[3] | 345,639 | 342,024 | 249,196 |
Technology and content, including related party | [1],[2],[3] | 49,020 | 54,921 | 52,374 |
General and administrative, including related party | [1],[2],[3] | 38,726 | 60,852 | 38,208 |
Amortization of intangible assets | [2] | 135 | 136 | 136 |
Goodwill and intangible assets impairment loss | 196,127 | 184,642 | 0 | |
Operating income/(loss) | (156,587) | (120,262) | 10,051 | |
Other income/(expense) | ||||
Interest expense | (12) | (51) | (389) | |
Interest income | 5,213 | 622 | 174 | |
Other, net | (478) | (556) | 13,454 | |
Total other income/(expense), net | 4,723 | 15 | 13,239 | |
Income/(loss) before income taxes | (151,864) | (120,247) | 23,290 | |
Expense for income taxes | 12,391 | 6,570 | 12,586 | |
Income/(loss) before equity method investment | (164,255) | (126,817) | 10,704 | |
Loss from equity method investment | (221) | (401) | 0 | |
Net income/(loss) | € (164,476) | € (127,218) | € 10,704 | |
Earnings per share attributable to common stockholders: | ||||
Basic (in Euro per share) | € (0.48) | € (0.36) | € 0.03 | |
Diluted (in Euro per share) | € (0.48) | € (0.36) | € 0.03 | |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 344,937,000 | 357,551,000 | 357,525,000 | |
Diluted (in shares) | 344,937,000 | 357,551,000 | 367,240,000 | |
Nonrelated Party | ||||
Revenue | € 312,559 | € 361,697 | € 270,110 | |
Related Party | ||||
Revenue | € 172,472 | € 173,307 | € 91,355 | |
[1] Year ended December 31, 2023 2022 2021 (1) Includes share-based compensation as follows: Cost of revenue € 146 € 198 € 257 Selling and marketing 463 737 1,104 Technology and content 1,728 2,969 3,897 General and administrative 7,168 11,438 12,003 (2) Includes amortization as follows: Amortization of internal use software costs included in € — € 8 € 98 Amortization of internal use software and website development costs included in technology and content 3,085 4,019 4,566 Amortization of internal use software costs included in general and administrative — 104 313 Amortization of acquired technology included in amortization of intangible assets 135 136 136 (3) Includes related party expense as follows: Selling and marketing € 94 € 97 € 111 Technology and content 1,618 541 48 General and administrative 63 1 — |
Consolidated statements of op_2
Consolidated statements of operations (Parenthetical) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Share-based compensation | € 9,500 | € 15,300 | € 17,300 | |
Amortization of intangible assets | [1] | 135 | 136 | 136 |
General and administrative, including related party | [1],[2],[3] | 38,726 | 60,852 | 38,208 |
Internal use software costs | ||||
Amortization of intangible assets | 3,100 | 4,100 | 5,000 | |
Acquired technology | ||||
Amortization of intangible assets | 135 | 136 | 136 | |
Cost of revenue | ||||
Share-based compensation | 146 | 198 | 257 | |
Selling and marketing | ||||
Share-based compensation | 463 | 737 | 1,104 | |
General and administrative, including related party | 94 | 97 | 111 | |
Selling and marketing | Internal use software costs | ||||
Amortization of intangible assets | 0 | 8 | 98 | |
Technology and content | ||||
Share-based compensation | 1,728 | 2,969 | 3,897 | |
General and administrative, including related party | 1,618 | 541 | 48 | |
Technology and content | Internal use software costs | ||||
Amortization of intangible assets | 3,085 | 4,019 | 4,566 | |
General and administrative | ||||
Share-based compensation | 7,168 | 11,438 | 12,003 | |
General and administrative, including related party | 63 | 1 | 0 | |
General and administrative | Internal use software costs | ||||
Amortization of intangible assets | € 0 | € 104 | € 313 | |
[1] (2) Includes amortization as follows: Amortization of internal use software costs included in € — € 8 € 98 Amortization of internal use software and website development costs included in technology and content 3,085 4,019 4,566 Amortization of internal use software costs included in general and administrative — 104 313 Amortization of acquired technology included in amortization of intangible assets 135 136 136 Year ended December 31, 2023 2022 2021 (1) Includes share-based compensation as follows: Cost of revenue € 146 € 198 € 257 Selling and marketing 463 737 1,104 Technology and content 1,728 2,969 3,897 General and administrative 7,168 11,438 12,003 (3) Includes related party expense as follows: Selling and marketing € 94 € 97 € 111 Technology and content 1,618 541 48 General and administrative 63 1 — |
Consolidated statements of comp
Consolidated statements of comprehensive income/(loss) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | € (164,476) | € (127,218) | € 10,704 |
Other comprehensive income/(loss): | |||
Currency translation adjustments | 21 | 18 | 32 |
Total other comprehensive income | 21 | 18 | 32 |
Comprehensive income/(loss) attributable to trivago N.V. | € (164,455) | € (127,200) | € 10,736 |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | € 101,847 | € 248,584 |
Restricted cash | 342 | 342 |
Short-term investments | 25,225 | 45,000 |
Tax receivable | 6,774 | 498 |
Prepaid expenses and other current assets | 11,032 | 8,669 |
Total Current Assets | 187,927 | 353,204 |
Property and equipment, net | 10,079 | 13,075 |
Operating lease right-of-use assets | 42,273 | 45,028 |
Investments & other assets | 9,176 | 8,409 |
Intangible assets, net | 75,614 | 89,949 |
Goodwill | 0 | 181,927 |
TOTAL ASSETS | 325,069 | 691,592 |
Current liabilities: | ||
Accounts payable | 17,930 | 19,941 |
Income taxes payable | 2,087 | 12,325 |
Deferred revenue | 1,176 | 1,689 |
Payroll liabilities | 2,619 | 2,454 |
Accrued expenses and other current liabilities | 9,874 | 8,675 |
Operating lease liability | 2,301 | 4,538 |
Total Current Liabilities | 35,987 | 49,622 |
Operating lease liability | 38,434 | 40,729 |
Deferred income taxes | 26,549 | 30,050 |
Other long-term liabilities | 9,075 | 9,455 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Treasury stock at cost - Class A shares, nil and 20,000,000 shares, respectively | 0 | (19,960) |
Reserves | 681,333 | 863,987 |
Contribution from Parent | 122,307 | 122,307 |
Accumulated other comprehensive income | 75 | 54 |
Accumulated deficit | (737,832) | (554,596) |
Total stockholders' equity | 215,024 | 561,736 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 325,069 | 691,592 |
Class A common stock | ||
Stockholders' equity: | ||
Common stock | 6,655 | 7,458 |
Class B common stock | ||
Stockholders' equity: | ||
Common stock | 142,486 | 142,486 |
Related Party | ||
Current assets: | ||
Accounts receivable, net of allowance for credit losses of €936 and €418, respectively | 19,094 | 24,432 |
Accounts receivable, related party | 19,094 | 24,432 |
Nonrelated Party | ||
Current assets: | ||
Accounts receivable, net of allowance for credit losses of €936 and €418, respectively | 23,613 | 25,679 |
Accounts receivable, related party | € 23,613 | € 25,679 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance for credit losses | € 936 | € 418 |
Class common stock, shares issued (in shares) | 110,919,270 | 124,305,225 |
Treasury stock (in shares) | 0 | 20,000,000 |
Class A common stock | ||
Class common stock, par value (in EUR per share) | € 0.06 | € 0.06 |
Class common stock, shared authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares outstanding (in shares) | 110,919,270 | 104,305,225 |
Class B common stock | ||
Class common stock, par value (in EUR 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) | 237,476,895 | 237,476,895 |
Common stock, shares outstanding (in shares) | 237,476,895 | 237,476,895 |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Thousands | Total | Common stock Class A common stock | Common stock Class B common stock | Treasury stock - Class A Common stock | Reserves | Retained earnings (accumulated deficit) | Accumulated other comprehensive income | Contribution from Parent |
Beginning balance at Dec. 31, 2020 | € 664,517 | € 3,358 | € 178,913 | € 0 | € 798,017 | € (438,082) | € 4 | € 122,307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | 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 | 2,174 | (21,735) | 19,561 | |||||
Issuance of common stock related to exercise of options and vesting of RSUs, net | 1,270 | 270 | 1,000 | |||||
Ending balance at Dec. 31, 2021 | 693,784 | 5,802 | 157,178 | 0 | 835,839 | (427,378) | 36 | 122,307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | (127,218) | (127,218) | ||||||
Other comprehensive income (net of tax) | 18 | 18 | ||||||
Share-based compensation expense | 15,342 | 15,342 | ||||||
Conversion of Class B shares | 0 | 1,469 | (14,692) | 13,223 | ||||
Issuance of common stock related to exercise of options and vesting of RSUs, net | 69 | 187 | (118) | |||||
Repurchase of common stock | (20,259) | (20,259) | ||||||
Reissuance of treasury stock | 299 | (299) | ||||||
Ending balance at Dec. 31, 2022 | 561,736 | 7,458 | 142,486 | (19,960) | 863,987 | (554,596) | 54 | 122,307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | (164,476) | (164,476) | ||||||
Other comprehensive income (net of tax) | 21 | 21 | ||||||
Share-based compensation expense | 9,505 | 9,505 | ||||||
Issuance of common stock related to exercise of options and vesting of RSUs, net | 365 | 397 | (32) | |||||
Withholding taxes on net share settlements of equity awards | (6,456) | (6,456) | ||||||
Treasury stock, retired, amount | 1,200 | 19,960 | 18,760 | |||||
Dividend paid to shareholders | (184,381) | (184,381) | ||||||
Reclassification of share-based compensation expense from equity to liability | (1,290) | (1,290) | ||||||
Ending balance at Dec. 31, 2023 | € 215,024 | € 6,655 | € 142,486 | € 0 | € 681,333 | € (737,832) | € 75 | € 122,307 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Operating activities: | ||||
Net income/(loss) | € (164,476) | € (127,218) | € 10,704 | |
Adjustments to reconcile net income/(loss) to net cash provided by: | ||||
Depreciation (property and equipment, internal-use software and website development) | 4,421 | 5,996 | 8,213 | |
Amortization of intangible assets | [1] | 135 | 136 | 136 |
Goodwill and intangible assets impairment loss | 196,127 | 184,642 | 0 | |
Impairment of long-lived assets including internal-use software and website development | 0 | 893 | 0 | |
Share-based compensation | 9,505 | 15,342 | 17,261 | |
Deferred income taxes | (3,501) | (19,734) | 8,856 | |
Foreign exchange (gains)/losses | 632 | 228 | (1,554) | |
Expected credit losses, net | 640 | 228 | 255 | |
(Gain)/Loss on disposal of fixed assets | (18) | (6) | 317 | |
Gain from settlement of asset retirement obligation | 0 | 0 | (5) | |
Gain from lease termination and modification, net | 0 | 0 | (1,307) | |
Loss from equity method investment | 221 | 401 | 0 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable, including related party | 6,691 | (10,114) | (25,754) | |
Prepaid expenses and other assets | (3,565) | 1,557 | (2,510) | |
Accounts payable | (2,389) | 5,291 | 6,897 | |
Payroll liabilities | (935) | (835) | 297 | |
Accrued expenses and other liabilities | 1,358 | (677) | 2,738 | |
Deferred revenue | (513) | (485) | (576) | |
Taxes payable/receivable, net | (16,532) | 10,623 | 8,568 | |
Net cash provided by operating activities | 27,801 | 66,268 | 32,536 | |
Investing activities: | ||||
Purchase of investments | (25,225) | (50,000) | (1,351) | |
Proceeds from sales and maturities of investments | 45,000 | 5,000 | 19,338 | |
Business acquisition, net of cash acquired | 0 | 0 | (4,302) | |
Capital expenditures, including internal-use software and website development | (3,514) | (3,976) | (3,781) | |
Investment in equity-method investees | 0 | (5,951) | 0 | |
Proceeds from sale of fixed assets | 28 | 17 | 114 | |
Net cash provided by/(used in) investing activities | 16,289 | (54,910) | 10,018 | |
Financing activities: | ||||
Proceeds from exercise of option awards | 365 | 118 | 1,270 | |
Payment of withholding taxes on net share settlements of equity awards | (6,380) | 0 | 0 | |
Repayment of other non-current liabilities | (46) | (112) | (217) | |
Purchases of treasury stock | 0 | (19,627) | 0 | |
Dividend paid to shareholders | (184,381) | 0 | 0 | |
Net cash provided by/(used in) financing activities | (190,442) | (19,621) | 1,053 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (385) | 470 | 2,341 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (146,737) | (7,793) | 45,948 | |
Cash, cash equivalents and restricted cash at beginning of year | 248,926 | 256,719 | 210,771 | |
Cash, cash equivalents and restricted cash at end of year | 102,189 | 248,926 | 256,719 | |
Supplemental cash flow information: | ||||
Cash paid for interest | 12 | 51 | 383 | |
Cash received for interest | 5,271 | 397 | 174 | |
Cash paid for taxes, net of (refunds) | 32,985 | 9,436 | (4,848) | |
Non-cash investing and financing activities: | ||||
Fixed assets-related payable | € 0 | € 0 | € 3 | |
[1] (2) Includes amortization as follows: Amortization of internal use software costs included in € — € 8 € 98 Amortization of internal use software and website development costs included in technology and content 3,085 4,019 4,566 Amortization of internal use software costs included in general and administrative — 104 313 Amortization of acquired technology included in amortization of intangible assets 135 136 136 |
Organization and basis of prese
Organization and basis of presentation | 12 Months Ended |
Dec. 31, 2023 | |
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 or 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, 2023, Expedia Group’s ownership interest and voting interest in trivago N.V. is 60.0% and 84.1%, respectively, and 61.2% and 84.3%, respectively, as of December 31, 2022. 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. Certain amounts previously reported in the consolidated financial statements have been reclassified in the accompanying consolidated financial statements to conform to the current period's presentation, primarily to separately present interest income, which was previously classified as other net income on the statements of operations. 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. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and December 31, 2022, 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 and indefinite-lived intangible assets, income taxes, and share-based compensation. 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 30 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 Single Euro Payments Area ("SEPA") or credit card. The price per subscription is fixed and determinable when the contract commences. Other Revenue We also earn revenue by offering our advertisers business-to-business (B2B) solutions including: display advertisements, which are recognized as services are provided; access services, which are recognized based on the volume usage; and white label services, which are predominately recognized in accordance with CPC revenue. These revenue streams do not represent a significant portion of our revenue. Deferred revenue Deferred revenue relates to advanced payments received for services provided in future periods, primarily related to subscription services. At December 31, 2021, €2.2 million was recorded as deferred revenue, €2.1 million of which was recognized as revenue during the year ended December 31, 2022. At December 31, 2022, the deferred revenue balance was €1.7 million, €1.7 million of which was recognized as revenue during the year ended December 31, 2023. At December 31, 2023, the deferred revenue balance was €1.2 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, 2023, 2022 and 2021, cost of revenue excludes €0.1 million each period, of amortization expense of acquired technology. For the years ended December 31, 2023, 2022 and 2021 cost of revenue excludes €3.1 million, €4.1 million and €5.0 million, respectively, of amortization expense related to internal use software and website development. Refer to footnote (2) of the consolidated statements of operations for amortization expense presentation within operating expenses. Cash, cash equivalents and restricted cash Our cash and cash equivalents include cash and liquid financial instruments, consisting of time deposit investments, with original maturities of three months or less when purchased. Restricted cash includes cash and cash equivalents that is restricted through legal contracts. Our restricted cash primarily consists of funds held as guarantee in connection with our corporate lease. The carrying value of restricted cash approximates its fair value. The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows: As of December 31, (in thousands) 2023 2022 Cash & cash equivalents € 101,847 € 248,584 Restricted cash included within current assets 342 342 Total € 102,189 € 248,926 Accounts receivable Accounts receivable are generally due within 10 to 30 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 statements of operations. Investments Our short-term investments consist of term deposit accounts and government bonds with original maturity of more than three but fewer than 12 months. Our long-term investments, classified as investments and other assets, consist of an equity-method investment and term deposits with maturity of more than one year. Non-marketable equity investments We account for non-marketable equity investments which we exercise significant influence but do not have control using the equity method. Under the equity method, investments are initially recognized at cost and adjusted to reflect the Company’s interest in the investee's net earnings or losses, dividends received and other-than-temporary impairments. Losses are limited to the extent of the Company’s investment in, advances to and commitments for the investee. On a quarterly basis, we perform a qualitative assessment considering impairment indicators to evaluate whether these investments are impaired. Qualitative factors considered include industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, we prepare a quantitative assessment of the fair value of our equity investments, which may include using both the market and income approaches that require judgment and the use of estimates. When our assessment indicates that an impairment, that is also "other-than temporary", exists, we write down our non-marketable equity investments to fair value. 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. 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 in 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, we have entered into subleases for unoccupied leased office space. We recognize sublease payments on a straight-line basis over the term of the sublease. 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 th , 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: We assess indefinite-lived intangible assets for impairment annually as of September 30 th , or more frequently, if events and circumstances indicate that an impairment may have occurred. 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. This method requires us to estimate future revenue for the brand, the appropriate royalty savings rate and an applicable discount rate. 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. Interest income Interest income presented in our consolidated statements of operations primarily consists of interest earned on our term deposits held with financial institutions and interest earned on our bank accounts. 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. Foreign currency transaction gains and losses presented within other income and expense, other, net for the years ended December 31, 2023, 2022 and 2021 were as follows: As of December 31, (in thousands) 2023 2022 2021 Foreign exchange gains/(losses), net € (632) € (228) € 1,554 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 9 - Share-based awards and other equity instruments . For certain employee awards classified as liabilities, we remeasure these instruments at fair value at the end of each reporting period, representing the portion of the requisite service period rendered, until the award is settled. 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 option awards 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 RSU awards 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 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). Refer to Note 11 - Stockholders' equity for further discussion on the distribution of the one-time extraordinary dividend paid in November 2023. Subject only to such restrictions, any future determination to pay dividends will be at the discretion of our management board. 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, 2023 and 2022, our reserves restricted for dividend distribution were €154.6 million and €155.2 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 36%, 32% and 25%, respectively, of revenues for the years ended December 31, 2023, 2022 and 2021 and 45% and 49% of total accounts receivable as of December 31, 2023 and 2022. Booking Holdings and its affiliates represent 43%, 49% and 54%, respectively, of revenues for the years ended December 31, 2023, 2022 and 2021 and 25% and 30%, respectively, of total accounts receivable as of December 31, 2023 and 2022. 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 13 - 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 materi |
Acquisitions and other investme
Acquisitions and other investments | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and other investments | Acquisitions and other investments Acquisitions Effective 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. 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. 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 was complete. 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 Weekend product was discontinued during 2022 following a strategic shift in focus. As a result of the discontinuation, we recognized expenses of €0.5 million for costs related to software contracts that service the WEEKEND.com domain within operating expenses in our consolidated statements of operations for the year ended December 31, 2022. Other investments On April 28, 2022 (the "closing date"), we entered into an investment for a 20.8% (15.5% fully-diluted by share options) ownership interest in UBIO Limited ("UBIO") for €5.9 million. UBIO is a software company that develops robotic automation technology. trivago has the ability to exercise significant influence over UBIO through our representation on UBIO's Board of Directors, where we hold one of five seats. trivago does not have any rights, obligations or any relationships with regards to the other investors of UBIO. Our investment in UBIO is accounted for as an equity method investment. As of the closing date, the carrying value of our equity method investment in UBIO was approximately €5.8 million higher than our share of interest in UBIO's underlying net assets. Of this basis difference, €2.2 million relates to intangible assets that will be amortized over the intangible assets' useful life, €(0.4) million relates to tax basis differences to be recovered where appropriate and the remaining amount of €4.0 million relates to equity method goodwill recognized as part of the overall investment account balance. The equity method goodwill recognized is not amortized. Refer to Note 14 - Related party transactions for related party considerations arising from UBIO. |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement Financial assets measured at fair value on a recurring basis are classified using the fair value hierarchy in the table below: As of December 31, 2023 Total Level 2 (in thousands) Assets Cash equivalents: Term deposits € 64,123 € 64,123 Short-term investments Term deposits 25,225 25,225 Investments and other assets: Term deposits 1,351 1,351 Total € 90,699 € 90,699 As of December 31, 2022 Total Level 2 (in thousands) Assets Cash equivalents: Term deposits € 159,000 € 159,000 Short-term investments Term deposits 45,000 45,000 Investments and other assets: Term deposits 1,351 1,351 Total € 205,351 € 205,351 We value our financial assets using quoted market prices or alternative pricing sources and models utilizing market observable inputs. 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 a maturity of less than three months are classified as cash equivalents, those with a maturity of more than three months but less than one year are classified as short-term investments and those with a maturity of more than one year are classified as investments and other assets. Investments in term deposits with a maturity of more than one year are restricted by long-term obligations related to the campus building. Assets measured at fair value on a non-recurring basis Our non-financial assets, such as goodwill, intangible assets and investments accounted under the equity method are adjusted to fair value when an impairment charge is recognized or the underlying investment is sold. Such fair value measurements are based predominately on Level 3 inputs. Goodwill and intangible assets For the years ended December 31, 2023 and 2022, we recorded goodwill impairments of €181.9 million and €104.6 million, respectively, and indefinite-lived intangible asset impairments of €14.2 million and €80.0 million, respectively. Goodwill is assigned to our three reporting units on the basis of their relative fair values. The fair value of each reporting unit was estimated using a blended analysis of the present value of future discounted cash flows and market valuation approach using Level 3 inputs. We base our measurement of the fair value of our indefinite-lived intangible assets, which consist of trade name, trademarks, and domain names using the relief-from royalty method. This method uses Level 3 inputs including projected revenues, discount rate and a royalty savings rate which ranged from 3% to 4%. See Note 8 - Goodwill and intangible assets, net . |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 Prepaid advertising € 6,429 € 6,284 Other prepaid expenses 4,393 2,035 Other assets 210 350 Total € 11,032 € 8,669 In January 2021, we entered into a long-term marketing sponsorship agreement for various marketing rights. The final contractual installment payment under our long-term marketing sponsorship agreement was paid and €4.0 million has been included within prepaid advertising in the above table as of December 31, 2023. |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net As of December 31, (in thousands) 2023 2022 Leasehold improvements € 4,117 € 6,865 Capitalized software and software development costs 30,065 28,867 Computer equipment 15,375 15,916 Furniture and fixtures 2,999 3,045 Subtotal 52,556 54,693 Less: accumulated depreciation 42,477 42,175 Construction in process — 557 Property and equipment, net € 10,079 € 13,075 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 sheets (see Note 2 - Significant accounting policies - Leases and Note 7 - Leases for further information). Pursuant to the amendment of the operating lease agreement for office space signed in January 2021, the Company sold and transferred long-lived assets with a net book value of €2.1 million to the landlord in the quarter ended June 30, 2023. This transaction is offset by the lease termination penalty payment to the landlord of €2.3 million. The net amount is recorded in accrued expenses and other current liabilities in the consolidated balance sheet as of December 31, 2023 . There was no significant gain/loss recorded on the sale of these fixed assets. See Note 7 - Leases for additional details on the transaction. As of December 31, 2023 and 2022, our internally developed capitalized software and acquired software development costs, net of accumulated amortization, were €5.4 million and €5.3 million, respectively. During the year ended December 31, 2022, we recorded an impairment of €0.9 million related to acquired software and internally capitalized software development costs. We recognized the loss on impairment within our operating expenses. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for office space and office equipment. Our leases have remaining lease terms of less than two years to 14 years, inclusive of options to extend the lease for up to ten years. Operating lease costs were €4.2 million, €4.9 million and €5.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Variable lease costs of €0.4 million and €0.2 million for the years ended December 31, 2023 and 2022 include cost-of-living index adjustments. Variable lease costs of €0.4 million for the year ended December 31, 2021 include 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. The Company also had subleases mainly for office space under agreements which were terminated by the end of 2021; however, in 2022, we entered into a new sublease agreement for our Barcelona office space. Sublease income from such agreements was €0.1 million for the years ended December 31, 2023, 2022 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. We surrendered the remainder of the leased space subject to the termination on May 31, 2023 for a €2.3 million penalty payment to the landlord. The penalty is offset by a sale of long-lived assets which were transferred to the landlord as a part of this transaction, see Note 6 - Property and equipment, net for additional details. Supplemental information related to operating leases was as follows: As of December 31, (in thousands) 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities € 3,722 € 3,828 Supplemental consolidated balance sheet information related to leases were as follows: As of December 31, (in thousands) 2023 2022 Operating lease right-of-use assets € 42,273 € 45,028 Current operating lease liabilities € 2,301 € 4,538 Long-term operating lease liabilities € 38,434 € 40,729 Total operating lease liabilities € 40,735 € 45,267 Weighted average remaining lease term 14.4 years 14.6 years Weighted average discount rate 3.4 % 3.4 % Maturities of operating lease liabilities are as follows: Year ended December 31, (in thousands) 2023 2024 € 3,656 2025 3,640 2026 3,560 2027 3,560 2028 3,560 2029 and thereafter 33,520 Total lease payments 51,496 Less: imputed interest (10,761) Total € 40,735 |
Goodwill and intangible assets,
Goodwill and intangible assets, net | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022: Year ended December 31, (in thousands) 2023 2022 Goodwill € — € 181,927 Intangible assets with indefinite lives 75,345 89,545 Intangible assets with definite lives, net 269 404 Total € 75,614 € 271,876 Impairment Assessment For the year ended December 31, 2023, we performed a quantitative impairment assessment for our annual impairment test as of September 30 th . As a result, a cumulative goodwill and indefinite-lived intangible assets impairment charge of €196.1 million was recorded. We recorded impairment charges to the Developed Europe and Americas reporting unit goodwill balances of €95.5 million and €86.5 million, respectively which eliminated the goodwill balances in these reporting units. The impairment was driven by adjustments made to our profitability outlook arising from the announced strategy shift to long-term growth, share price decline during the third quarter of 2023, uncertainty in our operating environment, and the continued uncertainty in respect of the overall economic environment. We also performed a quantitative impairment assessment for our annual indefinite-lived intangible assets as of September 30 th resulting in an impairment charge of €14.2 million. For the year ended December 31, 2022, we performed two quantitative impairment assessments. Concurrently with our second quarter and annual goodwill impairment assessments in 2022, we also performed quantitative impairment assessments for our indefinite-lived intangible assets. We recorded a cumulative goodwill impairment charge of €104.6 million to our Developed Europe reporting unit and a cumulative impairment charge of €80.0 million to our indefinite-lived intangible assets for the year ended December 31, 2022. The impairments recorded in the prior year were due to deteriorating macroeconomic conditions, including rising interest rates, increased inflation and more uncertainty in respect of the overall economic environment which led to a shift in the Company’s internal priorities beginning in the second quarter of 2022. During the goodwill impairment assessments performed, 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 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. During the indefinite-live intangible asset impairment assessments performed, we base our measurement of the fair value using 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. This method requires us to estimate future revenue for the brand, the appropriate royalty savings rate and an applicable discount rate. 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, 2022 € 200,067 € 86,472 € — € 286,539 Foreign exchange translation 26 4 — 30 Impairment charge (104,642) — — (104,642) Balance as of December 31, 2022 € 95,451 € 86,476 € — € 181,927 Balance as of January 1, 2023 € 95,451 € 86,476 € — € 181,927 Impairment charge (95,451) (86,476) — (181,927) Balance as of December 31, 2023 € — € — € — € — As of December 31, 2023 and 2022, we had accumulated impairment losses for goodwill of €494.2 million and €312.3 million, respectively. Intangible Assets with Indefinite Lives Our indefinite-lived intangible assets relate principally to trade names, trademarks and domain names. As of December 31, 2023 and 2022, we have 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, 2023 and 2022: December 31, 2023 December 31, 2022 (in thousands) Cost (Accumulated Amortization) Net Cost (Accumulated Amortization) Net Trademark/domain € 675 € (406) € 269 € 675 € (271) € 404 Total € 675 € (406) € 269 € 675 € (271) € 404 Amortization expense was €0.1 million for both years ended December 31, 2023 and 2022. The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2023, assuming no subsequent impairment of the underlying assets, will be €0.1 million for each of the two succeeding fiscal years. |
Share-based awards and other eq
Share-based awards and other equity instruments | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 are 59,635,698 Class A shares, 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. We issue new shares or reissue treasury shares held 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, 2023 27,357,798 2.30 10 23,179 Granted 20,879,816 0.63 Exercised (1) 12,276,176 0.06 Cancelled 5,043,983 0.76 Balance as of December 31, 2023 30,917,455 2.25 7 3,074 Exercisable as of December 31, 2023 7,978,490 7.00 9 377 (1) Inclusive of 6,407,312 options withheld due to net share settlements to satisfy required employee tax withholding requirements. Potential shares which had been convertible under options that were withheld under net share settlements remain in the authorized but unissued pool under the 2016 Omnibus Incentive Plan and can be issued by the Company. Total payments for the employees' tax obligations to the taxing authorities due to net share settlements are reflected as a financing activity within the consolidated statements of cash flows. The total intrinsic value of stock options exercised was €12.4 million, €3.1 million and €10.8 million for the years ended December 31, 2023, 2022 and 2021. The following table summarizes information about share options vested and expected to vest as of December 31, 2023: Fully Vested and Expected to Vest Options Weighted Remaining Aggregate (in €) (In years) (€ in thousands) Outstanding 22,757,455 2.83 7 2,294 Currently Exercisable 7,978,490 7.00 9 377 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, 2023 2,972,024 1.94 6 Granted 1,446,392 1.57 Vested (1) 1,092,205 1.85 Cancelled 1,123,436 1.69 Balance as of December 31, 2023 2,202,775 1.79 6 (1) Inclusive of 310,268 RSUs withheld due to net share settlements to satisfy required employee tax withholding requirements. Potential shares which had been convertible under RSUs that were withheld under net share settlements remain in the authorized but unissued pool under the 2016 Omnibus Incentive Plan and can be issued by the Company. Total payments for the employees' tax obligations to the taxing authorities due to net share settlements are reflected as a financing activity within the consolidated statements of cash flows. On July 11, 2022, 2,032,743 market-based awards made to our management board were cancelled resulting in the remaining unrecognized compensation cost for the cancelled awards to be accelerated and recognized as share-based compensation expense on the date of cancellation. On May 9, 2023, 8,160,000 market-based and 12,240,000 service-based options were granted to the new Managing Directors appointed at the annual general meeting of shareholders held on June 30, 2023. The market-based awards cliff vest at the end of the performance period on June 30, 2027. The market condition is based upon trivago's volume-weighted average share price, which determines the number of shares earned. The service-based options vest annually over three years beginning on June 30, 2024 in equal increments. Also on May 9, 2023, our former CEO resigned and concurrently signed an agreement to provide substantive consultancy services. As a result, a modification was made to the vesting conditions for the outstanding market-based and service-based options. As the modification date fair values of the unvested awards were lower than the original grant date fair values, we recorded a €1.3 million reduction in general and administrative compensation expense during the second quarter of 2023. Additionally, in accordance with our accounting policy to record forfeitures as they occur, we recorded a €1.0 million reduction in general and administrative compensation expense during the fourth quarter of 2023 as the consultancy agreement ended on December 31, 2023. On October 3, 2023, our CFO signed an agreement to provide substantive consultancy services subsequent to his termination date of December 31, 2023. As a result, a modification was made to the vesting conditions for the outstanding market-based and service-based options. As the modification date fair values of the unvested awards were lower than the original grant date fair values, we recorded a €0.3 million reduction in general and administrative compensation expense during the fourth quarter of 2023. On November 2, 2023, the Compensation Committee resolved to modify certain awards pursuant to the authority granted to it under the 2016 Plan to make adjustments in the event of an extraordinary dividend, as further described in Note 11 - Stockholders' equity. The modifications included reductions to the strike price of certain options by €0.53 (USD 0.57) (the rounded per share amount of the dividend stated in Note 11 - Stockholders' equity converted into U.S. dollars) per Class A settled option and also to provide holders of certain other options and RSUs with a fixed cash payment of €0.53 per Class A settled award that vests on or after November 2, 2023. As a result of the strike price modifications, no additional incremental share-based compensation expense was recorded. For the awards eligible for the fixed cash payment, an equity to liability modification resulted in a portion of share-based compensation expense previously recorded in equity to be reclassified as a liability. As of December 31, 2023, €1.1 million and €0.2 million of the amounts previously recognized in additional paid-in-capital for these awards were reclassified to payroll liabilities and other long-term liabilities, respectively, on the consolidated balance sheet. The fair value of share awards granted during the years ended December 31, 2023, 2022 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, 2023 2022 2021 Risk-free interest rate 3.31 % 1.04 % (0.46) % Expected volatility 68 % 69 % 71 % Expected life (in years) 4.96 4.31 4.41 Dividend yield — % — % — % Weighted-average estimated fair value of options granted during the year € 1 € 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. During the years ended December 31, 2023, 2022 and 2021, we recognized total share-based compensation expense of €9.5 million, €15.3 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, 2023, 2022 and 2021, was €0.4 million, €0.1 million and €1.3 million, respectively. As of December 31, 2023, there was approximately €15.7 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 2.5 years. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The following table summarizes our income tax expense/(benefit): Year ended December 31, (€ thousands) 2023 2022 2021 Current income tax expense: Germany € 15,883 € 26,239 € 3,729 Other countries 9 65 1 Current income tax expense € 15,892 € 26,304 € 3,730 Deferred income tax expense/(benefit): Germany (3,501) (19,763) 8,914 Other countries — 29 (58) Deferred income tax expense/(benefit) € (3,501) € (19,734) € 8,856 Income tax expense € 12,391 € 6,570 € 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) 2023 2022 2021 Germany € (151,890) € (119,273) € 23,387 Other countries 26 (974) (97) Income/(loss) before income taxes € (151,864) € (120,247) € 23,290 A reconciliation of amounts computed by applying the German statutory income tax rate of 31.2% to income/(loss) before income taxes to total income tax expense is as follows: Year ended December 31, (€ thousands) 2023 2022 2021 Income/(loss) before income taxes € (151,864) € (120,247) € 23,290 Income tax expense/(benefit) at German tax rate (47,419) (37,547) 7,272 Foreign rate differential (1) 175 17 Expected tax expense/(benefit) € (47,420) € (37,372) € 7,289 Tax effect from: Non-deductible share-based compensation € 2,968 € 4,791 € 5,390 Deductible share-based compensation liability awards (401) — — Non-deductible corporate costs 1,013 234 121 Goodwill impairment 56,807 32,674 — Prior period taxes (5) 192 (294) Movement in valuation allowance 13 (57) 80 Movement in uncertain tax positions (686) 6,311 56 Income tax effect resulting from weekengo asset deal transaction — — 1,938 Initial recognition of tax deductible goodwill and intangibles — — (1,938) Other differences 102 (203) (56) Income tax expense € 12,391 € 6,570 € 12,586 Income tax expense was €12.4 million, €6.6 million and €12.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Our effective tax rate was (8.2)%, (5.5)% and 54.0% in the years ended December 31, 2023, 2022 and 2021, respectively. Non-deductible share-based compensation of (pre-tax) €9.5 million, €15.3 million and €17.3 million had an impact on the effective tax rates of (2.0)%, (4.0)% and 23.1% in the years ended December 31, 2023, 2022 and 2021, respectively. Deductible amounts related to share-based compensation liability classified awards of (pre-tax) €1.3 million had an impact on the effective tax rate of 0.3% in the year ended December 31, 2023 as further discussed in Note 9 - Share-based awards and other equity instruments . Non-deductible impairment expenses on goodwill of (pre-tax) €181.9 million and €104.6 million had an impact on the effective tax rate of (37.4)% and (27.2)% in the years ended December 31, 2023 and 2022, respectively. The uncertain tax position movement relates to the release of the liability recognized for the years 2017 and 2018 after our position was accepted by the tax authorities within the tax audit, which was closed in 2023. The release of €0.7 million in the uncertain tax position had an impact on the effective tax rate of 0.5% in the year ended December 31, 2023. 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 the 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 were 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, 2023 and 2022 were as follows: Year Ended December 31, (€ thousands) 2023 2022 Balance, beginning of year € 9,238 € 2,927 Increases to tax positions related to the current year — 6,289 Decreases to tax positions related to prior years (720) — Interest and penalties 34 22 Balance, end of year € 8,552 € 9,238 Tax audits The Company is subject to audit by federal, state, local and foreign income tax authorities. The audit of tax returns for trivago N.V. from 2016 through 2018 for corporate income tax, trade tax and value-added tax was closed in 2023. As of December 31, 2023, there is no ongoing audit of tax returns for trivago N.V. for corporate income tax, trade tax and value-added tax. According to the statute of limitation, the German tax authorities may initiate additional audits of the tax years for 2019 through 2023. Deferred income taxes As of December 31, 2023 and 2022, the significant components of our deferred tax assets and deferred tax liabilities were as follows: Year Ended December 31, (€ thousands) 2023 2022 Deferred tax assets: Net operating loss and tax credit carryforwards 1,339 1,329 Accrued expenses and other current liabilities — 42 Operating lease liability 14,705 14,135 Other long-term liabilities 33 35 Deferred tax assets (gross) € 16,077 € 15,541 Less valuation allowance (1,339) (1,329) Subtotal € 14,738 € 14,212 Offsetting (14,738) (14,212) Deferred tax assets € — € — Deferred tax liabilities: Cash and cash equivalents — 51 Prepaid expense and other current assets 437 163 Intangible assets, net 23,332 27,771 Property and equipment 2,108 2,129 Operating lease right-of-use assets 15,185 14,060 Accrued expenses and other current liabilities 160 — Other long-term liabilities 18 — Other 47 88 Subtotal € 41,287 € 44,262 Offsetting (14,738) (14,212) Deferred tax liabilities € 26,549 € 30,050 trivago N.V. is a Dutch listed entity, however has its tax residency in Germany. Deferred tax assets on net operating losses ("NOLs") related to the domestic and foreign subsidiaries were €1.3 million as of December 31, 2023 and 2022. As we have considered these tax loss carryforwards as not realizable, a valuation allowance of €1.3 million was recorded as of December 31, 2023 and 2022. Deferred tax liabilities resulting from intangible assets decreased to €23.3 million as of December 31, 2023, from €27.8 million in 2022. The reduction was mainly driven by the trademark impairment charges of €14.2 million for the year ended December 31, 2023 that resulted in a deferred tax benefit of approximately €4.4 million. 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 €1.8 million and €1.7 million as of December 31, 2023 and December 31, 2022, respectively. In terms of undistributed earnings of domestic investments, we have recognized deferred income taxes on taxable temporary differences of €18 thousand, as only 5% refer to a taxable temporary difference under German tax law. Any capital gains on the sale of participations would be 95% exempt under German tax law. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' equity Class A and Class B Common Stock As of December 31, 2023, we had 110,919,270 Class A shares and 237,476,895 Class B shares outstanding. Class A and Class B common stock has a par value of €0.06 and €0.60, respectively. Class B shares 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. Each Class B share is convertible into one Class A share at any time by the holder. During the years ended December 31, 2023, 2022 and 2021, nil, 24,485,793 and 36,225,279 Class B shares were converted into Class A shares, respectively. As of December 31, 2023, Class B shares of trivago N.V. are only held by Expedia Group and Rolf Schrömgens, one of our founders and a member of our supervisory board. Refer to Note 1 - Organization and basis of presentation for Expedia Group's ownership interest and voting interest. The Class B shares held by Mr. Schrömgens as of December 31, 2023 had an ownership interest and voting interest of 8.2% and 11.5%, respectively, and 8.3% and 11.5%, respectively, as of December 31, 2022. In October 2023, the management board approved a change in the ratio of the Company's ADS program, comprising a change in the ratio of ADSs to Class A shares ("shares") from one ADS representing one share, to one ADS representing five shares. The ratio change was effective as of November 17, 2023. Dividend In 2023, the Company paid a one-time extraordinary dividend totaling €184.4 million (€0.529228 per each Class A and B share) to shareholders of record on November 3, 2023. The dividend was paid to holders of Class A and B shares on November 6, 2023 and was distributed to holders of our ADSs on November 13, 2023. Treasury Stock As of December 31, 2023 and December 31, 2022, nil and 20,000,000, respectively, of our issued shares were treasury shares. In November 2022, the Company acquired 20,000,000 Class A shares from Peter Vinnemeier valued at €19.9 million which were classified as treasury stock until they were retired in September 2023. As a result, the treasury stock balance of €19.9 million was eliminated and Class A common stock was reduced by €1.2 million representing the par value of the retired shares. The difference of €18.7 million was recognized in accumulated deficit. On March 1, 2022, the Company's Supervisory Board authorized a program to repurchase up to 10 million of the Company's ADSs, each representing one Class A share. On March 7, 2022, the Company entered into a stock repurchase program which expired on May 30, 2022. No stock repurchases were made under this program. On May 31, 2022, the Company entered into another stock repurchase program which expired on July 29, 2022. As of December 31, 2022, the Company reacquired 205,457 Class A common shares on the open market at fair market value. The shares of stock purchased under the buyback program were held as treasury shares until they were all reissued to settle RSU awards vesting from our share-based compensation awards during the fourth quarter of 2022. 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 dividends paid to shareholders, taxes withheld on net share settlements of equity awards, share-based compensation expense, impact of reclassification of share-based compensation expense from equity to liability, exercises of employee stock options and vesting of RSUs, the effect of the conversions of Class B shares to Class A shares, and the reissuance of treasury stock. 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, 2023 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, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic 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) 2023 2022 2021 Numerator: Net income/(loss) € (164,476) € (127,218) € 10,704 Denominator: Weighted average shares of Class A and Class B common stock outstanding: Basic 344,937 357,551 357,525 Diluted 344,937 357,551 367,240 Net income/(loss) per share: Basic € (0.48) € (0.36) € 0.03 Diluted € (0.48) € (0.36) € 0.03 Diluted weighted average common shares outstanding in 2023 and 2022 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, 2023 | |
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, 2023 were as follows: By Period (in thousands) Total Less than 1 to 3 years 3 to 5 years More than Purchase obligations € 26,845 € 14,539 € 12,266 € 40 € — 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. On April 22, 2022, the Australian Federal Court issued a judgment ordering us to pay a penalty of AUD 44.7 million. The court also ordered us to cover the ACCC's costs arising from the proceeding and enjoined us from engaging in misleading conduct of the type found by the Australian Federal Court to be in contravention of the ACL. We paid the penalty balance of €29.6 million (AUD 44.7 million) in the second quarter of 2022 and costs arising from the proceedings. In addition, two purported class actions have been filed in Israel and Ontario, Canada, making allegations about our advertising and/or display practices, such as search results rankings and algorithms, and discount claims. Plaintiffs’ motion for class certification in the Ontario action was denied on November 28, 2022. Plaintiffs have since filed a notice of appeal asking that the motion for class certification be granted. A hearing regarding that appeal took place on November 17, 2023, with a decision still pending. A case management hearing in the class action filed in Israel recently took place. The matter remains at a relatively early stage. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
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 upon fourteen The related party trade receivable balances with Expedia Group and its subsidiaries reflected in our consolidated balance sheets as of December 31, 2023 and 2022 were €19.1 million and €24.4 million. As further described in Note 11 - Stockholders' equity , a one-time extraordinary dividend totaling €184.4 million was distributed to Class A and Class B shareholders of record on November 3, 2023. Of the total amount, €110.6 million has been distributed to Expedia Group based on their share ownership on the date of record. 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. During the years ended December 31, 2023, 2022 and 2021, we did not utilize this service agreement. Services and support agreements 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. This agreement was terminated on October 31, 2023 and a new agreement was effective as of November 1, 2023 with Expedia Group International Holdings III, LLC, (“EGIH3”). EGIH3 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 30 days prior notice. Effective January 1, 2023, we entered into a Management Services Agreement with Expedia, Inc., pursuant to which Expedia, Inc. agreed to provide us with certain services in connection with tax, accounting, finance, legal, operations, administrative and similarly related functions. Either party may terminate the Management Services Agreement upon 30 days prior notice. For the years ended December 31, 2023, 2022 and 2021, our operating expenses include €0.2 million each period of related party shared services fees and amounts related to the services and support agreements detailed above. UBIO Limited On November 28, 2022, we entered into a commercial agreement with UBIO Limited, an equity method investment (see Note 3 - Acquisitions and other investments ), to increase the number of directly bookable rates available on our website for an initial term of 12 months. This agreement was terminated in the last quarter of 2023 by providing a 90 days written notice ahead of the contract renewal date. Effective January 11, 2024, we entered into a new commercial agreement with UBIO Limited. See Note 17 - Subsequent events for further details. For the years ended December 31, 2023 and 2022, our operating expenses include €1.5 million and €0.5 million related to the original commercial agreement. Transactions with shareholders In November 2022, we purchased 20,000,000 Class A shares from Peter Vinnemeier, one of our founders, for €19.3 million (USD 1.00 per share). The purchase of shares was funded from available working capital. See Note 11 - Stockholders' equity for further details. Following this share purchase, transactions with Mr. Vinnemeier are no longer related party transactions. As further described in Note 11 - Stockholders' equity , a one-time extraordinary dividend totaling €184.4 million was distributed to Class A and Class B shareholders of record on November 3, 2023. Of the total amount, €15.1 million has been distributed to Rolf Schrömgens, one of our founders and a member of our supervisory board, based on his share ownership on the date of record. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2023 | |
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, Brazil, Canada, Chile, Colombia, Ecuador, Mexico, Peru, the United States and Uruguay. Our Developed Europe segment is comprised of Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, 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 Japan, Turkey, Australia, Hong Kong 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, 2023, 2022 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, 2023 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 215,687 € 176,404 € 84,749 € — € 476,840 Subscription revenue — — — 2,571 2,571 Other revenue — — — 5,620 5,620 Total revenue € 215,687 € 176,404 € 84,749 € 8,191 € 485,031 Advertising spend 147,713 118,965 56,469 — 323,147 ROAS contribution € 67,974 € 57,439 € 28,280 € 8,191 € 161,884 Costs and expenses: Cost of revenue, including related party, excluding amortization 11,971 Other selling and marketing, including related party (1) 22,492 Technology and content, including related party 49,020 General and administrative, including related party 38,726 Amortization of intangible assets 135 Impairment of intangible assets and goodwill 196,127 Operating loss € (156,587) Other income/(expense) Interest expense (12) Interest income 5,213 Other, net (478) Total other income/(expense), net € 4,723 Loss before income taxes € (151,864) Expense for income taxes 12,391 Loss before equity method investment € (164,255) Loss from equity method investment (221) Net loss € (164,476) (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2022 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 237,692 € 216,406 € 67,692 € — € 521,790 Subscription revenue — — — 3,398 3,398 Other revenue — — — 9,816 9,816 Total revenue € 237,692 € 216,406 € 67,692 € 13,214 € 535,004 Advertising spend 149,823 131,638 35,862 — 317,323 ROAS contribution € 87,869 € 84,768 € 31,830 € 13,214 € 217,681 Costs and expenses: Cost of revenue, including related party, excluding amortization 12,691 Other selling and marketing, including related party (1) 24,701 Technology and content, including related party 54,921 General and administrative, including related party 60,852 Amortization of intangible assets 136 Impairment of intangible assets and goodwill 184,642 Operating loss € (120,262) Other income/(expense) Interest expense (51) Interest income 622 Other, net (556) Total other income/(expense), net € 15 Loss before income taxes € (120,247) Expense for income taxes 6,570 Loss before equity method investment € (126,817) Loss from equity method investment (401) Net loss € (127,218) (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) Interest income 174 Other, net 13,454 Total other income/(expense), net € 13,239 Income before income taxes € 23,290 Expense for income taxes 12,586 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, 2023, 2022 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) 2023 2022 2021 Total revenues United States € 106,032 € 139,885 € 102,687 Germany 45,209 52,789 42,301 United Kingdom 55,867 68,554 41,389 Canada 29,240 31,899 11,862 Japan 39,016 19,200 5,999 All other countries 209,667 222,677 157,227 € 485,031 € 535,004 € 361,465 The following table presents property and equipment, net for Germany and all other countries, as of December 31, 2023 and 2022: (€ thousands) Years ended December 31, 2023 2022 Property and equipment, net: Germany € 10,040 € 13,012 All other countries 39 63 € 10,079 € 13,075 |
Valuation and qualifying accoun
Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2023 | |
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 2021 Allowance for expected credit losses € 348 € 330 € (20) € 658 2022 Allowance for expected credit losses 658 227 (467) 418 2023 Allowance for expected credit losses 418 640 (122) 936 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events After the date of the balance sheet through the date of issuance of these consolidated financial statements, 689,355 Class A shares were issued as a result of options exercised and RSUs released. Effective January 11, 2024, we entered into a new commercial agreement with UBIO Limited, an equity method investment, to further increase the number of directly bookable rates available on our website for a term of 12 months with subsequent 12 month periods, unless it is terminated by either party with 90 days prior notice at the end of each period. The agreement includes an annual minimum commitment of €1.3 million (GBP 1.1 million). The German federal parliament passed legislation on December 14, 2019 which permits certain research and development projects to be eligible for refundable tax credits. In February 2024 we received a certificate from Bescheinigungsstelle Forschungszulage (BSFZ), the certification center for research grants in Germany, in response to our application filed in April 2023. Certain development costs associated with our website and internal-use software that were capitalized during the development stage between 2020 to 2022 were deemed eligible by BSFZ. We intend to apply for the tax credits in the coming months. The German tax authority may still reject or materially alter the claim. Accordingly, we will not recognize the benefit of the claim amount until the amount is realizable. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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. 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 30 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 Single Euro Payments Area ("SEPA") or credit card. The price per subscription is fixed and determinable when the contract commences. Other Revenue We also earn revenue by offering our advertisers business-to-business (B2B) solutions including: display advertisements, which are recognized as services are provided; access services, which are recognized based on the volume usage; and white label services, which are predominately recognized in accordance with CPC revenue. These revenue streams do not represent a significant portion of our revenue. Deferred revenue Deferred revenue relates to advanced payments received for services provided in future periods, primarily related to subscription services. At December 31, 2021, €2.2 million was recorded as deferred revenue, €2.1 million of which was recognized as revenue during the year ended December 31, 2022. At December 31, 2022, the deferred revenue balance was €1.7 million, €1.7 million of which was recognized as revenue during the year ended December 31, 2023. At December 31, 2023, the deferred revenue balance was €1.2 million. |
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, 2023 and December 31, 2022, 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 and indefinite-lived intangible assets, income taxes, and share-based compensation. |
Cost of revenue | Cost of revenue |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash Our cash and cash equivalents include cash and liquid financial instruments, consisting of time deposit investments, with original maturities of three months or less when purchased. Restricted cash includes cash and cash equivalents that is restricted through legal contracts. Our restricted cash primarily consists of funds held as guarantee in connection with our corporate lease. The carrying value of restricted cash approximates its fair value. The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows: As of December 31, (in thousands) 2023 2022 Cash & cash equivalents € 101,847 € 248,584 Restricted cash included within current assets 342 342 Total € 102,189 € 248,926 |
Accounts receivable | Accounts receivable |
Investments | Investments Our short-term investments consist of term deposit accounts and government bonds with original maturity of more than three but fewer than 12 months. Our long-term investments, classified as investments and other assets, consist of an equity-method investment and term deposits with maturity of more than one year. |
Non-marketable equity investments | Non-marketable equity investments We account for non-marketable equity investments which we exercise significant influence but do not have control using the equity method. Under the equity method, investments are initially recognized at cost and adjusted to reflect the Company’s interest in the investee's net earnings or losses, dividends received and other-than-temporary impairments. Losses are limited to the extent of the Company’s investment in, advances to and commitments for the investee. On a quarterly basis, we perform a qualitative assessment considering impairment indicators to evaluate whether these investments are impaired. Qualitative factors considered include industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, we prepare a quantitative assessment of the fair value of our equity investments, which may include using both the market and income approaches that require judgment and the use of estimates. When our assessment indicates that an impairment, that is also "other-than temporary", exists, we write down our non-marketable equity investments to fair value. |
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. 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 in 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, we have entered into subleases for unoccupied leased office space. We recognize sublease payments on a straight-line basis over the term of the sublease. |
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 th , 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: We assess indefinite-lived intangible assets for impairment annually as of September 30 th , or more frequently, if events and circumstances indicate that an impairment may have occurred. 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. This method requires us to estimate future revenue for the brand, the appropriate royalty savings rate and an applicable discount rate. |
Recoverability of intangible assets with definite lives and other long-lived assets | Recoverability of intangible assets with definite lives and other long-lived assets |
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. |
Interest income | Interest income |
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. Foreign currency transaction gains and losses presented within other income and expense, other, net for the years ended December 31, 2023, 2022 and 2021 were as follows: As of December 31, (in thousands) 2023 2022 2021 Foreign exchange gains/(losses), net € (632) € (228) € 1,554 |
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 9 - Share-based awards and other equity instruments . For certain employee awards classified as liabilities, we remeasure these instruments at fair value at the end of each reporting period, representing the portion of the requisite service period rendered, until the award is settled. 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 option awards 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 RSU awards 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 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). Refer to Note 11 - Stockholders' equity for further discussion on the distribution of the one-time extraordinary dividend paid in November 2023. Subject only to such restrictions, any future determination to pay dividends will be at the discretion of our management board. 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, 2023 and 2022, our reserves restricted for dividend distribution were €154.6 million and €155.2 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 36%, 32% and 25%, respectively, of revenues for the years ended December 31, 2023, 2022 and 2021 and 45% and 49% of total accounts receivable as of December 31, 2023 and 2022. Booking Holdings and its affiliates represent 43%, 49% and 54%, respectively, of revenues for the years ended December 31, 2023, 2022 and 2021 and 25% and 30%, respectively, of total accounts receivable as of December 31, 2023 and 2022. |
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 13 - 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 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 €12.0 million grant from the German government. The German government provided this assistance to compensate for losses incurred as a result of the pandemic. The grant was recognized as other income and presented within the line item other, net in our consolidated statements of operations. |
Treasury stock | Treasury stock The Company records the repurchase of shares of its common stock at cost on the trade date of the transaction. These shares are considered treasury stock, which is a reduction to stockholders’ equity. Treasury stock is included in authorized and issued shares but is not considered outstanding for share count purposes, therefore is excluded from average common shares outstanding for basic and diluted earnings per share. Treasury stock is held for the purpose of reissuance under share-based compensation plans or capital reduction (retirement). When treasury stock is reissued any gains are included as part of additional paid-in capital. Losses upon reissuance reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings (accumulated deficit). We use the first-in-first-out purchase cost to determine the cost of the treasury stock that is reissued. If treasury stock is retired, any cost in excess of par value will be recorded to retained earnings (accumulated deficit). |
Adoption of new accounting pronouncements and Recent accounting policies not yet adopted | Adoption of new accounting pronouncements Measurement of Credit Losses on Financial Instruments . As of January 1, 2023, we have prospectively adopted ASU 2022-02, which expands certain disclosure requirements for public business entities to include the current-period gross write-offs by year of origination for financing receivables and net investment in leases. Past due trade receivables written off that originate on our prior periods are typically not material. The adoption of this new guidance did not have a material impact to our consolidated financial statements. Codification Improvements. In July 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-03 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 and published SEC Staff Accounting Bulletins. The codification improvements applicable to us were adopted effective immediately. The adoption of the new guidance did not have a material impact on our consolidated financial statements. Recent accounting pronouncements not yet adopted Segment Reporting. In November 2023, the FASB issued ASU 2023-07, which modifies the disclosure and presentation requirements of reportable segments. The new guidance requires the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit and loss. In addition, the new guidance enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statement disclosures. Income Taxes. In December 2023, the FASB issued ASU 2023-09 to improve its income tax disclosure requirements. Under the new guidance, public business entities must annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). The new standard is effective for fiscal years beginning after December 15, 2024. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statement disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows: As of December 31, (in thousands) 2023 2022 Cash & cash equivalents € 101,847 € 248,584 Restricted cash included within current assets 342 342 Total € 102,189 € 248,926 |
Restrictions on Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows: As of December 31, (in thousands) 2023 2022 Cash & cash equivalents € 101,847 € 248,584 Restricted cash included within current assets 342 342 Total € 102,189 € 248,926 |
Schedule Of Foreign Currency Transaction Gains and (Losses) | Foreign currency transaction gains and losses presented within other income and expense, other, net for the years ended December 31, 2023, 2022 and 2021 were as follows: As of December 31, (in thousands) 2023 2022 2021 Foreign exchange gains/(losses), net € (632) € (228) € 1,554 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 are classified using the fair value hierarchy in the table below: As of December 31, 2023 Total Level 2 (in thousands) Assets Cash equivalents: Term deposits € 64,123 € 64,123 Short-term investments Term deposits 25,225 25,225 Investments and other assets: Term deposits 1,351 1,351 Total € 90,699 € 90,699 As of December 31, 2022 Total Level 2 (in thousands) Assets Cash equivalents: Term deposits € 159,000 € 159,000 Short-term investments Term deposits 45,000 45,000 Investments and other assets: Term deposits 1,351 1,351 Total € 205,351 € 205,351 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of prepaid expenses and other current assets | As of December 31, (in thousands) 2023 2022 Prepaid advertising € 6,429 € 6,284 Other prepaid expenses 4,393 2,035 Other assets 210 350 Total € 11,032 € 8,669 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | As of December 31, (in thousands) 2023 2022 Leasehold improvements € 4,117 € 6,865 Capitalized software and software development costs 30,065 28,867 Computer equipment 15,375 15,916 Furniture and fixtures 2,999 3,045 Subtotal 52,556 54,693 Less: accumulated depreciation 42,477 42,175 Construction in process — 557 Property and equipment, net € 10,079 € 13,075 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of supplemental information, operating leases | Supplemental information related to operating leases was as follows: As of December 31, (in thousands) 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities € 3,722 € 3,828 |
Schedule of supplemental consolidated balance sheet information, operating leases | Supplemental consolidated balance sheet information related to leases were as follows: As of December 31, (in thousands) 2023 2022 Operating lease right-of-use assets € 42,273 € 45,028 Current operating lease liabilities € 2,301 € 4,538 Long-term operating lease liabilities € 38,434 € 40,729 Total operating lease liabilities € 40,735 € 45,267 Weighted average remaining lease term 14.4 years 14.6 years Weighted average discount rate 3.4 % 3.4 % |
Schedule of maturities of operating lease liabilities | Maturities of operating lease liabilities are as follows: Year ended December 31, (in thousands) 2023 2024 € 3,656 2025 3,640 2026 3,560 2027 3,560 2028 3,560 2029 and thereafter 33,520 Total lease payments 51,496 Less: imputed interest (10,761) Total € 40,735 |
Goodwill and intangible asset_2
Goodwill and intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022: Year ended December 31, (in thousands) 2023 2022 Goodwill € — € 181,927 Intangible assets with indefinite lives 75,345 89,545 Intangible assets with definite lives, net 269 404 Total € 75,614 € 271,876 |
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, 2022 € 200,067 € 86,472 € — € 286,539 Foreign exchange translation 26 4 — 30 Impairment charge (104,642) — — (104,642) Balance as of December 31, 2022 € 95,451 € 86,476 € — € 181,927 Balance as of January 1, 2023 € 95,451 € 86,476 € — € 181,927 Impairment charge (95,451) (86,476) — (181,927) Balance as of December 31, 2023 € — € — € — € — |
Components of intangible assets with definite lives | The following table presents the components of our intangible assets with definite lives as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 (in thousands) Cost (Accumulated Amortization) Net Cost (Accumulated Amortization) Net Trademark/domain € 675 € (406) € 269 € 675 € (271) € 404 Total € 675 € (406) € 269 € 675 € (271) € 404 |
Share-based awards and other _2
Share-based awards and other equity instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 27,357,798 2.30 10 23,179 Granted 20,879,816 0.63 Exercised (1) 12,276,176 0.06 Cancelled 5,043,983 0.76 Balance as of December 31, 2023 30,917,455 2.25 7 3,074 Exercisable as of December 31, 2023 7,978,490 7.00 9 377 (1) Inclusive of 6,407,312 options withheld due to net share settlements to satisfy required employee tax withholding requirements. Potential shares which had been convertible under options that were withheld under net share settlements remain in the authorized but unissued pool under the 2016 Omnibus Incentive Plan and can be issued by the Company. Total payments for the employees' tax obligations to the taxing authorities due to net share settlements are reflected as a financing activity within the consolidated statements of cash flows. The following table summarizes information about share options vested and expected to vest as of December 31, 2023: Fully Vested and Expected to Vest Options Weighted Remaining Aggregate (in €) (In years) (€ in thousands) Outstanding 22,757,455 2.83 7 2,294 Currently Exercisable 7,978,490 7.00 9 377 |
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, 2023 2,972,024 1.94 6 Granted 1,446,392 1.57 Vested (1) 1,092,205 1.85 Cancelled 1,123,436 1.69 Balance as of December 31, 2023 2,202,775 1.79 6 (1) Inclusive of 310,268 RSUs withheld due to net share settlements to satisfy required employee tax withholding requirements. Potential shares which had been convertible under RSUs that were withheld under net share settlements remain in the authorized but unissued pool under the 2016 Omnibus Incentive Plan and can be issued by the Company. Total payments for the employees' tax obligations to the taxing authorities due to net share settlements are reflected as a financing activity within the consolidated statements of cash flows. |
Schedule of stock options valuation assumptions | The fair value of share awards granted during the years ended December 31, 2023, 2022 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, 2023 2022 2021 Risk-free interest rate 3.31 % 1.04 % (0.46) % Expected volatility 68 % 69 % 71 % Expected life (in years) 4.96 4.31 4.41 Dividend yield — % — % — % Weighted-average estimated fair value of options granted during the year € 1 € 1 € 4 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 2021 Current income tax expense: Germany € 15,883 € 26,239 € 3,729 Other countries 9 65 1 Current income tax expense € 15,892 € 26,304 € 3,730 Deferred income tax expense/(benefit): Germany (3,501) (19,763) 8,914 Other countries — 29 (58) Deferred income tax expense/(benefit) € (3,501) € (19,734) € 8,856 Income tax expense € 12,391 € 6,570 € 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) 2023 2022 2021 Germany € (151,890) € (119,273) € 23,387 Other countries 26 (974) (97) Income/(loss) before income taxes € (151,864) € (120,247) € 23,290 |
Schedule of effective income tax rate reconciliation | A reconciliation of amounts computed by applying the German statutory income tax rate of 31.2% to income/(loss) before income taxes to total income tax expense is as follows: Year ended December 31, (€ thousands) 2023 2022 2021 Income/(loss) before income taxes € (151,864) € (120,247) € 23,290 Income tax expense/(benefit) at German tax rate (47,419) (37,547) 7,272 Foreign rate differential (1) 175 17 Expected tax expense/(benefit) € (47,420) € (37,372) € 7,289 Tax effect from: Non-deductible share-based compensation € 2,968 € 4,791 € 5,390 Deductible share-based compensation liability awards (401) — — Non-deductible corporate costs 1,013 234 121 Goodwill impairment 56,807 32,674 — Prior period taxes (5) 192 (294) Movement in valuation allowance 13 (57) 80 Movement in uncertain tax positions (686) 6,311 56 Income tax effect resulting from weekengo asset deal transaction — — 1,938 Initial recognition of tax deductible goodwill and intangibles — — (1,938) Other differences 102 (203) (56) Income tax expense € 12,391 € 6,570 € 12,586 |
Schedule of uncertain tax positions | Uncertain tax positions as of December 31, 2023 and 2022 were as follows: Year Ended December 31, (€ thousands) 2023 2022 Balance, beginning of year € 9,238 € 2,927 Increases to tax positions related to the current year — 6,289 Decreases to tax positions related to prior years (720) — Interest and penalties 34 22 Balance, end of year € 8,552 € 9,238 |
Schedule of deferred tax assets and liabilities | December 31, 2023 and 2022, the significant components of our deferred tax assets and deferred tax liabilities were as follows: Year Ended December 31, (€ thousands) 2023 2022 Deferred tax assets: Net operating loss and tax credit carryforwards 1,339 1,329 Accrued expenses and other current liabilities — 42 Operating lease liability 14,705 14,135 Other long-term liabilities 33 35 Deferred tax assets (gross) € 16,077 € 15,541 Less valuation allowance (1,339) (1,329) Subtotal € 14,738 € 14,212 Offsetting (14,738) (14,212) Deferred tax assets € — € — Deferred tax liabilities: Cash and cash equivalents — 51 Prepaid expense and other current assets 437 163 Intangible assets, net 23,332 27,771 Property and equipment 2,108 2,129 Operating lease right-of-use assets 15,185 14,060 Accrued expenses and other current liabilities 160 — Other long-term liabilities 18 — Other 47 88 Subtotal € 41,287 € 44,262 Offsetting (14,738) (14,212) Deferred tax liabilities € 26,549 € 30,050 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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) 2023 2022 2021 Numerator: Net income/(loss) € (164,476) € (127,218) € 10,704 Denominator: Weighted average shares of Class A and Class B common stock outstanding: Basic 344,937 357,551 357,525 Diluted 344,937 357,551 367,240 Net income/(loss) per share: Basic € (0.48) € (0.36) € 0.03 Diluted € (0.48) € (0.36) € 0.03 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term purchase commitment | Commitments and obligations as of December 31, 2023 were as follows: By Period (in thousands) Total Less than 1 to 3 years 3 to 5 years More than Purchase obligations € 26,845 € 14,539 € 12,266 € 40 € — |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following tables present our segment information for the years ended December 31, 2023, 2022 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, 2023 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 215,687 € 176,404 € 84,749 € — € 476,840 Subscription revenue — — — 2,571 2,571 Other revenue — — — 5,620 5,620 Total revenue € 215,687 € 176,404 € 84,749 € 8,191 € 485,031 Advertising spend 147,713 118,965 56,469 — 323,147 ROAS contribution € 67,974 € 57,439 € 28,280 € 8,191 € 161,884 Costs and expenses: Cost of revenue, including related party, excluding amortization 11,971 Other selling and marketing, including related party (1) 22,492 Technology and content, including related party 49,020 General and administrative, including related party 38,726 Amortization of intangible assets 135 Impairment of intangible assets and goodwill 196,127 Operating loss € (156,587) Other income/(expense) Interest expense (12) Interest income 5,213 Other, net (478) Total other income/(expense), net € 4,723 Loss before income taxes € (151,864) Expense for income taxes 12,391 Loss before equity method investment € (164,255) Loss from equity method investment (221) Net loss € (164,476) (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2022 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 237,692 € 216,406 € 67,692 € — € 521,790 Subscription revenue — — — 3,398 3,398 Other revenue — — — 9,816 9,816 Total revenue € 237,692 € 216,406 € 67,692 € 13,214 € 535,004 Advertising spend 149,823 131,638 35,862 — 317,323 ROAS contribution € 87,869 € 84,768 € 31,830 € 13,214 € 217,681 Costs and expenses: Cost of revenue, including related party, excluding amortization 12,691 Other selling and marketing, including related party (1) 24,701 Technology and content, including related party 54,921 General and administrative, including related party 60,852 Amortization of intangible assets 136 Impairment of intangible assets and goodwill 184,642 Operating loss € (120,262) Other income/(expense) Interest expense (51) Interest income 622 Other, net (556) Total other income/(expense), net € 15 Loss before income taxes € (120,247) Expense for income taxes 6,570 Loss before equity method investment € (126,817) Loss from equity method investment (401) Net loss € (127,218) (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) Interest income 174 Other, net 13,454 Total other income/(expense), net € 13,239 Income before income taxes € 23,290 Expense for income taxes 12,586 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, 2023, 2022 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) 2023 2022 2021 Total revenues United States € 106,032 € 139,885 € 102,687 Germany 45,209 52,789 42,301 United Kingdom 55,867 68,554 41,389 Canada 29,240 31,899 11,862 Japan 39,016 19,200 5,999 All other countries 209,667 222,677 157,227 € 485,031 € 535,004 € 361,465 The following table presents property and equipment, net for Germany and all other countries, as of December 31, 2023 and 2022: (€ thousands) Years ended December 31, 2023 2022 Property and equipment, net: Germany € 10,040 € 13,012 All other countries 39 63 € 10,079 € 13,075 |
Valuation and qualifying acco_2
Valuation and qualifying accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2021 Allowance for expected credit losses € 348 € 330 € (20) € 658 2022 Allowance for expected credit losses 658 227 (467) 418 2023 Allowance for expected credit losses 418 640 (122) 936 |
Organization and basis of pre_2
Organization and basis of presentation (Details) - Trivago N.V. - Expedia | Dec. 31, 2023 | Dec. 31, 2022 |
Subsidiary, Sale of Stock [Line Items] | ||
Ownership interest, parent, percentage | 60% | 61.20% |
Voting interest, parent, percentage | 84.10% | 84.30% |
Significant accounting polici_4
Significant accounting policies - Narrative (Details) € in Thousands | 12 Months Ended | |||
Dec. 31, 2023 EUR (€) reporting_unit segment | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | ||
Significant Accounting Policies [Line Items] | ||||
Deferred revenue | € 1,176 | € 1,689 | € 2,200 | |
Revenue recognized that was included in beginning deferred revenue balance | 1,700 | 2,100 | ||
Amortization of intangible assets | [1] | € 135 | 136 | 136 |
Number of reporting units | reporting_unit | 3 | |||
Number of operating segments | segment | 3 | |||
Reserves restricted for dividend distribution | € 154,600 | 155,200 | ||
Grant received from German government | € (478) | € (556) | 13,454 | |
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 | 36% | 32% | 25% | |
Customer Concentration Risk | Expedia | Accounts Receivable | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 45% | 49% | ||
Customer Concentration Risk | Booking Holdings | Revenue | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 43% | 49% | 54% | |
Customer Concentration Risk | Booking Holdings | Accounts Receivable | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 25% | 30% | ||
Software Development Costs | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment useful life (in years) | 3 years | |||
Software Enhancement Costs | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment useful life (in years) | 3 years | |||
Acquired technology | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization of intangible assets | € 135 | € 136 | € 136 | |
Internal use software and website development costs | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization of intangible assets | € 3,100 | € 4,100 | € 5,000 | |
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Performance obligation payment terms | 10 days | |||
Accounts receivable due, number of days | 10 days | |||
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 (in years) | 3 years | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Performance obligation payment terms | 30 days | |||
Accounts receivable due, number of days | 30 days | |||
Intangible asset, useful life (in years) | 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 (in years) | 8 years | |||
[1] (2) Includes amortization as follows: Amortization of internal use software costs included in € — € 8 € 98 Amortization of internal use software and website development costs included in technology and content 3,085 4,019 4,566 Amortization of internal use software costs included in general and administrative — 104 313 Amortization of acquired technology included in amortization of intangible assets 135 136 136 |
Significant accounting polici_5
Significant accounting policies - Reconciliation of cash, cash equivalents, and restricted cash (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | € 101,847 | € 248,584 | ||
Restricted cash included within current assets | 342 | 342 | ||
Total | € 102,189 | € 248,926 | € 256,719 | € 210,771 |
Significant accounting polici_6
Significant accounting policies - Schedule of foreign currency gains and losses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Foreign exchange gains/(losses), net | € (632) | € (228) | € 1,554 |
Acquisitions and other invest_2
Acquisitions and other investments - Narrative, Acquisitions (Details) - EUR (€) € in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 12, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Loss on contract termination | € 0.5 | |||
Weekengo GmbH | ||||
Business Acquisition [Line Items] | ||||
Percentage of equity interest acquired | 100% | |||
Consideration for shares acquired | € 6.7 | |||
Consideration for domain and trademark acquired | 0.7 | |||
Payments to acquire businesses | € 7.4 | |||
Increase in deferred tax assets, measurement period adjustment | € 1.5 | |||
Deferred tax liabilities, measurement period adjustment | 0.3 | |||
Decrease in goodwill, measurement period adjustment | € 1.2 | |||
Revenue of acquiree | € 0.2 | |||
Operating losses of acquiree | € (2.3) |
Acquisitions and other invest_3
Acquisitions and other investments - Narrative, Other investments (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Apr. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investment in equity-method investees | € 0 | € 5,951 | € 0 | |
UBIO Limited | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 20.80% | |||
Equity method investment, ownership percentage, fully diluted | 15.50% | |||
Investment in equity-method investees | € 5,900 | |||
Equity method investment, carrying value in excess of net assets | 5,800 | |||
Equity method investment, basis difference, intangible assets | (2,200) | |||
Equity method investment, basis difference, tax basis differences to be recovered | (400) | |||
Equity method investment, basis difference, goodwill | € 4,000 |
Fair value measurement (Details
Fair value measurement (Details) - Recurring - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term investments | ||
Term deposits | € 25,225 | € 45,000 |
Investments and other assets: | ||
Term deposits | 1,351 | 1,351 |
Total | 90,699 | 205,351 |
Deposits | ||
Cash equivalents: | ||
Cash equivalents | 64,123 | 159,000 |
Level 2 | ||
Short-term investments | ||
Term deposits | 25,225 | 45,000 |
Investments and other assets: | ||
Term deposits | 1,351 | 1,351 |
Total | 90,699 | 205,351 |
Level 2 | Deposits | ||
Cash equivalents: | ||
Cash equivalents | € 64,123 | € 159,000 |
Fair value measurement - Narrat
Fair value measurement - Narrative (Details) € in Thousands | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2023 EUR (€) reporting_unit | Dec. 31, 2022 EUR (€) | Dec. 31, 2023 EUR (€) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of goodwill | € 181,927 | € 104,642 | |
Impairment of indefinite-lived intangible assets | € 14,200 | € 80,000 | € 94,200 |
Number of reporting units | reporting_unit | 3 | ||
Measurement Input, Royalty Savings Rate | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Royalty savings rate, percentage | 0.03 | 0.03 | |
Measurement Input, Royalty Savings Rate | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Royalty savings rate, percentage | 0.04 | 0.04 |
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, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid advertising | € 6,429 | € 6,284 |
Other prepaid expenses | 4,393 | 2,035 |
Other assets | 210 | 350 |
Total | € 11,032 | € 8,669 |
Prepaid expenses and other cu_4
Prepaid expenses and other current assets - Narrative (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Prepaid advertising | € 6,429 | € 6,284 |
Marketing Sponsorship Agreement | ||
Business Acquisition [Line Items] | ||
Prepaid advertising | € 4,000 |
Property and equipment, net (De
Property and equipment, net (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | € 42,477 | € 42,175 |
Property and equipment, net | 10,079 | 13,075 |
Depreciable Property, Plant And Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 52,556 | 54,693 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,117 | 6,865 |
Capitalized software and software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 30,065 | 28,867 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,375 | 15,916 |
Property and equipment, net | 800 | 1,300 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,999 | 3,045 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | € 0 | € 557 |
Property and equipment, net - N
Property and equipment, net - Narrative (Details) - EUR (€) € in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Net book value of long-lived assets transferred | € 2,100 | ||
Property and equipment, net | € 13,075 | € 10,079 | |
Termination, May 31, 2023 | |||
Property, Plant and Equipment [Line Items] | |||
Accrued penalty | € 2,300 | ||
Software Development Costs | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | 5,300 | 5,400 | |
Asset impairment charges | 900 | ||
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | € 1,300 | € 800 |
Leases - Narrative (Details)
Leases - Narrative (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | ||||
Option to extend term (in years) | 10 years | |||
Operating lease cost | € 4.2 | € 4.9 | € 5.1 | |
Variable lease costs | 0.4 | 0.2 | 0.4 | |
Sublease income | € 0.1 | € 0.1 | € 0.1 | |
Termination, May 31, 2023 | ||||
Lessee, Lease, Description [Line Items] | ||||
Accrued penalty | € 2.3 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term (in years) | 2 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease term (in years) | 14 years |
Leases - Supplemental informati
Leases - Supplemental information, operating leases (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | € 3,722 | € 3,828 |
Leases - Supplemental consolida
Leases - Supplemental consolidated balance sheet information, operating leases (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use assets | € 42,273 | € 45,028 |
Current operating lease liabilities | 2,301 | 4,538 |
Long-term operating lease liabilities | 38,434 | 40,729 |
Total operating lease liabilities | € 40,735 | € 45,267 |
Weighted average remaining lease term | 14 years 4 months 24 days | 14 years 7 months 6 days |
Weighted average discount rate | 3.40% | 3.40% |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | € 3,656 | |
2025 | 3,640 | |
2026 | 3,560 | |
2027 | 3,560 | |
2028 | 3,560 | |
2029 and thereafter | 33,520 | |
Total lease payments | 51,496 | |
Less: imputed interest | (10,761) | |
Total operating lease liabilities | € 40,735 | € 45,267 |
Goodwill and intangible asset_3
Goodwill and intangible assets, net - Summary (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | € 0 | € 181,927 | € 286,539 |
Intangible assets with indefinite lives | 75,345 | 89,545 | |
Intangible assets with definite lives, net | 269 | 404 | |
Total | € 75,614 | € 271,876 |
Goodwill and intangible asset_4
Goodwill and intangible assets, net - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | ||
Goodwill [Line Items] | |||||
Goodwill and intangible assets impairment loss | € 196,127 | € 184,642 | € 0 | ||
Impairment of goodwill | 181,927 | 104,642 | |||
Impairment of indefinite-lived intangible assets | 14,200 | 80,000 | € 94,200 | ||
Accumulated impairment losses of goodwill | € 494,200 | € 312,300 | 494,200 | ||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill and intangible assets impairment loss | Goodwill and intangible assets impairment loss | |||
Amortization of intangible assets | [1] | € 135 | € 136 | € 136 | |
2024 | 100 | 100 | |||
2025 | 100 | € 100 | |||
Developed Europe | |||||
Goodwill [Line Items] | |||||
Impairment of goodwill | 95,500 | € 104,600 | |||
Americas | |||||
Goodwill [Line Items] | |||||
Impairment of goodwill | € 86,500 | ||||
[1] (2) Includes amortization as follows: Amortization of internal use software costs included in € — € 8 € 98 Amortization of internal use software and website development costs included in technology and content 3,085 4,019 4,566 Amortization of internal use software costs included in general and administrative — 104 313 Amortization of acquired technology included in amortization of intangible assets 135 136 136 |
Goodwill and intangible asset_5
Goodwill and intangible assets, net - Goodwill rollforward (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | € 181,927 | € 286,539 |
Foreign exchange translation | 30 | |
Impairment charge | (181,927) | (104,642) |
Goodwill, ending balance | 0 | 181,927 |
Developed Europe | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 95,451 | 200,067 |
Foreign exchange translation | 26 | |
Impairment charge | (95,451) | (104,642) |
Goodwill, ending balance | 0 | 95,451 |
Americas | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 86,476 | 86,472 |
Foreign exchange translation | 4 | |
Impairment charge | (86,476) | 0 |
Goodwill, ending balance | 0 | 86,476 |
Rest of World | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 0 |
Foreign exchange translation | 0 | |
Impairment charge | 0 | 0 |
Goodwill, ending balance | € 0 | € 0 |
Goodwill and intangible asset_6
Goodwill and intangible assets, net - Intangible Assets with Definite Lives (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | € 675 | € 675 |
(Accumulated Amortization) | (406) | (271) |
Intangible assets with definite lives, net | 269 | 404 |
Trademark/domain | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 675 | 675 |
(Accumulated Amortization) | (406) | (271) |
Intangible assets with definite lives, net | € 269 | € 404 |
Share-based awards and other _3
Share-based awards and other equity instruments - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||
May 09, 2023 shares | Jul. 11, 2022 shares | Dec. 31, 2023 EUR (€) shares | Jun. 30, 2023 EUR (€) | Dec. 31, 2023 EUR (€) shares | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2016 member | Nov. 02, 2023 € / shares | Nov. 02, 2023 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Intrinsic value of shares exercised | € 12,400,000 | € 3,100,000 | € 10,800,000 | |||||||
Number of awards cancelled (in shares) | shares | 2,032,743 | |||||||||
Granted (in shares) | shares | 20,879,816 | |||||||||
Reduction in strike price (in dollars per share) | $ / shares | $ 0.57 | |||||||||
Dividends payable (in euros per share) | € / shares | € 0.53 | |||||||||
Share-based compensation reclassified from equity to liability | € 1,300,000 | € 1,300,000 | ||||||||
Share-based compensation | 9,500,000 | 15,300,000 | 17,300,000 | |||||||
Income tax benefit related to share-based compensation expense | 0 | 0 | 0 | |||||||
Proceeds from exercise of option awards | 365,000 | € 118,000 | € 1,270,000 | |||||||
Unrecognized share-based compensation expense | 15,700,000 | € 15,700,000 | ||||||||
Unrecognized share-based compensation expense, period for recognition | 2 years 6 months | |||||||||
Employee-Related Liabilities, Current | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation reclassified from equity to liability | 1,100,000 | € 1,100,000 | ||||||||
Other Noncurrent Liabilities | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation reclassified from equity to liability | 200,000 | € 200,000 | ||||||||
Chief Executive Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Reduction to stock-based compensation expense | 1,000,000 | € 1,300,000 | ||||||||
Chief Financial Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Reduction to stock-based compensation expense | € 300,000 | |||||||||
Employee Stock Option, Market-Based | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | shares | 8,160,000 | |||||||||
Employee Stock Option, Service-Based | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | shares | 12,240,000 | |||||||||
Award vesting period (in years) | 3 years | |||||||||
Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based payment award, term (in years) | 10 years | |||||||||
Maximum | RSUs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 3 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 | 59,635,698 | ||||||||
Number of supervisory board members in plan administration committee | member | 2 | |||||||||
Share-based payment award, term (in years) | 10 years |
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, 2023 | Dec. 31, 2022 | |
Options | ||
Beginning balance (in shares) | 27,357,798 | |
Granted (in shares) | 20,879,816 | |
Exercised (in shares) | 12,276,176 | |
Canceled (in shares) | 5,043,983 | |
Ending balance (in shares) | 30,917,455 | 27,357,798 |
Exercisable (in shares) | 7,978,490 | |
Weighted average exercise price | ||
Beginning balance (in EUR per share) | € 2.30 | |
Granted (in EUR per share) | 0.63 | |
Exercised (in EUR per share) | 0.06 | |
Canceled (in EUR per share) | 0.76 | |
Ending balance, Weighted average exercise price (in EUR per share) | 2.25 | € 2.30 |
Exercisable (in EUR per share) | € 7 | |
Remaining contractual life and Aggregate intrinsic value | ||
Outstanding, remaining contractual life (in years) | 7 years | 10 years |
Exercisable, remaining contractual life (in years) | 9 years | |
Beginning balance, aggregate intrinsic value | € 23,179 | |
Ending balance, aggregate intrinsic value | 3,074 | € 23,179 |
Exercisable, aggregate intrinsic value | € 377 | |
Shares withheld for tax withholding obligation | 6,407,312 |
Share-based awards and other _5
Share-based awards and other equity instruments - Stock options vested and expected to vest (Details) € / shares in Units, € in Thousands | 12 Months Ended |
Dec. 31, 2023 EUR (€) € / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Outstanding (in shares) | shares | 22,757,455 |
Outstanding (in EUR per share) | € / shares | € 2.83 |
Outstanding, remaining contractual life (in years) | 7 years |
Outstanding, aggregate intrinsic value | € | € 2,294 |
Currently exercisable (in shares) | shares | 7,978,490 |
Currently exercisable (in EUR per share) | € / shares | € 7 |
Currently exercisable, remaining contractual life (in years) | 9 years |
Currently exercisable, aggregate intrinsic value | € | € 377 |
Share-based awards and other _6
Share-based awards and other equity instruments - RSUs activity (Details) - € / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Weighted Average Grant Date Fair Value | ||
Shares withheld for tax withholding obligation | 6,407,312 | |
RSUs | ||
RSUs | ||
Beginning balance (in shares) | 2,972,024 | |
Granted (in shares) | 1,446,392 | |
Vested (in shares) | 1,092,205 | |
Cancelled (in shares) | 1,123,436 | |
Ending balance (in shares) | 2,202,775 | 2,972,024 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in EUR per share) | € 1.94 | |
Granted (in EUR per share) | 1.57 | |
Vested (in EUR per share) | 1.85 | |
Cancelled (in EUR per share) | 1.69 | |
Ending balance (in EUR per share) | € 1.79 | € 1.94 |
Remaining contractual life | 6 years | 6 years |
Shares withheld for tax withholding obligation | 310,268 |
Share-based awards and other _7
Share-based awards and other equity instruments - Stock options fair value assumptions (Details) - € / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 3.31% | 1.04% | (0.46%) |
Expected volatility | 68% | 69% | 71% |
Expected life (in years) | 4 years 11 months 15 days | 4 years 3 months 21 days | 4 years 4 months 28 days |
Dividend yield | 0% | 0% | 0% |
Weighted-average estimated fair value of options granted during the year (in EUR per share) | € 1 | € 1 | € 4 |
Income taxes - Components of in
Income taxes - Components of income tax expense/(benefit) (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax expense: | |||
Germany | € 15,883 | € 26,239 | € 3,729 |
Other countries | 9 | 65 | 1 |
Current income tax expense | 15,892 | 26,304 | 3,730 |
Deferred income tax expense/(benefit): | |||
Germany | (3,501) | (19,763) | 8,914 |
Other countries | 0 | 29 | (58) |
Deferred income tax expense/(benefit) | (3,501) | (19,734) | 8,856 |
Income tax expense | € 12,391 | € 6,570 | € 12,586 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate, percent | 31.20% | 31.20% | 31.20% |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Germany | € (151,890) | € (119,273) | € 23,387 |
Other countries | 26 | (974) | (97) |
Income/(loss) before income taxes | (151,864) | (120,247) | 23,290 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense/(benefit) at German tax rate | (47,419) | (37,547) | 7,272 |
Foreign rate differential | (1) | 175 | 17 |
Expected tax expense/(benefit) | (47,420) | (37,372) | 7,289 |
Tax effect from: | |||
Non-deductible share-based compensation | 2,968 | 4,791 | 5,390 |
Deductible share-based compensation liability awards | (401) | 0 | 0 |
Non-deductible corporate costs | 1,013 | 234 | 121 |
Goodwill impairment | 56,807 | 32,674 | 0 |
Prior period taxes | (5) | 192 | (294) |
Movement in valuation allowance | 13 | (57) | 80 |
Movement in uncertain tax positions | (686) | 6,311 | 56 |
Income tax effect resulting from weekengo asset deal transaction | 0 | 0 | 1,938 |
Initial recognition of tax deductible goodwill and intangibles | 0 | 0 | (1,938) |
Other differences | 102 | (203) | (56) |
Income tax expense | € 12,391 | € 6,570 | € 12,586 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - EUR (€) € in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Operating Loss Carryforwards [Line Items] | ||||
Expense for income taxes | € 12,391 | € 6,570 | € 12,586 | |
Effective tax rate, percentage | (8.20%) | (5.50%) | 54% | |
Share-based compensation | € 9,500 | € 15,300 | € 17,300 | |
Impact of non-deductible share-based compensation on effective tax rate, percentage | (2.00%) | (4.00%) | 23.10% | |
Share-based compensation reclassified from equity to liability | € 1,300 | € 1,300 | ||
Impact of deductible share-based compensation on effective tax rate, percentage | 0.30% | |||
Goodwill impairment loss | € 181,900 | € 104,600 | ||
Impact of non-deductible impairment expense on goodwill on effective tax rate, percentage | (37.40%) | (27.20%) | ||
Movement in uncertain tax positions | € (686) | € 6,311 | € 56 | |
Impact of movement in uncertain tax positions on effective tax rate, percent | 0.50% | |||
Income tax effect resulting from weekengo asset deal transaction | € 0 | 0 | 1,938 | |
Current tax expense | 15,892 | 26,304 | 3,730 | |
Net operating loss carryforwards | 1,300 | 1,300 | 1,300 | |
Valuation allowance | 1,339 | 1,329 | 1,339 | |
Intangible assets, net | 23,332 | 27,771 | 23,332 | |
Impairment of indefinite-lived intangible assets | 14,200 | 80,000 | 94,200 | |
Impact of intangible asset impairment losses, amount | (4,400) | |||
Undistributed earnings of foreign subsidiaries | 1,800 | € 1,700 | 1,800 | |
Undistributed earnings in domestic subsidiaries | 18 | € 18 | ||
Trademarks | ||||
Operating Loss Carryforwards [Line Items] | ||||
Impairment of indefinite-lived intangible assets | € 14,200 | |||
German | ||||
Operating Loss Carryforwards [Line Items] | ||||
Undistributed earnings in domestic subsidiaries, percentage | 5% | 5% | ||
Percentage of tax exempt capital gains on sale of participations | 95% | 95% | ||
Weekengo GmbH | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax expense | 1,300 | |||
Current tax expense | € 600 |
Income taxes - Uncertain tax po
Income taxes - Uncertain tax positions (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | € 9,238 | € 2,927 |
Increases to tax positions related to the current year | 0 | 6,289 |
Decreases to tax positions related to prior years | (720) | 0 |
Interest and penalties | 34 | 22 |
Balance, end of year | € 8,552 | € 9,238 |
Income taxes - Deferred income
Income taxes - Deferred income taxes (Details) - EUR (€) € in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss and tax credit carryforwards | € 1,339 | € 1,329 |
Accrued expenses and other current liabilities | 0 | 42 |
Operating lease liability | 14,705 | 14,135 |
Other long-term liabilities | 33 | 35 |
Deferred tax assets (gross) | 16,077 | 15,541 |
Less valuation allowance | (1,339) | (1,329) |
Subtotal | 14,738 | 14,212 |
Offsetting | (14,738) | (14,212) |
Deferred tax assets | 0 | 0 |
Deferred tax liabilities: | ||
Cash and cash equivalents | 0 | 51 |
Prepaid expense and other current assets | 437 | 163 |
Intangible assets, net | 23,332 | 27,771 |
Property and equipment | 2,108 | 2,129 |
Operating lease right-of-use assets | 15,185 | 14,060 |
Accrued expenses and other current liabilities | 160 | 0 |
Other long-term liabilities | 18 | 0 |
Other | 47 | 88 |
Subtotal | 41,287 | 44,262 |
Offsetting | (14,738) | (14,212) |
Deferred tax liabilities | € 26,549 | € 30,050 |
Stockholders' equity (Details)
Stockholders' equity (Details) € / shares in Units, € in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Nov. 03, 2023 EUR (€) | Nov. 30, 2022 EUR (€) shares | May 30, 2022 shares | Dec. 31, 2023 EUR (€) vote_per_share € / shares shares | Dec. 31, 2022 € / shares shares | Dec. 31, 2021 shares | Nov. 17, 2023 | Oct. 31, 2023 | Mar. 01, 2022 shares | |
Class of Stock [Line Items] | |||||||||
Common stock, conversion (in shares) | 1 | ||||||||
Share conversion ratio | 5 | 1 | 1 | ||||||
Dividend paid to shareholders | € | € 184,400 | € 184,381 | |||||||
Treasury stock (in shares) | 0 | 20,000,000 | |||||||
Treasury stock acquired (in shares) | 0 | ||||||||
Treasury stock retired at lower than repurchase price | € | € 18,700 | ||||||||
Rolf Schrömgens | Trivago N.V. | |||||||||
Class of Stock [Line Items] | |||||||||
Ownership interest, noncontrolling owners, percentage | 8.20% | ||||||||
Voting interest, noncontrolling owners, percentage | 11.50% | ||||||||
Messrs. Schrömgens, Vinnemeier and Siewert | Trivago N.V. | |||||||||
Class of Stock [Line Items] | |||||||||
Ownership interest, noncontrolling owners, percentage | 8.30% | ||||||||
Voting interest, noncontrolling owners, percentage | 11.50% | ||||||||
Class A common stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding (in shares) | 110,919,270 | 104,305,225 | |||||||
Class common stock, par value (in EUR per share) | € / shares | € 0.06 | € 0.06 | |||||||
Votes per share | vote_per_share | 1 | ||||||||
Dividends paid (in dollars per share) | € / shares | € 0.529228 | ||||||||
Treasury stock acquired (in shares) | 205,457 | ||||||||
Treasury stock, retired, amount | € | 1,200 | ||||||||
Class A common stock | Peter Vinnemeier | |||||||||
Class of Stock [Line Items] | |||||||||
Treasury stock acquired, including foreign exchange gain, amount | € | € 19,900 | ||||||||
Class A common stock | Peter Vinnemeier | Related Party | |||||||||
Class of Stock [Line Items] | |||||||||
Treasury stock acquired (in shares) | 20,000,000 | ||||||||
Class B common stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding (in shares) | 237,476,895 | 237,476,895 | |||||||
Class common stock, par value (in EUR per share) | € / shares | € 0.60 | € 0.60 | |||||||
Votes per share | vote_per_share | 10 | ||||||||
Shares converted (in shares) | 0 | 24,485,793 | 36,225,279 | ||||||
Dividends paid (in dollars per share) | € / shares | € 0.529228 | ||||||||
American Depositary Shares | |||||||||
Class of Stock [Line Items] | |||||||||
Shares authorized to be repurchased (in shares) | 10,000,000 |
Earnings per share (Details)
Earnings per share (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income/(loss) | € (164,476) | € (127,218) | € 10,704 |
Weighted average shares of Class A and Class B common stock outstanding: | |||
Basic (in shares) | 344,937,000 | 357,551,000 | 357,525,000 |
Diluted (in shares) | 344,937,000 | 357,551,000 | 367,240,000 |
Net income/(loss) per share: | |||
Basic (in Euro per share) | € (0.48) | € (0.36) | € 0.03 |
Diluted (in Euro per share) | € (0.48) | € (0.36) | € 0.03 |
Commitments and contingencies_2
Commitments and contingencies (Details) € in Thousands | Dec. 31, 2023 EUR (€) |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Total | € 26,845 |
Less than 1 year | 14,539 |
1 to 3 years | 12,266 |
3 to 5 years | 40 |
More than 5 years | € 0 |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | |||
Apr. 22, 2022 AUD ($) | Jun. 30, 2023 AUD ($) | Jun. 30, 2023 EUR (€) | Dec. 31, 2023 claim | |
Australian Competition and Consumer Commission (ACCC) | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Penalty judgment | $ | $ 44.7 | |||
Penalty payment | $ 44.7 | € 29.6 | ||
Advertising And Display Practices Allegations | ||||
Loss Contingencies [Line Items] | ||||
Number of claims | claim | 2 |
Related party transactions (Det
Related party transactions (Details) - EUR (€) € / shares in Units, € in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Nov. 03, 2023 | Nov. 01, 2023 | Jan. 01, 2023 | Nov. 30, 2022 | Dec. 31, 2023 | May 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Related Party Transaction [Line Items] | ||||||||||
Revenue | € 485,031 | € 535,004 | € 361,465 | |||||||
Dividend paid to shareholders | € 184,400 | 184,381 | ||||||||
Operating expenses | [1],[2],[3] | € 38,726 | € 60,852 | € 38,208 | ||||||
Treasury stock acquired (in shares) | 0 | |||||||||
Class A common stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Treasury stock acquired (in shares) | 205,457 | |||||||||
Expedia | Revenue | Customer Concentration Risk | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Concentration risk, percentage | 36% | 32% | 25% | |||||||
Related Party | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue | € 172,472 | € 173,307 | € 91,355 | |||||||
Accounts receivable, related party | € 19,094 | 19,094 | 24,432 | |||||||
Related Party | Expedia | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue | 172,500 | 173,300 | 91,300 | |||||||
Accounts receivable, related party | € 19,100 | 19,100 | 24,400 | |||||||
Dividend paid to shareholders | 110,600 | |||||||||
Operating expenses | € 200 | 200 | € 200 | |||||||
Related Party | Expedia | Data Hosting Services Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Termination notice period (in days) | 30 days | |||||||||
Related Party | Expedia | Services and Support Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Termination notice period (in days) | 30 days | |||||||||
Related Party | Expedia | Management Services Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Termination notice period (in days) | 30 days | |||||||||
Related Party | UBIO Limited | Commercial Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Termination notice period (in days) | 90 days | |||||||||
Operating expenses | € 1,500 | € 500 | ||||||||
Related Party | Peter Vinnemeier | Class A common stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Treasury stock acquired (in shares) | 20,000,000 | |||||||||
Treasury stock acquired, value | € 19,300 | |||||||||
Treasury stock acquired (in EUR per share) | € 1 | |||||||||
Related Party | Rolf Schromgens, Founder | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Dividend paid to shareholders | € 15,100 | |||||||||
Minimum | Related Party | Expedia | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Prior notice period on customary commercial terms | 14 days | |||||||||
Maximum | Related Party | Expedia | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Prior notice period on customary commercial terms | 30 days | |||||||||
[1] Year ended December 31, 2023 2022 2021 (1) Includes share-based compensation as follows: Cost of revenue € 146 € 198 € 257 Selling and marketing 463 737 1,104 Technology and content 1,728 2,969 3,897 General and administrative 7,168 11,438 12,003 (2) Includes amortization as follows: Amortization of internal use software costs included in € — € 8 € 98 Amortization of internal use software and website development costs included in technology and content 3,085 4,019 4,566 Amortization of internal use software costs included in general and administrative — 104 313 Amortization of acquired technology included in amortization of intangible assets 135 136 136 (3) Includes related party expense as follows: Selling and marketing € 94 € 97 € 111 Technology and content 1,618 541 48 General and administrative 63 1 — |
Segment information - Narrative
Segment information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | € 485,031 | € 535,004 | € 361,465 | |
Advertising spend | 323,147 | 317,323 | 223,550 | |
ROAS contribution | 161,884 | 217,681 | 137,915 | |
Costs and expenses: | ||||
Cost of revenue, including related party, excluding amortization | [1] | 11,971 | 12,691 | 11,500 |
Other selling and marketing, including related party | 22,492 | 24,701 | 25,646 | |
Technology and content, including related party | [1],[2],[3] | 49,020 | 54,921 | 52,374 |
General and administrative, including related party | [1],[2],[3] | 38,726 | 60,852 | 38,208 |
Amortization of intangible assets | [2] | 135 | 136 | 136 |
Goodwill and intangible assets impairment loss | 196,127 | 184,642 | 0 | |
Operating income/(loss) | (156,587) | (120,262) | 10,051 | |
Other income/(expense) | ||||
Interest expense | (12) | (51) | (389) | |
Interest income | 5,213 | 622 | 174 | |
Other, net | (478) | (556) | 13,454 | |
Total other income/(expense), net | 4,723 | 15 | 13,239 | |
Income (loss) before income taxes | (151,864) | (120,247) | 23,290 | |
Expense for income taxes | 12,391 | 6,570 | 12,586 | |
Income/(loss) before equity method investment | (164,255) | (126,817) | 10,704 | |
Loss from equity method investment | (221) | (401) | 0 | |
Net income/(loss) | (164,476) | (127,218) | 10,704 | |
Operating Segments | Developed Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 215,687 | 237,692 | 163,700 | |
Advertising spend | 147,713 | 149,823 | 106,984 | |
ROAS contribution | 67,974 | 87,869 | 56,716 | |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 176,404 | 216,406 | 140,143 | |
Advertising spend | 118,965 | 131,638 | 94,096 | |
ROAS contribution | 57,439 | 84,768 | 46,047 | |
Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 84,749 | 67,692 | 45,599 | |
Advertising spend | 56,469 | 35,862 | 22,470 | |
ROAS contribution | 28,280 | 31,830 | 23,129 | |
Corporate & Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,191 | 13,214 | 12,023 | |
Advertising spend | 0 | 0 | 0 | |
ROAS contribution | 8,191 | 13,214 | 12,023 | |
Referral revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 476,840 | 521,790 | 349,442 | |
Referral revenue | Operating Segments | Developed Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 215,687 | 237,692 | 163,700 | |
Referral revenue | Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 176,404 | 216,406 | 140,143 | |
Referral revenue | Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 84,749 | 67,692 | 45,599 | |
Referral revenue | Corporate & Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,571 | 3,398 | 3,914 | |
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 | 2,571 | 3,398 | 3,914 | |
Other revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5,620 | 9,816 | 8,109 | |
Other revenue | Operating Segments | Developed Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Other revenue | Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Other revenue | Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Other revenue | Corporate & Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | € 5,620 | € 9,816 | € 8,109 | |
[1] Year ended December 31, 2023 2022 2021 (1) Includes share-based compensation as follows: Cost of revenue € 146 € 198 € 257 Selling and marketing 463 737 1,104 Technology and content 1,728 2,969 3,897 General and administrative 7,168 11,438 12,003 (2) Includes amortization as follows: Amortization of internal use software costs included in € — € 8 € 98 Amortization of internal use software and website development costs included in technology and content 3,085 4,019 4,566 Amortization of internal use software costs included in general and administrative — 104 313 Amortization of acquired technology included in amortization of intangible assets 135 136 136 (3) Includes related party expense as follows: Selling and marketing € 94 € 97 € 111 Technology and content 1,618 541 48 General and administrative 63 1 — |
Segment information - Geographi
Segment information - Geographic information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | € 485,031 | € 535,004 | € 361,465 |
Property and equipment, net | 10,079 | 13,075 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 106,032 | 139,885 | 102,687 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 45,209 | 52,789 | 42,301 |
Property and equipment, net | 10,040 | 13,012 | |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 55,867 | 68,554 | 41,389 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 29,240 | 31,899 | 11,862 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 39,016 | 19,200 | 5,999 |
All other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 209,667 | 222,677 | € 157,227 |
Property and equipment, net | € 39 | € 63 |
Valuation and qualifying acco_3
Valuation and qualifying accounts (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | € 418 | € 658 | € 348 |
Charges to Earnings | 640 | 227 | 330 |
Deductions | (122) | (467) | (20) |
Balance at End of Period | € 936 | € 418 | € 658 |
Subsequent events (Details)
Subsequent events (Details) £ in Millions, $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 11, 2024 USD ($) | Jan. 11, 2024 GBP (£) | Mar. 01, 2024 shares | Dec. 31, 2023 | Dec. 31, 2023 shares | |
Subsequent Event [Line Items] | |||||
Exercised (in shares) | 12,276,176 | ||||
UBIO Limited | Commercial Agreement | Related Party | |||||
Subsequent Event [Line Items] | |||||
Termination notice period (in days) | 90 days | ||||
Subsequent Event | UBIO Limited | Commercial Agreement | Related Party | |||||
Subsequent Event [Line Items] | |||||
Term of agreement (in months) | 12 months | 12 months | |||
Term of agreement, subsequent periods (in months) | 12 months | 12 months | |||
Termination notice period (in days) | 90 days | 90 days | |||
Minimum commitment | $ 1.3 | £ 1.1 | |||
Subsequent Event | Class A common stock | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued under share-based payment arrangement (in shares) | 689,355 |