trivago N.V.

TRVG

US89686D3035

Internet Services

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May. 08	European Equities Traded in the US as American Depositary Receipts Trend Modestly Higher in Wednesday Trading	MT
May. 02	B. Riley Adjusts trivago's Price Target to $3 From $3.30, Keeps Neutral Rating	MT

Trivago N : Q3 2023 Financial Statements

November 01, 2023 at 04:46 pm EDT

Exhibit 99.2

trivago N.V.

Unaudited Condensed Consolidated Interim Financial Statements as of September 30, 2023

trivago N.V.

Condensed consolidated statements of operations (€ thousands, except per share amounts, unaudited)

		Three months ended		Nine months ended
		September 30,		September 30,
		2023		2022		2023		2022
Revenue	€	105,201	€	122,747	€	251,324	€	294,224
Revenue from related party		52,661		60,955		142,010		135,891
Total revenue		157,862		183,702		393,334		430,115
Costs and expenses:
Cost of revenue, including related party, excluding		3,080		3,236		9,223		9,199
amortization (1)
Selling and marketing, including related party (1)(2)(3)		121,684		128,799		281,914		280,491
Technology and content, including related party (1)(2)(3)		12,011		13,453		36,877		42,500
General and administrative, including related party (1)(2)(3)		9,251		11,121		30,090		51,202
Amortization of intangible assets (2)		34		34		101		102
Impairment of intangible assets and goodwill		196,127		100,465		196,127		184,642
Operating loss		(184,325)		(73,406)		(160,998)		(138,021)
Other income/(expense)
Interest expense		(3)		(11)		(7)		(46)
Interest income		1,837		86		4,126		215
Other, net		(123)		329		(337)		684
Total other income, net		1,711		404		3,782		853

Loss before income taxes		(182,614)		(73,002)		(157,216)		(137,168)
Expense/(benefit) for income taxes		(35)		(6,124)		9,581		158
Loss before equity method investment		(182,579)		(66,878)		(166,797)		(137,326)
Loss from equity method investment		(55)		(259)		(173)		(313)
Net loss	€	(182,634)	€	(67,137)	€	(166,970)	€	(137,639)
Earnings per share available to common stockholders:

Basic	€	(0.53)	€	(0.19)	€	(0.49)	€	(0.38)
Diluted		(0.53)		(0.19)		(0.49)		(0.38)
Shares used in computing earnings per share:
Basic		343,806		360,609		343,919		359,964
Diluted		343,806		360,609		343,919		359,964

		Three months ended		Nine months ended
		September 30,		September 30,
		2023		2022		2023		2022
(1) Includes share-based compensation as follows:
Cost of revenue	€	37	€	48	€	108	€	150
Selling and marketing		135		161		327		592
Technology and content		541		687		1,327		2,314
General and administrative		2,380		4,044		6,469		8,682
(2) Includes amortization as follows:
Amortization of internal use software costs included in	€	-	€	-	€	-	€	8
selling and marketing
Amortization of internal use software and website		789		1,042		2,280		3,204
development costs included in technology and content
Amortization of internal use software costs included in		-		1		-		104
general and administrative
Amortization of acquired technology included in		34		34		101		102
amortization of intangible assets
(3) Includes related party expense as follows:
Selling and marketing	€	20	€	7	€	68	€	93
Technology and content		397		51		1,211		112
General and administrative		-		-		24		1

See accompanying notes

trivago N.V.

Condensed consolidated statements of comprehensive income/(loss)

(€ thousands, unaudited)

	Three months ended	Nine months ended
	September 30,	September 30,
	2023		2022	2023	2022
Net loss	€ (182,634)	€	(67,137)		€ (166,970)	€ (137,639)
Other comprehensive income:
Currency translation adjustments	4		24		7	52
Total other comprehensive income	4		24	7	52
Comprehensive income/(loss)	€ (182,630)	€	(67,113)		€ (166,963)	€ (137,587)

See accompanying notes

trivago N.V.

Condensed consolidated balance sheets

(€ thousands, except share and per share data, unaudited)

		As of			As of
		September 30,
ASSETS			December 31, 2022
	2023
Current assets:
Cash and cash equivalents	€	298,957		€	248,584
Restricted cash		342			342
Accounts receivable, net of allowance for credit losses of €1,236 and €418		36,501			25,679
at September 30, 2023 and December 31, 2022, respectively
Accounts receivable, related party		31,162			24,432
Short-term investments		-			45,000
Tax receivable		2,551			498
Prepaid expenses and other current assets		10,788			8,669
Total current assets		380,301			353,204
Property and equipment, net		10,287			13,075
Operating lease right-of-use assets		42,862			45,028
Investments and other assets		9,673			8,409
Intangible assets, net		75,649			89,949
Goodwill		-			181,927
TOTAL ASSETS	€	518,772		€	691,592
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	€	26,874		€	19,941
Income taxes payable		3,926			12,325
Deferred revenue		1,273			1,689
Payroll liabilities		2,505			2,454
Accrued expenses and other current liabilities		10,028			8,675
Operating lease liability		2,282			4,538
Dividend payable		57,914			-
Dividend payable, related party		126,467			-
Total current liabilities		231,269			49,622
Operating lease liability		39,016			40,729
Deferred income taxes		25,421			30,050
Other long-term liabilities		8,882			9,455
Stockholders' equity:
Class A common stock, €0.06 par value - 700,000,000 shares authorized,
Shares issued: 108,750,543 and 124,305,225, respectively		6,525			7,458
Shares outstanding: 108,750,543 and 104,305,225, respectively
Class B common stock, €0.60 par value - 320,000,000 shares authorized,		142,486			142,486
237,476,895 and 237,476,895 shares issued and outstanding, respectively
Treasury stock at cost - Class A shares, nil and 20,000,000 shares,		-			(19,960)
respectively
Reserves		683,131			863,987
Contribution from Parent		122,307			122,307
Accumulated other comprehensive income		61			54
Accumulated deficit		(740,326)			(554,596)
Total stockholders' equity		214,184			561,736
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	€	518,772		€	691,592

See accompanying notes

trivago N.V.

Condensed consolidated statements of changes in equity

(€ thousands, unaudited)

		Class A		Class B		Treasury			Retained		Accumulated	Contribution		Total
			stock - Class			earnings		other
Three months ended September 30, 2023		common		common		A common	Reserves	(accumulated	comprehensive		from	stockholders'
	stock		stock		stock		deficit)	income/(loss)		Parent		equity
Balance at July 1, 2023	€	7,672	€	142,486	€	(19,960) €	865,554	€	(538,932)	€	57	€	122,307	€	579,184
Net loss									(182,634)						(182,634)
Other comprehensive income (net of tax)											4				4
Share-based compensation expense							3,093								3,093
Issuance of common stock related to exercise		53					(9)								44
of options and vesting of RSUs
Withholding taxes on net share settlements of							(1,126)								(1,126)
equity awards

Treasury stock retirement

Dividend payables

Balance at September 30, 2023

Nine months ended September 30, 2023

Balance at January 1, 2023 Net loss

Other comprehensive income (net of tax) Share-based compensation expense

Issuance of common stock related to exercise of options and vesting of RSUs

Withholding taxes on net share settlements of equity awards

	(1,200)				19,960				(18,760)									-
							(184,381)											(184,381)

€	6,525	€	142,486	€	-	€	683,131	€	(740,326)		€	61		€	122,307		€	214,184

	Class A		Class B		Treasury				Retained			Accumulated		Contribution			Total
			stock - Class				earnings		other
	common		common		A common		Reserves	(accumulated		comprehensive			from		stockholders'
	stock		stock		stock			deficit)		income/(loss)			Parent			equity
€	7,458	€	142,486	€	(19,960)	€	863,987	€	(554,596)		€	54		€	122,307		€	561,736
									(166,970)									(166,970)
												7						7
							8,231											8,231
	267						(42)											225
							(4,664)											(4,664)

Treasury stock retirement		(1,200)					19,960					(18,760)	-
Dividend payables									(184,381)				(184,381)
Balance at September 30, 2023	€	6,525 €	142,486 €	-	€	683,131 €	(740,326)	€	61 €	122,307 €	214,184

Three months ended September 30, 2022

Balance at July 1, 2022 Net loss

Other comprehensive income (net of tax) Share-based compensation expense

Issuance of common stock related to exercise of options and vesting of RSUs

Repurchase of common stock

Balance at September 30, 2022

Nine months ended September 30, 2022

Balance at January 1, 2022 Net loss

Other comprehensive income (net of tax) Share-based compensation expense Conversion of Class B shares

Issuance of common stock related to exercise of options and vesting of RSUs

Repurchase of common stock

Balance at September 30, 2022

See accompanying notes

	Class A		Class B		Treasury				Retained			Accumulated		Contribution			Total
			stock - Class				earnings		other
	common		common		A common		Reserves	(accumulated		comprehensive			from		stockholders'
	stock		stock		stock			deficit)		income/(loss)			Parent			equity
€	7,362	€	142,486	€	(23)	€	855,817	€	(497,880)		€	64		€	122,307		€	630,133
									(67,137)									(67,137)
												24						24
							4,940											4,940
	66						(24)											42
					(276)													(276)

€	7,428	€	142,486	€	(299)	€	860,733	€	(565,017)		€	88		€	122,307		€	567,726

	Class A		Class B		Treasury				Retained			Accumulated		Contribution			Total
			stock - Class				earnings		other
	common		common		A common		Reserves	(accumulated		comprehensive			from		stockholders'
	stock		stock		stock			deficit)		income/(loss)			Parent			equity
€	5,802	€	157,178	€	-	€	835,839	€	(427,378)		€	36		€	122,307		€	693,784
									(137,639)									(137,639)
												52						52
							11,738											11,738
	1,469		(14,692)				13,223											-
	157						(67)											90
					(299)													(299)

€	7,428	€	142,486	€	(299)	€	860,733	€	(565,017)		€	88		€	122,307		€	567,726

trivago N.V.

Condensed consolidated statements of cash flows (€ thousands, unaudited)

		Three months ended		Nine months ended
		September 30,		September 30,
		2023		2022		2023		2022
Operating activities:
Net loss	€	(182,634)	€	(67,137)	€	(166,970)	€	(137,639)
Adjustments to reconcile net loss to net cash provided by:
Depreciation (property and equipment and internal-use software and website		1,093		1,464		3,306		4,783
development)
Amortization of intangible assets		34		34		101		102
Goodwill and intangible assets impairment loss		196,127		100,465		196,127		184,642
Impairment of long-lived assets including internal-use software and website development		-		-		-		893
Share-based compensation		3,093		4,940		8,231		11,738
Deferred income taxes		(4,580)		(15,419)		(4,629)		(18,988)
Foreign exchange (gains)/losses, net		124		(326)		487		(1,023)
Expected credit losses, net		92		66		924		89
(Gain)/loss on disposal of fixed assets		(3)		8		(17)		(2)
Loss from equity method investment		55		259		173		313
Changes in operating assets and liabilities:
Accounts receivable, including related party		(2,068)		(1,903)		(18,550)		(36,416)
Prepaid expenses and other assets		3,094		3,428		(3,759)		(421)
Accounts payable		(6,046)		(10,150)		6,543		15,342
Payroll liabilities		(2,723)		(92)		(176)		350
Accrued expenses and other liabilities		(262)		1,192		1,475		317
Deferred revenue		(50)		210		(416)		(196)
Taxes payable/receivable, net		(673)		10,301		(10,470)		8,368
Net cash provided by operating activities		4,673		27,340		12,380		32,252
Investing activities:
Purchase of investments		-		-		-		(50,000)
Proceeds from sales and maturities of investments		25,000		-		45,000		-
Capital expenditures, including internal-use software and website development		(921)		(1,126)		(2,617)		(3,332)
Investment in equity-method investees		-		-		-		(5,951)
Proceeds from sale of fixed assets		3		3		26		13
Net cash provided by/(used in) investing activities		24,082		(1,123)		42,409		(59,270)
Financing activities:
Proceeds from exercise of option awards		44		42		225		90
Payment of withholding taxes on net share settlements of equity awards		(2,561)		-		(4,363)		-
Repayment of other non-current liabilities		(10)		(13)		(36)		(99)
Purchases of treasury stock		-		(299)		-		(299)
Net cash used in financing activities		(2,527)		(270)		(4,174)		(308)
Effect of exchange rate changes on cash		67		988		(242)		2,419
Net increase in cash, cash equivalents and restricted cash		26,295		26,935		50,373		(24,907)
Cash, cash equivalents and restricted cash at beginning of the period		273,004		204,877		248,926		256,719
Cash, cash equivalents and restricted cash at end of the period	€	299,299	€	231,812	€	299,299	€	231,812
Supplemental cash flow information:

Cash paid for interest	€	3	€	11	€	7	€	46
Cash received for interest		1,485		18		3,489		127
Cash paid for taxes, net of (refunds)		5,943		(1,020)		25,164		4,545
Non-cash investing and financing activities:
Withholding taxes on net share settlements of equity awards-related liability		227		-		227		-

See accompanying notes

trivago N.V.

Notes to the condensed consolidated financial statements (unaudited)

Note 1: Organization and basis of presentation

Description of business

trivago N.V., ("trivago" the "Company," "us," "we" and "our") and its subsidiaries offer online meta-search for hotel and accommodation through online travel agencies ("OTAs"), hotel chains and independent hotels. Our search-driven marketplace, delivered on websites and apps, provides users with a tailored search experience via our proprietary matching algorithms. We generally employ a 'cost-per-click' (or "CPC") pricing structure, allowing advertisers to control their own return on investment and the volume of lead traffic we generate for them. Beginning in 2020, we began to offer a 'cost-per-acquisition' (or "CPA") pricing structure, whereby an advertiser pays us a percentage of the booking revenues that ultimately result from a referral.

During 2013, the Expedia Group, Inc. (formerly Expedia, Inc., the "Parent" or "Expedia Group") completed the purchase of a controlling interest in the Company. As of September 30, 2023, Expedia Group's ownership interest and voting interest in trivago N.V. is 60.4% and 84.2%, respectively.

Basis of presentation

We have prepared the accompanying interim unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. We have included all adjustments necessary for a fair presentation of the results of the interim period. These adjustments consist of normal recurring items. Our interim unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for any other interim period or for the full year.

Certain information and note disclosures normally included in the audited annual consolidated financial statements have been condensed or omitted in accordance with SEC rules. The condensed consolidated balance sheet as of December 31, 2022 was derived from our audited consolidated financial statements as of that date but does not contain all of the footnote disclosures from the annual financial statements. As such, these interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 20-F for the year ended December 31, 2022, previously filed with the Securities and Exchange Commission ("SEC").

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.

Accounting estimates

We use estimates and assumptions in the preparation of our interim unaudited condensed consolidated financial statements in accordance with GAAP. Preparation of the interim unaudited condensed 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 unaudited condensed 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 interim unaudited condensed consolidated financial statements include: leases, recoverability of goodwill and indefinite-lived intangible assets, income taxes, and share-based compensation.

Note 2: Significant accounting policies

The significant accounting policies used in preparation of these unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2023 are consistent with those discussed in Note 2 to the consolidated financial statements in our Annual Report on Form 20-F for the year ended December 31, 2022, except as updated below.

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

Measurement of Credit Losses on Financial Instruments. As of January 1, 2023, we have prospectively adopted ASU 2022-02which expands certain disclosure requirements for public business entities to include the current-periodgross write-offsby year of origination for financing receivables and net investment in leases. Past due trade receivables written off that originate from prior periods are typically not material. The adoption of this new guidance did not have a material impact to our unaudited condensed consolidated financial statements.

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 33% and 36% of total revenues for the three and nine months ended September 30, 2023, respectively, compared to 33% and 32%, respectively, in the same periods in 2022. Expedia Group and its affiliates represents 46% and 49% of total accounts receivable as of September 30, 2023 and December 31, 2022, respectively.

Booking Holdings and its affiliates represent 46% and 43% of total revenues for the three and nine months ended September 30, 2023, respectively, compared to 50% and 49%, respectively, in the same periods in 2022. Booking Holdings and its affiliates represent 30% of total accounts receivable as of September 30, 2023 and December 31, 2022.

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trivago NV published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 20:44:52 UTC.

Latest news about trivago N.V.

European Equities Traded in the US as American Depositary Receipts Trend Modestly Higher in Wednesday Trading	May. 08	MT
B. Riley Adjusts trivago's Price Target to $3 From $3.30, Keeps Neutral Rating	May. 02	MT
Transcript : Trivago N.V., Q1 2024 Earnings Call, May 01, 2024	May. 01
Trivago N.V. Reports Earnings Results for the First Quarter Ended March 31, 2024	Apr. 30	CI
European Equities Traded in the US as American Depositary Receipts Start Week Higher in Monday Trading	Apr. 15	MT
European Equities Traded in the US as American Depositary Receipts Trend Lower in Wednesday Trading	Apr. 10	MT
European Equities Traded in the US as American Depositary Receipts Open Week Higher in Monday Trading	Apr. 08	MT
European Equities Traded in the US as American Depositary Receipts Higher in Friday Trading, Close Out Week Lower	Apr. 05	MT
European Equities Traded in the US as American Depositary Receipts Trend Higher in Thursday Trading	Apr. 04	MT
Trivago Says Robin Harries Rejoins Company as CFO	Apr. 02	MT
European Equities Traded in the US as American Depositary Receipts Fall in Tuesday Trading	Apr. 02	MT
European Equities Traded in the US as American Depositary Receipts Start Week Modestly Higher	Apr. 01	MT
European Equities Traded in the US as American Depositary Receipts Slightly Higher Thursday	Mar. 28	MT
European Equities Traded in the US as American Depositary Receipts Trend Lower in Wednesday Trading	Feb. 28	MT
European Equities Traded in the US as American Depositary Receipts Rise in Thursday Trading	Feb. 22	MT
European Equities Traded in the US as American Depositary Receipts Fall in Tuesday Trading	Feb. 13	MT
Expedia shares sink after 2024 revenue warning on softening air fares	Feb. 09	RE
B. Riley Adjusts Trivago's Price Target to $3.30 From $3, Keeps Neutral Rating	Feb. 08	MT
Transcript : Trivago N.V., Q4 2023 Earnings Call, Feb 07, 2024	Feb. 07
Trivago N.V. Reports Earnings Results for the Full Year Ended December 31, 2023	Feb. 06	CI
Trivago N.V. Reports Earnings Results for the Fourth Quarter Ended December 31, 2023	Feb. 06	CI
UBS Adjusts trivago N.V Price Target to $2.25 From $6.25, Maintains Neutral Rating	Feb. 05	MT
European Equities Traded in the US as American Depositary Receipts Move Lower in Tuesday Trading	Jan. 30	MT
European Equities Traded in the US as American Depositary Receipts Jump in Wednesday Trading	Jan. 24	MT
Wells Fargo Adjusts trivago's Price Target to $2.70 From $6.50, Keeps Equalweight Rating	Jan. 17	MT

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Company Profile

Trivago NV is a Germany-based company that operates an online hotel search platform. The Company and its subsidiaries offer online meta-search for hotel and accommodation through online travel agencies (OTAs), hotel chains and independent hotels. The company is focused on focused on reshaping the way travelers search for and compare hotels while enabling hotel advertisers to grow their businesses by providing access to a broad audience of travelers through the Company's websites and apps. The platform allows travelers to make informed decisions by personalizing their hotel search and providing access to a deep supply of hotel information and prices. The company operates in three operating segments namely the Americas, Developed Europe and the Rest of the World. The Company offer marketing tools to help promote their listings on platform and drive traffic to their websites. The tools and services, including the subscription-based trivago Business Studio Pro Apps Package.

Sector

Internet Services

Calendar

2024-07-24 - Q2 2024 Earnings Release (Projected)

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Income Statement Evolution

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Ratings for trivago N.V.

Trading Rating

Investor Rating

ESG Refinitiv

C+

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Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

1.978 EUR

Average target price

2.558 EUR

Spread / Average Target

+29.36%

Consensus

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Estimates Revisions

Quarterly earnings - Rate of surprise

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trivago N.V.

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TRVG

US89686D3035

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Trivago N : Q3 2023 Financial Statements

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