Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | trivago N.V. | |
Trading Symbol | TRVG | |
Entity Central Index Key | 0001683825 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 50,816,706 | 42,559,884 |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 301,687,967 | 308,687,967 |
Consolidated statements of oper
Consolidated statements of operations - EUR (€) € in Thousands, shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Statement [Abstract] | ||||
Revenue | € 554,046 | € 583,395 | € 667,802 | |
Revenue from related party | 284,571 | 331,421 | 367,581 | |
Total revenue | 838,617 | 914,816 | 1,035,383 | |
Costs and expenses: | ||||
Cost of revenue, including related party, excluding amortization | [1],[2] | 9,159 | 5,435 | 5,930 |
Selling and marketing | [1],[2] | 664,155 | 805,633 | 946,925 |
Technology and content, including related party | [1],[2],[3] | 69,924 | 66,904 | 52,232 |
General and administrative, including related party | [1],[2],[3] | 55,543 | 54,326 | 47,444 |
Amortization of intangible assets | [3] | 1,685 | 1,684 | 3,220 |
Operating income/(loss) | 38,151 | (19,166) | (20,368) | |
Other income/(expense) | ||||
Interest expense | (33) | (1,839) | (44) | |
Gain on deconsolidation of entity | 0 | 0 | 2,007 | |
Other, net | (428) | 539 | 592 | |
Total other income/(expense), net | (461) | (1,300) | 2,555 | |
Income/(loss) before income taxes | 37,690 | (20,466) | (17,813) | |
Expense/(benefit) for income taxes | 20,982 | 1,086 | (4,764) | |
Income/(loss) before equity method investment | 16,708 | (21,552) | (13,049) | |
Income from equity method investment | 453 | 63 | 0 | |
Net income/(loss) | 17,161 | (21,489) | (13,049) | |
Net loss attributable to noncontrolling interests | 0 | 0 | 568 | |
Net income/(loss) attributable to trivago N.V. | € 17,161 | € (21,489) | € (12,481) | |
Earnings per share attributable to trivago N.V. available to common stockholders: | ||||
Earnings per share, basic (In EUR per share) | € 0.05 | € (0.06) | € (0.05) | |
Earnings per share, diluted (In EUR per share) | € 0.05 | € (0.06) | € (0.05) | |
Shares used in computing earnings per share: | ||||
Weighted Average Number of Shares Outstanding, Basic (in shares) | 351,991 | 350,852 | 274,666 | |
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 356,738 | 350,852 | 274,666 | |
[1] | Includes related party expense as follows: Year ended December 31, 2017 2018 2019 Cost of revenue 68 € 59 44 Selling and marketing 0 42 263 Technology and content 361 700 465 General and administrative 109 9 43 | |||
[2] | Includes share-based compensation as follows: Year ended December 31, 2017 2018 2019 Cost of revenue 115 184 269 Selling and marketing 3,514 3,273 2,359 Technology and content 3,614 5,260 5,978 General and administrative 8,782 11,985 11,285 | |||
[3] | Year ended December 31, 2017 2018 2019 Amortization of internal use software costs included in — — 360 Amortization of acquired technology included in amortization of intangible assets 59 278 143 Amortization of internal use software and website development costs included in technology and content 1,742 2,214 3,239 Amortization of internal use software costs included in general and administrative 408 785 656 |
Consolidated statements of op_2
Consolidated statements of operations (Parenthetical) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based compensation | € 19,900 | € 20,700 | € 16,000 | |
Amortization of intangible assets | [1] | 1,685 | 1,684 | 3,220 |
Cost of revenue | ||||
Share-based compensation | 269 | 184 | 115 | |
General and administrative expenses from related party | 44 | 59 | 68 | |
Selling and marketing | ||||
Share-based compensation | 2,359 | 3,273 | 3,514 | |
General and administrative expenses from related party | 263 | 42 | 0 | |
Technology and content, net of capitalized internal-use software and website development costs | ||||
Share-based compensation | 5,978 | 5,260 | 3,614 | |
General and administrative expenses from related party | 465 | 700 | 361 | |
General and administrative | ||||
Share-based compensation | 11,285 | 11,985 | 8,782 | |
Amortization of intangible assets | 656 | 785 | 408 | |
General and administrative expenses from related party | 43 | 9 | 109 | |
Acquired technology | ||||
Amortization of intangible assets | 143 | 278 | 59 | |
Internal use software and website development costs | ||||
Amortization of intangible assets | 4,300 | 3,000 | 1,700 | |
Internal use software and website development costs | Selling and marketing | ||||
Amortization of intangible assets | 360 | 0 | 0 | |
Internal use software and website development costs | Technology and content, net of capitalized internal-use software and website development costs | ||||
Amortization of intangible assets | € 3,239 | € 2,214 | € 1,742 | |
[1] | Year ended December 31, 2017 2018 2019 Amortization of internal use software costs included in — — 360 Amortization of acquired technology included in amortization of intangible assets 59 278 143 Amortization of internal use software and website development costs included in technology and content 1,742 2,214 3,239 Amortization of internal use software costs included in general and administrative 408 785 656 |
Consolidated statements of comp
Consolidated statements of comprehensive income (loss) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income/(loss) | € 17,161 | € (21,489) | € (13,049) |
Other comprehensive income/(loss) | |||
Currency translation adjustments | 151 | 91 | (201) |
Total other comprehensive income/(loss) | 151 | 91 | (201) |
Comprehensive income/(loss) | 17,312 | (21,398) | (13,250) |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 568 |
Comprehensive income/(loss) attributable to trivago N.V. | € 17,312 | € (21,398) | € (12,682) |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | € 218,106 | € 161,871 |
Restricted cash | 122 | 122 |
Accounts receivable, less allowance of €250 and €74 at December 31, 2018 and December 31, 2019, respectively | 37,747 | 54,981 |
Accounts receivable, related party | 31,139 | 39,655 |
Short-term Investments | 10,000 | 0 |
Tax receivable | 8,565 | 281 |
Prepaid expenses and other current assets | 4,607 | 8,346 |
Total Current Assets | 310,286 | 265,256 |
Property and equipment, net | 33,172 | 162,001 |
Operating lease right-of-use assets | 96,030 | |
Deferred income taxes | 735 | 0 |
Other long-term assets | 7,274 | 6,148 |
Intangible assets, net | 169,924 | 171,609 |
Goodwill | 490,590 | 490,529 |
TOTAL ASSETS | 1,108,011 | 1,095,543 |
Current liabilities: | ||
Accounts payable | 33,391 | 33,656 |
Income taxes payable | 549 | 1,221 |
Deferred revenue | 5,553 | 7,863 |
Payroll liabilities | 4,055 | 8,531 |
Accrued expenses and other current liabilities | 14,763 | 9,650 |
Operating Lease, Liability, Current | 5,037 | |
Total Current Liabilities | 63,348 | 60,921 |
Operating Lease, Liability, Noncurrent | 94,660 | |
Financing obligations | 0 | 127,705 |
Deferred income taxes | 50,927 | 46,550 |
Other long-term liabilities | 4,289 | 6,784 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Reserves | 781,060 | 757,262 |
Contribution from Parent | 122,307 | 122,307 |
Accumulated other comprehensive income/(loss) | 62 | (89) |
Accumulated deficit | (192,704) | (213,664) |
Total stockholders' equity | 894,787 | 853,583 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,108,011 | 1,095,543 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 3,049 | 2,554 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | € 181,013 | € 185,213 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance | € 250 | € 231 |
Common Class A [Member] | ||
Class common stock, par value | € 0.06 | € 0.06 |
Class common stock, shared authorized | 700,000,000 | 700,000,000 |
Class common stock, shares issued | 50,816,706 | 42,559,884 |
Entity Common Stock, Shares Outstanding | 50,816,706 | 42,559,884 |
Common Class B [Member] | ||
Class common stock, par value | € 0.60 | € 0.60 |
Class common stock, shared authorized | 320,000,000 | 320,000,000 |
Class common stock, shares issued | 301,687,967 | 308,687,967 |
Entity Common Stock, Shares Outstanding | 301,687,967 | 308,687,967 |
Consolidated statements of chan
Consolidated statements of changes in equity - EUR (€) € in Thousands | Total | Common StockCommon Class A [Member] | Common StockCommon Class B [Member] | Reserves | Retained earnings (accumulated deficit) | Accumulated other comprehensive income/(loss) | Contribution from Parent | Noncontrolling interest |
Beginning balance at Dec. 31, 2016 | € 854,071 | € 1,802 | € 125,405 | € 584,667 | € (179,837) | € 21 | € 122,200 | € 199,813 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss), excluding portion attributable to redeemable noncontrolling interest | (12,940) | (12,481) | (459) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (201) | (201) | ||||||
Stock Issued During Period, Value, Stock Options Exercised | (149) | (149) | ||||||
Transaction with Parent | 107 | 107 | ||||||
Shareholders' Equity, Contribution From Parent | 16,071 | 16,071 | ||||||
Shareholders' Equity, Changes From Corporate Reorganization | (2,984) | 53 | (3,037) | |||||
Ending balance at Dec. 31, 2017 | 853,975 | 1,855 | 191,880 | 730,431 | (192,318) | (180) | 122,307 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss), excluding portion attributable to redeemable noncontrolling interest | (21,489) | (21,489) | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 91 | 91 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | 161 | 32 | 129 | |||||
Share-based compensation expense | 20,702 | 20,702 | ||||||
Conversion of Class B shares | 0 | 667 | (6,667) | 6,000 | ||||
Ending balance at Dec. 31, 2018 | 853,583 | 2,554 | 185,213 | 757,262 | (213,664) | (89) | 122,307 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Impact of adoption of new accounting guidance | 143 | 143 | ||||||
Net income (loss), excluding portion attributable to redeemable noncontrolling interest | 17,161 | 17,161 | ||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 151 | 151 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | 202 | 75 | 127 | |||||
Share-based compensation expense | 19,891 | 19,891 | ||||||
Conversion of Class B shares | 0 | 420 | (4,200) | 3,780 | ||||
Ending balance at Dec. 31, 2019 | 894,787 | € 3,049 | € 181,013 | € 781,060 | (192,704) | € 62 | € 122,307 | € 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Impact of adoption of new accounting guidance | € 3,799 | € 3,799 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Operating activities: | ||||
Net income/(loss) | € 17,161 | € (21,489) | € (13,049) | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in): | ||||
Depreciation (property and equipment, internal-use software and website development) | 10,298 | 11,370 | 7,802 | |
Amortization of intangible assets | [1] | 1,685 | 1,684 | 3,220 |
Impairment of internal-use software and website development | 96 | 1,437 | 0 | |
Share-based compensation (see Note 10) | 19,891 | 20,702 | 16,025 | |
Deferred income taxes | 1,904 | (1,755) | (4,851) | |
Foreign exchange (gain)/loss | 429 | 587 | (217) | |
Bad debt expense | 754 | 630 | 78 | |
Non-cash charge, contribution from Parent | 0 | 0 | 107 | |
Gain on deconsolidation of entity | 0 | 0 | (2,007) | |
Loss on sale of fixed assets | 2 | 605 | 0 | |
Gain from settlement of asset retirement obligation | (209) | 0 | 0 | |
Gain from equity method investment | (453) | (19) | 0 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable, including related party | 24,926 | (13,432) | (29,734) | |
Prepaid expense and other assets | 3,696 | 11,127 | (10,434) | |
Accounts payable | (665) | (18,012) | 13,590 | |
Payroll liabilities | (4,476) | 2,951 | 988 | |
Accrued expenses and other liabilities | 7,591 | 199 | 8,195 | |
Deferred revenue | (2,310) | (773) | 3,863 | |
Taxes payable/receivable, net | (6,099) | (396) | (2,097) | |
Net cash provided by/(used in) operating activities | 74,221 | (4,584) | (8,521) | |
Investing activities: | ||||
Acquisition of business, net of cash acquired | 0 | 0 | (673) | |
Cash divested from deconsolidation | 0 | 0 | (249) | |
Purchase of investments | (10,000) | 0 | 0 | |
Capital expenditures, including internal-use software and website development | (8,017) | (24,779) | (17,364) | |
Proceeds from sale of fixed assets | 36 | 634 | 0 | |
Net cash used in investing activities | (17,981) | (24,145) | (18,286) | |
Financing activities: | ||||
Payments of initial public offering costs | 0 | 0 | (4,038) | |
Dividends paid to noncontrolling interest | 0 | 0 | (158) | |
Proceeds from exercise of option awards | 202 | 161 | 42 | |
Tax payments for shares withheld | 0 | 0 | (3,062) | |
Repayment of other non-current liabilities | (301) | 0 | 0 | |
Net cash provided by/(used in) financing activities | (99) | 161 | (7,216) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 94 | (24) | (1,259) | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 56,235 | (28,592) | (35,282) | |
Cash, cash equivalents and restricted cash at beginning of year | 164,308 | 192,900 | 228,182 | |
Cash, cash equivalents and restricted cash at end of year | 220,543 | 164,308 | 192,900 | |
Supplemental cash flow information: | ||||
Cash paid for interest | 51 | 223 | 2 | |
Cash paid for taxes, net of refunds | 25,171 | 3,325 | 2,550 | |
Non-cash investing and financing activities: | ||||
Fixed assets-related payable | 202 | 992 | 1,557 | |
Capitalization of construction in process related to build-to-suit lease | € 0 | € 36,979 | € 56,586 | |
[1] | Year ended December 31, 2017 2018 2019 Amortization of internal use software costs included in — — 360 Amortization of acquired technology included in amortization of intangible assets 59 278 143 Amortization of internal use software and website development costs included in technology and content 1,742 2,214 3,239 Amortization of internal use software costs included in general and administrative 408 785 656 |
Organization and basis of prese
Organization and basis of presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 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. During 2013, the Expedia Group, Inc. (formerly Expedia, Inc., the "Parent" or "Expedia Group") completed the purchase of a controlling interest in the Company. Corporate reorganization As of December 31, 2016, 68.3% of the voting power in trivago GmbH was held by trivago N.V. and 31.7% was held by Messrs. Schrömgens, Vinnemeier and Siewert (whom we collectively refer to as the “Founders'"), which was reflected as noncontrolling interest in the consolidated financial statements through September 7, 2017. On September 7, 2017 (the "merger date") the merger of trivago GmbH into and with trivago N.V. became effective. Pursuant to the merger, our Founders exchanged all of their units of trivago GmbH for Class B shares of trivago N.V. As of December 31, 2019, Expedia Group’s ownership interest and voting interest in trivago N.V. is 59.3% and 68.1%, respectively. The Founders Class B shares of trivago N.V. had an ownership interest and voting interest of 26.3% and 30.2%, respectively. Basis of presentation Upon the merger of trivago GmbH with and into trivago N.V., the merger date, no further noncontrolling interest exists between trivago GmbH and trivago N.V. Unless otherwise specified, “the Company” refers to trivago N.V., and trivago GmbH 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. The Expedia Group incurred certain costs on behalf of trivago. The consolidated financial statements included certain corporate expenses that were allocated to trivago by the Expedia Group (see Note 15: Related party transactions for further information) until December 31, 2017. We recorded corporate allocation charges from the Expedia Group within our consolidated statement of operations and as a contribution from Parent within the consolidated statement of changes in equity. Our management believes that the assumptions underlying the consolidated financial statements are reasonable. 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, 2019 | |
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 over which do not have control. We record noncontrolling interest in our consolidated financial statements to recognize the minority ownership interest in our consolidated subsidiaries. Noncontrolling interest in the earnings and losses of consolidated subsidiaries represent the share of net income or loss allocated to members or partners in our consolidated entities. It included the noncontrolling interest share of net income or loss from our redeemable noncontrolling interest entity myhotelshop until its deconsolidation in December 2017 and our noncontrolling interest in trivago GmbH; up and until the merger of trivago GmbH with and into trivago N.V. on September 7, 2017. As a result of the merger of trivago GmbH with and into trivago N.V. during 2017, as of December 31, 2017 there no longer remains a minority interest related to trivago GmbH classified as noncontrolling interest as a component of stockholders’ equity in our consolidated financial statements. As of December 31, 2018 and December 31, 2019 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: recoverability of goodwill and indefinite-lived intangible assets, recoverability of intangible assets with definite lives and other long-lived assets, income taxes, legal and tax contingencies, business combinations and share-based compensation. Revenue recognition Revenues are recognized 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 Revenue relates to fees earned on the display of a customer‘s (advertiser‘s) link on the trivago website on a cost-per-click (CPC) basis. Revenue from click-through fees is recorded 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. The prices per click for an advertising campaign, which generally have a duration of one month or less, are negotiated in advance, thus, the amount to be recognized as revenue for the respective click is fixed and determinable when the performance obligation has been satisfied. Most of our revenue is invoiced on a monthly basis after the performance obligation has been satisfied with payment terms between 10 to 90 days. For some advertisers we require prepayments. Subscription Revenue Revenue from subscription services is recognized ratably over the contract term, which is generally 12 months or less from the subscription commencement date. Customers may choose to be billed annually or monthly via SEPA or credit card. The price per subscription is fixed and determinable when the contract commences. We consider ourselves principal in all our revenue transactions. We do not have any unsatisfied performance obligations for contracts with an original expected length of one year or less and contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Deferred revenue Deferred revenue relates to advanced payments received for services provided in future periods, primarily related to subscription services. At December 31, 2017, €8.9 million was recorded as deferred revenue, €8.0 million of which was recognized as revenue during the year ended December 31, 2018. At December 31, 2018, the deferred revenue balance was €7.9 million, €7.6 million of which was recognized as revenue during the year ended December 31, 2019. At December 31, 2019, the deferred revenue balance was €5.6 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, 2017, 2018 and 2019 cost of revenue excludes €0.1 million, €0.3 million and €0.1 million, respectively, of amortization expense of acquired technology. For the years ended December 31, 2017, 2018 and 2019 cost of revenue excludes €1.7 million, €3.0 million and €4.3 million, respectively, of amortization expense related to internal use software and website development. Cash and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, primarily time deposit investments, with maturities of three months or less when purchased. Restricted cash Restricted cash primarily consists of funds held as guarantees in connection with corporate leases and funds held in escrow accounts in the event of default on corporate credit card statements. The carrying value of restricted cash approximates its fair value. As of December 31, 2018 and December 31, 2019, restricted cash was €2.4 million and €2.4 million, respectively. From the total balance as of December 31, 2018, €2.3 million is classified as other long-term assets based on the expected dates the restricted cash will be refunded or made available to the Company. Accounts receivable Accounts receivable are generally due within 10 to 90 days and are recorded net of an allowance for doubtful accounts. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole. Short-term investments Our short-term investments consist of call deposit accounts with notice periods of more than three but fewer than 12 months. 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 five Certain direct development costs associated with website and internal-use software are capitalized during the application development stage. Capitalized costs include external direct costs of services and payroll costs (including share-based compensation). The payroll costs are for employees devoting time to the software development projects principally related to website and mobile app development, including support systems, software coding, designing system interfaces and installation and testing of the software. These costs are recorded as property and equipment and are generally amortized over a period of three 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 - prior to adoption of new accounting guidance Prior to our adoption of the new accounting guidance for leasing arrangements at January 1, 2019, we recognized rent expense on a straight-line basis over the lease period of our operating leases. Any lease incentives were recognized as reductions of rental expense on a straight-line basis over the term of the lease. The lease term began on the date we become legally obligated for the rent payments or when we take possession of the office space, whichever is earlier. Additionally, payments received for our subleases for unoccupied leased office space were recognized on a straight-line basis over the term of the sublease. We were deemed to be the accounting owner of our corporate headquarters during the construction period under build-to-suit lease accounting guidance and established assets and liabilities for the estimated construction costs incurred. At date of our move-in in June 2018, it was determined that the sale-leaseback guidance was not met, resulting in our accounting for the lease as a financing obligation until December 31, 2018. During 2017 and 2018, we bifurcated our lease payments relating to the premises into a portion allocated to the building (a reduction of the financing obligation) and a portion allocated to the land on which the building was constructed, which was treated as an operating lease that commenced in July 2015. For the years ended December 31, 2017 and 2018, we recorded €1.7 million and €1.8 million, respectively, of land rent expense in connection with this lease. Before move-in, the non-cash land expense was classified entirely as general and administrative expense, and afterwards, it was allocated to all of our operating costs. Depreciation on the building commenced upon construction completion, resulting in €1.6 million of depreciation expense for the year ended December 31, 2018, of which the majority was recorded as technology and content expense. The second building relating to our campus remained under construction at December 31, 2018 and was accounted for as a build-to-suit asset at that point. Leases - subsequent to adoption of new accounting guidance We determine if an arrangement is a lease at inception. Operating leases are primarily for office space and, as of January 1, 2019 with the adoption of the new guidance for leasing arrangements, are included in operating lease right-of-use ("ROU") assets and operating lease liability 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 liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate as the discount rate in measuring the present value of lease payments given the rate implicit in our leases is not typically readily determinable. Estimating the incremental borrowing rate requires assessing a number of inputs including an estimated synthetic credit rating, collateral adjustments and interest rates. The operating lease ROU asset is comprised of the initial operating lease liability, adjusted for any prepaid or deferred rent payments, unamortized initial direct costs, and lease incentives received. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Payments under our operating leases are primarily fixed, however, certain of our operating lease agreements include rental payments which are adjusted periodically for inflation. We recognize these costs as variable lease costs on our consolidated statement of operations, which were not material during the year ended December 31, 2019. 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. Upon adoption of the new accounting guidance for leasing arrangements at January 1, 2019, our campus building lease is classified as an operating lease and treated the same as all other such leases. The asset and liability previously recorded for the second building were derecognized upon adoption as it did not meet the criteria for recognition under the new guidance. 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. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships and discount rates. 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 is assigned to our three reporting units, which correspond to our three operating segments, on the basis of their relative fair values as of the date of change in reporting units. We assess goodwill and indefinite-lived assets, neither of which are amortized, for impairment annually in the fourth quarter of the year, 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. Effective October 1, 2017, we prospectively adopted accounting guidance that simplified our goodwill impairment testing by eliminating the requirement to calculate the implied fair value of goodwill (formerly "Step 2") in the event an impairment is identified. Instead, 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, long-term rate of growth and profitability of our business. 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 and assessing comparable revenue and operating income multiples 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 in relation to the company’s total fair value. 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. 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 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. As with goodwill, periodically, we may choose to forgo the initial qualitative assessment and perform a quantitative analysis in our annual evaluation of indefinite-lived intangible assets. Recoverability of intangible assets with definite lives and other long-lived assets Intangible assets with definite lives and other long-lived assets are carried at cost and are amortized on a straight-line basis over their estimated useful lives of generally less than seven years. We review the carrying value of long-lived assets or asset groups, including property and equipment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, we would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, we will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group’s carrying amount and its estimated fair value. Income taxes We record income taxes under the liability method. Deferred tax assets and liabilities reflect our estimation of the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for book and tax purposes. We determine deferred income taxes based on the differences in accounting methods and timing between financial statement and income tax reporting. Accordingly, we determine the deferred tax asset or liability for each temporary difference based on the enacted tax rates expected to be in effect when we realize the underlying items of income and expense. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as other relevant factors. We may establish a valuation allowance to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated results of operations, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates. We account for uncertain tax positions based on a two-step process of evaluating recognition and measurement criteria. The first step assesses whether the tax position is more likely than not to be sustained upon examination by the tax authority, including resolution of any appeals or litigation, based on the technical merits of the position. If the tax position meets the more likely than not criteria, the portion of the tax benefit greater than 50% likely to be realized upon settlement with the tax authority is recognized in the financial statements. Interest and penalties related to uncertain tax positions are classified in the financial statements as a component of income tax expense. Presentation of taxes in the statements of operations We present taxes that we collect from advertisers and remit to government authorities on a net basis in our consolidated statements of operations. Foreign currency translation and transaction gains and losses The consolidated Financial Statements have been prepared in euros, the reporting currency. Certain of our operations outside of the Eurozone use the local currency as their functional currency. We translate revenue and expense at average exchange rates during the period and assets and liabilities at the exchange rates as of the consolidated balance sheet dates and include such foreign currency translation gains and losses as a component of other comprehensive income. Due to the nature of our operations and our corporate structure, we also have subsidiaries that have significant transactions in foreign currencies other than their functional currency. We record transaction gains and losses in our consolidated statements of operations related to the recurring remeasurement and settlement of such transactions. Advertising expense We incur advertising expense consisting of offline costs, including television and radio advertising, as well as online advertising expense 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 included in our consolidated financial statements relates to certain outstanding trivago employee options replaced with new trivago employee option awards exercisable into trivago Class A shares, in connection with the controlling-interest acquisition of trivago by the Expedia Group (formerly Expedia, Inc.) in 2013. During 2017, 2018 and 2019, there were additional awards granted in connection with the Omnibus Incentive Plan to employees of trivago. The fair value of share options accounted for as equity settled transactions is measured at the grant date using the Black-Scholes option pricing model. The valuation model incorporates 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 and other relevant factors. We use the simplified method in determining the term by using the midpoint between the vesting date and the end of the contractual term to estimate the term for all option grants subsequent of the IPO. 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. We amortize the fair value to the extent the awards qualify for equity treatment, over the vesting term on a straight-line basis. The majority of our share options are service-based awards which vest between one We have performance-based share options which vest upon achievement of certain company-based performance conditions and service conditions. On the date of grant, we determine the fair value of the performance-based award using the Black-Scholes option pricing model. The awards are then 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, and to the extent 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 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. As at December 31, 2019, there were no awards remaining subject to a performance target condition to be determined in a future period. We have Restricted Stock Units (RSUs), which are stock awards entitling the holder to shares of common stock as the award vests, were granted. The RSUs are service-based awards which vest between one and three years. 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. We amortize the fair value, net of actual forfeitures, as share-based compensation expense over the vesting term on a straight-line basis. For the years ended December 31, 2018 and 2019, we had no option awards classified as liabilities. We recognize the effect of forfeitures in the period that the award was forfeited. Reserves available for dividend distribution We do not at present plan to pay cash dividends on our Class A shares. Under Dutch law, we may only pay dividends to the extent that our shareholders’ equity ( eigen vermogen ) exceeds the sum of the paid-up and called-up share capital plus the reserves required to be maintained under Dutch law or by our articles of association (although we note that, presently, we are not required by our articles of association to maintain reserves in addition to those which we must maintain under Dutch law). Subject only to such restrictions, any future determination to pay dividends will be at the discretion of our management board (in some instances, subject to approval by a Founder). In making a determination to pay dividends, the management board must act in the interests of our company and its business, taking into account relevant interests of our shareholders and other factors that our management board considers relevant, including our results of operations, financial condition, and future prospects. For the years ended December 31, 2018 and 2019, our reserves restricted for dividend distribution were €193.4 million and €190.7 million, respectively. Fair value recognition, measurement and disclosure The carrying amounts of cash, 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. The 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 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 the Company's cash and customers with significant accounts receivable balances. Our customer base includes primarily online travel agencies and hoteliers. 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%, 36% and 34% respectively, of revenues for the year ended December 31, 2017, 2018 and 2019 and 41% and 45% of total accounts receivable as of December 31, 2018 and 2019. Booking Holdings and its affiliates represent 44%, 39% and 40%, respectively, of revenues for the years ended December 31, 2017, 2018 and 2019 and 35% and 28%, respectively, of total accounts receivable as of December 31, 2018 and 2019. Contingent liabilities From time to time, we may be involved in various claims and legal proceedings relating to claims arising out of our operations, as discussed further in Note 14: Commitments and contingencies . Periodically, and at year end, we review the status of all significant outstanding matters to assess the potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time, which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. Adoption of new accounting pronouncements Leases . As of January 1, 2019, we adopted the Accounting Standards Updates (“ASU”) amending the guidance related to accounting and reporting guidelines for leasing arrangements using the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption. Results for reporting periods beginning after January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for those periods. The new guidance required entities that lease assets to recognize assets and liabilities on the balance sheet related |
Acquisitions and divestitures
Acquisitions and divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and divestitures | In August 2017, we acquired all material assets of tripl GmbH through a business combination for a total purchase consideration of €0.7 million. The acquisition is intended to enhance trivago's product with personalization technology that uses big data and a customer-centric approach. During December 2017, myhotelshop GmbH issued 8,074 new common shares for a total of €0.1 million to a minority shareholder unrelated to trivago. This shareholder continues to be an unrelated party to trivago. The capital infusion diluted our share in myhotelshop from 61.3% to 49.0%. In addition to the capital infusion, we no longer have any put/call rights to purchase the minority interest in myhotelshop. Following the increase in capital, we lost controlling financial interest in myhotelshop. We deconsolidated myhotelshop’s assets and liabilities, including the historical redeemable noncontrolling interest of myhotelshop, as of that date from the consolidated financial statements and present our remaining share in myhotelshop as an equity investment, initially at fair value, in other long-term assets in the consolidated balance sheet. The fair value of the retained investment was determined based on the intrinsic value of myhotelshop underlying the capital contribution in December 2017. We recognized a gain from deconsolidation of €2.0 million, including a gain on our retained noncontrolling investment of €0.4 million and a gain of €1.0 million from the recognition of receivables from a loan granted to myhotelshop in 2015. The loan of €1.0 million with myhotelshop remains outstanding at December 31, 2019. We consider myhotelshop a related party since the deconsolidation in December 2017. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other current assets | As of December 31, (in thousands) 2018 2019 Prepaid advertising € 6,267 € 2,148 Other prepaid expenses 1,341 2,076 Other assets 738 383 Total € 8,346 € 4,607 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | As of December 31, (in thousands) 2018 2019 Building and leasehold improvements € 120,738 € 17,844 Capitalized software and software development costs 16,123 22,713 Computer equipment 15,231 18,215 Furniture and fixtures 6,285 6,031 Office equipment 2,167 2,330 Subtotal 160,544 67,133 Less: accumulated depreciation 25,697 33,995 Construction in process 27,154 34 Property and equipment, net € 162,001 € 33,172 As of December 31, 2018, our headquarters in Düsseldorf, Germany was accounted for as a failed sale-leaseback and included in building and leasehold improvements. Upon adoption of the new leasing standard, ASC 842, on January 1, 2019, the contractual lease obligation was transitioned to being accounted for as an operating lease right-of use asset (see Note 2 - Significant accounting policies and Note 6: Leases for further information). As of December 31, 2018, our building and leasehold improvement costs, net of accumulated depreciation, were €118.3 million. We establish assets and liabilities for the present value of estimated future costs to return our new headquarters and certain other leased facilities to their original condition under the authoritative accounting guidance for asset retirement obligations. Such assets are depreciated over the useful live of the underlying asset or the lease period and the recorded liabilities are accreted to the future value of the estimated restoration costs. As of December 31, 2018 and 2019, an asset retirement obligation asset and liability of €0.6 million and €0.6 million, respectively, is included within building and leasehold improvements, gross of accumulated depreciation of €0.04 million and €0.1 million, respectively, for the cost to decommission the physical space of our headquarters and our leased facilities. We have certain operating lease agreements that require us to decommission physical space for which we have not yet recorded an asset retirement obligation. Due to the uncertainty of specific decommissioning obligations and related costs, we cannot reasonably estimate an asset retirement obligation for these properties and we have not recorded a liability at this time for such properties. As of December 31, 2018 and 2019, our internally developed capitalized software and acquired software development costs, net of accumulated amortization, were €9.0 million and €8.0 million, respectively. As of December 31, 2018 and 2019, our computer equipment costs, net of accumulated amortization, were €4.8 million and €5.3 million, respectively. |
Goodwill and intangible assets,
Goodwill and intangible assets, net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets, net | The following table presents our goodwill and intangible assets as of December 31, 2018 and 2019: As of December 31, (in thousands) 2018 2019 Goodwill € 490,529 € 490,590 Intangible assets with definite lives, net 2,064 379 Intangible assets with indefinite lives 169,545 169,545 Total € 662,138 € 660,514 Impairment Assessments As of December 31, 2018 and 2019, we had no accumulated impairment losses of goodwill or indefinite-lived intangible assets. 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, 2018 € 215,250 € 192,700 € 82,505 € 490,455 Foreign exchange translation 33 29 12 74 Balance as of December 31, 2018 € 215,283 € 192,729 € 82,517 € 490,529 Balance as of January 1, 2019 € 215,283 € 192,729 € 82,517 € 490,529 Foreign exchange translation 27 24 10 61 Balance as of December 31, 2019 € 215,310 € 192,753 € 82,527 € 490,590 Indefinite-lived Intangible Assets Our indefinite-lived intangible assets relate principally to trade names, trademarks and domain names. Intangible Assets with Definite Lives The following table presents the components of our intangible assets with definite lives as of December 31, 2018 and 2019: December 31, 2018 December 31, 2019 (in thousands) Cost (Accumulated Amortization) Net Cost (Accumulated Amortization) Net Customer relationships € 34 € (16) € 18 € 34 € (27) € 7 Partner relationships 34,254 (34,235) 19 34,254 (34,246) 8 Technology 60,145 (59,951) 194 60,145 (60,071) 74 Non-compete agreement 10,800 (8,967) 1,833 10,800 (10,510) 290 Total € 105,233 € (103,169) € 2,064 € 105,233 € (104,854) € 379 Amortization expense was €3.2 million for the year ended December 31, 2017, €1.7 million for the year ended December 31, 2018 and €1.7 million for the year ended December 31, 2019. The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2019, assuming no subsequent impairment of the underlying assets, is as follows: (in thousands) Amortization 2020 € 374 2021 1 2022 1 2023 1 Future years 2 Total € 379 |
Debt - credit facility
Debt - credit facility | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt - credit facility | We maintain a €50.0 million uncommitted credit facility with an interest rate of LIBOR, floored at zero, plus 1% per annum, which is guaranteed by Expedia Group, that may be terminated at any time by the lender. As of December 31, 2019, we had no borrowings outstanding on the consolidated balance sheet. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | For defined contribution plans, trivago pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. We have no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. The amount of expense recognized for defined contribution pension plans was not material for the years ended December 31, 2017, 2018 and 2019. |
Share-based awards and other eq
Share-based awards and other equity instruments | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
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 shall be 34,711,009 Class A shares, which does not include any Class B share conversions. Class A shares issuable under the 2016 Plan will be represented by ADSs for such Class A shares. The 2016 Plan was amended on March 6, 2017 to permit the delegation of certain responsibilities to the management board. The 2016 Plan was amended on August 3, 2017 to permit supervisory board members to be eligible for awards under the 2016 Plan. The Plan was amended on June 28, 2019 to permit the granting to management and supervisory board members an option to purchase Class A shares at less than fair market value of the underlying Class A shares. The 2016 Plan was also amended on July 18, 2019 to permit additional mechanics to settle transactions. 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 with 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, share appreciation rights, restricted 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 will also have a ten During the years ended 2018 and 2019, 5,002,236 and 4,406,619 awards, respectively, were granted under the 2016 Plan. We issue new shares to satisfy the exercise or settlement of share-based awards. The following table presents a summary of our share option activity for trivago N.V. shares: Options Weighted Remaining Aggregate (in €) (In years) (€ in thousands) Balance as of January 1, 2017 7,704,659 Granted 10,561,001 7.16 11,827 Exercised 1,093,428 0.13 14,860 Cancelled 63,658 8.15 366 Balance as of December 31, 2017 17,108,574 5.66 21 32,178 Granted 4,944,430 3.99 12,573 Exercised 531,410 0.30 2,855 Cancelled 828,196 6.23 1,182 Balance as of December 31, 2018 20,693,398 5.54 17 32,050 Granted 3,932,498 4.38 17,412 Exercised 1,218,560 5.45 5,034 Cancelled 2,233,623 3.98 1,572 Balance as of December 31, 2019 21,173,713 3.66 15 19,556 Exercisable as of December 31, 2019 10,456,082 3.66 24 9,774 Vested and expected to vest after December 31, 2019 21,208,693 3.64 15 19,556 The total intrinsic value of share options exercised was €2.9 million and €5.0 million for the year ended December 31, 2018 and December 31, 2019, respectively. During the years ended December 31, 2017, 2018 and 2019, we awarded share options as part of our share-based compensation. The fair value of share options granted during the years ended December 31, 2017, 2018 and 2019 were estimated at the date of grant using the Black-Scholes option-pricing model, assuming the following weighted average assumptions: Year ended December 31, 2017 2018 2019 Risk-free interest rate 2.18 % 1.74 % (0.56) % Expected volatility 41 % 33 % 50 % Expected life (in years) 4.62 4.42 4.50 Dividend yield — % — % — % Weighted-average estimated fair value of options granted during the year € 4 € 3 € 4 During the years ended December 31, 2018 and 2019, we granted restricted stock units (RSUs) as part of our share-based compensation. The RSUs are service-based awards which vest between one and three years. The fair value of the RSUs granted are based on the stock price on the day of grant. The following table presents a summary of our RSUs: RSUs Weighted Average Grant Date Fair Value Remaining (in €) (in years) Balance as of January 1, 2018 — — Granted 57,806 3.88 Vested — — Cancelled — — Balance as of December 31, 2018 57,806 3.88 7 Granted 474,121 4.25 Vested 38,262 3.88 Cancelled 8,000 5.29 Balance as of December 31, 2019 485,665 4.22 6 In 2017, 2018 and 2019, we recognized total share-based compensation expense of €16.0 million, €20.7 million and €19.9 million, respectively. There was no income tax benefit related to share-based compensation expense for 2017, 2018 and 2019. In 2017, €85 thousand of share-based compensation cost was capitalized as part of software development costs. No share-based compensation costs was capitalized in 2018 and 2019. Cash received from share-based award exercises for the years ended December 31, 2017, 2018 and 2019 was €42 thousand, €161 thousand and €202 thousand, respectively. As of December 31, 2019, there was approximately €20.4 million in unrecognized share-based compensation expense related to unvested share-based awards subject to equity treatment, which is expected to be recognized in expense over the weighted average period of 1.9 years. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The following table summarizes our income tax expense/(benefit): Year ended December 31, (€ thousands) 2017 2018 2019 Current income tax expense/(benefit): Germany € 323 € 2,225 € 18,769 Other countries 112 125 309 Current income tax expense/(benefit) 435 2,350 19,078 Deferred income tax expense/(benefit): Germany (4,851) (1,264) 2,020 Other countries (348) — (116) Deferred income tax expense/(benefit) (5,199) (1,264) 1,904 Income tax expense/(benefit) € (4,764) € 1,086 € 20,982 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) 2017 2018 2019 Germany € (20,018) € (20,574) € 36,750 Other countries 2,205 108 940 Income/loss) before income taxes € (17,813) € (20,466) € 37,690 A reconciliation of amounts computed by applying the German statutory income tax rate to income/(loss) before income taxes to total income tax expense/(benefit) is as follows: Year ended December 31, (€ thousands) 2017 2018 2019 Income/(loss) before income taxes € (17,813) € (20,466) € 37,690 Income tax expense at German tax rate (31.23%) (5,562) (6,391) 11,769 Foreign rate differential 33 (5) 100 Expected tax expense/(benefit) (5,529) (6,396) 11,869 Tax effect from: Non-deductible share-based compensation 5,017 6,465 6,211 Non-deductible corporate costs 34 — — Prior period taxes 6 96 66 Movement in valuation allowance (3,517) (184) 19 Foreign withholding taxes — 813 — Movement in uncertain tax positions — — 2,857 Other differences (775) 292 (40) Income tax expense/(benefit) € (4,764) € 1,086 € 20,982 The income tax expense/(benefit) is mainly driven by income/(loss) before income taxes of €(17.8) million, €(20.5) million and €37.7 million for the years ended December 31, 2017, 2018 and 2019, respectively. Our effective tax rate was 26.7%, (5.3)% and 55.7% in the years ended December 31, 2017, 2018 and 2019, respectively. Non-deductible share-based compensation of (pre-tax) €16.0 million, €20.7 million and €19.9 million had an impact on the effective tax rates of (28.2)%, (31.6)% and 16.5% in the years ended December 31, 2017, 2018 and 2019, respectively. In 2019, €2.9 million of the impact relates to movements in uncertain tax positions, with an impact of 7.6% on the 2019 effective tax rate. The uncertain tax positions relate to the tax deductibility of general and administrative expenses incurred by trivago N.V. in the 2017, 2018 and 2019 fiscal years. Additional details on the movement in valuation allowance are included below. Prior period taxes of €0.1 million and €0.1 million in 2018 and 2019, respectively, relate primarily to the results of tax audits for fiscal years 2013 to 2015 in trivago GmbH (the legal predecessor of trivago N.V.) In 2018, €0.8 million related to foreign withholding tax deductions. 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, 2018 and 2019 were as follows: Year Ended December 31, (€ thousands) 2018 2019 Balance, beginning of year € — € — Increases to tax positions related to the current year — 2,133 Increases to tax positions related to prior years — 720 Interest and penalties — 4 Balance, end of year € — € 2,857 Tax audits The Company is subject to audit by federal, state, local and foreign income tax authorities. As of December 31, 2019, there is an ongoing audit of tax returns from 2013 through 2015 for corporate and trade income tax as well as value-added tax for trivago N.V. According to the statute of limitation, the German tax authorities may initiate additional audits of tax returns for 2016 through 2019. Deferred income taxes At December 31, 2018 and 2019, the significant components of our deferred tax assets and deferred tax liabilities were as follows: Year Ended December 31, (€ thousands) 2018 2019 Deferred tax assets: Net operating loss and tax credit carryforwards € 949 € 429 Prepaid expense and other current assets 5,042 3,723 Deferred rent 1,778 1 Property and equipment 459 116 Accrued expenses and other current liabilities 1,381 147 Intangible assets, net 372 253 Operating lease liability — 31,130 Other long-term liabilities 299 311 Other 329 — Deferred tax assets (gross) 10,609 36,110 Less valuation allowance — (81) Subtotal 10,609 36,029 Offsetting (10,609) (35,294) Deferred tax assets — 735 Deferred tax liabilities: Intangible assets, net 53,499 53,021 Property and equipment 2,778 2,980 Operating lease right-of-use assets — 29,985 Accrued expenses and other current liabilities 448 — Other 434 235 Subtotal 57,159 86,221 Offsetting (10,609) (35,294) Deferred tax liabilities € 46,550 € 50,927 At December 31, 2019, we had net operating loss carryforwards (“NOLs”) for a tax-effected amount of approximately €0.4 million. The tax-effected NOL carryforwards decreased by €0.5 million from the amount recorded at December 31, 2018 primarily due to utilization of NOLs at the level of the trivago N.V. trivago N.V. is a Dutch listed entity, however has its tax residency in Germany. In 2017, trivago N.V. and trivago GmbH merged for tax purposes. This merger enabled trivago N.V. to offset its NOLs with any future taxable profits. As a result, the €3.2 million previously unrecognized losses of trivago N.V. have been recognized in 2017. All of this €3.2 million were utilized in 2017, 2018 and 2019. As of December 31, 2019, €0.3 million tax-effected NOLs are recognized for tax losses of Base7 Germany GmbH, which also may be carried forward indefinitely. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period change, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. The total cumulative amount of undistributed earnings related to investments in certain foreign subsidiaries where the foreign subsidiary has or will invest undistributed earnings indefinitely was €0.1 million at December 31, 2019. In terms of undistributed earnings of domestic investments, we have recognized deferred income taxes on taxable temporary difference of €0.02 million, 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. Deferred taxes of €1.7 million were recorded in retained earnings due to the adoption of ASC 842. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' equity Class A and Class B common stock (after the corporate reorganization, see Note 1 - Organization and basis of presentation) As of December 31, 2019, we had ADSs representing 50,816,706 Class A shares and 301,687,967 Class B shares outstanding. During the third quarter of 2017, the Founders exchanged their units in trivago GmbH for 110,791,880 Class B shares in trivago N.V. in connection with the merger of trivago GmbH with and into trivago N.V. Each Class B share is convertible into one Class A share at any time by the holder. During the years ended December 31, 2018 and 2019, 11,112,001 and 7,000,000 Class B shares were converted into Class A shares, respectively. Class A and Class B common stock has a par value of €0.06 and €0.60, respectively. The holders of our Class B shares, Expedia Group and Founders, are entitled to ten votes per share, and holders of our Class A shares are entitled to one vote per share. All other terms and preferences of Class A and Class B common stock are the same. Reserves Reserves primarily represents the effects of pushdown accounting applied due to the change in control in 2013 in addition to share premium as result of the corporate reorganization and IPO. See Note 1 - Organization and basis of presentation . Further effects to the Reserves are due to the merger of trivago GmbH with and into trivago N.V. in 2017, exercises of employee stock options, and the effect of the Founders' conversion of Class B shares to Class A shares in 2018 and 2019. Accumulated other comprehensive income/(loss) Accumulated other comprehensive income represents foreign currency translation adjustments for our subsidiaries in foreign locations. As of December 31, 2019 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, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per shareBasic and diluted earnings per share of Class A and Class B common stock is computed by dividing net income attributable to trivago N.V., after adjusting for noncontrolling interest, 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: (€ thousands, except per share data) January 1, 2017 January 1, 2018 January 1, 2019 Numerator: Net income/(loss) € (13,049) € (21,489) € 17,161 Less: net income attributable to noncontrolling interest 568 — — Net income/(loss) attributable to trivago N.V. € (12,481) € (21,489) € 17,161 Denominator: Weighted average shares of Class A and Class B common stock outstanding: Basic 274,666 350,852 351,991 Diluted 274,666 350,852 356,738 Earnings per share attributable to trivago N.V. available to Class A and Class B common stockholders: Basic € (0.05) € (0.06) € 0.05 Diluted € (0.05) € (0.06) € 0.05 Diluted weighted average common shares outstanding in 2017 and 2018 does 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, 2019 | |
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, 2019 were as follows: By Period (in thousands) Total Less than 1 to 3 years 3 to 5 years More than Purchase obligations € 11,941 € 11,941 € — € — € — Our purchase obligations represent minimum obligations we have under agreements with certain of our vendors and marketing partners. 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 From time to time, we may be involved in various claims and legal proceedings relating to claims arising out of our operations. We also evaluate other potential contingent matters, including value-added tax, excise tax, sales tax, transient occupancy or accommodation tax and similar matters. 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. The court has yet to set a date for the appeal or a separate trial regarding penalties and other orders. Management recorded an estimate of the probable loss as of December 31, 2019 in connection with these proceedings. In establishing a provision in respect of the ACCC matter, management took into account the information currently available, including historical precedents for conduct prior to September 1, 2018. However, there is considerable uncertainty regarding how the Australian Federal Court would calculate the penalties that will be ultimately assessed on us. In particular, the Australian Federal Court determined that we engaged in certain conduct after September 1, 2018 that will result in the applicability of the new penalty regime under the ACL, which significantly increased the maximum penalty applicable to parts of our conduct. No case has yet been decided assessing penalties for contraventions of the ACL under the new regime. As a result, an estimate of the reasonable possible loss or range of loss in excess of the amount reserved cannot be made. A consolidated class action was filed in the United States District Court for the Southern District of New York against us and other defendants, alleging securities law violations in our IPO registration statement and certain later disclosures. On February 26, 2019, the district court granted the motion to dismiss as to all defendants, without granting plaintiffs leave to further amend the complaint. On December 16, 2019, the United States Court of Appeals for the Second Circuit issued a summary order affirming the dismissal of the action. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related party transactions | Relationships with Expedia We have commercial relationships with Expedia Group, Inc. and many of its affiliated brands, including Brand Expedia, Hotels.com, Orbitz, Travelocity, Hotwire, Wotif, Vrbo and ebookers. These are arrangements terminable at will or upon three seven For the years ended December 31, 2017, 2018 and 2019, our operating expenses include €0.5 million, €0.8 million and €0.8 million, respectively, of related-party shared services fees and amounts related to the services and support agreements detailed below. During the year ended December 31, 2017, Expedia Group allocated certain legal, tax, treasury, audit and corporate development costs, including associated employee compensation costs. These expenses were allocated based on a number of factors including headcount, estimated time spent and operating expenses which trivago considers reasonable estimates. These amounts may have been different had trivago operated as an unaffiliated entity. In 2018 and 2019, no amounts were allocated as trivago started incurring these expenses directly. The related party trade receivable balances with Expedia Group and its subsidiaries reflected in our consolidated balance sheets as of December 31, 2018 and 2019 were €39.7 million and €30.9 million. Guarantee We have an uncommitted credit facility with Bank of America Merrill Lynch International Ltd., one of the underwriters of our initial public offering, with a maximum principal amount of €50.0 million. Advances under this facility bear interest at a rate of LIBOR, floored at zero, plus 1.0% per annum. This facility may be terminated at any time by the lender. Our obligations under this facility are guaranteed by Expedia Group. We did not utilize the credit facility during the years ended December 31, 2018 and 2019. Services agreement On May 1, 2013, we entered into an Assets Purchase Agreement, pursuant to which Expedia Group purchased certain computer hardware and software from us, and a Data Hosting Services Agreement, pursuant to which Expedia Group provides us with certain data hosting services relating to all of the servers we use that are located within the United States. Either party may terminate the Data Hosting Services Agreement upon 30 days’ prior written notice. For each of the years ended December 31, 2017, 2018 and 2019, we paid Expedia Group €68 thousand, €59 thousand and €45 thousand, respectively, for these data hosting services. Services and support agreement On September 1, 2016, we entered into a Services and Support Agreement, pursuant to which Expedia Group agreed to provide us with certain services in connection with localizing content on our websites, such as translation services. Either party may terminate the Services and Support Agreement upon 90 days’ prior notice. For each of the years ended December 31, 2017, 2018 and 2019, we incurred €0.4 million, €0.7 million and €0.8 million, respectively, for these services and support services. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Management has identified three reportable segments, which correspond to our three operating segments: the Americas, Developed Europe and Rest of World. Our Americas segment is comprised of Argentina, Barbados, Brazil, Canada, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Puerto Rico, the United States and Uruguay. Our Developed Europe segment is comprised of Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. Our Rest of World segment is comprised of all other countries, the most significant by revenue of which are Australia, Japan, India, Turkey and Israel. 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, 2017, 2018 and 2019. 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, 2017 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 424,993 € 391,667 € 203,673 € — € 1,020,333 Subscription revenue — — — 11,511 11,511 Other revenue — — — 3,539 3,539 Total revenue € 424,993 € 391,667 € 203,673 € 15,050 € 1,035,383 Advertising spend 324,487 338,072 222,126 — 884,685 ROAS contribution € 100,506 € 53,595 € (18,453) € 15,050 € 150,698 Costs and expenses: Cost of revenue, including related party, excluding amortization 5,930 Other selling and marketing, including related party (1) 62,240 Technology and content, including related party 52,232 General and administrative, including related party 47,444 Amortization of intangible assets 3,220 Operating loss € (20,368) Other income/(expense) Interest expense (44) Gain on deconsolidation of subsidiaries 2,007 Other, net 592 Total other income/(expense), net € 2,555 Loss before income taxes € (17,813) Expense/(benefit) for income taxes (4,764) Net loss € (13,049) (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2018 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 378,919 € 315,966 € 204,937 € — € 899,822 Subscription revenue — — — 13,863 13,863 Other revenue — — — 1,131 1,131 Total revenue € 378,919 € 315,966 € 204,937 € 14,994 € 914,816 Advertising spend 265,004 261,620 205,834 — 732,458 ROAS contribution € 113,915 € 54,346 € (897) € 14,994 € 182,358 Costs and expenses: Cost of revenue, including related party, excluding amortization 5,435 Other selling and marketing, including related party (1) 73,175 Technology and content, including related party 66,904 General and administrative, including related party 54,326 Amortization of intangible assets 1,684 Operating loss € (19,166) Other income/(expense) Interest expense (1,839) Other, net 539 Total other income/(expense), net € (1,300) Loss before income taxes € (20,466) Expense/(benefit) for income taxes 1,086 Loss before equity method investment € (21,552) Income from equity method investment 63 Net loss € (21,489) (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2019 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 347,094 € 305,061 € 171,469 € — € 823,624 Subscription revenue — — — 12,152 12,152 Other revenue — — — 2,841 2,841 Total revenue € 347,094 € 305,061 € 171,469 € 14,993 € 838,617 Advertising spend 230,291 233,949 152,465 — 616,705 ROAS contribution € 116,803 € 71,112 € 19,004 € 14,993 € 221,912 Costs and expenses: Cost of revenue, including related party, excluding amortization 9,159 Other selling and marketing, including related party (1) 47,450 Technology and content, including related party 69,924 General and administrative, including related party 55,543 Amortization of intangible assets 1,685 Operating income € 38,151 Other income/(expense) Interest expense (33) Other, net (428) Total other income/(expense), net € (461) Income before income taxes € 37,690 Expense/(benefit) for income taxes 20,982 Income before equity method investment € 16,708 Income from equity method investment 453 Net income € 17,161 (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Geographic information The following table presents revenue by geographic area for the years ended December 31, 2017, 2018 and 2019. Referral revenue was allocated by country using the same methodology as the allocation of segment revenue, while non-referral revenue was allocated based upon the location of the customer using the service. Year ended December 31, (in thousands) 2017 2018 2019 Total revenues United States € 255,501 € 194,416 € 192,526 United Kingdom 108,080 95,893 85,284 Germany 85,308 73,143 68,491 Australia 50,623 47,737 36,635 All other countries 535,871 503,627 455,681 € 1,035,383 € 914,816 € 838,617 The following table presents property and equipment, net for Germany and all other countries, as of December 31, 2018 and 2019: (€ thousands) Years ended December 31, 2018 2019 Property and equipment, net: Germany € 159,071 € 30,681 All other countries 2,930 2,491 € 162,001 € 33,172 |
Valuation and qualifying accoun
Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2019 | |
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 2017 Allowance for doubtful accounts € 152 € 2,275 € (2,196) € 231 2018 Allowance for doubtful accounts 231 580 (561) 250 2019 Allowance for doubtful accounts 250 754 (930) 74 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent eventsAfter the date of the balance sheet through the date of issuance of these consolidated financial statements, 457,579 Class A shares were issued as a result of options exercised and RSUs released. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation Upon the merger of trivago GmbH with and into trivago N.V., the merger date, no further noncontrolling interest exists between trivago GmbH and trivago N.V. Unless otherwise specified, “the Company” refers to trivago N.V., and trivago GmbH 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. The Expedia Group incurred certain costs on behalf of trivago. The consolidated financial statements included certain corporate expenses that were allocated to trivago by the Expedia Group (see Note 15: Related party transactions |
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 over which do not have control. We record noncontrolling interest in our consolidated financial statements to recognize the minority ownership interest in our consolidated subsidiaries. Noncontrolling interest in the earnings and losses of consolidated subsidiaries represent the share of net income or loss allocated to members or partners in our consolidated entities. It included the noncontrolling interest share of net income or loss from our redeemable noncontrolling interest entity myhotelshop until its deconsolidation in December 2017 and our noncontrolling interest in trivago GmbH; up and until the merger of trivago GmbH with and into trivago N.V. on September 7, 2017. As a result of the merger of trivago GmbH with and into trivago N.V. during 2017, as of December 31, 2017 there no longer remains a minority interest related to trivago GmbH classified as noncontrolling interest as a component of stockholders’ equity in our consolidated financial statements. |
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: recoverability of goodwill and indefinite-lived intangible assets, recoverability of intangible assets with definite lives and other long-lived assets, income taxes, legal and tax contingencies, business combinations and share-based compensation. |
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 Revenues are recognized 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 Revenue relates to fees earned on the display of a customer‘s (advertiser‘s) link on the trivago website on a cost-per-click (CPC) basis. Revenue from click-through fees is recorded 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. The prices per click for an advertising campaign, which generally have a duration of one month or less, are negotiated in advance, thus, the amount to be recognized as revenue for the respective click is fixed and determinable when the performance obligation has been satisfied. Most of our revenue is invoiced on a monthly basis after the performance obligation has been satisfied with payment terms between 10 to 90 days. For some advertisers we require prepayments. Subscription Revenue Revenue from subscription services is recognized ratably over the contract term, which is generally 12 months or less from the subscription commencement date. Customers may choose to be billed annually or monthly via SEPA or credit card. The price per subscription is fixed and determinable when the contract commences. We consider ourselves principal in all our revenue transactions. We do not have any unsatisfied performance obligations for contracts with an original expected length of one year or less and contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Cost of revenue | Cost of revenueCost of revenue consists of expenses that are directly or closely correlated to revenue generation, including data center costs, third-party cloud-related service providers, salaries and share-based compensation for our data center operations staff and our customer service team who are directly involved in revenue generation. |
Cash, cash equivalents and restricted cash | Cash and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, primarily time deposit investments, with maturities of three months or less when purchased. Restricted cash Restricted cash primarily consists of funds held as guarantees in connection with corporate leases and funds held in escrow accounts in the event of default on corporate credit card statements. The carrying value of restricted cash approximates its fair value. As of December 31, 2018 and December 31, 2019, |
Accounts receivable | Accounts receivable Accounts receivable are generally due within 10 to 90 days and are recorded net of an allowance for doubtful accounts. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole. Short-term investments Our short-term investments consist of call deposit accounts with notice periods of more than three but fewer than 12 months. |
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 five Certain direct development costs associated with website and internal-use software are capitalized during the application development stage. Capitalized costs include external direct costs of services and payroll costs (including share-based compensation). The payroll costs are for employees devoting time to the software development projects principally related to website and mobile app development, including support systems, software coding, designing system interfaces and installation and testing of the software. These costs are recorded as property and equipment and are generally amortized over a period of three 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 - subsequent to adoption of new accounting guidance We determine if an arrangement is a lease at inception. Operating leases are primarily for office space and, as of January 1, 2019 with the adoption of the new guidance for leasing arrangements, are included in operating lease right-of-use ("ROU") assets and operating lease liability 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 liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate as the discount rate in measuring the present value of lease payments given the rate implicit in our leases is not typically readily determinable. Estimating the incremental borrowing rate requires assessing a number of inputs including an estimated synthetic credit rating, collateral adjustments and interest rates. The operating lease ROU asset is comprised of the initial operating lease liability, adjusted for any prepaid or deferred rent payments, unamortized initial direct costs, and lease incentives received. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Payments under our operating leases are primarily fixed, however, certain of our operating lease agreements include rental payments which are adjusted periodically for inflation. We recognize these costs as variable lease costs on our consolidated statement of operations, which were not material during the year ended December 31, 2019. 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. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships and discount rates. 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 is assigned to our three reporting units, which correspond to our three operating segments, on the basis of their relative fair values as of the date of change in reporting units. We assess goodwill and indefinite-lived assets, neither of which are amortized, for impairment annually in the fourth quarter of the year, 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. Effective October 1, 2017, we prospectively adopted accounting guidance that simplified our goodwill impairment testing by eliminating the requirement to calculate the implied fair value of goodwill (formerly "Step 2") in the event an impairment is identified. Instead, 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, long-term rate of growth and profitability of our business. 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 and assessing comparable revenue and operating income multiples 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 in relation to the company’s total fair value. |
Recoverability of intangible assets with definite lives and other long-lived assets | 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 |
Income taxes | Income taxes We record income taxes under the liability method. Deferred tax assets and liabilities reflect our estimation of the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for book and tax purposes. We determine deferred income taxes based on the differences in accounting methods and timing between financial statement and income tax reporting. Accordingly, we determine the deferred tax asset or liability for each temporary difference based on the enacted tax rates expected to be in effect when we realize the underlying items of income and expense. We consider many factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as other relevant factors. We may establish a valuation allowance to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated results of operations, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates. We account for uncertain tax positions based on a two-step process of evaluating recognition and measurement criteria. The first step assesses whether the tax position is more likely than not to be sustained upon examination by the tax authority, including resolution of any appeals or litigation, based on the technical merits of the position. If the tax position meets the more likely than not criteria, the portion of the tax benefit greater than 50% likely to be realized upon settlement with the tax authority is recognized in the financial statements. Interest and penalties related to uncertain tax positions are classified in the financial statements as a component of income tax expense. Presentation of taxes in the statements of operations We present taxes that we collect from advertisers and remit to government authorities on a net basis in our consolidated statements of operations. |
Foreign currency translation and transaction gains and losses | Foreign currency translation and transaction gains and losses The consolidated Financial Statements have been prepared in euros, the reporting currency. Certain of our operations outside of the Eurozone use the local currency as their functional currency. We translate revenue and expense at average exchange rates during the period and assets and liabilities at the exchange rates as of the consolidated balance sheet dates and include such foreign currency translation gains and losses as a component of other comprehensive income. Due to the nature of our operations and our corporate structure, we also have subsidiaries that have significant transactions in foreign currencies other than their functional currency. We record transaction gains and losses in our consolidated statements of operations related to the recurring remeasurement and settlement of such transactions. |
Advertising expense | Advertising expense We incur advertising expense consisting of offline costs, including television and radio advertising, as well as online advertising expense 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 included in our consolidated financial statements relates to certain outstanding trivago employee options replaced with new trivago employee option awards exercisable into trivago Class A shares, in connection with the controlling-interest acquisition of trivago by the Expedia Group (formerly Expedia, Inc.) in 2013. During 2017, 2018 and 2019, there were additional awards granted in connection with the Omnibus Incentive Plan to employees of trivago. The fair value of share options accounted for as equity settled transactions is measured at the grant date using the Black-Scholes option pricing model. The valuation model incorporates 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 and other relevant factors. We use the simplified method in determining the term by using the midpoint between the vesting date and the end of the contractual term to estimate the term for all option grants subsequent of the IPO. 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. We amortize the fair value to the extent the awards qualify for equity treatment, over the vesting term on a straight-line basis. The majority of our share options are service-based awards which vest between one We have performance-based share options which vest upon achievement of certain company-based performance conditions and service conditions. On the date of grant, we determine the fair value of the performance-based award using the Black-Scholes option pricing model. The awards are then 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, and to the extent 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 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. As at December 31, 2019, there were no awards remaining subject to a performance target condition to be determined in a future period. We have Restricted Stock Units (RSUs), which are stock awards entitling the holder to shares of common stock as the award vests, were granted. The RSUs are service-based awards which vest between one and three years. 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. We amortize the fair value, net of actual forfeitures, as share-based compensation expense over the vesting term on a straight-line basis. For the years ended December 31, 2018 and 2019, we had no option awards classified as liabilities. We recognize the effect of forfeitures in the period that the award was forfeited. |
Reserves Available For Dividend Distribution | Reserves available for dividend distribution We do not at present plan to pay cash dividends on our Class A shares. Under Dutch law, we may only pay dividends to the extent that our shareholders’ equity ( eigen vermogen ) exceeds the sum of the paid-up and called-up share capital plus the reserves required to be maintained under Dutch law or by our articles of association (although we note that, presently, we are not required by our articles of association to maintain reserves in addition to those which we must maintain under Dutch law). Subject only to such restrictions, any future determination to pay dividends will be at the discretion of our management board (in some instances, subject to approval by a Founder). In making a determination to pay dividends, the management board must act in the interests of our company and its business, taking into account relevant interests of our shareholders and other factors that our management board considers relevant, including our results of operations, financial condition, and future prospects. |
Fair value recognition, measurement and disclosure | Fair value recognition, measurement and disclosure The carrying amounts of cash, 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. The 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 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 the Company's cash and customers with significant accounts receivable balances. |
Contingent liabilities | Contingent liabilities From time to time, we may be involved in various claims and legal proceedings relating to claims arising out of our operations, as discussed further in Note 14: Commitments and contingencies . Periodically, and at year end, we review the status of all significant outstanding matters to assess the potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time, which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. |
Adoption of new accounting pronouncements and Recent accounting policies not yet adopted | Adoption of new accounting pronouncements Leases . As of January 1, 2019, we adopted the Accounting Standards Updates (“ASU”) amending the guidance related to accounting and reporting guidelines for leasing arrangements using the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption. Results for reporting periods beginning after January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for those periods. The new guidance required entities that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases regardless of whether they are classified as finance or operating leases. In addition, new disclosures are required to meet the objective of enabling users of financial statements to better understand the amount, timing and uncertainty of cash flows arising from leases. We elected certain of the available practical expedients under the transition guidance, including those that permit us to not reassess 1) whether any expired or existing contracts are or contain leases, 2) the lease classification for any expired or existing leases, and 3) any initial direct costs for any existing leases as of the effective date. We did not elect the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. Additionally, we have elected the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods. As of January 1, 2019, we recorded on our consolidated balance sheet right-of use assets of approximately €103.5 million (representing right-of use assets of approximately €107.5 million net of approximately €4.0 million of existing lease incentives and deferred rent) as well as operating lease liabilities of approximately €107.5 million with no material impact to our consolidated statements of operations or cash flows. Additionally, we derecognized the assets and liabilities previously recorded pursuant to build-to-suit lease guidance resulting in an increase to retained earnings of approximately €3.8 million. Recent accounting pronouncements not yet adopted Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU 2016-13, which changes the guidance related to the measurement of credit losses for financial assets measured at amortized cost, including accounts receivable, and available-for-sale debt securities. The new guidance replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. This update is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statements; however, we currently do not expect a material impact. Cloud Computing Arrangements. In August 2018, the FASB issued ASU 2018-15, which provides additional guidance on the accounting for implementation costs incurred for a cloud computing arrangement that is a service contract. The amendments in the standard align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post implementation stages are expensed as the activities are performed. The additional guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statements. Fair Value Measurements. In August 2018, the FASB issued ASU 2018-13, which is applicable to all entities that are required under existing GAAP to make disclosures about recurring or nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements in ASC 820, Fair Value Measurement and is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statements, however, we currently do not expect a material impact. Income Taxes: In December 2019, the FASB issued ASU 2019-12 which eliminates, clarifies, and modifies certain guidance related to the accounting for income taxes. The new standard is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. We |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other current assets | As of December 31, (in thousands) 2018 2019 Prepaid advertising € 6,267 € 2,148 Other prepaid expenses 1,341 2,076 Other assets 738 383 Total € 8,346 € 4,607 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | As of December 31, (in thousands) 2018 2019 Building and leasehold improvements € 120,738 € 17,844 Capitalized software and software development costs 16,123 22,713 Computer equipment 15,231 18,215 Furniture and fixtures 6,285 6,031 Office equipment 2,167 2,330 Subtotal 160,544 67,133 Less: accumulated depreciation 25,697 33,995 Construction in process 27,154 34 Property and equipment, net € 162,001 € 33,172 |
Goodwill and intangible asset_2
Goodwill and intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019: As of December 31, (in thousands) 2018 2019 Goodwill € 490,529 € 490,590 Intangible assets with definite lives, net 2,064 379 Intangible assets with indefinite lives 169,545 169,545 Total € 662,138 € 660,514 |
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, 2018 € 215,250 € 192,700 € 82,505 € 490,455 Foreign exchange translation 33 29 12 74 Balance as of December 31, 2018 € 215,283 € 192,729 € 82,517 € 490,529 Balance as of January 1, 2019 € 215,283 € 192,729 € 82,517 € 490,529 Foreign exchange translation 27 24 10 61 Balance as of December 31, 2019 € 215,310 € 192,753 € 82,527 € 490,590 |
Components of intangible assets with definite lives | The following table presents the components of our intangible assets with definite lives as of December 31, 2018 and 2019: December 31, 2018 December 31, 2019 (in thousands) Cost (Accumulated Amortization) Net Cost (Accumulated Amortization) Net Customer relationships € 34 € (16) € 18 € 34 € (27) € 7 Partner relationships 34,254 (34,235) 19 34,254 (34,246) 8 Technology 60,145 (59,951) 194 60,145 (60,071) 74 Non-compete agreement 10,800 (8,967) 1,833 10,800 (10,510) 290 Total € 105,233 € (103,169) € 2,064 € 105,233 € (104,854) € 379 |
Schedule of definite lives intangible assets, future amortization expense | The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2019, assuming no subsequent impairment of the underlying assets, is as follows: (in thousands) Amortization 2020 € 374 2021 1 2022 1 2023 1 Future years 2 Total € 379 |
Share-based awards and other _2
Share-based awards and other equity instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock options activity | The following table presents a summary of our share option activity for trivago N.V. shares: Options Weighted Remaining Aggregate (in €) (In years) (€ in thousands) Balance as of January 1, 2017 7,704,659 Granted 10,561,001 7.16 11,827 Exercised 1,093,428 0.13 14,860 Cancelled 63,658 8.15 366 Balance as of December 31, 2017 17,108,574 5.66 21 32,178 Granted 4,944,430 3.99 12,573 Exercised 531,410 0.30 2,855 Cancelled 828,196 6.23 1,182 Balance as of December 31, 2018 20,693,398 5.54 17 32,050 Granted 3,932,498 4.38 17,412 Exercised 1,218,560 5.45 5,034 Cancelled 2,233,623 3.98 1,572 Balance as of December 31, 2019 21,173,713 3.66 15 19,556 Exercisable as of December 31, 2019 10,456,082 3.66 24 9,774 Vested and expected to vest after December 31, 2019 21,208,693 3.64 15 19,556 |
Schedule of stock options valuation assumptions | The fair value of share options granted during the years ended December 31, 2017, 2018 and 2019 were estimated at the date of grant using the Black-Scholes option-pricing model, assuming the following weighted average assumptions: Year ended December 31, 2017 2018 2019 Risk-free interest rate 2.18 % 1.74 % (0.56) % Expected volatility 41 % 33 % 50 % Expected life (in years) 4.62 4.42 4.50 Dividend yield — % — % — % Weighted-average estimated fair value of options granted during the year € 4 € 3 € 4 |
Schedule of RSU activity | The following table presents a summary of our RSUs: RSUs Weighted Average Grant Date Fair Value Remaining (in €) (in years) Balance as of January 1, 2018 — — Granted 57,806 3.88 Vested — — Cancelled — — Balance as of December 31, 2018 57,806 3.88 7 Granted 474,121 4.25 Vested 38,262 3.88 Cancelled 8,000 5.29 Balance as of December 31, 2019 485,665 4.22 6 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2017 2018 2019 Current income tax expense/(benefit): Germany € 323 € 2,225 € 18,769 Other countries 112 125 309 Current income tax expense/(benefit) 435 2,350 19,078 Deferred income tax expense/(benefit): Germany (4,851) (1,264) 2,020 Other countries (348) — (116) Deferred income tax expense/(benefit) (5,199) (1,264) 1,904 Income tax expense/(benefit) € (4,764) € 1,086 € 20,982 |
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) 2017 2018 2019 Germany € (20,018) € (20,574) € 36,750 Other countries 2,205 108 940 Income/loss) before income taxes € (17,813) € (20,466) € 37,690 |
Schedule of effective income tax rate reconciliation | A reconciliation of amounts computed by applying the German statutory income tax rate to income/(loss) before income taxes to total income tax expense/(benefit) is as follows: Year ended December 31, (€ thousands) 2017 2018 2019 Income/(loss) before income taxes € (17,813) € (20,466) € 37,690 Income tax expense at German tax rate (31.23%) (5,562) (6,391) 11,769 Foreign rate differential 33 (5) 100 Expected tax expense/(benefit) (5,529) (6,396) 11,869 Tax effect from: Non-deductible share-based compensation 5,017 6,465 6,211 Non-deductible corporate costs 34 — — Prior period taxes 6 96 66 Movement in valuation allowance (3,517) (184) 19 Foreign withholding taxes — 813 — Movement in uncertain tax positions — — 2,857 Other differences (775) 292 (40) Income tax expense/(benefit) € (4,764) € 1,086 € 20,982 |
Schedule of uncertain tax positions | Uncertain tax positions as of December 31, 2018 and 2019 were as follows: Year Ended December 31, (€ thousands) 2018 2019 Balance, beginning of year € — € — Increases to tax positions related to the current year — 2,133 Increases to tax positions related to prior years — 720 Interest and penalties — 4 Balance, end of year € — € 2,857 |
Schedule of deferred tax assets and liabilities | At December 31, 2018 and 2019, the significant components of our deferred tax assets and deferred tax liabilities were as follows: Year Ended December 31, (€ thousands) 2018 2019 Deferred tax assets: Net operating loss and tax credit carryforwards € 949 € 429 Prepaid expense and other current assets 5,042 3,723 Deferred rent 1,778 1 Property and equipment 459 116 Accrued expenses and other current liabilities 1,381 147 Intangible assets, net 372 253 Operating lease liability — 31,130 Other long-term liabilities 299 311 Other 329 — Deferred tax assets (gross) 10,609 36,110 Less valuation allowance — (81) Subtotal 10,609 36,029 Offsetting (10,609) (35,294) Deferred tax assets — 735 Deferred tax liabilities: Intangible assets, net 53,499 53,021 Property and equipment 2,778 2,980 Operating lease right-of-use assets — 29,985 Accrued expenses and other current liabilities 448 — Other 434 235 Subtotal 57,159 86,221 Offsetting (10,609) (35,294) Deferred tax liabilities € 46,550 € 50,927 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The following table presents our basic and diluted earnings per share: (€ thousands, except per share data) January 1, 2017 January 1, 2018 January 1, 2019 Numerator: Net income/(loss) € (13,049) € (21,489) € 17,161 Less: net income attributable to noncontrolling interest 568 — — Net income/(loss) attributable to trivago N.V. € (12,481) € (21,489) € 17,161 Denominator: Weighted average shares of Class A and Class B common stock outstanding: Basic 274,666 350,852 351,991 Diluted 274,666 350,852 356,738 Earnings per share attributable to trivago N.V. available to Class A and Class B common stockholders: Basic € (0.05) € (0.06) € 0.05 Diluted € (0.05) € (0.06) € 0.05 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term purchase commitment | Commitments and obligations as of December 31, 2019 were as follows: By Period (in thousands) Total Less than 1 to 3 years 3 to 5 years More than Purchase obligations € 11,941 € 11,941 € — € — € — |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present our segment information for the years ended December 31, 2017, 2018 and 2019. 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, 2017 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 424,993 € 391,667 € 203,673 € — € 1,020,333 Subscription revenue — — — 11,511 11,511 Other revenue — — — 3,539 3,539 Total revenue € 424,993 € 391,667 € 203,673 € 15,050 € 1,035,383 Advertising spend 324,487 338,072 222,126 — 884,685 ROAS contribution € 100,506 € 53,595 € (18,453) € 15,050 € 150,698 Costs and expenses: Cost of revenue, including related party, excluding amortization 5,930 Other selling and marketing, including related party (1) 62,240 Technology and content, including related party 52,232 General and administrative, including related party 47,444 Amortization of intangible assets 3,220 Operating loss € (20,368) Other income/(expense) Interest expense (44) Gain on deconsolidation of subsidiaries 2,007 Other, net 592 Total other income/(expense), net € 2,555 Loss before income taxes € (17,813) Expense/(benefit) for income taxes (4,764) Net loss € (13,049) (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2018 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 378,919 € 315,966 € 204,937 € — € 899,822 Subscription revenue — — — 13,863 13,863 Other revenue — — — 1,131 1,131 Total revenue € 378,919 € 315,966 € 204,937 € 14,994 € 914,816 Advertising spend 265,004 261,620 205,834 — 732,458 ROAS contribution € 113,915 € 54,346 € (897) € 14,994 € 182,358 Costs and expenses: Cost of revenue, including related party, excluding amortization 5,435 Other selling and marketing, including related party (1) 73,175 Technology and content, including related party 66,904 General and administrative, including related party 54,326 Amortization of intangible assets 1,684 Operating loss € (19,166) Other income/(expense) Interest expense (1,839) Other, net 539 Total other income/(expense), net € (1,300) Loss before income taxes € (20,466) Expense/(benefit) for income taxes 1,086 Loss before equity method investment € (21,552) Income from equity method investment 63 Net loss € (21,489) (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. Year Ended December 31, 2019 (€ thousands) Developed Europe Americas Rest of World Corporate & Eliminations Total Referral revenue € 347,094 € 305,061 € 171,469 € — € 823,624 Subscription revenue — — — 12,152 12,152 Other revenue — — — 2,841 2,841 Total revenue € 347,094 € 305,061 € 171,469 € 14,993 € 838,617 Advertising spend 230,291 233,949 152,465 — 616,705 ROAS contribution € 116,803 € 71,112 € 19,004 € 14,993 € 221,912 Costs and expenses: Cost of revenue, including related party, excluding amortization 9,159 Other selling and marketing, including related party (1) 47,450 Technology and content, including related party 69,924 General and administrative, including related party 55,543 Amortization of intangible assets 1,685 Operating income € 38,151 Other income/(expense) Interest expense (33) Other, net (428) Total other income/(expense), net € (461) Income before income taxes € 37,690 Expense/(benefit) for income taxes 20,982 Income before equity method investment € 16,708 Income from equity method investment 453 Net income € 17,161 (1) Represents all other sales and marketing, excluding Advertising Spend, as Advertising Spend is tracked by reporting segment. |
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, 2017, 2018 and 2019. Referral revenue was allocated by country using the same methodology as the allocation of segment revenue, while non-referral revenue was allocated based upon the location of the customer using the service. Year ended December 31, (in thousands) 2017 2018 2019 Total revenues United States € 255,501 € 194,416 € 192,526 United Kingdom 108,080 95,893 85,284 Germany 85,308 73,143 68,491 Australia 50,623 47,737 36,635 All other countries 535,871 503,627 455,681 € 1,035,383 € 914,816 € 838,617 The following table presents property and equipment, net for Germany and all other countries, as of December 31, 2018 and 2019: (€ thousands) Years ended December 31, 2018 2019 Property and equipment, net: Germany € 159,071 € 30,681 All other countries 2,930 2,491 € 162,001 € 33,172 |
Valuation and qualifying acco_2
Valuation and qualifying accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of 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 2017 Allowance for doubtful accounts € 152 € 2,275 € (2,196) € 231 2018 Allowance for doubtful accounts 231 580 (561) 250 2019 Allowance for doubtful accounts 250 754 (930) 74 |
Organization and basis of pre_2
Organization and basis of presentation (Details) - € / shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 |
Messrs. Schrömgens, Vinnemeier and Siewert | |||
Subsidiary, Sale of Stock [Line Items] | |||
Ownership percentage by noncontrolling owners | 3170.00% | ||
Trivago N.V. | |||
Subsidiary, Sale of Stock [Line Items] | |||
Ownership percentage by parent | 6830.00% | ||
Common Class A [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Class common stock, par value (in EUR per ADS) | € 0.06 | € 0.06 | |
Expedia | |||
Subsidiary, Sale of Stock [Line Items] | |||
Noncontrolling Interest, Voting Interest, Percentage | 68.10% | ||
Expedia | Expedia | |||
Subsidiary, Sale of Stock [Line Items] | |||
Ownership percentage by parent | 59.30% | ||
Messrs. Schrömgens, Vinnemeier and Siewert | |||
Subsidiary, Sale of Stock [Line Items] | |||
Indirect ownership percentage by Parent | 26.30% | ||
Indirect voting power percentage by Parent | 30.20% |
Significant accounting polici_3
Significant accounting policies (Details) | 12 Months Ended | |||||||||
Dec. 31, 2019EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2019EUR (€)reporting_unit | Dec. 31, 2019EUR (€) | Dec. 31, 2019EUR (€)segment | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Dec. 31, 2016 | Jan. 01, 2019EUR (€) | ||
Significant Accounting Policies [Line Items] | ||||||||||
Deferred revenue | € 5,553,000 | € 5,553,000 | € 5,553,000 | € 5,553,000 | € 5,553,000 | € 7,863,000 | € 8,900,000 | |||
Revenue recognized that was included in beginning deferred revenue balance | 7,600,000 | 8,000,000 | ||||||||
Amortization of intangible assets | [1] | 1,685,000 | 1,684,000 | 3,220,000 | ||||||
Restricted cash | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 | 2.4 | ||||
Restricted cash, noncurrent | 2,300,000 | 2,300,000 | 2,300,000 | 2,300,000 | 2,300,000 | |||||
Land rent expense | 1,800,000 | 1,700,000 | ||||||||
Depreciation | 10,298,000 | 11,370,000 | 7,802,000 | |||||||
Reserves Restricted For Dividend Distribution | 190,700,000 | 190,700,000 | € 190,700,000 | 190,700,000 | € 190,700,000 | 193,400,000 | ||||
Number of reporting units | 3 | 3 | ||||||||
Number of operating segments | segment | 3 | |||||||||
Advertising spend | 616,705,000 | 732,458,000 | € 884,685,000 | |||||||
Prepaid advertising | 2,148,000 | 2,148,000 | € 2,148,000 | 2,148,000 | € 2,148,000 | 6,267,000 | ||||
Operating lease right-of-use assets | 96,030,000 | 96,030,000 | 96,030,000 | 96,030,000 | 96,030,000 | |||||
Total operating lease liabilities | 99,697,000 | 99,697,000 | 99,697,000 | 99,697,000 | 99,697,000 | |||||
Impact of adoption of new accounting guidance | € 3,799,000 | 3,799,000 | 3,799,000 | € 3,799,000 | 3,799,000 | 143,000 | ||||
Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Performance obligation payment terms | 10 days | |||||||||
Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Intangible asset, useful life | 7 years | |||||||||
Performance obligation payment terms | 90 days | |||||||||
Computer equipment, capitalized software and software development cost and furniture and other equipment | Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Property and equipment useful life | 3 years | |||||||||
Computer equipment, capitalized software and software development cost and furniture and other equipment | Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Property and equipment useful life | 5 years | |||||||||
Buildings | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Depreciation | € 1,600,000 | |||||||||
Software Development Costs | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Property and equipment useful life | 3 years | |||||||||
Software Enhancement Costs | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Property and equipment useful life | 3 years | |||||||||
RSUs | Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Award vesting period (in years) | 1 year | |||||||||
RSUs | Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Award vesting period (in years) | 3 years | |||||||||
Stock Option | Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Award vesting period (in years) | 1 year | 2 years | 2 years | |||||||
Stock Option | Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Award vesting period (in years) | 3 years | 3 years | 3 years | |||||||
Expedia | Customer Concentration Risk | Revenue | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk, percentage | 34.00% | 36.00% | 36.00% | |||||||
Expedia | Customer Concentration Risk | Accounts Receivable | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk, percentage | 45.00% | 41.00% | ||||||||
Booking Holdings [Member] | Customer Concentration Risk | Revenue | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk, percentage | 40.00% | 39.00% | 44.00% | |||||||
Booking Holdings [Member] | Customer Concentration Risk | Accounts Receivable | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Concentration risk, percentage | 28.00% | 35.00% | ||||||||
Acquired technology | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Amortization of intangible assets | 143,000 | € 278,000 | € 59,000 | |||||||
Capitalized software and software development costs | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Amortization of intangible assets | 4,300,000 | 3,000,000 | € 1,700,000 | |||||||
ASU 2016-02 | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Operating lease right-of-use assets | € 103,500,000 | |||||||||
Right-of use asset, gross | 107,500,000 | |||||||||
Right-of use asset, lease incentives and deferred rent | 4,000,000 | |||||||||
Total operating lease liabilities | 107,500,000 | |||||||||
Impact of adoption of new accounting guidance | € 3,800,000 | |||||||||
Retained earnings (accumulated deficit) | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Impact of adoption of new accounting guidance | € 3,799,000 | € 3,799,000 | € 3,799,000 | € 3,799,000 | € 3,799,000 | € 143,000 | ||||
[1] | Year ended December 31, 2017 2018 2019 Amortization of internal use software costs included in — — 360 Amortization of acquired technology included in amortization of intangible assets 59 278 143 Amortization of internal use software and website development costs included in technology and content 1,742 2,214 3,239 Amortization of internal use software costs included in general and administrative 408 785 656 |
Acquisitions and divestitures -
Acquisitions and divestitures - Divestitures (Details) - EUR (€) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2017 | |
Noncontrolling Interest [Line Items] | |||||
Total purchase consideration | € 700,000 | ||||
Gain from divestiture | € 0 | € 0 | € 2,007,000 | ||
Myhotelshop N.V. | |||||
Noncontrolling Interest [Line Items] | |||||
Number of shares issued in transaction (in shares) | 8,074 | ||||
Proceeds from issuance of new shares | € 0.1 | ||||
Percentage ownership before transaction | 61.30% | ||||
Percentage ownership after transaction | 49.00% | ||||
Gain from divestiture | € 2,000,000 | ||||
Gain on retained noncontrolling investment | 400,000 | ||||
Gain recognized on receivable from loan granted to investment | € 1,000,000 | ||||
Due from Related Parties, Noncurrent | € 1,000,000 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid advertising | € 2,148 | € 6,267 |
Other prepaid expenses | 2,076 | 1,341 |
Other assets | 383 | 738 |
Total | € 4,607 | € 8,346 |
Property and equipment, net (De
Property and equipment, net (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | € 160,544 | € 67,133 |
Less: accumulated depreciation | 25,697 | 33,995 |
Property and equipment, net | 162,001 | 33,172 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 120,738 | 17,844 |
Capitalized software and software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,123 | 22,713 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,231 | 18,215 |
Property and equipment, net | 4,800 | 5,300 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,285 | 6,031 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,167 | 2,330 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27,154 | 34 |
Building and leasehold improvements with asset retirement obligations | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 600 | 600 |
Less: accumulated depreciation | 40 | 100 |
Software Development Costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 9,000 | € 8,000 |
Impairment charges | 1,500 | |
Düsseldorf, Germany | Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | € 118,300 |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease cost | € 10,000 | ||
Operating leases, rent expense | € 4,700 | € 4,800 | |
Sublease income | € 100 | ||
Sublease income | 1,000 | ||
Cash payments for operating leases | 10,200 | ||
New operating lease assets obtained in exchange for operating lease liabilities | 103,498 | ||
Operating lease right-of-use assets | 96,030 | ||
Operating lease liability | 5,037 | ||
Operating lease liability | 94,660 | ||
Total operating lease liabilities | € 99,697 | ||
Weighted average remaining lease term | 17 years 7 months 6 days | ||
Weighted average discount rate | 3.80% | ||
2020 | € 8,718 | ||
2021 | 8,705 | ||
2022 | 8,473 | ||
2023 | 7,816 | ||
2024 | 7,816 | ||
2025 and thereafter | 95,592 | ||
Total lease payments | 137,120 | ||
Less: imputed interest | € 37,423 | ||
Lessee, Lease, Description [Line Items] | |||
Option to extend term | ten years | ||
Option to terminate period | 1 year | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 18 years |
Goodwill and intangible asset_3
Goodwill and intangible assets, net (Details) - EUR (€) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | € 490,529,000 | € 490,529,000 | € 490,455,000 | € 490,590,000 | € 490,529,000 | |
Intangible assets with definite lives, net | 379,000 | 2,064,000 | ||||
Intangible assets with indefinite lives | 169,545,000 | 169,545,000 | ||||
Total | 660,514,000 | 662,138,000 | ||||
Accumulated impairment losses of goodwill | 0 | 0 | ||||
Accumulated impairment losses of indefinite-lived intangible assets | 0 | 0 | ||||
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | 490,529,000 | 490,455,000 | ||||
Foreign exchange translation | 61,000 | 74,000 | ||||
Goodwill, Ending Balance | 490,590,000 | 490,529,000 | 490,455,000 | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Cost | 105,233,000 | 105,233,000 | ||||
(Accumulated Amortization) | (104,854,000) | (103,169,000) | ||||
Amortization of intangible assets | [1] | 1,685,000 | 1,684,000 | 3,220,000 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
2019 | 374,000 | |||||
2020 | 1,000 | |||||
2021 | 1,000 | |||||
2022 | 2,000 | |||||
Future years | 1,000 | |||||
Developed Europe | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 215,310,000 | 215,283,000 | 215,250,000 | 215,310,000 | 215,283,000 | |
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | 215,283,000 | 215,250,000 | ||||
Foreign exchange translation | 27,000 | 33,000 | ||||
Goodwill, Ending Balance | 215,310,000 | 215,283,000 | 215,250,000 | |||
Americas | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 192,753,000 | 192,729,000 | 192,700,000 | 192,753,000 | 192,729,000 | |
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | 192,729,000 | 192,700,000 | ||||
Foreign exchange translation | 24,000 | 29,000 | ||||
Goodwill, Ending Balance | 192,753,000 | 192,729,000 | 192,700,000 | |||
Rest of World | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 82,527,000 | 82,517,000 | 82,505,000 | 82,527,000 | 82,517,000 | |
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | 82,517,000 | 82,505,000 | ||||
Foreign exchange translation | 10,000 | 12,000 | ||||
Goodwill, Ending Balance | € 82,527,000 | € 82,517,000 | € 82,505,000 | |||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets with definite lives, net | 7,000 | 18,000 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Cost | 34,000 | 34,000 | ||||
(Accumulated Amortization) | (27,000) | (16,000) | ||||
Partner relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets with definite lives, net | 8,000 | 19,000 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Cost | 34,254,000 | 34,254,000 | ||||
(Accumulated Amortization) | (34,246,000) | (34,235,000) | ||||
Technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets with definite lives, net | 74,000 | 194,000 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Cost | 60,145,000 | 60,145,000 | ||||
(Accumulated Amortization) | (60,071,000) | (59,951,000) | ||||
Non-compete agreement | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets with definite lives, net | 290,000 | 1,833,000 | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Cost | 10,800,000 | 10,800,000 | ||||
(Accumulated Amortization) | € (10,510,000) | € (8,967,000) | ||||
[1] | Year ended December 31, 2017 2018 2019 Amortization of internal use software costs included in — — 360 Amortization of acquired technology included in amortization of intangible assets 59 278 143 Amortization of internal use software and website development costs included in technology and content 1,742 2,214 3,239 Amortization of internal use software costs included in general and administrative 408 785 656 |
Debt - credit facility (Details
Debt - credit facility (Details) - Uncommitted Credit Facility | 12 Months Ended |
Dec. 31, 2019EUR (€) | |
Line of Credit Facility [Line Items] | |
Uncommitted credit facility principle amount | € 50,000,000 |
LIBOR | |
Line of Credit Facility [Line Items] | |
Debt basis spread on variable rate | 1.00% |
Share-based awards and other _3
Share-based awards and other equity instruments - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019EUR (€)shares | Dec. 31, 2018EUR (€)shares | Dec. 31, 2017EUR (€)shares | Dec. 31, 2016€ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options outstanding (in shares) | shares | 21,173,713 | 20,693,398 | 17,108,574 | 7,704,659 |
Granted (in shares) | shares | 3,932,498 | 4,944,430 | 10,561,001 | |
Common stock, conversion ratio | 0.001 | 0.001 | ||
Exercised (in share) | shares | 1,218,560 | 531,410 | 1,093,428 | |
Contribution from Parent | € 122,307,000 | € 122,307,000 | ||
Share-based compensation | 19,900,000 | 20,700,000 | € 16,000,000 | |
Proceeds from exercise of option awards | 202,000 | 161,000 | 42,000 | |
Intrinsic value of shares exercised | 5,034,000 | 2,855,000 | 14,860,000 | |
Income tax benefit related to share-based compensation expense | 0 | € 0 | 0 | |
Capitalized share-based compensation cost | 0 | € 85,000 | ||
Unrecognized share-based compensation expense | € 20,400,000 | |||
Unrecognized share-based compensation expense, period for recognition | 1 year 10 months 24 days | |||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Strike price for majority of options (in EUR per share) | € / shares | € 1 | |||
Stock Option | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 1 year | 2 years | 2 years | |
Stock Option | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | 3 years | 3 years | |
2016 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | shares | 34,711,009 | |||
Number of supervisory board in plan administration committee | 2 | |||
Share-based payment award, term | 10 years | |||
Number of shares awarded (in shares) | shares | 4,406,619 | 5,002,236 | ||
2016 Omnibus Incentive Plan | Share Appreciation Rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, term | 10 years | |||
Common Class A [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, conversion ratio | 1 | |||
Common Class B [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, conversion ratio | 1 | 1 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options | |||
Beginning balance (in shares) | 20,693,398 | 17,108,574 | 7,704,659 |
Granted (in shares) | 3,932,498 | 4,944,430 | 10,561,001 |
Exercised (in share) | 1,218,560 | 531,410 | 1,093,428 |
Canceled (in shares) | 2,233,623 | 828,196 | 63,658 |
Ending balance (in shares) | 21,173,713 | 20,693,398 | 17,108,574 |
Exercisable (in shares) | 10,456,082 | ||
Vested and expected to vest (in shares) | 21,208,693 | ||
Weighted average exercise price | |||
Beginning balance, Weighted average exercise price (in EUR per share) | € 5.54 | € 5.66 | |
Granted, Weighted average exercise price (in EUR per share) | 4.38 | 3.99 | 7.16 |
Exercised, Weighted average exercise price (in EUR per share) | 5.45 | 0.30 | 0.13 |
Canceled, Weighted average exercise price (in EUR per share) | 3.98 | 6.23 | 8.15 |
Ending balance, Weighted average exercise price (in EUR per share) | 3.66 | € 5.54 | € 5.66 |
Exercisable, Weighted average exercise price (in EUR per share) | 3.66 | ||
Vested and expected to vest, Weighted average exercise price (in EUR per share) | € 3.64 | ||
Outstanding, Remaining contractual term (in years) | 15 years | 17 years | 21 years |
Exercisable, Remaining contractual term (in years) | 24 years | ||
Vested and expected to vest after, Remaining contractual life (in years) | 15 years | ||
Outstanding, Aggregate intrinsic value | € 19,556 | € 32,050 | € 32,178 |
Granted, Aggregate intrinsic value | 17,412 | 12,573 | 11,827 |
Exercised, Aggregate intrinsic value | 5,034 | 2,855 | 14,860 |
Canceled, Aggregate intrinsic value | 1,572 | 1,182 | € 366 |
Outstanding, Aggregate intrinsic value | 32,050 | € 32,178 | |
Exercisable, Aggregate intrinsic value | 9,774 | ||
Vested and expected to vest, Aggregate intrinsic value | € 19,556 |
Share-based awards and other _5
Share-based awards and other equity instruments - Stock options fair value assumptions (Details) - € / shares € / shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 0.56% | 1.74% | 2.18% |
Expected volatility | 50.00% | 33.00% | 41.00% |
Expected life (in years) | 4 years 6 months | 4 years 5 months 1 day | 4 years 7 months 13 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of options granted during the year (in EUR per share) | € 4 | € 3 | € 4 |
Share-based awards and other _6
Share-based awards and other equity instruments - RSUs activity (Details) - RSUs - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
RSUs | ||
Beginning balance (in shares) | 57,806 | 0 |
Granted (in shares) | 474,121 | 57,806 |
Vested (in shares) | 38,262 | 0 |
Cancelled (in shares) | 8,000 | 0 |
Ending balance (in shares) | 485,665 | 57,806 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Beginning balance (in EUR per share) | $ 3.88 | $ 0 |
Granted (in EUR per share) | 4.25 | 3.88 |
Vested (in EUR per share) | 3.88 | 0 |
Cancelled (in EUR per share) | 5.29 | 0 |
Ending balance (in EUR per share) | $ 4.22 | $ 3.88 |
Granted, remaining contractual life | ||
Ending balance, remaining contractual life | 6 years | 7 years |
Income taxes - Schedule of inco
Income taxes - Schedule of income tax expenses/(benefit) (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense/(benefit): | |||
Germany | € 18,769 | € 2,225 | € 323 |
Other countries | 309 | 125 | 112 |
Current income tax expense/(benefit) | 19,078 | 2,350 | 435 |
Deferred income tax expense/(benefit): | |||
Germany | 2,020 | (1,264) | (4,851) |
Other countries | (116) | 0 | (348) |
Deferred income tax expense/(benefit) | 1,904 | (1,264) | (5,199) |
Income tax expense/(benefit) | € 20,982 | € 1,086 | € (4,764) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Germany | € 36,750 | € (20,574) | € (20,018) |
Other countries | 940 | 108 | 2,205 |
Income/(loss) before income taxes | 37,690 | (20,466) | (17,813) |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense at German tax rate (31.23%) | 11,769 | (6,391) | (5,562) |
Foreign rate differential | 100 | (5) | 33 |
Expected tax expense/(benefit) | 11,869 | (6,396) | (5,529) |
Tax effect from: | |||
Non-deductible share-based compensation | 6,211 | 6,465 | 5,017 |
Non-deductible corporate costs | 0 | 0 | 34 |
Prior period taxes | 66 | 96 | 6 |
Movement in valuation allowance | 19 | (184) | (3,517) |
Foreign withholding taxes | 0 | 813 | 0 |
Movement in uncertain tax positions | 2,857 | 0 | 0 |
Other differences | (40) | 292 | (775) |
Income tax expense/(benefit) | € 20,982 | € 1,086 | € (4,764) |
German tax rate | 31.23% | 31.23% | 31.23% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | |
Operating Loss Carryforwards [Line Items] | |||
Income (loss) before income taxes | € 37,690 | € (20,466) | € (17,813) |
Effective tax rate | 55.70% | (5.30%) | 26.70% |
Share-based compensation | € 19,900 | € 20,700 | € 16,000 |
Impact of non-deductible share-based compensation on effective tax rate | 16.50% | (31.60%) | (28.20%) |
Uncertain tax positions | € 2,857 | € 0 | € 0 |
Impact of uncertain tax positions on effective tax rate | 0.076 | ||
Foreign withholding taxes | € 0 | 813 | 0 |
NOLs carryforwards | 429 | 949 | |
Decrease in NOL | (500) | ||
Net operating loss carryforwards | 3,200 | ||
NOLs utilized | 3,200 | 3,200 | € 3,200 |
Tax-effected NOLs recognized for tax losses that can be carried forward indefinitely | 300 | ||
Undistributed earnings of foreign subsidiaries (less than) | 100 | ||
Undistributed earnings in domestic subsidiaries | 20 | ||
Deferred income taxes | € 735 | 0 | |
German | |||
Operating Loss Carryforwards [Line Items] | |||
Undistributed earnings in domestic subsidiaries percentage | 0.05 | ||
Percentage of tax exempt capital gains on sale of participations | 0.95 | ||
ASU 2016-02 | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred income taxes | € 1,700 | ||
Trivago GmbH | |||
Operating Loss Carryforwards [Line Items] | |||
Prior period taxes related to results of tax audits | € 100 | € 100 |
Income taxes - Uncertain Tax Po
Income taxes - Uncertain Tax Positions (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | € 0 | € 0 |
Increases to tax positions related to the current year | 2,133 | 0 |
Increases to tax positions related to prior years | 720 | 0 |
Interest and penalties | 4 | 0 |
Balance, end of year | € 2,857 | € 0 |
Income taxes - Deferred Income
Income taxes - Deferred Income Taxes (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss and tax credit carryforwards | € 429 | € 949 |
Prepaid expense and other current assets | 3,723 | 5,042 |
Deferred rent | 1 | 1,778 |
Property and equipment | 116 | 459 |
Accrued expenses and other current liabilities | 147 | 1,381 |
Intangible assets, net | 253 | 372 |
Operating lease liability | 31,130 | |
Other long-term liabilities | 311 | 299 |
Other | 0 | 329 |
Deferred tax assets (gross) | 36,110 | 10,609 |
Less valuation allowance | (81) | 0 |
Subtotal | 36,029 | 10,609 |
Offsetting | (35,294) | (10,609) |
Deferred tax assets | 735 | 0 |
Deferred tax liabilities: | ||
Intangible assets, net | 53,021 | 53,499 |
Property and equipment | 2,980 | 2,778 |
Operating lease right-of-use assets | 29,985 | |
Accrued expenses and other current liabilities | 0 | 448 |
Other | 235 | 434 |
Subtotal | 86,221 | 57,159 |
Offsetting | (35,294) | (10,609) |
Deferred tax liabilities | € (50,927) | € (46,550) |
Stockholders' equity (Details)
Stockholders' equity (Details) | 12 Months Ended | ||||
Dec. 31, 2019voting_right€ / sharesshares | Dec. 31, 2018€ / sharesshares | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017shares | |
Class of Stock [Line Items] | |||||
Common stock, conversion ratio | 0.001 | 0.001 | |||
Common Class A [Member] | |||||
Class of Stock [Line Items] | |||||
Entity Common Stock, Shares Outstanding | 50,816,706 | 42,559,884 | |||
Common stock, conversion ratio | 1 | ||||
Class common stock, par value (in EUR per ADS) | € / shares | € 0.06 | € 0.06 | |||
Common Class B [Member] | |||||
Class of Stock [Line Items] | |||||
Entity Common Stock, Shares Outstanding | 301,687,967 | 308,687,967 | |||
Common stock, conversion ratio | 1 | 1 | |||
Shares converted (in shares) | 7,000,000 | 11,112,001 | |||
Class common stock, par value (in EUR per ADS) | € / shares | € 0.60 | € 0.60 | |||
Common stock, voting rights per share | voting_right | 10 | ||||
Trivago GmbH | Common Class A [Member] | |||||
Class of Stock [Line Items] | |||||
Exchangeable shares, outstanding | 110,791,880 |
Earnings per share (Details)
Earnings per share (Details) - EUR (€) € / shares in Units, € in Thousands, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||
Net income/(loss) | € 17,161 | € (21,489) | € (13,049) |
Net loss attributable to noncontrolling interests | 0 | 0 | 568 |
Net income/(loss) attributable to trivago N.V. | € 17,161 | € (21,489) | € (12,481) |
Denominator: | |||
Weighted average shares of Class A and Class B common stock outstanding - basic (in shares) | 351,991 | 350,852 | 274,666 |
Weighted average shares of Class A and Class B common stock outstanding - diluted (in shares) | 356,738 | 350,852 | 274,666 |
Basic (in EUR per share) | € 0.05 | € (0.06) | € (0.05) |
Diluted (in EUR per share) | € 0.05 | € (0.06) | € (0.05) |
Other, net (Details)
Other, net (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Other Nonoperating Income (Expense), Total | € (428) | € 539 | € 592 |
Commitments and contingencies_2
Commitments and contingencies (Details) € in Thousands | Dec. 31, 2019EUR (€) |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Total | € 11,941 |
Less than 1 year | 11,941 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | € 0 |
Related party transactions (Det
Related party transactions (Details) - EUR (€) | Sep. 05, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||||
Revenue from related party | € 284,571,000 | € 331,421,000 | € 367,581,000 | |
Accounts receivable, related party | € 31,139,000 | € 39,655,000 | ||
Revenue | Customer Concentration Risk | Expedia | ||||
Related Party Transaction [Line Items] | ||||
Concentration risk, percentage | 34.00% | 36.00% | 36.00% | |
Uncommitted Credit Facility | ||||
Related Party Transaction [Line Items] | ||||
Uncommitted credit facility principle amount | € 50,000,000 | |||
Uncommitted Credit Facility | LIBOR | ||||
Related Party Transaction [Line Items] | ||||
Debt basis spread on variable rate | 1.00% | |||
Bank of America Merrill Lynch International Ltd. | Uncommitted Credit Facility | LIBOR | ||||
Related Party Transaction [Line Items] | ||||
Debt basis spread on variable rate | 100.00% | |||
Myhotelshop N.V. | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | € 2,800,000 | € 2,300,000 | ||
Principal owner | Expedia | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related party | 281,800,000 | 331,400,000 | ||
Other operating expenses from related party | 800,000 | 800,000 | € 500,000 | |
Accounts receivable, related party | € 30,900,000 | 39,700,000 | ||
Principal owner | Expedia | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Prior notice period on customary commercial terms | 3 days | |||
Principal owner | Expedia | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Prior notice period on customary commercial terms | 7 days | |||
Principal owner | Data Hosting Services Agreement | Expedia | ||||
Related Party Transaction [Line Items] | ||||
Termination notice period | 30 days | |||
Expenses to related party | € 45,000 | 59,000 | 68,000 | |
Principal owner | Services and Support Agreement | Expedia | ||||
Related Party Transaction [Line Items] | ||||
Termination notice period | 90 days | |||
Expenses to related party | € 800,000 | € 700,000 | € 400,000 |
Segment information - Narrative
Segment information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | € 838,617 | € 914,816 | € 1,035,383 | |
Other revenue | 2,841 | 1,131 | 3,539 | |
Advertising spend | 616,705 | 732,458 | 884,685 | |
ROAS contribution | 221,912 | 182,358 | 150,698 | |
Costs and expenses: | ||||
Cost of revenue, including related party, excluding amortization | [1],[2] | 9,159 | 5,435 | 5,930 |
Other selling and marketing | 47,450 | 73,175 | 62,240 | |
Technology and content, including related party | [1],[2],[3] | 69,924 | 66,904 | 52,232 |
General and administrative, including related party | [1],[2],[3] | 55,543 | 54,326 | 47,444 |
Amortization of intangible assets | [3] | 1,685 | 1,684 | 3,220 |
Operating income/(loss) | 38,151 | (19,166) | (20,368) | |
Other income/(expense) | ||||
Interest expense | (33) | (1,839) | (44) | |
Gain on deconsolidation of entity | 0 | 0 | 2,007 | |
Other, net | (428) | 539 | 592 | |
Total other income/(expense), net | (461) | (1,300) | 2,555 | |
Income/(loss) before income taxes | 37,690 | (20,466) | (17,813) | |
Expense/(benefit) for income taxes | 20,982 | 1,086 | (4,764) | |
Income/(loss) before equity method investment | 16,708 | (21,552) | (13,049) | |
Income from equity method investment | 453 | 63 | 0 | |
Net income/(loss) | 17,161 | (21,489) | (13,049) | |
Operating Segments | Developed Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 347,094 | 378,919 | 424,993 | |
Other revenue | 0 | 0 | 0 | |
Advertising spend | 230,291 | 265,004 | 324,487 | |
ROAS contribution | 116,803 | 113,915 | 100,506 | |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 305,061 | 315,966 | 391,667 | |
Other revenue | 0 | 0 | 0 | |
Advertising spend | 233,949 | 261,620 | 338,072 | |
ROAS contribution | 71,112 | 54,346 | 53,595 | |
Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 171,469 | 204,937 | 203,673 | |
Other revenue | 0 | 0 | 0 | |
Advertising spend | 152,465 | 205,834 | 222,126 | |
ROAS contribution | 19,004 | (897) | (18,453) | |
Corporate & Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 14,993 | 14,994 | 15,050 | |
Other revenue | 2,841 | 1,131 | 3,539 | |
Advertising spend | 0 | 0 | 0 | |
ROAS contribution | 14,993 | 14,994 | 15,050 | |
Referral revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 823,624 | 899,822 | 1,020,333 | |
Referral revenue | Operating Segments | Developed Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 347,094 | 378,919 | 424,993 | |
Referral revenue | Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 305,061 | 315,966 | 391,667 | |
Referral revenue | Operating Segments | Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 171,469 | 204,937 | 203,673 | |
Referral revenue | Corporate & Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | |
Subscription revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 12,152 | 13,863 | 11,511 | |
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 | € 12,152 | € 13,863 | € 11,511 | |
[1] | Includes related party expense as follows: Year ended December 31, 2017 2018 2019 Cost of revenue 68 € 59 44 Selling and marketing 0 42 263 Technology and content 361 700 465 General and administrative 109 9 43 | |||
[2] | Includes share-based compensation as follows: Year ended December 31, 2017 2018 2019 Cost of revenue 115 184 269 Selling and marketing 3,514 3,273 2,359 Technology and content 3,614 5,260 5,978 General and administrative 8,782 11,985 11,285 | |||
[3] | Year ended December 31, 2017 2018 2019 Amortization of internal use software costs included in — — 360 Amortization of acquired technology included in amortization of intangible assets 59 278 143 Amortization of internal use software and website development costs included in technology and content 1,742 2,214 3,239 Amortization of internal use software costs included in general and administrative 408 785 656 |
Segment information - Geographi
Segment information - Geographic information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | € 838,617 | € 914,816 | € 1,035,383 |
Property and equipment, net | 33,172 | 162,001 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 192,526 | 194,416 | 255,501 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 85,284 | 95,893 | 108,080 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 68,491 | 73,143 | 85,308 |
Property and equipment, net | 30,681 | 159,071 | |
Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 36,635 | 47,737 | 50,623 |
All other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 455,681 | 503,627 | € 535,871 |
Property and equipment, net | € 2,491 | € 2,930 |
Valuation and qualifying acco_3
Valuation and qualifying accounts (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | € 250 | € 231 | € 152 |
Charges to Earnings | 754 | 580 | 2,275 |
Deductions | (930) | (561) | (2,196) |
Balance at End of Period | € 74 | € 250 | € 231 |
Subsequent events (Details)
Subsequent events (Details) - shares | 2 Months Ended | 12 Months Ended | ||
Mar. 06, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | ||||
Shares issued from options exercised (in shares) | 1,218,560 | 531,410 | 1,093,428 | |
Common Class A [Member] | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Shares issued from options exercised (in shares) | 457,579 |
Uncategorized Items - trvg-2019
Label | Element | Value |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | € 0 |
Contribution From Parent [Member] | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | |
Noncontrolling Interest [Member] | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | (199,354,000) |
Additional Paid-in Capital [Member] | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 132,879,000 |
Common Class B [Member] | Common Stock [Member] | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | € 66,475,000 |