Trivago has recently released its financial results for the first quarter of 2018. The company recorded broadly stable revenues after seeing an increase in its qualified referrals leads.
Total revenue has reported to have firmed during the period while recording a value of €259.4 million. The data rather declined 3% if to compare in a year-over-year basis in where 2017 had a record €267.6 million in the same period. The drop rooted from the commercialization and significant headwinds which declined in the recent period from foreign exchange effects.
“Over the course of 2017 we invested heavily into building up both our team and technology to promote long-term growth. While impacting our operating costs, we believe the effects of this investment will become increasingly visible. Our product teams continuously make improvements to our platform on the backend, with a strong focus on personalized technologies and user experience. On the brand side, having already established a very high brand awareness globally, our new ad creatives are focused on advancing the user’s understanding of our product’s features in order to further increase usage.” Chief executive officer of Trivago told reports.
Trivago Operational Figures
The revenue shares of Trivago’s largest advertisers has firmed during the first quarter of 2018 compared to the past periods. This has been recorded after period of increased marketplace volatility and testing activities.
Additionally, Alternative accommodation has also continued its integration with beyond 350,000 units of alternative accommodation available. This has increased the options for its users.
Moreover, the company has continued to push its plans and measures which are aimed to optimize the platforms and product of Trivago. This had a goal of generating more user retention rates and booking conversion respectively.
“We managed to grow the usage on our platforms, enabling us to almost match a very strong Q1 17 in terms of revenues. We achieved this despite strong headwinds from currency movements in the Americas and Rest of the World and a drop in commercialization as our advertisers appeared to have increased their profitability targets for their spend on our marketplace compared to the first quarter of 2017.” Chief Financial Officer of Trivago Axel Hefer told reports.
Shares of Trivago has recently experienced a sharp drop in its recent performances. The trading performance’s massive decline made the stock oversold, while becoming much more volatile at the same time. The latest performance also indicated another decline after dropping -4.25% from its recent session.
Furthermore, the stock has not yet indicated a bullish movement to reverse the trend. With that, a position of sell will be much more recommended at the time being.
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