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Trivago's Rise: Let The Numbers Speak

Jul. 14, 2017 1:51 PM ETtrivago N.V. (TRVG)EXPE9 Comments
Roy Wang, CFA profile picture
Roy Wang, CFA


  • Since its IPO last December, Trivago’s market cap has risen to $8B, whilst raising only €1.4mm prior to IPO.
  • Trivago has developed rapidly over the years, now covering 55 markets.
  • We are long on Trivago given its substantial growth prospects and market potential.

Since its IPO last December, Trivago’s (NASDAQ:TRVG) stock price has doubled, and shows no sign of slowing down. We are bullish on the stock given its financials outlook, steady growth, a unique market niche (with growing market share) in the hotel search engine industry.


Trivago was founded in Germany 12 years ago, and grew from a European local hotel search engine to a multinational technology company with billions of market cap in a few years. Trivago’s CEO Rolf Schromgens has made it clear in the latest earnings report that

“We are only focusing on search. We do not want to be a shop, we do not want to sell room nights, we are not a community or a video portal. And the third was to conquer a position at the top of the funnel, to really built a brand that everybody knows and get people to ask for it.”

And the results of focusing on its specific market have paid off - the international growth on user traction and activities on the website have grew significantly as shown in the below sections, far outpacing the growth rate of its competitors including Priceline (PCLN) and its parent company Expedia Inc (EXPE).

International traction

Trivago initially started operation in EU countries, and has now expanded into 55 nations across the world. While as of today continental Europe is still its biggest market, Trivago has gained tremendous momentum in the Americas, which hosts its biggest network of OTAs and chains.

Solid financial performance & Substantial growth

Financial performance and active users have skyrocketed for Trivago in recent years, and 1Q 2017 marks the first quarter that the company turned in a positive net income.

Source: Trivago IR

  • Total revenue increased to €169.2 million in the fourth quarter of 2016, or 70% year over year, compared to €99.3

This article was written by

Roy Wang, CFA profile picture
I write about stocks. I invest in both public securities and private equities. Diversified portfolio across sectors but mostly in Tech and in US Stocks. Former Investment Banker, Equity Research Analyst and financial services veteran with a proven track record with one of the largest Sovereign Wealth Funds, 3 Bulge-bracket IBs, a Big 4 Advisory firm. CFA Charterholder since 2017. Wharton MBA.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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