Trivago has again reported financial losses for the third quarter of 2024, citing an impairment charge as a contributing factor.
The hospitality metasearch company reported total revenue of €146.1 million in the three months ending September 30, marking a 7% drop compared to the same period in 2023, and net loss of €15.4 million.
Adjusted EBITDA was €13.6 million in the quarter, which the company said brings it closer to its full year prediction of breakeven for adjusted EBITDA. Advertising spend in the quarter came in at €108.4 million, down by €7.9 million compared to the same period last year.
“Despite the decline, we continued to observe positive revenue developments from branded traffic channels as we continue our aim towards returning to year-over-year top line growth,” said Trivago in its Q3 release.
Trivago said the net loss came primarily as the result of a €30.0 million impairment charge in relation to its “annual indefinite-lived intangible asset impairment analysis” and was due in part to weakness in performance marketing that lead to a drop in revenue. Trivago also cited overall economic uncertainty.
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The company said it remains optimistic that it can return to top line growth year-over-year during the fourth quarter, in part through disciplined marketing investment decisions.
Trivago said it sees room to scale its brand marketing efforts to drive future revenue. It predicts a year-over-year revenue boost in 2025 and “double digit” growth of revenue in the medium-term.
The same day it announced its Q2 earnings in July, Trivago also shared that it had invested in Holisto, furthering a partnership that kicked off in 2022.
*This story will be updated following Trivago’s call with financial analysts Wednesday morning.
