Hotel finder Trivago's shares leap as it swings to profit

 
Courtney Goldsmith
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Trivago promises to find the best hotel for you (Source: Getty)

Trivago's shares jumped more than 20 per cent as the US-listed firm swung to profit in the first quarter of 2017.

The figures

The German-based hotel finder posted a net income of €7.7m (£6.6m) for the first three months to the end of March compared with a loss of €100,000 in 2016.

Total revenue jumped 68 per cent to €267.6m compared with €159.4m the previous year with strong growth across all three segments.

The firm's Nasdaq-listed shares shot up 15.82 per cent higher to $20.65.

Read more: The company finding the hotel that fits you perfectly

Why it's interesting

The global hotel search platform, which offered access to around 1.4m hotels in over 190 countries at the end of 2016, floated in the US last December with stock priced at $11 per share.

The travel tech firm said improvements to user experience and investment into branding sent the number of qualified referrals up 60 per cent in the first quarter compared with the previous year.

Trivago is working on solving the “problem of personalisation”. The company, which matches hotels to personalities, is working to learn more about its customers in a market it says is nowhere close to maturity.

What Trivago said

Chief financial officer Axel Hefer said:

“The investments we have made in the business are paying off.

"The improvements in profitability were principally driven by the scaling of the business and our continuous improvements of our technology and algorithms, which we expect to continue to benefit from in the future. We are on track to deliver continued growth in revenue and profit in line with our guidance.”

Rolf Schromgens, the founder and boss of Trivago, said:

“Not only are we making progress in terms of continuously improving brand awareness, user loyalty, as well as revenue growth and profitability, but we also continue to see strong interest from applicants all over the world, with almost 15,000 applicants in the first quarter interested in becoming part of our entrepreneurial culture. To maintain our momentum and build scale as a truly global business, hiring and investing in our talent base will continue to be a top priority for us.”

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