trivago Stock Is Diving Today - Here's Why

trivago NV TRVG shares are trading lower after the company reported Q2 FY23 results yesterday.

In U.S. dollar terms, the company reported EPS of $0.02, missing the consensus of $0.04, and sales of $135.63 million, which missed the consensus of $157.42 million.

Revenue fell 14% Y/Y to €124.4 million, with referral revenue decreasing 13% Y/Y to €122.6 million.

“Lower monetization, shorter length of users’ booked stays, and foreign exchange rate effects, all negatively impacted our financial performance, more than offsetting the positive impact of increased average booking values1, mainly driven by higher average daily hotel rates and increased booking conversion,” The company said.

Return on Advertising Spend (RAOS) decreased by 21.3 ppts Y/Y to 144.6% on a decline of 24.7 ppts Y/Y in the Americas, 17.2 ppts Y/Y in Developed Europe and 38.4 ppts Y/Y in RoW segments.

Adjusted EBITDA declined to €12.2 million from €30.3 million a year ago.

As of June 30, 2023, cash, cash equivalents, and restricted cash stood at €273.0 million. trivago generated an operating cash flow of €7.7 million.

Price Action: TRVG shares are down 10.50% at $1.20 on the last check Wednesday.