Trivago NV – ADR (NASDAQ: TRVG) is having an incredibly strong day in the market today, and for good reason. The ccompany returned to profitability, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The company’s return to profitability;
- what we’re seeing from TRVG stock as a result; and
- what we’ll be watching for ahead.
TRVG Has Returned To Profitability
As mentioned above, Trivago is having an incredibly strong day in the market today after the company announced its return to profitability. In a press release issued early this morning, the company provided its financial results for the third quarter. Here’s what we saw:
- Profit – During the third quarter, TRVG said that it generated a profit of €10.1. In the third quarter of last year, the company generated a loss of €7.7 million.
- EBITDA – In terms of adjusted EBITDA, the news proved to be positive as well. The adjusted EBITDA came to €26.6 million in the third quarter of 2018 compared to an adjusted EBITDA loss of €7.1 million in thei third quarter of 2017.
- Return On Advertising – In terms of ROA, the company saw an improvement from 110.9% to 135.9%.
In a statement, Rolf Schromgens, CEO at TRVG, had the following to offer:
This quarter we continued to focus on our core principles and what has made us successful by optimizing our marketing, improving our traffic quality and putting our users at the center of the experience.
This quarter we continued to focus on our core principles and what has made us successful by optimizing our marketing, improving our traffic quality and putting our users at the center of the experience. We believe we’ve done just that.
The above statement was followed up by Alex Hefer, the company’s CFO. Here’s what he had to offer:
Our aim was to return to profitability in a sustainable way by reducing inefficiencies and getting the business back on track. We believe we are now well-positioned moving forward and have adjusted our guidance to reflect our improved outlook.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Trivago, the news was incredibly positive. After all, investors are looking to earn a profit, so the return to profitability is leading to excitement and sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:32), TRVG is trading at $5.84 per share after a gain of $0.87 per share or 17.51% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TRVG. In particular, we’re interested in following the story surrounding the company’s continued growth in return on advertising and work to continue profitability. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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