Q3 2019 Earnings Call
Oh I'm managing director.
The following discussions include responses to your questions reflects management's views as of today November <unk> 2019, only trivago does not undertake any obligation to update or revise this information.
As always some of the statements made on todays call. All forward looking typically pretty preceded by words, such as we expand we believe we anticipate well similar statements. Please refer to todays press release on the company filings with the S. E C for information about factors, which could cause trivagos actual results to differ materially.
He from these forward looking statements.
You will find reconciliations of non-GAAP measures to the most comparable GAAP measures discussed in todays Trivagos earnings release.
Which is posted on the company's IR website at <unk> Dr. Bago Dot com, we're encouraged to periodically visit Trivagos investor relations like some more important content, including today's earnings release finally, unless otherwise stated all comparisons on the school will be against results for the comparable period of two sides men 18.
With that let me turn the call over to Ralph. Please go ahead Sir.
Good morning, and welcome everybody I'm. Many thanks for joining our third quarter 2019 earnings call.
All this quarter broad mix device, but some developments makeup hopeful for the long term future.
Q3, what the first quarter since it started marketing optimization in which we have to reinvest it again into gross.
At the same time it marks the fifth consecutive quarter.
With nice profitability.
We were able to improve our revenue growth compared to the second quarter, but less than we expected.
On the one hand.
One can clearly see that in the Americas segment that we raised our advertising spend our investment paid out.
We were able to reach profitability growth close to 20%, which we believe it's fairly above market growth.
This does that gives us confidence that we are able to grow our market share relatively stable environment.
On the other hand, the softness in the business and developed Europe and rest of the world generally and the volatility in our marketplace, specifically had a direct negative impact and we did not so see the magnitude of this.
We continue to invest into learning and program.
The removal of the relevant assessment and the introduction of spit modifiers led to an adoption process that increase of volatility in our marketplace.
For some of our advertisers it takes longer to adapt to the new environment.
If they adapt this can have a negative impact on competition.
Nevertheless, we are confident that our investment into increased flexibility, it's a ride step and will benefit our appetizers and trivago into long term.
Besides the roll out a bit modifiers, which alive in all markets now we have invested this quarter into several long term projects and see promising first resides.
We have made significant progress on integrating alternative accommodations into our search.
And our running large scale test with key players in the market.
We ran several successful product tests and have a full rope a features helping our customers to better understand the mehta aspect of our product.
The goal is to focus on all key use the value proposition to provide more transparency by making prices more comparable.
We included mobile mobile rates for our largest advertisers.
And added additional reward rates.
We focus a lot on creative development and qualification this quarter.
While our Mr. Trivago concept has helped us to creative down on Brent.
We want to develop further and create new creative themes that are more efficient give us more flexibility and further opportunity to optimize.
We see now for the first time spots that beat the mr. to evolve a concept.
In the fourth quarter, we plan to decrease our marketing spend along with the seasonality as usual.
But we're very excited about the opportunity to roll out new concept next year globally.
Now, let's look at our third quarter financial performance on page five of our presentation.
[noise] asset in the third quarter, we continue to focus on profitability.
While we selectively invested into segments and channels, where we saw opportunities like in the Americas.
Our total revenue was coming down slightly from 253.7 million Euro in Q3, 2018 to 250.3 million Euro this quarter.
With about 1% decrease year over year, we improved to Q1, where we decreased 20% and Q2, where we decreased 5%.
This brings the overall year to date number.
To not minus 9%.
Our adjusted EBITDA was 10.9 billion, which brings the year to date number to 50.3 million Euro while a net income is at 40 million Euro.
Due to the increase in investment mainly in the Americas market.
Our advertising spend grew by 9% in Q3 year over year.
This led to a decrease in return on advertising spend of 13 percentage points.
While the total number of the year. So far is still up 12 percentage points.
Looking at page six.
We see that our advertiser mix over the last three years stayed relatively stable.
Expedia group and booking holdings did not gain additional share and inclined to really the share increase of small appetizers that we have seen in the third quarter 2018 is confirmed again this year.
That might suggest that advertiser concentration is less name.
But could be could be also aside effect of the increased volatility in the marketplace that we have seen last quarter due to the roll out of that modify it.
While there were inefficiency in the adjustment phase going forward, we believe that the increased flexibility will help our advertisers to optimize for conversion and improves the overall user experience.
Yes.
Looking at the next page of our presentation.
We continued to make progress on integrating alternative accommodations into our platform.
As of September Thirtyth, we have more than 2.3 million unit on our platform.
Compared to 1 million a year ago and two at 50002 years ago.
Not included in these numbers are large pay a multi market tests that we are concurrently running with a key players in the market.
Besides the integration of more inventory, we're continuously improving the amount of content auto alternative accommodations that we offer in our search.
Additionally, we continue to invest into better algorithms to feature alternative accommodations whenever they can substitute a hotel for user.
We also work hard on how we display alternative accommodations and provide a true comparison two hotels.
It is a gradual process and there's a lot more work to be done.
But we're very happy with the progress that we have made over the last one one and a half years.
Now, let's move over to OXXO to have a look at the detailed financials.
Thank you Ross.
Our global revenues declined by 1%.
From 250.4 million euros to 247 million euros as we grew our advertising expense by 9% year over year. Our return on advertisement span came down by 13 percentage points from 136% to 123%.
[noise] qualified referrals were down by 14% from 189.1 million in.
In Q3, 2018 to 162 million in Q3 2019, while revenue per qualified refer was up by 16% from one Euro 32 cents in Q3 2018 to one euro 53 cents.
In Q3 2019.
This mix.
Changed continues to be driven by an increase in traffic quality, both through marketing and product optimizations.
In Europe , we experienced softness in our business.
Both increased volatility through our marketplace changes and the softness and CPC bids in the summer peak contributed to this development.
As a result revenue came down from 114.4 million in Q3 2018 to 104.2 million in Q3 2019.
And qualified referrals and revenue per qualified for adults. We observed the same trend as globally will quantified referrals down 14% and revenue per quantified referrals up 6%.
In Americas, we've increased our investment centrally by 18 million euros year over year, leading to a revenue increase of 60 million euros year over year or 19%.
This has been driven by high observed elasticities of our marketing investment, both and brand and performance marketing channels.
Through the higher base, our relative return on advertisements span came down to 124%.
Despite the negative mix effect, driven by marketing and product optimizations qualified referrals state almost flat at 43 million while revenue per qualified referrals grew substantially by 22% from one euro 83 cents to two euros 24 cents.
The business and rest of the world has been soft during Q3.
Difficult comps and the substantial reduction in advertising spend of 30% year to date has contributed to this development.
Refer revenue reached 46.7 million euros in Q3, 2019 down from 55.3 million euros.
Qualified referrals came down from 69.1 million to 54 million in Q3, while revenue per quantified referrals improved by 7% from 80 cents to 86 cents.
Looking at the Q3 and the operational highlights.
The following points to.
To point out.
First we managed to scale, our Americas business substantially at very attractive margin investment returns, yielding a 19% year over year growth rate.
We completed the rollout of our new bit modifiers and removed the relevance assessment from the platform completely.
Laying the foundation for future collaborative value creation with our advertisers.
We have improved the value and deal messaging on our website and have a full roadmap of features that will further support our positioning and value creation as a metasearch platform.
We have continued to onboard reward and mobile rates to our platform to offer even better deals to our users.
We have more than doubled our alternative accommodation offering in the last year and are working on large scale multi market test to further improves the offering.
We have completed our transition from a single character focus creative strategy to a fully diversified global approach.
That brings us to our guidance for 2019.
We keep our full year financial guidance for the adjusted EBITDA unchanged and continue to expect that adjusted EBITDA will be in the range of 60 to 80 million euros.
Reflecting our financial performance in the third quarter 2009 team. We now believe that will end up and the lower half of the range.
For Q4, we do expect our revenue to be lower than the same period 2018.
Thanks axle.
On a personal note.
I think it's every founders goals to be able to create a company and team.
That youre confident in passing along to the next generation.
Over the last four years by co founders and I have been continuously working on our succession plan.
In 2015, we started building out the two of our leadership team with the integration of your line is Tomas an unrelated into our founders group.
In further steps.
We promoted axle as our CFO in 2016.
And as lean as our talented organization lead in 2017 ended the two of our leadership team.
My two co founders, Peter and monitor less the leadership mid of 2018.
And later this year, we were able to convince James Carter to join Us from Google to take over my additional role as sort of search lead has become our new CTO.
Trivago was always a team approach and I think that we never had a stronger and more diverse team combining so many unique competencies.
I had worked with axle for the last three and a half years.
And seeing its obviously great capabilities, our giving him continuously more responsibility next to the CFO role.
After leading trivago together and the last years.
I think now at the right time to nominate him as my successor as CEO .
Take a step back and transition into our supervisory board end of this year.
I'm sure that axle will fill the see overall with the same dedication and passion that I had over the last 15 years.
But yes, Tillman who was heading our corporate finance team will take over his role as CFO .
I created trivago at a fast learning system, a fluid organization that is continuously challenging the status quo and looking for new opportunities to learn.
In this way it is also a member of my own personality.
That's why it was always clear to me that I would ultimately develop myself the on the borders of this company.
A step with certain.
And the timing fields now very natural.
Clearly.
That does not change my view on the opportunities that I see for the business and the loss on emulation I feel for the people.
This is why a stay involved in the supervisory board and stay committed at this major shareholder.
And now we're open for your question.
Thank you.
Ladies and gentlemen, we when I begin the question and answer session. As a reminder, if you wish to ask a question. Please press star one on your telephone.
Could be an act if you wish to capital. Your question. Please press the hashi.
So again, ladies and gentlemen, nice star one on your telephone keypad to register for question.
Your first question comes from the line of Lloyd Walmsley. Your line is open.
Thanks, two questions if I can.
First just on Euro Chile can you give us sense for how much of the bit reductions GTT is a function of partners, taking back kind of marketing ROI or just function of softer downstream booking with their see flowing through to price.
And then second one on kind of the new Big modifiers that you guys World GDP.
We're still holds through customers on testing some of those new parameters is just when it again.
At the bids and see what happens.
Is that part of part of what happened this quarter.
And are you seeing any of the volatility start to come down maybe you can kind of give us give us on that kind of the outlook on commercialization would be great.
Yes, absolutely so the first question.
The the softness and CPC beds.
That we observed.
We don't think as due to a permanent change and profitability targets.
Having said that there is always volatility and profitability targets.
From week to week, but we don't think there is a permanent change there. So it is really a softer period in our peak seasonality, which is obviously.
And particularly impactful.
On the second question on the introduction of the bit modifiers and we sat.
From the beginning that the introduction of bit modifiers makes the auction more complex more efficient as well, but also more complex and that in the adjustment period, we do expect.
More volatility in the market and that's that's what we're seeing.
From our perspective, and what we're seeing with the the rate of implementation that adaptation with a different advertisers. It is something that will take time, but will ultimately lead to the desired outcome, which is a more efficient auction and ultimately higher revenue Chaucer more efficiency.
Our advertisers.
Okay. Thank you.
Thank you.
Your next question comes from the line of Kevin Kopelman. Your line is now open.
Hi, Thanks, a lot so first.
Rob Congrats on the transition will certainly.
Miss working with you.
Each quarter.
And axon Mathias congratulations on the new roles as well.
So just had a just a couple of follow ups from from your comments first could you talk could you give us a little more color on.
Vacation rental search.
Progress and you talked about new.
Large scale tests that you're doing.
Would that be with.
With an existing advertiser or would that be a new advertiser that that you're testing win.
Thanks.
So I think I think different different dimensions, where we see currently improvement.
So first of all we add a lot of more inventory and so as you can see in the numbers, we more than doubled our inventory from last year.
And that but at least that like last quarter, it's not only about inventory.
I'd also like how we add more content to the inventory and that is something images content the ongoing will improve.
Shifting gold property the amount of content.
Ben It's a question of display so how do we displayed at content and how do we make hotels and alternative accommodations comparable.
And there is also quite a tough comp now and I don't say that we are there. We're just at the beginning where we investing a lot into that to make it very smooth because we believe that at the end only a coherent search we have rate side by side can compare hotels.
At this commendation.
It's something that the you'd this will accept in the future.
Dan it's about algorithms so like how how often do we display alternative accommodations within the surge to which uses abhi displaying alternative accommodations. That's also a stream of work stream that that we are that it programs don't.
And then it's of course like we don't want to only increased the amount of inventory, but you also want.
Two half key players in the market and participating and and we are definitely running tapped with a new player.
New large player in the market.
Got it and then just on on another topic you mentioned.
Loyalty rates or is it really.
Is it really interesting development, how far along its trivago.
In terms of integrating loyalty rates from hotel partners and also loyalty rates from the I'm traveling related and travel agents. Thanks.
And then to non going process. So we aim for integrating more and more rigs a big step that we did in the last quarter with the integration of mobile rates from large advertisers. So I think thats big step forward.
And as we progress, saying on on the lighting rate as well.
Reward rates, where we are we implemented in its hotels like in the last board as one of the large chain.
So we also progressing on that front.
Thanks, Rob.
Thank you I know next question comes from the line of NAV at Cowen. Your line is now open.
Yes. Thanks, a lot just a quick clarification on an idle so.
Yeah for Q4, you're talking about maybe they're going to being down.
You're running here.
Is that or is it fair to assume that that reflects any continuing softness in Europe or how should we be thinking about.
Thank you for garden and as we look out in 2020 are you still are hopeful of returning to topline topline growth next year.
You can give us give us some kind of framework.
In terms of just thinking about abruptly.
Yes, absolutely so.
The the regional trends that we have seen in Q3, we don't expect to.
Change significantly in Q4, so we do expect Americas to come out stronger than the two other regions.
For 2020 .
We are currently working on our 2020 plan, So we can't say that much but clearly.
It is our ambition to.
Outgrow the market within 2020 , but we will give more detailed guidance on our next earnings call. Once we have finished our planning for next year.
Got it and then.
Maybe a quick follow up so on the on the Big Marty.
Introduced a over the course of summer I guess.
Isn't that maybe some.
And geographies some markets like America that further ahead in terms of.
Our implementation or an option versus.
Europe or.
Is it that.
It's just taking longer than what you had previously part.
Yes common share.
Absolutely so the way to think about it is more of that.
You have.
A more complex bidding methodology that allows you to optimize more.
But you also require more data and you need to train your algorithms with a new methodology. So some advertisers.
Optimize faster and get to fashion bedding faster and for some it takes longer and that is not really driven by geography, but it's really driven by the setup of the respective advertisers, but also the scale and the data density that they have per property.
So it is as I said before it is more really a learning process that we're obviously supporting.
But it does not influenced by the geography.
Thank you.
Thank you when I take on next question comes from the line of Tom White. Your line is open.
Great. Thanks, just a follow up on on the last one and I guess it relates to the advertiser mix slide in the comments there about.
General stability between your two largest advertisers and kind of the rest of your advertisers.
I'm trying to kind of reconcile that stability with some of the comments around the impact from from bid modifiers.
Is it fair to say that.
The small smaller sort of other advertiser group is slower to adjust to these bid modifiers, but that that's being maybe offset by lower CPC bids from from from your biggest advertisers in that kind of results and in sort of a stable mix.
That's stable Advertiser mix and then just a follow up on on the rebound in the Americas.
How do you guys replicate that kind of recovery you thinking your other regions.
So on the on the first question.
It is it is a combination of two factors one how quickly you adapt you're you're betting algorithm and that is I would say irrespective of scale.
That that is more up how quickly you can implement a new logic and the second one is how quickly you can train them and that has is heavily influenced by your scale in a given market. So it doesn't necessarily mean that just the global groups the biggest groups globally.
Have have an advantage in both dimensions and 100% of their business, it's a bit more granular uncomplicated than that so I think what youre inferring from the data points as.
Not necessarily correct.
On your second question. So so we think that what we have seen in the in the U.S. is a possibility to replicate also in other markets.
So what we've seen in the Americas.
And and that's based on one hand that for US the American test market with a test market every Saturday for for this market for this segment.
We want to raise our we want to raise our investment again.
Across the board and and see how the market react.
So we don't think that there was something generally special about the U.S. market.
We for Ford is what is test case, we invest this not only in terms of like money investing a little indefinitely performance channels, but he also auto adapted our creative.
And the and we think that we have some indication that we had that we're on a quite good road to two or to have new global theme that we can also roll out to other countries.
Thank you.
Thank you.
Next question comes from the line as Brian Fitzgerald.
Then.
[laughter], Thanks, guys a rough an actual we also want to say congratulations.
Earlier in the quarter, you had talked about some weakness in Europe . During the summer peak do you think the European consumer was a bit weaker.
Then last year was it a case maybe of healthier demand versus last year when some of your partners were.
Maybe searching for consumer demand, giving some of the hotter weather World Cup headwinds et cetera. Thanks, you saw in the quarter in 2018. Thanks.
So they in Europe , we see in Q3 overall software business for Us and we do think that the volatility in the marketplace and also the the softness in CPC, but have contributed to that.
But it seems from our perspective that there's also some softness in the market, which is for us very difficult to quantify though.
Got it appreciate it.
Thank you and your next question comes from the line of Tuck Maam. Your line is open.
Hi, This is David on for Doug Thanks for taking my question.
First question is on the bid modifier rollout.
Were you completely rolled out of the modifiers across the world I assume you have other bit modifiers and pipeline just curious to.
Here, how you're thinking about the rollout or introduction of new bit modifiers given.
Advertiser reception, thus far to the ones that you have out of the market already.
And then just curious to hear your views on your investment plan the rest of the world.
It is a like a faster growing region, but.
Underperforming versus your other regions, though just wanted to hear your latest thoughts going into putting pony.
Yes on the bit modifiers, or we are fully rolled out with them, but modifiers that we've introduced.
And we are looking into adding more but modifiers and as as I said on the last call.
The by by setting up the system and our way that we can have modifiers every additional modifiers much easier to launch but on the other hand, you also need to give time to advertisers to optimize a in the existing system and to try and ER.
Yes.
So what I just said.
Might not be true for all geographies within our less of that will technical.
Okay. Thank you.
Thank you.
Question comes from the long live Shyam Patil Your line is open.
Hi, guys its Ryan on for Schrom.
The first how should we think about the magnitude of the revenue decline in the fourth quarter.
And also how you're thinking about profitability for 2020.
And secondly, I do you have any thoughts on any impact you might be seeing from Google and they're continuing moves and both hotels on flights. Thanks.
On a the Q4 revenue we don't give specific revenue guidance, but as I said, we expect it to come in lower than in the fourth quarter 2018.
For 2020 , we have not done our business plan, yet, but our ambition as is clearly to increase our adjusted EBITDA year over year, but.
We will only be able to give some more specific guidance on our next call. Once we've done the exercise.
And railing finalized our plan.
Yeah.
Okay. The second question on on impact of Google.
So we don't see the impact that doesn't mean, it's not that yeah. So, but we cannot really like quantify the impact is there an impact of of Google I'm going going.
Draw into hotel Super hard to quantify maybe looking at long term trend.
It looks quite stable, but it's still a super hard to quantify.
Got it thanks.
<unk>.
Thank you and your next question.
James Lee Your line is open.
Thanks for taking my questions to hear onto a follow up on Google or anything new that you learn from Google Hotel at specifically and just wondering how that's working out for you because everything we heard a hotel ads.
She's lot higher than text ads and how do you manage on that ROI perspective in any any philosophical potential conflict interests as you both.
I've met a search engines here and also secondly on landing page assessment I want to make sure I didn't hear the in correctly did you guys say, you're removing that if that's the case this could help us on staying give us more color as to why you're doing so thanks.
Yes, I thought I think we continue to learn and I think I think thats, what you do when youre in the same in the same market that you look at each other and he learned enough for me.
That's true from on a on that product basis, I mean, we hired a one of them the people of Google Hotel at a <unk> for our team lately. So of course is also looking at what let's Google into it.
So we don't we don't see something which is like for us in a in a notch leachable ore that it's like concerning you know so so I think we had a very strong product was not a <unk> road map looking forward.
And ER and.
And I think especially when it comes to the integration of alternative accommodation, how we bring it into one coherent search I think that is also a differentiator.
[noise] on your second question on the relevance assessment a your understanding is correct. So we fully removes me irrelevant assessment in our algorithms and.
The reason why we we've done that we've done a a test some quarters ago with.
Our large advertisers that gave us a lot of visibility into really the enter and impact and conversion and we believed that our current approach is much more value, creating where the approaches that we jointly with our advertisers optimize.
Yes, the conversion entrench, rather than managing a rigid handover point.
And.
Yeah, we believe that there will be substantial benefit going forward by working on that approach over the next quarter's end years.
So let me just aren't that let me just also answer the second part of your first question.
So on on Cpcs, Yes, I think it's quite clear that Cpcs in hotel at a higher.
Then on at the M., because the traffic of towards pre qualified right. So yeah. Just one step further down the funnel. So of course traffic quality should be higher and of course CPC should be higher that's not ultimately help something about the all right right. So so I think that is that on a totally different pace like that.
CPC is generally higher further down the funnel and that is pretty clear.
And and on I think that another question was its we see you know like how it's our understanding of our participation in Google who do that.
So we believe that we have them very very strong product.
And we want to win over people from at the end to our product that we also want to when people over from JJ to our product and we see that both as possible. So when people over from at the end, we when people overcomes the Ajay and that's why we think it's important for us to be present.
Okay. If I S. I may ask a follow up question on landing page assessment, because historically you guys talk about you know on the benefit of implementing the new relevance assessment is that conversion rate would be a lot higher.
And and given the fact, they removing and this algorithm.
At this point should we think about maybe offsetting factor your sacrificing conversion rate a little bit.
The benefit of you know removing some of the friction when you advertise or how should we think about the conversion aspect you know off the metric when we think about the.
So when we introduced the relevance assessment, we basically in end of 16 made our rules more flexible I mean, historically, we only allowed for a landing page where the user awards. After you selected an alltel on Trivago would go directly to pay.
Page, where he would see the details of the hotel and then could could ultimately books that hotel room.
And there are certain advertisers there to wanted to deviate from that landing page approach and we allowed for that flexibility. However, we disincentivize to different approach weve because we continue to believe that it is up for the user better and also for the conversion overall better to not duplicate step by June .
Thing and I will tell them, then going to another lives and choosing the same hotel again.
So that that is that that approach was I mean from today's perspective.
More rich it than what we have today, what we have now put in place and what we're now working on is true mutually optimize the hand over from Trivago to our advertisers landing page and bye Bye bye bye sharing contacts with the advertiser too.
Optimized for the individual user the lending experience and optimize conversion and too and so.
To answer your question, we've run a a large scale test with a lot of visibility and two and and we do believe that our current approach is optimizing end to end conversion better than our previous approach.
Okay, Great that's sounds like a very good news thanks.
Thank you and your next question comes from the life. He told me your line is open.
Great. Thanks, just wondering if you can give us a sense on the.
<unk>.
Hello to hear your line is gone quiet.
That's correct. We've lost that line. So would you like me to move on to the next question Okay.
The next question comes from the line of Brian <unk>. Your line is open.
Cool. Thanks, Good morning, guys I've to just the first one could you sort of talk us through some of the the steps that you're taking as you're sort of working with your your large advertisers to make the the adoption of bid Mike modifiers more seamless you know what steps have you seen.
As you take it how do you think about steps you need to take this sort of remove friction from adoption going forward and then the second one just sort of a bigger picture question too is we look into fourth quarter 2020, and beyond talk us through the the one or two most important points that you think you need to address for your advertisers to really.
Bring the business back to sustained growth. Thanks.
So on the on the bid modifier there when we will obviously launched not all the markets at the same time, but went through a staged approach where we initially or worse splitting the markets into a and b test markets to gradually train the algorithms and reducing.
The impact for the advertiser.
And and the second step on we're going to 100%, we're providing all our advertisers with bid modifier suggestions.
From our perspective, our optimal.
But and then that is that's a starting point the land from there obviously everybody's training his own algorithm and they are we are we are supporting the learning through advice, but India and there is a limit to how much we can do because the algorithm obviously is proprietary for each of our advertisers and.
They will only allow us to to guide them and give them advise and not not really to to optimize directly.
So it's really learning process that that is taking time and we are giving all the supports that we can.
[noise] Andre and then sort of the gun.
On on 2020 , what are the most important points for advertisers.
So I think the approach that that we really starts that as Rob mentioned a couple of times now on the earnings calls beginning of the year by.
Entering into more strategic dialogue has so far worked well and we will obviously continue to do that and and are doing our annual summers, where there are large advertisers one one clear topic to improve the efficiency of the marketplace is obviously the launch of.
Got a bit modify our so we're in discussions there, but they're also many other ideas that are coming up from.
Individual oral so many advertisers are the same time and we are assessing them again jointly deciding which ones we want to implement.
I'm afraid there's not that much more.
Color I can give you there for competitive reasons, but but they are there is clearly a roadmap of ideas that we feel our that are.
Accretive to the marketplace dynamics and that our and our roadmap.
Great. Thanks.
Thank you and we do how about last question comes on the line up Lloyd Wamsley. Your line is open.
Oh, Thanks for taking the fall just wondering if you didn't give us an update on off just our new auction participants are you see.
See true that all move into new geography for example, we're seeing RBC.
Hotel Tonight based on.
I mean, the auctions more any any update on what you're seeing or will you.
Expect or the next kind of.
Year to in terms of new participants coming in two different Archie.
Yeah, So both see trip and hotel to not have been appetites for quite some time and.
Arabian be as doing tests in certain markets with us.
And is that are you seeing the secret for example, expand in terms of geographies, where they're bidding.
Yes.
Or is it still isolated in their core markets.
They are and we don't really comment on individual appetizers, but but overall, they're regional advertisers have the ambition to grow beyond their call region and that's what we see.
Cross multiple regional advertisers, having said that there's a process that does take time, because you obviously need to build up your inventory in markets that outside of your whole market and core territory. So it is really.
Developments that we are supporting a where we can but it's nothing that is really there are no significant changes from from one day to the other to be expected.
Got it thank you.
Thank you they were going no further questions I'll hand, the call back to Ralph Thank you.
Yes, Thanks, a lot for joining our third quarter earnings call.
As I said, we started his quarter next with a we wanted to get back to growth globally and be slightly Miss that go on.
On the other hand, our investment in the Americas gives us confidence that we are able to outgrow the market.
I highlighted how we progress from several operational topics and we believe that our investment into learning and progress will pay out.
Well I can this time I cannot look forward to talk to you again next quarter.
I can thank you for your support and your collaboration over the last years.
And I will definitely Miss that challenge.
Thanks, a lot.
Thank you, Sir ladies and gentlemen that does conclude our conference for today. Thank you for participating you may now disconnect speakers. Please standby.
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