Q2 2024 trivago NV Earnings Call

Good day ladies and gentlemen.

Operator: Victor Ernie's call to 2024. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to ask, if you would like to withdraw a question, press star one again.

Operator: All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to ask another question, press star 1 again.

Speaker Change: And welcome to the Trivago Q3 Earnings Call 2024. All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad.

Operator: I must advise you, the call is being recorded today, Wednesday, the 31st of July, 2024.

Speaker Change: If you would like to withdraw a question, press star 1 again. I must advise you the call is being recorded today, Wednesday, the 31st of July , 2024. We are pleased to be joined on the call today by Johannes Thomas, Trivago CEO and Managing Director, and Robin Harris, Trivago CFO and Managing Director.

Operator: I must advise you the call is being recorded today, Wednesday, the 31st of July, 2024. We're pleased to be joined on the call today by Johannes Thomas, Trivago CEO and Managing Director, and Robin Harris, Trivago CFO and Managing Director. The following discussion, including responses to your questions, reflects management views as of today, Wednesday, July 31, 2024 only. Trivago does not undertake any obligation to update or revise this information. As always, some of the statements made on today's call are forward-looking, typically preceded by words such as we expect, we believe, we anticipate, or similar statements.

Operator: Verably, to be jointed on the call today by you and Thomas, Tervago CEO and managing director, and Robin Harris, Tervago CF. The following discussion, including responses to your question, reflects management views as of today, Wednesday, July 31, 2021, only. Tervago does not undertake any obligation to update or advise this information. As always, some of the statements made on today's call are forward-looking, typically preceded by words such as "we expect." We believe we anticipate our similar statements.

Speaker Change: The following discussion, including responses to your question, reflects management views as of today, Wednesday, July 31, 2024 only.

Speaker Change: Trivago does not undertake any obligation to update or revise this information. As always, some of the statements made on today's call are forward-looking, typically preceded by a word such as we expect, we believe, we anticipate, or similar statements.

Operator: Please refer to the Q220 for operating and financial review, and Tervago's other filings with the SEC for information about factors we could cost Tervago's actual result to differ materially from these forward looking statements. You will find reconciliation of non-GAAP measures to the most comparable GAAP measure discussed in integrating and financial review, which is on Tervago's Investor Relation website at ir.tervago.com. You are encouraged to periodically visit Tervago's Investor Relations website for important content.

Speaker Change: Please refer to the QT 2024 Operating and Financial Review and Trivago's other filings with the SEC for information about factors which could cause Trivago's actual results to differ materially from these forward-looking statements.

Speaker Change: You will find reconciliations of non-GAAP measures to the most comparable GAAP measure discussed today in Trivago's Grading and Financial Review, which is posted on Trivago's Investor Relations website at ir.trivago.com.

Speaker Change: You are encouraged to periodically visit Trivago's investor relations website for important content.

Operator: Finally, unless otherwise stated, all competitors and undisputable be against the social threat, a viable period of 23.

Speaker Change: Finally, unless otherwise stated, all comparison undisclosed will be against the social credit variable period of 2023. With that, let me turn the call over to Johannes.

Operator: Please refer to the QT 2024 Operating and Financial Review and Trivago's other filings with the SEC for information about factors which could cause Trivago's actual results to differ materially from this forward-looking statement. You will find reconciliations of non-GAAP measures to the most comparable GAAP measure discussed in the Trivago Rating and Financial Review, which is posted on the Trivago Investor Relations website at ir.trivago.com You are encouraged to periodically visit Trivago's investor relations website for important content. Finally, unless otherwise stated, all comparisons undisclosed will be against the socially predictable period of 2023. With that, let me turn the call over to Johannes.

Operator: With that, let me turn the call over to your anus.

Johannes Thomas: Good morning, everyone. Thank you for joining our Q2 2024 earnings call. The second quarter of 2024 marks the fourth consecutive quarter with improved top line trajectory. We are pleased to see positive branded revenue growth in all three segments. Despite the challenges posed by Google's ad former changes. Our branded revenue growth has largely offset the negative impact from performance marketing. These known headlines were likely to persist for the remainder of the year and should cease in early 2025. We remain confident that we can return to growth in the second half of the year.

Johannes Thomas: Good morning, everyone. Thank you for joining our Q2 2024 earnings call. The second quarter of 2024 marks the fourth consecutive quarter with improved top-line trajectories. We are pleased to see positive branded revenue growth in all three segments. Despite the challenges posed by Google's ad format changes, our branded revenue growth has largely offset the negative impact on performance markets. These known headwinds will likely persist for the remainder of the year and should cease in early 2025.

Joannès: Good morning, everyone. Thank you for joining our Q2 2024 earnings call.

Joannès: The second quarter of 2024 marks the fourth consecutive quarter with improved top-line trajectory.

Joannès: We are pleased to see positive branded revenue growth in all three segments. Despite the challenges posed by Google's ad former changes, our branded revenue growth has largely offset the negative impact on performance marketing.

Joannès: These known headwinds will likely persist for the remainder of the year and should cease in early 2025.

Johannes Thomas: We remain confident that we can return to growth in the second half of the year. Now, let's move on to our strategic priorities. Our first strategic priority is branded growth. We remain one of the most recognized travel brands in the world and are pleased with the outcomes of our brand marketing campaigns in Q2. Our marketing teams continue to push boundaries. In the first half of 2024, our in-house creative production team developed six new master spots for our TV campaign. These ads were tested live, and the best performing creators were localized based on their impact in the market.

Joannès: We remain confident that we can return to growth in the second half of the year.

Johannes Thomas: Now let's move on to our strategic priorities. Our first strategic priority is branded growth. We remain one of the most recognized travel brands in the world and are pleased with the outcomes of our brand marketing campaigns in Q2. Our marketing teams continue to push boundaries. In the first half of 2024, our in-house creative production team developed six new master sports forward TV campaigns. These ads were tested live, and the best performance creators were localized based on the impact in the market. Using AI, the team produced over 100 Taylor TV spots, showcasing our unique capabilities to test assumptions and optimize campaigns across our segments.

Johannes Thomas: Using AI, the team produced over 100 tailored TV spots, showcasing our unique capabilities to test assumptions and optimize campaigns across our segment. Our second strategic priority is to improve our hotel search experience. We aim to help travelers find their ideal hotel.

Joannès: Now, let's move on to our strategic priorities.

Joannès: Our first strategic priority is branded growth. We remain one of the most recognized travel brands in the world and are pleased with the outcomes of our brand marketing campaigns in Q2.

Joannès: Our marketing teams continue to push boundaries. In the first half of 2024, our in-house creative production team developed six new master spots for our TV campaign.

Joannès: These ads were tested live, and the best-performing creators were localized based on their impact in the market.

Joannès: Using AI, the team produced over 100 tailored TV spots, showcasing our unique capabilities to test assumptions and optimize campaigns across our segments.

Johannes Thomas: Our second strategic priority is to improve our hotel search experience. We enter travelers find their ideas hotel. We have expanded our AI powered hotel highlights to mobile and our platforms. We have focused on improving quality and put particular focus on surfacing unique selling points of hotels to that feature. I'm also excited to share that since we arrived, we have the strongest quarter in terms of the number of experiments we run on our website. These incremental improvements have collectively led to a tangible increase in conversion rate, which is our strongest proxy for user satisfaction and retention.

Speaker Change: Our second strategic priority is to improve our hotel search experience.

Johannes Thomas: We have expanded our AI-powered Hotel Highlights to mobile and our app platform. We have focused on improving quality and put particular focus on surfacing unique selling points of hotels through that feature. I'm also excited to share that since we arrived, we have had the strongest quarter in terms of the number of experiments we run on our website. These incremental improvements have collectively led to a tangible increase in conversion rates, which is our strongest proxy for user satisfaction and retention. This impact demonstrates the accelerated pace of execution and learning of our techniques.

Speaker Change: We aim to help travelers find their ideal hotel. We have expanded our AI-powered hotel highlights to mobile and our app platforms.

Speaker Change: We have focused on improving quality and put particular focus on surfacing unique selling points of hotels through that feature.

Speaker Change: I'm also excited to share that since we arrived, we have the strongest quarter in terms of the number of experiments we run on our website. These incremental improvements have collectively led to a tangible increase in conversion rates.

Speaker Change: which is our strongest proxy for user satisfaction and retention.

Johannes Thomas: This impact demonstrates the Alexa accelerated pace of execution and learning of our tactics.

Speaker Change: This impact demonstrates the accelerated pace of execution and learning of our tech teams.

Johannes Thomas: Our third strategic priority is to offer the best deals coverage experience. We strive to help travelers find great deals and better prices. We have improved the visibility and quality of deals in our search results. We experimented with new formats for highlighting deals and increased the coverage of member-only rate from our advertising partners. These special rates of additional savings require users to sign up for Trivago.

Johannes Thomas: Our third strategic priority is to offer the best deals cover experience. We strive to help travelers find great deals and better prices. We have improved the visibility and quality of deals in our search results. We experimented with new formats for highlighting deals and increased the coverage of member-only rates from our advertising partners. These special rates offer additional savings and require users to sign up for Trivago.

Speaker Change: Our third strategic priority is to offer the best deals cover experience.

Speaker Change: We strive to help travelers find great deals and better prices.

Speaker Change: We have improved the visibility and quality of deals in our search results. We experimented with new formats for highlighting deals and increased the coverage of member-only rates from our advertising partners.

Speaker Change: These special rates offer additional savings and require users to sign up for Trivago.

Johannes Thomas: Our fourth priority is to create value for our advertising partners. Compared to last year, we have seen improved booking conversion rates, delivering more effective traffic to them. The improved marketplace dynamics across all segments suggests that our branded and higher converting traffic is valued by our advertisers. We are also excited to announce the completion of our global rollout of the second-price auction model in our marketplace. This complex project was delivered on time thanks to the strong collaboration with our partners.

Johannes Thomas: Our fourth priority is to create value for our advertising partners. Compared to last year, we have seen improved booking conversion rates, delivering more effective traffic to them. The improved marketplace dynamics across all segments suggest that our branded and higher-converting traffic is valued by our advertisers. We are also excited to announce the completion of our global rollout of the second price auction model in our marketplace. This complex project was delivered on time thanks to the strong collaboration with our partners.

Speaker Change: Our fourth priority is to create value for our advertising partners.

Speaker Change: Compared to last year, we have seen improved booking conversion rates, delivering more effective traffic to them.

Speaker Change: The improved marketplace dynamics across all segments suggests that our branded and higher converting traffic is valued by our advertisers.

Speaker Change: We are also excited to announce the completion of our global rollout of the second price auction model in our marketplace.

Speaker Change: This complex project was delivered on time thanks to the strong collaboration with our partners.

Johannes Thomas: We are also pleased to share news about our investment in Holisto. The company is an AI-driven travel tech platform and serves as a whole to rate aggregator. In 2022, we partnered with them on Trivago booking goal, a co-branded booking funnel developed and hosted by Holisto. This initiative grew successful, increasing their conversion rates and growing their market share. In the US, they have become a top 5 advertiser on our platform and globally ranked among the top 10. The investment and strong partnership will allow us to offer Trivago and Booking goal to all our advertising partners. Our goal is to provide a more consistent booking experience for our users and help our advertising partners to drive conversion.

Johannes Thomas: I'm also pleased to share news about our investment in Holisto. The company is an AI-driven travel tech platform that serves as a hotel rate aggregator. In 2022, we partnered with them on Trivago Book & Go, a co-branded booking funnel developed and hosted by Holisto. This initiative proved successful, increasing their conversion rates and growing their market share. In the U.S., they have become a top five advertiser on our platform and globally ranked among the top ten.

Speaker Change: I'm also pleased to share news about our investment in Holisto. The company is an AI-driven travel tech platform and serves as a wholesale rate aggregator.

Speaker Change: In 2022, we partnered with them on Trivago Book&Go, a co-branded booking funnel developed and hosted by Holisto.

Speaker Change: This initiative proved successful, increasing their conversion rates and growing their market share. In the US, they have become a top 5 advertiser on our platform and globally rank among the top 10.

Johannes Thomas: The investment and strong partnership will allow us to offer Trivago Book & Go to all our advertising partners. Our goal is to provide a more consistent booking experience for our users and help our advertising partners to drive conversion. Holistos' footprint, rate optimization, and price accuracy are best in class.

Speaker Change: The investment and strong partnership will allow us to offer Trivago Book & Go to all our advertising partners.

Speaker Change: Our goal is to provide a more consistent booking experience for our users and help our advertising partners to drive conversion.

Johannes Thomas: Holisto's footprint and rate optimization price accuracy is best in class. The team is leveraging AI to optimize rate exposure and dynamic pricing, delivering tangible value to travelers. We are impressed by their tech teams and expansion and the recent years.

Speaker Change: Colisto's footprint in rate optimization and price accuracy is best-in-class. Their team is leveraging AI to optimize rate exposure and dynamic pricing, delivering tangible value to travelers.

Johannes Thomas: The team is leveraging AI to optimize rate exposure and dynamic pricing, delivering tangible value to travel. We are impressed by their tech teams and their expansion in recent years. In summary, our brand investments are yielding positive returns that we anticipate will drive sustainable growth and enhance long-term monetization. Despite some headwinds, we remain optimistic about the rest of the year and in our ability to achieve double-digit top-line growth in the medium term.

Speaker Change: We are impressed by their tech teams and expansion in the recent years.

Johannes Thomas: In summary, our brand investments are yielding positive returns that we anticipate will drive sustainable growth and enhance long-term monetization. Despite some headwinds, we remain optimistic about the rest of the year and in our ability to achieve double-digit top-line growth in the medium term. We expect the strength and partnership with Holisto to contribute to our growth through an improved user experience. We are looking forward to collaborating with the entrepreneurial Holisto team, and I would like to express my gratitude to all our teams for their ongoing hard work and dedication.

Speaker Change: In summary, our brand investments are yielding positive returns that we anticipate will drive sustainable growth and enhance long-term monetization.

Speaker Change: Despite some headwinds, we remain optimistic about the rest of the year and in our ability to achieve double-digit, top-line growth in the medium term.

Johannes Thomas: We expect to strengthen our partnership with Holisto to contribute to our growth through an improved user experience. We are looking forward to collaborating with the entrepreneurial Holisto team. And I would like to express my gratitude to our teams for their ongoing hard work and dedication. With this, I'll hand over to Robert.

Speaker Change: We expect the strength and partnership with Holisto to contribute to our growth through an improved user experience.

Speaker Change: We are looking forward to collaborating with the Entrepreneurial Holistic Team and I would like to express my gratitude to our teams for their ongoing hard work and dedication.

Robin Harris: With this, I'll hand over to Robin.

Robin Harris: Thank you, Johannes, and good morning, everyone. Welcome to our second quarter on its course. I've been back at Trivago for four months now, and I'm really encouraged by our focus on our key strategic priorities. During this quarter, we've continued to see positive trends that move us closer to our midterm goal of achieving double-digit year-over-year revenue growth. We believe that Trivago, as one of the strongest Trevor brands in the world, is both an interesting and powerful marketing channel for our advertisers. A significant part of our marketing budget is invested in brand marketing, including TV advertising, which allows us to also reach offline consumers and bring them into the online world.

Robert: Thank you, Johannes, and good morning, everyone. Welcome to our second quarter earnings call. I've been back at Trivago for four months now, and I'm really encouraged by our focus on our key strategic priorities. During this quarter, we continued to see positive trends that move us closer to our midterm goal of achieving double-digit year-over-year revenue growth. We believe that Trivago, as one of the strongest travel brands in the world, is both an interesting and a powerful marketing channel for our advertisers.

Speaker Change: With this, I'll hand over to Robin.

Robin: Thank you, Johannes, and good morning, everyone. Welcome to our second quarter earnings call.

Robin: I've been back at Trivago for four months now, and I'm really encouraged by our focus on our key strategic priorities.

Robin: During this quarter, we've continued to see positive trends that move us closer to our midterm goal of achieving double-digit year-over-year revenue growth. We believe that Trivago, as one of the strongest travel brands in the world, is both an interesting and powerful marketing channel for our advertisers.

Robert: A significant part of our marketing budget is invested in brand marketing, including TV advertising, which allows us to also reach offline consumers and bring them into the online world. Our strong brand marketing delivers incremental users to advertisers that they can acquire performance-based on a global scale. We have seen the positive impact of our brand marketing campaign not only in branded revenue growth but also in increased booking conversion and improved peak quality. I will now review our Q2 results and provide an update on our outlook for the remainder of 2024. Unless otherwise noted, all comparisons for 2024 are on a year-over-year basis.

Robin: A significant part of our marketing budget is invested in brand marketing, including TV advertising, which allows us to also reach offline consumers and bring them into the online world.

Robin Harris: Our strong brand marketing delivers incremental users to advertisers that they can acquire performance based on a global scale. We have seen the positive impact of our brand marketing campaign, not only in branded revenue growth, but also in increased spoken conversion and improved the quality.

Robin: Our strong brand marketing delivers incremental users to advertisers that they can acquire performance based on a global scale. We have seen the positive impact of our brand marketing campaign, not only in branded revenue growth, but also in increased booking conversions and improved quality.

Robin Harris: I will now review our future results and provide an update on our outlook for the remainder of 2024. And let otherwise dated, all comparisons for 2024 are on a year-over-year basis. During the second quarter of 2024, we achieved total revenues of 118.6 million euros, representing a five percent decline compared to the prior year-second quarter. However, the year-over-year decline was less pronounced than what we observed in the past four quarters. With Trevor, revenues increased by 12 percent in the Americas, but decreased by 17 in the developed Europe segment, and by 2 percent in the rest of world segment.

Robin: I will now review our Q2 results and provide an update on our outlook for the remainder of 2024.

Robin: Unless otherwise dated, all comparisons for 2024 are on a year-over-year basis.

Robert: During the second quarter of 2024, we achieved total revenues of 118.6 million euros, representing a 5% decline compared to the prior year's second quarter. However, the year-over-year decline was less pronounced than what we observed in the past four quarters. Further revenues increased by 12% in the Americas, but decreased by 17% in the developed Europe segment and by 2% in the rest of the world segment. We observe positive revenue growth from our branded traffic channels across all three segments and are pleased with the results of all brand marketing.

Robin: During the second quarter of 2024, we achieved total revenues of 118.6 million euros, representing a 5% decline compared to the prior year's second quarter.

Robin: However, the year-over-year decline was less pronounced than what we observed in the past four quarters.

Robin: Recovery revenues increased by 12% in the Americas, but decreased by 17% in the developed Europe segment, and by 2% in the rest of the world segment.

Robin Harris: We observed positive revenue growth from our branded traffic channel across all three segments and are pleased with the results of our brand marketing efforts. Although we are still early in our journey to scale brand marketing investments and our spending remains low compared to pre-COVID levels, we see significant upside potential in the coming years. We are confident that we will return to double-digit top-line growth in the mid-term. Despite positive branded revenue developments, we continue to observe negative revenue declines in our performance marketing channels across all three segments. Significant changes in Google advertisement formats, which began in the second quarter of 2023, increased exposure to less favorable formats for us.

Robin: We observe positive revenue growth from our branded traffic channels across all three segments and are pleased with the results of our brand marketing efforts.

Robin: Although we are still early in our journey to scale brand marketing investments and our spending remains low compared to pre-COVID levels, we see significant upside potential in the coming years. We are confident that we will return to double-digit top-line growth in the midterm.

Robert: Although we are still early in our journey to scale brand marketing investments and our spending remains low compared to pre-COVID levels, we see significant upside potential in the coming years, and we are confident that we will return to double-digit top-line growth in the midterm.

Robert: Despite positive branded revenue developments, we continue to observe negative revenue declines in our performance marketing channels across all three sectors. Significant changes in Google advertisement formats, which began in the second quarter of 2023, increased exposure to less favorable formats for us. These changes led to increased volatility and traffic volume losses in our performance marketing channels. We expect this to continue, and we'll maintain a disciplined, opportunity-driven investment strategy. We do not intend to compensate for volume losses at the expense of our long-term brand investment.

Robin: Despite positive branded revenue developments, we continue to observe negative revenue declines in our performance marketing channels across all three segments.

Robin: Significant changes in Google advertisement formats, which began in the second quarter of 2023, increased exposure to less favorable formats for us.

Robin Harris: These changes led to increased volatility and traffic volume losses in our performance marketing channels. We expect this to continue and will maintain a disciplined, opportunity-driven investment strategy. We do not intend to compensate for volume losses at the expense of our long-term brand investment. The second quarter saw healthier bidding dynamics in our America segment, whereas the developed Europe and the rest of world continue to lag behind the prior year but show signs of improvements. In summary, our America segment experienced positive branded revenue growth, healthier monetization levels, and offset by performance marketing losses, resulting in overall referral revenue growth.

Robin: These changes led to increased volatility and traffic volume losses in our performance marketing channels. We expect this to continue and will maintain a disciplined, opportunity-driven investment strategy. We do not intend to compensate for volume losses at the expense of our long-term brand investment.

Robin: The second quarter saw healthier bidding dynamics in our America segment, whereas developed Europe and the rest of the world continue to lag behind the prior year, but show signs of improvement.

Robin: In summary, our America segment experienced positive branded revenue growth, healthier monetization levels, and offset by performance marketing losses, resulting in overall referral revenue growth.

Robin Harris: In the developed Europe and rest of world, why branded revenue growth was positive, performance marketing losses, and softer bidding dynamics compared to the same period in 2023, offset the growth, resulting in overall decline.

Robin: and develop Europe and rest of world why branded revenue growth was positive, performance marketing losses and softer bidding dynamics compared to the same period in 2023 offset the growth resulting in an overall decline.

Robert: Regarding operational expenses, we incurred 11.5 million euros higher operating expenses totaling 127.4 million euros during the second quarter of 2024. This increase was primarily due to 12 million euros higher selling and marketing expenses, partially offset by 0.7 million euros lower general and administrative costs. Advertising spend increased by 31% in America and by 38% in the rest of the world. In developed Europe, advertising spend decreased by 10% due to a significant reduction in performance marketing spend.

Robin: Regarding operational expenses, we incurred €11.5 million higher operating expenses, totaling €127.4 million during the second quarter of 2024.

Robin: This increase was primarily due to €12 million higher selling and marketing expenses, partially offset by €0.7 million lower general and administrative costs.

Robin Harris: 7 million euros lower general and administrative costs. Advertising spent increased by 31% in America and by 38% in the rest of the world. In the development of Europe, advertising spent decreased by 10% due to a significant reduction in performance marketing spent. Brand marketing spent increased in all three segments. As anticipated, the increase spent investments during the quarter resulted in a decline in our return on advertising spent, Roas, our key metric comparing referral revenue with advertising spent across all three segments.

Robin: Advertising spend increased by 31% in America and by 38% in the rest of the world. In developed Europe , advertising spend decreased by 10% due to a significant reduction in performance marketing spend. Brand marketing spend increased in all three segments.

Robin: As anticipated, the increased brand investments during the quarter resulted in a decline in our return on advertising spend, ROAS, our key metric comparing referral revenue with advertising spend across all three segments.

Robin Harris: Overall, we had a net loss of 4.9 million euros and an adjusted EBDA loss of 5.4 million euros during the second quarter.

Robin: Overall, we had a net loss of 4.9 million euros and an adjusted EBTA loss of 5.4 million euros during the second quarter.

Robin Harris: I would like to now share some further details on our investment in Soliso. We are happy about our initial investment in Soliso, which closed on July 30th, 2024. Soliso is an AI-driven tech company that serves as a voter rate aggregator and white labor booking engine. Soliso was founded in 2015 and has several brands under its umbrella like Soliso, IboTeX, Trevaloro. In 2023, Soliso generated around $37 million US dollars net revenues and had been growing WDGD over a year-top line over the last years. There were almost break even in terms of operating income in 2023. We have invested $10 million US dollars to acquire a 30% interest and have an option to acquire the remaining 70% interest in Soliso to fully acquire the company within the next 15 months.

Robin: I would like to now share some further details on our investment in Toledo.

Robin: We are happy about our initial investment in Holisto, which closed on July 30th, 2024.

Robin: Colisto is an AI-driven tech company that serves as a voter rate aggregator and white-label booking engine. Colisto was founded in 2015 and has several brands under its umbrella, like Colisto, Algotex, Traveluro.

Robert: Brand marketing spend increased in all three sectors. In 2023, Holisto generated around 37 million U.S. dollars in net revenues and had been growing double-digit year-over-year top line for the last years. They were almost break-even in terms of operating income in 2023. We plan to maintain our profitability targets and will not offset performance marketing volume losses as we focus on our brand marketing campaigns for long-term growth.

Speaker Change: In 2023, Holisto generated around $37 million U.S. net revenues and has been growing double-digit year-over-year top line over the last years. They were almost break-even in terms of operating income in 2023.

Speaker Change: We have invested 10 million U.S. dollars to acquire a 30% interest and have an option to acquire the remaining 70% interest in Olisto to fully acquire the company within the next 15 months.

Robin Harris: Maximum exercise price for the call option is set to $60 million US dollars. If we were to exercise the option, we may elect to settle the purchase price partially in cash and partially in Privago shares, which shares not representing more than 50% of the purchase price. We believe that this strategic investment will help us further improve our user experience and look forward to the entrepreneurial and data driven team.

Speaker Change: Maximum exercise price for the call option is set to 60 million US dollars.

Speaker Change: If we were to exercise the option, we may elect to settle the purchase price partially in cash and partially in Trivago shares, with shares not representing more than 50 percent of the purchase price.

Speaker Change: We believe that this strategic investment will help us to further improve our user experience and look forward to the entrepreneurial and data-driven team.

Robin Harris: Looking ahead, we see a solid travel demand. We continue to provide our partners with high quality traffic and expect advertisers to appreciate this over time. We plan to maintain our profitability targets and will not offset performance marketing volume losses as we focus on our brand marketing campaigns for long-term growth. We still expect revenues to grow year-over-year during the second half of 2024, and we continue to guide our adjusted EBDA for the full year to be around break-even levels. We are pleased with the results of our bank marketing campaigns, and we main confidence that these investments will further increase our branded revenue over time, driving long-term growth and profitability.

Speaker Change: Looking ahead, we see a solid travel demand. We continue to provide our partners with high-quality traffic and expect advertisers to appreciate this over time.

Speaker Change: We plan to maintain our profitability targets and will not offset performance marketing volume losses as we focus on our brand marketing campaigns for long-term growth.

Speaker Change: We still expect revenues to grow year over year during the second half of 2024, and we continue to guide our adjusted EBDA for the full year to be around breakeven levels.

Speaker Change: We are pleased with the results of our brand marketing campaigns and remain confident that these investments will further increase our branded revenue over time, driving long-term growth and profitability. With that, let's open the line for questions. Operator, we are now ready to take the first question.

Operator: With that, let's open the line for questions. Operator, we are now ready to take the first.

Operator: We will now begin the question and answer session. If you have a style in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue.

Speaker Change: We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are unable to answer the question and are listening via a loudspeaker on your device, please raise your hands and ensure that your phone is not on mute when you are asking your question.

Operator: If you would like to withdraw your questions in the press room one again.

Operator: If you have a follow-up on question and are listening by a speaker on your hands, ensure that your phone is not on mute when you're asking your question.

Jeremy Liu: Your first question comes from the line of Jeremy Liu, with UBS. Jeremy, your line is not open. Hey, good morning, guys. I have two questions. So number one, can you go into some of the product gaps that the list of investment will help still? What drove the decision to invest in them now, if you've been partnered since 2022?

Operator: Your first question comes from the line of Jeremy Liu with UBS. Jeremy, your line is now open.

Speaker Change: Your first question comes from the line of Jeremy Liu with UBS. Jeremy, your line is now open.

Jeremy Liu: Hey, good morning, guys. I have two questions. So, number one, can you go into some of the product gaps that the Halisto investment will help fill? And what drove the decision to invest in them now if you've been partners since 2022? And second question, it looks like ROAS has improved versus 1Q. While we'd expect a step down given the historical seasonality, what's driving this? Are you seeing better payback on the brand channel?

Jeremy Liu: Hey, good morning guys. I have two questions. So number one, can you go into some of the product gaps that

Speaker Change: What drove the decision to invest in them now, if you've been partners since then?

Jeremy Liu: And second question, it looks like Roaz has improved versus one queue while we expect to step down given the historical seasonality. What's driving this? Are you seeing better payback in the brand channel?

Jeremy Liu: 2022. And second question, it looks like ROAS is improved versus OneCube. While we'd expect a step down given the historical seasonality, what's driving this? Are you seeing better payback in the brand channel?

Johannes Thomas: Jeremy, thank you for your question.

Johannes Thomas: Jeremy, thank you for your question. I will comment on Holisto.

Johannes Thomas: I will comment on Holisto. The product gap is basically that we see user irritation with leaving our site and landing on dozens of different sites. So we have on a hotel comparing lots of options. And whenever the user leaves, especially in a world that is mobile, it creates irritation with different landing pages. I need to that use to sign up to the sites. And we want to create consistency in the user experience when users leave our site. In particular, when they are locked in or when you're using our app, that you have a smooth experience; you're not bouncing back and forth to different landing pages.

Speaker Change: Jeremy, thank you for your question. I will comment on Holisto.

Johannes Thomas: The product gap is basically that we see user irritation with leaving our site and landing on dozens of different sites. So we have a hotel comparing lots of options, and whenever the user leaves, especially in a world that is mobile, it creates irritation with different landing pages. I need to get used to; I need to sign up for the site.

Speaker Change: The product gap is basically that we...

Speaker Change: see user irritation with leaving our site and landing on dozens of different sites.

Speaker Change: We have on a hotel comparing lots of options.

Speaker Change: and whenever the user leaves, especially in a world that is mobile.

Speaker Change: It creates irritation with different landing pages, I need to get used to, I need to sign up to the sites.

Johannes Thomas: And we want to create consistency in the user experience when users leave our site, in particular when they are locked in. So, or when you're using our app, that you have a smooth experience; you're not bouncing back and forth to different landing pages. And that is something we used to have pre-pandemic. We had product express booking, which we had a team, a dedicated office to build and maintain. During the pandemic, when we consolidated, this was reduced in focus and then was deprecated in 2022.

Speaker Change: And we want to create consistency in the user experience when users leave our site, in particular when they are logged in, or when you are using our app, that you have a smooth experience, you are not bouncing back and forth to different landing pages.

Johannes Thomas: And that is something we used to have pre-pandemic. We had the product express booking, which we had a team, a dedicated office in building that and maintaining that. During the pandemic, when we consolidated, this has reduced and focused, and then was deprecated in 2022. Holisto picked up the product, rebuilt it on their own costs and basically have shown that they were very well capable of building a booking funnel that were well converting. Over the last year, they have gained substantial share, and the U.S. Off a well converting booking funnel, aggregate rates on a very competitive level with high rate accuracy, which is always a challenge.

Speaker Change: And that is something we used to have.

Speaker Change: pre-pandemic, we had the product express booking.

Speaker Change: which we had a team, a dedicated office in building that.

Speaker Change: and maintaining that. During the pandemic, when we consolidated, this has reduced in...

Speaker Change: and focus and then was deprecated in 2022.

Johannes Thomas: Holisto picked up the product, rebuilt it at their own costs, and basically have shown that they were very well capable of building a booking funnel that was well converting. Over the last year, they have gained a substantial share in the U.S.

Speaker Change: Holisto picked up the product, rebuilt it on their own on their own costs and basically have shown that they were very well capable building a booking funnel that were well converting. Over the last year they have gained substantial share in the U.S.

Speaker Change: a well-converting booking funnel, aggregate rates on a very competitive...

Speaker Change: level with high rate accuracy which is always a challenge and that's why we think they are an exceptional tech provider in offering a funnel that we can offer to other advertising partners as well.

Johannes Thomas: And that's why we think they are an exceptional tech provider in offering a funnel that we can offer to other advertising partners as well, to help them list conversion rates. And that is a result of a more consistent user experience. And we do a co-branding, so you have these less known booking sites that the Price Line might be known in the U.S., but it's not known in Europe. And then we would have a co-branded booking funnel that gives the price line more trust and would also be part of a lifting conversion. We just think it's a good timing.

Speaker Change: to help them lift conversion rates and that is a result of a more consistent user experience.

Speaker Change: And we do a co-branding, so you have these.

Speaker Change: booking sites yeah that like a price line might be known in the US but it's not known in Europe .

Speaker Change: and then we would have a co-branded booking funnel.

Speaker Change: that gives Priceline more trust and would also be part of lifting conversion. We just think it's a good timing. We have seen they delivered on what we partnered on and that's why we think it was a good timing to do that now.

Johannes Thomas: We have seen they delivered on what we partnered on, and that's why we think it was a good timing to do that now.

Robin Harris: And to the second question, so Roa's is a sect of our marketing mix, and we saw branded revenues growth and also segments. We are happy about the development, and so this contributes to our overall Roa's development.

Speaker Change: And to the second question, so ROAS is the effect of our marketing mix, and we saw branded revenues, growth in all three segments. We are happy about the development, and so this contributes to our overall ROAS development.

Jeremy Liu: Great, thank you, guys.

Speaker Change: Great, thank you guys.

Naved Khan: Your next question comes from the line of Naved Khan. We'd be wireless securities. Naved, your line is so open. Yeah, hi. Thanks. Two questions from me. One, in developed Europe, the revenue decline was steeper. And the second quarter was the first quarter. And if I look at America's, that growth turned positive. So what's causing the divergence between developed Europe from the Americas? And the second question I had is just on your guidance of positive growth in the end of the back half. If I have to kind of think about third quarter, which is the fourth quarter, do you expect to be positive in both of these, or how should I think about that?

Operator: Your next question comes from the line of Naved Khan with B. Reilly Securities. Naved, your line is now open.

Speaker Change: Your next question comes from the line of Naved Khan with V. Riley Securities. Naved, your line is now open.

Naved Khan: In developed Europe , the revenue decline was steeper in the second quarter, which is the first quarter. And if I look at America's, that growth turned positive. So what's causing the divergence between developed Europe ?

Naved Khan: from the from the Americas. And the second question I had is just on your on your guidance.

Speaker Change: of positive growth in the back half. If I have to kind of think about the third quarter versus the fourth quarter, do you expect to be positive in both of these? Or how should I think about that? And any trends you can share maybe for July will be very helpful. Thank you.

Naved Khan: And any trends you can share maybe for July will be helpful. Thank you.

Naved Khan: Yeah, thanks for your questions. So, regarding developed Europe... We had.

Johannes Thomas: Yeah, thanks for your questions. So we're regarding developed Europe. We had more happens from Google in Europe. So this is the case when you look at the performance: America's positive, developed Europe negative. We had happens from Google in all three segments, but it was worse in developed Europe. So the performance marketing revenue decline was much stronger in developed Europe than in America. So, and when you consider that we have branded revenue growth in all three segments, you'll get a feeling about the impact of the Google development. So your second question, in terms of guidance, we expect to return to growth over the course of the second half of this year.

Speaker Change: We had

Speaker Change: more headwinds from Google in Europe so this is the case when you look at the performance

Speaker Change: America's positive, developed Europe negative. We had headwinds from Google in all three segments, but it was worse in developed Europe . So the performance marketing revenue decline was much stronger in developed Europe than in America.

Johannes Thomas: So, and when you consider that we have branded revenue growth in all three segments, you get a feeling about the impact of the Google developments. To your second question in terms of guidance, we expect Q3 to still be challenging because we already invested in brand marketing campaigns last summer and still have headwinds from Google. So challenging comps for Q3, and we expect Q4 to be better.

Speaker Change: So, and when you consider that we have branded revenue growth in all three segments.

Speaker Change: you get a feeling about the impact of the Google development.

Johannes Thomas: We expect Q3 still to be challenging because we already invested into print marketing campaigns last summer and still have happened from Google. So challenging comes for Q3, and we expect Q4 to be better.

Speaker Change: We expect to return to growth over the course of the second half of this year.

Speaker Change: We expect Q3 still to be challenging because we already invested into brand marketing campaigns last summer and still have help from Google. So challenging comps for Q3 and we expect Q4 to be better.

Naved Khan: Great. Maybe just just a clarification on the on the on the Google advantage that you saw. Is that is that due to the DNA that could have kind of impacted that, and then the bidding dynamics which you also mentioned seem to be better in the America's worst driving that. So the of course it's the Google format changes. They started in Q223, and they have been increasing the GHA and PPH share over time. And when you look at the development, so Q4 was worse than Q3, Q1 was worse than Q2, and Q2 was even worse than Q1.

Naved Khan: Great, maybe just a clarification on the Google headwinds that you saw. Is that due to the DNA that could have could have kind of impacted that, and then the bidding dynamics, which you also mentioned seem to be better in America's worst driving that

Speaker Change: maybe just

Speaker Change: So, the...

Speaker Change: Of course, the Google format changes.

Speaker Change: They started in Q2'23.

Speaker Change: And when you look at the development, so Q4 was worse than Q3, Q1 was worse than Q2, and Q2 was even worse than Q1. So we have the worst effect we saw in Q2, so this is definitely a driver.

Johannes Thomas: So we have the worst effect we saw in Q2. So this is this is definitely a driver. And to your second question, in terms of monetization, we see healthy monetization in the Americas. This is a nice marketplace dynamics developed Europe and rest of the world is softer compared to last year, but we see positive trends there. Thank you, Johannes.

Johannes Thomas: And to your second question, in terms of monetization, we see healthy monetization in the Americas. Developed Europe and the rest of the world are softer compared to last year, but we see positive trends there.

Speaker Change: And to your second question in terms of monetization, we see healthy monetization in the Americas.

Speaker Change: This is nice, nice marketplace dynamics, developed Europe and rest of the world is softer compared to last year, but we see positive trends there.

Johannes: Thank you, Johannes.

Ronald Josey: Your next question comes from the line of some white with the Davidson, Tom.

Ronald Josey: Your line is now open. This is why I'm trying to take care of questions. I have one on Google as well. Could you just talk about the impact expectations during the second half of 2024 relative to two to you? Do you expect it to continue getting worse? And I think you mentioned you expected to stop going into. You expect the impact to stop going into 2025. You should give some more color on your expectations regarding that.

Johannes Thomas: Thank you.

Johannes Thomas: The Google changes started. So this Johannes, thank you for the question, Tom. The Google changes started in Q2 last year, and they gradually have increased exposure of the Google changes. And they were peaking in Q1 this year. They've done a massive change on top of what they had done in the course of the last year already. So the comps were softening the course of the second half of the year. And then after Q1, let's say they start seizing in Q1. This is based on the known known headwinds we have seen. Whether Google will do more changes or not, that's hard to say. We see them continue doing changes.

Speaker Change: The Google changes started in Q2 last year, and they gradually have increased exposure of the Google changes. And they were peaking in Q1 this year, they've done a massive change on top of what they had done in the course of the last year already.

Speaker Change: So, the comps will soften in the course of the second half of the year, and then after Q1, let's say they start seizing in Q1.

Johannes Thomas: The exposure has stabilized, so we are not seeing massive changes on top of what we have seen right now. They have done algorithmic changes about two weeks ago where they increase the diversity of advertiser mix and their placements. So they are continue changes. We see over all the exposure stabilizing. That's our observation. And over the course of the year, the comps will get better and start seizing into one next year.

Speaker Change: The exposure has stabilized, so we are not seeing massive changes on top of what we have seen right now. They have done algorithmic changes about two weeks ago, where they increased the diversity of advertiser mix in their placements.

Speaker Change: So there are continued changes. We see overall the exposure stabilizing. That's our observation. And over the course of the year, the coms will get better and start seizing in Q1 next year.

Ronald Josey: Thank you so much.

Naved Khan: I understand. Thank you very much.

Operator: Thank you very much.

Speaker Change: Understood. Thank you very much.

Operator: Your next question comes from the line up. Ron Josie, we take it back. Ron, your line is now open. And Robert, we're on makes taking the question. Great to see the roll out of second price auction across all markets. You guys maybe talk to the initial feedback from your partners and perhaps expand on the expected impact on bidding activity and second after this year and then adding into 2025. Yeah, so this has been a process we started last year and was an appreciated change from all at most advertising partners. Big ones, small ones, because it simplifies our marketplace and makes bidding more simple.

Ronald Josey: Your next question comes from the line of Ron Josey with Citibank. Ron, your line is now open.

Speaker Change: Hi, this is Robert. Thanks for taking the question.

Robert: Great to see the rollout of second price auction across all markets. Can you guys maybe talk to the initial feedback from your partners and then perhaps expand on the expected impact?

Speaker Change: on bidding activity in the second half of this year and then heading into 2025.

Johannes Thomas: Yeah, so this has been a process we started last year. And it was an appreciated change from all most advertising partners, big ones, small ones, because it simplifies our marketplace and makes bidding more simple. They're bidding algorithms that work on second price auctions and other performance marketing channels. So the feedback in the process was positive, and there was a strong demand to roll this out quickly. It's technically challenging from an algorithmic point of view. Doing this right was a big challenge, but it has gone pretty well.

Speaker Change: Yes, so this has been a process we started last year and it was a

Speaker Change: and appreciated change from all and most advertising partners, big ones, small ones, because it simplifies our marketplace, it makes bidding more simple, there are bidding algorithms that work on second price auction and other performance marketing channels.

Johannes Thomas: They're bidding algorithms that work on second-price auction and other performance marketing channels. So the feedback in the process was positive, and there was a strong demand to roll out, roll this out quickly. It's technically challenging from algorithmic doing this right, was a big challenge but has gone pretty well and so the satisfaction on the advertiser side is high and then we want to see positive impact on the search results which we are happy with and the marketplace over time should become more competitive because more players are easier, can easily optimize in our marketplace which should drive a healthy marketplace.

Speaker Change: The feedback in the process was positive and there was...

Robert: a strong demand to roll this out quickly.

Robert: It's, you know, technically challenging from an algorithmic doing this right was a big challenge but has gone pretty well.

Johannes Thomas: And so the satisfaction on the advertiser side is high. And then we want to see a positive impact on the search results, which we are happy with. And the marketplace, over time, should become more competitive because more players are easier to can be more easily optimized in our marketplace, which should drive which should drive a healthy, healthy marketplace.

Robert: and so the satisfaction from the advertiser side.

Robert: is high, and then we want to see positive impact on the search results.

Robert: which we are happy with and the marketplace over time should become more competitive because smaller players are easier to, can easily, more easily optimize in our marketplace.

Robert: which should drive a healthy marketplace.

Robin Harris: That's helpful. One quick follow-up on the broader travel environment, how would you describe user trends so far in July, and to what extent are those trends translating to auction bidding demand?

Speaker Change: Got it. That's helpful. Thank you. And then one quick follow-up. On the broader travel environment, how would you describe user trends so far in July , and to what extent are those trends translating to auction bidding demand?

Robin Harris: This is Robin. We believe that the demand we make solid for the second half of the year, we also expect ABVs to be solid, so this looks healthy. And maybe you are interested in what we saw in two in America: stable ABVs, stable ADRs, lengths of stable, stable. So healthy. Developed Europe, we have stable ABVs but slightly decreased ADRs, but longer lengths of stay. And the rest of the world, we have stable lengths of stay but slightly decreased ADRs, which led to slightly decreased ABVs. Thanks for the call.

Speaker Change: This is Robin. We believe that the demand remained solid for the second half of the year.

Johannes Thomas: We also expect ABVs to be solid, so this looks good.

Speaker Change: We also expect ABVs to be to be solid so this looks healthy.

Speaker Change: Maybe you're interested in what we saw in America, stable ABVs, stable ADRs, length of day was stable.

Speaker Change: So Healthy, Develop Europe , we had stable ABVs, but slightly decreased ADRs, but longer length of stay. And the rest of the world, we had stable length of stay, but slightly decreased ADRs, which led to slightly decreased ABVs.

Naved Khan: Got it. Thanks for that, Collar.

Doug Annett: Here, next question comes from the line of Doug Annett with JP Morgan. Doug, your length now open. The first one, the motivation being recurrent to develop Europe and rest of the world, could you remind us if you're seeing improvement there and how we should think about motivation in both regions going forward and the second year comments about returning to growth in the second half, is this something that will happen regardless of what Google does? The rest of the world was slightly negative; we expected to be positive in the second half of the year.

Speaker Change: Your next question comes from the line of Doug Anmuth with J.P. Morgan. Doug, your line is now open.

Speaker Change: Hey, this is J.L. for Doug. Thanks for taking the questions.

J.L.: First of all, on the motivation thing we currently develop here for the rest of the world. Could you remind us if you're seeing improvement there? And.

J.L.: on how we should think about monetization in both regions going forward. And then secondly, your comments about returning to growth in the second half. Is this something that could happen regardless of what Google does?

Johannes Thomas: The rest of the world was slightly negative; we expected it to be positive in the second half of the year. Developing Europe is challenging.

Johannes Thomas: Develop Europe is challenging because I mentioned this because of the headwinds that we have from Google, softer monetization. We expect that it's getting better, but it will be challenging in the second half of the year. And on Google, maybe I can comment on Google. We don't see increasing headwind; rather, softening in the course of the year. We expect some volatility. I think overall it's also important to understand they have become less relevant in overall revenue mix. So the volatility will have also less impact on our business moving forward. So, regardless of what Google is doing, drastic change will impact us.

Speaker Change: Because I mentioned this, because of the headwinds that we have from Google, software monetization, we expect that it's getting better.

Speaker Change: but it will be challenging in the second half of the year.

Speaker Change: And on Google, maybe I can comment on Google.

Speaker Change: We don't see increasing headwinds, rather softening in the course of the year. We expect some volatility. I think overall it's also important to understand they have become less relevant in our overall revenue mix.

Speaker Change: So the volatility will have also less impact on our business moving forward.

Speaker Change: So, regardless of what, you know, if Google is doing drastic change, it will impact us.

Johannes Thomas: We think the most drastic changes are behind us. And we are adapting to the formats; we are improving; we are improving those formats as well.

Speaker Change: We think the most drastic changes are behind us and we are adapting to the formats, we are improving those formats as well and we think that we are very confident that we are on a good track to return to growth in the second half of the year.

Johannes Thomas: And we think that we are very confident that we are on a good track to return to growth in the second half of the year.

Speaker Change: Great, thank you.

James Lee: Again, if you would like to ask a question, first part in the number one on your telephone keypad. Your next question from the line of James Lee, with Miso. James, your line is now open. Great, thanks for taking my question. I have a couple questions here. I'm sorry, I don't want to call a little bit lazy on college; I have questions for you to hear.

Operator: Again, if you would like to ask a question, press star then the number one on your telephone keypad.

Speaker Change: Again, if you would like to ask a question, press star then the number 1 on your telephone keypad.

Speaker Change: Your next question is from the line James Lee with Mizzou. James, your line is now open.

James Lee: Great. Thanks for taking my questions. A couple of questions here.

James Lee: Can you maybe start talking about the rationale for investment for how we're still, you know, what are the use cases for the company and can you talk about what you're hoping to achieve with this technology. And also secondly, increase geopolitics tension in Middle East, any impact on booking that you see and develop Europe, thank you. So let me comment on Holisto. I think our rationale is user experience. If we improve conversion, that translates into higher quality of leads, and that translates into higher willingness to pay fairly for our leads. And if we are able to lift conversion for our advertising partners, they are able to compete more in our auction, and the more people we have, the more advertisers we have competing in our auction, the more healthier it is.

James Lee: I'm sorry, I joined the call a little bit late, so I apologize for the question to repeat it here. Can you maybe start to talk about the rationale for investments for Holystow? You know, what are some of the key use cases for the company?

Speaker Change: And can you talk about what you're hoping to achieve with this technology? And also, secondly, increased geopolitical tension in Middle East, any impact on bookings that you're seeing in developed Europe ? Thank you.

Johannes Thomas: So let me comment on Holisto. I think our rationale is user experience. If we improve conversion, that translates into higher quality leads, and that translates into a higher willingness to pay fairly for our leads. And if we are able to lift conversion for our advertising partners, they are able to compete more in our auction. And the more people we have, the more advertisers we have competing in our auction, the more healthy it is. So, on the one hand, that is rational.

Speaker Change: So let me comment on Holisto. I think our rationale is user experience.

Speaker Change: If we improve conversion, that translates into higher quality of leads and that translates into higher willingness to pay fairly for our leads.

Speaker Change: And if we are able to lift conversion for our advertising partners, they are able to compete more in our auction. And the more people we have, the more advertisers we have competing in our auction, the more healthy it is.

Johannes Thomas: So, on the one side, that is irrational, and then this better conversion is the best proxy for user satisfaction. So if we drive higher satisfaction, of course, our core users that has a higher implication for returning. So lifting retention is an aspect that also should drive growth moving forward. So it's a marketplace aspect to drive diversity, make more advertisers competitive in our auction, and then better conversion and better user experience leading to more satisfaction and higher retention.

Johannes Thomas: And then this better conversion is the best proxy for user satisfaction. So if we drive higher satisfaction across our core users, that has a higher implication for returning users. So lifting retention is an aspect that also should drive growth moving forward. So it's a marketplace aspect to drive diversity, make more advertisers competitive in our auction, and then better conversion, and a better user experience, leading to more satisfaction and higher retention. Hi James, this is Robin.

Speaker Change: So, on the one side, that is rational, and then this better conversion is the best proxy for user satisfaction.

Speaker Change: So, if we drive higher satisfaction across our core users.

Speaker Change: that has a high implication for returning. So lifting retention is an aspect that also should drive growth moving forward.

Speaker Change: So it's a marketplace aspect to drive diversity, make more advertisers competitive in our auction, and then a better conversion, a better user experience, leading to more satisfaction and higher retention.

Robin Harris: Hi James, this is Robin. Not sure if I fully got your second question, so did you ask if we see a negative impact of the developments in the Middle East? Yes, yes, okay. So there are certainly impacts, but it's not significant from what we see because the top markets, the other markets in the rest of the world segment.

Robin: Not sure if I fully understood your second question. So did you ask if we see a negative impact of developments in the Middle East? Yes. There are certainly impacts, but they're not significant from what we see because the top markets are the markets in the rest of the world segment, and there was also something I think related to developing Europe, so can you repeat it please?

Speaker Change: Hi James, this is Robin. Not sure if I fully got your second question, so did you ask if we see negative impacts of the developments in the Middle East?

Naved Khan: Great, thanks.

Naved Khan: Great, thanks so much.

Speaker Change: [inaudible]

James Lee: Yep, okay, so

Speaker Change: There are certainly impacts, but it's not significant from what we see because the top markets are the markets in the rest of the world segment.

Robin Harris: And there was also something related to develop Europe, so can we repeat it please? No, no, that was exactly the question: the increased real political tension in the Middle East, how that impacts Europe's focus and that question. Thank you so much.

Speaker Change: And there was also something I think related to develop Europe , so can you repeat it please?

James Lee: No, no, that was exactly the question, to increase geopolitical tension in the Middle East, how that impacts Europe's bookings, so you answered that question, thank you so much. So Robin, if I can ask one more question here.

Robin Harris: So Robin, if I can ask one more question here, you guys talking about shifting trends, spending and the past, can you share about the progress you've made so far and anything that gives you a confidence of campaigning moving forward is marketing strategy, thank you. Sure, so we started the new campaigns in the end of last year, and then we have been increasing the investments. With our investments, we followed seasonality, so the summer season is important for us. This is where we see the highest demand; this is also where we invest most of our budget, and this is also where we expect the highest revenues. The summer season is important; we are investing, we keep increasing the investments.

Robin: You guys talking about, you know, shifting to grant spending in the past, and can you share about maybe the progress you've made so far, and anything that gives you confidence to continue moving forward this marketing strategy? Thanks.

James Lee: Sure.

Robin: So, we started the new campaigns in the end of last year, and then we have been increasing the investments, and with our investments we follow seasonality, so the summer season is important for us, this is where we see the highest demand, this is also where we invest most of our budget, and this is also where we expect the highest revenues.

James Lee: The summer season is important, we are investing, we keep increasing the investment.

Robin Harris: As we said, we saw in Q2, we saw branded revenue growth in all three segments. I guess this is good news, and we keep investing. We keep optimizing brand marketing; it is not easy, it's complex, so you have to—there are several drivers you have to measure, you have to understand it, you have to improve it. But we are happy about the developments in Q2; we keep investing and we move forward step by step.

James Lee: As we said, we saw in Q2, we saw branded revenue growth in all three segments. This is, I guess, this is good news. And we keep investing, we keep optimizing.

James Lee: Brand marketing is not easy, it's complex, so you have to, there are several drivers, you have to measure it, you have to understand it, you have to improve it, so negotiations are important, the spots are important.

James Lee: And then it's a test and learn approach, but we are happy about the developments in Q2. We keep investing and we move forward step by step.

Johannes Thomas: And in terms of confidence, this Johannes maybe I can add, so we comparing what and in what channels we invested pretty pandemic and we are certainly testing the health of these channels, and we see substantial upside potential and investing more in certain channels. And that gives us the confidence that there's growth opportunity in brand marketing activities. And we also see the positive effects of our brand marketing investment in terms of higher booking conversions, higher quality of leads to advertisers. So this traffic really has as high quality, and this will anticipate that this will have a positive impact also on our monetization over time.

James Lee: And in terms of confidence, this Johannes, maybe I can add, so we're comparing what and in what channels we invested pre-pandemic.

Johannes: and we are certainly testing the health of these channels and we see substantial upside potential in investing more in certain channels and that gives us the confidence that there's growth opportunity in in brand marketing activities.

Speaker Change: And we also see the positive effects of our brand marketing investment in terms of higher booking conversions, higher quality of leads to our advertisers. So the traffic really has high quality and we anticipate that this will have a positive impact also on our monetization.

James Lee: Great, thanks so much.

Speaker Change: Over to you.

Speaker Change: Great. Thanks so much.

Johannes Thomas: There are no further questions at this time. I will not turn the conference back over to Johannes Johannes.

Speaker Change: There are no further questions at this time. I will now turn the conference back over to Johannes. Johannes?

Operator: Thank you all for joining our earnings call today. We appreciate your time and interest in our company. We look forward to updating you on our progress and results in the next call. Thank you.

Johannes: Thank you all for joining our earnings call today. We appreciate your time and interest in our company. We look forward to updating you on our progress and results in the next call. Thank you.

Operator: This concludes today's conference call; you may now disconnect.

Operator: This concludes today's conference call. You may now disconnect.

Speaker Change: This concludes today's conference call.

Speaker Change: A question for the audience. Is it a gift or a curse? It's a gift. A gift. A curse. A curse. A curse. A curse. A curse. A curse. A curse. A curse. A curse.