- Trivago reported its first earnings since splitting with Expedia in December.
Though Trivago (TRVG) reported fourth-quarter 2016 results that were a hair below forecasts, the newly spun-out hotel booking site posted bullish numbers for the coming year that caused a short-lived rally on Friday.
Trivago broke even in the quarter, while Wall Street expected a profit of once cent per share. Revenues of EUR 169.2 million were EUR 400 million below forecasts. However, the company said it expects 2017 sales to grow 45 percent, which would expand the top line from nearly EUR 755 million around EUR 1.1 billion ($1.2 billion).
Even with Priceline (PCLN) , Alphabet's (GOOGL) Google and others crowding the market, Trivago founder and CEO Rolf Schromgens said travel meta-search, in which companies scour travel sites for travel deals, is still a growing field.
Shares of Trivago, which compares deals on more than 200 web sites to find hotel bargains, gained more than 4% on Friday morning but closed down 1% at $12.85.
The report was Trivago's first since its split from Expedia (EXPE) through a $287 million IPO in December.
"The was not the idea of the spin to be more independent," Schromgens said. Expedia, which acquired a controlling stake in Trivago in 2013 for $632 million, remains an investor.
Expedia, which has a nearly $18 billion market cap and $8.8 billion in sales, grows through acquisitions such as the $3.9 billion purchase of HomeAway in November, in the weeks before the Trivago split. Other properties include digital travel agencies Orbitz and Travelocity and European hotel booking site Venere.com.
TripAdvisor (TRIP) is investing $200 million in its brand, according to forecasts from Cowen and Co.
Meanwhile, Priceline is buying metasearch company Momondo for $550 million.
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