Good day, ladies and gentlemen. Thank you for standing by, and welcome to trivago's Second Quarter Earnings Call 2025. [Operator Instructions] I must advise you the call is being recorded today, Wednesday, the 6th of August 2025. We are pleased to be joined on the call today by Johannes Thomas, trivago's CEO and Managing Director; and Wolf Schmuhl, trivago's CFO and Managing Director. The following discussion, including responses to your questions, reflects management's views as of Tuesday, August 5, 2025, only, unless expressly stated otherwise. In which case, it reflects management's reviews as of today, Wednesday, August 6, 2025 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. Please refer to the second quarter 2025 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. You will find reconciliations of non-GAAP measures to the most comparable GAAP measures discussed today in trivago's operating and financial review, which is posted on trivago's 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 on the call will be against results for the comparable period of 2024. With that, let me turn the call over to Johannes.

Thank you, everyone, for joining us on our Q2 2025 earnings call. I'm pleased to report strong financial performance with 17% revenue growth year-over-year, marking our third consecutive quarter of growth and second consecutive quarter of double-digit growth across all segments. Geographic performance was robust across all regions, with Rest of the World leading at 32% year-over- year growth, followed by Developed Europe at 20% and Americas at 10%. We achieved this accelerated growth despite FX headwinds and while slightly improving adjusted EBITDA year-over-year. These results demonstrate that our strategic initiatives are working. Our brand marketing investments are driving returns. Our product improvements are converting users and our teams are executing diligently across the organization. I'm pleased to provide you with an update on each of our 3 strategic focus areas. Please have a look at our investor presentation, which illustrates the core topics I'm highlighting. Our first strategic priority is brand marketing through which we continue to elevate our globally recognized brand. We are committed to further expanding brand marketing investments and continuously improving its efficiency. As we entered the summer travel season, our branded traffic remained a key driver for our growth in Q2. We experienced double-digit branded revenue growth across all geographic segments. This success was a result of our multiyear investment strategy, continued optimization and the rollout of our new brand marketing campaign in May 2025. Our global AI-powered campaign features legendary soccer coach, Jürgen Klopp, and our local campaigns in Japan, Brazil and Germany followed localized strategies to maximize impact. We expect this success to elevate our branded visitor baseline for the rest of the year and beyond, showcasing compounding effects of our brand marketing investments. Our second strategic priority is to enhance our core hotel search experience. We empower travelers to book with confidence…

Thank you, Johannes, and good morning, everyone. We are thrilled to report that the second quarter of 2025 was a successful one for trivago and marks yet another strong performance. We achieved a 17% year-over-year increase in total revenue and an 18% increase in referral revenue, which was driven by sustained branded traffic growth while maintaining a stable return on advertising spend. This reaffirms the effectiveness of our marketing strategy. Despite economic uncertainties and foreign exchange-related headwinds, we remain confident about our outlook. Therefore, continue to expect mid-teens percentage revenue growth for the full year of 2025 and a positive adjusted EBITDA similar to last year's level. We identify numerous attractive opportunities to further scale our brand marketing investments and expand our business. We are excited to have reached 20% of referral revenue from logged-in users, underscoring our progress in fostering user loyalty and engagement. Now let's review our second quarter results and our 2025 outlook. Unless otherwise indicated, all comparisons for 2025 are on a year-over-year basis. In the second quarter, our total revenue reached EUR 139.3 million, representing a 17% increase compared to the same period in 2024. We are pleased to note this marks our third consecutive quarter of growth. We experienced yet another quarter of strong year-over-year double-digit growth across all 3 reporting segments with referral revenues growing 32% in Rest of World, 20% in Developed Europe and 10% in Americas. This growth was primarily driven by increased branded channel traffic in response to our ongoing brand marketing investments as well as product improvements, enhancing our booking conversion. During the second quarter, we reported a net loss of EUR 6.5 million. We achieved a better-than-expected adjusted EBITDA loss of EUR 5.1 million, similar to our 2024 performance. We saw negative adjusted EBITDA in the first and…

[Operator Instructions] And our first question comes from the line of Naved Khan with B. Riley Securities.

Maybe a couple of questions from me. Just maybe on the currency since you guys report in euros. Can you quantify for us how much of a headwind currency was for the second quarter results? And in your guidance, what's the effect of FX? And then the second question I have is around the branded investments that you're making. How much of a growth runway do you see here to continue to increase your brand investments to drive branded traffic?

Naved, thanks for your questions. So first, on the FX-related topic. For the second quarter, the FX effect was a strong headwind for us, affecting our top line by approximately minus 3%. Yes, that was -- yes. Regarding our segment Americas, the headwind was even stronger there. We received a headwind of around minus 7%. That's on the FX effect. Related to your question on brand investment. We -- so at the moment, we had -- we see in our numbers, a 22% spend increase year-on-year and an 18% referral revenue increase by only a slight increase in ROAS, which means that our brand strategy already works effectively. And if you consider that -- yes, we have increased our brand spend also in this quarter very significantly, then it makes sure how effective it already works and how compounding effects already kicked in. And in our last earnings call, we already highlighted that in 2024, we only invested 50% of the brand marketing that we invested in 2019. And this gives further strong indication on the upside potential we see in all regions. Hope this answers the question.

And then maybe just going back to the FX, what's the impact of FX for the full year? Do you have that?

So it's -- this question is tough to answer. We haven't currently factored it in. Yes, but we remain with our guidance. So it's -- we stay with mid-teens double-digit growth.

And our next question comes from the line of Douglas Anmuth with JPMorgan.

Great. This is Dae Lee on for Doug. I have 2. First one on logged in users. Wondering what kind of differences you see in them versus logged out users? And how are you encouraging more users to log in? And then with regards to your 3Q guide, I wanted to get some clarity around like what's giving you confidence that revenue growth will accelerate from single-digit percent that you saw in July for the quarter to grow double-digit percent.

Thank you for your question. I think on the member side, so it was a strong focus for the last 2 years. Particularly last year, we've put more focus on it. So on the one side, we offer features like sharing functionalities with friends or with -- or price alerts and on the other hand, we work with partners to deliver us unique deals that are exclusively available to our members, which is a key driver. If you go to the investor presentation, you will find a slide where we demonstrate that. We have basically call to actions on our website where you can see how we are doing that in particular. Often, we show a rate that's exclusive. You don't -- you cannot click on it unless you log in. That has been quite effective. And then generally, messaging, if you log in, you get better deals, has worked pretty well. We wanted to achieve 20% that's super substantial where we have our core user base, which we think it's between 20% and 40% of users that we really want to build a stronger connection to. And we see with those 20% that conversion rates are 25% up. This shows you they are more qualified and they are more savvy on trivago, how to use trivago and convert much better. So we will continue with that effort. I think it's important that we keep people on our side and make them loyal through ways that make them more excited about trivago. And so far, it has worked pretty well. We continue seeing a positive trajectory on that, and we'll emphasize our efforts on that. And then the July, I think very good question. There is -- overall, there's FX effects that also hit July. That's probably important to say.…

And our next question comes from the line of Ron Josey with Citi.

This is Robert on for Ron. My first one is on Book & Go. You mentioned that it's already driving a substantial improvement in conversion rates for some of these pilot partners. But can you maybe elaborate on the early learnings from those partnerships and then talk to the steps required to continue growing this product over the next few quarters here?

Yes. Thank you, Robert for asking the question. I think for us, it was a main reason why we called the option we had on Holisto half a year earlier than anticipated was that the partnership has gone pretty well. They have put the technology in place to not only operate Book & Go for their own brands, but allow other partners to join this. And we have started partnerships in the last 4 months, expanded them, and we see very significant double-digit conversion improvements for those partners who are joining that product that makes them more competitive on our marketplace because if conversion rate is up, you can bid more aggressively in our marketplace. That is working out with several partners, and we were excited to see that. And that was a base hypothesis we wanted to validate before calling the option. That has been reconfirmed in the course of the quarter, and we have expanded Book & Go's visibility through Project Trinity on the platform as well. So you can see now Book & Go is highlighted with a logo and it will with more partners, which we expect to onboard. All major partners that you can think about non-branded players, people, partners, booking sites that don't have a brand in a certain market. Those we highly recommend to join Book & Go because conversion rates are higher if you basically leverage our brand. And that's what we have seen working and we'll continue to execute on. We have pretty broad consensus. Partners want to join. We are just having lots of partners in the pipeline, and we'll work on one after the other and expect good traction in the product in the course of the year.

Got it. That's helpful. And then it was great to see continued impressive results from the Rest of World segment and positive returns from brand investments. But can you maybe double-click on what's driving the outsized growth here? And what the main drivers are beyond branded channel traffic?

Rest of the world? You mean in Rest of the World?

Correct. Yes, Rest of the World.

The Rest of the World, I think overall, what you can see markets like Japan and Turkey are working very well for us. And there is -- mostly it's a branded game where we are -- just have low brand awareness, where it's quite a greenfield, and we have a strong value proposition. In those markets, there's less, let's say, concentration in terms of how many booking sites are active on these markets. So the reason why you would compare are even stronger in those markets. And I think that resonates with users along with there's just a lot of potential to grow our user base because there's lots of people that don't know us yet. And that has since 2 years now, delivered strong growth rates. And we think -- I mean, at some point, these growth rates will come down, but we still see plenty of room to grow in these markets.

And with no further questions in queue, I will now turn the call back to Johannes for closing remarks.

Last quarter marks another milestone on our turnaround journey. Our strong financial performance validates our strategic focus on brand marketing, product innovation and partner empowerment. With the successful acquisition of Holisto and the expansion of trivago Book & Go, we are laying an important foundation for future growth. And thank you for your continued trust and support. We look forward to updating you on our progress in the coming quarters.

Thank you again for joining us today. This does conclude today's conference call. You may now disconnect.