Trivago: no acquisition policy and +68% revenue

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simone puorto - Axel Hefer Trivago

Trivago is very content with its own brand and despite having $240 million in cash on hand, the hotel-search site isn’t planning on making big acquisitions anytime soon.

That’s the word from Trivago Chief Financial Officer Axel Hefer: “From our perspective one of the key reasons for our success is that we are extremely focused,” Hefer said, adding that a large acquisition might dilute the company’s focus. 
“What would you really get?” he asked rhetorically during an interview. “We would get or we would buy a competitor: We would get a brand that we don’t want because we already have a brand and we like the brand. You would get a technology that is different and probably not as good and focused as ours has been".

Hefer said Trivago isn’t against doing acquisitions when they would speed things up on the technology front. In fact, in 2015 Trivago acquired a 52.3% stake in property management system Base7booking for about $2.3 million.

“If we can find technology that is on our roadmap anyway and we can get it much cheaper but faster — I think faster is the key motivation — then we would consider that.”

So that’s the strategy for now: Trivago will do smallish, tack-on technology acquisitions, but don’t look for huge buys of metasearch competitors to spur growth because they would be too complicated.

Besides, with a 68% revenue jump in the first quarter of 2017, Trivago’s top line — responding to its bevy of TV advertising — is expanding at a very nice clip anyway.