What happened

Shares of hotel search platform Trivago N.V. (NASDAQ:TRVG) fell as much as 22.4% on Friday following the company's second-quarter earnings release. The stock is down about 22% at the time of this writing.

So what

The stock's sell-off comes as the company swung to a loss in its second quarter.

Trivago reported revenue of 298.3 million euros ($354 million), up 67% year over year. But its net loss for the quarter was 3.4 million euros. While this was an improvement from a net loss of 49.9 million euros in the second quarter of 2016, it was worse than Trivago's net income of 7.7 million euros in the first quarter of 2017.

Chalkboard sketch of a chart showing a stock price falling

Image source: Getty Images.

Analysts were expecting Trivago to report net earnings per share of about 0.02 euros, but Trivago instead reported a net loss of about 0.01 euros per share.

Now what

Trivago expects its revenue growth to decelerate significantly in the next few quarters. Despite revenue increasing 68% and 67% year over year in its first and second quarters of 2017, respectively, management maintained its guidance for full-year year-over-year revenue growth of 50% in 2017. 

Furthermore, management expects only a slight improvement in its EBITDA margin, when adjusted for share-based compensation, in 2017 versus 2016.

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