Expedia Group Reports Second Quarter 2022 Results
Expedia Group (NASDAQ: EXPE) reported strong Q2 2022 results, achieving record lodging bookings and the highest second-quarter revenue of $3.2 billion, reflecting a 51% year-over-year increase. Adjusted EBITDA rose 14% to $648 million, while gross bookings surged 26% to $26.1 billion. Notably, the company reported a net loss of $185 million but improved adjusted net income to $310 million. Despite macroeconomic uncertainties, travel demand remains robust, reinforcing the group's focus on enhancing technology and building direct customer relationships.
- Record lodging bookings and highest ever Q2 revenue at $3.2 billion.
- Gross bookings up 26% year-over-year to $26.1 billion.
- Adjusted EBITDA increased 14% to $648 million.
- Net loss of $185 million despite adjusted net income of $310 million.
- Free cash flow decreased by 37% to $1.5 billion compared to the previous year.
“We are very pleased with our financial performance this quarter. Lodging bookings reached a record high, and we posted our highest ever second quarter revenue and adjusted EBITDA. These were even more noteworthy given the simplification efforts we undertook two years ago including the sale of our Egencia corporate travel business.” said
Key Highlights
- Lodging bookings were the highest in the company's history, while revenue and adjusted EBITDA were the highest for any second quarter.
-
Lodging gross bookings were up
8% versus the second quarter 2019. -
Revenue was
$3.2 billion 51% versus the second quarter 2021 and up1% versus the second quarter 2019. -
Net loss was
$185 million $310 million $648 million 14% versus the second quarter 2019. -
On
May 30 th, the Company completed the early redemption of its$500 million December 2023 . OnJune 13 th, the Company completed the early redemption of its$500 million August 2024 . SinceMay 2021 , the Company has repaid over$2.9 billion
Financial Summary & Operating Metrics ($ millions except per share amounts)(1)
|
|
||
Metric |
Q2 2022 |
Q2 2021 |
Δ Y/Y |
Booked room nights |
82.5 |
68.4 |
|
Stayed room nights |
79.1 |
56.6 |
|
Gross bookings |
|
|
|
Revenue |
3,181 |
2,111 |
|
Operating income (loss) |
345 |
(132) |
NM |
Net income (loss) attributable to |
(185) |
(301) |
(39)% |
Diluted earnings (loss) per share |
|
|
(42)% |
Adjusted EBITDA(2) |
648 |
201 |
|
Adjusted net income (loss)(2) |
310 |
(169) |
NM |
Adjusted EPS(2) |
|
|
NM |
Free cash flow(2) |
1,469 |
2,331 |
(37)% |
(1)All comparisons are against comparable period of 2021 unless otherwise noted.
(2)"Adjusted EBITDA" (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization), "Adjusted net income (loss)," "Adjusted EPS" and "Free cash flow" are non-GAAP measures as defined by the
Discussion of Results
The results for
Gross Bookings & Revenue
Gross Bookings & Revenue by Segment ($ millions) |
||||||||||
|
Gross Bookings |
|||||||||
|
Second Quarter |
|||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Δ% |
|
Gross Bookings |
$ |
26,139 |
|
|
$ |
20,815 |
|
|
26 |
% |
|
|
|
|
|
|
|||||
|
Revenue |
|||||||||
|
Second Quarter |
|||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Δ% |
|
Retail |
$ |
2,420 |
|
|
$ |
1,715 |
|
|
41 |
% |
B2B |
|
650 |
|
|
|
305 |
|
|
113 |
% |
|
$ |
3,070 |
|
|
$ |
2,020 |
|
|
52 |
% |
trivago |
|
154 |
|
|
|
115 |
|
|
34 |
% |
Intercompany eliminations |
|
(43 |
) |
|
|
(24 |
) |
|
76 |
% |
Total |
$ |
3,181 |
|
|
$ |
2,111 |
|
|
51 |
% |
For the second quarter of 2022, total gross bookings increased
Total revenue increased
Product & Services Detail
Revenue by Service Type ($ millions) |
||||||||
|
Revenue |
|||||||
|
Second Quarter |
|||||||
|
|
2022 |
|
|
2021 |
|
Δ% |
|
Lodging |
$ |
2,400 |
|
$ |
1,533 |
|
57 |
% |
Air |
|
95 |
|
|
78 |
|
22 |
% |
Advertising and media |
|
213 |
|
|
161 |
|
33 |
% |
Other |
|
473 |
|
|
339 |
|
39 |
% |
Total |
$ |
3,181 |
|
$ |
2,111 |
|
51 |
% |
As a percentage of total revenue in the second quarter of 2022, lodging accounted for
Lodging revenue increased
Air revenue increased
Advertising and media revenue increased
Costs and Expenses ($ millions) |
||||||||||||||||||
|
Costs and Expenses |
|
|
As a % of Revenue |
||||||||||||||
|
Second Quarter |
|
|
Second Quarter |
||||||||||||||
|
|
2022 |
|
|
2021 |
|
Δ% |
|
|
2022 |
|
|
2021 |
|
|
Δ (bps) |
||
Generally Accepted Accounting Principles (GAAP) Expenses - |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenue |
$ |
419 |
|
$ |
374 |
|
12 |
% |
|
|
13.2 |
% |
|
17.7 |
% |
|
(456 |
) |
Selling and marketing - direct |
|
1,549 |
|
|
1,002 |
|
55 |
% |
|
|
48.7 |
% |
|
47.5 |
% |
|
122 |
|
Selling and marketing - indirect |
|
167 |
|
|
197 |
|
(15 |
)% |
|
|
5.3 |
% |
|
9.4 |
% |
|
(409 |
) |
Selling and marketing |
|
1,716 |
|
|
1,199 |
|
43 |
% |
|
|
53.9 |
% |
|
56.8 |
% |
|
(287 |
) |
Technology and content |
|
284 |
|
|
276 |
|
3 |
% |
|
|
8.9 |
% |
|
13.1 |
% |
|
(417 |
) |
General and administrative |
|
189 |
|
|
184 |
|
3 |
% |
|
|
6.0 |
% |
|
8.7 |
% |
|
(275 |
) |
Total GAAP costs and expenses |
$ |
2,608 |
|
$ |
2,033 |
|
28 |
% |
|
|
82.0 |
% |
|
96.3 |
% |
|
(1,434 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted Expenses - |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenue* |
$ |
416 |
|
$ |
368 |
|
13 |
% |
|
|
13.1 |
% |
|
17.4 |
% |
|
(437 |
) |
Selling and marketing - direct |
|
1,549 |
|
|
1,002 |
|
55 |
% |
|
|
48.7 |
% |
|
47.5 |
% |
|
122 |
|
Selling and marketing - indirect* |
|
150 |
|
|
165 |
|
(9 |
)% |
|
|
4.7 |
% |
|
7.8 |
% |
|
(310 |
) |
Selling and marketing* |
|
1,699 |
|
|
1,167 |
|
46 |
% |
|
|
53.4 |
% |
|
55.3 |
% |
|
(187 |
) |
Technology and content* |
|
257 |
|
|
244 |
|
5 |
% |
|
|
8.1 |
% |
|
11.6 |
% |
|
(351 |
) |
General and administrative* |
|
143 |
|
|
134 |
|
7 |
% |
|
|
4.5 |
% |
|
6.4 |
% |
|
(185 |
) |
Total adjusted costs and expenses |
$ |
2,515 |
|
$ |
1,913 |
|
31 |
% |
|
|
79.1 |
% |
|
90.7 |
% |
|
(1,161 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted Expenses - |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenue* |
$ |
412 |
|
$ |
364 |
|
13 |
% |
|
|
13.4 |
% |
|
18.0 |
% |
|
(461 |
) |
Selling and marketing* |
|
1,646 |
|
|
1,107 |
|
49 |
% |
|
|
53.6 |
% |
|
54.8 |
% |
|
(119 |
) |
Technology and content* |
|
245 |
|
|
231 |
|
6 |
% |
|
|
8.0 |
% |
|
11.4 |
% |
|
(347 |
) |
General and administrative* |
|
135 |
|
|
126 |
|
7 |
% |
|
|
4.4 |
% |
|
6.3 |
% |
|
(186 |
) |
Total adjusted costs and expenses excluding trivago |
$ |
2,438 |
|
$ |
1,828 |
|
33 |
% |
|
|
79.4 |
% |
|
90.5 |
% |
|
(1,113 |
) |
Note: Some numbers may not add due to rounding.
*Adjusted expenses are non-GAAP measures. See pages 11-18 herein for a description and reconciliation to the corresponding GAAP measures.
**
Cost of Revenue
-
For the second quarter of 2022, total GAAP and adjusted cost of revenue increased
12% and13% , respectively, compared to the second quarter of 2021, driven by higher merchant processing fees, customer service costs, and cloud costs as a result of increased transaction volume which offset lower personnel costs related to the sale of Egencia inNovember 2021 .
Selling and Marketing
-
For the second quarter of 2022, total GAAP and adjusted selling and marketing expense increased
43% and46% , respectively, compared to the second quarter of 2021, primarily due to a$547 million 15% and9% , respectively compared to the second quarter of 2021. The decrease in indirect marketing expense was driven by lower personnel costs related to the sale of Egencia inNovember 2021 .
Technology and Content
-
For the second quarter of 2022, total GAAP and adjusted technology and content expense increased
3% and5% , respectively, compared to the second quarter of 2021, due to an increase in personnel costs. The year-over-year increase in GAAP technology and content expense was offset by lower stock-based compensation.
General and Administrative
-
For the second quarter of 2022, total GAAP and adjusted general and administrative expense increased
3% and7% , respectively, compared to the second quarter of 2021, due to an increase in personnel costs. The year-over-year increase in GAAP general and administrative expense was offset by lower stock-based compensation.
Net Income (Loss) Attributable to
Adjusted EBITDA by Segment ($ millions) |
||||||||||
|
Second Quarter |
|||||||||
|
|
2022 |
|
|
|
2021 |
|
|
Δ% |
|
Retail |
$ |
582 |
|
|
$ |
316 |
|
|
84 |
% |
B2B |
|
156 |
|
|
|
(4 |
) |
|
NM |
|
Unallocated overhead costs |
|
(123 |
) |
|
|
(116 |
) |
|
6 |
% |
|
$ |
615 |
|
|
$ |
196 |
|
|
215 |
% |
trivago(1) |
|
33 |
|
|
|
5 |
|
|
534 |
% |
Total Adjusted EBITDA |
$ |
648 |
|
|
$ |
201 |
|
|
223 |
% |
|
|
|
|
|
|
|||||
Net loss attributable to |
$ |
(185 |
) |
|
$ |
(301 |
) |
|
(39 |
)% |
(1) trivago is a separately listed company on the Nasdaq Global Select Market and, therefore, is subject to its own reporting and filing requirements which could result in possible differences that are not expected to be material to
(2)
* Adjusted EBITDA is a non-GAAP measure. See pages 11-19 herein for a description and reconciliation to the corresponding GAAP measures.
Note: Some numbers may not add due to rounding.
Depreciation and Amortization
Depreciation and amortization decreased
Interest and Other
Consolidated interest income increased
Consolidated other, net was a loss of
Income Taxes
The GAAP effective tax rate was a
The effective tax rate on pretax adjusted net income was
Balance Sheet, Cash Flows and Capitalization
For the three months ended
Cash, cash equivalents and short-term investments totaled
Deferred merchant bookings totaled approximately
As of
On
CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data) (Unaudited) |
|||||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
3,181 |
|
|
$ |
2,111 |
|
|
$ |
5,430 |
|
|
$ |
3,357 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1) |
|
419 |
|
|
|
374 |
|
|
|
790 |
|
|
|
685 |
|
Selling and marketing (1) |
|
1,716 |
|
|
|
1,199 |
|
|
|
3,055 |
|
|
|
1,863 |
|
Technology and content (1) |
|
284 |
|
|
|
276 |
|
|
|
554 |
|
|
|
523 |
|
General and administrative (1) |
|
189 |
|
|
|
184 |
|
|
|
375 |
|
|
|
340 |
|
Depreciation and amortization |
|
197 |
|
|
|
205 |
|
|
|
394 |
|
|
|
414 |
|
Impairment of intangible assets |
|
29 |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
Legal reserves, occupancy tax and other |
|
2 |
|
|
|
(8 |
) |
|
|
23 |
|
|
|
(9 |
) |
Restructuring and related reorganization charges |
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
42 |
|
Operating income (loss) |
|
345 |
|
|
|
(132 |
) |
|
|
210 |
|
|
|
(501 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
10 |
|
|
|
1 |
|
|
|
13 |
|
|
|
3 |
|
Interest expense |
|
(73 |
) |
|
|
(83 |
) |
|
|
(154 |
) |
|
|
(181 |
) |
Loss on debt extinguishment |
|
(24 |
) |
|
|
— |
|
|
|
(24 |
) |
|
|
(280 |
) |
Other, net |
|
(385 |
) |
|
|
(10 |
) |
|
|
(380 |
) |
|
|
(15 |
) |
Total other expense, net |
|
(472 |
) |
|
|
(92 |
) |
|
|
(545 |
) |
|
|
(473 |
) |
Loss before income taxes |
|
(127 |
) |
|
|
(224 |
) |
|
|
(335 |
) |
|
|
(974 |
) |
Provision for income taxes |
|
(58 |
) |
|
|
47 |
|
|
|
27 |
|
|
|
216 |
|
Net loss |
|
(185 |
) |
|
|
(177 |
) |
|
|
(308 |
) |
|
|
(758 |
) |
Net loss attributable to non-controlling interests |
|
— |
|
|
|
5 |
|
|
|
1 |
|
|
|
8 |
|
Net loss attributable to |
|
(185 |
) |
|
|
(172 |
) |
|
|
(307 |
) |
|
|
(750 |
) |
Preferred stock dividend |
|
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
(50 |
) |
Loss on redemption of preferred stock |
|
— |
|
|
|
(107 |
) |
|
|
— |
|
|
|
(107 |
) |
Net loss attributable to |
$ |
(185 |
) |
|
$ |
(301 |
) |
|
$ |
(307 |
) |
|
$ |
(907 |
) |
|
|
|
|
|
|
|
|
||||||||
Loss per share attributable to |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(1.17 |
) |
|
$ |
(2.02 |
) |
|
$ |
(1.96 |
) |
|
$ |
(6.16 |
) |
Diluted |
|
(1.17 |
) |
|
|
(2.02 |
) |
|
|
(1.96 |
) |
|
|
(6.16 |
) |
Shares used in computing earnings (loss) per share (000's): |
|
|
|
|
|
|
|
||||||||
Basic |
|
157,290 |
|
|
|
149,093 |
|
|
|
156,831 |
|
|
|
147,148 |
|
Diluted |
|
157,290 |
|
|
|
149,093 |
|
|
|
156,831 |
|
|
|
147,148 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes stock-based compensation as follows: |
|
|
|
|
|
|
|
||||||||
Cost of revenue |
$ |
3 |
|
|
$ |
6 |
|
|
$ |
6 |
|
|
$ |
11 |
|
Selling and marketing |
|
17 |
|
|
|
32 |
|
|
|
32 |
|
|
|
49 |
|
Technology and content |
|
27 |
|
|
|
32 |
|
|
|
54 |
|
|
|
59 |
|
General and administrative |
|
46 |
|
|
|
50 |
|
|
|
91 |
|
|
|
84 |
|
CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
ASSETS |
|||||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
5,568 |
|
|
$ |
4,111 |
|
Restricted cash and cash equivalents |
|
2,756 |
|
|
|
1,694 |
|
Short-term investments |
|
26 |
|
|
|
200 |
|
Accounts receivable, net of allowance of |
|
2,173 |
|
|
|
1,264 |
|
Income taxes receivable |
|
105 |
|
|
|
85 |
|
Prepaid expenses and other current assets |
|
1,158 |
|
|
|
827 |
|
Total current assets |
|
11,786 |
|
|
|
8,181 |
|
Property and equipment, net |
|
2,163 |
|
|
|
2,180 |
|
Operating lease right-of-use assets |
|
378 |
|
|
|
407 |
|
Long-term investments and other assets |
|
1,151 |
|
|
|
1,450 |
|
Deferred income taxes |
|
825 |
|
|
|
766 |
|
Intangible assets, net |
|
1,306 |
|
|
|
1,393 |
|
|
|
7,135 |
|
|
|
7,171 |
|
TOTAL ASSETS |
$ |
24,744 |
|
|
$ |
21,548 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable, merchant |
$ |
1,548 |
|
|
$ |
1,333 |
|
Accounts payable, other |
|
1,178 |
|
|
|
688 |
|
Deferred merchant bookings |
|
10,041 |
|
|
|
5,688 |
|
Deferred revenue |
|
173 |
|
|
|
166 |
|
Income taxes payable |
|
36 |
|
|
|
16 |
|
Accrued expenses and other current liabilities |
|
861 |
|
|
|
824 |
|
Current maturities of long-term debt |
|
— |
|
|
|
735 |
|
Total current liabilities |
|
13,837 |
|
|
|
9,450 |
|
Long-term debt, excluding current maturities |
|
6,727 |
|
|
|
7,715 |
|
Deferred income taxes |
|
45 |
|
|
|
58 |
|
Operating lease liabilities |
|
334 |
|
|
|
360 |
|
Other long-term liabilities |
|
420 |
|
|
|
413 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock: |
|
— |
|
|
|
— |
|
Shares issued: 276,967 and 274,661; Shares outstanding: 152,024 and 150,125 |
|
|
|
||||
Class B common stock: |
|
— |
|
|
|
— |
|
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523 |
|
|
|
||||
Additional paid-in capital |
|
14,549 |
|
|
|
14,229 |
|
|
|
(10,331 |
) |
|
|
(10,262 |
) |
Retained earnings (deficit) |
|
(2,068 |
) |
|
|
(1,761 |
) |
Accumulated other comprehensive income (loss) |
|
(240 |
) |
|
|
(149 |
) |
|
|
1,910 |
|
|
|
2,057 |
|
Non-redeemable non-controlling interests |
|
1,471 |
|
|
|
1,495 |
|
Total stockholders’ equity |
|
3,381 |
|
|
|
3,552 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
24,744 |
|
|
$ |
21,548 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||||||
|
Six months ended
|
||||||
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
||||
Net loss |
$ |
(308 |
) |
|
$ |
(758 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation of property and equipment, including internal-use software and website development |
|
351 |
|
|
|
361 |
|
Amortization of intangible assets |
|
43 |
|
|
|
53 |
|
Impairment of intangible assets |
|
29 |
|
|
|
— |
|
Amortization of stock-based compensation |
|
183 |
|
|
|
203 |
|
Deferred income taxes |
|
(83 |
) |
|
|
(241 |
) |
Foreign exchange loss on cash, restricted cash and short-term investments, net |
|
109 |
|
|
|
20 |
|
Realized loss on foreign currency forwards |
|
75 |
|
|
|
12 |
|
(Gain) loss on minority equity investments, net |
|
352 |
|
|
|
(4 |
) |
Loss on debt extinguishment |
|
24 |
|
|
|
280 |
|
Other, net |
|
(19 |
) |
|
|
6 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(921 |
) |
|
|
(729 |
) |
Prepaid expenses and other assets |
|
(330 |
) |
|
|
(614 |
) |
Accounts payable, merchant |
|
214 |
|
|
|
556 |
|
Accounts payable, other, accrued expenses and other liabilities |
|
539 |
|
|
|
353 |
|
Tax payable/receivable, net |
|
(1 |
) |
|
|
2 |
|
Deferred merchant bookings |
|
4,354 |
|
|
|
5,184 |
|
Deferred revenue |
|
8 |
|
|
|
— |
|
Net cash provided by operating activities |
|
4,619 |
|
|
|
4,684 |
|
Investing activities: |
|
|
|
||||
Capital expenditures, including internal-use software and website development |
|
(315 |
) |
|
|
(351 |
) |
Purchases of investments |
|
(60 |
) |
|
|
(1 |
) |
Sales and maturities of investments |
|
200 |
|
|
|
12 |
|
Proceeds from initial exchange of cross-currency interest rate swaps |
|
337 |
|
|
|
— |
|
Payments for initial exchange of cross-currency interest rate swaps |
|
(337 |
) |
|
|
— |
|
Other, net |
|
(73 |
) |
|
|
(73 |
) |
Net cash used in investing activities |
|
(248 |
) |
|
|
(413 |
) |
Financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net of issuance costs |
|
— |
|
|
|
1,964 |
|
Payment of long-term debt |
|
(1,724 |
) |
|
|
(1,706 |
) |
Debt extinguishment costs |
|
(20 |
) |
|
|
(258 |
) |
Redemption of preferred stock |
|
— |
|
|
|
(618 |
) |
Purchases of treasury stock |
|
(69 |
) |
|
|
(85 |
) |
Payment of preferred stock dividends |
|
— |
|
|
|
(50 |
) |
Proceeds from exercise of equity awards and employee stock purchase plan |
|
114 |
|
|
|
379 |
|
Other, net |
|
12 |
|
|
|
(4 |
) |
Net cash used in financing activities |
|
(1,687 |
) |
|
|
(378 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents |
|
(165 |
) |
|
|
(26 |
) |
Net increase in cash, cash equivalents and restricted cash and cash equivalents |
|
2,519 |
|
|
|
3,867 |
|
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period |
|
5,805 |
|
|
|
4,138 |
|
Cash, cash equivalents and restricted cash and cash equivalents at end of period |
$ |
8,324 |
|
|
$ |
8,005 |
|
Supplemental cash flow information |
|
|
|
||||
|
$ |
167 |
|
|
$ |
192 |
|
|
|
56 |
|
|
|
16 |
|
Trended Metrics
(All figures in millions)
The supplemental metrics below are intended to supplement the financial statements in this release and in our filings with the
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
Y/Y |
|
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
|
|
Q1 |
Q2 |
|
|
|
Growth |
|
|
|||||||||||||||||||||||||||||
Gross bookings by business model |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Agency |
|
|
$ |
17,352 |
|
$ |
16,112 |
|
$ |
14,585 |
|
$ |
11,956 |
|
|
|
|
$ |
9,823 |
|
$ |
1,363 |
|
$ |
3,530 |
|
$ |
3,405 |
|
|
|
|
$ |
6,737 |
|
$ |
10,362 |
|
$ |
8,855 |
|
$ |
8,325 |
|
|
|
|
$ |
11,346 |
|
$ |
12,773 |
|
|
|
|
23 |
% |
|
|
Merchant |
|
|
|
12,057 |
|
|
12,180 |
|
|
12,342 |
|
|
11,289 |
|
|
|
|
|
8,062 |
|
|
1,350 |
|
|
5,101 |
|
|
4,162 |
|
|
|
|
|
8,685 |
|
|
10,453 |
|
|
9,870 |
|
|
9,138 |
|
|
|
|
|
13,066 |
|
|
13,366 |
|
|
|
|
28 |
% |
|
|
Total |
|
|
$ |
29,409 |
|
$ |
28,292 |
|
$ |
26,927 |
|
$ |
23,245 |
|
|
|
|
$ |
17,885 |
|
$ |
2,713 |
|
$ |
8,631 |
|
$ |
7,567 |
|
|
|
|
$ |
15,422 |
|
$ |
20,815 |
|
$ |
18,725 |
|
$ |
17,463 |
|
|
|
|
$ |
24,412 |
|
$ |
26,139 |
|
|
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Revenue by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Retail |
|
|
$ |
1,901 |
|
$ |
2,333 |
|
$ |
2,613 |
|
$ |
1,961 |
|
|
|
|
$ |
1,582 |
|
$ |
463 |
|
$ |
1,246 |
|
$ |
702 |
|
|
|
|
$ |
1,025 |
|
$ |
1,715 |
|
$ |
2,351 |
|
$ |
1,730 |
|
|
|
|
$ |
1,740 |
|
$ |
2,420 |
|
|
|
|
41 |
% |
|
|
B2B |
|
|
|
556 |
|
|
657 |
|
|
731 |
|
|
635 |
|
|
|
|
|
485 |
|
|
68 |
|
|
203 |
|
|
186 |
|
|
|
|
|
184 |
|
|
305 |
|
|
490 |
|
|
481 |
|
|
|
|
|
432 |
|
|
650 |
|
|
|
|
113 |
% |
|
|
Corporate ( |
|
|
|
— |
|
|
— |
|
|
24 |
|
|
34 |
|
|
|
|
|
39 |
|
|
20 |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
|
|
NM |
|
|
|
|
|
|
$ |
2,457 |
|
$ |
2,990 |
|
$ |
3,368 |
|
$ |
2,630 |
|
|
|
|
$ |
2,106 |
|
$ |
551 |
|
$ |
1,449 |
|
$ |
888 |
|
|
|
|
$ |
1,209 |
|
$ |
2,020 |
|
$ |
2,841 |
|
$ |
2,211 |
|
|
|
|
$ |
2,172 |
|
$ |
3,070 |
|
|
|
|
52 |
% |
|
|
trivago |
|
|
|
237 |
|
|
251 |
|
|
279 |
|
|
171 |
|
|
|
|
|
154 |
|
|
18 |
|
|
70 |
|
|
38 |
|
|
|
|
|
46 |
|
|
115 |
|
|
163 |
|
|
99 |
|
|
|
|
|
116 |
|
|
154 |
|
|
|
|
34 |
% |
|
|
Intercompany eliminations |
|
|
|
(85 |
) |
|
(88 |
) |
|
(89 |
) |
|
(54 |
) |
|
|
|
|
(51 |
) |
|
(3 |
) |
|
(15 |
) |
|
(6 |
) |
|
|
|
|
(9 |
) |
|
(24 |
) |
|
(42 |
) |
|
(31 |
) |
|
|
|
|
(39 |
) |
|
(43 |
) |
|
|
|
76 |
% |
|
|
Total |
|
|
$ |
2,609 |
|
$ |
3,153 |
|
$ |
3,558 |
|
$ |
2,747 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
$ |
2,962 |
|
$ |
2,279 |
|
|
|
|
$ |
2,249 |
|
$ |
3,181 |
|
|
|
|
51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Revenue by geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Domestic* |
|
|
$ |
1,476 |
|
$ |
1,838 |
|
$ |
1,982 |
|
$ |
1,573 |
|
|
|
|
$ |
1,317 |
|
$ |
463 |
|
$ |
1,033 |
|
$ |
698 |
|
|
|
|
$ |
1,001 |
|
$ |
1,736 |
|
$ |
2,177 |
|
$ |
1,655 |
|
|
|
|
$ |
1,656 |
|
$ |
2,208 |
|
|
|
|
27 |
% |
|
|
International* |
|
|
|
1,133 |
|
|
1,315 |
|
|
1,576 |
|
|
1,174 |
|
|
|
|
|
892 |
|
|
103 |
|
|
471 |
|
|
222 |
|
|
|
|
|
245 |
|
|
375 |
|
|
785 |
|
|
624 |
|
|
|
|
|
593 |
|
|
973 |
|
|
|
|
159 |
% |
|
|
Total |
|
|
$ |
2,609 |
|
$ |
3,153 |
|
$ |
3,558 |
|
$ |
2,747 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
$ |
2,962 |
|
$ |
2,279 |
|
|
|
|
$ |
2,249 |
|
$ |
3,181 |
|
|
|
|
51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Revenue by business model |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Agency |
|
|
$ |
842 |
|
$ |
1,047 |
|
$ |
1,177 |
|
$ |
816 |
|
|
|
|
$ |
562 |
|
$ |
105 |
|
$ |
329 |
|
$ |
271 |
|
|
|
|
$ |
323 |
|
$ |
573 |
|
$ |
800 |
|
$ |
611 |
|
|
|
|
$ |
566 |
|
$ |
808 |
|
|
|
|
41 |
% |
|
|
Merchant |
|
|
|
1,435 |
|
|
1,758 |
|
|
1,980 |
|
|
1,590 |
|
|
|
|
|
1,340 |
|
|
368 |
|
|
1,032 |
|
|
521 |
|
|
|
|
|
796 |
|
|
1,338 |
|
|
1,923 |
|
|
1,480 |
|
|
|
|
|
1,485 |
|
|
2,125 |
|
|
|
|
59 |
% |
|
|
Advertising & media and other |
|
|
|
332 |
|
|
348 |
|
|
401 |
|
|
341 |
|
|
|
|
|
307 |
|
|
93 |
|
|
143 |
|
|
128 |
|
|
|
|
|
127 |
|
|
200 |
|
|
239 |
|
|
188 |
|
|
|
|
|
198 |
|
|
248 |
|
|
|
|
24 |
% |
|
|
Total |
|
|
$ |
2,609 |
|
$ |
3,153 |
|
$ |
3,558 |
|
$ |
2,747 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
$ |
2,962 |
|
$ |
2,279 |
|
|
|
|
$ |
2,249 |
|
$ |
3,181 |
|
|
|
|
51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Adjusted EBITDA by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Retail |
|
|
$ |
208 |
|
$ |
561 |
|
$ |
889 |
|
$ |
513 |
|
|
|
|
$ |
36 |
|
$ |
(191 |
) |
$ |
440 |
|
$ |
13 |
|
|
|
|
$ |
106 |
|
$ |
316 |
|
$ |
879 |
|
$ |
481 |
|
|
|
|
$ |
188 |
|
$ |
582 |
|
|
|
|
84 |
% |
|
|
B2B |
|
|
|
79 |
|
|
135 |
|
|
155 |
|
|
101 |
|
|
|
|
|
32 |
|
|
(123 |
) |
|
(47 |
) |
|
(52 |
) |
|
|
|
|
(57 |
) |
|
(4 |
) |
|
74 |
|
|
97 |
|
|
|
|
|
80 |
|
|
156 |
|
|
|
|
NM |
|
|
|
Unallocated overhead costs |
|
|
|
(135 |
) |
|
(148 |
) |
|
(144 |
) |
|
(165 |
) |
|
|
|
|
(143 |
) |
|
(106 |
) |
|
(96 |
) |
|
(117 |
) |
|
|
|
|
(103 |
) |
|
(116 |
) |
|
(116 |
) |
|
(119 |
) |
|
|
|
|
(120 |
) |
|
(123 |
) |
|
|
|
6 |
% |
|
|
|
|
|
$ |
152 |
|
$ |
548 |
|
$ |
900 |
|
$ |
449 |
|
|
|
|
$ |
(75 |
) |
$ |
(420 |
) |
$ |
297 |
|
$ |
(156 |
) |
|
|
|
$ |
(54 |
) |
$ |
196 |
|
$ |
837 |
|
$ |
459 |
|
|
|
|
$ |
148 |
|
$ |
615 |
|
|
|
|
215 |
% |
|
|
trivago |
|
|
|
24 |
|
|
20 |
|
|
12 |
|
|
29 |
|
|
|
|
|
(1 |
) |
|
(16 |
) |
|
7 |
|
|
(4 |
) |
|
|
|
|
(4 |
) |
|
5 |
|
|
18 |
|
|
20 |
|
|
|
|
|
25 |
|
|
33 |
|
|
|
|
534 |
% |
|
|
Total |
|
|
$ |
176 |
|
$ |
568 |
|
$ |
912 |
|
$ |
478 |
|
|
|
|
$ |
(76 |
) |
$ |
(436 |
) |
$ |
304 |
|
$ |
(160 |
) |
|
|
|
$ |
(58 |
) |
$ |
201 |
|
$ |
855 |
|
$ |
479 |
|
|
|
|
$ |
173 |
|
$ |
648 |
|
|
|
|
223 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Net income (loss) attributable to |
|
|
$ |
(103 |
) |
$ |
183 |
|
$ |
409 |
|
$ |
76 |
|
|
|
|
$ |
(1,301 |
) |
$ |
(753 |
) |
$ |
(221 |
) |
$ |
(412 |
) |
|
|
|
$ |
(606 |
) |
$ |
(301 |
) |
$ |
362 |
|
$ |
276 |
|
|
|
|
$ |
(122 |
) |
$ |
(185 |
) |
|
|
|
(39 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Worldwide lodging (merchant & agency) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Booked room nights |
|
|
|
103.9 |
|
|
100.8 |
|
|
101.3 |
|
|
86.3 |
|
|
|
|
|
58.5 |
|
|
12.2 |
|
|
41.1 |
|
|
33.3 |
|
|
|
|
|
54.0 |
|
|
68.4 |
|
|
65.4 |
|
|
59.7 |
|
|
|
|
|
77.0 |
|
|
82.5 |
|
|
|
|
|
|
|
|
Booked room night growth |
|
|
|
9 |
% |
|
10 |
% |
|
11 |
% |
|
9 |
% |
|
|
|
|
(44 |
)% |
|
(88 |
)% |
|
(59 |
)% |
|
(61 |
)% |
|
|
|
|
(8 |
)% |
|
462 |
% |
|
59 |
% |
|
79 |
% |
|
|
|
|
43 |
% |
|
21 |
% |
|
|
|
|
|
|
|
Booked ADR growth |
|
|
|
(2 |
)% |
|
(1 |
)% |
|
— |
% |
|
— |
% |
|
|
|
|
(2 |
)% |
|
(14 |
)% |
|
2 |
% |
|
4 |
% |
|
|
|
|
34 |
% |
|
49 |
% |
|
21 |
% |
|
23 |
% |
|
|
|
|
4 |
% |
|
3 |
% |
|
|
|
|
|
|
|
Stayed room nights |
|
|
|
80.8 |
|
|
100.1 |
|
|
116.5 |
|
|
91.6 |
|
|
|
|
|
69.4 |
|
|
19.2 |
|
|
48.8 |
|
|
36.1 |
|
|
|
|
|
37.1 |
|
|
56.6 |
|
|
77.8 |
|
|
62.9 |
|
|
|
|
|
56.5 |
|
|
79.1 |
|
|
|
|
|
|
|
|
Stayed room night growth |
|
|
|
9 |
% |
|
12 |
% |
|
11 |
% |
|
11 |
% |
|
|
|
|
(14 |
)% |
|
(81 |
)% |
|
(58 |
)% |
|
(61 |
)% |
|
|
|
|
(47 |
)% |
|
196 |
% |
|
59 |
% |
|
74 |
% |
|
|
|
|
52 |
% |
|
40 |
% |
|
|
|
|
|
|
|
Stayed ADR growth |
|
|
|
(1 |
)% |
|
— |
% |
|
(1 |
)% |
|
— |
% |
|
|
|
|
2 |
% |
|
1 |
% |
|
8 |
% |
|
2 |
% |
|
|
|
|
8 |
% |
|
21 |
% |
|
19 |
% |
|
23 |
% |
|
|
|
|
20 |
% |
|
9 |
% |
|
|
|
|
|
|
|
Revenue per night growth |
|
|
|
(2 |
)% |
|
1 |
% |
|
— |
% |
|
(1 |
)% |
|
|
|
|
6 |
% |
|
15 |
% |
|
14 |
% |
|
6 |
% |
|
|
|
|
10 |
% |
|
7 |
% |
|
17 |
% |
|
24 |
% |
|
|
|
|
17 |
% |
|
12 |
% |
|
|
|
|
|
|
|
Lodging revenue growth |
|
|
|
7 |
% |
|
12 |
% |
|
11 |
% |
|
9 |
% |
|
|
|
|
(9 |
)% |
|
(78 |
)% |
|
(52 |
)% |
|
(58 |
)% |
|
|
|
|
(41 |
)% |
|
215 |
% |
|
87 |
% |
|
116 |
% |
|
|
|
|
78 |
% |
|
57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Worldwide air (merchant & agency) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Tickets sold growth |
|
|
|
11 |
% |
|
10 |
% |
|
8 |
% |
|
— |
% |
|
|
|
|
(26 |
)% |
|
(85 |
)% |
|
(74 |
)% |
|
(69 |
)% |
|
|
|
|
(50 |
)% |
|
299 |
% |
|
132 |
% |
|
92 |
% |
|
|
|
|
48 |
% |
|
1 |
% |
|
|
|
|
|
|
|
Airfare growth |
|
|
|
(1 |
)% |
|
1 |
% |
|
— |
% |
|
1 |
% |
|
|
|
|
(5 |
)% |
|
(35 |
)% |
|
(36 |
)% |
|
(31 |
)% |
|
|
|
|
(26 |
)% |
|
30 |
% |
|
31 |
% |
|
32 |
% |
|
|
|
|
39 |
% |
|
35 |
% |
|
|
|
|
|
|
|
Revenue per ticket growth |
|
|
|
(7 |
)% |
|
(7 |
)% |
|
(10 |
)% |
|
(9 |
)% |
|
|
|
|
(41 |
)% |
|
NM |
|
|
(48 |
)% |
|
(35 |
)% |
|
|
|
|
(10 |
)% |
|
NM |
|
|
(2 |
)% |
|
(12 |
)% |
|
|
|
|
1 |
% |
|
21 |
% |
|
|
|
|
|
|
|
Air revenue growth |
|
|
|
3 |
% |
|
2 |
% |
|
(3 |
)% |
|
(8 |
)% |
|
|
|
|
(56 |
)% |
|
NM |
|
|
(87 |
)% |
|
(80 |
)% |
|
|
|
|
(55 |
)% |
|
NM |
|
|
128 |
% |
|
68 |
% |
|
|
|
|
50 |
% |
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Notes:
- All comparisons are against comparable period of prior year unless otherwise noted.
- Advertising & Media Revenue includes third party revenue from trivago. All trivago revenue is classified as international.
-
Corporate includes product revenue subsequent to our acquisition of
Bodybuilding.com inJuly 26, 2019 through its sale inMay 2020 . -
B2B includes Egencia through its sale in
November 2021 . - Some numbers may not add due to rounding. All percentages above and throughout this release are calculated on precise, unrounded numbers
*Domestic refers to
Notes & Definitions:
Gross Bookings: Gross bookings generally represent the total retail value of transactions booked, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, adjusted for cancellations and refunds.
Retail: The Retail segment, which consists of the aggregation of operating segments, provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including:
B2B: The B2B segment is comprised of our Expedia Business Services organization which consists of Expedia Partner Solutions, which operates private label and co-branded programs to make travel services available to leisure travelers though third-party company branded websites.
trivago: The trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.
Corporate: Includes unallocated corporate expenses as well as
Lodging Metrics: Reported on a stayed and booked basis. Lodging consists of both merchant and agency model hotel and alternative accommodations.
Room Nights Stayed: Room nights stayed represent stayed hotel room nights and include property nights for our Retail reportable segment and stayed hotel room nights for our B2B reportable segment. Stayed hotel room nights include both merchant and agency hotel stays. Property nights, which are related to our alternative accommodation business, are reported upon the first day of stay and check-in to a property and represent the total number of nights for which a property is rented.
Room Nights Booked: Room nights booked represent booked hotel room nights and include property nights for our Retail reportable segment and booked hotel room nights for our B2B reportable segment. Booked hotel room nights include both merchant and agency hotel stays. Property nights are related to our alternative accommodation business.
Air Metrics: Reported on a booked basis and includes both merchant and agency air bookings.
Definitions of Non-GAAP Measures
Adjusted EBITDA is defined as net income (loss) attributable to
(1) net income (loss) attributable to non-controlling interests;
(2) provision for income taxes;
(3) total other expenses, net;
(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;
(5) acquisition-related impacts, including
(i) amortization of intangible assets and goodwill and intangible asset impairment,
(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements; and
(iii) upfront consideration paid to settle employee compensation plans of the acquiree;
(6) certain other items, including restructuring;
(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings;
(8) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period; and
(9) depreciation.
The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.
Adjusted Net Income (Loss) generally captures all items on the statements of operations that occur in normal course operations and have been, or ultimately will be, settled in cash and is defined as net income (loss) attributable to
(1) stock-based compensation expense, including compensation expense related to equity plans of certain subsidiaries and equity-method investments;
(2) acquisition-related impacts, including;
(i) amortization of intangible assets, including as part of equity-method investments, and goodwill and intangible asset impairment;
(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;
(iii) upfront consideration paid to settle employee compensation plans of the acquiree; and
(iv) gains (losses) recognized on non-controlling investment basis adjustments when we acquire or lose controlling interests;
(3) currency gains or losses on
(4) since adoption of new accounting guidance in the first quarter of 2018, the changes in fair value of equity investments;
(5) certain other items, including restructuring charges;
(6) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g., hotel occupancy and excise taxes), related court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings, including as part of equity method investments;
(7) discontinued operations;
(8) the non-controlling interest impact of the aforementioned adjustment items; and
(9) unrealized gains (losses) on revenue hedging activities that are included in other, net.
Adjusted Net Income (Loss) includes preferred share dividends. We believe Adjusted Net Income (Loss) is useful to investors because it represents
Adjusted EPS is defined as Adjusted Net Income (Loss) divided by adjusted weighted average shares outstanding, which, when applicable, include dilution from our convertible debt instruments per the treasury stock method for Adjusted EPS. The treasury stock method assumes we would elect to settle the principal amount of the debt for cash and the conversion premium for shares. If the conversion prices for such instruments exceed our average stock price for the period, the instruments generally would have no impact to adjusted weighted average shares outstanding. This differs from the GAAP method for dilution from our convertible debt instruments, which include them on an if-converted method. We believe Adjusted EPS is useful to investors because it represents, on a per share basis,
Free Cash Flow is defined as net cash flow provided by operating activities less capital expenditures. Management believes Free Cash Flow is useful to investors because it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. We added additional detail for the capital expenditures associated with building our new headquarters facility in
Adjusted Expenses (cost of revenue, selling and marketing, technology and content and general and administrative expenses) exclude stock-based compensation related to expenses for stock options, restricted stock units and other equity compensation under applicable stock-based compensation accounting standards.
In addition, we evaluate certain operating and financial measures, including revenue growth, on both an as-reported and excluding the impact of foreign exchange, FX neutral, basis. FX neutral results are among the primary metrics by which management evaluates the performance of the business and management believes that investors should have access to the same set of tools that management uses to analyze our results. We estimate FX neutral revenue growth by (i) excluding the FX impacts resulting from the time period between a transaction's booking date and revenue recognition date for both the current and prior year periods, and (ii) converting our current-year period results for transactions recorded in currencies other than
Tabular Reconciliations for Non-GAAP Measures
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) by Segment(1)
|
Three months ended |
|||||||||||||||||
|
Retail |
|
B2B |
|
trivago |
|
Corporate & Eliminations |
|
Total |
|||||||||
|
(In millions) |
|||||||||||||||||
Operating income (loss) |
$ |
470 |
|
|
$ |
139 |
|
|
$ |
30 |
|
$ |
(294 |
) |
|
$ |
345 |
|
Realized gain (loss) on revenue hedges |
|
(15 |
) |
|
|
(3 |
) |
|
|
— |
|
|
— |
|
|
|
(18 |
) |
Legal reserves, occupancy tax and other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
2 |
|
|
|
2 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
93 |
|
|
|
93 |
|
Amortization of intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
21 |
|
|
|
21 |
|
Depreciation |
|
127 |
|
|
|
20 |
|
|
|
3 |
|
|
26 |
|
|
|
176 |
|
Impairment of intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
29 |
|
|
|
29 |
|
Adjusted EBITDA(1) |
$ |
582 |
|
|
$ |
156 |
|
|
$ |
33 |
|
$ |
(123 |
) |
|
$ |
648 |
|
|
Three months ended |
||||||||||||||||
|
Retail |
|
B2B |
|
trivago |
|
Corporate & Eliminations |
|
Total |
||||||||
|
(In millions) |
||||||||||||||||
Operating income (loss) |
$ |
180 |
|
$ |
(30 |
) |
|
$ |
3 |
|
$ |
(285 |
) |
|
$ |
(132 |
) |
Realized gain (loss) on revenue hedges |
|
3 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
3 |
|
Restructuring and related reorganization charges |
|
— |
|
|
— |
|
|
|
— |
|
|
13 |
|
|
|
13 |
|
Legal reserves, occupancy tax and other |
|
— |
|
|
— |
|
|
|
— |
|
|
(8 |
) |
|
|
(8 |
) |
Stock-based compensation |
|
— |
|
|
— |
|
|
|
— |
|
|
120 |
|
|
|
120 |
|
Amortization of intangible assets |
|
— |
|
|
— |
|
|
|
— |
|
|
26 |
|
|
|
26 |
|
Depreciation |
|
133 |
|
|
26 |
|
|
|
2 |
|
|
18 |
|
|
|
179 |
|
Adjusted EBITDA(1) |
$ |
316 |
|
$ |
(4 |
) |
|
$ |
5 |
|
$ |
(116 |
) |
|
$ |
201 |
|
(1) Adjusted EBITDA for our Retail and B2B segments includes allocations of certain expenses, primarily cost of revenue and facilities, the total costs of our global travel supply organizations, the majority of platform and marketplace technology costs, and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization)
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In millions) |
||||||||||||||
Net loss attributable to |
|
$ |
(185 |
) |
|
$ |
(172 |
) |
|
$ |
(307 |
) |
|
$ |
(750 |
) |
Net loss attributable to non-controlling interests |
|
|
— |
|
|
|
(5 |
) |
|
|
(1 |
) |
|
|
(8 |
) |
Provision for income taxes |
|
|
58 |
|
|
|
(47 |
) |
|
|
(27 |
) |
|
|
(216 |
) |
Total other expense, net |
|
|
472 |
|
|
|
92 |
|
|
|
545 |
|
|
|
473 |
|
Operating income (loss) |
|
|
345 |
|
|
|
(132 |
) |
|
|
210 |
|
|
|
(501 |
) |
Gain (loss) on revenue hedges related to revenue recognized |
|
|
(18 |
) |
|
|
3 |
|
|
|
(18 |
) |
|
|
(6 |
) |
Restructuring and related reorganization charges |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
42 |
|
Legal reserves, occupancy tax and other |
|
|
2 |
|
|
|
(8 |
) |
|
|
23 |
|
|
|
(9 |
) |
Stock-based compensation |
|
|
93 |
|
|
|
120 |
|
|
|
183 |
|
|
|
203 |
|
Depreciation and amortization |
|
|
197 |
|
|
|
205 |
|
|
|
394 |
|
|
|
414 |
|
Impairment of intangible assets |
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
648 |
|
|
$ |
201 |
|
|
$ |
821 |
|
|
$ |
143 |
|
Adjusted Net Income (Loss) & Adjusted EPS
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In millions, except share and per share data) |
||||||||||||||
Net loss attributable to |
|
$ |
(185 |
) |
|
$ |
(172 |
) |
|
$ |
(307 |
) |
|
$ |
(750 |
) |
Less: Net loss attributable to non-controlling interests |
|
|
— |
|
|
|
5 |
|
|
|
1 |
|
|
|
8 |
|
Less: Provision for income taxes |
|
|
(58 |
) |
|
|
47 |
|
|
|
27 |
|
|
|
216 |
|
Loss before income taxes |
|
|
(127 |
) |
|
|
(224 |
) |
|
|
(335 |
) |
|
|
(974 |
) |
Amortization of intangible assets |
|
|
21 |
|
|
|
26 |
|
|
|
43 |
|
|
|
53 |
|
Stock-based compensation |
|
|
93 |
|
|
|
120 |
|
|
|
183 |
|
|
|
203 |
|
Legal reserves, occupancy tax and other |
|
|
2 |
|
|
|
(8 |
) |
|
|
23 |
|
|
|
(9 |
) |
Restructuring and related reorganization charges |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
42 |
|
Impairment of intangible assets |
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
Unrealized (gain) loss on revenue hedges |
|
|
(13 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
(2 |
) |
(Gain) loss on minority equity investments, net |
|
|
373 |
|
|
|
4 |
|
|
|
352 |
|
|
|
(4 |
) |
Loss on debt extinguishment |
|
|
24 |
|
|
|
— |
|
|
|
24 |
|
|
|
280 |
|
Gain on sale of business, net |
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
Adjusted income (loss) before income taxes |
|
|
402 |
|
|
|
(70 |
) |
|
|
311 |
|
|
|
(412 |
) |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Provision for income taxes |
|
|
(58 |
) |
|
|
47 |
|
|
|
27 |
|
|
|
216 |
|
Provision for income taxes for adjustments |
|
|
(25 |
) |
|
|
(127 |
) |
|
|
(86 |
) |
|
|
(222 |
) |
Total Adjusted provision for income taxes |
|
|
(83 |
) |
|
|
(80 |
) |
|
|
(59 |
) |
|
|
(6 |
) |
Total Adjusted income tax rate |
|
|
20.8 |
% |
|
|
(113.6 |
)% |
|
|
19.2 |
% |
|
|
(1.5 |
)% |
|
|
|
|
|
|
|
|
|
||||||||
Non-controlling interests |
|
|
(9 |
) |
|
|
3 |
|
|
|
(16 |
) |
|
|
5 |
|
Preferred stock dividend |
|
|
— |
|
|
|
(22 |
) |
|
|
— |
|
|
|
(50 |
) |
Adjusted net income (loss) attributable to |
|
$ |
310 |
|
|
$ |
(169 |
) |
|
$ |
236 |
|
|
$ |
(463 |
) |
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted weighted average shares outstanding (000's) |
|
|
157,290 |
|
|
|
149,093 |
|
|
|
156,831 |
|
|
|
147,148 |
|
Adjustment to dilutive securities (000's) |
|
|
1,227 |
|
|
|
— |
|
|
|
2,071 |
|
|
|
— |
|
Adjusted weighted average shares outstanding (000's) |
|
|
158,517 |
|
|
|
149,093 |
|
|
|
158,902 |
|
|
|
147,148 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted loss per share |
|
$ |
(1.17 |
) |
|
$ |
(2.02 |
) |
|
$ |
(1.96 |
) |
|
$ |
(6.16 |
) |
Adjusted earnings (loss) per share attributable to |
|
$ |
1.96 |
|
|
$ |
(1.13 |
) |
|
$ |
1.49 |
|
|
$ |
(3.15 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Ex-trivago Adjusted Net Income (Loss) and Adjusted EPS |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income (loss) attributable to |
|
$ |
310 |
|
|
$ |
(169 |
) |
|
$ |
236 |
|
|
$ |
(463 |
) |
Less: Adjusted net income attributable to trivago |
|
|
15 |
|
|
|
9 |
|
|
|
29 |
|
|
|
7 |
|
Adjusted net income (loss) excluding trivago |
|
$ |
295 |
|
|
$ |
(178 |
) |
|
$ |
207 |
|
|
$ |
(470 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings (loss) per share attributable to |
|
$ |
1.96 |
|
|
$ |
(1.13 |
) |
|
$ |
1.49 |
|
|
$ |
(3.15 |
) |
Less: Adjusted earnings per share attributable to trivago |
|
|
0.10 |
|
|
|
0.06 |
|
|
|
0.18 |
|
|
|
0.05 |
|
Adjusted earnings (loss) per share excluding trivago |
|
$ |
1.86 |
|
|
$ |
(1.19 |
) |
|
$ |
1.30 |
|
|
$ |
(3.19 |
) |
Free Cash Flow
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In millions) |
||||||||||||||
Net cash provided by operating activities |
|
$ |
1,628 |
|
|
$ |
2,514 |
|
|
$ |
4,619 |
|
|
$ |
4,684 |
|
Headquarters capital expenditures |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
(23 |
) |
Non-headquarters capital expenditures |
|
|
(159 |
) |
|
|
(173 |
) |
|
|
(315 |
) |
|
|
(328 |
) |
Less: Total capital expenditures |
|
|
(159 |
) |
|
|
(183 |
) |
|
|
(315 |
) |
|
|
(351 |
) |
Free cash flow |
|
$ |
1,469 |
|
|
$ |
2,331 |
|
|
$ |
4,304 |
|
|
$ |
4,333 |
|
Adjusted Expenses (Cost of revenue, selling and marketing, technology and content and general and administrative expenses)
|
|
Three months ended
|
|
Six months ended
|
||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(In millions) |
||||||||||
Cost of revenue |
|
$ |
419 |
|
$ |
374 |
|
$ |
790 |
|
$ |
685 |
Less: stock-based compensation |
|
|
3 |
|
|
6 |
|
|
6 |
|
|
11 |
Adjusted cost of revenue |
|
$ |
416 |
|
$ |
368 |
|
$ |
784 |
|
$ |
674 |
Less: trivago cost of revenue(1) |
|
|
4 |
|
|
4 |
|
|
8 |
|
|
7 |
Adjusted cost of revenue excluding trivago |
|
$ |
412 |
|
$ |
364 |
|
$ |
776 |
|
$ |
667 |
|
|
|
|
|
|
|
|
|
||||
Selling and marketing expense |
|
$ |
1,716 |
|
$ |
1,199 |
|
$ |
3,055 |
|
$ |
1,863 |
Less: stock-based compensation |
|
|
17 |
|
|
32 |
|
|
32 |
|
|
49 |
Adjusted selling and marketing expense |
|
$ |
1,699 |
|
$ |
1,167 |
|
$ |
3,023 |
|
$ |
1,814 |
Less: trivago selling and marketing expense(1)(2) |
|
|
53 |
|
|
60 |
|
|
80 |
|
|
78 |
Adjusted selling and marketing expense excluding trivago |
|
$ |
1,646 |
|
$ |
1,107 |
|
$ |
2,943 |
|
$ |
1,736 |
|
|
|
|
|
|
|
|
|
||||
Technology and content expense |
|
$ |
284 |
|
$ |
276 |
|
$ |
554 |
|
$ |
523 |
Less: stock-based compensation |
|
|
27 |
|
|
32 |
|
|
54 |
|
|
59 |
Adjusted technology and content expense |
|
$ |
257 |
|
$ |
244 |
|
$ |
500 |
|
$ |
464 |
Less: trivago technology and content expense(1) |
|
|
12 |
|
|
13 |
|
|
25 |
|
|
25 |
Adjusted technology and content expense excluding trivago |
|
$ |
245 |
|
$ |
231 |
|
$ |
475 |
|
$ |
439 |
|
|
|
|
|
|
|
|
|
||||
General and administrative expense |
|
$ |
189 |
|
$ |
184 |
|
$ |
375 |
|
$ |
340 |
Less: stock-based compensation |
|
|
46 |
|
|
50 |
|
|
91 |
|
|
84 |
Adjusted general and administrative expense |
|
$ |
143 |
|
$ |
134 |
|
$ |
284 |
|
$ |
256 |
Less: trivago general and administrative expense(1) |
|
|
8 |
|
|
8 |
|
|
16 |
|
|
15 |
Adjusted general and administrative expense excluding trivago |
|
$ |
135 |
|
$ |
126 |
|
$ |
268 |
|
$ |
241 |
Note: Some numbers may not add due to rounding.
(1) trivago amount presented without stock-based compensation as those are included with the consolidated totals above.
(2) Selling and marketing expense adjusted to add back Retail spend on trivago eliminated in consolidation.
Conference Call
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These forward-looking statements are based on assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as “believe,” “estimate,” “expect” and “will,” or the negative of these terms or other similar expressions, among others, generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future revenues, expenses, margins, profitability, net income (loss), earnings per share and other measures of results of operations and the prospects for future growth of
About
© 2022
View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005752/en/
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ir@expediagroup.com
Communications
press@expediagroup.com
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