Expedia Group Reports Third Quarter 2024 Results
Expedia Group (NASDAQ: EXPE) reported strong Q3 2024 results with notable growth across key metrics. Room nights increased 9% year-over-year, while total gross bookings reached $27.5 billion, up 7%. Revenue grew 3% to $4.1 billion, despite a 2-point negative FX impact. B2B performance was particularly strong, with gross bookings up 19% and revenue growing 18% to $1.2 billion. The company's lodging segment saw 8% growth in gross bookings to $20.0 billion. Financial highlights include a 61% increase in net income and 76% growth in diluted EPS to $5.04. The company also announced a CFO transition, with Julie Whalen stepping down from her role and board position.
Expedia Group (NASDAQ: EXPE) ha riportato risultati solidi per il terzo trimestre del 2024, mostrando una crescita notevole in metriche chiave. Le notti in camera sono aumentate del 9% rispetto all'anno precedente, mentre le prenotazioni totali lorde hanno raggiunto 27,5 miliardi di dollari, con un incremento del 7%. I ricavi sono cresciuti del 3%, arrivando a 4,1 miliardi di dollari, nonostante un impatto negativo di 2 punti dai cambi. La performance B2B è stata particolarmente forte, con prenotazioni lorde aumentate del 19% e un incremento dei ricavi del 18%, raggiungendo 1,2 miliardi di dollari. Il segmento alloggi dell'azienda ha visto una crescita dell'8% nelle prenotazioni lorde, arrivando a 20,0 miliardi di dollari. Tra i risultati finanziari spiccano un aumento del 61% dell'utile netto e una crescita del 76% dell'EPS diluito a 5,04 dollari. L'azienda ha anche annunciato una transizione nel CFO, con Julie Whalen che si dimette dal suo ruolo e dalla posizione nel consiglio.
Expedia Group (NASDAQ: EXPE) reportó sólidos resultados para el tercer trimestre de 2024 con un crecimiento notable en métricas clave. Las noches de alojamiento aumentaron un 9% en comparación con el año anterior, mientras que las reservas brutas totales alcanzaron 27.5 mil millones de dólares, un incremento del 7%. Los ingresos crecieron un 3% hasta 4.1 mil millones de dólares, a pesar de un impacto negativo de 2 puntos debido a cambios en el tipo de cambio. El rendimiento B2B fue particularmente fuerte, con reservas brutas en aumento del 19% y los ingresos creciendo un 18% hasta 1.2 mil millones de dólares. El segmento de alojamiento de la compañía vio un crecimiento del 8% en las reservas brutas, alcanzando 20.0 mil millones de dólares. Los puntos destacados financieros incluyen un aumento del 61% en los ingresos netos y un crecimiento del 76% en el EPS diluido a 5.04 dólares. La compañía también anunció una transición en el puesto de CFO, con Julie Whalen renunciando a su cargo y a su posición en la junta.
익스피디아 그룹 (NASDAQ: EXPE)는 2024년 3분기 실적이 강세를 보였으며, 주요 지표에서 눈에 띄는 성장을 기록했다고 보고했습니다. 객실 이용 일수가 전년 대비 9% 증가했으며, 총 총 예약액은 275억 달러로 7% 상승했습니다. 수익은 3% 증가해서 41억 달러에 달했지만, 환율 변동으로 인해 2포인트의 부정적 영향을 받았습니다. B2B 성과는 특히 강세를 보였으며, 총 예약은 19% 증가하고 수익은 18% 성장하여 12억 달러에 달했습니다. 회사의 숙박 부문은 200억 달러로 총 예약이 8% 성장했습니다. 재무 하이라이트에는 순이익이 61% 증가하고 희석 주당순이익(EPS)이 76% 성장하여 5.04달러에 달했습니다. 회사는 또한 CFO 전환을 발표했으며, 줄리 웨일런이 자신의 역할과 이사회 직위에서 사임했습니다.
Expedia Group (NASDAQ: EXPE) a annoncé des résultats solides pour le troisième trimestre 2024, avec une croissance notable sur des indicateurs clés. Les nuitées ont augmenté de 9 % par rapport à l'année précédente, tandis que les réservations brutes totales ont atteint 27,5 milliards de dollars, soit une hausse de 7 %. Les revenus ont progressé de 3 % pour atteindre 4,1 milliards de dollars, malgré un impact négatif de 2 points dû aux fluctuations monétaires. La performance B2B a été particulièrement forte, avec des réservations brutes en hausse de 19 % et des revenus en croissance de 18 % pour atteindre 1,2 milliard de dollars. Le segment d'hébergement de l'entreprise a enregistré une croissance de 8 % des réservations brutes, atteignant 20,0 milliards de dollars. Parmi les points forts financiers, on souligne une augmentation de 61 % du bénéfice net et une croissance de 76 % du BPA dilué à 5,04 dollars. L'entreprise a également annoncé un changement de CFO, Julie Whalen se retirant de son rôle et de sa position au conseil d'administration.
Expedia Group (NASDAQ: EXPE) berichtete über starke Ergebnisse im 3. Quartal 2024 mit bemerkenswertem Wachstum in wichtigen Kennzahlen. Die Übernachtungen stiegen im Jahresvergleich um 9%, während die Bruttobuchungen insgesamt 27,5 Milliarden US-Dollar erreichten, was einem Anstieg von 7% entspricht. Der Umsatz wuchs um 3% auf 4,1 Milliarden US-Dollar, trotz eines negativen Währungsumrechnungseffekts von 2 Punkten. Die B2B-Performance war besonders stark, mit einem Anstieg der Bruttobuchungen um 19% und einem Umsatzwachstum von 18% auf 1,2 Milliarden US-Dollar. Das Unterkunftssegment des Unternehmens verzeichnete ein Wachstum von 8% bei den Bruttobuchungen auf 20,0 Milliarden US-Dollar. Zu den finanziellen Höhepunkten zählen ein Anstieg des Nettogewinns um 61% sowie ein Anstieg des verwässerten Ergebnisses je Aktie (EPS) um 76% auf 5,04 US-Dollar. Das Unternehmen gab auch einen Wechsel des CFO bekannt, wobei Julie Whalen von ihrer Rolle und Position im Vorstand zurücktritt.
- Room nights growth of 9% YoY
- Total gross bookings increased 7% to $27.5B
- B2B revenue grew 18% to $1.2B
- Net income increased 61% YoY
- Diluted EPS grew 76% to $5.04
- Hotel bookings up 10% YoY
- Revenue growth to 3% due to 2-point negative FX impact
- Adjusted EBIT declined 1% YoY
- Net cash used in operating activities increased 9% YoY
- Free cash flow usage increased 6% YoY
Insights
Expedia's Q3 2024 results showcase robust operational momentum with several key positives. Room night growth of
The financial performance is particularly impressive with net income surging
However, investors should note the negative operating cash flow of
Continued strength in room night growth at
Sequential acceleration in gross bookings growth to
Raises full-year guidance
Announces Chief Financial Officer transition
Third Quarter Highlights
-
Booked room nights grew
9% compared to 2023, with Brand Expedia growing at mid-teens. -
Total gross bookings of
grew$27.5 billion 7% compared to 2023, a more than 150 basis point acceleration from the second quarter. -
B2C gross bookings increased
3% year-over-year, a 2-point acceleration from the second quarter. B2B had yet another strong quarter with gross bookings up19% year-over-year. -
Lodging gross bookings of
grew$20.0 billion 8% compared to 2023. Within that, hotel bookings were up10% compared to 2023. -
Revenue of
grew$4.1 billion 3% compared to 2023, which includes a 2 point negative impact from FX. B2B revenue of grew$1.2 billion 18% compared to 2023. -
Repurchased approximately 12.0 million shares for
year-to-date.$1.6 billion
“Our third quarter results exceeded our expectations on gross bookings and earnings with revenue landing in-line. We accelerated bookings growth in our consumer business for the second consecutive quarter, and our advertising and B2B businesses continue to deliver strong double-digit growth," said Ariane Gorin, CEO of Expedia Group.
Expedia Group and Julie Whalen have agreed that she will step down from her role as Expedia Group’s Chief Financial Officer, effective upon the appointment of her successor, which is expected to occur before February 17, 2025. Ms. Whalen has agreed to remain with the Company through February 17, 2025 to facilitate a smooth transition. Ms. Whalen has also resigned as a member of the Board of Directors of the Company, effective today. “I want to thank Julie for all she has done for Expedia Group as a board member and as CFO over the last five years. We are grateful for her contributions,” said Ariane Gorin, CEO of Expedia Group.
Financial Summary & Operating Metrics (In millions except per share amounts)
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Expedia Group, Inc. |
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Metric |
Q3 2024 |
Q3 2023 |
Δ Y/Y |
Booked room nights |
97.4 |
89.3 |
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Gross bookings |
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Revenue |
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Operating income |
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Net income attributable to Expedia Group, Inc. |
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Diluted earnings per share |
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Adjusted EBITDA* |
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Adjusted EBIT* |
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(1)% |
Adjusted net income* |
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Adjusted EPS* |
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Net cash used in operating activities |
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Free cash flow* |
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* A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this release.
Conference Call
Expedia Group, Inc. will webcast a conference call to discuss third quarter 2024 financial results and certain forward-looking information on Thursday, November 7, 2024 at 1:30 p.m. Pacific Time (PT). The webcast will be open to the public and available via ir.expediagroup.com. Expedia Group expects to maintain access to the webcast on the IR website for approximately twelve months subsequent to the initial broadcast.
About Expedia Group
Expedia Group, Inc. brands power travel for everyone, everywhere through our global platform. Driven by the core belief that travel is a force for good, we help people experience the world in new ways and build lasting connections. We provide industry-leading technology solutions to fuel partner growth and success, while facilitating memorable experiences for travelers.
Expedia Group’s three flagship consumer brands includes: Expedia®, Hotels.com®, and Vrbo®. One Key™ is our comprehensive loyalty program that unifies Expedia, Hotels.com and Vrbo into one simple, flexible travel rewards experience. To enroll in One Key, download Expedia, Hotels.com and Vrbo mobile apps for free on iOS and Android devices. One Key is currently available in the
© 2024 Expedia, Inc., an Expedia Group company. All rights reserved. Trademarks and logos are the property of their respective owners. CST: 2029030-50
Expedia Group, Inc.
Trended Metrics
(All figures in millions)
The metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition or methodology of any of our supplemental metrics are subject to change, and such changes could be material. We may also discontinue certain supplemental metrics as our business evolves over time. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information included in the financial statements filed with or furnished to the SEC.
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2022 |
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2023 |
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2024 |
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Full Year |
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|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
Q4 |
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|
Q1 |
Q2 |
Q3 |
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2022 |
2023 |
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Units sold |
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Booked room nights |
|
|
77.0 |
82.5 |
81.6 |
70.8 |
|
94.5 |
89.7 |
89.3 |
77.4 |
|
|
101.2 |
98.9 |
97.4 |
|
|
312.0 |
350.9 |
|
|
||||||||||||||||
Booked air tickets |
|
|
13.1 |
13.5 |
12.2 |
11.1 |
|
14.0 |
13.6 |
12.8 |
11.4 |
|
|
14.2 |
14.5 |
13.8 |
|
|
49.9 |
51.9 |
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Gross bookings by business model |
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Agency |
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Merchant |
|
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13,066 |
13,366 |
13,083 |
11,042 |
|
15,976 |
14,951 |
14,758 |
12,233 |
|
|
16,863 |
16,259 |
16,119 |
|
|
50,557 |
57,918 |
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Total |
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Lodging gross bookings |
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Revenue by segment |
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B2C |
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B2B |
|
|
432 |
650 |
788 |
676 |
|
668 |
861 |
995 |
864 |
|
|
833 |
1,049 |
1,178 |
|
|
2,546 |
3,388 |
|
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||||||||||||||||
trivago (third-party revenue) |
|
|
77 |
111 |
124 |
68 |
|
76 |
82 |
115 |
65 |
|
|
70 |
77 |
102 |
|
|
380 |
338 |
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Total |
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Revenue by product |
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Lodging |
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Air |
|
|
74 |
95 |
100 |
93 |
|
113 |
111 |
100 |
86 |
|
|
115 |
111 |
104 |
|
|
362 |
410 |
|
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||||||||||||||||
Advertising and media - EG(1) |
|
|
89 |
102 |
98 |
108 |
|
99 |
119 |
125 |
140 |
|
|
145 |
152 |
167 |
|
|
397 |
483 |
|
|
||||||||||||||||
Advertising and media - trivago(1) |
|
|
77 |
111 |
124 |
68 |
|
76 |
82 |
115 |
65 |
|
|
70 |
77 |
102 |
|
|
380 |
338 |
|
|
||||||||||||||||
Other(2) |
|
|
399 |
473 |
416 |
335 |
|
348 |
348 |
356 |
292 |
|
|
331 |
356 |
370 |
|
|
1,623 |
1,344 |
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Total |
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Revenue by geography |
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Non- |
|
|
593 |
973 |
1,261 |
901 |
|
917 |
1,186 |
1,489 |
1,100 |
|
|
1,096 |
1,312 |
1,625 |
|
|
3,728 |
4,692 |
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Total |
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Adjusted EBITDA by segment(3) |
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B2C |
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B2B |
|
|
80 |
156 |
221 |
142 |
|
133 |
206 |
266 |
193 |
|
|
172 |
263 |
338 |
|
|
599 |
798 |
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Other(4) |
|
|
(95) |
(90) |
(85) |
(104) |
|
(96) |
(112) |
(106) |
(129) |
|
|
(132) |
(131) |
(116) |
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|
(374) |
(443) |
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Total |
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Net income (loss) attributable to Expedia Group, Inc.(5) |
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(1) Our advertising and media business consists of Expedia Group ("EG") Media Solutions, which is responsible for generating advertising revenue on our global online travel brands, and third-party revenue for trivago, a leading hotel metasearch site.
(2) Other revenue primarily includes insurance, car rental, destination services and cruise revenue.
(3) See the section below titled "Tabular Reconciliations for Non-GAAP Measures — Adjusted EBITDA by segment" for additional details.
(4) Other is comprised of trivago, corporate and intercompany eliminations.
(5) Expedia Group does not calculate or report net income (loss) by segment.
Notes:
-
All trivago revenue is classified as Non-
U.S. point of sale. - Some numbers may not add due to rounding. All percentages throughout this release are calculated on precise, unrounded numbers.
EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data) (Unaudited) |
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Three months ended September 30, |
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Nine months ended September 30, |
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|
2024 |
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2023 |
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2024 |
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2023 |
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Revenue |
$ |
4,060 |
|
|
$ |
3,929 |
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$ |
10,507 |
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|
$ |
9,952 |
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Costs and expenses: |
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Cost of revenue (exclusive of depreciation and amortization shown separately below) (1) |
|
388 |
|
|
|
412 |
|
|
|
1,108 |
|
|
|
1,233 |
|
Selling and marketing - direct |
|
1,855 |
|
|
|
1,671 |
|
|
|
5,298 |
|
|
|
4,737 |
|
Selling and marketing - indirect (1) |
|
197 |
|
|
|
185 |
|
|
|
580 |
|
|
|
563 |
|
Technology and content (1) |
|
320 |
|
|
|
340 |
|
|
|
992 |
|
|
|
1,001 |
|
General and administrative (1) |
|
229 |
|
|
|
194 |
|
|
|
595 |
|
|
|
572 |
|
Depreciation and amortization |
|
211 |
|
|
|
208 |
|
|
|
626 |
|
|
|
599 |
|
Impairment of goodwill |
|
— |
|
|
|
297 |
|
|
|
— |
|
|
|
297 |
|
Impairment of intangible assets |
|
33 |
|
|
|
15 |
|
|
|
33 |
|
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|
15 |
|
Legal reserves, occupancy tax and other |
|
59 |
|
|
|
— |
|
|
|
100 |
|
|
|
6 |
|
Restructuring and related reorganization charges (1) |
|
6 |
|
|
|
— |
|
|
|
72 |
|
|
|
— |
|
Operating income |
|
762 |
|
|
|
607 |
|
|
|
1,103 |
|
|
|
929 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
67 |
|
|
|
56 |
|
|
|
185 |
|
|
|
162 |
|
Interest expense |
|
(61 |
) |
|
|
(62 |
) |
|
|
(184 |
) |
|
|
(184 |
) |
Other, net |
|
106 |
|
|
|
(157 |
) |
|
|
103 |
|
|
|
(60 |
) |
Total other income (expense), net |
|
112 |
|
|
|
(163 |
) |
|
|
104 |
|
|
|
(82 |
) |
Income before income taxes |
|
874 |
|
|
|
444 |
|
|
|
1,207 |
|
|
|
847 |
|
Provision for income taxes |
|
(190 |
) |
|
|
(139 |
) |
|
|
(284 |
) |
|
|
(295 |
) |
Net income |
|
684 |
|
|
|
305 |
|
|
|
923 |
|
|
|
552 |
|
Net loss attributable to non-controlling interests |
|
— |
|
|
|
120 |
|
|
|
12 |
|
|
|
113 |
|
Net income attributable to Expedia Group, Inc. |
$ |
684 |
|
|
$ |
425 |
|
|
$ |
935 |
|
|
$ |
665 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to Expedia Group, Inc. available to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
5.28 |
|
|
$ |
2.98 |
|
|
$ |
7.07 |
|
|
$ |
4.51 |
|
Diluted |
|
5.04 |
|
|
|
2.87 |
|
|
|
6.75 |
|
|
|
4.37 |
|
Shares used in computing earnings per share (000's): |
|
|
|
|
|
|
|
||||||||
Basic |
|
129,758 |
|
|
|
142,228 |
|
|
|
132,393 |
|
|
|
147,253 |
|
Diluted |
|
135,732 |
|
|
|
147,748 |
|
|
|
138,655 |
|
|
|
152,172 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes stock-based compensation as follows: |
|
|
|
|
|
|
|
||||||||
Cost of revenue |
$ |
3 |
|
|
$ |
3 |
|
|
$ |
9 |
|
|
$ |
10 |
|
Selling and marketing |
|
19 |
|
|
|
20 |
|
|
|
61 |
|
|
|
60 |
|
Technology and content |
|
40 |
|
|
|
35 |
|
|
|
120 |
|
|
|
105 |
|
General and administrative |
|
85 |
|
|
|
47 |
|
|
|
167 |
|
|
|
139 |
|
Restructuring and related reorganization charges |
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
EXPEDIA GROUP, INC. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) |
|||||||||||
|
September 30,
|
|
December 31,
|
|
September 30,
|
||||||
|
(Unaudited) |
|
|
|
(Unaudited) |
||||||
ASSETS |
|||||||||||
Current assets: |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
4,722 |
|
|
$ |
4,225 |
|
|
$ |
5,056 |
|
Restricted cash and cash equivalents |
|
1,324 |
|
|
|
1,436 |
|
|
|
1,436 |
|
Short-term investments |
|
196 |
|
|
|
28 |
|
|
|
— |
|
Accounts receivable, net of allowance of |
|
3,764 |
|
|
|
2,786 |
|
|
|
2,753 |
|
Income taxes receivable |
|
68 |
|
|
|
47 |
|
|
|
84 |
|
Prepaid expenses and other current assets |
|
758 |
|
|
|
708 |
|
|
|
765 |
|
Total current assets |
|
10,832 |
|
|
|
9,230 |
|
|
|
10,094 |
|
Property and equipment, net |
|
2,400 |
|
|
|
2,359 |
|
|
|
2,354 |
|
Operating lease right-of-use assets |
|
334 |
|
|
|
357 |
|
|
|
330 |
|
Long-term investments and other assets |
|
1,527 |
|
|
|
1,238 |
|
|
|
1,155 |
|
Deferred income taxes |
|
514 |
|
|
|
586 |
|
|
|
595 |
|
Intangible assets, net |
|
947 |
|
|
|
1,023 |
|
|
|
1,149 |
|
Goodwill |
|
6,851 |
|
|
|
6,849 |
|
|
|
6,845 |
|
TOTAL ASSETS |
$ |
23,405 |
|
|
$ |
21,642 |
|
|
$ |
22,522 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||
Current liabilities: |
|
|
|
|
|
||||||
Accounts payable, merchant |
$ |
1,980 |
|
|
$ |
2,041 |
|
|
$ |
1,887 |
|
Accounts payable, other |
|
1,178 |
|
|
|
1,077 |
|
|
|
1,130 |
|
Deferred merchant bookings |
|
9,413 |
|
|
|
7,723 |
|
|
|
8,394 |
|
Deferred revenue |
|
173 |
|
|
|
164 |
|
|
|
167 |
|
Income taxes payable |
|
114 |
|
|
|
26 |
|
|
|
108 |
|
Accrued expenses and other current liabilities |
|
887 |
|
|
|
752 |
|
|
|
874 |
|
Current maturities of long-term debt |
|
1,042 |
|
|
|
— |
|
|
|
— |
|
Total current liabilities |
|
14,787 |
|
|
|
11,783 |
|
|
|
12,560 |
|
Long-term debt, excluding current maturities |
|
5,221 |
|
|
|
6,253 |
|
|
|
6,250 |
|
Deferred income taxes |
|
34 |
|
|
|
33 |
|
|
|
34 |
|
Operating lease liabilities |
|
291 |
|
|
|
314 |
|
|
|
288 |
|
Other long-term liabilities |
|
506 |
|
|
|
473 |
|
|
|
464 |
|
Commitments and contingencies |
|
|
|
|
|
||||||
Stockholders’ equity: |
|
|
|
|
|
||||||
Common stock: |
|
— |
|
|
|
— |
|
|
|
— |
|
Shares issued: 286,437, 282,149 and 280,957; Shares outstanding: 123,316, 131,522 and 134,331 |
|
|
|
|
|
||||||
Class B common stock: |
|
— |
|
|
|
— |
|
|
|
— |
|
Shares issued: 12,800; Shares outstanding: 5,523 |
|
|
|
|
|
||||||
Additional paid-in capital |
|
15,890 |
|
|
|
15,398 |
|
|
|
15,227 |
|
Treasury stock - Common stock and Class B, at cost; Shares 170,397, 157,903 and 153,903 |
|
(14,677 |
) |
|
|
(13,023 |
) |
|
|
(12,550 |
) |
Retained earnings (deficit) |
|
303 |
|
|
|
(632 |
) |
|
|
(764 |
) |
Accumulated other comprehensive income (loss) |
|
(194 |
) |
|
|
(209 |
) |
|
|
(240 |
) |
Total Expedia Group, Inc. stockholders’ equity |
|
1,322 |
|
|
|
1,534 |
|
|
|
1,673 |
|
Non-redeemable non-controlling interests |
|
1,244 |
|
|
|
1,252 |
|
|
|
1,253 |
|
Total stockholders’ equity |
|
2,566 |
|
|
|
2,786 |
|
|
|
2,926 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
23,405 |
|
|
$ |
21,642 |
|
|
$ |
22,522 |
|
EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||||||
|
|
||||||
|
Nine months ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
||||
Net income |
$ |
923 |
|
|
$ |
552 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation of property and equipment, including internal-use software and website development |
|
582 |
|
|
|
555 |
|
Amortization of intangible assets |
|
44 |
|
|
|
44 |
|
Impairment of goodwill and intangible assets |
|
33 |
|
|
|
312 |
|
Amortization of stock-based compensation |
|
365 |
|
|
|
314 |
|
Deferred income taxes |
|
66 |
|
|
|
49 |
|
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net |
|
— |
|
|
|
32 |
|
Realized (gain) loss on foreign currency forwards, net |
|
(21 |
) |
|
|
35 |
|
(Gain) loss on minority equity investments, net |
|
(121 |
) |
|
|
73 |
|
Other, net |
|
69 |
|
|
|
34 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(1,007 |
) |
|
|
(704 |
) |
Prepaid expenses and other assets |
|
(19 |
) |
|
|
43 |
|
Accounts payable, merchant |
|
(61 |
) |
|
|
178 |
|
Accounts payable, other, accrued expenses and other liabilities |
|
235 |
|
|
|
223 |
|
Tax payable/receivable, net |
|
109 |
|
|
|
(55 |
) |
Deferred merchant bookings |
|
1,690 |
|
|
|
1,243 |
|
Net cash provided by operating activities |
|
2,887 |
|
|
|
2,928 |
|
Investing activities: |
|
|
|
||||
Capital expenditures, including internal-use software and website development |
|
(565 |
) |
|
|
(669 |
) |
Purchases of investments |
|
(405 |
) |
|
|
— |
|
Sales and maturities of investments |
|
43 |
|
|
|
49 |
|
Other, net |
|
26 |
|
|
|
(15 |
) |
Net cash used in investing activities |
|
(901 |
) |
|
|
(635 |
) |
Financing activities: |
|
|
|
||||
Purchases of treasury stock |
|
(1,641 |
) |
|
|
(1,669 |
) |
Proceeds from exercise of equity awards and employee stock purchase plan |
|
77 |
|
|
|
53 |
|
Other, net |
|
(26 |
) |
|
|
17 |
|
Net cash used in financing activities |
|
(1,590 |
) |
|
|
(1,599 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents |
|
(11 |
) |
|
|
(53 |
) |
Net increase in cash, cash equivalents and restricted cash and cash equivalents |
|
385 |
|
|
|
641 |
|
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period |
|
5,661 |
|
|
|
5,851 |
|
Cash, cash equivalents and restricted cash and cash equivalents at end of period |
$ |
6,046 |
|
|
$ |
6,492 |
|
Supplemental cash flow information |
|
|
|
||||
Cash paid for interest |
$ |
197 |
|
|
$ |
197 |
|
Income tax payments, net |
|
97 |
|
|
|
228 |
|
Notes & Definitions:
Booked Room Nights: Represents booked hotel room nights and property nights for our B2C reportable segment and booked hotel room nights for our B2B reportable segment. Booked hotel room nights include both merchant and agency hotel room nights. Property nights are related to our alternative accommodation business.
Booked Air Tickets: Includes both merchant and agency air 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.
Lodging Metrics: Reported on a booked basis except for revenue, which is on a stayed basis. Lodging consists of both merchant and agency model hotel and alternative accommodations.
B2C: The B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, Hotwire.com, and CarRentals.com.
B2B: The B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers.
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.
Non-GAAP Measures
Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBIT, Adjusted EBIT Margin, Leverage Ratio, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP technology and content and non-GAAP general and administrative), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures. Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items related to transactional tax matters, which may ultimately be settled in cash. We urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis and Legal Proceedings sections, as well as the notes to the financial statements, included in the Company's annual and quarterly reports filed with the Securities and Exchange Commission. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
Adjusted EBITDA is defined as net income (loss) attributable to Expedia Group adjusted for:
(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 EBIT is defined as net income (loss) attributable to Expedia Group adjusted for:
(1) net income (loss) attributable to non-controlling interests;
(2) provision for income taxes;
(3) total other expenses, net;
(4) acquisition-related impacts, including
(i) 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;
(5) certain other items, including restructuring;
(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 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; and
(7) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period.
The above items are excluded from our Adjusted EBIT measure 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 EBIT is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more comprehensive comparison of our performance 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 it allows investors to gain an understanding of the factors and trends affecting profitability, including the ongoing costs to operating our business, which we believe are inclusive of non-cash items such as stock-based compensation.
Trailing Twelve Month Financial Information
Expedia Group includes certain unaudited financial information for the trailing twelve months ("TTM") ended September 30, 2024, which is calculated as the nine months ended September 30, 2024 plus the year ended December 31, 2023 less the nine months ended September 30, 2023. This presentation is not in accordance with GAAP. However, we believe that this presentation provides useful information to investors regarding its recent financial performance, and it views this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess its historical results.
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 Expedia Group plus the following items, net of tax(a):
(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) 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 Expedia Group's combined results, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of certain expenses and items not directly tied to the core operations of our businesses.
(a) Effective January 1, 2023, we changed our methodology for the computation of the effective tax rate used in the calculation of adjusted net income to a long-term projected tax rate as we believe this tax rate provides better consistency across reporting periods and produces results that are reflective of Expedia Group’s long-term effective tax rate. This projected effective tax rate is a total tax rate, and eliminates the effects of non-recurring and period- specific income tax items which can vary in size and frequency. We apply this tax rate to pretax income, as adjusted commensurate with our Adjusted Net Income definition. Based on our long-term projections, in 2023 and 2024 we are applying a
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, Expedia Group's consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, taxes, foreign exchange gains or losses, and minority interest, but excluding the effects of certain expenses not directly tied to the core operations of our businesses. Adjusted Net Income (Loss) and Adjusted EPS have similar limitations as Adjusted EBITDA. In addition, Adjusted Net Income (Loss) does not include all items that affect our net income (loss) and net income (loss) per share for the period. Therefore, we think it is important to evaluate these measures along with our consolidated statements of operations.
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. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the consolidated statements of cash flows.
Adjusted Expenses (cost of revenue, direct and indirect 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. Expedia Group excludes stock-based compensation from these measures primarily because they are non-cash expenses that we do not believe are necessarily reflective of our ongoing cash operating expenses and cash operating income. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting applicable stock-based compensation accounting standards, management believes that providing non-GAAP financial measures that exclude stock-based compensation allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies, as well as providing management with an important tool for financial operational decision making and for evaluating our own recurring core business operating results over different periods of time. There are certain limitations in using financial measures that do not take into account stock-based compensation, including the fact that stock-based compensation is a recurring expense and a valued part of employees' compensation. Therefore, it is important to evaluate both our GAAP and non-GAAP measures. See the Notes to the Consolidated Statements of Operations for stock-based compensation by line item.
Expedia Group, Inc. (excluding trivago) In order to provide increased transparency on the transaction-based component of the business, Expedia Group is reporting results both in total and excluding trivago.
Tabular Reconciliations for Non-GAAP Measures
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) by Segment(1)
|
Three months ended September 30, 2024 |
||||||||||||||||
|
B2C |
|
B2B |
|
trivago |
|
Corporate & Eliminations |
|
Total |
||||||||
|
(In millions) |
||||||||||||||||
Operating income |
$ |
879 |
|
$ |
285 |
|
$ |
13 |
|
$ |
(415 |
) |
|
$ |
762 |
||
Realized gain (loss) on revenue hedges |
|
16 |
|
|
16 |
|
|
— |
|
|
— |
|
|
|
32 |
||
Restructuring and related reorganization charges, excluding stock-based compensation |
|
— |
|
|
— |
|
|
— |
|
|
6 |
|
|
|
6 |
||
Legal reserves, occupancy tax and other |
|
— |
|
|
— |
|
|
— |
|
|
59 |
|
|
|
59 |
||
Stock-based compensation |
|
— |
|
|
— |
|
|
— |
|
|
147 |
|
|
|
147 |
||
Amortization of intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
14 |
|
|
|
14 |
||
Depreciation |
|
133 |
|
|
37 |
|
|
1 |
|
|
26 |
|
|
|
197 |
||
Impairment of intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
33 |
|
|
|
33 |
||
Adjusted EBITDA(1) |
$ |
1,028 |
|
$ |
338 |
|
$ |
14 |
|
$ |
(130 |
) |
|
$ |
1,250 |
||
|
Three months ended September 30, 2023 |
||||||||||||||||
|
B2C |
|
B2B |
|
trivago |
|
Corporate & Eliminations |
|
Total |
||||||||
|
(In millions) |
||||||||||||||||
Operating income |
$ |
935 |
|
|
$ |
237 |
|
$ |
16 |
|
$ |
(581 |
) |
|
$ |
607 |
|
Realized gain (loss) on revenue hedges |
|
(16 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(16 |
) |
Stock-based compensation |
|
— |
|
|
|
— |
|
|
— |
|
|
105 |
|
|
|
105 |
|
Amortization of intangible assets |
|
— |
|
|
|
— |
|
|
— |
|
|
14 |
|
|
|
14 |
|
Depreciation |
|
137 |
|
|
|
29 |
|
|
2 |
|
|
26 |
|
|
|
194 |
|
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
— |
|
|
297 |
|
|
|
297 |
|
Impairment of intangible assets |
|
— |
|
|
|
— |
|
|
— |
|
|
15 |
|
|
|
15 |
|
Adjusted EBITDA(1) |
$ |
1,056 |
|
|
$ |
266 |
|
$ |
18 |
|
$ |
(124 |
) |
|
$ |
1,216 |
|
(1) Adjusted EBITDA for our B2C 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 EBIT (Adjusted Earnings Before Interest & Taxes) and Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization)
|
|
Three months ended
|
|
Nine months ended September 30, |
|
Year Ended
|
|
TTM September 30, |
||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
2024 |
||
|
|
($ in millions) |
||||||||||||||||||||||
Net income attributable to Expedia Group, Inc. |
|
$ |
684 |
|
|
$ |
425 |
|
|
$ |
935 |
|
|
$ |
665 |
|
|
$ |
797 |
|
|
$ |
1,067 |
|
Net loss attributable to non-controlling interests |
|
|
— |
|
|
|
(120 |
) |
|
|
(12 |
) |
|
|
(113 |
) |
|
|
(109 |
) |
|
|
(8 |
) |
Provision for income taxes |
|
|
190 |
|
|
|
139 |
|
|
|
284 |
|
|
|
295 |
|
|
|
330 |
|
|
|
319 |
|
Total other (income) expense, net |
|
|
(112 |
) |
|
|
163 |
|
|
|
(104 |
) |
|
|
82 |
|
|
|
15 |
|
|
|
(171 |
) |
Operating income |
|
|
762 |
|
|
|
607 |
|
|
|
1,103 |
|
|
|
929 |
|
|
|
1,033 |
|
|
|
1,207 |
|
Gain (loss) on revenue hedges related to revenue recognized |
|
|
32 |
|
|
|
(16 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
(7 |
) |
|
|
5 |
|
Restructuring and related reorganization charges, including stock-based compensation |
|
|
6 |
|
|
|
— |
|
|
|
72 |
|
|
|
— |
|
|
|
— |
|
|
|
72 |
|
Legal reserves, occupancy tax and other |
|
|
59 |
|
|
|
— |
|
|
|
100 |
|
|
|
6 |
|
|
|
8 |
|
|
|
102 |
|
Impairment of goodwill |
|
|
— |
|
|
|
297 |
|
|
|
— |
|
|
|
297 |
|
|
|
297 |
|
|
|
— |
|
Impairment of intangible assets |
|
|
33 |
|
|
|
15 |
|
|
|
33 |
|
|
|
15 |
|
|
|
129 |
|
|
|
147 |
|
Adjusted EBIT(1) |
|
|
892 |
|
|
|
903 |
|
|
|
1,308 |
|
|
|
1,235 |
|
|
|
1,460 |
|
|
|
1,533 |
|
Stock-based compensation, excluding restructuring and related reorganization charges(1) |
|
|
147 |
|
|
|
105 |
|
|
|
357 |
|
|
|
314 |
|
|
|
413 |
|
|
|
456 |
|
Depreciation and amortization |
|
|
211 |
|
|
|
208 |
|
|
|
626 |
|
|
|
599 |
|
|
|
807 |
|
|
|
834 |
|
Adjusted EBITDA |
|
$ |
1,250 |
|
|
$ |
1,216 |
|
|
$ |
2,291 |
|
|
$ |
2,148 |
|
|
$ |
2,680 |
|
|
$ |
2,823 |
|
Net income margin(2) |
|
|
16.9 |
% |
|
|
10.8 |
% |
|
|
8.9 |
% |
|
|
6.7 |
% |
|
|
6.2 |
% |
|
|
8.0 |
% |
Adjusted EBIT margin(1)(2) |
|
|
22.0 |
% |
|
|
23.0 |
% |
|
|
12.4 |
% |
|
|
12.4 |
% |
|
|
11.4 |
% |
|
|
11.4 |
% |
Adjusted EBITDA margin(2) |
|
|
30.8 |
% |
|
|
30.9 |
% |
|
|
21.8 |
% |
|
|
21.6 |
% |
|
|
20.9 |
% |
|
|
21.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current maturities |
|
|
|
|
|
|
|
|
|
$ |
6,263 |
|
||||||||||||
Long-term debt to net income ratio |
|
|
|
|
|
|
|
|
|
|
|
|
5.9 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, including current maturities |
|
|
|
|
|
|
|
|
|
$ |
6,263 |
|
||||||||||||
Unamortized discounts and debt issuance costs |
|
|
|
|
|
|
|
|
|
|
31 |
|
||||||||||||
Adjusted debt |
|
|
|
|
|
|
|
|
|
|
|
$ |
6,294 |
|
||||||||||
Leverage ratio(3) |
|
|
|
|
|
|
|
|
|
|
|
|
2.2 |
|
(1) Includes approximately
(2) Net income, Adjusted EBIT and Adjusted EBITDA margins represent net income (loss) attributable to Expedia Group, Inc., Adjusted EBIT or Adjusted EBITDA divided by revenue.
(3) Leverage ratio represents adjusted debt divided by TTM Adjusted EBITDA.
Adjusted Net Income (Loss) & Adjusted EPS
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In millions, except share and per share data) |
||||||||||||||
Net income attributable to Expedia Group, Inc. |
|
$ |
684 |
|
|
$ |
425 |
|
|
$ |
935 |
|
|
$ |
665 |
|
Less: Net loss attributable to non-controlling interests |
|
|
— |
|
|
|
120 |
|
|
|
12 |
|
|
|
113 |
|
Less: Provision for income taxes |
|
|
(190 |
) |
|
|
(139 |
) |
|
|
(284 |
) |
|
|
(295 |
) |
Income before income taxes |
|
|
874 |
|
|
|
444 |
|
|
|
1,207 |
|
|
|
847 |
|
Amortization of intangible assets |
|
|
14 |
|
|
|
14 |
|
|
|
44 |
|
|
|
44 |
|
Stock-based compensation |
|
|
147 |
|
|
|
105 |
|
|
|
365 |
|
|
|
314 |
|
Legal reserves, occupancy tax and other |
|
|
59 |
|
|
|
— |
|
|
|
100 |
|
|
|
6 |
|
Restructuring and related reorganization charges, excluding stock-based compensation |
|
|
6 |
|
|
|
— |
|
|
|
64 |
|
|
|
— |
|
Impairment of goodwill |
|
|
— |
|
|
|
297 |
|
|
|
— |
|
|
|
297 |
|
Impairment of intangible assets |
|
|
33 |
|
|
|
15 |
|
|
|
33 |
|
|
|
15 |
|
Unrealized (gain) loss on revenue hedges |
|
|
(13 |
) |
|
|
(4 |
) |
|
|
(16 |
) |
|
|
11 |
|
(Gain) loss on minority equity investments, net |
|
|
(74 |
) |
|
|
127 |
|
|
|
(121 |
) |
|
|
73 |
|
TripAdvisor tax indemnification adjustment |
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
(67 |
) |
Gain on sale of businesses and cost investments |
|
|
(2 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(24 |
) |
Adjusted income before income taxes |
|
|
1,044 |
|
|
|
998 |
|
|
|
1,665 |
|
|
|
1,516 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP Provision for income taxes |
|
|
(190 |
) |
|
|
(139 |
) |
|
|
(284 |
) |
|
|
(295 |
) |
Provision for income taxes for adjustments |
|
|
(34 |
) |
|
|
(76 |
) |
|
|
(74 |
) |
|
|
(31 |
) |
Total Adjusted provision for income taxes |
|
|
(224 |
) |
|
|
(215 |
) |
|
|
(358 |
) |
|
|
(326 |
) |
Total Adjusted income tax rate |
|
|
21.5 |
% |
|
|
21.5 |
% |
|
|
21.5 |
% |
|
|
21.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Non-controlling interests |
|
|
(11 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
(14 |
) |
Adjusted net income attributable to Expedia Group, Inc. |
|
$ |
809 |
|
|
$ |
778 |
|
|
$ |
1,307 |
|
|
$ |
1,176 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted earnings per share |
|
$ |
5.04 |
|
|
$ |
2.87 |
|
|
$ |
6.75 |
|
|
$ |
4.37 |
|
Amortization of intangible assets |
|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.33 |
|
|
|
0.30 |
|
Stock-based compensation |
|
|
1.11 |
|
|
|
0.73 |
|
|
|
2.71 |
|
|
|
2.11 |
|
Legal reserves, occupancy tax and other |
|
|
0.45 |
|
|
|
— |
|
|
|
0.74 |
|
|
|
0.04 |
|
Restructuring and related reorganization charges |
|
|
0.04 |
|
|
|
— |
|
|
|
0.48 |
|
|
|
— |
|
Impairment of goodwill |
|
|
— |
|
|
|
2.06 |
|
|
|
— |
|
|
|
2.00 |
|
Impairment of intangible assets |
|
|
0.25 |
|
|
|
0.10 |
|
|
|
0.25 |
|
|
|
0.10 |
|
Unrealized (gain) loss on revenue hedges |
|
|
(0.10 |
) |
|
|
(0.03 |
) |
|
|
(0.12 |
) |
|
|
0.08 |
|
(Gain) loss on minority equity investments, net |
|
|
(0.56 |
) |
|
|
0.89 |
|
|
|
(0.90 |
) |
|
|
0.49 |
|
TripAdvisor tax indemnification adjustment |
|
|
— |
|
|
|
— |
|
|
|
(0.05 |
) |
|
|
(0.45 |
) |
Gain on sale of businesses and cost investments |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
|
(0.16 |
) |
Income tax effects and adjustments |
|
|
(0.26 |
) |
|
|
(0.53 |
) |
|
|
(0.55 |
) |
|
|
(0.21 |
) |
Non-controlling interest |
|
|
(0.08 |
) |
|
|
(0.87 |
) |
|
|
(0.09 |
) |
|
|
(0.86 |
) |
Adjustment to GAAP dilutive securities (1) |
|
|
0.15 |
|
|
|
0.08 |
|
|
|
0.20 |
|
|
|
0.12 |
|
Adjusted earnings per share(2) |
|
$ |
6.13 |
|
|
$ |
5.41 |
|
|
$ |
9.70 |
|
|
$ |
7.93 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted weighted average shares outstanding (000's) |
|
|
135,732 |
|
|
|
147,748 |
|
|
|
138,655 |
|
|
|
152,172 |
|
Adjustment to dilutive securities (000's)(1) |
|
|
(3,921 |
) |
|
|
(3,921 |
) |
|
|
(3,921 |
) |
|
|
(3,921 |
) |
Adjusted weighted average shares outstanding (000's) (2) |
|
|
131,811 |
|
|
|
143,827 |
|
|
|
134,734 |
|
|
|
148,251 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Ex-trivago Adjusted Net Income and Adjusted EPS |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income attributable to Expedia Group, Inc. |
|
$ |
809 |
|
|
$ |
778 |
|
|
$ |
1,307 |
|
|
$ |
1,176 |
|
Less: Adjusted net income (loss) attributable to trivago |
|
|
— |
|
|
|
9 |
|
|
|
(1 |
) |
|
|
25 |
|
Adjusted net income excluding trivago |
|
$ |
809 |
|
|
$ |
769 |
|
|
$ |
1,308 |
|
|
$ |
1,151 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per share |
|
$ |
6.13 |
|
|
$ |
5.41 |
|
|
$ |
9.70 |
|
|
$ |
7.93 |
|
Less: Adjusted earnings per (loss) share attributable to trivago |
|
|
— |
|
|
|
0.06 |
|
|
|
(0.01 |
) |
|
|
0.17 |
|
Adjusted earnings per share excluding trivago(2) |
|
$ |
6.13 |
|
|
$ |
5.35 |
|
|
$ |
9.71 |
|
|
$ |
7.76 |
|
(1) In periods for which we have Adjusted net income, the GAAP diluted average shares and diluted earnings (loss) per share is presented adjusted for our convertible debt instruments per the treasury stock method.
(2) Share and per share numbers may not add due to rounding.
Free Cash Flow
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In millions) |
||||||||||||||
Net cash provided by operating activities |
|
$ |
(1,493 |
) |
|
$ |
(1,375 |
) |
|
$ |
2,887 |
|
|
$ |
2,928 |
|
Less: Total capital expenditures |
|
|
(194 |
) |
|
|
(213 |
) |
|
|
(565 |
) |
|
|
(669 |
) |
Free cash flow |
|
$ |
(1,687 |
) |
|
$ |
(1,588 |
) |
|
$ |
2,322 |
|
|
$ |
2,259 |
|
Adjusted Expenses (Cost of revenue, direct and indirect selling and marketing, technology and content and general and administrative expenses)
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||
|
|
(In millions) |
||||||||||||||
Cost of revenue |
|
$ |
388 |
|
$ |
412 |
|
$ |
1,108 |
|
$ |
1,233 |
||||
Less: stock-based compensation |
|
|
3 |
|
|
3 |
|
|
9 |
|
|
10 |
||||
Adjusted cost of revenue |
|
$ |
385 |
|
$ |
409 |
|
$ |
1,099 |
|
$ |
1,223 |
||||
Less: trivago cost of revenue(1) |
|
|
5 |
|
|
5 |
|
|
13 |
|
|
14 |
||||
Adjusted cost of revenue excluding trivago |
|
$ |
380 |
|
$ |
404 |
|
$ |
1,086 |
|
$ |
1,209 |
||||
|
|
|
|
|
|
|
|
|
||||||||
Selling and marketing - direct |
|
$ |
1,855 |
|
$ |
1,671 |
|
$ |
5,298 |
|
$ |
4,737 |
||||
Less: trivago selling and marketing - direct(2) |
|
|
62 |
|
|
71 |
|
|
169 |
|
|
141 |
||||
Adjusted selling and marketing excluding trivago - direct |
|
$ |
1,793 |
|
$ |
1,600 |
|
$ |
5,129 |
|
$ |
4,596 |
||||
|
|
|
|
|
|
|
|
|
||||||||
Selling and marketing - indirect |
|
$ |
197 |
|
$ |
185 |
|
|
580 |
|
|
563 |
||||
Less: stock-based compensation |
|
|
19 |
|
|
20 |
|
|
61 |
|
|
60 |
||||
Adjusted selling and marketing - indirect |
|
$ |
178 |
|
$ |
165 |
|
$ |
519 |
|
$ |
503 |
||||
Less: trivago selling and marketing - indirect(1) |
|
|
3 |
|
|
3 |
|
|
8 |
|
|
8 |
||||
Adjusted selling and marketing excluding trivago - indirect |
|
$ |
175 |
|
$ |
162 |
|
$ |
511 |
|
$ |
495 |
||||
|
|
|
|
|
|
|
|
|
||||||||
Technology and content |
|
$ |
320 |
|
$ |
340 |
|
$ |
992 |
|
$ |
1,001 |
||||
Less: stock-based compensation |
|
|
40 |
|
|
35 |
|
|
120 |
|
|
105 |
||||
Adjusted technology and content |
|
$ |
280 |
|
$ |
305 |
|
$ |
872 |
|
$ |
896 |
||||
Less: trivago technology and content(1) |
|
|
11 |
|
|
11 |
|
|
35 |
|
|
34 |
||||
Adjusted technology and content excluding trivago |
|
$ |
269 |
|
$ |
294 |
|
$ |
837 |
|
$ |
862 |
||||
|
|
|
|
|
|
|
|
|
||||||||
General and administrative |
|
$ |
229 |
|
$ |
194 |
|
$ |
595 |
|
$ |
572 |
||||
Less: stock-based compensation |
|
|
85 |
|
|
47 |
|
|
167 |
|
|
139 |
||||
Adjusted general and administrative |
|
$ |
144 |
|
$ |
147 |
|
$ |
428 |
|
$ |
433 |
||||
Less: trivago general and administrative(1) |
|
|
6 |
|
|
7 |
|
|
23 |
|
|
24 |
||||
Adjusted general and administrative excluding trivago |
|
$ |
138 |
|
$ |
140 |
|
$ |
405 |
|
$ |
409 |
||||
|
|
|
|
|
|
|
|
|
||||||||
Total adjusted overhead expenses(3) |
|
$ |
602 |
|
$ |
617 |
|
$ |
1,819 |
|
$ |
1,832 |
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 B2C direct marketing spend on trivago eliminated in consolidation.
(3) Total adjusted overhead expenses is the sum of adjusted expenses for Selling and marketing - indirect, Technology and content, and General and administrative.
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 Expedia Group, Inc.’s business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed periodic reports on Form 10-K and Form 10-Q, which are available on our investor relations website at ir.expediagroup.com and on the SEC website at www.sec.gov. All information provided in this release is as of November 7, 2024. Undue reliance should not be placed on forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107199085/en/
Investor Relations
ir@expediagroup.com
Communications
press@expediagroup.com
Source: Expedia Group, Inc.
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