Core Insights - Expedia reported quarterly earnings of $7.57 per share, exceeding the Zacks Consensus Estimate of $7.21 per share, and up from $6.13 per share a year ago, representing an earnings surprise of +4.99% [1] - The company generated revenues of $4.41 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.61% and increasing from $4.06 billion year-over-year [2] - Expedia has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of Expedia's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.85 on revenues of $3.27 billion, while for the current fiscal year, the estimate is $14.33 on revenues of $14.34 billion [7] Industry Context - The Internet - Commerce industry, to which Expedia belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - Revenue for Q3 2025 was $4,412 million, a 8.7% increase from $4,060 million in Q3 2024[8] - Operating income for the nine months ended September 30, 2025, reached $1,451 million, up 31.6% from $1,103 million in the same period of 2024[8] - Net income attributable to Expedia Group, Inc. for Q3 2025 was $959 million, compared to $684 million in Q3 2024, representing an increase of 40.4%[10] - Basic earnings per share for Q3 2025 was $7.76, up 47% from $5.28 in Q3 2024[8] - Comprehensive income for Q3 2025 was $957 million, compared to $717 million in Q3 2024, reflecting a 33.5% increase[10] - Net income for the nine months ended September 30, 2025, was $1,089 million, an increase from $923 million in the same period of 2024, representing a growth of 18.0%[20] - Total revenue for the nine months ended September 30, 2025, was $11,186 million, a 6.4% increase from $10,507 million in the same period of 2024[95] - Adjusted EBITDA for the nine months ended September 30, 2025, was $2,653 million, compared to $2,291 million for the same period in 2024, reflecting a 15.8% increase[95] Assets and Liabilities - Total assets as of September 30, 2025, were $25,108 million, an increase from $22,388 million as of December 31, 2024[14] - Cash and cash equivalents increased to $5,826 million as of September 30, 2025, compared to $4,183 million at the end of 2024[14] - The company reported a total current liabilities of $17,262 million as of September 30, 2025, compared to $13,611 million at the end of 2024[14] - The total stockholders' equity decreased to $2,593 million as of September 30, 2025, down from $2,799 million at the end of 2024[14] - Total outstanding debt as of September 30, 2025, was $6.216 billion, a slight decrease from $6.266 billion as of December 31, 2024[55] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $3,576 million, compared to $2,887 million for the same period in 2024, indicating a 24.0% increase[20] - Cash, cash equivalents, and restricted cash at the end of the period were $7,262 million, up from $6,046 million at the end of September 2024, representing a 20.1% increase[20] - The company experienced a net increase in cash, cash equivalents, and restricted cash of $1,688 million for the nine months ended September 30, 2025, compared to an increase of $385 million in 2024[20] - For the nine months ended September 30, 2025, net cash used in investing activities was $332 million, a decrease from $901 million in the prior year period[185] Shareholder Activities - The company paid dividends to stockholders totaling $151 million for the nine months ended September 30, 2025, compared to no dividends paid in the same period of 2024[20] - The company repurchased treasury stock amounting to $1,603 million during the nine months ended September 30, 2025, compared to $1,641 million in 2024[20] - The company repurchased 7.9 million shares for a total cost of $1.4 billion under the 2023 Share Repurchase Program, with an average repurchase price of $179.05 per share[68] Revenue Segments - Lodging accounted for 82% of total worldwide revenue in Q3 2025, with room nights booked growing by 11% compared to 9% in 2024[111] - The B2B segment generated $1,392 million in revenue for Q3 2025, up from $1,178 million in Q3 2024, marking a 17.9% increase[93][94] - The trivago segment generated $137 million in revenue for Q3 2025, an increase from $102 million in Q3 2024, representing a 34.3% growth[93][94] - Merchant revenue model generated $7,766 million for the nine months ended September 30, 2025, compared to $7,228 million in 2024, indicating a 7.4% increase[99] Tax and Legal Matters - The company recorded a reserve of $107 million for potential settlement of Italian VAT obligations for the years 2016 to 2022, with an additional payment of $71 million made in November 2024[82] - A tax audit report from the Guardia di Finanza proposed unpaid withholding tax of €150 million ($175 million) for the years 2017 through 2023, with a reserve of $90 million recorded as of September 30, 2025[84][85] Market Conditions and Risks - The company experienced weaker than expected travel demand in the U.S. during the first half of 2025, but conditions improved in the third quarter[106] - The online travel market remains highly competitive, with emerging markets presenting attractive growth opportunities despite increased competition from various players[109] - The company is facing potential risks from new taxes and aggressive enforcement of existing tax laws, which could impact liquidity[107]

Financial Data and Key Metrics Changes - The company reported a 12% increase in bookings and a 9% increase in revenue for Q3 2025, with EBITDA margin expanding by over two points [5][14][15] - Gross bookings reached $30.7 billion, with a 12% year-over-year growth, benefiting from foreign exchange [15][20] - Adjusted EBITDA was $1.4 billion, with a margin of 33%, reflecting revenue and expense leverage [17][20] Business Line Data and Key Metrics Changes - B2B bookings increased by 26%, marking the 17th consecutive quarter of double-digit growth, while advertising revenue grew by 16% [6][15] - B2C gross bookings were $21.3 billion, growing 7% year-over-year, with B2C revenue at $2.9 billion, up 4% [15][16] - The company saw strong performance in its consumer brands, particularly in Europe, with Expedia being the largest and fastest-growing brand [6][16] Market Data and Key Metrics Changes - In the U.S., room nights increased by high single digits, marking the fastest growth in over three years, while EMEA saw low double-digit growth and Asia over 20% [6][14] - The company experienced strong demand for premium travel, with growth in both high-end and lower-end segments [15] Company Strategy and Development Direction - The company is focused on delivering more value to travelers through personalized experiences and enhanced loyalty programs [7][9] - Investment in B2B and advertising continues to be a priority, with new tools and AI integration driving growth [10][11] - The company is leveraging AI to improve operational efficiencies and enhance customer service [12][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create value for stakeholders, despite monitoring economic indicators [12][20] - The company raised its full-year guidance based on strong Q3 results and ongoing trends [5][20] Other Important Information - The company ended the quarter with $6.2 billion in unrestricted cash and short-term investments, maintaining a strong cash position [19] - Free cash flow on a trailing 12-month basis was $3 billion, reflecting the strength of the operating model [19] Q&A Session Summary Question: Thoughts on B2B growth and competitive environment - Management highlighted exceptional B2B performance, driven by strong supply and technology, with a focus on signing new partners and enhancing product offerings [24][25] Question: Sources of margin expansion - Management identified sales and marketing optimization, cost of sales management, and overhead control as key sources for future margin expansion [31][33] Question: Update on replatforming and brand performance - Management noted that replatforming has enabled better scale and performance across brands, with Hotels.com and Vrbo showing strong results [41][44] Question: Direct bookings and marketing efficiency - Management reported that direct bookings account for about two-thirds of consumer business, with ongoing improvements in conversion rates [68][70] Question: Outlook for Q4 and government shutdown impact - Management expressed confidence in Q4 guidance while monitoring potential impacts from the government shutdown [86][88] Question: International travel dynamics - Management indicated that inbound travel to the U.S. is nearly back to last year's levels, with healthy growth across various corridors [95]

Financial Data and Key Metrics Changes - Bookings increased by 12% and revenue grew by 9%, with EBITDA margin expanding by over 2 points [5][16][17] - Gross bookings reached $30.7 billion, reflecting a 12% year-over-year increase, with a 1-point benefit from foreign exchange [17] - Adjusted EBITDA was $1.4 billion, with a margin of 33%, driven by revenue and expense leverage [19] Business Line Data and Key Metrics Changes - B2C gross bookings were $21.3 billion, growing 7% year-over-year, while B2C revenue increased by 4% to $2.9 billion [18] - B2B gross bookings surged by 26% to $9.4 billion, with B2B revenue growing by 18% [18] - Advertising revenue rose by 16%, marking another double-digit growth quarter [17] Market Data and Key Metrics Changes - In the U.S., room nights increased by high single digits, marking the fastest growth in over three years [7][16] - EMEA saw low double-digit growth in room nights, while Asia experienced over 20% growth [7] - B2B bookings increased for the 17th consecutive quarter, with a 26% rise [7] Company Strategy and Development Direction - The company is focused on delivering more value to travelers through personalized experiences and enhanced product offerings [8][10] - Investment in growth opportunities, particularly in B2B and advertising, is a key strategic priority [10][11] - The integration of AI into products is expected to drive engagement and improve operational efficiencies [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create value amidst a dynamic macro environment [14][15] - The company raised its full-year guidance based on strong demand trends observed in Q3 [6][22] - Economic indicators are being monitored closely, with a focus on maintaining agility in operations [14][22] Other Important Information - The company ended the quarter with $6.2 billion in unrestricted cash and short-term investments [21] - Free cash flow on a trailing 12-month basis was $3 billion, reflecting a strong operating model [21] - The company has $1.8 billion remaining in its share repurchase program [21] Q&A Session Summary Question: Thoughts on B2B growth and competitive environment - Management highlighted exceptional B2B performance, emphasizing strong supply and technology as key growth drivers [26][28] Question: Sources of margin expansion - Margin expansion is expected from optimized sales and marketing, improved cost of sales, and overhead management [34][35] Question: Update on replatforming and brand performance - Replatforming has enabled better scale and performance across brands, with Hotels.com and Vrbo showing strong growth [41][44] Question: Direct bookings and marketing efficiency - Direct bookings account for about two-thirds of consumer business, with ongoing improvements in conversion rates [68][70] Question: U.S. room nights acceleration drivers - Room nights growth was driven by strong performance across both consumer and B2B segments [73][75] Question: Outlook for Q4 amidst potential government shutdown - Guidance reflects stable trends, with monitoring of the government shutdown's potential impact on travel demand [86][89]

Financial Data and Key Metrics Changes - Bookings increased by 12% and revenue grew by 9%, with EBITDA margin expanding by over two points [4][14] - Gross bookings reached $30.7 billion, up 12%, while revenue was $4.4 billion, reflecting a 2.5-point benefit from foreign exchange [15][19] - Adjusted EBITDA was $1.4 billion, with a margin of 33%, and adjusted EPS grew by 23% to $7.57 [17][19] Business Line Data and Key Metrics Changes - B2C gross bookings were $21.3 billion, growing by 7%, while B2C revenue increased by 4% to $2.9 billion [15][16] - B2B gross bookings surged by 26% to $9.4 billion, with B2B revenue growing by 18% [16][19] - Advertising revenue rose by 16%, marking another double-digit growth quarter [15][19] Market Data and Key Metrics Changes - In the U.S., room nights increased by high single digits, marking the fastest growth in over three years [5][14] - EMEA saw low double-digit growth in room nights, while the rest of the world, including Asia, experienced high teens growth, with over 20% in Asia [5][14] - B2B bookings increased for the 17th consecutive quarter, reflecting strong demand across all regions [5][16] Company Strategy and Development Direction - The company is focused on delivering more value to travelers through personalized experiences and enhanced loyalty programs [6][8] - Continued investment in B2B growth opportunities and advertising, leveraging AI for improved targeting and measurement [9][10] - The company aims to drive operational efficiencies and margin expansion, with a focus on marketing leverage and cost management [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create value for stakeholders, despite monitoring economic indicators [12][20] - The demand environment improved, with expectations for continued momentum into Q4, although growth may moderate due to tougher comparisons [19][78] - The company is prepared for potential impacts from external factors, such as government shutdowns, while maintaining a strong outlook for Q4 [79][80] Other Important Information - The company ended the quarter with $6.2 billion in unrestricted cash and short-term investments, with a commitment to maintaining investment-grade debt levels [18] - Free cash flow for the trailing 12 months was $3 billion, reflecting a strong operating model [18] Q&A Session Summary Question: Thoughts on B2B growth and competitive environment - Management highlighted exceptional B2B performance, driven by strong supply and technology, with a focus on signing new partners and enhancing product offerings [23][25] Question: Sources of future margin expansion - Future margin expansion is expected from optimized sales and marketing, improved cost of sales, and overhead management [27][30] Question: Update on replatforming and brand performance - Replatforming has enabled better scale and performance across brands, with Hotels.com and Vrbo showing strong growth due to recent enhancements [37][41] Question: Direct bookings and marketing efficiency - Direct bookings account for about two-thirds of consumer business, with improvements in conversion rates and traffic metrics noted [60][62] Question: Outlook for Vrbo and market share - Vrbo is believed to have maintained or grown market share in the U.S., with positive growth in bookings and room nights [75] Question: Impact of government shutdown on guidance - Guidance reflects stable trends observed in October, with preparations for potential impacts from external events factored into the outlook [78][80]

Core Viewpoint - Expedia reports an "improved demand environment" across all segments, indicating a positive trend in travel bookings and consumer interest [1] Group 1: Demand and Performance - The company has observed a significant increase in travel demand, suggesting a recovery in the travel industry post-pandemic [1] - Expedia's various business segments are experiencing growth, reflecting a broad-based improvement in consumer travel behavior [1] Group 2: Market Trends - The overall travel market is showing signs of resilience, with consumers increasingly willing to spend on travel experiences [1] - This trend may lead to further investment opportunities within the travel and hospitality sectors as demand continues to rise [1]

Core Insights - Expedia Group reported strong financial results, with adjusted EPS of $7.57 exceeding the consensus estimate of $6.95, indicating robust performance in earnings [1] - The company experienced an acceleration in gross bookings across both consumer and B2B channels, reflecting positive trends in its business operations [1] Financial Performance - Adjusted EPS reached $7.57, significantly higher than the expected $6.95, showcasing effective cost management and revenue generation strategies [1] - The growth in gross bookings suggests a healthy demand for travel services, which is a positive indicator for the company's future revenue potential [1]

Core Insights - Expedia reported earnings per share (EPS) of $757, exceeding estimates of $692, indicating strong financial performance [1] - Revenue also surpassed expectations, coming in at $4.1 billion compared to estimates of $4.28 billion [1] - Booked room nights reached 108 million, exceeding estimates of 103.87 million, reflecting robust consumer demand [1][2] - The company anticipates fourth quarter revenue growth of 6 to 8%, significantly higher than the estimated 2.7% [1] Market Reaction - Shares of Expedia increased by almost 9% following the earnings report, indicating positive market sentiment [2] - The strong report suggests that consumers are willing to spend discretionary income on travel, which is a positive sign for the industry [2][3] - The upcoming holiday travel season is expected to benefit from this strong consumer spending trend [3] Performance Context - The reported numbers are considered "huge" and well above expectations, which is crucial for favorable market reactions [3][4] - The performance indicates a strong consumer base, although it is important to monitor which segments of consumers are driving this spending [3]

Q3 2025 Earnings N O V E M B E R 2 0 2 5 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains "forward-looking statements" about Expedia Group's financial performance, operating results, and guidance, which may include, but are not limited to, statements relating to future gross bookings; revenues; expenses; margins and margin expansion, including EBITDA margin expansion; profitability; net income (loss); earnings per share; and other measures of result ...

Core Insights - Expedia reported Q3 CY2025 revenue of $4.41 billion, exceeding Wall Street expectations by 2.9% with an 8.7% year-on-year growth [1][5][8] - The company provided a positive revenue guidance for Q4 CY2025 at $3.41 billion, which is 4.2% above analyst estimates [1][5][8] - Non-GAAP profit per share was $7.57, surpassing analysts' consensus by 9% [1][8] Company Overview - Expedia, originally part of Microsoft, is recognized as one of the leading online travel agencies globally [3] Revenue Growth - Over the last three years, Expedia's sales grew at a compounded annual growth rate of 8.3%, which is below the benchmark for the consumer internet sector [4] - The current quarter's revenue growth of 8.7% is a positive sign, but future projections indicate a slowdown, with analysts expecting a 4.5% revenue growth over the next 12 months [5] Financial Performance - Adjusted EBITDA for the quarter was $1.45 billion, with a margin of 32.8%, exceeding analyst expectations [8] - Operating margin improved to 23.5%, up from 18.8% in the same quarter last year [8] - Free cash flow was reported at -$686 million, a decline from $921 million in the previous quarter [8] Booking Growth - Revenue generation is driven by increasing the number of stays booked and the commissions charged on those bookings [9]