Core Insights - Expedia Group has enhanced its B2B segment, Private Label Solutions, by introducing new APIs that facilitate the creation of travel packages for partners [1][3] - The new offerings include access to rental cars, bookable experiences, trip protection insurance, and air travel, aiming to provide an all-in-one booking experience [1][2] B2B Segment Developments - The Car API will provide access to vehicles from 110 brands across 190 countries and territories, while the Activities API will offer 170,000 bookable experiences globally [2] - The Insurance API will enable partners to offer trip protection during the booking process, and the Air API will integrate air travel with lodging and car rentals [2][3] - A new Reservation Management API has been introduced to assist hoteliers with bookings, management, data recovery, payments, and enhancing traveler experience [3] Marketing and Advertising Innovations - Expedia Trip Matching, set to launch in early June on Instagram, will allow travelers to share travel-related content and receive customized itineraries and travel tips [4] - Expedia Group Advertising has introduced tools for travel advertisers to co-create shoppable travel content and utilize first-party data to target high-intent audiences [4] Growth and Partnerships - The Private Label Solutions segment collaborates with over 60,000 partner firms, including airlines, banks, and travel agencies, to integrate Expedia offerings into their consumer-facing operations [5] - B2B operations have been among Expedia's fastest-growing segments, with revenue increasing by double-digit percentages last year [6]

Summary of Expedia Group (EXPE) Update / Briefing May 14, 2025 Industry Overview - The travel and tourism industry contributed over $11 trillion to the global economy last year, projected to grow to $16.5 trillion by 2035, indicating significant growth opportunities for the industry [4][4][4]. Core Company Insights - **Partnerships**: Emphasized the importance of collaboration within the travel ecosystem, highlighting successful partnerships such as with Southwest Airlines, which enhances customer experience by integrating flights with hotels and car rentals [6][6][6]. - **Innovation**: Focus on leveraging AI to enhance travel experiences, including AI-powered search and personalized recommendations, which are transforming how travelers discover and book travel [10][10][10]. - **Optimism**: Despite economic uncertainties, the company remains optimistic about the travel industry's resilience, noting that over half of consumers value travel more now than five years ago [16][16][16]. Key Developments - **AI Integration**: The company is actively integrating AI across its product offerings, aiming to create a seamless trip planning experience. This includes partnerships with tech giants like Microsoft and OpenAI [10][10][10]. - **Marketplace Growth**: The Expedia Group Marketplace connects over 3 million supply partners, including hotels, airlines, and car rentals, facilitating a comprehensive travel ecosystem [22][22][22]. - **Demand Insights**: The Asian middle class is expected to grow significantly, with 70% of the world's middle class residing in Asia by 2030, presenting a major market opportunity [35][35][35]. Financial Performance - The European air ticket segment is currently growing at 50%, indicating strong demand in that market [26][26][26]. - The B2B business in Asia grew over 30% last year, showcasing the company's expanding reach [36][36][36]. Customer Insights - **Traveler Demographics**: The average Hotels.com customer travels about eight times a year, with a significant portion being business travelers. This demographic is characterized by spontaneity and a preference for hassle-free travel experiences [46][46][46]. - **Family Travel Trends**: Families are increasingly booking vacation rentals, with a focus on longer stays and unique experiences [70][70][70]. Product Innovations - **Loyalty Programs**: The One Key loyalty program has been successful in driving customer engagement, with significant participation from hotel partners [52][52][52]. - **AI Features**: New AI-driven features include property highlights and a Q&A system that enhances customer confidence and engagement [109][109][109]. Marketing and Advertising - The company is enhancing its advertising products using AI to improve campaign efficiency and effectiveness, which is crucial for partners looking to drive visibility and sales [98][98][98]. Conclusion - Expedia Group is positioned to capitalize on the growing travel market through strategic partnerships, innovative technology, and a focus on customer experience, while maintaining a positive outlook despite macroeconomic challenges [20][20][20].

Core Insights - Expedia Group (EXPE) reported first-quarter 2025 adjusted earnings of 40 cents per share, missing the Zacks Consensus Estimate by 4.76%, but showing a year-over-year increase of 90.5% [1] - Revenues for the quarter were $2.98 billion, a 3.4% year-over-year increase, but also missed the Zacks Consensus Estimate by 1.27% [2] - Total gross bookings rose to $31.5 billion, reflecting a 4% year-over-year increase, with B2B bookings growing significantly [3] Financial Performance - Adjusted EBITDA for the quarter was $296 million, up 16.1% year over year [4] - Adjusted EBIT decreased 65% year over year to negative $21 million [5] - Cash and cash equivalents increased to $6.1 billion from $4.5 billion since the end of 2024, while long-term debt decreased to $4.465 billion [6] Operational Highlights - B2B revenues increased by 13.7% year over year to $947 million, while B2C revenues decreased by 1.5% to $1.96 billion [2] - Lodging gross bookings grew 5% year over year to $23.03 billion, with hotel bookings climbing 6% [3] - Booked room nights rose 6% from the previous year to 107.7 million [3] Future Guidance - For Q2 2025, EXPE expects gross bookings growth in the range of 2-4% and revenue growth of 3-5% [7] - The company anticipates adjusted EBITDA margins to increase by 75-100 basis points year over year [7] - For the full year 2025, EXPE projects gross bookings and revenue growth in the 2% to 4% range [7]

Group 1: Market Overview - U.S. stock futures were higher, with Nasdaq futures gaining around 0.5% on Friday [1] Group 2: Company-Specific Performance - Expedia Group, Inc. reported Q1 revenue of $2.99 billion, a 3% year-over-year increase, but missed the consensus estimate of $3.01 billion, leading to a 9.8% drop in shares to $152.40 in pre-market trading [1] - Jade Biosciences, Inc. shares tumbled 44.4% to $5.00 in pre-market trading [4] - Iovance Biotherapeutics, Inc. shares dipped 35.6% to $2.04 after reporting worse-than-expected Q1 results [4] - Profound Medical Corp. fell 34.7% to $3.25 following downbeat quarterly earnings [4] - Globus Medical, Inc. tumbled 17.2% to $60.00 after reporting disappointing Q1 results and cutting FY25 adjusted EPS guidance [4] - FIGS, Inc. fell 16.2% to $4.22 after reporting Q1 results [4] - Wolfspeed, Inc. declined 13.2% to $3.84 after mixed quarterly results [4] - Onto Innovation Inc. dipped 11.6% to $112.00 after issuing a weak Q2 forecast [4] - OUTFRONT Media Inc. declined 7% to $14.31 following downbeat quarterly results [4] - Grindr Inc. dipped 6.7% to $22.80 after reporting worse-than-expected quarterly sales [4] - Affirm Holdings, Inc. dipped 6.3% to $50.82 following third-quarter results [4] - HubSpot, Inc. fell 4.7% to $629.00 after reporting Q1 results and issuing second-quarter adjusted EPS guidance below estimates [4]

Core Insights - The article highlights the growing influence of social media on travel decisions, particularly among millennials, with 80% relying on it for inspiration and planning [1][5] - Expedia has launched a new feature called Expedia® Trip Matching, which allows users to create travel itineraries directly from Instagram content, showcasing the company's commitment to innovation and meeting the needs of modern travelers [2][4] Company Overview - Expedia is recognized as one of the leading full-service travel brands, aiming to provide comprehensive travel solutions to enhance the travel experience for its users [3] - The company emphasizes its ability to understand traveler needs through insights and technology, offering a wide range of products across accommodations, transportation, and activities [4] New Feature Details - Expedia® Trip Matching is currently in beta and will soon be available to U.S. travelers, integrating AI-powered travel planning with Instagram [2] - The process involves users finding travel inspiration on Instagram, sharing it with Expedia, and receiving personalized travel recommendations and itineraries in response [5]

Core Insights - Expedia reported $2.99 billion in revenue for Q1 2025, a year-over-year increase of 3.4%, with an EPS of $0.40 compared to $0.21 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $3.03 billion, resulting in a surprise of -1.27%, while the EPS also missed the consensus estimate of $0.42 by -4.76% [1] Financial Performance Metrics - Gross bookings totaled $31.45 billion, slightly below the average estimate of $31.85 billion [4] - Stayed room nights were 108, exceeding the average estimate of 106, with a growth rate of 6%, lower than the 8.1% average estimate [4] - Merchant gross bookings were $18.21 billion, compared to the estimated $18.83 billion [4] - International revenue was $1.16 billion, below the average estimate of $1.22 billion, but showed a year-over-year increase of 5.6% [4] - U.S. revenue reached $1.83 billion, slightly below the estimated $1.85 billion, reflecting a 2.1% year-over-year increase [4] - B2C revenue was $1.96 billion, below the average estimate of $2.04 billion, while B2B revenue was $947 million, exceeding the estimate of $924.59 million, marking a 13.7% year-over-year increase [4] - Revenue from lodging was $2.29 billion, below the estimate of $2.36 billion, with a year-over-year increase of 2.7% [4] - Revenue from Trivago was $85 million, surpassing the estimate of $74.76 million, with a significant year-over-year increase of 21.4% [4] - Air revenue was $107 million, below the estimated $114.41 million, reflecting a year-over-year decrease of 7% [4] - Other revenue was $333 million, below the estimate of $352.60 million, with a slight year-over-year increase of 0.6% [4] Stock Performance - Expedia shares returned +3% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Expedia reported quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.42 per share, but showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of -4.76% [1] - The company posted revenues of $2.99 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.27%, compared to $2.89 billion in the same quarter last year [2] - Over the last four quarters, Expedia has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed, losing about 10.6% since the beginning of the year, while the S&P 500 declined by -4.3% [3] - The current consensus EPS estimate for the coming quarter is $4.05 on revenues of $3.74 billion, and for the current fiscal year, it is $14.31 on revenues of $14.33 billion [7] - The Zacks Industry Rank indicates that the Internet - Commerce sector is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8]

Revenue Performance - Revenue for the three months ended March 31, 2025, was $2,988 million, an increase of 3.4% compared to $2,889 million in the same period of 2024[8]. - Total revenue for Q1 2025 reached $2,988 million, up from $2,889 million in Q1 2024, representing a 3.4% growth[84][85]. - Total revenue for the three months ended March 31, 2025, was $2,988 million, a 3% increase from $2,889 million in the same period of 2024[131]. - B2C segment revenue was $1,956 million in Q1 2025, slightly down from $1,986 million in Q1 2024, indicating a 1.5% decline[84][85]. - B2B segment revenue increased to $947 million in Q1 2025 from $833 million in Q1 2024, marking a significant growth of 13.7%[84][85]. - The trivago segment generated $131 million in revenue for Q1 2025, compared to $110 million in Q1 2024, which is a 19.1% increase[84][85]. - Merchant revenue increased by 4% to $2,046 million, primarily due to an increase in merchant lodging revenue[131]. - Agency revenue decreased by 4% to $652 million, mainly due to a decline in agency lodging and air revenue[131]. Net Loss and Financial Performance - Net loss attributable to Expedia Group, Inc. for Q1 2025 was $200 million, compared to a net loss of $135 million in Q1 2024, representing a 48.1% increase in loss[8]. - Comprehensive loss attributable to Expedia Group, Inc. for Q1 2025 was $188 million, compared to a comprehensive loss of $148 million in Q1 2024, reflecting a 27.0% increase[10]. - For the three months ended March 31, 2025, the net loss was $197 million, compared to a net loss of $136 million for the same period in 2024, representing a 45% increase in losses[19]. - Basic loss per share attributable to common stockholders for Q1 2025 was $(1.56), compared to $(0.99) in Q1 2024, indicating a deterioration in per-share performance[8]. - Operating loss for the three months ended March 31, 2025, was $70 million, an improvement from an operating loss of $110 million in the same period of 2024[8]. - Adjusted EBITDA for Q1 2025 was $296 million, compared to $255 million in Q1 2024, reflecting a 16.1% increase year-over-year[84][85]. - The cost of revenue for Q1 2025 was $354 million, up from $355 million in Q1 2024, showing a slight decrease of 0.3%[84][85]. - Selling and marketing expenses for Q1 2025 totaled $1,803 million, compared to $1,690 million in Q1 2024, reflecting a 6.7% increase[84][85]. Assets and Cash Flow - Total current assets increased to $13,587 million as of March 31, 2025, up from $9,815 million at the end of 2024, reflecting a 38.3% growth[14]. - Cash and cash equivalents rose to $5,715 million as of March 31, 2025, compared to $4,183 million at December 31, 2024, indicating a 36.6% increase[14]. - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $7,734 million, an increase from $7,622 million at the end of Q1 2024[19]. - Net cash provided by operating activities for Q1 2025 was $2,952 million, an increase of 2.5% from $2,879 million in Q1 2024[19]. - Total assets as of March 31, 2025, were $26,114 million, an increase from $22,388 million at the end of 2024, representing a 16.3% growth[14]. Debt and Equity - Total debt as of March 31, 2025, was $6,211 million, a slight decrease from $6,266 million as of December 31, 2024[49]. - The company early redeemed approximately $1 billion of 6.25% senior unsecured notes in February 2025, resulting in an immaterial loss on debt extinguishment[50]. - In February 2025, the company issued $1 billion of 5.4% senior unsecured notes due in February 2035, with net proceeds of approximately $985 million after deducting discounts and issuance costs[52]. - The company authorized a program to repurchase up to $5 billion of common stock, with $2.9 billion remaining as of March 31, 2025[60]. - The company repurchased 1,742,115 shares of common stock for $330 million during Q1 2025, compared to $606 million for 4,319,981 shares in Q1 2024[19]. Market and Operational Insights - The company experienced weaker than expected travel demand in the U.S. during Q1 2025, which may impact future operational results[95]. - Emerging markets continue to present attractive growth opportunities for the company, despite increased competition from online travel agencies and alternative accommodation providers[98]. - Lodging accounted for 77% of total worldwide revenue in Q1 2025, with room nights booked growing 6% compared to 9% in 2024 and 12% in 2023[100]. - Gross bookings increased by 4% to $31.451 billion in Q1 2025, driven primarily by lodging gross bookings[125][126]. - The company launched One Key, a unified loyalty program across Brand Expedia, Hotels.com, and Vrbo, enhancing customer engagement[117]. Other Financial Metrics - The effective tax rate for the three months ended March 31, 2025, was 9.2%, down from 12.4% for the same period in 2024[68]. - Stock-based compensation expense for Q1 2025 was $116 million, slightly lower than $118 million in Q1 2024[19]. - The company recorded approximately $8 million of incremental allowance for expected uncollectible accounts during the three months ended March 31, 2025[38]. - The company experienced a foreign exchange loss of $37 million in Q1 2025, compared to a gain of $30 million in Q1 2024[19]. - The effect of exchange rate changes resulted in a net increase of $61 million in cash and cash equivalents during Q1 2025[19].

Financial Data and Key Metrics Changes - In Q1 2025, Expedia Group reported a 43% increase in bookings and revenue, which was at the lower end of their guidance range due to weaker travel demand in the U.S. [6][7] - EBITDA grew by 16%, and earnings per share increased by 90% [7][22] - Booked room nights grew by 6%, with low single digits growth in the U.S., mid single digits in Europe, and mid-teens growth in the rest of the world [7][22] - Total gross bookings reached $31.5 billion, up 4%, while revenue grew by 3% to $3 billion [24][26] Business Line Data and Key Metrics Changes - The B2B business saw a 14% increase in bookings, significantly outperforming the industry [8][22] - The advertising business delivered a robust 20% revenue growth, with a record number of deals signed [9][15] - Brand Expedia was the fastest-growing consumer brand with room nights up 7%, while Vrbo grew modestly and Hotels.com experienced a decline due to softer U.S. demand [9][10] Market Data and Key Metrics Changes - U.S. demand was soft, with inbound travel bookings down 7%, particularly from Canada, which fell nearly 30% [25][60] - The average daily rates (ADR) were $214, down 1%, although up 1% on an FX neutral basis [24][30] - The B2B segment benefited from strong international performance, particularly in APAC, which grew by 30% [23][30] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operational efficiencies [10][19] - AI is being leveraged to enhance product offerings, improve marketing effectiveness, and streamline operations [13][80] - The company aims to improve its loyalty program and has made adjustments to better serve travelers [108][110] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment but expressed confidence in the company's ability to adapt and continue delivering value [21][121] - The company expects Q2 gross bookings growth of 2% to 4% and revenue growth of 3% to 5%, with EBITDA margin expansion of 75 to 100 basis points [35][36] - Management highlighted the importance of maintaining a diversified B2B business to mitigate risks from macro headwinds [49][117] Other Important Information - The company ended the quarter with $6.1 billion in unrestricted cash and short-term investments [33][34] - A quarterly dividend of $0.40 per share was reinitiated, and share repurchases were accelerated [34] Q&A Session Summary Question: Marketing spend and ROI - Management indicated that they spent about $1 billion on marketing in Q1, slightly deleveraging, and will focus on profitable growth opportunities [39][42] Question: Hotels.com turnaround - Management expressed optimism about Hotels.com, noting recent brand relaunch efforts and positive momentum [40][41] Question: Managing macro headwinds - Management highlighted the strength and diversity of the B2B business, which is well-positioned to handle macroeconomic challenges [48][49] Question: Monthly trends and consumer behavior - Management noted a slowdown in April compared to March, with a shift towards lower ADR rate plans and increased discounts from hotel partners [60] Question: Experiences and attractions investment - Management acknowledged the growing importance of experiences and attractions but did not provide specific investment details [65][69] Question: AI investments - Management discussed the strategic importance of AI in enhancing products, driving traffic, and improving team effectiveness [75][80] Question: Booking curve and international rollout - Management noted a mixed picture in booking windows and highlighted strong growth in the B2B segment, particularly in Asia [89][90] Question: B2B performance and advertising impact - Management confirmed that while B2B experienced some pressure, it remained diversified and continued to grow, with advertising business prospects remaining strong [115][117]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a 43% increase in bookings and revenue, which was at the lower end of the guidance range due to weaker travel demand in the U.S. [5][22] - EBITDA grew by 16%, and earnings per share increased by 90% [5][22] - Booked room nights grew by 6%, with low single digits growth in the U.S., mid single digits in Europe, and mid-teens growth in the rest of the world [6][22] Business Line Data and Key Metrics Changes - The B2B business posted a 14% bookings growth, outperforming the industry [7][22] - The advertising business achieved a robust 20% revenue growth [8][22] - Brand Expedia was the fastest-growing consumer brand with room nights up 7%, while Vrbo grew modestly and Hotels.com experienced a decline due to softer U.S. demand [8][22] Market Data and Key Metrics Changes - U.S. demand was soft, driven by declining consumer sentiment, with inbound travel to the U.S. down 7% and bookings from Canada falling nearly 30% [6][25] - The company noted a shift in consumer behavior, with travelers opting for lower average daily rates [61] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operational efficiencies [9][18] - AI is being leveraged to enhance product experiences, improve marketing effectiveness, and streamline operations [13][80] - The company is expanding its B2B business and enhancing advertising solutions to drive future growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment but expressed confidence in the company's ability to navigate challenges and continue delivering value [21][120] - The company expects Q2 2025 gross bookings growth of 2% to 4% and revenue growth of 3% to 5%, with EBITDA margin expansion of 75 to 100 basis points [36][37] Other Important Information - The company ended the quarter with $6.1 billion in unrestricted cash and short-term investments and maintained a total debt of $6.3 billion [34][35] - The company reinitiated a quarterly dividend of $0.40 per share and accelerated stock repurchases [35] Q&A Session Summary Question: Marketing spend and ROI - Management indicated that they spent about $1 billion on marketing in Q1 and will focus on profitable growth opportunities while reducing costs where necessary [45][46] Question: Hotels.com turnaround - Management expressed optimism about Hotels.com, highlighting recent brand relaunch efforts and positive momentum [44][46] Question: Managing macro headwinds - Management noted the B2B business's geographic and segment diversity, which helps mitigate macroeconomic pressures [51][52] Question: Monthly trends and consumer behavior - Management reported that April was softer than March, with a shift towards lower average daily rates and increased discounts from hotel partners [61] Question: Experiences and attractions investment - Management acknowledged the growing importance of experiences and attractions but did not provide specific investment details [70] Question: AI investments - Management discussed the strategic importance of AI in enhancing products, driving traffic, and improving team effectiveness [76][80] Question: Booking curve and international rollout - Management noted a mixed picture in booking windows, with slight expansion for hotels and decline for vacation rentals, while the B2B business showed strong growth in Asia [88][89] Question: B2B performance and advertising impact - Management confirmed that while the B2B business faced some pressure from U.S. softness, it remained globally diversified and continued to grow [118][119]