Expedia Group(EXPE)2024-11-07 21:03Revenue and Bookings Growth - Booked room nights grew 9% year-over-year to 97.4 million in Q3 2024, with Brand Expedia growing at mid-teens[2][6] - Total gross bookings increased 7% year-over-year to 20.0 billion in Q3 2024, with hotel bookings up 10%[2] - Revenue increased 3% year-over-year to 1.2 billion in Q3 2024[2] - Revenue for Q3 2024 increased to 3,929 million in Q3 2023[16] - Units sold increased to 101.2 million in Q1 2024, up from 94.5 million in Q1 2023, representing a 7.1% growth[14] - Gross bookings for the Merchant business model reached 15.976 billion in Q1 2023[14] - Lodging gross bookings grew to 21.055 billion in Q1 2023[14] - B2C revenue rose to 1.921 billion in Q1 2023[14] - Total revenue for Q1 2024 was 2.665 billion in Q1 2023[14] - Lodging revenue increased to 2.029 billion in Q1 2023[14] - U.S. points of sale revenue reached 1.748 billion in Q1 2023[14] - Non-U.S. points of sale revenue grew to 917 million in Q1 2023[14] Profitability and Earnings - Net income attributable to Expedia Group increased 61% year-over-year to 5.04 in Q3 2024[6] - Net income for Q3 2024 rose to 305 million in Q3 2023[16] - Earnings per share (diluted) for Q3 2024 improved to 2.87 in Q3 2023[16] - Net income margin for Q3 2024 was 16.9%, compared to 10.8% in Q3 2023[39] - Adjusted net income attributable to Expedia Group, Inc. for the three months ended September 30, 2024, was 778 million in the same period in 2023[40] - Adjusted earnings per share (EPS) for the three months ended September 30, 2024, was 5.41 in the same period in 2023[40] - Adjusted net income excluding trivago for the three months ended September 30, 2024, was 769 million in the same period in 2023[42] - Adjusted EPS excluding trivago for the three months ended September 30, 2024, was 5.35 in the same period in 2023[42] - Adjusted net income attributable to Expedia Group, Inc. for the nine months ended September 30, 2024, was 1,176 million in the same period in 2023[43] - Adjusted EPS for the nine months ended September 30, 2024, was 7.93 in the same period in 2023[43] - Adjusted net income excluding trivago for the nine months ended September 30, 2024, was 1,151 million in the same period in 2023[43] - Adjusted EPS excluding trivago for the nine months ended September 30, 2024, was 7.76 in the same period in 2023[43] - Net income attributable to Expedia Group, Inc. was (145) million in Q1 2023[14] - Net income for the nine months ended September 30, 2024, was 552 million for the same period in 2023[18] Share Repurchases and Capital Allocation - Expedia Group repurchased 12.0 million shares for 1.641 billion for the nine months ended September 30, 2024, compared to 23,405 million, compared to 4,722 million as of September 30, 2024, up from 3,764 million in September 2024, up from 5,221 million as of September 30, 2024, from 14,787 million as of September 30, 2024, from 9,413 million in September 2024, up from 6,263 million, with a leverage ratio of 2.2[39] - Cash, cash equivalents, and restricted cash at the end of the period were 6.492 billion in 2023[18] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2024, was 2.928 billion in 2023[18] - Capital expenditures, including internal-use software and website development, were 669 million in 2023[18] - Free cash flow for the nine months ended September 30, 2024, was 2,259 million in the same period in 2023[44] - Total capital expenditures for the nine months ended September 30, 2024, were 669 million in the same period in 2023[44] Adjusted Financial Metrics - Adjusted EBITDA is a key non-GAAP measure used by Expedia Group to evaluate performance, excluding items like stock-based compensation and acquisition-related impacts[26] - Adjusted EBIT is another non-GAAP measure that excludes unpredictable items and allows for a more comprehensive comparison of performance[28] - Adjusted Net Income (Loss) captures normal operational items and excludes certain expenses not tied to core operations, providing a clearer picture of financial health[30] - Adjusted Net Income for 2023 and 2024 is computed using a 21.5% effective tax rate[32] - Adjusted EPS is calculated by dividing Adjusted Net Income by adjusted weighted average shares outstanding, considering dilution from convertible debt instruments[32] - Free Cash Flow is defined as net cash flow from operating activities less capital expenditures, representing operating cash flow before non-core cash movements[33] - Adjusted Expenses exclude stock-based compensation, which is considered non-cash and not reflective of ongoing cash operating expenses[34] - Expedia Group reports results both in total and excluding trivago to provide transparency on the transaction-based component of the business[35] - Adjusted EBITDA for Q3 2024 was 1,028 million and B2B contributing 1,216 million, with B2C contributing 266 million[37] - Adjusted EBITDA margin for Q3 2024 was 30.8%, slightly lower than 30.9% in Q3 2023[39] - Adjusted EBITDA for B2C segment was 148 million in Q1 2023[14] - Adjusted cost of revenue for the three months ended September 2024 was 409 million in the same period in 2023[46] - Adjusted selling and marketing expenses excluding trivago for the three months ended September 2024 were 1.600 billion in 2023[46] - Adjusted technology and content expenses excluding trivago for the three months ended September 2024 were 294 million in 2023[46] - Adjusted general and administrative expenses excluding trivago for the three months ended September 2024 were 140 million in 2023[46] - Total adjusted overhead expenses for the three months ended September 2024 were 617 million in 2023[46] - Adjusted cost of revenue for the nine months ended September 2024 was 1.223 billion in the same period in 2023[46] - Adjusted selling and marketing expenses excluding trivago for the nine months ended September 2024 were 4.596 billion in 2023[46] - Adjusted technology and content expenses excluding trivago for the nine months ended September 2024 were 862 million in 2023[46] - Adjusted general and administrative expenses excluding trivago for the nine months ended September 2024 were 409 million in 2023[46] - Total adjusted overhead expenses for the nine months ended September 2024 were 1.832 billion in 2023[46] Guidance and Future Outlook - Expedia Group raised its full-year guidance following strong Q3 2024 results[1]