Expedia Group(EXPE) - 2024 Q2 - Quarterly Results

Financial Performance - Gross bookings for Q2 2024 reached $28.8 billion, a 6% increase compared to Q2 2023[7] - Revenue for Q2 2024 was $3.6 billion, up 6% from $3.4 billion in Q2 2023[5] - Adjusted EBITDA increased by 5% to $786 million, with a margin contraction of 15 basis points compared to the previous year[7] - Net income attributable to Expedia Group, Inc. was $386 million, with adjusted net income at $469 million, a 10% increase year-over-year[7] - Free cash flow for the quarter was $1.3 billion, representing a 42% increase compared to the same period last year[7] - B2B revenue reached $1.0 billion, marking a 22% increase compared to Q2 2023[7] - Revenue for the three months ended June 30, 2024, increased to $3,558 million, up 6% from $3,358 million in the same period of 2023[18] - Operating income for the six months ended June 30, 2024, was $341 million, compared to $322 million for the same period in 2023, reflecting a 5.9% increase[18] - Net income attributable to Expedia Group, Inc. for the three months ended June 30, 2024, was $386 million, slightly up from $385 million in 2023[18] - Basic earnings per share for the three months ended June 30, 2024, was $2.92, compared to $2.62 in the same period of 2023, representing an increase of 11.5%[18] Cash Flow and Assets - Cash and cash equivalents as of June 30, 2024, totaled $6,242 million, an increase from $4,225 million as of December 31, 2023[19] - Total current assets increased to $13,515 million as of June 30, 2024, compared to $9,230 million at the end of 2023, marking a 46.5% increase[19] - Net cash provided by operating activities for the six months ended June 30, 2024, was $4,380 million, up from $4,303 million in the same period of 2023[21] - Total assets as of June 30, 2024, were $25,893 million, compared to $21,642 million at the end of 2023, reflecting a growth of 19.9%[19] - Total stockholders' equity decreased to $2,126 million as of June 30, 2024, from $2,786 million at the end of 2023, a decline of 23.7%[19] Operational Metrics - Booked room nights totaled 98.9 million, reflecting a 10% year-over-year growth[5] - Lodging gross bookings grew to $20.7 billion, an 8% increase year-over-year, with hotel bookings up 11%[7] - The B2C segment reported an operating income of $654 million for Q2 2024, up from $653 million in Q2 2023, indicating stable performance[43] - The total operating income for the B2B segment in Q2 2024 was $263 million, compared to $206 million in Q2 2023, showing a significant increase of 27.7%[43] Adjusted Metrics - Adjusted EBITDA for the three months ended June 30, 2024, was $786 million, compared to $747 million for the same period in 2023, reflecting a year-over-year increase of 5.2%[43] - Adjusted Net Income for the period is calculated using a long-term projected effective tax rate of 21.5% for 2023 and 2024, enhancing consistency across reporting periods[39] - Adjusted EPS is derived from Adjusted Net Income divided by adjusted weighted average shares outstanding, providing a per-share performance metric[39] - Adjusted earnings per share for Q2 2024 were $3.51, compared to $2.89 in Q2 2023, reflecting a 21.4% increase[48] - Adjusted earnings per share excluding trivago for Q2 2024 were $3.46, compared to $2.84 in Q2 2023, representing a 21.9% increase[48] Expenses and Capital Expenditures - Total adjusted overhead expenses for Q2 2024 were $606 million, a decrease from $627 million in Q2 2023, indicating a 3.4% reduction[48] - Selling and marketing expenses (direct) for Q2 2024 were $1,793 million, an increase from $1,579 million in Q2 2023, reflecting a 13.5% rise[48] - Adjusted general and administrative expenses for Q2 2024 were $141 million, slightly down from $148 million in Q2 2023, a decrease of 4.7%[48] - Total capital expenditures for the six months ended June 30, 2024, were $371 million, down from $456 million in the same period of 2023, a decrease of 18.7%[48] Future Outlook - The CEO noted a softening in travel demand in July, leading to an adjustment in expectations for the remainder of the year[3] - The company expects continued growth in revenues and profitability, with a focus on market expansion and new product development[51]