Expedia Group(US: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 $27.5 billion in Q3 2024, a 150 basis point acceleration from Q2 2024[2][6] - B2B gross bookings grew 19% year-over-year, while B2C gross bookings increased 3% year-over-year in Q3 2024[2] - Lodging gross bookings rose 8% year-over-year to $20.0 billion in Q3 2024, with hotel bookings up 10%[2] - Revenue increased 3% year-over-year to $4.1 billion in Q3 2024, despite a 2-point negative impact from FX[2][6] - B2B revenue grew 18% year-over-year to $1.2 billion in Q3 2024[2] - Revenue for Q3 2024 increased to $4,060 million, up 3.3% from $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 $16.863 billion in Q1 2024, a 5.6% increase from $15.976 billion in Q1 2023[14] - Lodging gross bookings grew to $21.903 billion in Q1 2024, up 4.0% from $21.055 billion in Q1 2023[14] - B2C revenue rose to $1.986 billion in Q1 2024, a 3.4% increase from $1.921 billion in Q1 2023[14] - Total revenue for Q1 2024 was $2.889 billion, an 8.4% increase from $2.665 billion in Q1 2023[14] - Lodging revenue increased to $2.228 billion in Q1 2024, up 9.8% from $2.029 billion in Q1 2023[14] - U.S. points of sale revenue reached $1.793 billion in Q1 2024, a 2.6% increase from $1.748 billion in Q1 2023[14] - Non-U.S. points of sale revenue grew to $1.096 billion in Q1 2024, up 19.5% from $917 million in Q1 2023[14] Profitability and Earnings - Net income attributable to Expedia Group increased 61% year-over-year to $684 million in Q3 2024[6] - Diluted earnings per share rose 76% year-over-year to $5.04 in Q3 2024[6] - Net income for Q3 2024 rose to $684 million, a significant increase from $305 million in Q3 2023[16] - Earnings per share (diluted) for Q3 2024 improved to $5.04, compared 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 $809 million, compared to $778 million in the same period in 2023[40] - Adjusted earnings per share (EPS) for the three months ended September 30, 2024, was $6.13, up from $5.41 in the same period in 2023[40] - Adjusted net income excluding trivago for the three months ended September 30, 2024, was $809 million, compared to $769 million in the same period in 2023[42] - Adjusted EPS excluding trivago for the three months ended September 30, 2024, was $6.13, compared to $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 $1,307 million, compared to $1,176 million in the same period in 2023[43] - Adjusted EPS for the nine months ended September 30, 2024, was $9.70, up from $7.93 in the same period in 2023[43] - Adjusted net income excluding trivago for the nine months ended September 30, 2024, was $1,308 million, compared to $1,151 million in the same period in 2023[43] - Adjusted EPS excluding trivago for the nine months ended September 30, 2024, was $9.71, compared to $7.76 in the same period in 2023[43] - Net income attributable to Expedia Group, Inc. was $(135) million in Q1 2024, compared to $(145) million in Q1 2023[14] - Net income for the nine months ended September 30, 2024, was $923 million, compared to $552 million for the same period in 2023[18] Share Repurchases and Capital Allocation - Expedia Group repurchased 12.0 million shares for $1.6 billion year-to-date in 2024[2] - Purchases of treasury stock amounted to $1.641 billion for the nine months ended September 30, 2024, compared to $1.669 billion in 2023[18] Financial Position and Liabilities - Total assets as of September 30, 2024, grew to $23,405 million, compared to $22,522 million in September 2023[17] - Cash and cash equivalents stood at $4,722 million as of September 30, 2024, up from $5,056 million in September 2023[17] - Accounts receivable increased to $3,764 million in September 2024, up from $2,753 million in September 2023[17] - Long-term debt decreased to $5,221 million as of September 30, 2024, from $6,250 million in September 2023[17] - Total current liabilities increased to $14,787 million as of September 30, 2024, from $12,560 million in September 2023[17] - Deferred merchant bookings rose to $9,413 million in September 2024, up from $8,394 million in September 2023[17] - Long-term debt, including current maturities, stood at $6,263 million, with a leverage ratio of 2.2[39] - Cash, cash equivalents, and restricted cash at the end of the period were $6.046 billion, down from $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 $2.887 billion, slightly down from $2.928 billion in 2023[18] - Capital expenditures, including internal-use software and website development, were $565 million for the nine months ended September 30, 2024, compared to $669 million in 2023[18] - Free cash flow for the nine months ended September 30, 2024, was $2,322 million, compared to $2,259 million in the same period in 2023[44] - Total capital expenditures for the nine months ended September 30, 2024, were $565 million, compared to $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 $1,250 million, with B2C contributing $1,028 million and B2B contributing $338 million[36] - Adjusted EBITDA for Q3 2023 was $1,216 million, with B2C contributing $1,056 million and B2B 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 $215 million in Q1 2024, a 45.3% increase from $148 million in Q1 2023[14] - Adjusted cost of revenue for the three months ended September 2024 was $385 million, compared to $409 million in the same period in 2023[46] - Adjusted selling and marketing expenses excluding trivago for the three months ended September 2024 were $1.793 billion, up from $1.600 billion in 2023[46] - Adjusted technology and content expenses excluding trivago for the three months ended September 2024 were $269 million, down from $294 million in 2023[46] - Adjusted general and administrative expenses excluding trivago for the three months ended September 2024 were $138 million, down from $140 million in 2023[46] - Total adjusted overhead expenses for the three months ended September 2024 were $602 million, compared to $617 million in 2023[46] - Adjusted cost of revenue for the nine months ended September 2024 was $1.099 billion, compared to $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 $5.129 billion, up from $4.596 billion in 2023[46] - Adjusted technology and content expenses excluding trivago for the nine months ended September 2024 were $837 million, down from $862 million in 2023[46] - Adjusted general and administrative expenses excluding trivago for the nine months ended September 2024 were $405 million, down from $409 million in 2023[46] - Total adjusted overhead expenses for the nine months ended September 2024 were $1.819 billion, compared to $1.832 billion in 2023[46] Guidance and Future Outlook - Expedia Group raised its full-year guidance following strong Q3 2024 results[1]