Expedia Group(US:EXPE)2023-11-02 16:00Financial Performance - Revenue for Q3 2023 was $3,929 million, an increase of 8.6% from $3,619 million in Q3 2022[9] - Operating income for Q3 2023 decreased to $607 million, down 18.8% from $747 million in Q3 2022[9] - Net income attributable to Expedia Group, Inc. for Q3 2023 was $425 million, compared to $482 million in Q3 2022, reflecting a decline of 11.8%[9] - Comprehensive income attributable to Expedia Group, Inc. for Q3 2023 was $392 million, compared to $405 million in Q3 2022[11] - Basic earnings per share for Q3 2023 was $2.98, down from $3.05 in Q3 2022[9] - Total revenue for the nine months ended September 30, 2023, was $9,952 million, a 10% increase from $9,049 million in the same period of 2022[87] - Adjusted EBITDA for the nine months ended September 30, 2023, was $2,148 million, up from $1,900 million in the same period of 2022, reflecting a 13% increase[87] - Net income attributable to Expedia Group, Inc. for the nine months ended September 30, 2023, was $665 million, compared to $175 million in the same period of 2022, representing a significant increase[87] Assets and Liabilities - Total current assets increased to $10,094 million as of September 30, 2023, up from $8,791 million at the end of 2022[14] - Cash and cash equivalents rose to $5,056 million, compared to $4,096 million at December 31, 2022[14] - Total assets reached $22,522 million as of September 30, 2023, an increase from $21,561 million at the end of 2022[14] - The total stockholders' equity increased to $2,926 million as of September 30, 2023, up from $3,713 million as of September 30, 2022, indicating a decline of 21.1%[20] - The company's long-term debt as of September 30, 2023, was $6.25 billion, with various senior notes maturing between 2025 and 2031[53] - The total estimated fair value of the company's Senior Notes was approximately $4.9 billion as of September 30, 2023[56] - The company maintained a $2.5 billion revolving credit facility as of September 30, 2023, with no borrowings outstanding[57] Cash Flow and Investments - The company reported net cash provided by operating activities of $2,928 million for the nine months ended September 30, 2023, compared to $3,622 million for the same period in 2022, a decrease of 19.2%[22] - The cash, cash equivalents, and restricted cash at the end of the period increased to $6,492 million as of September 30, 2023, compared to $6,366 million at the end of September 2022[22] - The company repurchased 5,229,924 shares of common stock for $577 million during the three months ended September 30, 2023[20] - The company repurchased 15.4 million shares for a total cost of $1.6 billion under the 2019 Share Repurchase Program, with an average repurchase price of $103.48 per share[61] Expenses and Impairments - The company reported an impairment of goodwill amounting to $297 million in Q3 2023[9] - The company recorded intangible impairment charges of $15 million for the three and nine months ended September 30, 2023, compared to $52 million and $81 million for the same periods in 2022[51] - Selling and marketing expenses increased by 11% in Q3 2023 to $1,856 million and by 12% for the nine months to $5,300 million, primarily due to increased B2B partner commissions[152][153] - Technology and content expenses rose to $340 million in Q3 2023, a 10% increase from $310 million in Q3 2022, and for the nine months, it increased to $1,001 million from $864 million, reflecting higher personnel costs[154][155] Market and Industry Trends - The company reported a healthy recovery in travel demand, driven by pent-up demand from the COVID-19 pandemic[98] - The online travel industry continues to experience rapid growth, with increased online penetration in travel expenditures, particularly in the U.S. and Western Europe[99] - The company anticipates continued competition in the online travel industry, particularly from emerging markets and alternative accommodation providers[99] - Future macroeconomic factors, such as inflation and rising living costs, may influence ADR trends and overall revenue[109] Tax and Legal Matters - The effective tax rate for Q3 2023 was 31.2%, slightly up from 31.0% in Q3 2022, primarily due to a nondeductible goodwill impairment[68] - For the nine months ended September 30, 2023, the effective tax rate decreased to 34.8% from 52.6% in the same period of 2022[69] - TripAdvisor agreed in principle with the IRS to an assessed amount of $120 million for transfer pricing adjustments for the 2009 through 2011 tax years[72] - The company is involved in various legal proceedings but does not expect them to have a material impact on its financial condition[73] Segment Performance - The B2C segment generated third-party revenue of $2,819 million for the three months ended September 30, 2023, an increase from $2,707 million in the same period of 2022[85] - Adjusted EBITDA for the B2C segment was $1,056 million for the three months ended September 30, 2023, compared to $943 million for the same period in 2022[85] - The B2B segment generated third-party revenue of $995 million for the three months ended September 30, 2023, an increase from $788 million in the same period of 2022[85] - The trivago segment's Adjusted EBITDA decreased by 48% to $18 million for the three months ended September 30, 2023, and by 45% to $51 million for the nine months ended September 30, 2023[167]