Expedia Group(US:EXPE) Forbes·2025-11-07 19:50Core Insights - Expedia's shares increased by over 18% following a strong third-quarter earnings report, driven by significant growth in bookings, revenue, and profits, with CEO Ariane Gorin highlighting AI-driven improvements and consistent travel demand [1][2]. Financial Performance - Expedia reported third-quarter revenues of $4.4 billion, a 9% increase from $4.1 billion year-on-year, and gross bookings grew by 12% to $30.7 billion from $27.5 billion [2]. - The company experienced a 40% year-on-year surge in net income, with diluted earnings per share rising 45% to $7.33 from $5.04 [2]. - Adjusted EBITDA margin reached 32.9%, marking the highest level in over two years [2]. Executive Commentary - Executives indicated that the results exceeded expectations, driven by increased travel demand, artificial intelligence integration, and effective cost management, with Asia showing the fastest growth at over 20% [3]. - CFO Scott Schenkel noted that higher demand in the U.S. and improved marketing efficiency contributed to enhanced profitability [3]. - CEO Ariane Gorin mentioned that AI is now embedded in Expedia's core products to improve search capabilities, review summarization, and customer service, alongside partnerships with Google, OpenAI, and Perplexity that are strengthening Expedia's position in travel search [3]. - Both Hotels.com and Vrbo, brands under the Expedia Group, returned to year-over-year growth [3].