Financial Data and Key Metrics Changes - Gross bookings increased by 5% year over year, while revenue grew by 6% [6][23] - Adjusted EBITDA margins expanded by nearly two points [6][23] - Booked room nights rose by 7%, reaching 105 million [24] - Adjusted EBITDA was $908 million, with a margin of 24% [31] Business Line Data and Key Metrics Changes - B2B bookings grew by 17%, marking the sixteenth consecutive quarter of double-digit growth [9][30] - Advertising revenue increased by 19%, with a record number of active partners [9] - Brand Expedia was the largest and fastest-growing consumer brand, with multi-item attach rates at their highest since the pandemic [10] - Hotels.com bookings declined slightly, but room nights accelerated due to a brand relaunch [10] - Vrbo's room nights grew in line with the market, but bookings declined due to lower daily rates and higher cancellations [10] Market Data and Key Metrics Changes - The U.S. travel market was described as muted, with consumers at the higher end remaining resilient [7] - International revenue growth was up 13%, with notable strength in Asia, which grew almost 30% [26][30] - Bookings outside the U.S. grew by high single digits, with Brand Expedia growing 13% [17] Company Strategy and Development Direction - The company focuses on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operating efficiencies [10][19] - AI is leveraged across all priorities to enhance user experience and operational efficiency [14][20] - The company aims to optimize its marketing spend while continuing to invest in growth drivers [36] Management's Comments on Operating Environment and Future Outlook - Management noted an uptick in overall travel demand since July, particularly in the U.S. [8] - The company raised its annual guidance based on solid first-half performance and current trends [8][35] - Management expressed confidence in the company's ability to navigate a challenging U.S. consumer spending environment [38] Other Important Information - The company has $9.2 billion in total liquidity, including $6.7 billion in unrestricted cash [33] - Free cash flow on a trailing twelve-month basis was $2 billion, reflecting the strength of the asset-light model [33] - The company plans to continue share repurchases, with $2.3 billion remaining in the program [34] Q&A Session Summary Question: Future growth alignment with strategic priorities - Management expressed confidence in the portfolio mix and the ability to capture traffic from AI partners [40][42] Question: Hotels.com performance outlook - Management highlighted improvements from the brand relaunch and new capabilities like price alerts [48][50] Question: Marketing leverage in B2C business - Management discussed improvements in product quality and direct traffic conversion as key drivers for marketing leverage [55][56] Question: Promotional environment impact - Management noted an increase in supplier-driven promotions due to price sensitivity in the U.S. market [58][60] Question: AI's role in B2B growth - Management indicated that AI is being explored for onboarding inventory and enhancing customer support [66][70] Question: International growth potential - Management emphasized a focused approach to international markets, with strong growth in specific regions like Japan and Brazil [76][78] Question: Brand Expedia's market share - Management confirmed that Brand Expedia is taking share in various markets, supported by a strong value proposition [88][90] Question: Loyalty program performance - Management reported high single-digit growth in active loyalty members, particularly among higher-tier members [120][121]

Q2 2025 Financial Performance - Room nights increased by 7% year-over-year to 105 million[10] - Gross bookings increased by 5% year-over-year to $30.4 billion[10] - Revenue increased by 6% year-over-year to $3.8 billion[12] - Adjusted EBITDA increased by 16% year-over-year to $908 million[12] - Adjusted EBITDA margin increased by 190 bps year-over-year[10, 22, 26] - Adjusted EPS increased by 21% year-over-year to $4.24[12] Segment Performance - B2B gross bookings increased by 17% year-over-year to $8.8 billion[17] - Advertising revenue increased by 19% year-over-year to $182 million[17] Guidance - Q3 2025 gross bookings are expected to increase by 5-7% year-over-year[61] - Q3 2025 revenue is expected to increase by 4-6% year-over-year[61] - Q3 2025 Adjusted EBITDA margin is expected to increase by 50-100 bps year-over-year[61]

Expedia Group Reports Second Quarter 2025 Results Exceeds guidance, growing bookings 5% and revenue 6% y/y and expanding EBITDA margins Repurchases $627 million of shares in the quarter; declares dividend of $0.40 per share Increases full year guidance SEATTLE, WA – August 7, 2025 – Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the second quarter ended June 30, 2025. | | | Expedia Group, Inc. | | | --- | --- | --- | --- | | Metric | Q2 2025 | Q2 2024 | Δ Y/Y | | Booked room nights ...

Core Insights - Expedia Group (EXPE) is set to report its second-quarter 2025 results on August 7, with expected revenues of $3.71 billion, reflecting a 4.39% increase year-over-year, and earnings estimated at $4.14 per share, indicating a 17.95% rise from the previous year [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for EXPE's second-quarter 2025 revenues is $3.71 billion, a 4.39% increase from the same quarter last year [1]. - The consensus for earnings is $4.14 per share, which is a $0.01 increase over the past 30 days and represents a 17.95% increase year-over-year [1]. Recent Performance Trends - EXPE has surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average surprise of 5.48% [2]. - The company anticipates gross bookings growth of 2-4% and revenue growth of 3-5%, with a one-point benefit from the Easter shift and a two-point foreign exchange headwind [3][9]. Market Dynamics - The performance in the second quarter is expected to be influenced by ongoing challenges in the U.S. market, resilience in international markets, and cost optimization efforts [3]. - Domestic travel softness and reduced inbound flows may have impacted B2C performance due to EXPE's significant U.S. market exposure [4]. Segment Performance - The B2B segment is expected to be a key growth driver, likely maintaining double-digit momentum supported by expanded partnerships and strength in the APAC region [5]. - Advertising revenues are projected to show robust growth, aided by increased partner participation and new advertising solutions, with AI-driven tools enhancing platform adoption [6]. Operational Efficiency - Management expects adjusted EBITDA margin expansion of 75-100 basis points year-over-year, driven by operational efficiency initiatives and cost discipline measures, including restructuring actions affecting approximately 4% of employees [7].

Core Insights - Analysts project that Expedia (EXPE) will report quarterly earnings of $4.14 per share, reflecting an 18% year-over-year increase, with revenues expected to reach $3.71 billion, a 4.4% increase from the same quarter last year [1] Revenue Projections - Revenue from B2B is projected to be $1.17 billion, indicating an 11.7% year-over-year increase [4] - Revenue from Trivago is expected to reach $93.04 million, showing a 20.8% increase compared to the previous year [4] - Revenue for Expedia Group (excluding Trivago) is estimated at $3.62 billion, reflecting a 4% increase from the prior-year quarter [4] - Lodging revenue is forecasted to be $2.98 billion, marking a 4.3% increase year-over-year [5] - Advertising and media revenue is expected to reach $258.29 million, indicating a 12.8% year-over-year increase [5] - International revenue is projected at $1.45 billion, reflecting a 10.2% increase from the previous year [5] - Revenue from the United States is expected to be $2.29 billion, showing a 1.9% year-over-year increase [6] Gross Bookings and Room Nights - Total gross bookings are projected to reach $29.81 billion, up from $28.84 billion in the same quarter last year [6] - Stayed room nights/booked room nights are expected to be 103, compared to 99 in the same quarter last year [6] - Stayed room night/booked room nights growth is likely to reach 4.0%, down from 10.0% in the same quarter last year [7] - Gross bookings for the merchant segment are estimated at $17.23 billion, compared to $16.26 billion in the same quarter last year [7] - Gross bookings for the agency segment are projected to be $12.58 billion, unchanged from the previous year [8] Stock Performance - Shares of Expedia have increased by 0.9% over the past month, compared to a 0.6% increase in the Zacks S&P 500 composite [8]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to find attractive investment opportunities [3] Growth Score - The Growth Score emphasizes a company's financial health and future potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [8] Stock to Watch: Expedia Group, Inc. - Expedia Group, Inc. is a leading online travel company, currently rated 3 (Hold) with a VGM Score of A [11] - The company has a Momentum Style Score of A, with shares increasing by 11% in the past four weeks, and an upward revision in earnings estimates for fiscal 2025 [12] - The Zacks Consensus Estimate for Expedia's earnings has risen by $0.06 to $14.63 per share, with an average earnings surprise of +5.5% [12]

Group 1 - The core focus of Expedia Group, Inc. has been on simplifying and refocusing its brand portfolio around three key brands: Expedia, Hotels.com, and Vrbo [1] - The company is also enhancing its technology capabilities to improve overall service delivery and customer experience [1]

Core Insights - The Zacks Style Scores are complementary indicators that help investors select stocks with the best chances of outperforming the market over the next 30 days [2] - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, serving as an important indicator alongside the Zacks Rank to identify stocks with attractive value, growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [7][8] Stock to Watch: Expedia Group, Inc. - Expedia is a leading online travel company with a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 12.57, making it attractive to value investors [12] - For fiscal 2025, the Zacks Consensus Estimate for Expedia's earnings has increased by $0.04 to $14.61 per share, with an average earnings surprise of +5.5% [12]

Core Viewpoint - Expedia Group Inc. is experiencing renewed optimism from Wall Street due to signs of a rebound in U.S. travel demand, with Bank of America Securities maintaining a Buy rating and a price forecast of $211 [1]. Group 1: Market Trends and Performance - A mild recovery in U.S. bookings during the summer and shoulder season is expected to catalyze Expedia's stock performance, which is closely linked to the domestic travel market [1]. - Recent trends since April have stabilized, leading to fewer downside risks to estimates for the company [2]. - U.S. air travel data shows year-over-year declines, with June airline spending down 10.9% and lodging spending down 3.5%, indicating a deceleration from May [5]. Group 2: Growth Drivers - Key tailwinds for Expedia include continued growth in its B2B and advertising segments, supported by new airline partnerships with Southwest Airlines and Ryanair [3]. - EBITDA is projected to grow by 7% in 2025, based on conservative 2% growth from the B2C segment, which is reasonable given the company's flat U.S. and 33% international exposure [3]. Group 3: Financial Health and Valuation - Expedia has a strong free cash flow profile and buyback potential, with estimates suggesting the company could repurchase about 10% of its shares over the next year, excluding dividends [4]. - The stock is currently trading at 5.8x estimated 2026 EBITDA and 9x expected 2026 free cash flow, which are considered attractive valuations [4].

Core Insights - Booking Holdings Inc. (BKNG) was identified as a good investment opportunity based on a previous analysis conducted last year [1] - The analyst has extensive experience across various industries including airlines, oil, retail, mining, fintech, and ecommerce, which contributes to a comprehensive understanding of business dynamics [1] - The analyst's background includes navigating multiple crises, providing a robust foundation for evaluating investment opportunities [1] Company Analysis - The comparative analysis with peers revealed insights into the competitive landscape of Booking Holdings Inc. [1] - The company operates in a complex environment influenced by macroeconomic, monetary, and political factors [1] Industry Context - The analyst emphasizes the importance of continuous learning and adaptation in the investment landscape, particularly in relation to new ideas, technology, and business models [1] - The experience gained from various economic crises enhances the ability to assess potential risks and opportunities within the industry [1]