Financial Data and Key Metrics Changes - In Q1 2025, the company reported a 43% increase in bookings and revenue, which was at the lower end of the guidance range due to weaker travel demand in the U.S. [5][22] - EBITDA grew by 16%, and earnings per share increased by 90% [5][22] - Booked room nights grew by 6%, with low single digits growth in the U.S., mid single digits in Europe, and mid-teens growth in the rest of the world [6][22] Business Line Data and Key Metrics Changes - The B2B business posted a 14% bookings growth, outperforming the industry [7][22] - The advertising business achieved a robust 20% revenue growth [8][22] - Brand Expedia was the fastest-growing consumer brand with room nights up 7%, while Vrbo grew modestly and Hotels.com experienced a decline due to softer U.S. demand [8][22] Market Data and Key Metrics Changes - U.S. demand was soft, driven by declining consumer sentiment, with inbound travel to the U.S. down 7% and bookings from Canada falling nearly 30% [6][25] - The company noted a shift in consumer behavior, with travelers opting for lower average daily rates [61] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operational efficiencies [9][18] - AI is being leveraged to enhance product experiences, improve marketing effectiveness, and streamline operations [13][80] - The company is expanding its B2B business and enhancing advertising solutions to drive future growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment but expressed confidence in the company's ability to navigate challenges and continue delivering value [21][120] - The company expects Q2 2025 gross bookings growth of 2% to 4% and revenue growth of 3% to 5%, with EBITDA margin expansion of 75 to 100 basis points [36][37] Other Important Information - The company ended the quarter with $6.1 billion in unrestricted cash and short-term investments and maintained a total debt of $6.3 billion [34][35] - The company reinitiated a quarterly dividend of $0.40 per share and accelerated stock repurchases [35] Q&A Session Summary Question: Marketing spend and ROI - Management indicated that they spent about $1 billion on marketing in Q1 and will focus on profitable growth opportunities while reducing costs where necessary [45][46] Question: Hotels.com turnaround - Management expressed optimism about Hotels.com, highlighting recent brand relaunch efforts and positive momentum [44][46] Question: Managing macro headwinds - Management noted the B2B business's geographic and segment diversity, which helps mitigate macroeconomic pressures [51][52] Question: Monthly trends and consumer behavior - Management reported that April was softer than March, with a shift towards lower average daily rates and increased discounts from hotel partners [61] Question: Experiences and attractions investment - Management acknowledged the growing importance of experiences and attractions but did not provide specific investment details [70] Question: AI investments - Management discussed the strategic importance of AI in enhancing products, driving traffic, and improving team effectiveness [76][80] Question: Booking curve and international rollout - Management noted a mixed picture in booking windows, with slight expansion for hotels and decline for vacation rentals, while the B2B business showed strong growth in Asia [88][89] Question: B2B performance and advertising impact - Management confirmed that while the B2B business faced some pressure from U.S. softness, it remained globally diversified and continued to grow [118][119]

Core Insights - Expedia Group Inc reported first-quarter revenue of $2.99 billion, a 3% increase year-over-year, but fell short of the consensus estimate of $3.01 billion [1] - The revenue growth was driven by B2B and Advertising segments, which increased by 14% and 20% year-over-year, respectively [1] - The company reported earnings per share of 40 cents, exceeding the consensus estimate of 29 cents per share [2] - Booked room nights rose by 6% year-over-year, despite softened travel demand in the U.S., while lodging gross bookings increased by 5% [2] - Total gross bookings were up 4% year-over-year in the first quarter [2] - CEO Ariane Gorin stated that the company achieved bookings and revenue within guidance despite weaker demand, and anticipates margin expansion and revenue growth in the future [3] Stock Performance - Expedia's stock declined by 6.88% to $157.36 in after-hours trading, with a 52-week trading range of $107.25 to $207.73 [4]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Expedia Group's first quarter 2025 results met top-line guidance with 4% growth in gross bookings and 3% in revenue year-over-year, surpassing bottom-line expectations with a 16% increase in Adjusted EBITDA and expanding margins | Metric | Q1 2025 | Q1 2024 | Δ Y/Y | | :--- | :--- | :--- | :--- | | Gross bookings | $31,451M | $30,164M | 4% | | Revenue | $2,988M | $2,889M | 3% | | Operating loss | $(70)M | $(110)M | (36)% | | Net loss attributable to Expedia Group, Inc. | $(200)M | $(135)M | 49% | | Adjusted EBITDA* | $296M | $255M | 16% | | Adjusted EPS* | $0.40 | $0.21 | 90% | | Free cash flow* | $2,756M | $2,702M | 2% | - CEO Ariane Gorin stated that despite weaker than expected demand in the US, the company achieved its guidance, drove bottom-line growth, and is committed to continuing margin expansion while growing its top-line[3](index=3&type=chunk) - Key growth drivers in Q1 included a **6% increase in booked room nights**, a **14% rise in B2B gross bookings**, and a **20% growth in the Advertising business revenue**[7](index=7&type=chunk) - The company repurchased approximately **1.7 million shares for $330 million** and paid a quarterly dividend of **$0.40 per share** during the first quarter[7](index=7&type=chunk) [Detailed Financial and Operating Metrics](index=3&type=section&id=Detailed%20Financial%20and%20Operating%20Metrics) This section provides a detailed quarterly breakdown of key operating metrics and financial performance by business segment, highlighting an 8% growth in Merchant gross bookings and a 14% increase in B2B segment revenue [Trended Metrics](index=3&type=section&id=Trended%20Metrics) Q1 2025 operating metrics show a 6% year-over-year increase in booked room nights and a 4% rise in booked air tickets, though the Average Daily Rate (ADR) declined by 1% | Operating Metric | Q1 2025 | Q1 2024 | Y/Y Growth | | :--- | :--- | :--- | :--- | | Booked room nights (millions) | 107.7 | 101.2 | 6% | | Average Daily Rate (ADR) Booked | $213.9 | $216.5 | (1)% | | Booked air tickets (millions) | 14.8 | 14.2 | 4% | | Gross Bookings by Business Model | Q1 2025 ($M) | Q1 2024 ($M) | Y/Y Growth | | :--- | :--- | :--- | :--- | | Agency | $13,239 | $13,301 | 0% | | Merchant | $18,212 | $16,863 | 8% | | **Total** | **$31,451** | **$30,164** | **4%** | | Revenue by Product | Q1 2025 ($M) | Q1 2024 ($M) | Y/Y Growth | | :--- | :--- | :--- | :--- | | Lodging | $2,289 | $2,228 | 3% | | Air | $107 | $115 | (7)% | | Advertising and media - EG | $174 | $145 | 20% | [Segment Performance](index=5&type=section&id=Segment%20Performance) The B2B segment was the primary growth driver in Q1 2025, with gross bookings up 14% and revenue increasing 14% year-over-year, while the B2C segment saw modest 1% growth in gross bookings but a 2% decline in revenue | Performance by Segment (Q1 2025 vs Q1 2024) | B2C | B2B | | :--- | :--- | :--- | | Gross Bookings Growth | 1% | 14% | | Revenue Growth | (2)% | 14% | | Adjusted EBITDA Growth | 0% | 26% | - Direct selling and marketing expenses as a percentage of gross bookings remained stable for the B2C segment at **4.9%** but increased for the B2B segment[19](index=19&type=chunk) - The B2B segment demonstrated improved profitability with its Adjusted EBITDA margin expanding by **219 basis points to 22.8%**, while the B2C segment's margin saw a modest **20 basis point increase to 11.1%**[19](index=19&type=chunk) [Consolidated Financial Statements (GAAP)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) The GAAP-based consolidated financial statements detail the company's financial position and performance, reporting Q1 2025 revenue of $2.99 billion, an operating loss of $70 million, and a net loss of $200 million [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, Expedia Group's revenue increased 3% YoY to $2.99 billion, recording an operating loss of $70 million, a 36% improvement, though net loss widened to $200 million primarily due to 'Other, net' expenses | Income Statement (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $2,988 | $2,889 | | Operating loss | $(70) | $(110) | | Net loss attributable to Expedia Group, Inc. | $(200) | $(135) | | Diluted loss per share | $(1.56) | $(0.99) | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Expedia Group held $5.7 billion in cash and cash equivalents and total assets of $26.1 billion, with total liabilities at $23.8 billion, including $12.9 billion in deferred merchant bookings | Balance Sheet (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,715 | $4,183 | | Total current assets | $13,587 | $9,815 | | Total assets | $26,114 | $22,388 | | Deferred merchant bookings | $12,915 | $8,517 | | Total liabilities | $23,793 | $19,589 | | Total stockholders' equity | $2,321 | $2,799 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, the company generated $2.95 billion in cash from operating activities, largely driven by a $4.4 billion increase in deferred merchant bookings, while using $384 million in investing and $469 million in financing activities | Cash Flow (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,952 | $2,879 | | Net cash used in investing activities | $(384) | $(240) | | Net cash used in financing activities | $(469) | $(631) | | Net increase in cash and equivalents | $2,160 | $1,961 | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines non-GAAP metrics like Adjusted EBITDA and Free Cash Flow, presenting detailed reconciliations to GAAP, with Q1 2025 Adjusted EBITDA at $296 million and Free Cash Flow at $2.76 billion [Definitions of Non-GAAP Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income, and Free Cash Flow to evaluate business performance by excluding items such as stock-based compensation and restructuring charges - Management uses non-GAAP measures like Adjusted EBITDA to evaluate performance, believing they provide a more meaningful comparison of core operating results by excluding non-cash or unpredictable items such as stock-based compensation, restructuring, and acquisition impacts[35](index=35&type=chunk)[37](index=37&type=chunk) - Adjusted Net Income is used to represent combined results settled in cash, excluding items like stock-based compensation and amortization of intangibles, and is calculated using a long-term projected tax rate of **21.5% for 2025**[42](index=42&type=chunk)[46](index=46&type=chunk) - Free Cash Flow is defined as net cash from operating activities less capital expenditures and is considered useful for showing cash generated by core business operations before financing and certain investing activities[47](index=47&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed tables reconciling GAAP figures to non-GAAP metrics, showing Q1 2025 operating loss of $70 million reconciled to an Adjusted EBITDA of $296 million, and GAAP net loss of $200 million to an Adjusted Net Income of $53 million | Reconciliation to Adjusted EBITDA (Q1 2025, in millions) | Amount | | :--- | :--- | | Operating loss (GAAP) | $(70) | | Realized gain on revenue hedges | $23 | | Restructuring charges | $26 | | Stock-based compensation | $98 | | Amortization of intangible assets | $11 | | Depreciation | $208 | | **Adjusted EBITDA (Non-GAAP)** | **$296** | | Reconciliation to Adjusted Net Income & EPS (Q1 2025) | Amount | | :--- | :--- | | Net loss attributable to Expedia Group (GAAP) | $(200)M | | Adjustments (e.g., stock comp, amortization, investment loss) | +$273M | | Tax effects of adjustments | $(20)M | | **Adjusted net income (Non-GAAP)** | **$53M** | | **Adjusted EPS (Non-GAAP)** | **$0.40** | | Free Cash Flow Calculation (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,952 | $2,879 | | Less: Total capital expenditures | $(196) | $(177) | | **Free cash flow** | **$2,756** | **$2,702** |

Core Viewpoint - Expedia Group (EXPE) is expected to report first-quarter 2025 results on May 8, with revenues estimated at $3.03 billion, reflecting a 4.76% increase year-over-year, and earnings per share projected at 42 cents, indicating a 100% increase from the previous year [1][4]. Financial Performance - The Zacks Consensus Estimate for EXPE's first-quarter 2025 revenues is $3.03 billion, a 4.76% increase from the prior year's quarter [1]. - The earnings consensus is 42 cents per share, revised down by 2 cents in the last 30 days, but still suggests a 100% increase year-over-year [1]. Historical Performance - EXPE has exceeded the Zacks Consensus Estimate for earnings in the last four quarters, with an average surprise of 45.86% [2]. Growth Factors - The company's performance is anticipated to be influenced by international demand, strategic investments, and cost discipline [4]. - Gross bookings are projected to grow by 4% to 6%, with revenue growth expected between 3% to 5%, excluding a two-point foreign exchange headwind and the Easter shift [5]. - Underlying growth, when excluding these factors, is expected to be between 7% to 9% [5]. Segment Performance - Vrbo is likely to continue its growth momentum, supported by expanded urban inventory and improved supply quality [6]. - Brand Expedia is expected to benefit from merchandising actions in air and package products, driving incremental bookings without additional marketing costs [6]. - The B2B segment, which accounted for 27% of total bookings in 2024, is expected to remain strong, particularly in the APAC region [7]. - Advertising revenues, which grew by 25% in the fourth quarter, are anticipated to continue being a significant contributor to top-line growth [8]. Profitability Metrics - Adjusted EBITDA margins for the first quarter are expected to remain flat to slightly up year-over-year, reflecting sustained overhead and marketing efficiency [9]. - Cost-saving actions taken in 2024 are expected to support profitability despite seasonal and foreign exchange pressures [9]. Earnings Outlook - According to the Zacks model, EXPE has a positive Earnings ESP of +14.86% and a Zacks Rank of 3, indicating a favorable outlook for an earnings beat [10].

Core Viewpoint - Analysts project that Expedia (EXPE) will report quarterly earnings of $0.42 per share, reflecting a 100% year-over-year increase, with revenues expected to reach $3.03 billion, a 4.8% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 4.9% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. - Prior to earnings releases, revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts predict 'Revenue- B2B' will reach $924.59 million, marking an 11% increase year-over-year [5]. - 'Revenue by Service Type- Lodging' is expected to be $2.36 billion, reflecting a 6.1% year-over-year change [5]. - 'Revenue- Trivago' is projected at $74.76 million, indicating a 6.8% increase from the prior year [5]. - 'Revenue by Service Type- Air' is estimated at $114.41 million, suggesting a slight decline of 0.5% year-over-year [6]. - 'Revenue- Advertising, Media and other' is expected to reach $277.37 million, a 12.3% increase from the previous year [6]. - 'Revenue- International' is projected at $1.22 billion, reflecting an 11.3% increase year-over-year [7]. - 'Revenue- United States' is estimated at $1.85 billion, indicating a 3.3% year-over-year change [7]. Gross Bookings - Analysts forecast 'Gross bookings - Total' to reach $31.85 billion, compared to $30.16 billion from the previous year [7]. - 'Gross bookings - Merchant' is expected to be $18.83 billion, up from $16.86 billion year-over-year [8]. - 'Gross bookings - Agency' is projected at $13.81 billion, compared to $13.30 billion from the prior year [9]. Key Metrics - The consensus estimate for 'Stayed room nights/ Booked room nights' stands at 106, up from 101 year-over-year [8]. - 'Stayed Room Night /Booked room nights Growth' is expected to be 8.1%, compared to 7% in the same quarter last year [8]. Stock Performance - Over the past month, shares of Expedia have returned +14.1%, significantly outperforming the Zacks S&P 500 composite's +0.4% [9].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Expedia, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - Expedia is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year increase of +100% [3]. - Revenue is projected to be $3.03 billion, representing a 4.8% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.85% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +14.86% suggests analysts have recently become more optimistic about Expedia's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Expedia currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Expedia exceeded the expected earnings of $2.07 per share by delivering $2.39, resulting in a surprise of +15.46% [12]. - Over the past four quarters, Expedia has consistently beaten consensus EPS estimates [13]. Industry Comparison - In the Zacks Internet - Commerce industry, TripAdvisor is expected to report earnings of $0.05 per share, indicating a year-over-year decline of -58.3% [17]. - TripAdvisor's revenue is anticipated to be $389.03 million, down 1.5% from the previous year [17]. - The consensus EPS estimate for TripAdvisor has been revised down by 10% over the last 30 days, resulting in a negative Earnings ESP of -17.24% [18].

Financial Data and Key Metrics Changes - The fourth quarter results exceeded expectations with room nights, gross bookings, and revenue all growing double digits [8][9] - Total gross bookings reached $24.4 billion, growing 13% year-over-year, with a five-point sequential acceleration in both B2C and B2B [35][41] - Revenue for the quarter was $3.2 billion, up 10%, primarily driven by the B2B business which grew 21% [36][44] - EBITDA for Q4 was $643 million, up 21%, with an EBITDA margin of 20.2%, expanding by 175 basis points [40][44] - Full year gross bookings were $111 billion, also up 7%, with revenue nearly $14 billion, reflecting a notable recovery in the B2C business [41][43] Business Line Data and Key Metrics Changes - Bookings for the consumer business accelerated to 9%, up five points sequentially, with all core brands (Brand Expedia, Hotels.com, Vrbo) seeing growth [9][12] - The B2B business experienced a significant increase in bookings growth to 24% [10] - The advertising business reported a strong quarter with 25% revenue growth [10][17] Market Data and Key Metrics Changes - International demand outperformed the US, with booked room nights growing high single digits in the US, low double digits in Europe, and high teens in the rest of the world [11][12] - Bookings growth outside the US accelerated four points sequentially, indicating strong international expansion [11][12] Company Strategy and Development Direction - The company aims to deliver more value for travelers, invest in growth opportunities, and drive operational efficiencies to expand margins [19][25] - Focus on enhancing the consumer business by targeting three major brands and improving loyalty programs [22][24] - Continued emphasis on B2B partnerships and unique supply offerings to drive growth [25][81] Management's Comments on Operating Environment and Future Outlook - The management noted a healthy travel demand environment in Q4, despite some softening in January [168] - The company remains optimistic about future growth, particularly in international markets and through enhanced loyalty programs [170][171] Other Important Information - The company plans to reinstate its quarterly dividend starting in March 2025, with a dividend of 40 cents per share [50][152] - The company repurchased $1.6 billion worth of shares in 2024, with a remaining authorization of approximately $3.2 billion [46][150] Q&A Session Summary Question: Sustainability of recovery for Vrbo and Hotels.com - Management acknowledged significant efforts in product supply and marketing that drove recovery, expressing confidence in continued growth for both brands [56][59] Question: Q1 guidance and potential headwinds - Management indicated a slight softening in the travel environment and provided a Q1 gross bookings growth forecast of 4% to 6% [67][68] Question: Strength in B2B segment in APAC - Management highlighted strong partnerships and market growth in APAC as key drivers for B2B strength [80][81] Question: Advertising revenue sustainability - Management expressed optimism about continued growth in advertising revenue, citing ongoing innovations and new ad types [96] Question: Capital returns philosophy - Management confirmed a commitment to share repurchases and reinstating dividends, emphasizing flexibility for future investments [150][152]

Financial Performance - For the year ended December 31, 2024, total revenue was $13.7 billion, with merchant accounting for 69%, agency for 23%, and advertising for 8% of total revenue[37]. - As of December 31, 2024, the company has outstanding long-term indebtedness of $6.3 billion and an untapped revolving credit facility of $2.5 billion[100]. - The company has historically relied on its merchant hotel business for a meaningful portion of operating cash flow, which is subject to seasonal declines and external factors[97]. - The overall health of the travel industry significantly affects the company's financial performance, with macroeconomic conditions and public health issues posing risks[89][90]. - The company may face liquidity constraints due to factors beyond its control, which could harm its financial position, especially if the travel industry experiences significant declines[96]. - The company's stock price is highly volatile, subject to fluctuations due to various risks, including quarterly variations in operating results and changes in capital structure[179]. Market Position and Competition - The global travel spending is estimated at approximately $2.2 trillion in 2025, indicating significant market opportunity for the company[23]. - The company faces intense competition from established online travel agencies and alternative accommodation providers, including Booking Holdings and Airbnb, which may impact market share[74][75]. - The company competes with search engines like Google, which may disintermediate online travel agencies and increase traffic acquisition costs[77][78]. - Travel suppliers are increasingly offering favorable terms for direct bookings, which could reduce the company's revenue from third-party bookings[76]. - The company is a leading player in the global B2B travel space, focusing on increasing wallet share with existing customers and winning new contracts[51]. Technology and Innovation - The company migrated both Hotels.com and Vrbo onto a unified front-end stack in 2023, enhancing test-and-learn capacity and feature release velocity[22]. - The company’s technology investments aim to improve customer experience and increase efficiency in contact centers[33]. - The company is engaged in a multi-year effort to migrate to new technology platforms, which may be time-consuming and expensive, potentially impacting customer relationships and operations[158]. - Proprietary technology has been developed to assist suppliers in managing and marketing their offerings, including direct connect technology for real-time updates[45]. - The company relies on sophisticated information technologies for operations, and failure to maintain or improve these systems could adversely affect its business[155]. Strategic Initiatives - The One Key loyalty program was launched in the United States and the United Kingdom, allowing cross-earning and cross-redeeming of rewards across multiple brands[32]. - A unified global rewards platform called One Key was launched in the United States in 2023 and will launch in the United Kingdom in 2024, enhancing customer loyalty programs[41]. - The company has accelerated investments in global market expansion beyond core markets in 2024[25]. - Marketing efforts are focused on three core consumer brands: Expedia, Hotels.com, and Vrbo, with a holistic approach to optimize traveler acquisition costs[40]. - The company shifted to a platform operating model in 2020 to reduce complexity and improve operational efficiency[20]. Regulatory and Compliance Risks - The company is subject to evolving regulations in the travel industry, including compliance with short-term rental laws and data protection regulations[59]. - The company is subject to various regulatory risks that could adversely affect its alternative accommodations business, including potential fines for noncompliance[132]. - The company may incur significant costs associated with compliance obligations related to new regulations affecting the alternative accommodation industry[135]. - The company is subject to inquiries and legal proceedings from regulatory bodies regarding compliance with economic sanctions and consumer protection laws, which could adversely affect its financial condition[143]. - The company is actively addressing regulatory concerns regarding the presentation of information on its consumer-facing websites[204]. Human Resources and Governance - As of December 31, 2024, the company has a workforce of 16,500 employees, with approximately 50% in technology roles[64]. - The company aims for 50% of leadership roles to be occupied by women by the end of 2025 and 25% of U.S. external hires to come from racially and ethnically underrepresented groups[66]. - The governance agreement limits the voting power of Class B Shares held by Diller-related persons to 20% for certain extraordinary transactions after Mr. Diller's departure[68]. - Mr. Diller's ownership interests and voting power may influence significant corporate actions, potentially discouraging beneficial mergers or takeovers for Expedia Group stockholders[172]. - The company has faced challenges in retaining key personnel, which could adversely affect its ability to execute and innovate[123]. Legal and Litigation Matters - The company has faced multiple lawsuits regarding compliance with local tax statutes, including a case in Clark County, Nevada, where common law claims were not dismissed[192]. - HomeAway is involved in litigation in South Carolina, with claims for damages and accounting, and has reached a tentative settlement in Texas[193]. - Ongoing investigations by national competition authorities in Europe relate to contractual provisions with accommodation providers, particularly concerning parity clauses[202]. - The company has voluntarily waived certain parity clauses in Europe, leading to the closure of most investigations by national competition authorities[202]. - Ongoing legal proceedings involve claims related to tax collection failures by online travel companies, which may result in monetary and injunctive relief[191]. Financial Management and Investments - The company held cash in bank depository accounts of approximately $3.8 billion and money market funds and term deposits of approximately $192 million[128]. - The company had total investments in short-term and long-term investments amounting to $502 million, including U.S. treasury securities and corporate debt securities[128]. - The company is exposed to foreign exchange risk, particularly related to fluctuations in currencies such as the Euro, British pound, and Japanese yen, which may negatively impact cash flows[129]. - The ability to raise financing is significantly affected by capital and credit market conditions, which are unpredictable and may increase the cost of capital[98]. - The company faces significant credit risk and potential payment delays with non-financial contract counterparties, which may be exacerbated by economic downturns[128]. Cybersecurity and Risk Management - The company’s cybersecurity risk management program is based on industry standards and includes governance, risk assessment, technical safeguards, and incident response strategies[183]. - The company has not experienced material adverse effects from cybersecurity threats to date, but future incidents could impact its business strategy and financial condition[184]. - The company maintains insurance coverage for cybersecurity incidents, reflecting its commitment to managing potential risks[183]. - The company is subject to evolving privacy regulations, which could impose significant compliance burdens and result in penalties for non-compliance[168]. - The company’s cybersecurity governance includes oversight from the Board and Audit Committee, ensuring regular updates on cybersecurity initiatives and risks[185]. Environmental, Social, and Governance (ESG) Considerations - Increased focus on ESG responsibilities may lead to additional costs and risks, potentially impacting the company's reputation and financial results[174]. - Climate change poses direct and indirect risks to the company's operations, including disruptions from severe weather and shifts in consumer preferences[177]. - The company is subject to evolving stakeholder expectations regarding ESG practices, which may present operational and reputational risks[176].

Expedia Group Reports Fourth Quarter and Full Year 2024 Results Double-digit room nights, gross bookings, and revenue growth in the fourth quarter Both B2C and B2B bookings growth accelerated 5 pts sequentially in the fourth quarter Reinstates quarterly dividend SEATTLE, WA – February 6, 2025 – Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the fourth quarter and full year ended December 31, 2024. Key Highlights "Our fourth quarter results exceeded our expectations and reflect cont ...

Financial Data and Key Metrics - Gross bookings grew 7% YoY to $27.5 billion, driven by an 8% increase in lodging gross bookings, including a 10% growth in the hotel business [29] - Revenue increased 3% YoY to $4.1 billion, with B2B, Brand Expedia, and advertising businesses leading the growth [31] - EBITDA grew 3% YoY to $1.25 billion, with a margin of 30.8%, slightly deleveraging by 16 basis points [37] - Free cash flow for the year-to-date was $2.3 billion, up 3% YoY, driven by higher EBITDA and lower capital expenditures [39] - The company repurchased $1.6 billion worth of shares year-to-date, with $3.2 billion remaining in the share repurchase authorization [41] Business Line Performance - **Consumer Business**: Gross bookings grew 3% YoY, with Brand Expedia showing mid-teens growth in room nights and a 25% increase in package bookings [10][11][12] - **Vrbo**: Returned to modest growth with improved app performance and supply additions, including 1 million units from Brand Expedia [13][14] - **Advertising Business**: Revenue grew 32% YoY, driven by increased advertiser participation and new product capabilities like video ads [17] - **B2B Business**: Bookings grew 19% YoY, with broad-based growth across all partner segments and regions [20] Market Performance - **U.S.**: Booked room nights grew in the low single digits, while international demand was stronger [8] - **Europe**: Booked room nights grew in the low double digits [8] - **Rest of the World**: Booked room nights grew in the high teens [8] - **International Expansion**: Bookings growth for consumer brands outside the U.S. accelerated by 5 points, with double-digit growth in Scandinavia [16] Strategic Direction and Industry Competition - The company is focused on driving direct traffic, improving product performance, and expanding internationally, particularly in faster-growing markets [10][16] - Investments in AI and tech platforms are enhancing customer service and conversion rates, with virtual agents handling nearly half of traveler inquiries [21][23] - The company is leveraging its unified tech platform to innovate faster and improve brand value propositions across Expedia, Hotels.com, and Vrbo [63][64] Management Commentary on Operating Environment and Future Outlook - The travel environment in Q3 was healthy but mixed, with demand improving in August and September after a softer July [8] - The company raised its full-year guidance, expecting gross bookings growth of approximately 5% and revenue growth of 6% [44] - Management remains confident in the company's ability to execute and capitalize on growth opportunities, particularly in B2B, advertising, and international markets [45] Other Important Information - Julie Whalen, CFO, will be stepping down, with a successor to be announced before her departure [24] - Ramana Thumu has joined as Chief Technology Officer, bringing extensive experience in scaling multi-brand platforms [25] Q&A Session Summary Question: Marketing investments in Vrbo and international markets - The company expects to see marketing leverage as Vrbo and international markets return to expected growth levels [48] Question: Drivers of strong growth in the advertising business - Growth is driven by increased advertiser participation, simplified sign-up processes, and new product capabilities like video ads [50][51] Question: Vrbo's growth acceleration and cost implications for 2025 - Vrbo's growth is driven by product improvements, supply expansion, and effective marketing campaigns [54][55] - The company is focused on cost efficiency and marketing optimization for future growth [58][59] Question: Vrbo's performance in Q3 and October - Vrbo showed acceleration throughout Q3, despite weather-related challenges in October [60] Question: Integration of Vrbo with Brand Expedia and B2B - The company sees opportunities to integrate Vrbo with B2B, though it is not a top priority currently [84][85] Question: Performance of Hotels.com - Hotels.com performance was stable but has not returned to growth, with a new general manager focusing on revitalizing the brand [86][87] Question: Impact of hurricanes and international market trends - Hurricane Milton had a material but manageable impact in October, with underlying business health remaining strong [89] - The company is taking a surgical approach to regaining share in international markets [90] Question: Selling and marketing efficiencies - The company is focused on driving efficiencies in selling and marketing, particularly in Brand Expedia, while reinvesting in Vrbo and international markets [92][93]