Core Insights - Expedia is rapidly integrating artificial intelligence (AI) across its operations, enhancing personalized travel recommendations, customer service, and operational efficiency [2][3][5] - The company reported a significant increase in gross bookings in its B2B segment, with a 17% rise to $8.8 billion, driven by growth in Asia and Europe [6][11] - Despite mixed performance in the U.S. market, Expedia's international revenue grew by 13%, indicating strong momentum in regions like Japan, Brazil, and Northern Europe [6][9] AI Integration - CEO Ariane Gorin emphasized that AI is utilized in every function of the company, with all employees having AI-related goals [3][4] - AI-powered customer service has led to record high net promoter scores and cost reductions [3] - The company is exploring agentic AI to automate inventory management and improve customer issue resolution [4][5] Financial Performance - For Q2, Expedia reported a net income of $330 million, or $2.48 per share, down from $386 million, or $2.80 per share, year-over-year [10] - Revenue increased to $3.79 billion from $3.56 billion a year ago, surpassing analyst expectations [10][11] - Adjusted EBITDA rose 16% to $908 million, reflecting improved operational performance [10] Market Trends - The company noted a cautious approach to discretionary spending among lower-end consumers, while higher-end consumers remain resilient [7] - There was a noted weakness in foreign travel to the U.S., shorter booking windows, and higher cancellation rates [7][9] - Expedia's flagship brands, including Hotels.com and Vrbo, are seeing improvements and new feature introductions post-platform migrations [8][9] Future Outlook - Expedia raised its revenue growth outlook for the year to 3% to 5%, up from a previous estimate of 2% to 4% [11] - The company plans to roll out additional B2B APIs to enhance travel booking capabilities for businesses [5][11] - Traffic from generative AI searches is small but growing rapidly, converting into bookings at higher rates than other traffic sources [5]

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]

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]

Financial Data and Key Metrics Changes - In Q1 2025, Expedia Group reported a 43% increase in bookings and revenue, which was at the lower end of their guidance range due to weaker travel demand in the U.S. [6][7] - EBITDA grew by 16%, and earnings per share increased by 90% [7][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 [7][22] - Total gross bookings reached $31.5 billion, up 4%, while revenue grew by 3% to $3 billion [24][26] Business Line Data and Key Metrics Changes - The B2B business saw a 14% increase in bookings, significantly outperforming the industry [8][22] - The advertising business delivered a robust 20% revenue growth, with a record number of deals signed [9][15] - 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 [9][10] Market Data and Key Metrics Changes - U.S. demand was soft, with inbound travel bookings down 7%, particularly from Canada, which fell nearly 30% [25][60] - The average daily rates (ADR) were $214, down 1%, although up 1% on an FX neutral basis [24][30] - The B2B segment benefited from strong international performance, particularly in APAC, which grew by 30% [23][30] 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 [10][19] - AI is being leveraged to enhance product offerings, improve marketing effectiveness, and streamline operations [13][80] - The company aims to improve its loyalty program and has made adjustments to better serve travelers [108][110] 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 adapt and continue delivering value [21][121] - The company expects Q2 gross bookings growth of 2% to 4% and revenue growth of 3% to 5%, with EBITDA margin expansion of 75 to 100 basis points [35][36] - Management highlighted the importance of maintaining a diversified B2B business to mitigate risks from macro headwinds [49][117] Other Important Information - The company ended the quarter with $6.1 billion in unrestricted cash and short-term investments [33][34] - A quarterly dividend of $0.40 per share was reinitiated, and share repurchases were accelerated [34] Q&A Session Summary Question: Marketing spend and ROI - Management indicated that they spent about $1 billion on marketing in Q1, slightly deleveraging, and will focus on profitable growth opportunities [39][42] Question: Hotels.com turnaround - Management expressed optimism about Hotels.com, noting recent brand relaunch efforts and positive momentum [40][41] Question: Managing macro headwinds - Management highlighted the strength and diversity of the B2B business, which is well-positioned to handle macroeconomic challenges [48][49] Question: Monthly trends and consumer behavior - Management noted a slowdown in April compared to March, with a shift towards lower ADR rate plans and increased discounts from hotel partners [60] Question: Experiences and attractions investment - Management acknowledged the growing importance of experiences and attractions but did not provide specific investment details [65][69] Question: AI investments - Management discussed the strategic importance of AI in enhancing products, driving traffic, and improving team effectiveness [75][80] Question: Booking curve and international rollout - Management noted a mixed picture in booking windows and highlighted strong growth in the B2B segment, particularly in Asia [89][90] Question: B2B performance and advertising impact - Management confirmed that while B2B experienced some pressure, it remained diversified and continued to grow, with advertising business prospects remaining strong [115][117]

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 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].

Financial Data and Key Metrics Changes - Match Group reported total revenue of $3.5 billion for 2024, representing a 3% year-over-year increase or 6% on an FX neutral basis [10] - The company achieved its full year AOI margin target of 36%, reflecting a continued focus on cost discipline [10] Business Line Data and Key Metrics Changes - The peak dating season, which runs from the day after Christmas to Valentine's Day, contributed to a solid start for the year [7] - Tinder's year-over-year direct revenue growth is experiencing declines, which is impacting overall revenue expectations for Q1 [24] Market Data and Key Metrics Changes - Tinder's monthly active users (MAU) showed a decline of approximately 10% year-over-year in October, improving to about 8% in January [27][28] - Other brands, particularly Hinge, are expected to deliver improved revenue growth throughout the year as they execute their product roadmaps [25] Company Strategy and Development Direction - The company aims to leverage innovation, particularly driven by AI, to improve product experience and drive growth [7] - Match Group is focused on fostering a culture of creativity and continuous innovation to remain a leader in the dating industry [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product roadmaps developed for business units to achieve goals in 2025 and beyond [8] - The transition in leadership is expected to be smooth, with the new CEO emphasizing urgency and accountability in executing the company's plans [20] Other Important Information - The company is committed to returning at least 100% of free cash flow through dividends and share repurchases [10] - Management highlighted the importance of trust and safety initiatives in improving user experience and fostering a clean ecosystem [59] Q&A Session Summary Question: What inspired the new CEO to join Match Group? - The new CEO emphasized the mission of connecting people as a fundamental human need and expressed excitement about the potential of AI in the dating industry [12][15] Question: How will the strategy evolve under new leadership? - The new CEO stated that the transition would be smooth and that he supports the existing strategy and financial targets established at Investor Day [19][20] Question: What are the expectations for Tinder's revenue growth? - Management acknowledged that while there are declines in Tinder's revenue growth, they expect improvements in MAU trends and revenue growth as product initiatives are rolled out [24][25] Question: What initiatives are expected to drive user growth at Tinder? - Management highlighted several initiatives focused on trust and safety, user outcomes, and enhancing the dating experience as key drivers for improving user trends [48][49] Question: How does the company plan to address margin outlook for 2025? - The company is committed to at least 50 basis points of margin expansion in 2025, despite facing FX headwinds [40][42] Question: What are the emerging brands contributing to growth? - Emerging brands targeting specific demographic groups, such as CHISPA and BLK, are expected to offset declines from evergreen brands [81][82]