Financial Data and Key Metrics Changes - The company reported a 12% increase in bookings and a 9% increase in revenue for Q3 2025, with EBITDA margin expanding by over two points [5][14][15] - Gross bookings reached $30.7 billion, with a 12% year-over-year growth, benefiting from foreign exchange [15][20] - Adjusted EBITDA was $1.4 billion, with a margin of 33%, reflecting revenue and expense leverage [17][20] Business Line Data and Key Metrics Changes - B2B bookings increased by 26%, marking the 17th consecutive quarter of double-digit growth, while advertising revenue grew by 16% [6][15] - B2C gross bookings were $21.3 billion, growing 7% year-over-year, with B2C revenue at $2.9 billion, up 4% [15][16] - The company saw strong performance in its consumer brands, particularly in Europe, with Expedia being the largest and fastest-growing brand [6][16] Market Data and Key Metrics Changes - In the U.S., room nights increased by high single digits, marking the fastest growth in over three years, while EMEA saw low double-digit growth and Asia over 20% [6][14] - The company experienced strong demand for premium travel, with growth in both high-end and lower-end segments [15] Company Strategy and Development Direction - The company is focused on delivering more value to travelers through personalized experiences and enhanced loyalty programs [7][9] - Investment in B2B and advertising continues to be a priority, with new tools and AI integration driving growth [10][11] - The company is leveraging AI to improve operational efficiencies and enhance customer service [12][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create value for stakeholders, despite monitoring economic indicators [12][20] - The company raised its full-year guidance based on strong Q3 results and ongoing trends [5][20] Other Important Information - The company ended the quarter with $6.2 billion in unrestricted cash and short-term investments, maintaining a strong cash position [19] - Free cash flow on a trailing 12-month basis was $3 billion, reflecting the strength of the operating model [19] Q&A Session Summary Question: Thoughts on B2B growth and competitive environment - Management highlighted exceptional B2B performance, driven by strong supply and technology, with a focus on signing new partners and enhancing product offerings [24][25] Question: Sources of margin expansion - Management identified sales and marketing optimization, cost of sales management, and overhead control as key sources for future margin expansion [31][33] Question: Update on replatforming and brand performance - Management noted that replatforming has enabled better scale and performance across brands, with Hotels.com and Vrbo showing strong results [41][44] Question: Direct bookings and marketing efficiency - Management reported that direct bookings account for about two-thirds of consumer business, with ongoing improvements in conversion rates [68][70] Question: Outlook for Q4 and government shutdown impact - Management expressed confidence in Q4 guidance while monitoring potential impacts from the government shutdown [86][88] Question: International travel dynamics - Management indicated that inbound travel to the U.S. is nearly back to last year's levels, with healthy growth across various corridors [95]

Financial Data and Key Metrics Changes - Bookings increased by 12% and revenue grew by 9%, with EBITDA margin expanding by over 2 points [5][16][17] - Gross bookings reached $30.7 billion, reflecting a 12% year-over-year increase, with a 1-point benefit from foreign exchange [17] - Adjusted EBITDA was $1.4 billion, with a margin of 33%, driven by revenue and expense leverage [19] Business Line Data and Key Metrics Changes - B2C gross bookings were $21.3 billion, growing 7% year-over-year, while B2C revenue increased by 4% to $2.9 billion [18] - B2B gross bookings surged by 26% to $9.4 billion, with B2B revenue growing by 18% [18] - Advertising revenue rose by 16%, marking another double-digit growth quarter [17] Market Data and Key Metrics Changes - In the U.S., room nights increased by high single digits, marking the fastest growth in over three years [7][16] - EMEA saw low double-digit growth in room nights, while Asia experienced over 20% growth [7] - B2B bookings increased for the 17th consecutive quarter, with a 26% rise [7] Company Strategy and Development Direction - The company is focused on delivering more value to travelers through personalized experiences and enhanced product offerings [8][10] - Investment in growth opportunities, particularly in B2B and advertising, is a key strategic priority [10][11] - The integration of AI into products is expected to drive engagement and improve operational efficiencies [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create value amidst a dynamic macro environment [14][15] - The company raised its full-year guidance based on strong demand trends observed in Q3 [6][22] - Economic indicators are being monitored closely, with a focus on maintaining agility in operations [14][22] Other Important Information - The company ended the quarter with $6.2 billion in unrestricted cash and short-term investments [21] - Free cash flow on a trailing 12-month basis was $3 billion, reflecting a strong operating model [21] - The company has $1.8 billion remaining in its share repurchase program [21] Q&A Session Summary Question: Thoughts on B2B growth and competitive environment - Management highlighted exceptional B2B performance, emphasizing strong supply and technology as key growth drivers [26][28] Question: Sources of margin expansion - Margin expansion is expected from optimized sales and marketing, improved cost of sales, and overhead management [34][35] Question: Update on replatforming and brand performance - Replatforming has enabled better scale and performance across brands, with Hotels.com and Vrbo showing strong growth [41][44] Question: Direct bookings and marketing efficiency - Direct bookings account for about two-thirds of consumer business, with ongoing improvements in conversion rates [68][70] Question: U.S. room nights acceleration drivers - Room nights growth was driven by strong performance across both consumer and B2B segments [73][75] Question: Outlook for Q4 amidst potential government shutdown - Guidance reflects stable trends, with monitoring of the government shutdown's potential impact on travel demand [86][89]

Financial Data and Key Metrics Changes - Bookings increased by 12% and revenue grew by 9%, with EBITDA margin expanding by over two points [4][14] - Gross bookings reached $30.7 billion, up 12%, while revenue was $4.4 billion, reflecting a 2.5-point benefit from foreign exchange [15][19] - Adjusted EBITDA was $1.4 billion, with a margin of 33%, and adjusted EPS grew by 23% to $7.57 [17][19] Business Line Data and Key Metrics Changes - B2C gross bookings were $21.3 billion, growing by 7%, while B2C revenue increased by 4% to $2.9 billion [15][16] - B2B gross bookings surged by 26% to $9.4 billion, with B2B revenue growing by 18% [16][19] - Advertising revenue rose by 16%, marking another double-digit growth quarter [15][19] Market Data and Key Metrics Changes - In the U.S., room nights increased by high single digits, marking the fastest growth in over three years [5][14] - EMEA saw low double-digit growth in room nights, while the rest of the world, including Asia, experienced high teens growth, with over 20% in Asia [5][14] - B2B bookings increased for the 17th consecutive quarter, reflecting strong demand across all regions [5][16] Company Strategy and Development Direction - The company is focused on delivering more value to travelers through personalized experiences and enhanced loyalty programs [6][8] - Continued investment in B2B growth opportunities and advertising, leveraging AI for improved targeting and measurement [9][10] - The company aims to drive operational efficiencies and margin expansion, with a focus on marketing leverage and cost management [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create value for stakeholders, despite monitoring economic indicators [12][20] - The demand environment improved, with expectations for continued momentum into Q4, although growth may moderate due to tougher comparisons [19][78] - The company is prepared for potential impacts from external factors, such as government shutdowns, while maintaining a strong outlook for Q4 [79][80] Other Important Information - The company ended the quarter with $6.2 billion in unrestricted cash and short-term investments, with a commitment to maintaining investment-grade debt levels [18] - Free cash flow for the trailing 12 months was $3 billion, reflecting a strong operating model [18] Q&A Session Summary Question: Thoughts on B2B growth and competitive environment - Management highlighted exceptional B2B performance, driven by strong supply and technology, with a focus on signing new partners and enhancing product offerings [23][25] Question: Sources of future margin expansion - Future margin expansion is expected from optimized sales and marketing, improved cost of sales, and overhead management [27][30] Question: Update on replatforming and brand performance - Replatforming has enabled better scale and performance across brands, with Hotels.com and Vrbo showing strong growth due to recent enhancements [37][41] Question: Direct bookings and marketing efficiency - Direct bookings account for about two-thirds of consumer business, with improvements in conversion rates and traffic metrics noted [60][62] Question: Outlook for Vrbo and market share - Vrbo is believed to have maintained or grown market share in the U.S., with positive growth in bookings and room nights [75] Question: Impact of government shutdown on guidance - Guidance reflects stable trends observed in October, with preparations for potential impacts from external events factored into the outlook [78][80]

Financial Data and Key Metrics Changes - In Q2 2025, gross bookings increased by 5%, revenue grew by 6%, and adjusted EBITDA margins expanded by nearly two points [7][24][27] - Booked room nights were up 7%, reaching 105 million, with B2B bookings growing 17% and advertising revenue increasing by 19% [10][24][25] - Adjusted EBITDA was $908 million, with an adjusted EPS of $4.24, reflecting a 21% increase year-over-year [32][36] Business Line Data and Key Metrics Changes - B2C gross bookings increased by 1% year-over-year, while B2B gross bookings rose by 17% [29][31] - Brand Expedia was the largest and fastest-growing consumer brand, with booked room nights growing by 5% [10][25][90] - Hotels.com bookings declined slightly, but room nights accelerated due to a brand relaunch [11][50] Market Data and Key Metrics Changes - The U.S. travel market showed muted growth, with low single-digit growth in booked room nights [9][27] - International revenue growth was up 13%, with notable strength in Asia, which grew almost 30% [27][31] - Bookings outside the U.S. grew by high single digits, particularly in the U.K. and Northern Europe [19][80] 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 [11][12][21] - AI is leveraged to enhance user experience, improve customer service, and drive marketing efficiencies [15][22] - The company aims to optimize its marketing spend while continuing to invest in growth drivers [37][122] Management's Comments on Operating Environment and Future Outlook - Management noted a soft U.S. travel market but observed an uptick in travel demand since July [9][39] - The company raised its annual guidance based on solid first-half performance and current trends [9][36] - Management expressed confidence in the company's ability to capture traffic from AI-driven searches and emphasized the importance of strong supply and loyalty programs [100][104] Other Important Information - The company has $9.2 billion in total liquidity, including $6.7 billion in unrestricted cash [34] - Free cash flow on a trailing twelve-month basis was $2 billion, reflecting the strength of the asset-light model [34] - The company plans to continue share repurchases, with $2.3 billion remaining in the program [35] Q&A Session Summary Question: Future growth alignment with strategic priorities - Management is confident in the portfolio mix and believes they are well-positioned to capture traffic from AI partners while focusing on direct traffic [42][43] Question: Hotels.com performance outlook - Management noted improvements from the brand relaunch and new product capabilities, with positive results from international markets [50][52] Question: Marketing leverage in B2C business - Management highlighted improvements in product quality and marketing effectiveness, aiming for better direct traffic and repeat bookings [57][58] Question: Promotional environment and pricing impact - Management observed increased supplier-driven promotions and noted that all-in pricing changes had a manageable impact on conversion rates [61][63] Question: AI's role in B2B and Vrbo performance - Management discussed ongoing improvements in Vrbo's supply and product offerings, while also exploring AI's potential in enhancing B2B operations [68][104] Question: Growth drivers in B2B - Management emphasized strong growth in Asia and the importance of creating value for partners to capture more travel spend [84][85] Question: Brand Expedia's market share - Management believes Brand Expedia is gaining market share due to its strong value proposition and record attach rates [90][92] Question: Cost structure and margin improvement - Management is focused on balancing cost reductions with growth investments to enhance margins [114][115] Question: Loyalty program performance - Management reported growth in loyalty program members and positive impacts from tailored strategies for different brands [120][121]

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]