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]