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]