Expedia Group(EXPE)2024-11-08 00:36Financial Data and Key Metrics - Gross bookings grew 7% YoY to 4.1 billion, with B2B, Brand Expedia, and advertising businesses leading the growth [31] - EBITDA grew 3% YoY to 2.3 billion, up 3% YoY, driven by higher EBITDA and lower capital expenditures [39] - The company repurchased 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]