Expedia Group(EXPE) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The fourth quarter results exceeded expectations with room nights, gross bookings, and revenue all growing double digits [8][9] - Total gross bookings reached $24.4 billion, growing 13% year-over-year, with a five-point sequential acceleration in both B2C and B2B [35][41] - Revenue for the quarter was$ 3.2 billion, up 10%, primarily driven by the B2B business which grew 21% [36][44] - EBITDA for Q4 was $643 million, up 21%, with an EBITDA margin of 20.2%, expanding by 175 basis points [40][44] - Full year gross bookings were$ 111 billion, also up 7%, with revenue nearly $14 billion, reflecting a notable recovery in the B2C business [41][43] Business Line Data and Key Metrics Changes - Bookings for the consumer business accelerated to 9%, up five points sequentially, with all core brands (Brand Expedia, Hotels.com, Vrbo) seeing growth [9][12] - The B2B business experienced a significant increase in bookings growth to 24% [10] - The advertising business reported a strong quarter with 25% revenue growth [10][17] Market Data and Key Metrics Changes - International demand outperformed the US, with booked room nights growing high single digits in the US, low double digits in Europe, and high teens in the rest of the world [11][12] - Bookings growth outside the US accelerated four points sequentially, indicating strong international expansion [11][12] Company Strategy and Development Direction - The company aims to deliver more value for travelers, invest in growth opportunities, and drive operational efficiencies to expand margins [19][25] - Focus on enhancing the consumer business by targeting three major brands and improving loyalty programs [22][24] - Continued emphasis on B2B partnerships and unique supply offerings to drive growth [25][81] Management's Comments on Operating Environment and Future Outlook - The management noted a healthy travel demand environment in Q4, despite some softening in January [168] - The company remains optimistic about future growth, particularly in international markets and through enhanced loyalty programs [170][171] Other Important Information - The company plans to reinstate its quarterly dividend starting in March 2025, with a dividend of 40 cents per share [50][152] - The company repurchased$ 1.6 billion worth of shares in 2024, with a remaining authorization of approximately $3.2 billion [46][150] Q&A Session Summary Question: Sustainability of recovery for Vrbo and Hotels.com - Management acknowledged significant efforts in product supply and marketing that drove recovery, expressing confidence in continued growth for both brands [56][59] Question: Q1 guidance and potential headwinds - Management indicated a slight softening in the travel environment and provided a Q1 gross bookings growth forecast of 4% to 6% [67][68] Question: Strength in B2B segment in APAC - Management highlighted strong partnerships and market growth in APAC as key drivers for B2B strength [80][81] Question: Advertising revenue sustainability - Management expressed optimism about continued growth in advertising revenue, citing ongoing innovations and new ad types [96] Question: Capital returns philosophy - Management confirmed a commitment to share repurchases and reinstating dividends, emphasizing flexibility for future investments [150][152]