Expedia Group(US:EXPE)2025-11-06 22:30Financial 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]