EXPE
Expedia Group, INC
NASDAQ
8-K: Expedia Group Reports Q1 2025 Results: Bookings and Revenue Growth Meet Expectations, Bottom Line Beats Guidance
Sentiment:
Earnings Release
8 May 2025 4:01 PM
Expedia Group's Q1 2025 results show 4% bookings growth and 3% revenue growth year-over-year, with the bottom line exceeding expectations due to EBITDA margin expansion.
Better than expected
The bottom line meaningfully beat guidance.
Summary
- Expedia Group announced its financial results for the first quarter ended March 31, 2025.
- Total gross bookings grew by 4% in the first quarter, with B2C bookings up 1% and B2B bookings up 14%.
- Lodging gross bookings increased by 5% year-over-year, driven by hotel bookings which were up 6%.
- Revenue grew by 3% in the quarter, led by B2B and Advertising businesses, which grew 14% and 20%, respectively.
- The company reported a net loss increase of 49%, while adjusted net income grew 81% year-over-year.
- Adjusted EBITDA increased 16% with 105 basis points of margin expansion.
- Adjusted EBIT loss decreased 65% with 136 bps of margin expansion.
- Diluted loss per share was ($1.56), while Adjusted EPS was $0.40, growing 90% versus the prior year.
- Expedia repurchased approximately 1.7 million shares for $330 million in the first quarter.
- A quarterly dividend of $0.40 per share was paid on March 27, 2025.
Sentiment
Score: 7
Explanation: The report shows positive growth in key areas like bookings, revenue, and adjusted EBITDA, but the increased net loss tempers the overall sentiment. The company is meeting expectations and showing signs of improvement.
Positives
- Booked room nights grew 6% year-over-year.
- B2B gross bookings showed strong growth at 14%.
- Advertising revenue increased significantly by 20%.
- Adjusted net income grew substantially by 81% year-over-year.
- Adjusted EBIT loss decreased 65% with 136 bps of margin expansion.
- The company repurchased approximately 1.7 million shares for $330 million in the first quarter.
- Net cash provided by operating activities increased 3% to $2,952 million.
- Free cash flow increased 2% to $2,756 million.
Negatives
- First quarter net loss increased 49% year-over-year.
- Diluted loss per share was ($1.56) in the quarter.
- Revenue margin decreased by 8 bps to 9.5%.
Risks
- Softer travel demand within and into the U.S. impacted booked room nights.
- The definition or methodology of any of our supplemental metrics are subject to change, and such changes could be material.
- Weaker than expected demand in the US.
Future Outlook
Expedia Group is committed to continuing to deliver margin expansion while growing its top-line.
Management Comments
- We posted first quarter bookings and revenue within our guidance range despite weaker than expected demand in the US, drove bottom-line meaningfully above our guidance, and made significant progress against our strategic priorities.
- Looking ahead, we are committed to continuing to deliver margin expansion while growing our top-line, said Ariane Gorin, CEO of Expedia Group.
Industry Context
The report indicates resilience in the travel sector, particularly in international markets and the B2B segment, despite softened travel demand within the U.S.
Comparison to Industry Standards
- Expedia's growth in bookings and revenue aligns with the broader recovery trend in the travel industry, but the performance of competitors such as Booking Holdings (BKNG) and Airbnb (ABNB) would provide a more complete picture.
- Expedia's focus on B2B growth mirrors a strategy employed by other major players seeking to diversify revenue streams and capitalize on international travel demand.
- The adjusted EBITDA margin expansion is a positive sign, but benchmarking against peers like Marriott International (MAR) and Hilton Worldwide (HLT) would reveal its relative strength.
Stakeholder Impact
- Shareholders will likely react positively to the share repurchase program and dividend payment.
- Employees may benefit from the company's focus on growth and margin expansion.
- Customers should see continued investment in travel technology and services.
- Suppliers and partners could experience increased business opportunities through Expedia's B2B segment.
Key Dates
- March 27, 2025: Quarterly dividend of $0.40 per share paid.
- March 31, 2025: End of first quarter 2025.
- May 8, 2025: Earnings release date and conference call to discuss Q1 2025 financial results.
- May 29, 2025: Stockholders of record date for quarterly cash dividend.
- June 18, 2025: Payment date for quarterly cash dividend of $0.40 per share.
Keywords
Expedia, Earnings, Bookings, Revenue, EBITDA, Travel, Financial Results
EXPE
Expedia Group, INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
8 May 2025 9:38 PM
Quarterly Report
- The company reported a net loss attributable to Expedia Group, Inc. of $200 million, compared to a net loss of $135 million in the same period last year.
- Weaker than expected travel demand in the U.S. was experienced during the first quarter of 2025.
Better than expected
8 May 2025 4:01 PM
Earnings Release
- The bottom line meaningfully beat guidance.
Capital raise
21 February 2025 4:40 PM
Debt Offering Announcement
- Expedia Group completed a registered public offering of $1 billion aggregate principal amount of unsecured 5.400% Senior Notes due 2035.
- The net proceeds from the Senior Notes Offering were approximately $985 million, after deducting discounts and estimated offering expenses payable by Expedia Group.
- Expedia Group intends to use the net proceeds from the Senior Notes Offering for general corporate purposes, including, without limitation, (i) repayment, prepayment, redemption or repurchase of outstanding debt, (ii) dividends and stock repurchases and (iii) funding for working capital, capital expenditures, and acquisitions.
Better than expected
6 February 2025 4:02 PM
Earnings Release
- The company's Q4 results exceeded expectations due to strong execution and better-than-expected travel demand.
- B2C and B2B gross bookings growth accelerated 5 points to 9% and 24% respectively in Q4.
- Net income grew 124% and adjusted net income grew 30% year-over-year in Q4.
Better than expected
7 November 2024 5:33 PM
Quarterly Report
- The company's net income attributable to Expedia Group, Inc. increased significantly year-over-year.
- Gross bookings and adjusted EBITDA also showed positive growth, indicating better than expected performance.
Better than expected
7 November 2024 4:03 PM
Quarterly Report
- The company's results exceeded expectations for gross bookings and earnings.
- The company saw accelerated bookings growth in its consumer business for the second consecutive quarter.
- The company's advertising and B2B businesses continue to deliver strong double-digit growth.
Worse than expected
8 August 2024 5:40 PM
Quarterly Report
- Net income decreased in Q2 2024 compared to Q2 2023, indicating worse than expected profitability.
- The company incurred significant restructuring charges and legal reserves, negatively impacting the bottom line.
Worse than expected
8 August 2024 4:02 PM
Quarterly Report
- The company is adjusting its expectations for the rest of the year due to a softening in travel demand in July, indicating that future results may be worse than previously anticipated.
Worse than expected
2 May 2024 5:41 PM
Quarterly Report
- The company reported a net loss of $136 million, which is worse than expected given the revenue growth.
- The restructuring charges of $48 million negatively impacted the bottom line.
- The decline in ADRs is a concern and could impact future revenue growth.
Worse than expected
2 May 2024 4:02 PM
Quarterly Report
- The company lowered its full-year guidance due to the slower than expected recovery of Vrbo.
- Gross bookings were less robust than expected, despite revenue and earnings beating guidance.
Worse than expected
26 February 2024 5:00 PM
Current Report
- The company is incurring significant costs due to restructuring and is reducing its workforce, which is generally viewed negatively by investors.
Worse than expected
8 February 2024 5:40 PM
Annual Results
- The company recorded a goodwill impairment charge of $297 million related to the trivago segment.
- Intangible impairment charges of $129 million related to indefinite-lived trade names were recorded.
- Operating income decreased by 5% year-over-year.
Better than expected
8 February 2024 4:02 PM
Earnings Release and CEO Transition Announcement
- The company reported record full-year revenue and net income, exceeding previous results.
- Adjusted EBITDA and EPS also showed significant year-over-year growth.
- The company's B2B segment experienced substantial growth, indicating strong performance in that area.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.