EXPE
Expedia Group, INC
NASDAQ
8-K: Expedia Group Reports Strong Q4 and Full Year 2024 Results, Reinstates Quarterly Dividend
Sentiment:
Earnings Release
6 February 2025 4:02 PM
Expedia Group announces double-digit growth in room nights, gross bookings, and revenue for Q4 2024, along with the reinstatement of a quarterly dividend.
Better than expected
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.
Summary
- Expedia Group reported its financial results for the fourth quarter and full year ended December 31, 2024.
- Booked room nights increased by 12% in Q4 and 9% for the full year.
- Total gross bookings and revenue grew by 13% and 10% respectively in Q4.
- For the full year, gross bookings and revenue both increased by 7% compared to 2023.
- B2C and B2B gross bookings growth accelerated 5 points to 9% and 24% respectively in Q4.
- Lodging gross bookings grew 12% year-over-year in Q4, with hotel bookings up 14%.
- Net income grew 124% and adjusted net income grew 30% year-over-year in Q4.
- Adjusted EBITDA increased 21% with 175 basis points of margin expansion, and adjusted EBIT increased 50% with 282 bps of margin expansion.
- The company repurchased over 12 million shares for $1.6 billion in 2024.
- A quarterly dividend of $0.40 per share was declared, starting in March 2025.
Sentiment
Score: 9
Explanation: The document presents a highly positive outlook with strong financial results, growth across key metrics, and the reinstatement of a dividend. The management's comments further reinforce this positive sentiment.
Positives
- Double-digit growth in room nights, gross bookings, and revenue in Q4 2024.
- Acceleration in both B2C and B2B bookings growth.
- Significant increase in net income and adjusted net income.
- Expansion of adjusted EBITDA and EBIT margins.
- Share repurchase program demonstrating confidence in the company's value.
- Reinstatement of quarterly dividend, indicating a commitment to shareholder returns.
- Strong free cash flow generation of $2.329 billion for the full year 2024, a 26% increase year-over-year.
Negatives
- Restructuring and related reorganization charges of $80 million for the full year 2024.
- Impairment of intangible assets of $147 million for the full year 2024.
- Other revenue decreased 3% for the full year 2024.
Risks
- The release contains forward-looking statements that are subject to risks and uncertainties.
- Actual results may differ materially from predicted results due to various factors described in the company's filings.
- Changes in the definition or methodology of supplemental metrics could be material.
Future Outlook
Expedia Group expresses confidence in its long-term outlook, supported by the reinstatement of the quarterly dividend.
Management Comments
- Ariane Gorin, CEO of Expedia Group, stated that the fourth quarter results exceeded expectations and reflect continued strong execution and better-than-expected travel demand.
- Ariane Gorin noted that all three core consumer brands achieved bookings growth and the B2B business further accelerated.
- The reinstatement of the quarterly dividend reflects the company's confidence in its long-term outlook and commitment to shareholder returns.
Industry Context
The strong results reflect a broader recovery in the travel industry, with increased demand for both leisure and business travel. Expedia's performance is indicative of its ability to capitalize on this trend through its diverse portfolio of brands and technology platform.
Comparison to Industry Standards
- Expedia's 12% growth in booked room nights in Q4 compares favorably to competitors like Booking Holdings, which has also seen strong growth but may vary in specific quarterly results.
- The 21% increase in Adjusted EBITDA and 175 bps margin expansion demonstrates efficient cost management and revenue generation, placing Expedia competitively against peers.
- The reinstatement of the dividend puts Expedia in line with mature tech companies that prioritize returning capital to shareholders, similar to practices seen in companies like Microsoft or Apple.
Stakeholder Impact
- Shareholders will benefit from the reinstated quarterly dividend and the share repurchase program.
- Employees may experience increased job security and potential for bonuses due to the company's strong performance.
- Customers will continue to have access to a wide range of travel options and services.
- Suppliers and partners may see increased business opportunities due to Expedia's growth.
Next Steps
- Expedia Group will pay a quarterly dividend of $0.40 per share on March 27, 2025.
- The company expects to maintain access to the webcast of the conference call on its IR website for approximately twelve months.
Key Dates
- March 6, 2025: Record date for the first quarter dividend.
- March 27, 2025: Payment date for the first quarter dividend of $0.40 per share.
- February 6, 2025: Date of earnings release and conference call.
- December 31, 2024: End of the fourth quarter and full year reporting period.
Keywords
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.