10-KPeriod: FY2024

Expedia Group, Inc. Annual Report, Year Ended Dec 31, 2024

Filed February 7, 2025For Securities:EXPE

Summary

Expedia Group, Inc. (EXPE) has filed its 10-K for the fiscal year ended December 31, 2024, highlighting a year of revenue growth driven by its B2B segment and steady performance in its core B2C operations. The company reported a 7% increase in total revenue, reaching $13.7 billion, with the B2B segment showing significant 21% growth. While lodging remains the largest revenue contributor (80%), the company experienced strong growth in advertising and media revenue (16%). Despite a challenging macroeconomic environment marked by inflation and geopolitical conflicts, Expedia managed to increase operating income by 28% and Adjusted EBITDA by 9%, indicating improved operational efficiency and cost management. Expedia continues to focus on its platform strategy, investing in technology and AI to enhance traveler experiences and drive direct bookings. The company also announced the reinstatement of quarterly dividends, signaling confidence in its financial health and commitment to returning value to shareholders. However, investors should remain aware of the ongoing risks related to competition, regulatory changes, and potential economic downturns that could impact the travel industry.

Financial Highlights

51 data points
Beta

Revenue

$13.69B

Net Income

$1.22B

8.9% Net Margin

EPS (Diluted)

$8.95

Total Assets

$22.39B

Cash & Equivalents

$4.18B

Free Cash Flow

$2.33B

Financial Statements
Beta
Revenue$13.69B
Operating Income$1.32B
Net Income$1.22B
EPS (Basic)$9.39
EPS (Diluted)$8.95
Shares Outstanding (Basic)131.43M
Shares Outstanding (Diluted)137.92M

Key Highlights

  • 1Total revenue increased by 7% to $13.7 billion for the year ended December 31, 2024.
  • 2The B2B segment demonstrated robust growth, with revenue increasing by 21% year-over-year.
  • 3Lodging remains the dominant revenue source, accounting for 80% of total revenue, with a 9% increase in room nights booked.
  • 4Advertising and media revenue saw a significant increase of 16%, driven by Expedia Group Media Solutions.
  • 5Operating income grew by 28% to $1.3 billion, and Adjusted EBITDA increased by 9% to $2.9 billion, reflecting improved profitability and cost efficiencies.
  • 6Expedia announced the reinstatement of quarterly dividends, with the first payment of $0.40 per share expected in March 2025.
  • 7The company continues to invest in its unified platform strategy, focusing on technology and AI to enhance customer experience and drive direct bookings.

Frequently Asked Questions

Expedia Group operates through three main business models: merchant, agency, and advertising. For the year ended December 31, 2024, the revenue breakdown was approximately 69% from the merchant model, 23% from the agency model, and 8% from advertising, media, and other services.

Expedia faces significant risks including intense competition from other online travel agencies, suppliers, search engines, and emerging technologies like AI. Other risks include potential disruptions in the travel industry due to macroeconomic factors, geopolitical instability, public health crises, regulatory changes impacting the alternative accommodations market, cybersecurity threats, and operational risks related to its technology infrastructure and third-party service providers.

Expedia Group has unified its technology, product, data engineering, and data science teams to build scalable services and improve efficiency. The company has migrated core B2C brands onto a unified technology front-end infrastructure and is leveraging AI and machine learning to improve product offerings and traveler experiences. Investments are ongoing in cloud platforms and developing configurable technical capabilities.

Expedia Group announced the reinstatement of quarterly dividends, with the first payment of $0.40 per share expected in March 2025. The company also has an active share repurchase program, with approximately $3.2 billion remaining authorized for repurchases under its 2023 Share Repurchase Program as of December 31, 2024.