Summary
Expedia Group, Inc. (EXPE) reported its first-quarter 2017 results, showcasing a notable increase in revenue and gross bookings. Revenue grew by 15% year-over-year to $2.19 billion, driven by strong performance across its segments, particularly in Core OTA and Advertising & Media (driven by trivago). While the company reported a net loss of $86.1 million for the quarter, this is an improvement from the $108.6 million net loss in the prior year's quarter. This improvement in net loss can be attributed to lower restructuring charges and amortization of intangible assets, despite an increase in selling and marketing expenses. The company's liquidity remains strong, with significant cash and cash equivalents and an undrawn credit facility, supported by positive operating cash flows and benefits from working capital, especially deferred merchant bookings. Investors should monitor the ongoing legal proceedings, particularly those related to occupancy taxes, and the company's strategy for integrating its various brands and expanding globally.
Financial Highlights
50 data points| Revenue | $2.19B |
| Cost of Revenue | $422.00M |
| Gross Profit | $1.77B |
| Operating Income | -$73.00M |
| Interest Expense | $43.00M |
| Net Income | -$86.00M |
| EPS (Basic) | $-0.57 |
| EPS (Diluted) | $-0.57 |
| Shares Outstanding (Basic) | 150.53M |
| Shares Outstanding (Diluted) | 150.53M |
Key Highlights
- 1Revenue increased by 15% to $2.19 billion in Q1 2017 compared to $1.90 billion in Q1 2016, driven by growth in Core OTA, trivago, and HomeAway segments.
- 2Total gross bookings increased by 14% to $23.61 billion in Q1 2017 compared to $20.70 billion in Q1 2016, with significant growth in the HomeAway segment (+48%).
- 3Net loss attributable to Expedia, Inc. narrowed to $86.1 million ($0.57 per share) from $108.6 million ($0.72 per share) in the prior year's quarter.
- 4Selling and marketing expenses increased by 22% to $1.27 billion, largely due to higher direct costs related to online and offline marketing for brands like trivago, Brand Expedia, Hotels.com, and HomeAway.
- 5Amortization of intangible assets decreased by 26% to $67 million, primarily due to the completion of amortization for certain intangible assets.
- 6The company maintained a strong liquidity position with $3.4 billion in cash and cash equivalents and short-term investments as of March 31, 2017, and an undrawn $1.5 billion revolving credit facility.
- 7Expedia continued to actively repurchase shares, with 0.3 million shares repurchased in Q1 2017 under its existing authorization.