Summary
Expedia Group, Inc. reported its first-quarter 2018 results, showing a significant increase in revenue to $2.5 billion, up 15% year-over-year. Despite the revenue growth, the company posted a net loss of $149 million for the quarter, compared to a loss of $84 million in the prior year period. This widened loss was primarily driven by increased operating expenses, particularly in selling and marketing, technology and content, and general and administrative categories, which outpaced revenue growth. Key segments contributing to revenue growth include Core OTA (up 13%), HomeAway (up 26%), and Egencia (up 23%). However, Adjusted EBITDA declined by 40% year-over-year to $124 million, largely due to a significant drop in trivago's and HomeAway's segment Adjusted EBITDA, alongside an increase in unallocated overhead costs. The company also noted changes in its effective tax rate, which decreased significantly to 12.0% from 35.6% in the prior year, largely attributable to the U.S. Tax Cuts and Jobs Act of 2017. The balance sheet shows an increase in cash and cash equivalents to $3.4 billion and a substantial increase in deferred merchant bookings, indicating strong future revenue potential.
Financial Highlights
51 data points| Revenue | $2.51B |
| Cost of Revenue | $487.00M |
| Gross Profit | $2.02B |
| Operating Income | -$165.00M |
| Interest Expense | $51.00M |
| Net Income | -$137.00M |
| EPS (Basic) | $-0.91 |
| EPS (Diluted) | $-0.91 |
| Shares Outstanding (Basic) | 151.82M |
| Shares Outstanding (Diluted) | 151.82M |
Key Highlights
- 1Total revenue increased by 15% to $2.51 billion in Q1 2018 compared to $2.19 billion in Q1 2017, driven by growth across all segments, particularly HomeAway (+26%) and Egencia (+23%).
- 2Net loss widened to $149 million ($0.91 per share diluted) in Q1 2018 from $84 million ($0.57 per share diluted) in Q1 2017, attributed to higher operating expenses.
- 3Selling and marketing expenses increased by 19% to $1.52 billion, representing 60.4% of revenue, reflecting increased direct and indirect costs.
- 4Adjusted EBITDA, a key performance metric, decreased by 40% to $124 million from $208 million in the prior year, impacted by increased expenses across segments and unallocated overhead.
- 5The effective tax rate significantly decreased to 12.0% from 35.6% due to the U.S. Tax Cuts and Jobs Act of 2017 and a reduction in excess tax benefits for stock compensation.
- 6Cash and cash equivalents, including restricted cash, increased to $3.65 billion as of March 31, 2018, from $2.54 billion in the prior year, providing strong liquidity.
- 7Deferred merchant bookings saw a substantial increase, reflecting customer prepayments for future travel, indicating a robust pipeline for upcoming revenue.