Summary
Expedia Group, Inc. reported significant revenue declines in the second quarter of 2020 due to the ongoing COVID-19 pandemic, with total revenue falling 82% year-over-year to $566 million. The company experienced a substantial operating loss of $849 million and a net loss attributable to common stockholders of $753 million. This downturn is largely attributed to a severe drop in travel demand, leading to a 90% decrease in gross bookings. Despite the challenging environment, the company took steps to bolster liquidity, including a significant draw on its revolving credit facility and a private equity investment, alongside issuing new senior notes. The company has also implemented cost-saving measures and suspended share repurchases and dividends. The balance sheet reflects a significant increase in cash and cash equivalents, driven by financing activities, alongside substantial debt issuance. The company incurred significant impairment charges on goodwill and intangible assets due to the pandemic's impact. While revenue is expected to remain depressed in the near term, management is focused on navigating the current economic climate, managing liquidity, and optimizing its cost structure for a future recovery.
Financial Highlights
51 data points| Revenue | $566.00M |
| Operating Income | -$849.00M |
| Interest Expense | $95.00M |
| Net Income | -$736.00M |
| EPS (Basic) | $-5.34 |
| EPS (Diluted) | $-5.34 |
| Shares Outstanding (Basic) | 141.07M |
| Shares Outstanding (Diluted) | 141.07M |
Key Highlights
- 1Revenue for the three months ended June 30, 2020, decreased by 82% to $566 million compared to $3,153 million in the prior year period.
- 2The company reported a net loss attributable to common stockholders of $753 million for the quarter, a significant decline from a net income of $183 million in the same period last year.
- 3Gross bookings plummeted by 90% year-over-year to $2,713 million for the three months ended June 30, 2020, reflecting the severe impact of COVID-19 on travel.
- 4Significant impairment charges of $765 million for goodwill and $121 million for intangible assets were recognized in the first quarter of 2020 due to the pandemic's impact.
- 5The company drew $1.9 billion on its revolving credit facility and raised approximately $1.2 billion in gross proceeds from a private equity investment to strengthen its liquidity position.
- 6Selling and marketing expenses were significantly reduced by 82% to $296 million, reflecting a strategic pullback in advertising spend due to decreased travel demand.
- 7The company suspended share repurchases and quarterly dividends, prioritizing cash preservation amidst the uncertain economic environment.