Summary
Expedia Group, Inc. (EXPE) reported its third-quarter and nine-month results for the period ending September 30, 2020. The company experienced significant revenue declines year-over-year due to the ongoing impact of the COVID-19 pandemic on the travel industry. Revenue for the third quarter was $1.5 billion, a 58% decrease from the same period in 2019, while nine-month revenue was $4.3 billion, down 54%. This resulted in a net loss attributable to Expedia Group, Inc. common stockholders of $221 million for the third quarter and $2.3 billion for the nine months. Despite the challenging environment, Expedia Group took several measures to bolster liquidity and financial flexibility, including suspending share repurchases and quarterly dividends, and raising approximately $1.2 billion in gross proceeds through a private placement of preferred stock and warrants. The company also issued new senior notes totaling $3.75 billion in the third quarter to enhance its liquidity. The company's operating segments, Retail and B2B, both saw significant revenue declines, with the Retail segment's performance being partially offset by growth in Vrbo. The trivago segment also experienced a substantial revenue decrease. Management anticipates that the COVID-19 pandemic will continue to impact financial and operating results into 2021.
Financial Highlights
52 data points| Revenue | $1.50B |
| Operating Income | -$113.00M |
| Interest Expense | $113.00M |
| Net Income | -$192.00M |
| EPS (Basic) | $-1.56 |
| EPS (Diluted) | $-1.56 |
| Shares Outstanding (Basic) | 141.31M |
| Shares Outstanding (Diluted) | 141.31M |
Key Highlights
- 1Revenue for Q3 2020 was $1.5 billion, a 58% decrease compared to $3.6 billion in Q3 2019, largely due to the impact of COVID-19 on travel.
- 2Net loss attributable to common stockholders was $221 million in Q3 2020, compared to a net income of $409 million in Q3 2019.
- 3Nine-month revenue reached $4.3 billion, a 54% decrease from $9.3 billion in the prior year period, resulting in a net loss attributable to common stockholders of $2.3 billion.
- 4The company raised approximately $1.2 billion in gross proceeds through a private placement of Series A Preferred Stock and warrants in May 2020 to strengthen liquidity.
- 5Expedia Group issued new senior notes totaling $3.75 billion in May and July 2020 to bolster its cash position and financial flexibility.
- 6Significant goodwill and intangible asset impairments totaling $799 million and $172 million, respectively, were recognized for the nine months ended September 30, 2020, primarily due to the impact of COVID-19.
- 7Operating losses were reported for both the three-month ($113 million) and nine-month ($2.3 billion) periods ended September 30, 2020, a stark contrast to the operating income recorded in the prior year periods.