01—Abstract
Summary
Summary of the 10-Q filed August 6, 2021. Cited figures are marked; the original filing is the authoritative source.
Expedia Group, Inc. (EXPE) reported its second quarter 2021 financial results, indicating a significant recovery in revenue and booking activity compared to the pandemic-impacted second quarter of 2020.
Total revenue surged by 273% year-over-year to $2.1 billiona, driven by a substantial rebound in its Retail segment, which saw a 357% increase in revenue to $1.7 billion. This growth was fueled by a 667% increase in gross bookings, highlighting a strong recovery in leisure travel demand. Despite the revenue surge, the company still reported an operating loss of $132 million for the quarter, an improvement from the $849 million operating loss in the prior year period.
Net loss attributable to common stockholders narrowed to $301 millionb from $753 million in Q2 2020. The company's liquidity remains strong, with $5.5 billion in cash and cash equivalents and short-term investments as of June 30, 2021. Expedia also made progress in its debt management by issuing new convertible senior notes and senior unsecured notes, while also redeeming higher-cost debt.
02—Key points
Key Highlights
- Revenue more than quadrupled year-over-year, reaching $2.11 billion in Q2 2021, driven by a strong rebound in travel demand.
- Gross bookings saw a dramatic increase of 667% year-over-year, reaching $20.8 billion, signaling a significant recovery in customer activity.
- The Retail segment, the largest revenue contributor, experienced a 357% surge in revenue, indicating a strong recovery in its core online travel agency operations.
- Operating loss improved substantially to $132 million from $849 million in the prior year, demonstrating operational leverage as revenue recovered.
- The company maintained a robust liquidity position with $5.5 billion in cash, cash equivalents, and short-term investments as of June 30, 2021.
- Expedia completed the issuance of $1 billion in 0% Convertible Senior Notes due 2026 and $1 billion in 2.95% Senior Notes due 2031, strengthening its balance sheet and extending debt maturities.
- The company reported a net loss attributable to common stockholders of $301 million, an improvement from $753 million in the prior year period.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2021filed August 6, 2021Financial Statements
Q2 FY2021 against Q2 FY2020
| Line item | Q2 FY2021Q2 FY2020 | Change |
|---|---|---|
| Revenue | $2.11B$566.00M | +273.0% |
| Operating Income | -$132.00M-$849.00M | +84.5% |
| Interest Expense | $83.00M$95.00M | −12.6% |
| Net Income | -$172.00M-$736.00M | +76.6% |
| EPS (Basic) | $-2.02$-5.34 | +62.2% |
| EPS (Diluted) | $-2.02$-5.34 | +62.2% |
| Shares Outstanding (Basic) | 149.09M141.07M | +5.7% |
| Shares Outstanding (Diluted) | 149.09M141.07M | +5.7% |
05—Questions
Frequently Asked Questions
How did Expedia Group's revenue perform in the second quarter of 2021 compared to the previous year?
Expedia Group's total revenue significantly increased by 273% to $2.11 billion for the three months ended June 30, 2021, compared to $566 million for the same period in 2020. This substantial growth was primarily driven by the recovery in leisure travel and a strong rebound in the company's Retail segment.
What is the current financial health and liquidity position of Expedia Group?
Expedia Group maintained a strong liquidity position as of June 30, 2021, with $5.5 billion in cash and cash equivalents and short-term investments. The company also has access to substantial credit facilities that were largely untapped during the period. Their ability to generate positive cash flow from operations, as seen in the six months ended June 30, 2021 ($4.7 billion), indicates a healthy financial footing.
What steps has Expedia Group taken to manage its debt and capital structure?
During the first half of 2021, Expedia Group took proactive steps to manage its debt. This included the issuance of $1 billion in 0% Convertible Senior Notes due 2026 and $1 billion in 2.95% Senior Notes due 2031. They also used proceeds from these issuances to redeem higher-cost debt, specifically the 7.0% senior notes due 2025 and tender for a portion of the 6.25% senior notes due 2025, leading to a $280 million loss on debt extinguishment but improving their interest expense profile.
What is the outlook for Expedia Group regarding profitability and future growth given the ongoing COVID-19 pandemic?
While the company has seen a significant recovery in revenue and bookings, it still reported an operating loss and net loss in Q2 2021. Management indicates that the full duration and impact of COVID-19 remain uncertain, making it difficult to predict the exact shape and timing of a sustained recovery. However, cost-saving initiatives and the recovery in travel demand provide a positive outlook for improving profitability as travel volumes normalize.
06—Continue