01—Abstract
Summary
Summary of the 10-Q filed May 3, 2022. Cited figures are marked; the original filing is the authoritative source.
Expedia Group, Inc. reported strong revenue growth of 81% year-over-year for the first quarter of 2022, reaching $2.25 billiona.
This significant increase was driven by a robust recovery in the travel industry, with all segments—Retail, B2B, and trivago—experiencing substantial growth. Despite the revenue surge, the company reported a net loss of $123 millionb for the quarter, an improvement from the $581 million net loss in the prior year period.
This loss was influenced by a significant increase in selling and marketing expenses, which rose 102% to $1.34 billionc, reflecting the company's investment in capitalizing on the recovering travel demand. Adjusted EBITDA, a key non-GAAP metric, showed a substantial improvement, turning positive at $173 million compared to a negative $58 million in the first quarter of 2021, indicating a healthier operational performance.
02—Key points
Key Highlights
- Revenue grew by 81% to $2.25 billion in Q1 2022, driven by a strong rebound in travel demand across all segments.
- Net loss improved significantly to $123 million, from $581 million in the prior year period, demonstrating operational recovery.
- Selling and marketing expenses increased by 102% to $1.34 billion, reflecting increased investment in driving bookings amidst recovering demand.
- Adjusted EBITDA turned positive, reaching $173 million compared to a negative $58 million in Q1 2021, highlighting improved core operational profitability.
- Lodging revenue saw a substantial 78% increase, supported by a 52% rise in room nights and a 20% increase in Average Daily Rates (ADR).
- The company redeemed its 2.5% senior notes due in June 2022 for approximately €650 million on March 3, 2022.
- A new $2.5 billion credit facility was established on April 14, 2022, replacing previous credit lines, enhancing financial flexibility.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2022filed May 3, 2022Financial Statements
Q1 FY2022 against Q1 FY2021
| Line item | Q1 FY2022Q1 FY2021 | Change |
|---|---|---|
| Revenue | $2.25B$1.25B | +80.5% |
| Operating Income | -$135.00M-$369.00M | +63.4% |
| Interest Expense | $81.00M$98.00M | −17.3% |
| Net Income | -$122.00M-$578.00M | +78.9% |
| EPS (Basic) | $-0.78$-4.17 | +81.3% |
| EPS (Diluted) | $-0.78$-4.17 | +81.3% |
| Shares Outstanding (Basic) | 156.34M145.18M | +7.7% |
| Shares Outstanding (Diluted) | 156.37M145.18M | +7.7% |
05—Questions
Frequently Asked Questions
What was Expedia's financial performance in the first quarter of 2022?
In the first quarter of 2022, Expedia Group, Inc. reported an 81% increase in revenue to $2.25 billion compared to the same period in 2021. Despite this strong revenue growth, the company posted a net loss of $123 million. However, this represents a significant improvement from the $581 million net loss in the first quarter of 2021. Adjusted EBITDA, a key performance indicator, improved substantially to $173 million from a negative $58 million in the prior year, indicating positive operational momentum.
What factors contributed to the significant increase in selling and marketing expenses?
The substantial increase in selling and marketing expenses (102% year-over-year) was primarily driven by the company's strategy to capitalize on the recovering travel demand. Expedia increased its investment in direct costs, including traffic generation from search engines, affiliate programs, and other promotional activities, to drive bookings and revenue growth in the recovering market.
How is the company managing its debt and financial flexibility?
Expedia Group took steps to manage its debt and enhance financial flexibility. Notably, the company redeemed its €650 million of 2.5% senior notes due in June 2022 on March 3, 2022. Furthermore, on April 14, 2022, Expedia entered into a new $2.5 billion revolving credit facility, replacing its previous credit facilities, which provides enhanced liquidity and financial flexibility.
What is the company's outlook on the ongoing impact of COVID-19?
Expedia acknowledges that the COVID-19 pandemic continues to create uncertainty, impacting consumer sentiment, travel restrictions, and supply chain disruptions. While travel trends have improved significantly, the company notes that booking volumes are still below pre-COVID levels and cancellation rates remain slightly elevated. The full duration and impact of COVID-19 remain uncertain, making it difficult to predict the timing and shape of a sustained recovery.
06—Continue