Summary
Expedia Group, Inc. (EXPE) reported its first quarter 2023 financial results, showing a significant year-over-year increase in revenue, driven primarily by the B2B and B2C segments, with lodging and air travel showing strong recovery. Despite an overall increase in revenue, the company reported a net loss of $140 million, an increase from the prior year's net loss of $123 million, and a diluted loss per share of $0.95, compared to $0.78 in the prior year. This was partly impacted by higher selling and marketing expenses, which increased by 25% as the company shifts its strategy towards building direct customer relationships and loyalty programs. The company also incurred a significant TripAdvisor tax indemnification adjustment, impacting its tax provision. Operationally, gross bookings saw a robust 20% increase, signaling strong travel demand. The company continues to focus on its 'One Key' loyalty program and technology unification to enhance customer experiences and operational efficiency. Expedia maintained a strong liquidity position with $8.4 billion in cash, cash equivalents, and restricted cash, and an undrawn $2.5 billion credit facility.
Financial Highlights
49 data points| Revenue | $2.67B |
| Operating Income | -$121.00M |
| Interest Expense | $61.00M |
| Net Income | -$145.00M |
| EPS (Basic) | $-0.95 |
| EPS (Diluted) | $-0.95 |
| Shares Outstanding (Basic) | 152.48M |
| Shares Outstanding (Diluted) | 152.48M |
Key Highlights
- 1Revenue increased by 18% to $2.67 billion in Q1 2023 compared to Q1 2022, driven by strong performance in B2B and B2C segments, particularly in lodging and air travel.
- 2Net loss widened to $140 million ($0.95 loss per share) in Q1 2023 from $123 million ($0.78 loss per share) in Q1 2022, impacted by increased operational costs and a TripAdvisor tax adjustment.
- 3Gross bookings grew by a healthy 20% to $29.4 billion, indicating strong recovery and demand in the travel sector.
- 4Selling and marketing expenses increased by 25% to $1.67 billion, reflecting the company's strategic shift towards building direct customer relationships and loyalty programs.
- 5The company reported substantial growth in its B2B segment revenue (55%) and Adjusted EBITDA (65%), demonstrating the strength of its partner solutions.
- 6Expedia maintained a strong liquidity position with $8.39 billion in cash, cash equivalents, and restricted cash, and had no outstanding borrowings under its $2.5 billion revolving credit facility.
- 7A significant TripAdvisor tax indemnification adjustment of $69 million positively impacted 'Other, net' income but also influenced the tax provision.