10-QPeriod: Q1 FY2024

Expedia Group, Inc. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 3, 2024For Securities:EXPE

Summary

Expedia Group, Inc. reported its first-quarter 2024 financial results, showcasing an 8% increase in total revenue to $2.9 billion, driven by a strong 25% surge in its B2B segment and a 10% rise in lodging revenue. Despite a reported net loss of $135 million, the company saw a significant 38% increase in Adjusted EBITDA to $255 million, highlighting improved operational efficiency and profitability from core segments. The B2C segment's Adjusted EBITDA grew by 46%, and B2B by 29%, indicating positive momentum in these key areas. However, the quarter was impacted by a $48 million restructuring charge related to organizational recalibration and ongoing legal reserves for occupancy and other taxes. The company also continued its aggressive share repurchase program, buying back $606 million of its stock. While revenue and gross bookings showed modest growth, investors should note the persistent net loss and the significant operational expenses, including a substantial increase in direct selling and marketing costs. The company's focus remains on strengthening its core brands and technology platform, with plans to expand its loyalty program internationally.

Financial Highlights

50 data points
Beta

Revenue

$2.89B

Net Income

-$135.00M

-4.7% Net Margin

EPS (Diluted)

$-0.99

Total Assets

$24.76B

Cash & Equivalents

$5.69B

Free Cash Flow

$2.70B

Financial Statements
Beta
Revenue$2.89B
Operating Income-$110.00M
Interest Expense$62.00M
Net Income-$135.00M
EPS (Basic)$-0.99
EPS (Diluted)$-0.99
Shares Outstanding (Basic)135.50M
Shares Outstanding (Diluted)135.50M

Key Highlights

  • 1Total revenue increased by 8% year-over-year to $2.9 billion.
  • 2Adjusted EBITDA grew significantly by 38% to $255 million, indicating improved profitability.
  • 3The B2B segment revenue saw robust growth of 25%, driven by increased lodging revenue.
  • 4Lodging revenue increased by 10%, supported by growth in room nights stayed.
  • 5Advertising and media revenue increased by 23%, primarily due to Expedia Group Media Solutions.
  • 6The company incurred $48 million in restructuring and related reorganization charges.
  • 7Expedia repurchased approximately $606 million of its common stock during the quarter.

Frequently Asked Questions

For the three months ended March 31, 2024, Expedia Group reported a net loss attributable to Expedia Group, Inc. of $135 million.

The B2B segment demonstrated strong performance with revenue increasing by 25% to $833 million and Adjusted EBITDA growing by 29% to $172 million, primarily driven by increased lodging revenue.

Expedia Group incurred $48 million in restructuring and related reorganization charges in the first quarter of 2024, primarily related to employee severance and benefit costs, as part of recalibrating resources after organizational and technological transformation.

Expedia Group has an active share repurchase program. During the first quarter of 2024, the company repurchased approximately $606 million worth of its common stock under its $5 billion repurchase program, with $4.2 billion remaining authorized for future repurchases as of March 31, 2024.