01—Abstract
Summary
Summary of the 10-Q filed November 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Expedia Group, Inc. reported solid financial results for the third quarter and the first nine months of 2024, demonstrating resilience and growth across its segments.
Revenue for the three months ended September 30, 2024, increased by 3% year-over-year to $4.06 billiona, with a 6% increase for the nine-month period to $10.51 billion. This growth was primarily driven by a strong performance in the B2B segment and a recovery in the lodging and air travel businesses. Profitability also saw a significant improvement.
Net income attributable to Expedia Group, Inc. more than doubled to $684 millionb in the third quarter of 2024, up from $425 million in the prior year. Diluted earnings per share rose to $5.04 from $2.87.
The company continues to execute its strategy of building direct customer relationships and leveraging its unified technology platform, with initiatives like the One Key loyalty program showing promise in driving customer retention. The company maintained a strong liquidity position, with a significant cash balance and an undrawn revolving credit facility, while continuing its share repurchase program.
02—Key points
Key Highlights
- Revenue increased by 3% to $4.06 billion for the third quarter of 2024 and by 6% to $10.51 billion for the first nine months of 2024, driven by the B2B segment and improved lodging and air travel performance.
- Net income attributable to Expedia Group, Inc. surged to $684 million in Q3 2024, a substantial increase from $425 million in Q3 2023, reflecting improved operational performance and lower impairment charges.
- Diluted Earnings Per Share (EPS) significantly increased to $5.04 for the third quarter of 2024, compared to $2.87 in the same period last year.
- The B2B segment showed strong growth, with revenue up 18% for the quarter and 21% year-to-date, indicating successful expansion in business-to-business offerings.
- The company repurchased approximately $1.5 billion of its common stock under its $5 billion repurchase program during the first nine months of 2024, signaling confidence and a commitment to shareholder returns.
- Expedia maintained a strong financial position with $4.9 billion in cash and cash equivalents and short-term investments as of September 30, 2024, and an undrawn $2.5 billion revolving credit facility.
- Significant charges related to legal reserves, occupancy tax, and other matters, particularly an Italian VAT settlement reserve of $92 million, impacted profitability in the current period, though overall operating income still showed growth due to lower prior year impairments.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 8, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $4.06B$3.93B | +3.3% |
| Operating Income | $762.00M$607.00M | +25.5% |
| Net Income | $684.00M$425.00M | +60.9% |
| EPS (Basic) | $5.28$2.98 | +77.2% |
| EPS (Diluted) | $5.04$2.87 | +75.6% |
| Shares Outstanding (Basic) | 129.76M142.23M | −8.8% |
| Shares Outstanding (Diluted) | 135.73M147.75M | −8.1% |
05—Questions
Frequently Asked Questions
What is Expedia Group's revenue performance for the reported period?
For the third quarter of 2024, Expedia Group reported revenue of $4.06 billion, a 3% increase compared to the same period in 2023. For the first nine months of 2024, revenue was $10.51 billion, a 6% increase year-over-year. This growth was primarily driven by the B2B segment and improvements in lodging and air travel revenue.
How did Expedia Group's profitability change in the third quarter of 2024?
Profitability saw a significant improvement. Net income attributable to Expedia Group, Inc. more than doubled to $684 million in the third quarter of 2024, up from $425 million in the third quarter of 2023. Diluted earnings per share also rose to $5.04 from $2.87.
What is the status of Expedia Group's share repurchase program?
Expedia Group continues to execute its $5 billion share repurchase program authorized in October 2023. During the first nine months of 2024, the company repurchased approximately $1.5 billion worth of its common stock. As of September 30, 2024, $3.4 billion remained authorized for repurchase.
Are there any significant legal or tax-related charges impacting Expedia Group's results?
Yes, the company recorded significant charges related to legal reserves, occupancy tax, and other matters. Notably, a $92 million reserve was established for a potential Italian VAT settlement in the third quarter of 2024. While these charges impacted profitability, the overall operating income still grew due to lower impairment charges compared to the prior year.
06—Continue