8-KRegulation FDExhibits & Filings

Expedia Group, Inc. 8-K Report, Regulation FD Disclosure (May 18, 2020)

Filed May 18, 2020For Securities:EXPE

Summary

Expedia Group, Inc. filed an 8-K on May 18, 2020, to disclose a change in its segment reporting structure, effective January 1, 2020. This change is driven by a shift to a platform operating model, consolidating operations around a global travel supply division and a product and technology platform division. As a result, Expedia has realigned its reportable segments into three categories: Retail, B2B, and trivago. The Retail segment encompasses its primary consumer-facing travel brands, the B2B segment includes Expedia Business Services (Expedia Partner Solutions and Egencia), and the trivago segment focuses on its hotel metasearch advertising business. This recasting of historical financial data for 2019 and 2018 is intended to provide a clearer view of the company's operations under the new structure and does not alter previously reported total gross bookings, revenue, or adjusted EBITDA. Investors should note that this is a change in presentation and not a restatement of financial results. The company has provided recast selected financial data for the 2019 and 2018 quarterly periods to align with these new segments.

Key Highlights

  • 1Expedia Group has reorganized its business segments to reflect a new platform operating model.
  • 2The new segment structure consists of three reportable segments: Retail, B2B, and trivago.
  • 3The Retail segment includes major consumer brands like Expedia.com, Hotels.com, and Vrbo.
  • 4The B2B segment comprises Expedia Business Services, including Expedia Partner Solutions and Egencia (corporate travel management).
  • 5The trivago segment is focused on advertising revenue from its hotel metasearch operations.
  • 6This change is effective January 1, 2020, and historical financial data for 2019 and 2018 has been recast for comparability.
  • 7The recast does not affect previously reported total gross bookings, revenue, or adjusted EBITDA.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce and explain Expedia Group's change in its segment reporting structure, effective January 1, 2020. This recasting of financial data aligns with a new platform operating model and simplifies the presentation of the company's business operations.

Expedia Group has realigned its business into three reportable segments: Retail (consumer brands), B2B (business-to-business services including corporate travel), and trivago (hotel metasearch advertising).

No, the recasting of financial data for 2019 and 2018 does not represent a restatement of previously issued financial statements and does not affect the company's reported total gross bookings, revenue, or adjusted EBITDA for those periods. It is purely a change in how the company presents its existing results.

The change in segment reporting is driven by Expedia Group's strategic shift to a platform operating model. This new structure better reflects how the company manages its business and provides services across global travel supply and product/technology platforms, with a focus on different end customer types.