In This Article:
Expedia Group, Inc. EXPE delivered second-quarter 2024 adjusted earnings of $3.51 per share, which rose 21% year over year. The figure surpassed the Zacks Consensus Estimate by 10.7%.
Revenues of $3.56 billion rose 6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.6%.
Year-over-year revenue growth was driven by solid momentum across B2B, Brand Expedia and Advertising. Strength in lodging offerings and growing momentum across non-U.S. regions contributed well.
Growing gross bookings, owing to solid momentum in the ‘booked room nights’ metric, was another positive.
However, softness in Trivago was concerning.
EXPE shares have lost 22.3% in a year against the Zacks Retail-Wholesale sector’s growth of 4.3%.
EXPE’s initiative to infuse generative AI technology into its services is expected to drive customer momentum by delivering an enhanced user experience.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote
Top Line in Detail
Revenues by Segment
B2C: Expedia generated $2.43 billion in revenues (68.3% of the total revenues) from the segment, growing 0.7% year over year.
B2B: The segment yielded revenues of $1.05 billion (29.5% of the total revenues), up 21.8% from the year-ago quarter.
Trivago: Revenues from the segment totaled $77 million (2.2% of the total revenues), down 6.1% year over year.
Revenues by Region
Expedia generated $2.25 billion in revenues (63.1% of the total revenues) from U.S. points of sale, up 3.4% from the prior-year quarter.
Revenues generated by non-U.S. points of sale totaled $1.3 billion (36.9% of the total revenues), up 10.6% on a year-over-year basis.
Revenues by Product Line
Lodging revenues were $2.86 billion, accounting for 80.4% of the total revenues. EXPE witnessed 6.1% growth in Lodging revenues on a year-over-year basis.
Air revenues were $111 million, representing 3.1% of the total revenues. The figure remained flat on a year-over-year basis. Nevertheless, the company experienced 6.6% year-over-year growth in ‘booked air tickets.’
Advertising and media for Expedia Group generated revenues of $152 million, up 27.7% from the prior-year quarter. The figure accounted for 4.3% of the total revenues.
Advertising and media for Trivago generated revenues of $77 million, down 6.1% from the prior-year quarter. The figure accounted for 2.2% of the total revenues.
Other revenues were $356 million (10% of the total revenues), up 2.3% year over year.
Gross Bookings
Expedia’s gross bookings were $28.8 billion, which increased 6% year over year. The reported figure beat the Zacks Consensus Estimate by 0.6%.
Agency’s gross bookings were $12.6 billion (43.6% of gross bookings), up 1.7% year over year. The figure beat the consensus mark by 2.6%.
Merchant’s gross bookings were $16.3 billion (56.4%), up 8.7% from the prior-year quarter’s figure. The figure lagged the consensus mark by 0.9%.
Lodging gross bookings grew 8% year over year in the reported quarter to $20.7 billion.
Strength in ‘booked room nights,’ which rose 10% from the year-ago quarter to 98.9 million, was a positive. The figure surpassed the consensus mark by 2.8%.