Double-digit room nights, gross bookings,
and revenue growth in the fourth quarter
Both B2C and B2B bookings growth accelerated
5 pts sequentially in the fourth quarter
Reinstates quarterly dividend
Expedia Group, Inc. (NASDAQ: EXPE) announced financial results
today for the fourth quarter and full year ended December 31,
2024.
Key Highlights
- Booked room nights grew 12% in the fourth quarter
year-over-year and 9% for full year 2024.
- Total gross bookings and revenue grew 13% and 10%
year-over-year, respectively in the fourth quarter. Full year gross
bookings and revenue both grew 7% compared to 2023.
- B2C and B2B gross bookings growth accelerated 5-points to 9%
and 24% respectively in the fourth quarter.
- Lodging gross bookings grew 12% year-over-year in the fourth
quarter; hotel bookings were up 14%.
- Fourth quarter net income grew 124% and adjusted net income
grew 30%, year-over-year. Adjusted EBITDA increased 21% with 175
basis points of margin expansion, and adjusted EBIT increased 50%
with 282 bps of margin expansion.
- Repurchased over 12 million shares for $1.6 billion in
2024.
- Declares a quarterly dividend of $0.40 starting in March
2025.
“Our fourth quarter results exceeded our expectations and
reflect continued strong execution and better-than-expected travel
demand. All three of our core consumer brands achieved bookings
growth and we further accelerated growth in our B2B business. These
results contributed to a solid full year 2024 for us," said Ariane
Gorin, CEO of Expedia Group. "The reinstatement of our quarterly
dividend reflects our confidence in our long-term outlook and
commitment to shareholder returns."
Financial Summary &
Operating Metrics (In millions, except per share amounts) - Fourth
Quarter 2024
Expedia Group, Inc.
Metric
Q4 2024
Q4 2023
Δ Y/Y
Booked room nights
86.4
77.4
12%
Gross bookings
$24,422
$21,672
13%
Revenue
$3,184
$2,887
10%
Operating income
$216
$104
109%
Net income attributable to Expedia Group
common stockholders
$299
$132
124%
Diluted earnings per share
$2.20
$0.92
139%
Adjusted EBITDA*
$643
$532
21%
Adjusted EBIT*
$338
$225
50%
Adjusted net income*
$315
$242
30%
Adjusted EPS*
$2.39
$1.72
39%
Net cash provided by (used in) operating
activities
$198
$(238)
NM
Free cash flow*
$7
$(415)
NM
* A reconciliation of non-GAAP financial
measures to the most comparable GAAP measures is provided at the
end of this release.
Financial Summary &
Operating Metrics (In millions, except per share amounts) - Full
Year 2024
Expedia Group, Inc.
Metric
2024
2023
Δ Y/Y
Booked room nights
383.9
350.9
9%
Gross bookings
$110,921
$104,079
7%
Revenue
$13,691
$12,839
7%
Operating income
$1,319
$1,033
28%
Net income attributable to Expedia Group
common stockholders
$1,234
$797
55%
Diluted earnings per share
$8.95
$5.31
69%
Adjusted EBITDA*
$2,934
$2,680
9%
Adjusted EBIT*
$1,646
$1,460
13%
Adjusted net income*
$1,622
$1,418
14%
Adjusted EPS*
$12.11
$9.69
25%
Net cash provided by operating
activities
$3,085
$2,690
15%
Free cash flow*
$2,329
$1,844
26%
* A reconciliation of non-GAAP financial
measures to the most comparable GAAP measures is provided at the
end of this release.
Reinstatement of Quarterly Dividend
Our Board of Directors has approved the reinstatement of a
quarterly cash dividend. The Executive Committee of the Board,
acting on its behalf, declared a first quarter dividend of $0.40
per share of the company’s outstanding common stock, to be paid on
March 27, 2025 to holders of record on March 6, 2025. Expedia Group
suspended its quarterly cash dividend in the second quarter of 2020
in response to uncertainty driven by the global coronavirus
pandemic. Going forward, Expedia Group expects to pay a cash
dividend on a quarterly basis, subject to approval by its Board of
Directors and to the Board's continuing determination that the
declarations of dividends are in the best interests of Expedia
Group and its stockholders.
Conference Call
Expedia Group, Inc. will webcast a conference call to discuss
fourth quarter 2024 financial results and certain forward-looking
information on Thursday, February 6, 2025 at 1:30 p.m. Pacific Time
(PT). The webcast will be open to the public and available via
ir.expediagroup.com. Expedia Group expects to maintain access to
the webcast on the IR website for approximately twelve months
subsequent to the initial broadcast.
About Expedia Group
Expedia Group, Inc. brands power travel for everyone, everywhere
through our global platform. Driven by the core belief that travel
is a force for good, we help people experience the world in new
ways and build lasting connections. We provide industry-leading
technology solutions to fuel partner growth and success, while
facilitating memorable experiences for travelers.
© 2025 Expedia, Inc., an Expedia Group company. All rights
reserved. Trademarks and logos are the property of their respective
owners. CST: 2029030-50
Expedia Group, Inc.
Trended Metrics
(All figures in
millions)
The metrics below are intended to
supplement the financial statements in this release and in our
filings with the SEC, and do not include adjustments for one-time
items, acquisitions, foreign exchange or other adjustments. The
definition or methodology of any of our supplemental metrics are
subject to change, and such changes could be material. We may also
discontinue certain supplemental metrics as our business evolves
over time. In the event of any discrepancy between any supplemental
metric and our historical financial statements, you should rely on
the information included in the financial statements filed with or
furnished to the SEC.
2022
2023
2024
Full Year
Y/Y Growth
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2022
2023
2024
Q424
2024
Units sold
Booked room nights
77.0
82.5
81.6
70.8
94.5
89.7
89.3
77.4
101.2
98.9
97.4
86.4
312
350.9
383.9
12%
9%
Booked air tickets
13.1
13.5
12.2
11.1
14.0
13.6
12.8
11.4
14.2
14.5
13.8
12.6
49.9
51.9
55.1
10%
6%
Gross bookings by business model
Agency
$11,346
$12,773
$10,904
$9,469
$13,425
$12,370
$10,927
$9,439
$13,301
$12,578
$11,379
$10,376
$44,492
$46,161
$47,634
10%
3%
Merchant
13,066
13,366
13,083
11,042
15,976
14,951
14,758
12,233
16,863
16,259
16,119
14,046
50,557
57,918
63,287
15%
9%
Total
$24,412
$26,139
$23,987
$20,511
$29,401
$27,321
$25,685
$21,672
$30,164
$28,837
$27,498
$24,422
$95,049
$104,079
$110,921
13%
7%
Lodging gross bookings
$17,756
$17,867
$17,099
$14,117
$21,055
$19,167
$18,513
$15,253
$21,903
$20,749
$20,027
$17,152
$66,839
$73,987
$79,831
12%
8%
Revenue by segment
B2C
$1,740
$2,420
$2,707
$1,874
$1,921
$2,415
$2,819
$1,958
$1,986
$2,432
$2,780
$2,076
$8,741
$9,113
$9,274
6%
2%
B2B
432
650
788
676
668
861
995
864
833
1,049
1,178
1,042
2,546
3,388
4,102
21%
21%
trivago (third-party revenue)
77
111
124
68
76
82
115
65
70
77
102
66
380
338
315
2%
(7)%
Total
$2,249
$3,181
$3,619
$2,618
$2,665
$3,358
$3,929
$2,887
$2,889
$3,558
$4,060
$3,184
$11,667
$12,839
$13,691
10%
7%
Revenue by product
Lodging
$1,610
$2,400
$2,881
$2,014
$2,029
$2,698
$3,233
$2,304
$2,228
$2,862
$3,317
$2,543
$8,905
$10,264
$10,950
10%
7%
Air
74
95
100
93
113
111
100
86
115
111
104
98
362
410
428
12%
4%
Advertising and media - EG(1)
89
102
98
108
99
119
125
140
145
152
167
175
397
483
639
25%
32%
Advertising and media - Trivago(1)
77
111
124
68
76
82
115
65
70
77
102
66
380
338
315
2%
(7)%
Other(2)
399
473
416
335
348
348
356
292
331
356
370
302
1,623
1,344
1,359
3%
1%
Total
$2,249
$3,181
$3,619
$2,618
$2,665
$3,358
$3,929
$2,887
$2,889
$3,558
$4,060
$3,184
$11,667
$12,839
$13,691
10%
7%
Revenue by geography
U.S. points of sale
$1,656
$2,208
$2,358
$1,717
$1,748
$2,172
$2,440
$1,787
$1,793
$2,246
$2,435
$1,898
$7,939
$8,147
$8,372
6%
3%
Non-U.S. points of sale
593
973
1,261
901
917
1,186
1,489
1,100
1,096
1,312
1,625
1,286
3,728
4,692
5,319
17%
13%
Total
$2,249
$3,181
$3,619
$2,618
$2,665
$3,358
$3,929
$2,887
$2,889
$3,558
$4,060
$3,184
$11,667
$12,839
$13,691
10%
7%
Adjusted EBITDA by segment(3)
B2C
$188
$582
$943
$411
$148
$653
$1,056
$468
$215
$654
$1,028
$537
$2,124
$2,325
$2,434
15%
5%
B2B
80
156
221
142
133
206
266
193
172
263
338
255
599
798
1,028
32%
29%
Other(4)
(95)
(90)
(85)
(104)
(96)
(112)
(106)
(129)
(132)
(131)
(116)
(149)
(374)
(443)
(528)
15%
19%
Total
$173
$648
$1,079
$449
$185
$747
$1,216
$532
$255
$786
$1,250
$643
$2,349
$2,680
$2,934
21%
9%
Net income (loss) attributable to Expedia
Group common stockholders(5)
$(122)
$(185)
$482
$177
$(145)
$385
$425
$132
$(135)
$386
$684
$299
$352
$797
$1,234
124%
55%
(1) Our advertising and media business
consists of Expedia Group ("EG") Media Solutions, which is
responsible for generating advertising revenue on our global online
travel brands, and third-party revenue for trivago, a leading hotel
metasearch site.
(2) Other revenue primarily includes
insurance, car rental, destination services and cruise revenue.
(3) See the section below titled "Tabular
Reconciliations for Non-GAAP Measures — Adjusted EBITDA by segment"
for additional details.
(4) Other is comprised of trivago,
corporate and intercompany eliminations.
(5) Expedia Group does not calculate or
report net income (loss) by segment.
Notes:
- All trivago revenue is classified as Non-U.S. point of
sale.
- Some numbers may not add due to rounding. All percentages
throughout this release are calculated on precise, unrounded
numbers.
EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except share and
per share data)
(Unaudited)
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Revenue
$
3,184
$
2,887
$
13,691
$
12,839
Costs and expenses:
Cost of revenue (exclusive of depreciation
and amortization shown separately below) (1)
335
340
1,443
1,573
Selling and marketing - direct
1,548
1,370
6,846
6,107
Selling and marketing - indirect (1)
201
193
781
756
Technology and content (1)
322
357
1,314
1,358
General and administrative (1)
210
199
805
771
Depreciation and amortization
212
208
838
807
Impairment of goodwill
—
—
—
297
Impairment of intangible assets
114
114
147
129
Legal reserves, occupancy tax and
other
18
2
118
8
Restructuring and related reorganization
charges (1)
8
—
80
—
Operating income
216
104
1,319
1,033
Other income (expense):
Interest income
50
45
235
207
Interest expense
(62
)
(61
)
(246
)
(245
)
Other, net
131
83
234
23
Total other income (expense), net
119
67
223
(15
)
Income before income taxes
335
171
1,542
1,018
Provision for income taxes
(34
)
(35
)
(318
)
(330
)
Net income
301
136
1,224
688
Net (income) loss attributable to
non-controlling interests
(2
)
(4
)
10
109
Net income attributable to Expedia
Group, Inc.
$
299
$
132
$
1,234
$
797
Earnings per share attributable to
Expedia Group, Inc. available to common stockholders:
Basic
$
2.32
$
0.96
$
9.39
$
5.50
Diluted
2.20
0.92
8.95
5.31
Shares used in computing earnings per
share (000's):
Basic
128,569
138,184
131,432
144,967
Diluted
135,732
144,470
137,919
150,228
(1) Includes stock-based compensation as
follows:
Cost of revenue
$
3
$
4
$
12
$
14
Selling and marketing
20
19
81
79
Technology and content
34
33
154
138
General and administrative
36
43
203
182
Restructuring and related reorganization
charges
—
—
8
—
EXPEDIA GROUP, INC.
CONSOLIDATED BALANCE
SHEETS
(In millions, except number of
shares which are reflected in thousands and par value)
December 31, 2024
December 31, 2023
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
4,183
$
4,225
Restricted cash and cash equivalents
1,391
1,436
Short-term investments
300
28
Accounts receivable, net of allowance of
$55 and $46
3,213
2,786
Income taxes receivable
39
47
Prepaid expenses and other current
assets
689
708
Total current assets
9,815
9,230
Property and equipment, net
2,413
2,359
Operating lease right-of-use assets
305
357
Long-term investments and other assets
1,698
1,238
Deferred income taxes
496
586
Intangible assets, net
817
1,023
Goodwill
6,844
6,849
TOTAL ASSETS
$
22,388
$
21,642
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable, merchant
$
2,031
$
2,041
Accounts payable, other
1,039
1,077
Deferred merchant bookings
8,517
7,723
Deferred revenue
164
164
Income taxes payable
51
26
Accrued expenses and other current
liabilities
766
752
Current maturities of long-term debt
1,043
—
Total current liabilities
13,611
11,783
Long-term debt
5,223
6,253
Deferred income taxes
19
33
Operating lease liabilities
265
314
Other long-term liabilities
471
473
Commitments and contingencies
Stockholders’ equity:
Common stock: $.0001 par value; Authorized
shares: 1,600,000
—
—
Shares issued: 287,509 and 282,149; Shares
outstanding: 123,271 and 131,522
Class B common stock: $.0001 par value;
Authorized shares: 400,000
—
—
Shares issued: 12,800 and 12,800; Shares
outstanding: 5,523 and 5,523
Additional paid-in capital
16,043
15,398
Treasury stock - Common stock and Class B,
at cost; Shares 171,515 and 157,903
(14,856
)
(13,023
)
Retained earnings (deficit)
602
(632
)
Accumulated other comprehensive income
(loss)
(232
)
(209
)
Total Expedia Group, Inc. stockholders’
equity
1,557
1,534
Non-redeemable non-controlling
interest
1,242
1,252
Total stockholders’ equity
2,799
2,786
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
22,388
$
21,642
EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In millions)
(Unaudited)
Year ended
December 31,
2024
2023
Operating activities:
Net income
$
1,224
$
688
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of property and equipment,
including internal-use software and website development
781
748
Amortization of stock-based
compensation
458
413
Amortization of intangible assets
57
59
Impairment of goodwill and intangible
assets
147
426
Deferred income taxes
74
62
Foreign exchange (gain) loss on cash,
restricted cash and short-term investments, net
95
(16
)
Realized loss on foreign currency
forwards, net
40
—
Gain on minority equity investments,
net
(289
)
(16
)
Other
79
55
Changes in operating assets and
liabilities, net of effects from acquisitions and dispositions:
Accounts receivable
(467
)
(741
)
Prepaid expenses and other assets
67
98
Accounts payable, merchant
(10
)
332
Accounts payable, other, accrued expenses
and other liabilities
(11
)
101
Tax payable/receivable, net
46
(91
)
Deferred merchant bookings
794
572
Net cash provided by operating
activities
3,085
2,690
Investing activities:
Capital expenditures, including
internal-use software and website development
(756
)
(846
)
Purchases of investments
(549
)
(28
)
Sales and maturities of investments
78
49
Other, net
(35
)
25
Net cash used in investing
activities
(1,262
)
(800
)
Financing activities:
Purchases of treasury stock
(1,839
)
(2,137
)
Proceeds from exercise of equity awards
and employee stock purchase plan
116
101
Other, net
(22
)
(60
)
Net cash used in financing
activities
(1,745
)
(2,096
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash and cash equivalents
(165
)
16
Net decrease in cash, cash equivalents
and restricted cash and cash equivalents
(87
)
(190
)
Cash, cash equivalents and restricted cash
and cash equivalents at beginning of year
5,661
5,851
Cash, cash equivalents and restricted
cash and cash equivalents at end of year
$
5,574
$
5,661
Supplemental cash flow
information
Cash paid for interest
$
231
$
231
Income tax payments, net
184
281
Notes & Definitions:
Booked Room Nights: Represents
booked hotel room nights and property nights for our B2C reportable
segment and booked hotel room nights for our B2B reportable
segment. Booked hotel room nights include both merchant and agency
hotel room nights. Property nights are related to our alternative
accommodation business.
Booked Air Tickets: Includes both
merchant and agency air bookings.
Gross Bookings: Generally represent
the total retail value of transactions booked, recorded at the time
of booking reflecting the total price due for travel by travelers,
including taxes, fees and other charges, adjusted for cancellations
and refunds.
Lodging Metrics: Reported on a
booked basis except for revenue, which is on a stayed basis.
Lodging consists of both merchant and agency model hotel and
alternative accommodations.
B2C: The B2C segment provides a
full range of travel and advertising services to our worldwide
customers through a variety of consumer brands including: Expedia,
Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers,
Hotwire.com, and CarRentals.com.
B2B: The B2B segment fuels a wide
range of travel and non-travel companies including airlines,
offline travel agents, online retailers, corporate travel
management and financial institutions, who leverage our leading
travel technology and tap into our diverse supply to augment their
offerings and market Expedia Group rates and availabilities to
their travelers.
trivago: The trivago segment
generates advertising revenue primarily from sending referrals to
online travel companies and travel service providers from its
localized hotel metasearch websites.
Corporate: Includes unallocated
corporate expenses.
Non-GAAP Measures
Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin,
Adjusted EBIT, Adjusted EBIT Margin, Leverage Ratio, Adjusted Net
Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses
(non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP
technology and content and non-GAAP general and administrative),
all of which are supplemental measures to GAAP and are defined by
the SEC as non-GAAP financial measures. These measures are among
the primary metrics by which management evaluates the performance
of the business and on which internal budgets are based. Management
believes that investors should have access to the same set of tools
that management uses to analyze our results. These non-GAAP
measures should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute for
or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss)
and Adjusted EPS have certain limitations in that they do not take
into account the impact of certain expenses to our consolidated
statements of operations. We endeavor to compensate for the
limitation of the non-GAAP measures presented by also providing the
most directly comparable GAAP measures and descriptions of the
reconciling items and adjustments to derive the non-GAAP measures.
Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income (Loss) and
Adjusted EPS also exclude certain items related to transactional
tax matters, which may ultimately be settled in cash. We urge
investors to review the detailed disclosure regarding these matters
in the Management Discussion and Analysis and Legal Proceedings
sections, as well as the notes to the financial statements,
included in the Company's annual and quarterly reports filed with
the Securities and Exchange Commission. The non-GAAP financial
measures used by the Company may be calculated differently from,
and therefore may not be comparable to, similarly titled measures
used by other companies.
Adjusted EBITDA is defined as net
income (loss) attributable to Expedia Group adjusted for: (1) net
income (loss) attributable to non-controlling interests; (2)
provision for income taxes; (3) total other expenses, net; (4)
stock-based compensation expense, including compensation expense
related to certain subsidiary equity plans; (5) acquisition-related
impacts, including
(i) amortization of intangible assets and
goodwill and intangible asset impairment, (ii) gains (losses)
recognized on changes in the value of contingent consideration
arrangements; and (iii) upfront consideration paid to settle
employee compensation plans of the acquiree;
(6) certain other items, including restructuring; (7) items
included in legal reserves, occupancy tax and other, which includes
reserves for potential settlement of issues related to
transactional taxes (e.g. hotel and excise taxes), related to court
decisions and final settlements, and charges incurred, if any, for
monies that may be required to be paid in advance of litigation in
certain transactional tax proceedings; (8) that portion of gains
(losses) on revenue hedging activities that are included in other,
net that relate to revenue recognized in the period; and (9)
depreciation.
The above items are excluded from our Adjusted EBITDA measure
because these items are non-cash in nature, or because the amount
and timing of these items is unpredictable, not driven by core
operating results and renders comparisons with prior periods and
competitors less meaningful. We believe Adjusted EBITDA is a useful
measure for analysts and investors to evaluate our future on-going
performance as this measure allows a more meaningful comparison of
our performance and projected cash earnings with our historical
results from prior periods and to the results of our competitors.
Moreover, our management uses this measure internally to evaluate
the performance of our business as a whole and our individual
business segments. In addition, we believe that by excluding
certain items, such as stock-based compensation and
acquisition-related impacts, Adjusted EBITDA corresponds more
closely to the cash operating income generated from our business
and allows investors to gain an understanding of the factors and
trends affecting the ongoing cash earnings capabilities of our
business, from which capital investments are made and debt is
serviced.
Adjusted EBIT is defined as net
income (loss) attributable to Expedia Group adjusted for: (1) net
income (loss) attributable to non-controlling interests; (2)
provision for income taxes; (3) total other expenses, net; (4)
acquisition-related impacts, including
(i) goodwill and intangible asset impairment,
(ii) gains (losses) recognized on changes in the value of
contingent consideration arrangements; and (iii) upfront
consideration paid to settle employee compensation plans of the
acquiree;
(5) certain other items, including restructuring; (6) items
included in legal reserves, occupancy tax and other, which includes
reserves for potential settlement of issues related to
transactional taxes (e.g. hotel and excise taxes), related to court
decisions and final settlements, and charges incurred, if any, for
monies that may be required to be paid in advance of litigation in
certain transactional tax proceedings; and (7) that portion of
gains (losses) on revenue hedging activities that are included in
other, net that relate to revenue recognized in the period.
The above items are excluded from our Adjusted EBIT measure
because the amount and timing of these items is unpredictable, not
driven by core operating results and renders comparisons with prior
periods and competitors less meaningful. We believe Adjusted EBIT
is a useful measure for analysts and investors to evaluate our
future on-going performance as this measure allows a more
comprehensive comparison of our performance with our historical
results from prior periods and to the results of our competitors.
Moreover, our management uses this measure internally to evaluate
the performance of our business as a whole and it allows investors
to gain an understanding of the factors and trends affecting
profitability, including the ongoing costs to operating our
business, which we believe are inclusive of non-cash items such as
stock-based compensation.
Adjusted Net Income (Loss)
generally captures all items on the statements of operations that
occur in normal course operations and have been, or ultimately will
be, settled in cash and is defined as net income (loss)
attributable to Expedia Group plus the following items, net of
tax(a): (1) stock-based compensation expense, including
compensation expense related to equity plans of certain
subsidiaries and equity-method investments; (2) acquisition-related
impacts, including;
(i) amortization of intangible assets,
including as part of equity-method investments, and goodwill and
intangible asset impairment; (ii) gains (losses) recognized on
changes in the value of contingent consideration arrangements;
(iii) upfront consideration paid to settle employee compensation
plans of the acquiree; and (iv) gains (losses) recognized on
non-controlling investment basis adjustments when we acquire or
lose controlling interests;
(3) currency gains or losses on U.S. dollar denominated cash;
(4) the changes in fair value of equity investments; (5) certain
other items, including restructuring charges; (6) items included in
legal reserves, occupancy tax and other, which includes reserves
for potential settlement of issues related to transactional taxes
(e.g., hotel occupancy and excise taxes), related court decisions
and final settlements, and charges incurred, if any, for monies
that may be required to be paid in advance of litigation in certain
transactional tax proceedings, including as part of equity method
investments; (7) discontinued operations; (8) the non-controlling
interest impact of the aforementioned adjustment items; and (9)
unrealized gains (losses) on revenue hedging activities that are
included in other, net.
Adjusted Net Income (Loss) includes preferred share dividends.
We believe Adjusted Net Income (Loss) is useful to investors
because it represents Expedia Group's combined results, taking into
account depreciation, which management believes is an ongoing cost
of doing business, but excluding the impact of certain expenses and
items not directly tied to the core operations of our
businesses.
(a) We use a long-term projected tax rate in the calculation of
adjusted net income as we believe this tax rate provides better
consistency across reporting periods and produces results that are
reflective of Expedia Group’s long-term effective tax rate. This
projected effective tax rate is a total tax rate, and eliminates
the effects of non-recurring and period-specific income tax items
which can vary in size and frequency. We apply this tax rate to
pretax income, as adjusted commensurate with our Adjusted Net
Income definition. Based on our long-term projections, in 2023 and
2024 we are applying a 21.5% effective tax rate to compute Adjusted
Net Income.
Adjusted EPS is defined as Adjusted
Net Income (Loss) divided by adjusted weighted average shares
outstanding, which, when applicable, include dilution from our
convertible debt instruments per the treasury stock method for
Adjusted EPS. The treasury stock method assumes we would elect to
settle the principal amount of the debt for cash and the conversion
premium for shares. If the conversion prices for such instruments
exceed our average stock price for the period, the instruments
generally would have no impact to adjusted weighted average shares
outstanding. This differs from the GAAP method for dilution from
our convertible debt instruments, which include them on an
if-converted method. We believe Adjusted EPS is useful to investors
because it represents, on a per share basis, Expedia Group's
consolidated results, taking into account depreciation, which we
believe is an ongoing cost of doing business, as well as other
items which are not allocated to the operating businesses such as
interest expense, taxes, foreign exchange gains or losses, and
minority interest, but excluding the effects of certain expenses
not directly tied to the core operations of our businesses.
Adjusted Net Income (Loss) and Adjusted EPS have similar
limitations as Adjusted EBITDA. In addition, Adjusted Net Income
(Loss) does not include all items that affect our net income (loss)
and net income (loss) per share for the period. Therefore, we think
it is important to evaluate these measures along with our
consolidated statements of operations.
Free Cash Flow is defined as net
cash flow provided by operating activities less capital
expenditures. Management believes Free Cash Flow is useful to
investors because it represents the operating cash flow that our
operating businesses generate, less capital expenditures but before
taking into account other cash movements that are not directly tied
to the core operations of our businesses, such as financing
activities, foreign exchange or certain investing activities. Free
Cash Flow has certain limitations in that it does not represent the
total increase or decrease in the cash balance for the period, nor
does it represent the residual cash flow for discretionary
expenditures. Therefore, it is important to evaluate Free Cash Flow
along with the consolidated statements of cash flows.
Adjusted Expenses (cost of revenue, direct
and indirect selling and marketing, technology and content and
general and administrative expenses) exclude stock-based
compensation related to expenses for stock options, restricted
stock units and other equity compensation under applicable
stock-based compensation accounting standards. Expedia Group
excludes stock-based compensation from these measures primarily
because they are non-cash expenses that we do not believe are
necessarily reflective of our ongoing cash operating expenses and
cash operating income. Moreover, because of varying available
valuation methodologies, subjective assumptions and the variety of
award types that companies can use when adopting applicable
stock-based compensation accounting standards, management believes
that providing non-GAAP financial measures that exclude stock-based
compensation allows investors to make meaningful comparisons
between our recurring core business operating results and those of
other companies, as well as providing management with an important
tool for financial operational decision making and for evaluating
our own recurring core business operating results over different
periods of time. There are certain limitations in using financial
measures that do not take into account stock-based compensation,
including the fact that stock-based compensation is a recurring
expense and a valued part of employees' compensation. Therefore, it
is important to evaluate both our GAAP and non-GAAP measures. See
the Notes to the Consolidated Statements of Operations for
stock-based compensation by line item.
Expedia Group, Inc. (excluding
trivago) In order to provide increased transparency on the
transaction-based component of the business, Expedia Group is
reporting results both in total and excluding trivago.
Tabular Reconciliations for Non-GAAP
Measures
Adjusted EBITDA (Adjusted Earnings Before
Interest, Taxes, Depreciation & Amortization) by Segment(1)
Three months ended December
31, 2024
B2C
B2B
trivago
Corporate &
Eliminations
Total
(In millions)
Operating income (loss)
$
423
$
215
$
10
$
(432
)
$
216
Realized gain (loss) on revenue hedges
(17
)
(1
)
—
—
(18
)
Restructuring and related reorganization
charges, excluding stock-based compensation
—
—
—
8
8
Legal reserves, occupancy tax and
other
—
—
—
18
18
Stock-based compensation
—
—
—
93
93
Impairment of intangible assets
—
—
—
114
114
Amortization of intangible assets
—
—
—
13
13
Depreciation
131
41
1
26
199
Adjusted EBITDA(1)
$
537
$
255
$
11
$
(160
)
$
643
Three months ended December
31, 2023
B2C
B2B
trivago
Corporate &
Eliminations
Total
(In millions)
Operating income (loss)
$
328
$
163
$
4
$
(391
)
$
104
Realized gain (loss) on revenue hedges
7
(2
)
—
—
5
Legal reserves, occupancy tax and
other
—
—
—
2
2
Stock-based compensation
—
—
—
99
99
Impairment of intangible assets
—
—
—
114
114
Amortization of intangible assets
—
—
—
15
15
Depreciation
133
32
1
27
193
Adjusted EBITDA(1)
$
468
$
193
$
5
$
(134
)
$
532
Year ended December 31,
2024
B2C
B2B
trivago
Corporate &
Eliminations
Total
(In millions)
Operating income (loss)
$
1,930
$
879
$
6
$
(1,496
)
$
1,319
Realized gain (loss) on revenue hedges
(22
)
4
—
—
(18
)
Restructuring and related reorganization
charges, excluding stock-based compensation
—
—
—
72
72
Legal reserves, occupancy tax and
other
—
—
—
118
118
Stock-based compensation
—
—
—
458
458
Impairment of intangible assets
—
—
—
147
147
Amortization of intangible assets
—
—
—
57
57
Depreciation
526
145
5
105
781
Adjusted EBITDA(1)
$
2,434
$
1,028
$
11
$
(539
)
$
2,934
Year ended December 31,
2023
B2C
B2B
trivago
Corporate &
Eliminations
Total
(In millions)
Operating income (loss)
$
1,810
$
681
$
51
$
(1,509
)
$
1,033
Realized gain (loss) on revenue hedges
(11
)
4
—
—
(7
)
Legal reserves, occupancy tax and
other
—
—
—
8
8
Stock-based compensation
—
—
—
413
413
Impairment of goodwill
—
—
—
297
297
Impairment of intangible assets
—
—
—
129
129
Amortization of intangible assets
—
—
—
59
59
Depreciation
526
113
5
104
748
Adjusted EBITDA(1)
$
2,325
$
798
$
56
$
(499
)
$
2,680
(1) Adjusted EBITDA for our B2C and B2B
segments includes allocations of certain expenses, primarily cost
of revenue and facilities, the total costs of our global travel
supply organizations, the majority of platform and marketplace
technology costs, and the realized foreign currency gains or losses
related to the forward contracts hedging a component of our net
merchant lodging revenue. We base the allocations primarily on
transaction volumes and other usage metrics. We do not allocate
certain shared expenses such as accounting, human resources,
certain information technology and legal to our reportable
segments. We include these expenses in Corporate and Eliminations.
Our allocation methodology is periodically evaluated and may
change.
Adjusted EBIT (Adjusted Earnings Before
Interest & Taxes) and Adjusted EBITDA (Adjusted Earnings Before
Interest, Taxes, Depreciation & Amortization)
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
(In millions)
Net income attributable to Expedia Group,
Inc.
$
299
$
132
$
1,234
$
797
Net income (loss) attributable to
non-controlling interests
2
4
(10
)
(109
)
Provision for income taxes
34
35
318
330
Total other (income) expense, net
(119
)
(67
)
(223
)
15
Operating income
216
104
1,319
1,033
Gain (loss) on revenue hedges related to
revenue recognized
(18
)
5
(18
)
(7
)
Restructuring and related reorganization
charges, including stock-based compensation
8
—
80
—
Legal reserves, occupancy tax and
other
18
2
118
8
Impairment of goodwill
—
—
—
297
Impairment of intangible assets
114
114
147
129
Adjusted EBIT
338
225
1,646
1,460
Stock-based compensation, excluding
restructuring and related reorganization charges
93
99
450
413
Depreciation and amortization
212
208
838
807
Adjusted EBITDA
$
643
$
532
$
2,934
$
2,680
Net income margin(1)
9.4
%
4.6
%
9.0
%
6.2
%
Adjusted EBIT margin(1)
10.6
%
7.8
%
12.0
%
11.4
%
Adjusted EBITDA margin(1)
20.2
%
18.5
%
21.4
%
20.9
%
Long-term debt, including current
maturities
$
6,266
$
6,253
Long-term debt to net income ratio
5.1
7.8
Long-term debt, including current
maturities
$
6,266
$
6,253
Unamortized discounts and debt issuance
costs
28
41
Adjusted debt
$
6,294
$
6,294
Leverage ratio(2)
2.1
2.3
(1) Net income, Adjusted EBIT and Adjusted
EBITDA margins represent net income (loss) attributable to Expedia
Group, Inc., Adjusted EBIT or Adjusted EBITDA divided by
revenue.
(2) Leverage ratio represents adjusted
debt divided by Adjusted EBITDA.
Adjusted Net Income & Adjusted EPS
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
(In millions, except share and
per share data)
Net income attributable to Expedia Group,
Inc.
$
299
$
132
$
1,234
$
797
Less: Net (income) loss attributable to
non-controlling interests
(2
)
(4
)
10
109
Less: Provision for income taxes
(34
)
(35
)
(318
)
(330
)
Income before income taxes
335
171
1,542
1,018
Amortization of intangible assets
13
15
57
59
Stock-based compensation
93
99
458
413
Legal reserves, occupancy tax and
other
18
2
118
8
Restructuring and related reorganization
charges, excluding stock-based compensation
8
—
72
—
Impairment of goodwill
—
—
—
297
Impairment of intangible assets
114
114
147
129
Unrealized (gain) loss on revenue
hedges
(7
)
2
(23
)
13
(Gain) loss on minority equity
investments, net
(168
)
(89
)
(289
)
(16
)
TripAdvisor tax indemnification
adjustment
—
—
(6
)
(67
)
Gain on sale of businesses and cost
investments
—
(1
)
(5
)
(25
)
Adjusted income before income taxes
406
313
2,071
1,829
GAAP Provision for income taxes
(34
)
(35
)
(318
)
(330
)
Provision for income taxes for
adjustments
(53
)
(32
)
(127
)
(63
)
Total Adjusted provision for income
taxes
(87
)
(67
)
(445
)
(393
)
Total Adjusted income tax rate
21.5
%
21.5
%
21.5
%
21.5
%
Non-controlling interests
(4
)
(4
)
(4
)
(18
)
Adjusted net income attributable to
Expedia Group, Inc.
$
315
$
242
$
1,622
$
1,418
GAAP diluted earnings per share
2.20
0.92
8.95
5.31
Amortization of intangible assets
0.09
0.10
0.42
0.40
Stock-based compensation
0.71
0.71
3.42
2.82
Legal reserves, occupancy tax and
other
0.14
0.01
0.88
0.05
Restructuring and related reorganization
charges, excluding stock-based compensation
0.06
—
0.54
—
Impairment of goodwill
—
—
—
2.03
Impairment of intangible assets
0.86
0.81
1.10
0.88
Unrealized (gain) loss on revenue
hedges
(0.05
)
0.02
(0.17
)
0.10
(Gain) loss on minority equity
investments, net
(1.27
)
(0.64
)
(2.16
)
(0.11
)
TripAdvisor tax indemnification
adjustment
—
—
(0.05
)
(0.46
)
Gain on sale of businesses and cost
investments
—
(0.01
)
(0.04
)
(0.17
)
Income tax effects and adjustments
(0.41
)
(0.23
)
(0.95
)
(0.43
)
Non-controlling interest
(0.01
)
—
(0.10
)
(0.87
)
Adjustment to GAAP dilutive securities
(1)
0.07
0.03
0.26
0.14
Adjusted earnings per share(2)
$
2.39
$
1.72
$
12.11
$
9.69
GAAP diluted weighted average shares
outstanding (000's)
135,732
144,470
137,919
150,228
Adjustment to dilutive securities
(000's)
(3,921
)
(3,921
)
(3,921
)
(3,921
)
Adjusted weighted average shares
outstanding (000's)
131,811
140,549
133,998
146,307
Ex-trivago Adjusted Net Income and
Adjusted EPS
Adjusted net income attributable to
Expedia Group, Inc.
$
315
$
242
$
1,622
$
1,418
Less: Adjusted net income attributable to
trivago
5
2
4
27
Adjusted net income excluding trivago
$
310
$
240
$
1,618
$
1,391
Adjusted earnings per share attributable
to Expedia Group, Inc.
$
2.39
$
1.72
$
12.11
$
9.69
Less: Adjusted earnings per share
attributable to trivago
0.04
0.01
0.03
0.18
Adjusted earnings per share excluding
trivago(2)
$
2.35
$
1.71
$
12.07
$
9.50
(1) In periods for which we have Adjusted
net income, the GAAP diluted average shares and diluted earnings
(loss) per share is presented adjusted for our convertible debt
instruments per the treasury stock method.
(2) Share and per share numbers may not
add due to rounding
Free Cash Flow
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
(In millions)
Net cash provided by (used in) operating
activities
$
198
$
(238
)
$
3,085
$
2,690
Less: Total capital expenditures
(191
)
(177
)
(756
)
(846
)
Free cash flow
$
7
$
(415
)
$
2,329
$
1,844
Adjusted Expenses (Cost of revenue, direct
and indirect selling and marketing, technology and content and
general and administrative expenses)
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
(In millions)
Cost of revenue
$
335
$
340
$
1,443
$
1,573
Less: stock-based compensation
3
4
12
14
Adjusted cost of revenue
$
332
$
336
$
1,431
$
1,559
Less: trivago cost of revenue(1)
3
3
16
17
Adjusted cost of revenue excluding
trivago
$
329
$
333
$
1,415
$
1,542
Selling and marketing - direct
$
1,548
$
1,370
$
6,846
$
6,107
Less: trivago selling and marketing -
direct(2)
30
32
199
173
Adjusted selling and marketing excluding
trivago - direct
$
1,518
$
1,338
$
6,647
$
5,934
Selling and marketing - indirect
$
201
$
193
$
781
$
756
Less: stock-based compensation
20
19
81
79
Adjusted selling and marketing expense -
indirect
$
181
$
174
$
700
$
677
Less: trivago selling and marketing -
indirect(1)
3
3
11
11
Adjusted selling and marketing trivago -
indirect
$
178
$
171
$
689
$
666
Technology and content
$
322
$
357
$
1,314
$
1,358
Less: stock-based compensation
34
33
154
138
Adjusted technology and content
$
288
$
324
$
1,160
$
1,220
Less: trivago technology and
content(1)
12
12
47
46
Adjusted technology and content excluding
trivago
$
276
$
312
$
1,113
$
1,174
General and administrative
$
210
$
199
$
805
$
771
Less: stock-based compensation
36
43
203
182
Adjusted general and administrative
$
174
$
156
$
602
$
589
Less: trivago general and
administrative(1)
7
10
30
34
Adjusted general and administrative
excluding trivago
$
167
$
146
$
572
$
555
Total adjusted overhead(3)
$
643
$
654
$
2,462
$
2,486
Note: Some numbers may not add due to
rounding.
(1) trivago amount presented without
stock-based compensation as those are included with the
consolidated totals above.
(2) Selling and marketing expense adjusted
to add back B2C direct marketing spend on trivago eliminated in
consolidation.
(3) Total adjusted overhead expenses is
the sum of adjusted expenses for Selling and marketing - indirect,
Technology and content, and General and administrative.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. These forward-looking
statements are based on assumptions that are inherently subject to
uncertainties, risks and changes in circumstances that are
difficult to predict. The use of words such as “believe,”
“estimate,” “expect” and “will,” or the negative of these terms or
other similar expressions, among others, generally identify
forward-looking statements. However, these words are not the
exclusive means of identifying such statements. In addition, any
statements that refer to expectations, projections or other
characterizations of future events or circumstances are
forward-looking statements and may include statements relating to
future revenues, expenses, margins, profitability, net income
(loss), earnings per share and other measures of results of
operations and the prospects for future growth of Expedia Group,
Inc.’s business. Actual results may differ materially from the
results predicted and reported results should not be considered as
an indication of future performance. The potential risks and
uncertainties that could cause actual results to differ from the
results predicted include, among others, those described in the
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of our most
recently filed periodic reports on Form 10-K and Form 10-Q, which
are available on our investor relations website at
ir.expediagroup.com and on the SEC website at www.sec.gov. All
information provided in this release is as of February 6, 2025.
Undue reliance should not be placed on forward-looking statements
in this release, which are based on information available to us on
the date hereof. We undertake no duty to update this information
unless required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250206693072/en/
Investor Relations ir@expediagroup.com
Communications press@expediagroup.com
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