SEATTLE–(BUSINESS WIRE)–Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the first quarter ended March 31, 2022.
“As we have seen many times during Covid, this quarter was a tale of two stories. There was early impact from Omicron leftover from late last year, which faded as the turnaround in demand reached new highs since the start of Covid. While the war in Ukraine did slow some of the recovery in Europe, there too we see travel at new highs since the start of the pandemic. All in, while we are keeping an eye on various macro indicators including inflation and ongoing geopolitical tensions, we continue to see positive indicators for a strong recovery in leisure travel this summer. We are also pleased to see city, business, and international travel coming back, three components key to the complete return of travel,” said Peter Kern, Vice Chairman and CEO, Expedia Group. “This year is on track to be a big year of delivery for us with new product, marketplace, and platform innovation. We are excited to introduce much of this to the industry at our EXPLORE 22 conference later this week in Las Vegas.”
Key Highlights
- For the first quarter 2022, total gross bookings were $24.4 billion, up 58% compared to the first quarter 2021 and down 17% compared to the first quarter 2019, the smallest quarterly decline since the start of the pandemic.
- For the first quarter 2022, net loss was $122 million and adjusted net loss was $74 million. Adjusted EBITDA was $173 million, roughly flat versus the first quarter 2019, despite revenue being down 14%.
- On April 14th, Expedia Group entered into a new $2.5 billion unsecured credit facility, which provides $500 million in additional liquidity compared to the prior credit facilities. Additionally, on March 3rd, Expedia Group completed the early redemption of its €650 million Senior Notes that were due June 2022.
Financial Summary & Operating Metrics ($ millions except per share amounts)(1)
|
|
Expedia Group, Inc. |
||
|
Metric |
Q1 2022 |
Q1 2021 |
Δ Y/Y |
|
Stayed room night growth |
52% |
(47)% |
NM |
|
Gross bookings |
$24,412 |
$15,422 |
58% |
|
Revenue |
2,249 |
1,246 |
81% |
|
Operating income (loss) |
(135) |
(369) |
(63)% |
|
Net income (loss) attributable to Expedia Group common stockholders |
(122) |
(606) |
(80)% |
|
Diluted earnings (loss) per share |
$(0.78) |
$(4.17) |
(81)% |
|
Adjusted EBITDA(2) |
173 |
(58) |
NM |
|
Adjusted net income (loss)(2) |
(74) |
(294) |
(75)% |
|
Adjusted EPS(2) |
$(0.47) |
$(2.02) |
(77)% |
|
Free cash flow(2) |
2,835 |
2,002 |
42% |
|
(1)All comparisons are against comparable period of 2021 unless otherwise noted. |
|
(2)“Adjusted EBITDA” (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization), “Adjusted net income (loss),” “Adjusted EPS” and “Free cash flow” are non-GAAP measures as defined by the Securities and Exchange Commission (the “SEC”). See “Definitions of Non-GAAP Measures” and “Tabular Reconciliations for Non-GAAP Measures” on pages 11-19 herein for an explanation and reconciliation of non-GAAP measures used throughout this release. Expedia Group does not calculate or report net income by segment. |
Please refer to the “Glossary of Business Terms,” located in the Quarterly Results section on Expedia Group’s investor relations website, for business and financial statement definitions used throughout this release
Discussion of Results
The results for Expedia Group, Inc. (“Expedia Group” or “the Company”) include Brand Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, Egencia®, trivago®, HomeAway®, Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia Group™ Media Solutions, CarRentals.com™, Expedia® Cruises™, and Traveldoo®. Results include the related international points of sale for all brands. In April 2021, we completed the sale of Classic Vacations®, and in November 2021 we completed the sale of Egencia®. All amounts shown are in U.S. dollars.
Gross Bookings & Revenue
|
Gross Bookings & Revenue by Segment ($ millions) |
||||||||||
|
|
Gross Bookings |
|||||||||
|
|
First Quarter |
|||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Δ% |
|
|
Gross Bookings |
$ |
24,412 |
|
|
$ |
15,422 |
|
|
58 |
% |
|
|
|
|
|
|
|
|||||
|
|
Revenue |
|||||||||
|
|
First Quarter |
|||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Δ% |
|
|
Retail |
$ |
1,740 |
|
|
$ |
1,025 |
|
|
70 |
% |
|
B2B |
|
432 |
|
|
|
184 |
|
|
135 |
% |
|
Expedia Group (excluding trivago) |
$ |
2,172 |
|
|
$ |
1,209 |
|
|
80 |
% |
|
trivago |
|
116 |
|
|
|
46 |
|
|
153 |
% |
|
Intercompany eliminations |
|
(39 |
) |
|
|
(9 |
) |
|
327 |
% |
|
Total |
$ |
2,249 |
|
|
$ |
1,246 |
|
|
81 |
% |
For the first quarter of 2022, total gross bookings and total revenue both increased significantly compared to the first quarter of 2021. Booking trends for lodging, air, and other travel products all improved sequentially from the fourth quarter of 2021, which saw a larger impact from the COVID-19 Omicron variant.
Retail, B2B, and trivago segment revenue increased compared to the first quarter of 2021. Gross bookings and revenue growth reflect a significant improvement in travel trends compared to the first quarter of 2021.
Product & Services Detail
|
Revenue by Service Type ($ millions) |
||||||||
|
|
Revenue |
|||||||
|
|
First Quarter |
|||||||
|
|
|
2022 |
|
|
2021 |
|
Δ% |
|
|
Lodging |
$ |
1,610 |
|
$ |
903 |
|
78 |
% |
|
Air |
|
74 |
|
|
50 |
|
50 |
% |
|
Advertising and media |
|
166 |
|
|
88 |
|
88 |
% |
|
Other |
|
399 |
|
|
205 |
|
94 |
% |
|
Total |
$ |
2,249 |
|
$ |
1,246 |
|
81 |
% |
As a percentage of total revenue in the first quarter of 2022, lodging accounted for 72%, advertising and media accounted for 7%, air accounted for 3%, and all other revenues accounted for the remaining 18%.
Lodging revenue increased in the first quarter of 2022, compared to the first quarter of 2021, driven by a significant increase in room nights stayed across hotels and alternative accommodations as well as average daily rate (“ADR”) growth.
Air revenue increased in the first quarter of 2022, driven by an increase in tickets sold, as air travel demand improved compared to the first quarter of 2021.
Advertising and media revenue increased in the first quarter of 2022, compared to the first quarter of 2021, due to increases at both trivago and Expedia Group Media Solutions. Other revenue increased in the first quarter of 2022, compared to the first quarter of 2021, driven by growth from both travel insurance and car products.
Costs and Expenses ($ millions)
|
|
Costs and Expenses |
|
|
As a % of Revenue |
||||||||||||||
|
|
First Quarter |
|
|
First Quarter |
||||||||||||||
|
|
|
2022 |
|
|
2021 |
|
Δ% |
|
|
2022 |
|
|
2021 |
|
|
Δ (bps) |
||
|
Generally Accepted Accounting Principles (GAAP) Expenses – Expedia Group |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of revenue |
$ |
371 |
|
$ |
311 |
|
19 |
% |
|
|
16.5 |
% |
|
25.0 |
% |
|
(847 |
) |
|
Selling and marketing – direct |
|
1,176 |
|
|
487 |
|
141 |
% |
|
|
52.3 |
% |
|
39.1 |
% |
|
1,320 |
|
|
Selling and marketing – indirect |
|
163 |
|
|
177 |
|
(7 |
) % |
|
|
7.3 |
% |
|
14.2 |
% |
|
(690 |
) |
|
Selling and marketing |
|
1,339 |
|
|
664 |
|
102 |
% |
|
|
59.6 |
% |
|
53.3 |
% |
|
629 |
|
|
Technology and content |
|
270 |
|
|
247 |
|
9 |
% |
|
|
12.0 |
% |
|
19.8 |
% |
|
(780 |
) |
|
General and administrative |
|
186 |
|
|
156 |
|
19 |
% |
|
|
8.3 |
% |
|
12.5 |
% |
|
(423 |
) |
|
Total GAAP costs and expenses |
$ |
2,166 |
|
$ |
1,378 |
|
57 |
% |
|
|
96.3 |
% |
|
110.5 |
% |
|
(1,420 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Adjusted Expenses – Expedia Group |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of revenue* |
$ |
368 |
|
$ |
306 |
|
20 |
% |
|
|
16.4 |
% |
|
24.5 |
% |
|
(818 |
) |
|
Selling and marketing – direct |
|
1,176 |
|
|
487 |
|
141 |
% |
|
|
52.3 |
% |
|
39.1 |
% |
|
1,320 |
|
|
Selling and marketing – indirect* |
|
148 |
|
|
160 |
|
(7 |
) % |
|
|
6.6 |
% |
|
12.8 |
% |
|
(621 |
) |
|
Selling and marketing* |
|
1,324 |
|
|
647 |
|
105 |
% |
|
|
58.9 |
% |
|
51.9 |
% |
|
699 |
|
|
Technology and content* |
|
243 |
|
|
220 |
|
11 |
% |
|
|
10.8 |
% |
|
17.6 |
% |
|
(682 |
) |
|
General and administrative* |
|
141 |
|
|
122 |
|
15 |
% |
|
|
6.3 |
% |
|
9.8 |
% |
|
(353 |
) |
|
Total adjusted costs and expenses |
$ |
2,076 |
|
$ |
1,295 |
|
60 |
% |
|
|
92.3 |
% |
|
103.9 |
% |
|
(1,154 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Adjusted Expenses – Expedia Group (excluding trivago)** |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of revenue* |
$ |
364 |
|
$ |
303 |
|
20 |
% |
|
|
16.8 |
% |
|
25.0 |
% |
|
(824 |
) |
|
Selling and marketing* |
|
1,297 |
|
|
629 |
|
106 |
% |
|
|
59.7 |
% |
|
52.0 |
% |
|
774 |
|
|
Technology and content* |
|
230 |
|
|
208 |
|
11 |
% |
|
|
10.6 |
% |
|
17.2 |
% |
|
(656 |
) |
|
General and administrative* |
|
133 |
|
|
115 |
|
15 |
% |
|
|
6.1 |
% |
|
9.5 |
% |
|
(341 |
) |
|
Total adjusted costs and expenses excluding trivago |
$ |
2,024 |
|
$ |
1,255 |
|
61 |
% |
|
|
93.2 |
% |
|
103.7 |
% |
|
(1,046 |
) |
|
Note: Some numbers may not add due to rounding. |
|
*Adjusted expenses are non-GAAP measures. See pages 11-19 herein for a description and reconciliation to the corresponding GAAP measures. |
|
**Expedia Group (excluding trivago) figures exclude both trivago costs and expenses and trivago revenue when calculating ‘As a % of Revenue.’ |
Cost of Revenue
- For the first quarter of 2022, total GAAP and adjusted cost of revenue increased 19% and 20%, respectively, compared to the first quarter of 2021, primarily due to higher merchant processing fees, customer service costs, and cloud costs as a result of increased transaction volume which offset lower personnel costs related to the sale of Egencia in November 2021.
Selling and Marketing
- For the first quarter of 2022, total GAAP and adjusted selling and marketing expense increased 102% and 105%, respectively, compared to the first quarter of 2021, primarily due to a $689 million increase in direct costs driven by further improvement in travel demand. Total GAAP and adjusted indirect selling and marketing expenses, both decreased 7%, compared to the first quarter of 2021, due to lower personnel costs.
Technology and Content
- For the first quarter of 2022, total GAAP and adjusted technology and content expense increased 9% and 11%, respectively, compared to the first quarter of 2021, primarily due to an increase in personnel costs resulting from the prior year’s compensation change, which shifted discretionary bonus to salary beginning in the second quarter of 2021.
General and Administrative
- For the first quarter of 2022, total GAAP and adjusted general and administrative expense increased 19% and 15%, respectively, compared to the first quarter of 2021, primarily due to an increase in personnel costs resulting from the prior year’s compensation change, which shifted discretionary bonus to salary beginning in the second quarter of 2021. The year-over-year increase in GAAP general and administrative expense was also driven by higher stock-based compensation.
Net Income (Loss) Attributable to Expedia Group and Adjusted EBITDA*
|
Adjusted EBITDA by Segment ($ millions) |
||||||||||
|
|
First Quarter |
|||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Δ% |
|
|
Retail |
$ |
188 |
|
|
$ |
106 |
|
|
78 |
% |
|
B2B |
|
80 |
|
|
|
(57 |
) |
|
NM |
|
|
Unallocated overhead costs |
|
(120 |
) |
|
|
(103 |
) |
|
17 |
% |
|
Expedia Group (excluding trivago) |
$ |
148 |
|
|
$ |
(54 |
) |
|
NM |
|
|
trivago(1) |
|
25 |
|
|
|
(4 |
) |
|
NM |
|
|
Total Adjusted EBITDA |
$ |
173 |
|
|
$ |
(58 |
) |
|
NM |
|
|
|
|
|
|
|
|
|||||
|
Net income (loss) attributable to Expedia Group common stockholders(2) |
$ |
(122 |
) |
|
$ |
(606 |
) |
|
(80 |
)% |
|
(1) trivago is a separately listed company on the Nasdaq Global Select Market and, therefore, is subject to its own reporting and filing requirements which could result in possible differences that are not expected to be material to Expedia Group. |
|
(2) Expedia Group does not calculate or report net income (loss) by segment. |
|
* Adjusted EBITDA is a non-GAAP measure. See pages 11-19 herein for a description and reconciliation to the corresponding GAAP measures. |
|
Note: Some numbers may not add due to rounding. |
Depreciation and Amortization
Depreciation and amortization decreased 6% in the first quarter of 2022, compared to the first quarter of 2021, driven by completion of amortization related to certain intangible assets.
Interest and Other
Consolidated interest income increased $1 million in the first quarter of 2022 compared to the first quarter of 2021. Consolidated interest expense decreased $17 million in the first quarter of 2022, primarily as a result of interest related to high-cost senior notes outstanding in the prior year but extinguished in March 2021.
Consolidated other, net was a gain of $5 million in the first quarter of 2022, compared to a loss of $5 million in the first quarter of 2021, primarily due to mark-to-market gains on minority equity investments partly offset by foreign exchange losses. The loss in the first quarter of 2021 was primarily due to foreign exchange losses, partly offset by mark-to-market gains on minority equity investments.
Income Taxes
The GAAP effective tax rate was 41% compared to 22% in the first quarter of 2021. The change in the effective tax rate was primarily due to excess tax benefits from stock-based compensation recognized in the current year.
The effective tax rate on pretax adjusted net loss was 26% in the first quarter of 2022, compared to 21% in the first quarter of 2021. The change in effective tax rate was primarily due to the change in pretax adjusted net loss and discrete items.
Balance Sheet, Cash Flows and Capitalization
For the three months ended March 31, 2022, consolidated net cash provided by operating activities was approximately $3.0 billion. Consolidated free cash flow totaled $2.8 billion, an increase of $0.8 billion, compared to the prior year, primarily due to an increase in cash provided by operating activities related to changes in working capital and an improvement in Adjusted EBITDA.
Cash, cash equivalents and short-term investments totaled $5.6 billion at March 31, 2022 compared to $4.3 billion at December 31, 2021. The sequential increase was primarily driven by cash provided by operating activities. Restricted cash and cash equivalents, which primarily consist of traveler deposits for Vrbo bookings, was $2.6 billion at March 31, 2022 compared to $1.7 billion at December 31, 2021. Prepaid expenses and other current assets was $1.2 billion at March 31, 2022 compared to $827 million at December 31, 2021.
Deferred merchant bookings totaled approximately $9.2 billion at March 31, 2022, including approximately $830 million in deferred loyalty rewards compared to $5.7 billion at December 31, 2021, including approximately $800 million in deferred loyalty rewards. The trends in deferred merchant bookings reflect the seasonality of our business as deferred merchant bookings increase in the lead-up to the peak travel season and decrease as room night stays occur during the summer months.
At March 31, 2022, Expedia Group had stock-based awards outstanding representing approximately 12 million shares of Expedia Group common stock, consisting of approximately 8 million restricted stock units, (“RSUs”) and performance share units, (“PSUs”) in addition to stock options to purchase approximately 4 million shares of common stock with a weighted average exercise price of $134.62 and weighted average remaining life of 4.2 years.
On March 3, 2022, Expedia Group redeemed all of the €650 million of outstanding aggregate principal amount of the Company’s 2.5% Notes due in June 2022. The redemption price for the notes equaled 100% of the aggregate principal amount.
|
EXPEDIA GROUP, INC. |
|||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
|
(In millions, except share and per share data) |
|||||||
|
(Unaudited) |
|||||||
|
|
|
||||||
|
|
Three months ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
||||
|
Revenue |
$ |
2,249 |
|
|
$ |
1,246 |
|
|
Costs and expenses: |
|
|
|
||||
|
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1) |
|
371 |
|
|
|
311 |
|
|
Selling and marketing (1) |
|
1,339 |
|
|
|
664 |
|
|
Technology and content (1) |
|
270 |
|
|
|
247 |
|
|
General and administrative (1) |
|
186 |
|
|
|
156 |
|
|
Depreciation and amortization |
|
197 |
|
|
|
209 |
|
|
Legal reserves, occupancy tax and other |
|
21 |
|
|
|
(1 |
) |
|
Restructuring and related reorganization charges |
|
— |
|
|
|
29 |
|
|
Operating loss |
|
(135 |
) |
|
|
(369 |
) |
|
Other income (expense): |
|
|
|
||||
|
Interest income |
|
3 |
|
|
|
2 |
|
|
Interest expense |
|
(81 |
) |
|
|
(98 |
) |
|
Loss on debt extinguishment |
|
— |
|
|
|
(280 |
) |
|
Other, net |
|
5 |
|
|
|
(5 |
) |
|
Total other expense, net |
|
(73 |
) |
|
|
(381 |
) |
|
Loss before income taxes |
|
(208 |
) |
|
|
(750 |
) |
|
Provision for income taxes |
|
85 |
|
|
|
169 |
|
|
Net loss |
|
(123 |
) |
|
|
(581 |
) |
|
Net loss attributable to non-controlling interests |
|
1 |
|
|
|
3 |
|
|
Net loss attributable to Expedia Group, Inc. |
|
(122 |
) |
|
|
(578 |
) |
|
Preferred stock dividend |
|
— |
|
|
|
(28 |
) |
|
Net loss attributable to Expedia Group, Inc. common stockholders |
$ |
(122 |
) |
|
$ |
(606 |
) |
|
|
|
|
|
||||
|
Loss per share attributable to Expedia Group, Inc. available to common stockholders |
|
|
|
||||
|
Basic |
$ |
(0.78 |
) |
|
$ |
(4.17 |
) |
|
Diluted |
|
(0.78 |
) |
|
|
(4.17 |
) |
|
Shares used in computing earnings (loss) per share (000’s): |
|
|
|
||||
|
Basic |
|
156,336 |
|
|
|
145,181 |
|
|
Diluted |
|
156,366 |
|
|
|
145,181 |
|
|
|
|
|
|
||||
|
(1) Includes stock-based compensation as follows: |
|
|
|
||||
|
Cost of revenue |
$ |
3 |
|
|
$ |
5 |
|
|
Selling and marketing |
|
15 |
|
|
|
17 |
|
|
Technology and content |
|
27 |
|
|
|
27 |
|
|
General and administrative |
|
45 |
|
|
|
34 |
|
|
EXPEDIA GROUP, INC. |
|||||||
|
CONSOLIDATED BALANCE SHEETS |
|||||||
|
(In millions, except number of shares which are reflected in thousands and par value) |
|||||||
|
|
|||||||
|
|
March 31, 2022 |
|
December 31, 2021 |
||||
|
|
(Unaudited) |
|
|
||||
|
ASSETS |
|||||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
5,552 |
|
|
$ |
4,111 |
|
|
Restricted cash and cash equivalents |
|
2,583 |
|
|
|
1,694 |
|
|
Short-term investments |
|
— |
|
|
|
200 |
|
|
Accounts receivable, net of allowance of $66 and $65 |
|
1,736 |
|
|
|
1,264 |
|
|
Income taxes receivable |
|
93 |
|
|
|
85 |
|
|
Prepaid expenses and other current assets |
|
1,183 |
|
|
|
827 |
|
|
Total current assets |
|
11,147 |
|
|
|
8,181 |
|
|
Property and equipment, net |
|
2,169 |
|
|
|
2,180 |
|
|
Operating lease right-of-use assets |
|
395 |
|
|
|
407 |
|
|
Long-term investments and other assets |
|
1,468 |
|
|
|
1,450 |
|
|
Deferred income taxes |
|
864 |
|
|
|
766 |
|
|
Intangible assets, net |
|
1,368 |
|
|
|
1,393 |
|
|
Goodwill |
|
7,166 |
|
|
|
7,171 |
|
|
TOTAL ASSETS |
$ |
24,577 |
|
|
$ |
21,548 |
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable, merchant |
$ |
1,292 |
|
|
$ |
1,333 |
|
|
Accounts payable, other |
|
934 |
|
|
|
688 |
|
|
Deferred merchant bookings |
|
9,203 |
|
|
|
5,688 |
|
|
Deferred revenue |
|
178 |
|
|
|
166 |
|
|
Income taxes payable |
|
19 |
|
|
|
16 |
|
|
Accrued expenses and other current liabilities |
|
843 |
|
|
|
824 |
|
|
Current maturities of long-term debt |
|
— |
|
|
|
735 |
|
|
Total current liabilities |
|
12,469 |
|
|
|
9,450 |
|
|
Long-term debt, excluding current maturities |
|
7,719 |
|
|
|
7,715 |
|
|
Deferred income taxes |
|
58 |
|
|
|
58 |
|
|
Operating lease liabilities |
|
350 |
|
|
|
360 |
|
|
Other long-term liabilities |
|
414 |
|
|
|
413 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Common stock: $.0001 par value; Authorized shares: 1,600,000 |
|
— |
|
|
|
— |
|
|
Shares issued: 276,329 and 274,661; Shares outstanding: 151,554 and 150,125 |
|
|
|
||||
|
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 |
|
14,431 |
|
|
|
14,229 |
|
|
Treasury stock – Common stock and Class B, at cost; Shares 132,051 and 131,813 |
|
(10,309 |
) |
|
|
(10,262 |
) |
|
Retained earnings (deficit) |
|
(1,883 |
) |
|
|
(1,761 |
) |
|
Accumulated other comprehensive income (loss) |
|
(161 |
) |
|
|
(149 |
) |
|
Total Expedia Group, Inc. stockholders’ equity |
|
2,078 |
|
|
|
2,057 |
|
|
Non-redeemable non-controlling interests |
|
1,489 |
|
|
|
1,495 |
|
|
Total stockholders’ equity |
|
3,567 |
|
|
|
3,552 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
24,577 |
|
|
$ |
21,548 |
|
|
EXPEDIA GROUP, INC. |
|||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(In millions) |
|||||||
|
(Unaudited) |
|||||||
|
|
|
||||||
|
|
Three months ended March 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Operating activities: |
|
|
|
||||
|
Net loss |
$ |
(123 |
) |
|
$ |
(581 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation of property and equipment, including internal-use software and website development |
|
175 |
|
|
|
182 |
|
|
Amortization of intangible assets |
|
22 |
|
|
|
27 |
|
|
Amortization of stock-based compensation |
|
90 |
|
|
|
83 |
|
|
Deferred income taxes |
|
(101 |
) |
|
|
(175 |
) |
|
Foreign exchange loss on cash, restricted cash and short-term investments, net |
|
6 |
|
|
|
26 |
|
|
Realized loss on foreign currency forwards |
|
32 |
|
|
|
7 |
|
|
Gain on minority equity investments, net |
|
(21 |
) |
|
|
(8 |
) |
|
Loss on debt extinguishment |
|
— |
|
|
|
280 |
|
|
Other, net |
|
2 |
|
|
|
24 |
|
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable |
|
(476 |
) |
|
|
(300 |
) |
|
Prepaid expenses and other assets |
|
(356 |
) |
|
|
(495 |
) |
|
Accounts payable, merchant |
|
(41 |
) |
|
|
126 |
|
|
Accounts payable, other, accrued expenses and other liabilities |
|
267 |
|
|
|
34 |
|
|
Tax payable/receivable, net |
|
(13 |
) |
|
|
(2 |
) |
|
Deferred merchant bookings |
|
3,515 |
|
|
|
2,940 |
|
|
Deferred revenue |
|
13 |
|
|
|
2 |
|
|
Net cash provided by operating activities |
|
2,991 |
|
|
|
2,170 |
|
|
Investing activities: |
|
|
|
||||
|
Capital expenditures, including internal-use software and website development |
|
(156 |
) |
|
|
(168 |
) |
|
Sales and maturities of investments |
|
200 |
|
|
|
— |
|
|
Proceeds from initial exchange of cross-currency interest rate swaps |
|
337 |
|
|
|
— |
|
|
Payments for initial exchange of cross-currency interest rate swaps |
|
(337 |
) |
|
|
— |
|
|
Other, net |
|
(31 |
) |
|
|
(12 |
) |
|
Net cash provided by (used in) investing activities |
|
13 |
|
|
|
(180 |
) |
|
Financing activities: |
|
|
|
||||
|
Proceeds from issuance of long-term debt, net of issuance costs |
|
— |
|
|
|
1,967 |
|
|
Payment of long-term debt |
|
(724 |
) |
|
|
(1,706 |
) |
|
Debt extinguishment costs |
|
— |
|
|
|
(256 |
) |
|
Purchases of treasury stock |
|
(47 |
) |
|
|
(55 |
) |
|
Proceeds from exercise of equity awards and employee stock purchase plan |
|
101 |
|
|
|
269 |
|
|
Other, net |
|
7 |
|
|
|
(9 |
) |
|
Net cash provided by (used in) financing activities |
|
(663 |
) |
|
|
210 |
|
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents |
|
(11 |
) |
|
|
(73 |
) |
|
Net increase in cash, cash equivalents and restricted cash and cash equivalents |
|
2,330 |
|
|
|
2,127 |
|
|
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period |
|
5,805 |
|
|
|
4,138 |
|
|
Cash, cash equivalents and restricted cash and cash equivalents at end of period |
$ |
8,135 |
|
|
$ |
6,265 |
|
|
Supplemental cash flow information |
|
|
|
||||
|
Cash paid for interest |
$ |
117 |
|
|
$ |
129 |
|
|
Income tax payments, net |
|
26 |
|
|
|
11 |
|
Expedia Group, Inc.
Trended Metrics
(All figures in millions)
The supplemental 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, methodology and appropriateness of any of our supplemental metrics are subject to removal and/or change, and such changes could be material. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information filed with the SEC and the financial statements in our most recent earnings release.
|
|
|
|
|
2019 |
|
|
|
|
|
2020 |
|
|
|
|
|
2021 |
|
|
|
|
|
2022 |
|
|
|
|
Y/Y |
|
|
|||||||||||||||||||
|
|
|
|
Q1 |
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
|
|
Q1 |
|
|
|
Growth |
|
|
|||||||||||||||||||||
|
Gross bookings by business model |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Agency |
|
|
$ |
17,352 |
|
|
|
|
$ |
9,823 |
|
$ |
1,363 |
|
$ |
3,530 |
|
$ |
3,405 |
|
|
|
|
$ |
6,737 |
|
$ |
10,362 |
|
$ |
8,855 |
|
$ |
8,325 |
|
|
|
|
$ |
11,346 |
|
|
|
|
68 |
% |
|
|
|
Merchant |
|
|
|
12,057 |
|
|
|
|
|
8,062 |
|
|
1,350 |
|
|
5,101 |
|
|
4,162 |
|
|
|
|
|
8,685 |
|
|
10,453 |
|
|
9,870 |
|
|
9,138 |
|
|
|
|
|
13,066 |
|
|
|
|
50 |
% |
|
|
|
Total |
|
|
$ |
29,409 |
|
|
|
|
$ |
17,885 |
|
$ |
2,713 |
|
$ |
8,631 |
|
$ |
7,567 |
|
|
|
|
$ |
15,422 |
|
$ |
20,815 |
|
$ |
18,725 |
|
$ |
17,463 |
|
|
|
|
$ |
24,412 |
|
|
|
|
58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Revenue by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Retail |
|
|
$ |
1,901 |
|
|
|
|
$ |
1,582 |
|
$ |
463 |
|
$ |
1,246 |
|
$ |
702 |
|
|
|
|
$ |
1,025 |
|
$ |
1,715 |
|
$ |
2,351 |
|
$ |
1,730 |
|
|
|
|
$ |
1,740 |
|
|
|
|
70 |
% |
|
|
|
B2B |
|
|
|
556 |
|
|
|
|
|
485 |
|
|
68 |
|
|
203 |
|
|
186 |
|
|
|
|
|
184 |
|
|
305 |
|
|
490 |
|
|
481 |
|
|
|
|
|
432 |
|
|
|
|
135 |
% |
|
|
|
Corporate (Bodybuilding.com) |
|
|
|
— |
|
|
|
|
|
39 |
|
|
20 |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
NM |
|
|
|
|
Expedia Group (excluding trivago) |
|
|
$ |
2,457 |
|
|
|
|
$ |
2,106 |
|
$ |
551 |
|
$ |
1,449 |
|
$ |
888 |
|
|
|
|
$ |
1,209 |
|
$ |
2,020 |
|
$ |
2,841 |
|
$ |
2,211 |
|
|
|
|
$ |
2,172 |
|
|
|
|
80 |
% |
|
|
|
trivago |
|
|
|
237 |
|
|
|
|
|
154 |
|
|
18 |
|
|
70 |
|
|
38 |
|
|
|
|
|
46 |
|
|
115 |
|
|
163 |
|
|
99 |
|
|
|
|
|
116 |
|
|
|
|
153 |
% |
|
|
|
Intercompany eliminations |
|
|
|
(85 |
) |
|
|
|
|
(51 |
) |
|
(3 |
) |
|
(15 |
) |
|
(6 |
) |
|
|
|
|
(9 |
) |
|
(24 |
) |
|
(42 |
) |
|
(31 |
) |
|
|
|
|
(39 |
) |
|
|
|
327 |
% |
|
|
|
Total |
|
|
$ |
2,609 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
$ |
2,962 |
|
$ |
2,279 |
|
|
|
|
$ |
2,249 |
|
|
|
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Revenue by geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Domestic* |
|
|
$ |
1,476 |
|
|
|
|
$ |
1,317 |
|
$ |
463 |
|
$ |
1,033 |
|
$ |
698 |
|
|
|
|
$ |
1,001 |
|
$ |
1,736 |
|
$ |
2,177 |
|
$ |
1,655 |
|
|
|
|
$ |
1,656 |
|
|
|
|
65 |
% |
|
|
|
International* |
|
|
|
1,133 |
|
|
|
|
|
892 |
|
|
103 |
|
|
471 |
|
|
222 |
|
|
|
|
|
245 |
|
|
375 |
|
|
785 |
|
|
624 |
|
|
|
|
|
593 |
|
|
|
|
142 |
% |
|
|
|
Total |
|
|
$ |
2,609 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
$ |
2,962 |
|
$ |
2,279 |
|
|
|
|
$ |
2,249 |
|
|
|
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Revenue by business model |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Agency |
|
|
$ |
842 |
|
|
|
|
$ |
562 |
|
$ |
105 |
|
$ |
329 |
|
$ |
271 |
|
|
|
|
$ |
323 |
|
$ |
573 |
|
$ |
800 |
|
$ |
611 |
|
|
|
|
$ |
566 |
|
|
|
|
75 |
% |
|
|
|
Merchant |
|
|
|
1,435 |
|
|
|
|
|
1,340 |
|
|
368 |
|
|
1,032 |
|
|
521 |
|
|
|
|
|
796 |
|
|
1,338 |
|
|
1,923 |
|
|
1,480 |
|
|
|
|
|
1,485 |
|
|
|
|
86 |
% |
|
|
|
Advertising & media and other |
|
|
|
332 |
|
|
|
|
|
307 |
|
|
93 |
|
|
143 |
|
|
128 |
|
|
|
|
|
127 |
|
|
200 |
|
|
239 |
|
|
188 |
|
|
|
|
|
198 |
|
|
|
|
57 |
% |
|
|
|
Total |
|
|
$ |
2,609 |
|
|
|
|
$ |
2,209 |
|
$ |
566 |
|
$ |
1,504 |
|
$ |
920 |
|
|
|
|
$ |
1,246 |
|
$ |
2,111 |
|
$ |
2,962 |
|
$ |
2,279 |
|
|
|
|
$ |
2,249 |
|
|
|
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Adjusted EBITDA by segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Retail |
|
|
$ |
208 |
|
|
|
|
$ |
36 |
|
$ |
(191 |
) |
$ |
440 |
|
$ |
13 |
|
|
|
|
$ |
106 |
|
$ |
316 |
|
$ |
879 |
|
$ |
481 |
|
|
|
|
$ |
188 |
|
|
|
|
78 |
% |
|
|
|
B2B |
|
|
|
79 |
|
|
|
|
|
32 |
|
|
(123 |
) |
|
(47 |
) |
|
(52 |
) |
|
|
|
|
(57 |
) |
|
(4 |
) |
|
74 |
|
|
97 |
|
|
|
|
|
80 |
|
|
|
|
NM |
|
|
|
|
Unallocated overhead costs |
|
|
|
(135 |
) |
|
|
|
|
(143 |
) |
|
(106 |
) |
|
(96 |
) |
|
(117 |
) |
|
|
|
|
(103 |
) |
|
(116 |
) |
|
(116 |
) |
|
(119 |
) |
|
|
|
|
(120 |
) |
|
|
|
17 |
% |
|
|
|
Expedia Group (excluding trivago) |
|
|
$ |
152 |
|
|
|
|
$ |
(75 |
) |
$ |
(420 |
) |
$ |
297 |
|
$ |
(156 |
) |
|
|
|
$ |
(54 |
) |
$ |
196 |
|
$ |
837 |
|
$ |
459 |
|
|
|
|
$ |
148 |
|
|
|
|
NM |
|
|
|
|
trivago |
|
|
|
24 |
|
|
|
|
|
(1 |
) |
|
(16 |
) |
|
7 |
|
|
(4 |
) |
|
|
|
|
(4 |
) |
|
5 |
|
|
18 |
|
|
20 |
|
|
|
|
|
25 |
|
|
|
|
NM |
|
|
|
|
Total |
|
|
$ |
176 |
|
|
|
|
$ |
(76 |
) |
$ |
(436 |
) |
$ |
304 |
|
$ |
(160 |
) |
|
|
|
$ |
(58 |
) |
$ |
201 |
|
$ |
855 |
|
$ |
479 |
|
|
|
|
$ |
173 |
|
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Net income (loss) attributable to Expedia Group common stockholders |
|
|
$ |
(103 |
) |
|
|
|
$ |
(1,301 |
) |
$ |
(753 |
) |
$ |
(221 |
) |
$ |
(412 |
) |
|
|
|
$ |
(606 |
) |
$ |
(301 |
) |
$ |
362 |
|
$ |
276 |
|
|
|
|
$ |
(122 |
) |
|
|
|
(80 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Worldwide lodging (merchant & agency) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Stayed room nights |
|
|
|
80.8 |
|
|
|
|
|
69.4 |
|
|
19.2 |
|
|
48.8 |
|
|
36.1 |
|
|
|
|
|
37.1 |
|
|
56.6 |
|
|
77.8 |
|
|
62.9 |
|
|
|
|
|
56.5 |
|
|
|
|
|
|
|
|
|
Stayed room night growth |
|
|
|
9 |
% |
|
|
|
|
(14 |
)% |
|
(81 |
)% |
|
(58 |
)% |
|
(61 |
)% |
|
|
|
|
(47 |
)% |
|
196 |
% |
|
59 |
% |
|
74 |
% |
|
|
|
|
52 |
% |
|
|
|
|
|
|
|
|
ADR growth |
|
|
|
(1 |
)% |
|
|
|
|
2 |
% |
|
1 |
% |
|
8 |
% |
|
2 |
% |
|
|
|
|
8 |
% |
|
21 |
% |
|
19 |
% |
|
23 |
% |
|
|
|
|
20 |
% |
|
|
|
|
|
|
|
|
Revenue per night growth |
|
|
|
(2 |
)% |
|
|
|
|
6 |
% |
|
15 |
% |
|
14 |
% |
|
6 |
% |
|
|
|
|
10 |
% |
|
7 |
% |
|
17 |
% |
|
24 |
% |
|
|
|
|
17 |
% |
|
|
|
|
|
|
|
|
Lodging revenue growth |
|
|
|
7 |
% |
|
|
|
|
(9 |
)% |
|
(78 |
)% |
|
(52 |
)% |
|
(58 |
)% |
|
|
|
|
(41 |
)% |
|
215 |
% |
|
87 |
% |
|
116 |
% |
|
|
|
|
78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Worldwide air (merchant & agency) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Tickets sold growth |
|
|
|
11 |
% |
|
|
|
|
(26 |
)% |
|
(85 |
)% |
|
(74 |
)% |
|
(69 |
)% |
|
|
|
|
(50 |
)% |
|
299 |
% |
|
132 |
% |
|
92 |
% |
|
|
|
|
48 |
% |
|
|
|
|
|
|
|
|
Airfare growth |
|
|
|
(1 |
)% |
|
|
|
|
(5 |
)% |
|
(35 |
)% |
|
(36 |
)% |
|
(31 |
)% |
|
|
|
|
(26 |
)% |
|
30 |
% |
|
31 |
% |
|
32 |
% |
|
|
|
|
39 |
% |
|
|
|
|
|
|
|
|
Revenue per ticket growth |
|
|
|
(7 |
)% |
|
|
|
|
(41 |
)% |
|
NM |
|
|
(48 |
)% |
|
(35 |
)% |
|
|
|
|
(10 |
)% |
|
NM |
|
|
(2 |
)% |
|
(12 |
)% |
|
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
Air revenue growth |
|
|
|
3 |
% |
|
|
|
|
(56 |
)% |
|
NM |
|
|
(87 |
)% |
|
(80 |
)% |
|
|
|
|
(55 |
)% |
|
NM |
|
|
128 |
% |
|
68 |
% |
|
|
|
|
50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Contacts
Investor Relations
ir@expediagroup.com
Communications
press@expediagroup.com
