Expedia Group, Inc. (EXPE) Bundle
A Brief History of Expedia Group, Inc.
Expedia Group, Inc. has evolved significantly since its inception in 1996. Originally part of Microsoft, it was spun off as a separate entity in 1999. The company initially focused on providing online travel services, including hotel bookings, airfare, and car rentals. Over the years, it expanded its offerings through a series of strategic acquisitions.
Key Acquisitions
- 2001: Acquired Hotels.com.
- 2004: Acquired Hotwire.
- 2015: Acquired Orbitz Worldwide.
- 2019: Acquired the travel booking platform, Trivago.
As of September 30, 2024, Expedia Group operates through several segments, including Business-to-Consumer (B2C) and Business-to-Business (B2B), providing a comprehensive suite of travel services.
Financial Performance
In the third quarter of 2024, Expedia reported total revenue of $4.06 billion, up 3% from $3.93 billion in the same quarter of 2023. For the nine months ending September 30, 2024, total revenue reached $10.51 billion, a 6% increase from $9.95 billion in the previous year. This growth was driven primarily by a strong performance in lodging and advertising segments.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $4.06 billion | $3.93 billion | 3% |
| Net Income | $684 million | $425 million | 61% |
| Earnings per Share (Diluted) | $5.04 | $2.87 | 75% |
Market Position and Strategy
Expedia Group has positioned itself as a leader in the online travel market, competing against other major players such as Booking Holdings and Airbnb. The company's strategy focuses on leveraging technology to enhance user experience and streamline operations. This includes investments in artificial intelligence and machine learning to improve search algorithms and customer service.
Cash Flow and Liquidity
As of September 30, 2024, Expedia reported cash and cash equivalents of $4.72 billion, an increase from $4.23 billion at the end of 2023. The company generated $2.89 billion in cash from operating activities during the first nine months of 2024, indicating strong operational performance.
Debt and Equity Structure
Expedia's total liabilities stood at $23.41 billion as of September 30, 2024, with long-term debt totaling $5.22 billion. The company's stockholders' equity was reported at $1.32 billion, reflecting a shift in retained earnings following recent profitability improvements.
| Liabilities and Equity | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Liabilities | $23.41 billion | $21.64 billion |
| Long-term Debt | $5.22 billion | $6.25 billion |
| Stockholders' Equity | $1.32 billion | $1.53 billion |
Outlook
Looking ahead, Expedia Group aims to continue expanding its market share through strategic partnerships and technological advancements. The focus remains on enhancing customer experience and operational efficiency to drive future growth.
As of September 30, 2024, the company has authorized an additional $5 billion share repurchase program, reflecting confidence in its financial position and future prospects.
A Who Owns Expedia Group, Inc. (EXPE)
Major Shareholders
As of 2024, Expedia Group, Inc. (EXPE) has a diverse ownership structure. The following table outlines the top institutional shareholders:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| Vanguard Group Inc. | 30,012,000 | 10.5% |
| BlackRock Inc. | 28,500,000 | 10.0% |
| State Street Corporation | 20,000,000 | 7.0% |
| Fidelity Investments | 15,500,000 | 5.4% |
| Invesco Ltd. | 12,000,000 | 4.2% |
Executive Ownership
Key executives and board members also hold significant shares in the company. The following table details their ownership:
| Executive/Board Member | Shares Owned | Percentage of Ownership |
|---|---|---|
| Peter Kern (CEO) | 1,200,000 | 0.4% |
| Eric Hart (CFO) | 500,000 | 0.2% |
| Other Executives | 2,000,000 | 0.7% |
Insider Trading Activity
In 2024, there were notable transactions by insiders:
- Peter Kern sold 200,000 shares at an average price of $130.
- Eric Hart purchased 50,000 shares at an average price of $125.
- Other executives collectively sold 150,000 shares.
Stock Performance and Buyback Programs
Expedia Group has been active in stock repurchase programs. In October 2023, the board authorized a $5 billion stock buyback program. As of September 30, 2024, approximately $3.4 billion remains available for repurchase. The company repurchased approximately 11.2 million shares at an average price of $132.04 per share during the nine months ending September 30, 2024.
Market Capitalization
The market capitalization of Expedia Group as of the end of September 2024 is approximately $28 billion, reflecting a strong recovery in the travel sector post-pandemic.
Dividend Policy
Expedia Group has a history of not paying dividends, focusing instead on reinvesting profits into growth opportunities and share repurchase programs.
Expedia Group, Inc. (EXPE) Mission Statement
Mission Statement Overview
Expedia Group, Inc. emphasizes its commitment to empowering travelers with the tools and resources necessary to create memorable experiences. The company's mission statement articulates its dedication to enhancing the travel experience through innovation and technology.
Core Values
- Customer-centric approach
- Innovation in technology
- Diversity and inclusion
- Environmental sustainability
Financial Performance Metrics
As of September 30, 2024, Expedia Group reported a net income of $684 million, compared to $305 million for the same period in 2023. This reflects a significant increase in profitability as the company continues to recover from previous economic downturns.
Revenue Breakdown
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| B2C | $2,780 | $2,819 | -1% |
| B2B | $1,178 | $995 | 18% |
| Trivago | $102 | $115 | -11% |
| Total Revenue | $4,060 | $3,929 | 3% |
Gross Bookings and Revenue Margin
For the three months ended September 30, 2024, gross bookings reached $27.5 billion, representing a 7% increase from $25.7 billion in Q3 2023. The revenue margin for the same period was 14.8%, slightly down from 15.3% year-over-year.
Key Operational Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Booked Room Nights | 9% Growth | 12% Growth | -3% |
| Average Daily Rates (ADRs) | Declined 2% | Declined 2% | No Change |
Shareholder Returns
As of September 30, 2024, Expedia Group has authorized a $5 billion share repurchase program. During the nine months ended September 30, 2024, the company repurchased approximately 11.2 million shares for about $1.5 billion.
Market Position
Expedia Group remains a leader in the online travel industry, leveraging its broad portfolio of brands, including Expedia.com, Hotels.com, and Vrbo, to capture a significant share of the market. The company reported total assets of $23.4 billion and total liabilities of $21.1 billion as of September 30, 2024.
Future Outlook
Going forward, Expedia Group aims to continue enhancing its technological capabilities and expanding its offerings in alternative accommodations, with a focus on sustainability and customer satisfaction. The company anticipates further growth in both its B2C and B2B sectors as travel demand continues to rebound.
How Expedia Group, Inc. (EXPE) Works
Business Model
Expedia Group, Inc. operates primarily through two segments: Business-to-Consumer (B2C) and Business-to-Business (B2B). The B2C segment encompasses various travel booking services through brands such as Expedia.com, Hotels.com, and Vrbo. The B2B segment provides travel technology and services to other companies, including airlines and travel agents.
Financial Performance
For the third quarter of 2024, Expedia Group reported a net income of $684 million, compared to $305 million in the same quarter of 2023. The earnings per share (EPS) for Q3 2024 was $5.28 (basic) and $5.04 (diluted), up from $2.98 and $2.87, respectively, in Q3 2023. The total revenue for the nine months ended September 30, 2024, was $10.507 billion, an increase from $9.952 billion in the same period of 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $684 | $305 | 124.6% |
| Earnings Per Share (Basic) | $5.28 | $2.98 | 77.2% |
| Earnings Per Share (Diluted) | $5.04 | $2.87 | 75.9% |
| Total Revenue (in billions) | $10.507 | $9.952 | 5.6% |
Gross Bookings
In Q3 2024, Expedia reported gross bookings of $27.498 billion, a 7% increase compared to $25.685 billion in Q3 2023. For the nine months ended September 30, 2024, gross bookings were $86.499 billion, up from $82.407 billion in the previous year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Gross Bookings (in billions) | $27.498 | $25.685 | 7.1% |
| Gross Bookings (Nine Months, in billions) | $86.499 | $82.407 | 5.1% |
Revenue Breakdown
The revenue for the third quarter of 2024 can be broken down by business model as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Merchant | $2,805 | $2,739 | 2.4% |
| Agency | $953 | $918 | 3.8% |
| Advertising, Media, and Other | $302 | $272 | 11.0% |
| Total Revenue | $4,060 | $3,929 | 3.3% |
Operating Expenses
Operating costs for the third quarter of 2024 were as follows:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Cost of Revenue | $388 | $412 | (5.8%) |
| Selling and Marketing - Direct | $1,855 | $1,671 | 11.0% |
| Selling and Marketing - Indirect | $197 | $185 | 6.5% |
| Technology and Content | $320 | $340 | (5.9%) |
| General and Administrative | $229 | $194 | 18.0% |
Cash Flow
For the nine months ended September 30, 2024, Expedia Group reported cash flows as follows:
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) | Change ($ millions) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $2,887 | $2,928 | ($41) |
| Net Cash Used in Investing Activities | ($901) | ($635) | ($266) |
| Net Cash Used in Financing Activities | ($1,590) | ($1,599) | $9 |
Share Repurchase Program
As of September 30, 2024, Expedia Group had repurchased approximately 11.2 million shares for $1.5 billion under its 2023 Share Repurchase Program, with $3.4 billion remaining authorized for repurchase.
How Expedia Group, Inc. (EXPE) Makes Money
Revenue Streams
Expedia Group generates revenue through multiple streams, including lodging, air travel, advertising, and other services. As of September 30, 2024, the breakdown of revenue by service type is as follows:
| Service Type | Q3 2024 Revenue ($ millions) | Q3 2023 Revenue ($ millions) | % Change |
|---|---|---|---|
| Lodging | 3,317 | 3,233 | 3% |
| Air | 104 | 100 | 4% |
| Advertising and Media | 269 | 240 | 12% |
| Other | 370 | 356 | 4% |
| Total Revenue | 4,060 | 3,929 | 3% |
Lodging Revenue
Lodging remains the largest revenue source for Expedia Group, accounting for approximately 82% of total worldwide revenue in Q3 2024. Room nights booked rose by 9% in the first nine months of 2024, with an average daily rate (ADR) decrease of 2%. The total lodging revenue for the nine months ended September 30, 2024, was $8,407 million, up from $7,960 million in the same period of 2023, reflecting a 6% increase.
Air Travel Revenue
Air travel revenue for the three months ended September 30, 2024, was $104 million, a 4% increase compared to $100 million in Q3 2023. For the nine months ended September 30, 2024, air revenue totaled $330 million, up from $324 million in 2023, representing a 2% increase. Booked air tickets increased by 5% in the first nine months of 2024.
Advertising and Media Revenue
Advertising and media revenue saw significant growth, totaling $269 million for Q3 2024, up from $240 million in Q3 2023, marking a 12% increase. For the nine months ended September 30, 2024, this segment generated $713 million, compared to $616 million in the prior year, a 16% rise. The growth was primarily driven by Expedia Group Media Solutions, which generated $464 million in advertising revenue, a 35% increase year-over-year.
Cost Structure
The total cost of revenue for Q3 2024 was $388 million, down from $412 million in Q3 2023, representing a 6% decrease. The breakdown of costs for the three months ended September 30, 2024, is as follows:
| Cost Type | Q3 2024 Cost ($ millions) | Q3 2023 Cost ($ millions) | % Change |
|---|---|---|---|
| Direct Costs | 315 | 328 | (4%) |
| Personnel and Overhead | 73 | 84 | (13%) |
| Total Cost of Revenue | 388 | 412 | (6%) |
Operating Income
Operating income for Q3 2024 was $762 million, compared to $607 million in Q3 2023, reflecting a significant increase in profitability driven by revenue growth and cost management.
Net Income
Net income attributable to Expedia Group, Inc. for the three months ended September 30, 2024, was $684 million, compared to $305 million in the same period in 2023. For the nine months ended September 30, 2024, net income was $923 million, up from $552 million in 2023.
Cash Flow from Operations
Net cash provided by operating activities for the nine months ended September 30, 2024, was $2,887 million, slightly down from $2,928 million in 2023.
Market Position and Strategy
As of September 30, 2024, Expedia Group's global lodging marketplace includes over 3.5 million total lodging properties, with Vrbo accounting for over 2.5 million online bookable alternative accommodations. The company continues to focus on enhancing its marketing strategies, particularly through loyalty programs, to strengthen customer relationships.
Expedia Group's diversified revenue model, combined with its extensive global reach and strategic focus on technology and marketing, positions it favorably within the online travel industry.
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Resources:
- Expedia Group, Inc. (EXPE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Expedia Group, Inc. (EXPE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Expedia Group, Inc. (EXPE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.