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Jun 30, 2020
Expedia Q2 2020 Earnings Report
Expedia Group's Q2 results reflected the severe impact of COVID-19 on the travel industry, but the company saw consistent growth after April with Vrbo leading the recovery.
Key Takeaways
Expedia Group reported a challenging second quarter due to the impact of COVID-19. The company saw consistent growth after April, with Vrbo leading the recovery. They focused on cost efficiency and internal improvements, exceeding their initial cost savings target. July trends plateaued, and the company expects a bumpy recovery.
Expedia saw consistent growth after April, with May and June considerably better than the trough.
Vrbo led the recovery due to interest in the whole home model.
The company is focused on internal functioning, structure, speed, and agility, and building for the future.
Expedia is driving efficiency programs and expects to exceed $500 million in cost savings.
Expedia
Expedia
Expedia Revenue by Segment
Revenue by Segment
B2C Revenue
CapyFin.comB2B Revenue
CapyFin.com Forward Guidance
Expedia Group is focused on what they can control internally and expect the recovery to be bumpy.
Positive Outlook
- Consumers have a strong desire for travel and will find a way when they get comfort to do so.
- Expedia feels like they are in a great position to participate as travel recovers.
- The company is rapidly continuing down the path of reshaping how they do business.
- Expedia is on track to come out of this disruption a stronger, more nimble company with better margins.
- The company is in position to deliver attractive growth for the long term.
Challenges Ahead
- There's still a lot of uncertainty about the virus.
- Expedia expects the recovery will have ups and downs along the way.
- The recovery will look different in different geographies depending on the ability to control the virus.
- Recovery depends on travel restrictions.
- Recovery depends on consumers' general comfort with travelling.
Revenue & Expenses
Visualization of income flow from segment revenue to net income