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Dec 31, 2019

Expedia Q4 2019 Earnings Report

Expedia Group's Q4 2019 earnings were released, revealing an 8% increase in revenue and a 65% increase in operating income.

Key Takeaways

Expedia Group reported an increase in revenue and operating income for Q4 2019. Total revenue increased by 7% and operating income increased by 65% for Expedia Group, Inc. Net income attributable to Expedia Group increased 349%.

Total stayed lodging room nights increased 11%.

Operating income increased 65%.

Revenue increased 7%.

Net income attributable to Expedia Group increased 349%.

Total Revenue
$2.75B
Previous year: $2.56B
+7.3%
EPS
$1.24
Previous year: $1.24
+0.0%
Gross Bookings
$23.2B
Previous year: $22B
+5.9%
Room nights
91.6M
Previous year: 82.8M
+10.6%
Adjusted EBITDA
$478M
Previous year: $471M
+1.5%
Gross Profit
$2.19B
Previous year: $2.08B
+5.0%
Cash and Equivalents
$3.32B
Previous year: $2.44B
+35.7%
Free Cash Flow
$45M
Previous year: -$389M
-111.6%
Total Assets
$21.4B
Previous year: $18B
+18.8%

Expedia

Expedia

Expedia Revenue by Segment

Expedia Revenue by Geographic Location

Forward Guidance

Expedia Group expects 2020 Adjusted EBITDA growth to be in the double-digits.

Positive Outlook

  • Targeting $300-500 million of run-rate cost savings across our business.
  • Rapidly moved to simplify how we operate and increase efficiency.
  • Focusing the company on core operations.
  • Changes helped exceed the high-end of revised guidance range in 2019.
  • Changes will contribute to accelerated profit growth in underlying business in 2020.

Challenges Ahead

  • Uncertainty on how much cost savings we’ll recognize this year.
  • Uncertainty on the full effect of Coronavirus.
  • Not providing a specific guidance range.
  • trivago Adjusted EBITDA grew 447% in 2019, which we believe to be a non-meaningful growth rate.
  • 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 and subsequent filings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income