Expedia beat estimates on revenue and earnings per share driven by strong business-to-business bookings growth, with shares surging by more than 15%.
Revenue grew by 9% year-over-year to US$4.41 billion, above Zacks estimates of $4.3 billion. Adjusted earnings per share were $7.57, up from $6.13 and passing estimates of $7.21.
“Our strong third quarter results exceeded both our top and bottom-line expectations, reflecting an improved demand environment, disciplined execution and tangible progress on our strategic priorities,” said Expedia CEO Ariane Gorin.
“Notably, we grew room nights in the U.S. at the fastest pace in over three years, delivered our 17th consecutive quarter of double-digit growth in B2B—up 26%—and grew consumer bookings by 7%. We’re confident that our strategy and the reinforcing power of our two-sided marketplace will continue to drive greater value for both travelers and partners, and growth for our business.”
Booked room nights increased by 11% to 108.2 million, with gross bookings up 12% to $30.73 billion. The company credited this to the fastest United States booked room nights growth in three years.
Business-to-consumer gross bookings rose by 7% to $21.23 billion, and business-to-business gross bookings grew by 26% to $9.38 billion.
Expedia’s full-year guidance now projects 7% gross bookings growth, and 3-5% revenue growth. Prior guidance expected 3-5% growth in each of gross bookings and revenue.
Lodging revenue increased 9% to $3.60 billion. Air revenue dropped 4% to $101 million.
Operating income climbed 36% to $1.04 billion.
Expedia’s (NASDAQ: EXPE) share price jumped 14.7% to $252.80 in after-hours trading, following a close at $219.70. Its market capitalisation is $27.18 billion.
