Expedia Group reported strong results for Q3 2024, with booked room nights growing by 9% compared to the same quarter last year.
The company's total gross bookings reached US$27.5 billion (A$43.754 billion), a 7% increase year-on-year.
Revenue for the quarter was $4.1 billion, up 3% from the previous year, despite a 2-point negative impact from foreign exchange.
Expedia's operating income and net income attributable to the company saw significant increases, rising 26% and 61% respectively.
The company also announced a transition in its Chief Financial Officer (CFO) role, with Julie Whalen stepping down and a successor expected to be appointed before February 17, 2025.
Expedia raised its full-year guidance, reflecting confidence in its continued growth trajectory. The company's adjusted earnings per share (EPS) for the quarter were $6.13, a 13% increase from the previous year.
Expedia's B2B segment continued to perform strongly, with gross bookings up 19% year-over-year, and the company repurchased approximately 12.0 million shares for $1.6 billion year-to-date. CEO Ariane Gorin highlighted the acceleration in booking growth in the consumer business and strong double-digit growth in the advertising and B2B businesses.
“Our third-quarter results exceeded our expectations on gross bookings and earnings with revenue landing in-line. We accelerated bookings growth in our consumer business for the second consecutive quarter, and our advertising and B2B businesses continue to deliver strong double-digit growth," said Gorin.
Key Elements
- Strong Growth in Booked Room Nights and Gross Bookings: Indicates robust demand and effective marketing strategies.
- CFO Transition: Potential impact on financial strategy and operations.
- Raised Full-Year Guidance: Reflects confidence in future performance and growth prospects.
Implications for Expedia Moving Forward
Strong Q3 results and raised guidance suggest Expedia is well-positioned to grow. The transition to the CFO role may bring new financial strategies and efficiencies. The company's focus on both consumer and B2B segments, along with share repurchases, indicates a commitment to enhancing shareholder value and driving long-term growth.
At the time of writing, Expedia's stock price (NASDAQ: EXPE) was US$172.57, with a market capitalisation of approximately $22.03 billion.
