What caused EXPE's Q3 earnings to fall short of forecasts?

Expedia's Q3 earnings fell short of forecasts due to several factors: 1. **Hurricanes and Weather-Related Issues**: Hurricanes and other weather-related issues had an impact on Expedia's performance, contributing to the shortfall in earnings. For example, the effects of Hurricane Florence in 2018 affected the company's results, with hurricanes and other natural disasters impacting revenue and gross bookings. 2. **Trivago's Performance**: The Trivago hotel-search website, which is part of Expedia's portfolio, faced challenges that impacted its performance. Advertisers were dissuaded by changes to Trivago's pricing policy, and the site experienced a slow recovery after a period of heavy spending on advertising. These issues contributed to a decline in revenue and profitability for the company. 3. **Spending on Cloud Infrastructure and Marketing**: Expedia's decision to invest in cloud-based infrastructure and services, as well as increased marketing spending, led to higher costs that affected profit margins. This spending was necessary to support the company's digital transformation and maintain competitiveness, but it put pressure on short-term earnings. In summary, Expedia's Q3 earnings fell short of forecasts due to a combination of hurricanes and weather-related issues, challenges faced by Trivago, and increased spending on cloud infrastructure and marketing. These factors collectively impacted the company's financial performance for the period. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |EXPE|EXPE.O|Expedia|2024 Q1|2.857142857142857|-1.36E8|185| |EXPE|EXPE.O|Expedia|2024 Q2|-3.10077519379845|3.75E8|185| |EXPE|EXPE.O|Expedia|2024 Q3|124.26229508196722|6.84E8|185| |EXPE|EXPE.O|Expedia|2024 Q4|121.3235294117647|3.01E8|185|