Expedia Group, a leading online travel company, reported its fourth-quarter earnings on Thursday, exceeding analysts' expectations. The company announced adjusted earnings per share (EPS) of $1.72, surpassing the estimated $1.68. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $532 million, higher than the projected $524.5 million.
The company's revenue for the quarter totaled $2.887 billion, slightly beating estimates of $2.88 billion.
Shares of EXPE slipped 10% in reaction to the news. It move underscores the high expectations analysts had for the report. The stock has slipped below key support at the $145 area.
One notable highlight from Expedia Group's earnings report is the record-breaking full-year lodging gross bookings, which saw an 11% increase. Hotel gross bookings experienced exceptional growth, rising by 18% compared to the previous year. This indicates that Expedia Group has successfully captured a larger share of the hotel bookings market.
Both the full-year and fourth-quarter revenues were the highest ever recorded, with growth rates of 10% each compared to the same periods in 2022. Additionally, the fourth quarter exhibited accelerated year-over-year business-to-consumer (B2C) revenue growth, building upon the momentum of the previous quarter.
Expedia Group achieved record quarterly and full-year business-to-business (B2B) revenues, with increases of 28% and 33% respectively compared to 2022. This demonstrates the company's ability to cater to corporate clients and capitalize on the growing demand for B2B travel services.
In terms of profitability, Expedia Group achieved its highest-ever full-year GAAP net income growth, reaching an impressive 127% increase compared to the previous year. The record levels of adjusted EBITDA, which grew by 14% compared to 2022, highlight the company's solid financial performance and efficiency in managing costs.
Moreover, Expedia Group's focus on improving margins led to significant margin expansion, with over 130 basis points for the fourth quarter and nearly 75 basis points for the year compared to the previous year.
In addition to the earnings results, the company also announced a significant leadership change. Ariane Gorin was appointed as the CEO of Expedia Group, effective from May 13, 2024. Gorin, who has been with the company since 2013 and served as the President of Expedia for Business, has played a crucial role in delivering strong financial results, including a remarkable 33% growth in B2B revenue in 2023 compared to the previous year. This leadership transition, with Peter Kern continuing as Vice Chairman and a member of the Board of Directors, aims to ensure a smooth continuation of the company's growth strategy.