Expedia Group Reports Third Quarter 2026 Results
Exceeded guidance with 11% Gross Bookings and 12% revenue growth y/y
Grew GAAP Net Income 7% and Adjusted EBITDA 17% y/y
Expanded Adj. EBITDA margins y/y
Increases full year guidance
SEATTLE--(BUSINESS WIRE)--Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the third quarter ended September 30, 2026.
Third Quarter Highlights (All comparisons year-over-year)
- Booked Room Nights grew 7%.
- Total Gross Bookings grew 11%, while B2B Gross Bookings grew 19% and B2C Gross Bookings grew 7%.
- Lodging Gross Bookings grew 10%.
- Revenue grew 12%, driven by B2B, which grew 23%.
- GAAP net income increased 7% while Adjusted Net Income grew 19%. Adjusted EBITDA increased 17% with 135 basis points of margin expansion.
- Diluted GAAP earnings per share increased 15% while Adjusted EPS increased 24%.
- Repurchased approximately 2 million shares for $576 million in the third quarter.
- Paid quarterly dividend of $0.48 per share on September 17, 2026 and declared quarterly dividend of $0.48 per share on November 4, 2026.
“We exceeded the high end of our guidance in the quarter, reflecting resilient travel demand and strong execution,” said Ariane Gorin, CEO of Expedia Group. “We continue to deliver traveler value through more personalized and rewarding product experiences, improve supply across our marketplace, and advance our strategy to build the one-stop travel platform for B2B partners. AI is opening further opportunities across our business, enhancing internal productivity and creating new sources of growth. Our progress and the results we delivered demonstrate the differentiation of our platform and reinforce our confidence in our ability to deliver value for all our stakeholders.”
Financial Summary & Operating Metrics (In millions except per share amounts) | |||
| Expedia Group, Inc. | ||
Metric | Q3 2026 | Q3 2025 | Δ Y/Y |
Booked Room Nights | 115.7 | 108.2 | 7% |
Gross Bookings | $34,008 | $30,727 | 11% |
Revenue | $4,938 | $4,412 | 12% |
Operating income | $1,326 | $1,036 | 28% |
Net income attributable to Expedia Group, Inc. | $1,030 | $959 | 7% |
Diluted Earnings Per Share | $8.42 | $7.33 | 15% |
Adjusted EBITDA* | $1,689 | $1,449 | 17% |
Adjusted EPS* | $9.39 | $7.57 | 24% |
Net cash provided by (used in) operating activities | $(1,157) | $(497) | 133% |
Free Cash Flow* | $(1,399) | $(686) | 104% |
* A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this release. | |||
Business Outlook | |
| Metric | Q4 2026 |
Gross Bookings | $27.9 - $28.4B +3.3-5.2% |
Revenue | $3.69 - $3.75B +4.0-5.7% |
Adjusted EBITDA** | $830 - $880M |
Metric | Full Year 2026 | |
Previous Guidance | Current Guidance | |
Gross Bookings | $129.5 - $130.8B +8-9% | $131.4 - $131.9B +10% |
Revenue | $16.05 - $16.22B +9-10% | $16.37 - $16.43B +11-12% |
Adjusted EBITDA margin expansion** | +1.5 - 1.75pts | +1.8 - 2.0pts |
** A reconciliation for the Adjusted EBITDA and Adjusted EBITDA margin expansion forecast is not provided because we cannot, without unreasonable effort, predict certain items, including but not limited to, foreign exchange rate gains or losses and minority investment gains or losses, and are unable to address the probable significance of the unavailable information. | ||
Quarterly Dividend
Expedia Group’s Executive Committee, acting on behalf of its Board of Directors, has declared a quarterly cash dividend of $0.48 per share of outstanding common stock, payable on December 10, 2026 to stockholders of record as of the close of business on November 18, 2026.
Conference Call
Expedia Group will webcast a conference call to discuss third quarter 2026 financial results and certain forward-looking information on Wednesday, November 4, 2026 at 1:30 p.m. Pacific Time (PT). The webcast will be open to the public and available via ir.expediagroup.com. Expedia Group expects to maintain access to the webcast on the IR website for approximately twelve months subsequent to the initial broadcast. An earnings presentation containing financial and other statistical information supporting the prepared remarks on the call, together with reconciliations of the non-GAAP financial measures used, will be available on the "Investors" section of Expedia Group's website at ir.expediagroup.com beginning at approximately 1:00 p.m. PT on the same date and will remain available following the call.
About Expedia Group
Expedia Group, Inc. is the global travel marketplace with one purpose: to help travelers explore the world, one journey at a time. Expedia Group™ connects travelers, partners, and advertisers through its trusted brands, leading technology, and rich first-party data, delivering predictive, personalized experiences that shape the future of travel.
Expedia Group’s ecosystem includes three flagship consumer brands – Expedia®, Hotels.com®, and Vrbo® – the largest B2B travel business, and a premier advertising network. Guided by an experienced and passionate global team, Expedia Group helps millions of travelers in more than 70 countries explore the world with confidence and ease.
© 2026 Expedia, Inc., an Expedia Group company. All rights reserved. Expedia Group and the Expedia Group logo are trademarks of Expedia, Inc. CST: 2029030-50.
Expedia Group, Inc.
Trended Metrics
(All figures in millions, except ADR booked)
The metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition or methodology of any of our supplemental metrics are subject to change, and such changes could be material. We may also discontinue certain supplemental metrics as our business evolves over time. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information included in the financial statements filed with or furnished to the SEC.
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| 2025 |
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| 2026 |
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| Y/Y |
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| Q1 | Q2 | Q3 | Q4 |
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| Q1 | Q2 | Q3 |
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| Growth |
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Operating metrics |
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Booked Room Nights |
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| 107.7 | 105.5 | 108.2 | 94.0 |
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| 113.9 | 111.5 | 115.7 |
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| 7 % |
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Average Daily Rate ("ADR") Booked |
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| $213.9 | $209.3 | $209.8 | $207.0 |
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| $228.1 | $220.6 | $215.0 |
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| 2 % |
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Booked Air Tickets |
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| 14.8 | 15.0 | 14.4 | 12.8 |
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| 15.7 | 14.2 | 13.6 |
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| (6) % |
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Gross Bookings by business model |
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Agency |
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| $13,239 | $12,376 | $11,875 | $10,517 |
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| $14,357 | $13,317 | $12,355 |
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| 4% |
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Merchant |
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| 18,212 | 18,033 | 18,852 | 16,486 |
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| 21,173 | 20,611 | 21,653 |
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| 15% |
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Total |
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| $31,451 | $30,409 | $30,727 | $27,003 |
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| $35,530 | $33,928 | $34,008 |
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| 11% |
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Gross Bookings by product |
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Lodging |
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| $23,032 | $22,073 | $22,705 | $19,455 |
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| $25,977 | $24,603 | $24,875 |
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| 10% |
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Non-lodging |
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| 8,419 | 8,336 | 8,022 | 7,548 |
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| 9,553 | 9,325 | 9,133 |
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| 14% |
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Total |
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| $31,451 | $30,409 | $30,727 | $27,003 |
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| $35,530 | $33,928 | $34,008 |
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| 11% |
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Revenue by product |
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Lodging |
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| $2,289 | $3,040 | $3,604 | $2,819 |
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| $2,610 | $3,429 | $3,991 |
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| 11% |
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Air |
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| 107 | 105 | 101 | 94 |
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| 107 | 91 | 93 |
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| (7)% |
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Advertising & Media - EG(1) |
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| 174 | 182 | 194 | 208 |
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| 197 | 206 | 206 |
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| 7% |
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Advertising & Media - trivago(1) |
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| 85 | 98 | 137 | 97 |
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| 125 | 145 | 165 |
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| 20% |
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Other(2) |
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| 333 | 361 | 376 | 329 |
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| 387 | 444 | 483 |
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| 28% |
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Total |
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| $2,988 | $3,786 | $4,412 | $3,547 |
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| $3,426 | $4,315 | $4,938 |
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| 12% |
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Revenue by geography |
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U.S. points of sale |
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| $1,831 | $2,303 | $2,537 | $2,039 |
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| $1,990 | $2,570 | $2,845 |
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| 12% |
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Non-U.S. points of sale |
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| 1,157 | 1,483 | 1,875 | 1,508 |
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| 1,436 | 1,745 | 2,093 |
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| 12% |
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Total |
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| $2,988 | $3,786 | $4,412 | $3,547 |
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| $3,426 | $4,315 | $4,938 |
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| 12% |
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(1) Our Advertising & Media business consists of Expedia Group ("EG") Advertising, which is responsible for generating advertising revenue on our global online travel brands, and third-party revenue for trivago, a leading hotel metasearch site. | ||||||||||||||||||
(2) Other revenue primarily includes insurance, car rental, destination services and cruise revenue. | ||||||||||||||||||
Notes:
- All trivago revenue is classified as Non-U.S. point of sale. Some numbers may not add due to rounding.
- All percentages throughout this release are calculated on precise, unrounded numbers.
Expedia Group, Inc. Segment P&L (All figures in millions) | ||||||||||
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| y/y growth |
By Segment |
| Q1-25 | Q2-25 | Q3-25 | Q4-25 | Q1-26 | Q2-26 | Q3-26 |
| Q3-26 |
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Gross Bookings |
| $31,451 | $30,409 | $30,727 | $27,003 | $35,530 | $33,928 | $34,008 |
| 11% |
B2C |
| $22,615 | $21,565 | $21,343 | $18,344 | $24,784 | $23,186 | $22,862 |
| 7% |
B2B |
| $8,836 | $8,844 | $9,384 | $8,659 | $10,746 | $10,742 | $11,146 |
| 19% |
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Revenue |
| $2,988 | $3,786 | $4,412 | $3,547 | $3,426 | $4,315 | $4,938 |
| 12% |
B2C |
| $1,956 | $2,479 | $2,883 | $2,156 | $2,118 | $2,677 | $3,065 |
| 6% |
B2B |
| $947 | $1,209 | $1,392 | $1,294 | $1,183 | $1,493 | $1,708 |
| 23% |
Other (1) |
| $85 | $98 | $137 | $97 | $125 | $145 | $165 |
| 20% |
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Revenue margin (2) |
| 9.5% | 12.4% | 14.4% | 13.1% | 9.6% | 12.7% | 14.5% |
| 16 bps |
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Adjusted cost of revenue (3) |
| $354 | $373 | $373 | $342 | $373 | $399 | $415 |
| 11% |
% Revenue |
| 11.9% | 9.8% | 8.4% | 9.6% | 10.9% | 9.2% | 8.4% |
| (4) bps |
B2C |
| $312 | $340 | $347 | $307 | $324 | $346 | $377 |
| 9% |
% B2C revenue |
| 16.0% | 13.7% | 12.0% | 14.2% | 15.3% | 12.9% | 12.3% |
| 25 bps |
B2B |
| $38 | $28 | $18 | $27 | $39 | $39 | $25 |
| 36% |
% B2B revenue |
| 4.0% | 2.3% | 1.3% | 2.0% | 3.3% | 2.6% | 1.5% |
| 15 bps |
Other (1) |
| $4 | $5 | $8 | $8 | $10 | $14 | $13 |
| 87% |
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Selling and marketing - direct |
| $1,757 | $1,920 | $1,976 | $1,696 | $1,856 | $2,119 | $2,184 |
| 10% |
% Gross Bookings |
| 5.6% | 6.3% | 6.4% | 6.3% | 5.2% | 6.2% | 6.4% |
| (1) bps |
B2C |
| $1,115 | $1,092 | $1,032 | $847 | $1,035 | $1,101 | $1,028 |
| —% |
% B2C Gross Bookings |
| 4.9% | 5.1% | 4.8% | 4.6% | 4.2% | 4.7% | 4.5% |
| (34) bps |
B2B |
| $577 | $752 | $855 | $798 | $726 | $915 | $1,048 |
| 23% |
Other (1) |
| $65 | $76 | $89 | $51 | $95 | $103 | $108 |
| 21% |
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Other segment items (4) |
| $581 | $585 | $614 | $661 | $655 | $678 | $650 |
| 6% |
% Revenue |
| 19.4% | 15.5% | 13.9% | 18.6% | 19.1% | 15.7% | 13.2% |
| (74) bps |
B2C |
| $312 | $319 | $330 | $323 | $333 | $341 | $329 |
| —% |
% B2C revenue |
| 16.0% | 12.8% | 11.4% | 15.0% | 15.7% | 12.8% | 10.7% |
| (69) bps |
B2B |
| $116 | $98 | $117 | $161 | $149 | $170 | $165 |
| 41% |
% B2B revenue |
| 12.3% | 8.2% | 8.4% | 12.4% | 12.6% | 11.4% | 9.6% |
| 126 bps |
Other (1) |
| $153 | $168 | $167 | $177 | $173 | $167 | $156 |
| (7)% |
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Adjusted EBITDA (3) |
| $296 | $908 | $1,449 | $848 | $542 | $1,119 | $1,689 |
| 17% |
% Margin |
| 9.9% | 24.0% | 32.9% | 23.9% | 15.8% | 25.9% | 34.2% |
| 135 bps |
B2C |
| $217 | $728 | $1,174 | $679 | $426 | $889 | $1,331 |
| 13% |
% Margin |
| 11.1% | 29.4% | 40.7% | 31.5% | 20.1% | 33.2% | 43.5% |
| 273 bps |
B2B |
| $216 | $331 | $402 | $308 | $269 | $369 | $470 |
| 17% |
% Margin |
| 22.8% | 27.3% | 28.9% | 23.9% | 22.7% | 24.8% | 27.5% |
| (134) bps |
Other (1) |
| $(137) | $(151) | $(127) | $(139) | $(153) | $(139) | $(112) |
| (11)% |
(1) Other is comprised of trivago, corporate and intercompany eliminations. | ||||||||||
(2) Revenue margin is defined as revenue as a percentage of Gross Bookings. | ||||||||||
(3) See the sections below titled “Non-GAAP Measures” and "Tabular Reconciliations for Non-GAAP Measures” for additional information, including reconciliations to the most directly comparable GAAP measures. | ||||||||||
(4) Other segment items include total adjusted overhead expenses (see section below titled “Tabular Reconciliations for Non-GAAP Measures – Adjusted Expenses”), as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue for our B2C and B2B segments. | ||||||||||
Notes: Some numbers may not add due to rounding. All percentages throughout this release are calculated on precise, unrounded numbers. | ||||||||||
EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data) (Unaudited) | |||||||||||||||
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Three months ended
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Nine months ended
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| 2026 |
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| 2025 |
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| 2026 |
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| 2025 |
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| ||||||||
Revenue | $ | 4,938 |
|
| $ | 4,412 |
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| $ | 12,679 |
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| $ | 11,186 |
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Costs and expenses: |
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| ||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1) |
| 419 |
|
|
| 376 |
|
|
| 1,199 |
|
|
| 1,110 |
|
Selling and marketing - direct |
| 2,184 |
|
|
| 1,976 |
|
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| 6,159 |
|
|
| 5,653 |
|
Selling and marketing - indirect (1) |
| 209 |
|
|
| 211 |
|
|
| 628 |
|
|
| 623 |
|
Technology and content (1) |
| 334 |
|
|
| 310 |
|
|
| 983 |
|
|
| 955 |
|
General and administrative (1) |
| 194 |
|
|
| 186 |
|
|
| 594 |
|
|
| 563 |
|
Depreciation and amortization |
| 224 |
|
|
| 225 |
|
|
| 680 |
|
|
| 667 |
|
Legal reserves, occupancy tax and other |
| 13 |
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|
| 86 |
|
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| (45 | ) |
|
| 88 |
|
Restructuring and related reorganization charges (1) |
| 35 |
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| 6 |
|
|
| 104 |
|
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| 76 |
|
Operating income |
| 1,326 |
|
|
| 1,036 |
|
|
| 2,377 |
|
|
| 1,451 |
|
Other income (expense): |
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| ||||||||
Interest income |
| 73 |
|
|
| 69 |
|
|
| 206 |
|
|
| 197 |
|
Interest expense |
| (63 | ) |
|
| (62 | ) |
|
| (235 | ) |
|
| (178 | ) |
Other, net |
| (33 | ) |
|
| 88 |
|
|
| 7 |
|
|
| (133 | ) |
Total other income (expense), net |
| (23 | ) |
|
| 95 |
|
|
| (22 | ) |
|
| (114 | ) |
Income before income taxes |
| 1,303 |
|
|
| 1,131 |
|
|
| 2,355 |
|
|
| 1,337 |
|
Provision for income taxes |
| (264 | ) |
|
| (167 | ) |
|
| (453 | ) |
|
| (248 | ) |
Net income |
| 1,039 |
|
|
| 964 |
|
|
| 1,902 |
|
|
| 1,089 |
|
Net income attributable to non-controlling interests |
| (9 | ) |
|
| (5 | ) |
|
| — |
|
|
| — |
|
Net income attributable to Expedia Group, Inc. | $ | 1,030 |
|
| $ | 959 |
|
| $ | 1,902 |
|
| $ | 1,089 |
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Earnings per share attributable to Expedia Group, Inc. available to common stockholders: |
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| ||||||||
Basic | $ | 8.59 |
|
| $ | 7.76 |
|
| $ | 15.77 |
|
| $ | 8.63 |
|
Diluted |
| 8.42 |
|
|
| 7.33 |
|
|
| 15.43 |
|
|
| 8.18 |
|
Shares used in computing earnings per share (000's): |
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| ||||||||
Basic |
| 119,867 |
|
|
| 123,699 |
|
|
| 120,632 |
|
|
| 126,246 |
|
Diluted |
| 122,280 |
|
|
| 131,014 |
|
|
| 123,260 |
|
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| 133,188 |
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| ||||||||
(1) Includes stock-based compensation as follows: |
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| ||||||||
Cost of revenue | $ | 4 |
|
| $ | 3 |
|
| $ | 12 |
|
| $ | 10 |
|
Selling and marketing |
| 23 |
|
|
| 20 |
|
|
| 65 |
|
|
| 63 |
|
Technology and content |
| 41 |
|
|
| 34 |
|
|
| 119 |
|
|
| 111 |
|
General and administrative |
| 46 |
|
|
| 33 |
|
|
| 129 |
|
|
| 106 |
|
Restructuring and related reorganization charges |
| 6 |
|
|
| — |
|
|
| 12 |
|
|
| 3 |
|
EXPEDIA GROUP, INC. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) | ||||||||
|
September 30, |
|
December 31,
|
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| (Unaudited) |
|
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ASSETS | ||||||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents | $ | 5,040 |
|
| $ | 5,413 |
|
|
Restricted cash and cash equivalents |
| 1,543 |
|
|
| 1,563 |
|
|
Short-term investments |
| 527 |
|
|
| 320 |
|
|
Accounts receivable, net of allowance of $105 and $74 |
| 5,513 |
|
|
| 4,166 |
|
|
Income taxes receivable |
| 52 |
|
|
| 38 |
|
|
Prepaid expenses and other current assets |
| 1,516 |
|
|
| 699 |
|
|
Total current assets |
| 14,191 |
|
|
| 12,199 |
|
|
Property and equipment, net |
| 2,459 |
|
|
| 2,447 |
|
|
Operating lease right-of-use assets |
| 278 |
|
|
| 296 |
|
|
Long-term investments and other assets |
| 1,192 |
|
|
| 1,387 |
|
|
Deferred income taxes |
| 277 |
|
|
| 432 |
|
|
Intangible assets, net |
| 1,112 |
|
|
| 819 |
|
|
Goodwill |
| 7,342 |
|
|
| 6,872 |
|
|
TOTAL ASSETS | $ | 26,851 |
|
| $ | 24,452 |
|
|
|
|
|
|
| ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: |
|
|
|
| ||||
Accounts payable, merchant | $ | 2,466 |
|
| $ | 2,188 |
|
|
Accounts payable, other |
| 1,245 |
|
|
| 1,103 |
|
|
Deferred merchant bookings |
| 12,579 |
|
|
| 10,428 |
|
|
Deferred revenue |
| 166 |
|
|
| 163 |
|
|
Income taxes payable |
| 120 |
|
|
| 56 |
|
|
Accrued expenses and other current liabilities |
| 1,042 |
|
|
| 1,027 |
|
|
Current maturities of long-term debt |
| 749 |
|
|
| 1,692 |
|
|
Total current liabilities |
| 18,367 |
|
|
| 16,657 |
|
|
Long-term debt, excluding current maturities |
| 4,711 |
|
|
| 4,469 |
|
|
Deferred income taxes |
| 48 |
|
|
| 20 |
|
|
Operating lease liabilities |
| 226 |
|
|
| 254 |
|
|
Other long-term liabilities |
| 583 |
|
|
| 505 |
|
|
Commitments and contingencies |
|
|
|
| ||||
Stockholders’ equity: |
|
|
|
| ||||
Common stock: $.0001 par value; Authorized shares: 1,600,000 |
| — |
|
|
| — |
|
|
Shares issued: 294,719 and 291,448; Shares outstanding: 113,122 and 116,975 |
|
|
|
| ||||
Class B common stock: $.0001 par value; Authorized shares: 400,000 |
| — |
|
|
| — |
|
|
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523 |
|
|
|
| ||||
Additional paid-in capital |
| 16,956 |
|
|
| 16,565 |
|
|
Treasury stock - Common stock and Class B, at cost; Shares 188,874 and 181,749 |
| (18,511 | ) |
|
| (16,786 | ) |
|
Retained earnings |
| 3,425 |
|
|
| 1,696 |
|
|
Accumulated other comprehensive income (loss) |
| (218 | ) |
|
| (191 | ) |
|
Total Expedia Group, Inc. stockholders’ equity |
| 1,652 |
|
|
| 1,284 |
|
|
Non-redeemable non-controlling interests |
| 1,264 |
|
|
| 1,263 |
|
|
Total stockholders’ equity |
| 2,916 |
|
|
| 2,547 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 26,851 |
|
| $ | 24,452 |
|
|
|
|
|
|
| ||||
EXPEDIA GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | ||||||||
|
Nine months ended
| |||||||
|
| 2026 |
|
|
| 2025 |
| |
Operating activities: |
|
|
| |||||
Net income | $ | 1,902 |
|
| $ | 1,089 |
| |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| |||||
Depreciation of property and equipment, including internal-use software and website development |
| 654 |
|
|
| 635 |
| |
Amortization of intangible assets |
| 26 |
|
|
| 32 |
| |
Amortization of stock-based compensation |
| 337 |
|
|
| 293 |
| |
Deferred income taxes |
| 160 |
|
|
| 102 |
| |
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net |
| 36 |
|
|
| (118 | ) | |
Realized (gain) loss on foreign currency forwards, net |
| 178 |
|
|
| (163 | ) | |
(Gain) loss on minority equity investments, net |
| (134 | ) |
|
| 125 |
| |
Other, net |
| 44 |
|
|
| 36 |
| |
Changes in operating assets and liabilities, net of effects from acquisitions: |
|
|
| |||||
Accounts receivable |
| (1,269 | ) |
|
| (1,289 | ) | |
Prepaid expenses and other assets |
| (171 | ) |
|
| (28 | ) | |
Accounts payable, merchant |
| 113 |
|
|
| 50 |
| |
Accounts payable, other, accrued expenses and other liabilities |
| 207 |
|
|
| 234 |
| |
Tax payable/receivable, net |
| 93 |
|
|
| 9 |
| |
Deferred merchant bookings |
| 2,076 |
|
|
| 2,569 |
| |
Net cash provided by operating activities |
| 4,252 |
|
|
| 3,576 |
| |
Investing activities: |
|
|
| |||||
Capital expenditures, including internal-use software and website development |
| (625 | ) |
|
| (585 | ) | |
Purchases of investments |
| (930 | ) |
|
| (518 | ) | |
Sales and maturities of investments |
| 438 |
|
|
| 616 |
| |
Proceeds from exchange of cross-currency interest rate swaps |
| 692 |
|
|
| — |
| |
Payments for exchange of cross-currency interest rate swaps |
| (692 | ) |
|
| — |
| |
Acquisitions and other, net |
| (727 | ) |
|
| 155 |
| |
Net cash used in investing activities |
| (1,844 | ) |
|
| (332 | ) | |
Financing activities: |
|
|
| |||||
Proceeds from issuance of long-term debt, net of issuance costs |
| 986 |
|
|
| 985 |
| |
Payments related to long-term debt |
| (1,828 | ) |
|
| (1,044 | ) | |
Purchases of treasury stock |
| (1,727 | ) |
|
| (1,603 | ) | |
Payment of dividends to stockholders |
| (173 | ) |
|
| (151 | ) | |
Proceeds from exercise of equity awards and employee stock purchase plan |
| 47 |
|
|
| 50 |
| |
Other, net |
| (67 | ) |
|
| 16 |
| |
Net cash used in financing activities |
| (2,762 | ) |
|
| (1,747 | ) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents |
| (39 | ) |
|
| 191 |
| |
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents |
| (393 | ) |
|
| 1,688 |
| |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period |
| 6,976 |
|
|
| 5,574 |
| |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ | 6,583 |
|
| $ | 7,262 |
| |
Notes & Definitions:
Booked Room Nights: Represents booked hotel room nights and property nights. Booked hotel room nights include both merchant and agency hotel room nights. Property nights are related to our alternative accommodation business.
Average Daily Rate (ADR) Booked: Represents the average paid rate per booked room night, calculated as total lodging gross bookings divided by booked room nights.
Booked Air Tickets: Includes both merchant and agency air bookings.
Gross Bookings: Generally represent the total retail value of transactions booked, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, adjusted for cancellations and refunds.
Lodging Metrics: Reported on a booked basis except for revenue, which is on a stayed basis. Lodging consists of both merchant and agency model hotel and alternative accommodations.
B2C: The B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, Hotwire.com, and CarRentals.com.
B2B: The B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers.
trivago: The trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.
Non-GAAP Measures
Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP technology and content and non-GAAP general and administrative), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items related to transactional tax matters, which may ultimately be settled in cash. We urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis and Legal Proceedings sections, as well as the notes to the financial statements, included in the Company's annual and quarterly reports filed with the Securities and Exchange Commission. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) is defined as net income (loss) attributable to Expedia Group adjusted for:
(1) net income (loss) attributable to non-controlling interests;
(2) provision for income taxes;
(3) total other expenses, net;
(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;
(5) acquisition-related impacts, including
(i) amortization of intangible assets and goodwill and intangible asset impairment,
(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;
(iii) upfront consideration paid to settle employee compensation plans of the acquiree; and
(iv) related transaction fees;
(6) certain other items, including restructuring;
(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings;
(8) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period; and
(9) depreciation.
The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful.
Contacts
Investor Relations
ir@expediagroup.com
Communications
press@expediagroup.com
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