Expedia Group, Inc. (NASDAQ: EXPE) announced financial results
today for the fourth quarter and full year ended December 31,
2022.
Key Highlights
- Record full year and fourth quarter lodging bookings and
lodging revenue.
- Significant earnings growth with full year GAAP net income of
$352 million, compared to a net loss of $269 million in 2021. Full
year adjusted net income up over 300% versus 2021 and record
Adjusted EBITDA of over $2.3 billion.
- Full year free cash flow grew to $2.8 billion, over 70% higher
than 2019.
- Reduced debt by $2.2 billion during 2022, resulting in a
significant reduction in leverage.
- Repurchased 5.2 million shares for approximately $500 million
for the year and approximately $350 million in shares in the fourth
quarter 2022.
“We were pleased that we were able to deliver our most
profitable year in 2022, despite the friction from transforming our
business model and technology platform. While our Q4 results were
negatively impacted by severe weather, demand was otherwise strong
and accelerating, and has been markedly stronger since the start of
the year,” said Peter Kern, Vice Chairman and CEO, Expedia Group.
"We begin ‘23 with record app usage and member counts, led by
Expedia US, the first of our brands to deploy new capabilities and
marketing strategies. This year, we are excited to see these
benefits accrue to more of our brands and geographies, driving
further growth and margin expansion."
Financial Summary &
Operating Metrics (In millions, except per share amounts) - Fourth
Quarter 2022
Expedia Group, Inc.
Metric
Q4 2022
Q4 2021
Δ Y/Y
Booked room nights
70.8
59.7
19%
Stayed room nights
74.6
62.9
19%
Gross bookings
$20,511
$17,463
17%
Revenue
$2,618
$2,279
15%
Operating income
$128
$163
(21)%
Net income attributable to Expedia Group
common stockholders
$177
$276
(36)%
Diluted earnings per share
$1.11
$1.70
(35)%
Adjusted EBITDA(1)
$449
$479
(6)%
Adjusted net income(1)
$196
$167
17%
Adjusted EPS(1)
$1.26
$1.06
19%
Net cash provided by (used in) operating
activities
$(182)
$285
NM
Free cash flow(1)
$(359)
$142
NM
(1) See Definitions of Non-GAAP Measures
and reconciliations of GAAP to non-GAAP measures beginning on page
13.
Financial Summary &
Operating Metrics (In millions, except per share amounts) - Full
Year 2022
Expedia Group, Inc.
Metric
2022
2021
Δ Y/Y
Booked room nights
312.0
247.5
26%
Stayed room nights
303.4
234.4
29%
Gross bookings
$95,049
$72,425
31%
Revenue
$11,667
$8,598
36%
Operating income
$1,085
$186
484%
Net income (loss) attributable to Expedia
Group common stockholders
$352
$(269)
NM
Diluted earnings (loss) per share
$2.17
$(1.80)
NM
Adjusted EBITDA(1)
$2,349
$1,477
59%
Adjusted net income(1)
$1,072
$257
316%
Adjusted EPS(1)
$6.79
$1.65
312%
Net cash provided by operating
activities
$3,440
$3,748
(8)%
Free cash flow(1)
$2,778
$3,075
(10)%
(1)See Definitions of Non-GAAP Measures
and reconciliations of GAAP to non-GAAP measures beginning on page
13.
Discussion of Results
The results for Expedia Group, Inc. ("Expedia Group" or "the
Company") include Brand Expedia®, Hotels.com®, Expedia® Partner
Solutions, Vrbo®, trivago®, HomeAway®, Orbitz®, Travelocity®,
Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia Group™ Media
Solutions, CarRentals.com™ and Expedia® Cruises™. Results include
the related international points of sale for all brands. In April
2021, we completed the sale of Classic Vacations®, and in November
2021 we completed the sale of Egencia®, which are included in
results through the date of their respective sales. All amounts
shown are in U.S. dollars.
Gross Bookings & Revenue
Gross Bookings & Revenue
by Segment ($ millions)
Gross Bookings
Fourth Quarter
Full Year
2022
2021
Δ%
2022
2021
Δ%
Gross Bookings
$
20,511
$
17,463
17
%
$
95,049
$
72,425
31
%
Revenue
Fourth Quarter
Full Year
2022
2021
Δ%
2022
2021
Δ%
Retail
$
1,874
$
1,730
8
%
$
8,741
$
6,821
28
%
B2B
676
481
41
%
2,546
1,460
74
%
Expedia Group (excluding trivago)
$
2,550
$
2,211
15
%
$
11,287
$
8,281
36
%
trivago
106
99
7
%
561
423
33
%
Intercompany eliminations
(38
)
(31
)
24
%
(181
)
(106
)
71
%
Total
$
2,618
$
2,279
15
%
$
11,667
$
8,598
36
%
For the fourth quarter of 2022, total gross bookings increased
17%, compared to the fourth quarter of 2021, as gross bookings for
lodging and air grew. Total revenue increased 15%, compared to the
fourth quarter of 2021, driven by growth across the company.
Product & Services Detail
Revenue by Service Type ($
millions)
Fourth Quarter
Full Year
2022
2021
Δ%
2022
2021
Δ%
Lodging
$
2,014
$
1,713
18
%
$
8,905
$
6,449
38
%
Air
93
65
44
%
362
254
43
%
Advertising and media
176
152
15
%
777
603
29
%
Other
335
349
(4
)%
1,623
1,292
25
%
Total
$
2,618
$
2,279
15
%
$
11,667
$
8,598
36
%
As a percentage of total revenue in the fourth quarter of 2022,
lodging accounted for 77%, advertising and media accounted for 7%,
air accounted for 4%, and all other revenues accounted for the
remaining 12%.
Lodging revenue increased 18% in the fourth quarter of 2022,
compared to the fourth quarter of 2021, driven by a significant
increase of 19% in room nights stayed and average daily rate
("ADR") growth of 3%.
Air revenue increased 44% in the fourth quarter of 2022,
compared to the fourth quarter of 2021, driven by an increase of
47% in revenue per ticket.
Advertising and media revenue increased 15% in the fourth
quarter of 2022, compared to the fourth quarter of 2021, due to
growth in Expedia Group Media Solutions.
Other revenue decreased in the fourth quarter of 2022, compared
to the fourth quarter of 2021, due to declines in car revenue.
Costs and Expenses ($ millions)
Costs and Expenses
As a % of Revenue
Fourth Quarter
Fourth Quarter
2022
2021
Δ%
2022
2021
Δ (bps)
Generally Accepted Accounting
Principles (GAAP) Expenses - Expedia Group
Cost of revenue
$
412
$
395
4
%
15.7
%
17.3
%
(158
)
Selling and marketing - direct
1,199
878
37
%
45.8
%
38.5
%
726
Selling and marketing - indirect
177
166
6
%
6.8
%
7.3
%
(53
)
Selling and marketing
1,376
1,044
32
%
52.6
%
45.8
%
673
Technology and content
317
274
16
%
12.1
%
12.0
%
11
General and administrative
186
183
1
%
7.1
%
8.0
%
(96
)
Total GAAP costs and expenses
$
2,291
$
1,896
21
%
87.5
%
83.2
%
429
Adjusted Expenses - Expedia
Group
Cost of revenue*
$
408
$
390
5
%
15.6
%
17.1
%
(154
)
Selling and marketing - direct
1,199
878
37
%
45.8
%
38.5
%
726
Selling and marketing - indirect*
160
148
8
%
6.1
%
6.5
%
(39
)
Selling and marketing*
1,359
1,026
32
%
51.9
%
45.0
%
687
Technology and content*
288
248
17
%
11.0
%
10.8
%
17
General and administrative*
142
133
6
%
5.4
%
5.9
%
(45
)
Total adjusted costs and expenses
$
2,197
$
1,797
22
%
83.9
%
78.9
%
504
Total overhead expenses**
590
529
12
%
22.5
%
23.2
%
(68
)
Adjusted Expenses - Expedia Group
(excluding trivago)***
Cost of revenue*
$
404
$
387
5
%
15.8
%
17.5
%
(164
)
Selling and marketing*
1,335
1,001
33
%
52.3
%
45.3
%
706
Technology and content*
277
236
18
%
10.9
%
10.6
%
24
General and administrative*
135
125
7
%
5.3
%
5.7
%
(43
)
Total adjusted costs and expenses
excluding trivago
$
2,151
$
1,749
23
%
84.3
%
79.1
%
524
Note: Some numbers may not add due to
rounding.
*Adjusted expenses are non-GAAP measures. See pages 13-20 herein
for a description and reconciliation to the corresponding GAAP
measures.
**Total overhead expenses is the sum of
adjusted expenses for Selling and marketing - indirect, Technology
and content, and General and administrative.
***Expedia Group (excluding trivago)
figures exclude both trivago costs and expenses and trivago revenue
when calculating 'As a % of Revenue.'
Cost of Revenue
- For the fourth quarter of 2022, total GAAP and adjusted cost of
revenue increased 4% and 5% respectively, primarily due to an
increase in merchant fees as well as cloud costs.
Selling and Marketing
- For the fourth quarter of 2022, total GAAP and adjusted selling
and marketing expense both increased 32% primarily driven by a $321
million increase in direct costs primarily due to an increase in
B2B partner commissions and increased spend in Retail marketing
channels. Total GAAP and adjusted indirect marketing expenses
increased 6% and 8%, respectively.
Technology and Content
- For the fourth quarter of 2022, total GAAP and adjusted
technology and content expense increased 16% and 17%, respectively,
primarily due to an increase in personnel and related costs as a
result of the increase in headcount.
General and Administrative
- For the fourth quarter of 2022, total GAAP and adjusted general
and administrative expense increased 1% and 6%, respectively. The
increase in the adjusted figure was driven primarily by an increase
in personnel costs related to increase in headcount while the GAAP
figure was tempered by a reduction in stock-based
compensation.
Costs and Expenses
As a % of Revenue
Full Year
Full Year
2022
2021
Δ%
2022
2021
Δ (bps)
Generally Accepted Accounting
Principles (GAAP) Expenses - Expedia Group
Cost of revenue
$
1,657
$
1,522
9
%
14.2
%
17.7
%
(349
)
Selling and marketing - direct
5,428
3,499
55
%
46.5
%
40.7
%
583
Selling and marketing - indirect
672
722
(7
)%
5.8
%
8.4
%
(264
)
Selling and marketing
6,100
4,221
45
%
52.3
%
49.1
%
319
Technology and content
1,181
1,074
10
%
10.1
%
12.5
%
(237
)
General and administrative
748
705
6
%
6.4
%
8.2
%
(180
)
Total GAAP costs and expenses
$
9,686
$
7,522
29
%
83.0
%
87.5
%
(447
)
Adjusted Expenses - Expedia
Group
Cost of revenue*
$
1,643
$
1,500
10
%
14.1
%
17.4
%
(336
)
Selling and marketing - direct
5,428
3,499
55
%
46.5
%
40.7
%
583
Selling and marketing - indirect*
605
626
(3
)%
5.2
%
7.3
%
(209
)
Selling and marketing*
6,033
4,125
46
%
51.7
%
48.0
%
374
Technology and content*
1,070
957
12
%
9.2
%
11.1
%
(195
)
General and administrative*
566
522
8
%
4.8
%
6.1
%
(124
)
Total adjusted costs and expenses
$
9,312
$
7,104
31
%
79.8
%
82.6
%
(282
)
Total overhead expenses**
2,241
2,105
6
%
19.2
%
24.5
%
(529
)
Adjusted Expenses - Expedia Group
(excluding trivago)***
Cost of revenue*
$
1,626
$
1,484
10
%
14.4
%
17.9
%
(350
)
Selling and marketing*
5,861
3,942
49
%
51.9
%
47.6
%
433
Technology and content*
1,023
908
13
%
9.1
%
11.0
%
(190
)
General and administrative*
536
493
8
%
4.7
%
6.0
%
(123
)
Total adjusted costs and expenses
excluding trivago
$
9,046
$
6,827
33
%
80.1
%
82.4
%
(230
)
*Adjusted expenses are non-GAAP measures.
See pages 13-20 herein for a description and reconciliation to the
corresponding GAAP measures.
**Total overhead expenses is the sum of
adjusted expenses for Selling and marketing - indirect, Technology
and content, and General and administrative.
***Expedia Group (excluding trivago)
figures exclude both trivago costs and expenses and trivago revenue
when calculating 'As a % of Revenue.'
Net Income (Loss) Attributable to Expedia Group and Adjusted
EBITDA*
Adjusted EBITDA by Segment ($
millions)
Fourth Quarter
Full Year
2022
2021
Δ%
2022
2021
Δ%
Retail
$
411
$
481
(15
)%
$
2,124
$
1,782
19
%
B2B
142
97
47
%
599
110
445
%
Unallocated overhead costs
(125
)
(119
)
5
%
(487
)
(454
)
7
%
Expedia Group (excluding trivago)
$
428
$
459
(7
)%
$
2,236
$
1,438
55
%
trivago(1)
21
20
11
%
113
39
191
%
Total Adjusted EBITDA
$
449
$
479
(6
)%
$
2,349
$
1,477
59
%
Net income (loss) attributable to Expedia
Group common stockholders(2)
$
177
$
276
(36
)%
$
352
$
(269
)
NM
(1) trivago is a separately listed company
on the Nasdaq Global Select Market and, therefore, is subject to
its own reporting and filing requirements which could result in
possible differences that are not expected to be material to
Expedia Group.
(2) Expedia Group does not calculate or
report net income (loss) by segment.
* Adjusted EBITDA is a non-GAAP measure.
See pages 13-20 herein for a description and reconciliation to the
corresponding GAAP measures.
Note: Some numbers may not add due to
rounding.
Depreciation and Amortization
Depreciation and amortization was flat in the fourth quarter of
2022 as compared to the fourth quarter of 2021.
Interest and Other
Consolidated interest income increased $23 million in the fourth
quarter of 2022 as a result of higher rates of return. Consolidated
interest expense decreased $24 million in the fourth quarter of
2022 primarily as a result of lower interest related to notes being
extinguished in the first three quarters of 2022.
Consolidated other, net was a gain of $84 million in the fourth
quarter of 2022 primarily driven by an increase in the market value
of our minority equity investment in Global Business Travel
Group.
Income Taxes
The GAAP effective tax rate was 4% and 36% in the fourth quarter
and full year 2022, respectively compared to 16% and 140% in the
prior year periods. The change in effective tax rate was primarily
due to the change in pretax income.
The effective tax rate on pretax adjusted net income was 15% and
21% in the fourth quarter and full year 2022, respectively,
compared to 22% and 16% in the prior year periods. The change in
effective tax rate was primarily due to the change in pretax
adjusted net income.
Balance Sheet, Cash Flows and Capitalization
For the three months ended December 31, 2022, consolidated net
cash used in operating activities was $182 million. Consolidated
free cash flow used totaled $359 million, a decline of $501 million
compared to the prior year primarily due to a decrease in cash
provided by operating activities, driven by changes in working
capital.
Cash, cash equivalents and short-term investments totaled $4.1
billion at December 31, 2022 compared to $4.6 billion at September
30, 2022.
Restricted cash and cash equivalents, which primarily consist of
traveler deposits for Vrbo bookings, was $1.8 billion at December
31, 2022 and at September 30, 2022. Prepaid expenses and other
current assets was $774 million at December 31, 2022 compared to
$799 million at September 30, 2022. Deferred merchant bookings
totaled approximately $7.2 billion at December 31, 2022, including
approximately $961 million in deferred loyalty rewards, compared to
$7.5 billion at September 30, 2022, including approximately $915
million in deferred loyalty rewards.
At December 31, 2022, Expedia Group had stock-based awards
outstanding representing approximately 11 million shares of Expedia
Group common stock, consisting of options to purchase approximately
4 million common shares with a $135.93 weighted average exercise
price and weighted average remaining life of 3.5 years, and
approximately 7 million restricted stock units.
During the quarter ended December 31, 2022, Expedia Group
repurchased approximately 3.7 million shares of Expedia Group
common stock for an aggregate purchase price of $347 million
excluding transaction costs (an average of $94.44 per share). As of
December, 2022, there were approximately 18 million shares
remaining under prior Board of Directors share repurchase
authorizations.
EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except share and
per share data)
(Unaudited)
Three months ended
December 31,
Year ended
December 31,
2022
2021
2022
2021
Revenue
$
2,618
$
2,279
$
11,667
$
8,598
Costs and expenses:
Cost of revenue (exclusive of depreciation
and amortization shown separately below) (1)
412
395
1,657
1,522
Selling and marketing (1)
1,376
1,044
6,100
4,221
Technology and content (1)
317
274
1,181
1,074
General and administrative (1)
186
183
748
705
Depreciation and amortization
199
199
792
814
Impairment of goodwill
—
14
—
14
Intangible and other long-term asset
impairment
—
6
81
6
Legal reserves, occupancy tax and
other
—
—
23
1
Restructuring and related reorganization
charges
—
1
—
55
Operating income
128
163
1,085
186
Other income (expense):
Interest income
27
4
60
9
Interest expense
(60
)
(84
)
(277
)
(351
)
Gain (loss) on debt extinguishment,
net
—
—
49
(280
)
Gain on sale of business, net
4
401
6
456
Other, net
84
(13
)
(385
)
(58
)
Total other income (expense), net
55
308
(547
)
(224
)
Income (loss) before income taxes
183
471
538
(38
)
Provision for income taxes
(8
)
(76
)
(195
)
53
Net income
175
395
343
15
Net (income) loss attributable to
non-controlling interests
2
(9
)
9
(3
)
Net income attributable to Expedia Group,
Inc.
177
386
352
12
Preferred stock dividend
—
(3
)
—
(67
)
Loss on redemption of preferred stock
—
(107
)
—
(214
)
Net income (loss) attributable to
Expedia Group, Inc. common stockholders
$
177
$
276
$
352
$
(269
)
Earnings (loss) per share attributable
to Expedia Group, Inc. available to common stockholders:
Basic
$
1.14
$
1.80
$
2.24
$
(1.80
)
Diluted
1.11
1.70
2.17
(1.80
)
Shares used in computing earnings
(loss) per share (000's):
Basic
155,404
153,537
156,672
149,734
Diluted
159,532
161,920
161,751
149,734
(1) Includes stock-based compensation as
follows:
Cost of revenue
$
4
$
5
$
14
$
22
Selling and marketing
17
18
67
96
Technology and content
29
26
111
117
General and administrative
44
50
182
183
EXPEDIA GROUP, INC.
CONSOLIDATED BALANCE
SHEETS
(In millions, except number of
shares which are reflected in thousands and par value)
December 31, 2022
December 31, 2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
4,096
$
4,111
Restricted cash and cash equivalents
1,755
1,694
Short-term investments
48
200
Accounts receivable, net of allowance of
$40 and $65
2,078
1,264
Income taxes receivable
40
85
Prepaid expenses and other current
assets
774
827
Total current assets
8,791
8,181
Property and equipment, net
2,210
2,180
Operating lease right-of-use assets
363
407
Long-term investments and other assets
1,184
1,450
Deferred income taxes
661
766
Intangible assets, net
1,209
1,393
Goodwill
7,143
7,171
TOTAL ASSETS
$
21,561
$
21,548
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable, merchant
$
1,709
$
1,333
Accounts payable, other
947
688
Deferred merchant bookings
7,151
5,688
Deferred revenue
163
166
Income taxes payable
21
16
Accrued expenses and other current
liabilities
787
824
Current maturities of long-term debt
—
735
Total current liabilities
10,778
9,450
Long-term debt, excluding current
maturities
6,240
7,715
Deferred income taxes
52
58
Operating lease liabilities
312
360
Other long-term liabilities
451
413
Commitments and contingencies
Stockholders’ equity:
Common stock: $.0001 par value; Authorized
shares: 1,600,000
—
—
Shares issued: 278,264 and 274,661; Shares
outstanding: 147,757 and 150,125
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
14,795
14,229
Treasury stock - Common stock and Class B,
at cost; Shares 137,783 and 131,813
(10,869
)
(10,262
)
Retained earnings (deficit)
(1,409
)
(1,761
)
Accumulated other comprehensive income
(loss)
(234
)
(149
)
Total Expedia Group, Inc. stockholders’
equity
2,283
2,057
Non-redeemable non-controlling
interests
1,445
1,495
Total stockholders’ equity
3,728
3,552
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
21,561
$
21,548
EXPEDIA GROUP, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In millions)
(Unaudited)
Year ended
December 31,
2022
2021
Operating activities:
Net income
$
343
$
15
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of property and equipment,
including internal-use software and website development
704
715
Amortization of stock-based
compensation
374
418
Amortization of intangible assets
88
99
Impairment of goodwill, intangible and
other long-term assets
81
20
Deferred income taxes
70
(145
)
Foreign exchange loss on cash, restricted
cash and short-term investments, net
128
105
Realized loss on foreign currency
forwards, net
78
16
Loss on minority equity investments,
net
345
29
(Gain) loss on debt extinguishment,
net
(49
)
280
Gain on sale of business, net
(6
)
(456
)
Provision for credit losses and other,
net
23
32
Changes in operating assets and
liabilities, net of effects from acquisitions and dispositions:
Accounts receivable
(838
)
(721
)
Prepaid expenses and other assets
55
(224
)
Accounts payable, merchant
375
777
Accounts payable, other, accrued expenses
and other liabilities
196
138
Tax payable/receivable, net
11
10
Deferred merchant bookings
1,464
2,642
Deferred revenue
(2
)
(2
)
Net cash provided by operating
activities
3,440
3,748
Investing activities:
Capital expenditures, including
internal-use software and website development
(662
)
(673
)
Purchases of investments
(60
)
(201
)
Sales and maturities of investments
205
23
Cash and restricted cash divested from
sale of business, net of proceeds
4
(60
)
Proceeds from initial exchange of
cross-currency interest rate swaps
337
—
Payments for initial exchange of
cross-currency interest rate swaps
(337
)
—
Other, net
(67
)
(20
)
Net cash used in investing
activities
(580
)
(931
)
Financing activities:
Proceeds from issuance of long-term debt,
net of issuance costs
—
1,964
Payment of long-term debt
(2,141
)
(1,706
)
Debt extinguishment costs
(22
)
(258
)
Redemption of preferred stock
—
(1,236
)
Purchases of treasury stock
(607
)
(165
)
Payment of dividends to preferred
stockholders
—
(67
)
Proceeds from exercise of equity awards
and employee stock purchase plan
131
503
Other, net
15
(8
)
Net cash used in financing
activities
(2,624
)
(973
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash and cash equivalents
(190
)
(177
)
Net increase in cash, cash equivalents
and restricted cash and cash equivalents
46
1,667
Cash, cash equivalents and restricted cash
and cash equivalents at beginning of year
5,805
4,138
Cash, cash equivalents and restricted
cash and cash equivalents at end of year
$
5,851
$
5,805
Supplemental cash flow
information
Cash paid for interest
$
291
$
342
Income tax payments, net
102
74
Expedia Group, Inc. Trended
Metrics (All figures in millions)
The supplemental 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, methodology and appropriateness of any of our
supplemental metrics are subject to removal and/or change, and such
changes could be material. In the event of any discrepancy between
any supplemental metric and our historical financial statements,
you should rely on the information filed with the SEC and the
financial statements in our most recent earnings release.
2019
2020
2021
2022
Full Year
Y/Y Growth
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2021
2022
Q422
2022
Gross bookings by business model
Agency
$
17,352
$
16,112
$
14,585
$
11,956
$
9,823
$
1,363
$
3,530
$
3,405
$
6,737
$
10,362
$
8,855
$
8,325
$
11,346
$
12,773
$
10,904
$
9,469
$
34,279
$
44,492
14
%
30
%
Merchant
12,057
12,180
12,342
11,289
8,062
1,350
5,101
4,162
8,685
10,453
9,870
9,138
13,066
13,366
13,083
11,042
38,146
50,557
21
%
33
%
Total
$
29,409
$
28,292
$
26,927
$
23,245
$
17,885
$
2,713
$
8,631
$
7,567
$
15,422
$
20,815
$
18,725
$
17,463
$
24,412
$
26,139
$
23,987
$
20,511
$
72,425
$
95,049
17
%
31
%
Revenue by segment
Retail
$
1,901
$
2,333
$
2,613
$
1,961
$
1,582
$
463
$
1,246
$
702
$
1,025
$
1,715
$
2,351
$
1,730
$
1,740
$
2,420
$
2,707
$
1,874
$
6,821
$
8,741
8
%
28
%
B2B
556
657
731
635
485
68
203
186
184
305
490
481
432
650
788
676
1,460
2,546
41
%
74
%
Corporate (Bodybuilding.com)
—
—
24
34
39
20
—
—
—
—
—
—
—
—
—
—
—
—
NM
NM
Expedia Group (excluding trivago)
$
2,457
$
2,990
$
3,368
$
2,630
$
2,106
$
551
$
1,449
$
888
$
1,209
$
2,020
$
2,841
$
2,211
$
2,172
$
3,070
$
3,495
$
2,550
$
8,281
$
11,287
15
%
36
%
trivago
237
251
279
171
154
18
70
38
46
115
163
99
116
154
185
106
423
561
7
%
33
%
Intercompany eliminations
(85
)
(88
)
(89
)
(54
)
(51
)
(3
)
(15
)
(6
)
(9
)
(24
)
(42
)
(31
)
(39
)
(43
)
(61
)
(38
)
(106
)
(181
)
24
%
71
%
Total
$
2,609
$
3,153
$
3,558
$
2,747
$
2,209
$
566
$
1,504
$
920
$
1,246
$
2,111
$
2,962
$
2,279
$
2,249
$
3,181
$
3,619
$
2,618
$
8,598
$
11,667
15
%
36
%
Revenue by geography
U.S. points of sale
$
1,476
$
1,838
$
1,982
$
1,573
$
1,317
$
463
$
1,033
$
698
$
1,001
$
1,736
$
2,177
$
1,655
$
1,656
$
2,208
$
2,358
$
1,717
$
6,569
$
7,939
4
%
21
%
Non-U.S. points of sale
1,133
1,315
1,576
1,174
892
103
471
222
245
375
785
624
593
973
1,261
901
2,029
3,728
44
%
84
%
Total
$
2,609
$
3,153
$
3,558
$
2,747
$
2,209
$
566
$
1,504
$
920
$
1,246
$
2,111
$
2,962
$
2,279
$
2,249
$
3,181
$
3,619
$
2,618
$
8,598
$
11,667
15
%
36
%
Revenue by business model
Agency
$
842
$
1,047
$
1,177
$
816
$
562
$
105
$
329
$
271
$
323
$
573
$
800
$
611
$
566
$
808
$
935
$
685
$
2,307
$
2,994
12
%
30
%
Merchant
1,435
1,758
1,980
1,590
1,340
368
1,032
521
796
1,338
1,923
1,480
1,485
2,125
2,427
1,725
5,537
7,762
17
%
40
%
Advertising & media and other
332
348
401
341
307
93
143
128
127
200
239
188
198
248
257
208
754
911
10
%
21
%
Total
$
2,609
$
3,153
$
3,558
$
2,747
$
2,209
$
566
$
1,504
$
920
$
1,246
$
2,111
$
2,962
$
2,279
$
2,249
$
3,181
$
3,619
$
2,618
$
8,598
$
11,667
15
%
36
%
Adjusted EBITDA by segment
Retail
$
208
$
561
$
889
$
513
$
36
$
(191
)
$
440
$
13
$
106
$
316
$
879
$
481
$
188
$
582
$
943
$
411
$
1,782
$
2,124
(15
)%
19
%
B2B
79
135
155
101
32
(123
)
(47
)
(52
)
(57
)
(4
)
74
97
80
156
221
142
110
599
47
%
445
%
Unallocated overhead costs
(135
)
(148
)
(144
)
(165
)
(143
)
(106
)
(96
)
(117
)
(103
)
(116
)
(116
)
(119
)
(120
)
(123
)
(119
)
(125
)
(454
)
(487
)
5
%
7
%
Expedia Group (excluding trivago)
$
152
$
548
$
900
$
449
$
(75
)
$
(420
)
$
297
$
(156
)
$
(54
)
$
196
$
837
$
459
$
148
$
615
$
1,045
$
428
$
1,438
$
2,236
(7
)%
55
%
trivago
24
20
12
29
(1
)
(16
)
7
(4
)
(4
)
5
18
20
25
33
34
21
39
113
11
%
191
%
Total
$
176
$
568
$
912
$
478
$
(76
)
$
(436
)
$
304
$
(160
)
$
(58
)
$
201
$
855
$
479
$
173
$
648
$
1,079
$
449
$
1,477
$
2,349
(6
)%
59
%
Net income (loss) attributable to Expedia Group common stockholders
$
(103
)
$
183
$
409
$
76
$
(1,301
)
$
(753
)
$
(221
)
$
(412
)
$
(606
)
$
(301
)
$
362
$
276
$
(122
)
$
(185
)
$
482
$
177
$
(269
)
$
352
(36
)%
NM
Worldwide lodging (merchant &
agency)
Booked room nights
103.9
100.8
101.3
86.3
58.5
12.2
41.1
33.3
54.0
68.4
65.4
59.7
77.0
82.5
81.6
70.8
247.5
312.0
Booked room night growth
9
%
10
%
11
%
9
%
(44
)%
(88
)%
(59
)%
(61
)%
(8
)%
462
%
59
%
79
%
43
%
21
%
25
%
19
%
71
%
26
%
Booked ADR growth
(2
)%
(1
)%
—
%
—
%
(2
)%
(14
)%
2
%
4
%
34
%
49
%
21
%
23
%
4
%
3
%
5
%
(1
)%
28
%
3
%
Stayed room nights
80.8
100.1
116.5
91.6
69.4
19.2
48.8
36.1
37.1
56.6
77.8
62.9
56.5
79.1
93.2
74.6
234.4
303.4
Stayed room night growth
9
%
12
%
11
%
11
%
(14
)%
(81
)%
(58
)%
(61
)%
(47
)%
196
%
59
%
74
%
52
%
40
%
20
%
19
%
35
%
29
%
Stayed ADR growth
(1
)%
—
%
(1
)%
—
%
2
%
1
%
8
%
2
%
8
%
21
%
19
%
23
%
20
%
9
%
4
%
3
%
20
%
7
%
Revenue per night growth
(2
)%
1
%
—
%
(1
)%
6
%
15
%
14
%
6
%
10
%
7
%
17
%
24
%
17
%
12
%
5
%
(1
)%
18
%
7
%
Lodging revenue growth
7
%
12
%
11
%
9
%
(9
)%
(78
)%
(52
)%
(58
)%
(41
)%
215
%
87
%
116
%
78
%
57
%
25
%
18
%
59
%
38
%
Worldwide air (merchant & agency)
Tickets sold growth
11
%
10
%
8
%
—
%
(26
)%
(85
)%
(74
)%
(69
)%
(50
)%
299
%
132
%
92
%
48
%
1
%
(4
)%
(2
)%
43
%
8
%
Airfare growth
(1
)%
1
%
—
%
1
%
(5
)%
(35
)%
(36
)%
(31
)%
(26
)%
30
%
31
%
32
%
39
%
35
%
32
%
22
%
3
%
30
%
Revenue per ticket growth
(7
)%
(7
)%
(10
)%
(9
)%
(41
)%
NM
(48
)%
(35
)%
(10
)%
NM
(2
)%
(12
)%
1
%
21
%
69
%
47
%
69
%
32
%
Air revenue growth
3
%
2
%
(3
)%
(8
)%
(56
)%
NM
(87
)%
(80
)%
(55
)%
NM
128
%
68
%
50
%
22
%
61
%
44
%
141
%
43
%
Notes:
- All comparisons are against comparable period of prior year
unless otherwise noted.
- Advertising & Media Revenue includes third-party revenue
from trivago. All trivago revenue is classified as Non-U.S. point
of sale.
- Corporate includes product revenue subsequent to our
acquisition of Bodybuilding.com in July 2019 through its sale in
May 2020.
- B2B includes Egencia through its sale in November 2021.
- Some numbers may not add due to rounding. All percentages above
and throughout this release are calculated on precise, unrounded
numbers.
Notes & Definitions:
Gross 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.
Retail: The Retail segment, which
consists of the aggregation of operating segments, provides a full
range of travel and advertising services to our worldwide customers
through a variety of consumer brands including: Expedia.com and
Hotels.com in the United States, localized Expedia and Hotels.com
websites throughout the world, Vrbo, Orbitz, Travelocity, Wotif
Group, ebookers, Hotwire.com, and CarRentals.com.
B2B: The B2B segment is comprised
of Expedia Partner Solutions, which operates private label and
co-branded programs to make travel services available to leisure
travelers though third-party company branded websites and Egencia
through its sale on November 1, 2021.
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.
Corporate: Includes unallocated
corporate expenses as well as Bodybuilding.com subsequent to our
acquisition in July 2019 through its sale in May 2020.
Lodging Metrics: Reported on a
stayed and book basis. Lodging consists of both merchant and agency
model hotel and alternative accommodations.
Room Nights Stayed: Room nights
stayed represent stayed hotel room nights and include property
nights for our Retail reportable segment and stayed hotel room
nights for our B2B reportable segment. Stayed hotel room nights
include both merchant and agency hotel stays. Property nights,
which are related to our alternative accommodation business, are
reported upon the first day of stay and check-in to a property and
represent the total number of nights for which a property is
rented.
Room Nights Booked: Room nights
booked represent booked hotel room nights and include property
nights for our Retail reportable segment and booked hotel room
nights for our B2B reportable segment. Booked hotel room nights
include both merchant and agency hotel stays. Property nights are
related to our alternative accommodation business.
Air Metrics: Reported on a booked
basis and includes both merchant and agency air bookings.
Definitions of Non-GAAP Measures
Expedia Group reports Adjusted EBITDA, 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. The
definition of Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization was revised in the fourth quarter of
2012 and in the first quarter of 2016 and the definition for
Adjusted Net Income (Loss) was revised in the fourth quarters of
2010, 2011, 2012 and 2017. The definition of Adjusted Expenses was
revised in the first quarter of 2014 and in the second quarter
2015.
Adjusted EBITDA 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; and
(iii) upfront consideration paid to settle
employee compensation plans of the acquiree;
(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. We believe Adjusted EBITDA is a useful
measure for analysts and investors to evaluate our future on-going
performance as this measure allows a more meaningful comparison of
our performance and projected cash earnings with our historical
results from prior periods and to the results of our competitors.
Moreover, our management uses this measure internally to evaluate
the performance of our business as a whole and our individual
business segments. In addition, we believe that by excluding
certain items, such as stock-based compensation and
acquisition-related impacts, Adjusted EBITDA corresponds more
closely to the cash operating income generated from our business
and allows investors to gain an understanding of the factors and
trends affecting the ongoing cash earnings capabilities of our
business, from which capital investments are made and debt is
serviced.
Adjusted Net Income (Loss)
generally captures all items on the statements of operations that
occur in normal course operations and have been, or ultimately will
be, settled in cash and is defined as net income (loss)
attributable to Expedia Group plus the following items, net of
tax:
(1) stock-based compensation expense,
including compensation expense related to equity plans of certain
subsidiaries and equity-method investments;
(2) acquisition-related impacts,
including;
(i) amortization of intangible assets,
including as part of equity-method investments, 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) gains (losses) recognized on
non-controlling investment basis adjustments when we acquire or
lose controlling interests;
(3) currency gains or losses on U.S.
dollar denominated cash;
(4) since adoption of new accounting
guidance in the first quarter of 2018, the changes in fair value of
equity investments;
(5) certain other items, including
restructuring charges;
(6) items included in legal reserves,
occupancy tax and other, which includes reserves for potential
settlement of issues related to transactional taxes (e.g., hotel
occupancy and excise taxes), related 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, including as part of equity method
investments;
(7) discontinued operations;
(8) the non-controlling interest impact of
the aforementioned adjustment items; and
(9) unrealized gains (losses) on revenue
hedging activities that are included in other, net.
Adjusted Net Income (Loss) includes preferred share dividends.
We believe Adjusted Net Income (Loss) is useful to investors
because it represents Expedia Group's combined results, taking into
account depreciation, which management believes is an ongoing cost
of doing business, but excluding the impact of certain expenses and
items not directly tied to the core operations of our
businesses.
Adjusted EPS is defined as Adjusted
Net Income (Loss) divided by adjusted weighted average shares
outstanding, which, when applicable, include dilution from our
convertible debt instruments per the treasury stock method for
Adjusted EPS. The treasury stock method assumes we would elect to
settle the principal amount of the debt for cash and the conversion
premium for shares. If the conversion prices for such instruments
exceed our average stock price for the period, the instruments
generally would have no impact to adjusted weighted average shares
outstanding. This differs from the GAAP method for dilution from
our convertible debt instruments, which include them on an
if-converted method. We believe Adjusted EPS is useful to investors
because it represents, on a per share basis, Expedia Group's
consolidated results, taking into account depreciation, which we
believe is an ongoing cost of doing business, as well as other
items which are not allocated to the operating businesses such as
interest expense, taxes, foreign exchange gains or losses, and
minority interest, but excluding the effects of certain expenses
not directly tied to the core operations of our businesses.
Adjusted Net Income (Loss) and Adjusted EPS have similar
limitations as Adjusted EBITDA. In addition, Adjusted Net Income
(Loss) does not include all items that affect our net income (loss)
and net income (loss) per share for the period. Therefore, we think
it is important to evaluate these measures along with our
consolidated statements of operations.
Free Cash Flow is defined as net
cash flow provided by operating activities less capital
expenditures. Management believes Free Cash Flow is useful to
investors because it represents the operating cash flow that our
operating businesses generate, less capital expenditures but before
taking into account other cash movements that are not directly tied
to the core operations of our businesses, such as financing
activities, foreign exchange or certain investing activities. We
added additional detail for the capital expenditures associated
with building our new headquarters facility in Seattle, Washington.
We believe separating out capital expenditures for this discrete
project is important to provide additional transparency to
investors related to operating versus project-related capital
expenditures. Free Cash Flow has certain limitations in that it
does not represent the total increase or decrease in the cash
balance for the period, nor does it represent the residual cash
flow for discretionary expenditures. Therefore, it is important to
evaluate Free Cash Flow along with the consolidated statements of
cash flows.
Adjusted Expenses (cost of revenue,
selling and marketing, technology and content and general and
administrative expenses) exclude stock-based compensation
related to expenses for stock options, restricted stock units and
other equity compensation under applicable stock-based compensation
accounting standards. Expedia Group excludes stock-based
compensation from these measures primarily because they are
non-cash expenses that we do not believe are necessarily reflective
of our ongoing cash operating expenses and cash operating income.
Moreover, because of varying available valuation methodologies,
subjective assumptions and the variety of award types that
companies can use when adopting applicable stock-based compensation
accounting standards, management believes that providing non-GAAP
financial measures that exclude stock-based compensation allows
investors to make meaningful comparisons between our recurring core
business operating results and those of other companies, as well as
providing management with an important tool for financial
operational decision making and for evaluating our own recurring
core business operating results over different periods of time.
There are certain limitations in using financial measures that do
not take into account stock-based compensation, including the fact
that stock-based compensation is a recurring expense and a valued
part of employees' compensation. Therefore, it is important to
evaluate both our GAAP and non-GAAP measures. See the Notes to the
Consolidated Statements of Operations for stock-based compensation
by line item.
Expedia Group, Inc. (excluding
trivago) In order to provide increased transparency on the
transaction-based component of the business, Expedia Group is
reporting results both in total and excluding trivago.
In addition, we evaluate certain operating and financial
measures, including revenue growth, on both an as-reported and
excluding the impact of foreign exchange, FX neutral, basis. FX
neutral results are among the primary metrics by which management
evaluates the performance of the business and management believes
that investors should have access to the same set of tools that
management uses to analyze our results. We estimate FX neutral
revenue growth by (i) excluding the FX impacts resulting from the
time period between a transaction's booking date and revenue
recognition date for both the current and prior year periods, and
(ii) converting our current-year period results for transactions
recorded in currencies other than U.S. Dollars using the
corresponding prior-year period exchange rates rather than the
current-year period exchange rates.
Tabular Reconciliations for Non-GAAP Measures
Adjusted EBITDA (Adjusted Earnings Before
Interest, Taxes, Depreciation & Amortization) by Segment(1)
Three months ended December
31, 2022
Retail
B2B
trivago
Corporate &
Eliminations
Total
(In millions)
Operating income (loss)
$
260
$
114
$
20
$
(266
)
$
128
Realized gain (loss) on revenue hedges
23
5
—
—
28
Stock-based compensation
—
—
—
94
94
Amortization of intangible assets
—
—
—
22
22
Depreciation
128
23
1
25
177
Adjusted EBITDA(1)
$
411
$
142
$
21
$
(125
)
$
449
Three months ended December
31, 2021
Retail
B2B
trivago
Corporate &
Eliminations
Total
(In millions)
Operating income (loss)
$
358
$
73
$
18
$
(286
)
$
163
Realized gain (loss) on revenue hedges
(3
)
—
—
—
(3
)
Restructuring and related reorganization
charges
—
—
—
1
1
Stock-based compensation
—
—
—
99
99
Impairment of goodwill
—
—
—
14
14
Intangible and other long-term asset
impairment
—
—
—
6
6
Amortization of intangible assets
—
—
—
22
22
Depreciation
126
24
2
25
177
Adjusted EBITDA(1)
$
481
$
97
$
20
$
(119
)
$
479
Year ended December 31,
2022
Retail
B2B
trivago
Corporate &
Eliminations
Total
(In millions)
Operating income (loss)
$
1,617
$
518
$
105
$
(1,155
)
$
1,085
Realized gain (loss) on revenue hedges
(2
)
(4
)
—
—
(6
)
Legal reserves, occupancy tax and
other
—
—
—
23
23
Stock-based compensation
—
—
—
374
374
Intangible and other long-term asset
impairment
—
—
—
81
81
Amortization of intangible assets
—
—
—
88
88
Depreciation
509
85
8
102
704
Adjusted EBITDA(1)
$
2,124
$
599
$
113
$
(487
)
$
2,349
Year ended December 31,
2021
Retail
B2B
trivago
Corporate &
Eliminations
Total
(In millions)
Operating income (loss)
$
1,277
$
8
$
29
$
(1,128
)
$
186
Realized gain (loss) on revenue hedges
(17
)
—
—
—
(17
)
Restructuring and related reorganization
charges
—
—
—
55
55
Legal reserves, occupancy tax and
other
—
—
—
1
1
Stock-based compensation
—
—
—
418
418
Impairment of goodwill
—
—
—
14
14
Intangible and other long-term asset
impairment
—
—
—
6
6
Amortization of intangible assets
—
—
—
99
99
Depreciation
522
102
10
81
715
Adjusted EBITDA(1)
$
1,782
$
110
$
39
$
(454
)
$
1,477
(1) Adjusted EBITDA for our Retail and B2B
segments includes allocations of certain expenses, primarily cost
of revenue and facilities, the total costs of our global travel
supply organizations, the majority of platform and marketplace
technology costs, and the realized foreign currency gains or losses
related to the forward contracts hedging a component of our net
merchant lodging revenue. We base the allocations primarily on
transaction volumes and other usage metrics. We do not allocate
certain shared expenses such as accounting, human resources,
certain information technology and legal to our reportable
segments. We include these expenses in Corporate and Eliminations.
Our allocation methodology is periodically evaluated and may
change.
Adjusted EBITDA (Adjusted Earnings Before
Interest, Taxes, Depreciation & Amortization)
Three months ended
December 31,
Year ended
December 31,
2022
2021
2022
2021
(In millions)
Net income attributable to Expedia Group,
Inc.
$
177
$
386
$
352
$
12
Net income (loss) attributable to
non-controlling interests
(2
)
9
(9
)
3
Provision for income taxes
8
76
195
(53
)
Total other (income) expense, net
(55
)
(308
)
547
224
Operating income
128
163
1,085
186
Gain (loss) on revenue hedges related to
revenue recognized
28
(3
)
(6
)
(17
)
Restructuring and related reorganization
charges
—
1
—
55
Legal reserves, occupancy tax and
other
—
—
23
1
Stock-based compensation
94
99
374
418
Depreciation and amortization
199
199
792
814
Impairment of goodwill
—
14
—
14
Intangible and other long-term asset
impairment
—
6
81
6
Adjusted EBITDA
$
449
$
479
$
2,349
$
1,477
Net income margin(1)
6.8
%
16.9
%
3.0
%
0.1
%
Adjusted EBITDA margin(1)
17.2
%
21.0
%
20.1
%
17.2
%
(1) Net income and Adjusted EBITDA margins
represent net income attributable to Expedia Group, Inc. or
Adjusted EBITDA divided by revenue.
Adjusted Net Income (Loss) & Adjusted
EPS
Three months ended
December 31,
Year ended
December 31,
2022
2021
2022
2021
(In millions, except share and
per share data)
Net income attributable to Expedia Group,
Inc.
$
177
$
386
$
352
$
12
Less: Net (income) loss attributable to
non-controlling interests
2
(9
)
9
(3
)
Less: Provision for income taxes
(8
)
(76
)
(195
)
53
Income (loss) before income taxes
183
471
538
(38
)
Amortization of intangible assets
22
22
88
99
Stock-based compensation
94
99
374
418
Legal reserves, occupancy tax and
other
—
—
23
1
Restructuring and related reorganization
charges
—
1
—
55
Impairment of goodwill
—
14
—
14
Intangible and other long-term asset
impairment
—
6
81
6
Unrealized (gain) loss on revenue
hedges
12
—
(3
)
(5
)
(Gain) loss on minority equity
investments, net
(78
)
22
345
29
(Gain) loss on debt extinguishment,
net
—
—
(49
)
280
Gain on sale of business, net
(4
)
(401
)
(6
)
(456
)
Adjusted income before income taxes
229
234
1,391
403
GAAP Provision for income taxes
(8
)
(76
)
(195
)
53
Provision for income taxes for
adjustments
(26
)
25
(100
)
(119
)
Total Adjusted provision for income
taxes
(34
)
(51
)
(295
)
(66
)
Total Adjusted income tax rate
14.8
%
22.0
%
21.2
%
16.4
%
Non-controlling interests
1
(13
)
(24
)
(13
)
Preferred stock dividend
—
(3
)
—
(67
)
Adjusted net income attributable to
Expedia Group, Inc.
$
196
$
167
$
1,072
$
257
GAAP diluted weighted average shares
outstanding (000's)
159,532
161,920
161,751
149,734
Adjustment to dilutive securities
(000's)
(3,921
)
(3,921
)
(3,921
)
6,587
Adjusted weighted average shares
outstanding (000's)
155,611
157,999
157,830
156,321
Diluted earnings (loss) per share
$
1.11
$
1.70
$
2.17
$
(1.80
)
Adjusted earnings per share attributable
to Expedia Group, Inc.
$
1.26
$
1.06
$
6.79
$
1.65
Ex-trivago Adjusted Net Income and
Adjusted EPS
Adjusted net income attributable to
Expedia Group, Inc.
$
196
$
167
$
1,072
$
257
Less: Adjusted net income attributable to
trivago
3
15
49
18
Adjusted net income excluding trivago
$
193
$
152
$
1,023
$
239
Adjusted earnings per share attributable
to Expedia Group, Inc.
$
1.26
$
1.06
$
6.79
$
1.65
Less: Adjusted earnings per share
attributable to trivago
0.02
0.10
0.31
0.12
Adjusted earnings per share excluding
trivago
$
1.24
$
0.96
$
6.48
$
1.53
Free Cash Flow
Three months ended
December 31,
Year ended
December 31,
2022
2021
2022
2021
(In millions)
Net cash provided by (used in) operating
activities
$
(182
)
$
285
$
3,440
$
3,748
Headquarters capital expenditures
—
—
—
(23
)
Non-headquarters capital expenditures
(177
)
(143
)
(662
)
(650
)
Less: Total capital expenditures
(177
)
(143
)
(662
)
(673
)
Free cash flow
$
(359
)
$
142
$
2,778
$
3,075
Adjusted Expenses (Cost of revenue,
selling and marketing, technology and content and general and
administrative expenses)
Three months ended
December 31,
Year ended
December 31,
2022
2021
2022
2021
(In millions)
Cost of revenue
$
412
$
395
$
1,657
$
1,522
Less: stock-based compensation
4
5
14
22
Adjusted cost of revenue
$
408
$
390
$
1,643
$
1,500
Less: trivago cost of revenue(1)
4
3
17
16
Adjusted cost of revenue excluding
trivago
$
404
$
387
$
1,626
$
1,484
Selling and marketing expense
$
1,376
$
1,044
$
6,100
$
4,221
Less: stock-based compensation
17
18
67
96
Adjusted selling and marketing expense
$
1,359
$
1,026
$
6,033
$
4,125
Less: trivago selling and marketing
expense(1)(2)
24
25
172
183
Adjusted selling and marketing expense
excluding trivago
$
1,335
$
1,001
$
5,861
$
3,942
Technology and content expense
$
317
$
274
$
1,181
$
1,074
Less: stock-based compensation
29
26
111
117
Adjusted technology and content
expense
$
288
$
248
$
1,070
$
957
Less: trivago technology and content
expense(1)
11
12
47
49
Adjusted technology and content expense
excluding trivago
$
277
$
236
$
1,023
$
908
General and administrative expense
$
186
$
183
$
748
$
705
Less: stock-based compensation
44
50
182
183
Adjusted general and administrative
expense
$
142
$
133
$
566
$
522
Less: trivago general and administrative
expense(1)
7
8
30
29
Adjusted general and administrative
expense excluding trivago
$
135
$
125
$
536
$
493
Note: Some numbers may not add due to
rounding.
(1) trivago amount presented without
stock-based compensation as those are included with the
consolidated totals above.
(2) Selling and marketing expense adjusted
to add back Retail spend on trivago eliminated in
consolidation.
Conference Call
Expedia Group, Inc. will webcast a conference call to discuss
fourth quarter 2022 financial results and certain forward-looking
information on Thursday, February 9, 2023 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 three months
subsequent to the initial broadcast.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
This release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. These forward-looking
statements are based on assumptions that are inherently subject to
uncertainties, risks and changes in circumstances that are
difficult to predict. The use of words such as “believe,”
“estimate,” “expect” and “will,” or the negative of these terms or
other similar expressions, among others, generally identify
forward-looking statements. However, these words are not the
exclusive means of identifying such statements. In addition, any
statements that refer to expectations, projections or other
characterizations of future events or circumstances are
forward-looking statements and may include statements relating to
future revenues, expenses, margins, profitability, net income
(loss), earnings per share and other measures of results of
operations and the prospects for future growth of Expedia Group,
Inc.’s business. Actual results may differ materially from the
results predicted and reported results should not be considered as
an indication of future performance. The potential risks and
uncertainties that could cause actual results to differ from the
results predicted include, among others, those described in the
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of our most
recently filed periodic reports on Form 10-K and Form 10-Q, which
are available on our investor relations website at
ir.expediagroup.com and on the SEC website at www.sec.gov. All
information provided in this release is as of February 9, 2023.
Undue reliance should not be placed on forward-looking statements
in this release, which are based on information available to us on
the date hereof. We undertake no duty to update this information
unless required by law.
About Expedia Group
Expedia Group, Inc. (NASDAQ: EXPE) companies power travel for
everyone, everywhere through our global platform. Driven by the
core belief that travel is a force for good, we help people
experience the world in new ways and build lasting connections. We
provide industry-leading technology solutions to fuel partner
growth and success, while facilitating memorable experiences for
travelers. Our organization is made up of three pillars: Expedia
Product and Technology, focused on the group’s product and
technical strategy and offerings; Expedia Brands, housing all our
consumer brands; and Expedia for Business, consisting of
business-to-business solutions and relationships throughout the
travel ecosystem. The Expedia Group family of brands includes:
Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, trivago®,
Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®,
Expedia Group™ Media Solutions, CarRentals.com™, and Expedia
Cruises™.
© 2023 Expedia, Inc., an Expedia Group company. All rights
reserved. Trademarks and logos are the property of their respective
owners. CST: 2029030-50
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230209005538/en/
Investor Relations ir@expediagroup.com
Communications press@expediagroup.com
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