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01/11 03:34
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong financial performance with 13% growth in gross bookings and 10% revenue growth. The reinstated dividend and significant share repurchases are positive for shareholders. Although there are some concerns about Q1 softening and vague responses on Vrbo and advertising growth, the overall sentiment is positive due to strong financial metrics, improved EBITDA margins, and optimistic guidance.
Gross Bookings $24,400,000,000, grew 13% year-over-year, with a five-point sequential acceleration in both B2C and B2B due to better than expected demand and strong operational execution.
Lodging Gross Bookings $X (exact figure not provided), grew 12%, with hotel business growing 14% and continued acceleration at Vrbo.
Revenue $3,200,000,000, grew 10% year-over-year, primarily driven by B2B business growth of 21% and Vrbo's bookings momentum.
Gross Margin Nearly 90%, up 125 basis points year-over-year, due to ongoing initiatives delivering transactional efficiencies.
Direct Sales and Marketing Expense $1,500,000,000, up 13%, leading to flat leverage as a percent of gross bookings, with over 20 basis points of sequential improvement.
Overhead Expenses $643,000,000, a decrease of 1%, resulting in nearly 250 basis points of leverage due to lower people costs and strong expense control.
EBITDA $643,000,000, up 21% year-over-year, with an EBITDA margin of 20.2%, an expansion of 175 basis points due to higher revenue growth and effective expense management.
EBIT $338,000,000, with a margin of 10.6%, up 280 basis points year-over-year, driven by lower stock-based compensation and ongoing depreciation leverage.
Full Year Gross Bookings $111,000,000,000, up 7% year-over-year, supported by recovery in B2C business and strength in B2B and advertising.
Full Year Revenue Nearly $14,000,000,000, also up 7% year-over-year, driven by B2C recovery and strong B2B and advertising performance.
Full Year EBITDA Margin 21.4%, an expansion of approximately 60 basis points year-over-year.
Free Cash Flow $2,300,000,000, up 26% year-over-year, driven by higher EBITDA, growth in deferred merchant bookings, and lower capital expenditures.
Unrestricted Cash and Short Term Investments $4,500,000,000 at the end of the quarter.
Share Repurchases $1,600,000,000 or 12,100,000 shares in 2024, totaling over $4,000,000,000 or 36,000,000 shares repurchased since the program reinstatement.
New Product Features: Vrbo improved product features like dateless search and property comparison, contributing to bookings growth.
Advertising Revenue Growth: Advertising revenue grew 32% in 2024, driven by onboarding more advertisers and launching new ad types.
International Market Expansion: Bookings growth outside the U.S. accelerated four points sequentially, with strong performance in APAC.
B2B Business Growth: B2B bookings grew 21% for the full year, with strong international demand.
Cost Management: Disciplined cost management led to strong EBITDA growth and margin expansion.
Operational Efficiencies: Ongoing initiatives delivered transactional efficiencies, particularly in customer service.
Focus on AI: AI will be leveraged to enhance product offerings, improve customer experiences, and drive operational efficiencies.
Loyalty Program Enhancements: Global active membership in the loyalty program grew 7% in Q4, with a focus on targeted marketing.
Travel Demand: Despite healthy travel demand in Q4, there are signs of softening in January, which may impact future bookings.
Foreign Exchange Impact: The stronger U.S. dollar is expected to create a foreign exchange headwind, affecting revenue growth.
Regulatory and Market Conditions: The company is cautious about potential regulatory changes and market conditions that could impact travel demand.
Supply Chain Challenges: The company acknowledges ongoing challenges in supply chain management, particularly in securing quality inventory for Vrbo and Hotels.com.
Competitive Pressures: Increased competition in the travel sector may affect market share and pricing strategies.
Economic Factors: Economic uncertainties could impact consumer spending on travel, leading to potential fluctuations in demand.
Marketing Investments: The need for effective marketing strategies to drive growth in a competitive environment remains a challenge.
Operational Efficiencies: While there are plans for operational efficiencies, achieving these while maintaining growth is a balancing act.
Strategic Priorities for 2025: 1. Deliver more value for travelers through personalized experiences and improved supply. 2. Invest in growth opportunities across consumer and B2B segments. 3. Drive operational efficiencies and expand profit margins.
AI Integration: AI will be leveraged to enhance product offerings, improve customer experiences, and drive operational efficiencies.
B2B Growth: Focus on deepening partnerships and sourcing unique supply to drive growth in the B2B segment, particularly in APAC.
Advertising Revenue Growth: Continued innovation in advertising products and onboarding more advertisers to drive revenue growth.
Q1 2025 Guidance: Expect gross bookings growth of 4% to 6% and revenue growth of 3% to 5%, factoring in foreign exchange headwinds and seasonal shifts.
2025 Full Year Guidance: Expect gross bookings and revenue growth in the 4% to 6% range, with EBITDA margin expansion of 50 basis points year over year.
Capital Allocation: Plan to repurchase approximately $3.2 billion in shares and reinstate a quarterly dividend of $0.40 per share starting March 2025.
Long-term Margin Strategy: Aim for continued operational efficiencies and margin expansion while balancing growth investments.
Quarterly Dividend: Expedia Group announced the reinstatement of its quarterly dividend starting in March 2025, set at $0.40 per share, which equates to approximately a 1% annual dividend yield.
Share Repurchase Program: In 2024, Expedia Group repurchased $1.6 billion worth of shares, totaling 12.1 million shares. Since the program's reinstatement over two years ago, the company has repurchased over $4 billion, amounting to 36 million shares.
Remaining Share Repurchase Authorization: Expedia Group has approximately $3.2 billion remaining on its share repurchase authorization.
The earnings call summary and Q&A session indicate strong financial performance, optimistic guidance, and strategic growth plans, particularly in B2B and advertising. The raised guidance, AI integration, and international growth are positive indicators. Some concerns in B2B competition and unclear responses slightly temper the sentiment, but overall, the outlook is positive.
The earnings call summary reveals positive developments across multiple areas, including improvements in product offerings, marketing leverage, international growth, and loyalty programs. Despite some unclear management responses, the overall sentiment is bolstered by strategic initiatives in AI, B2B, and brand expansion. These factors, coupled with optimistic guidance and a shareholder return plan, suggest a positive stock price movement over the next two weeks.
The earnings call indicates strong financial performance with 13% growth in gross bookings and 10% revenue growth. The reinstated dividend and significant share repurchases are positive for shareholders. Although there are some concerns about Q1 softening and vague responses on Vrbo and advertising growth, the overall sentiment is positive due to strong financial metrics, improved EBITDA margins, and optimistic guidance.
The earnings call reflects a positive sentiment with strong financial metrics such as growth in gross bookings and revenue, and a robust liquidity position. The share repurchase program further enhances shareholder returns. Despite some challenges like soft Vrbo bookings, the optimistic outlook on marketing leverage and B2B growth, coupled with strategic inventory moves, indicates potential for future growth. The positive sentiment from analysts in the Q&A, along with a focus on improving product and supply, supports a positive stock price prediction over the next two weeks.
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