Expedia Group (EXPE) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered 6% year-over-year growth in gross bookings and revenue, reaching $28.8 billion and $3.6 billion respectively, driven by B2B strength, Vrbo recovery, Brand Expedia, and lodging demand.

• Room nights booked grew 10% year-over-year, with Brand Expedia up nearly 20%.

• Net income was $386 million, with adjusted EBITDA up 5% to $786 million, reflecting operational efficiencies.

• Share repurchases totaled $1.2 billion (9.2 million shares) year-to-date, with $3.6–$3.8 billion remaining authorized.

• July saw a more challenging macro environment and softening travel demand, prompting a downward adjustment in full-year expectations.

Financial highlights

• Q2 revenue was $3.6 billion, up 6% year-over-year; net income was $386 million; diluted EPS was $2.80, up 10%.

• Gross bookings reached $28.8 billion, with lodging gross bookings up 8% and hotel business up 11%.

• Adjusted EBITDA was $786 million (22.1% margin); adjusted EBIT was $475 million (13.3% margin), both showing margin expansion.

• Free cash flow for Q2 was $1.3 billion, up 42% year-over-year; year-to-date free cash flow was $4 billion, up 4%.

• Cash and cash equivalents plus short-term investments totaled $6.3 billion as of June 30, 2024.

Outlook and guidance

• Q3 gross bookings and revenue growth expected at 3%-5% year-over-year, reflecting macro headwinds and demand softness.

• Full-year gross bookings expected at the low end of prior guidance (~4%), with revenue growth at ~6%.

• Ongoing investments in Vrbo, international marketing, and technology are expected to impact margins in Q3.

• Management expects continued healthy but normalized travel demand for the remainder of 2024.

• Reorganization charges of $10–$20 million anticipated for the rest of 2024.