Expedia Group (EXPE) Q3 2024 earnings summary

Executive summary

• Q3 2024 results exceeded expectations for gross bookings and earnings, with revenue up 3% to $4.06 billion, driven by strong B2B segment growth and continued strength in hotel bookings, despite weather and currency headwinds.

• Net income attributable to Expedia Group was $684 million for Q3 2024, a 61% increase from $425 million in Q3 2023.

• Adjusted EBITDA for Q3 2024 was $1.25 billion, up 3% year-over-year, with B2B Adjusted EBITDA up 27% and B2C down 3%.

• Consumer business saw accelerated gross bookings for the second consecutive quarter, led by Brand Expedia and Vrbo's return to growth.

• Leadership changes announced: CFO Julie Whalen stepping down, with transition expected by February 2025, and new CTO Ramana Thumu appointed.

Financial highlights

• Gross bookings for Q3 2024 were $27.5 billion, up 7% year-over-year, with lodging gross bookings up 8% and hotel business up 10%.

• Revenue increased 3% year-over-year to $4.1 billion; excluding FX, revenue growth would have been 5%.

• Operating income for Q3 2024 was $762 million (18.8% margin), up 26% from $607 million in Q3 2023.

• Diluted EPS for Q3 2024 was $5.04, up from $2.87 in Q3 2023; Adjusted EPS was $6.13, up 13%.

• Free cash flow year-to-date reached $2.32 billion, up 3% year-over-year.

Outlook and guidance

• Q4 gross bookings growth expected at 6%-8% year-over-year, with revenue growth about one point lower.

• Full-year 2024 guidance raised: gross bookings growth now expected at ~5%, EBITDA and EBIT margins slightly up, revenue growth at ~6%.

• Management expects a healthy but more normalized travel demand environment for the remainder of 2024, with consumers continuing to prioritize travel.

• Ongoing investments in global market expansion and technology are expected to support future growth.

• Reorganization charges of $5–10 million are expected in the remainder of 2024.