Q1 2024 Expedia Group Inc Earnings Call Transcript
Key Points
- Expedia Group Inc (EXPE) reported a revenue of $2.9 billion, an 8% increase compared to the previous year, driven by strong performance in B2B, Brand Expedia, and advertising businesses.
- Total gross bookings of $30.2 billion were up 3% year-over-year, with lodging gross bookings growing by 4%, led by the hotel business which grew by 12%.
- First quarter EBITDA of $255 million was up 38% year-over-year, with an EBITDA margin of 8.8%, expanding over 190 basis points year-over-year.
- Expedia Group Inc (EXPE) ended the quarter with strong liquidity of $8.2 billion, supported by an unrestricted cash balance of $5.7 billion and an undrawn revolving line of credit of $2.5 billion.
- The company continues to see broad improvement across its B2C business, with significant conversion gains driven by higher test velocity and future rollouts.
- Vrbo's recovery post-technical migration was slower than expected, impacting the overall performance and leading to a reduction in full-year guidance for top-line growth.
- Direct sales and marketing expenses in the first quarter increased by 11% year-over-year, leading to a deleverage as a percentage of gross bookings.
- The company expects growth to be lower than initially anticipated for 2024, prompting a revision of the full-year guidance to a range of mid- to high single-digit top-line growth.
- Despite strong EBITDA growth, first quarter EBIT was negative $59 million with a margin of negative 2.1%, although this was an improvement from the previous year.
- The company is still in the process of fully completing its tech platform, which has temporarily reduced its development capacity to build new features, impacting the competitiveness of some brands.
Good day, everyone, and welcome to the Expedia Group Q1 2024 Financial Results Teleconference. My name is Lauren, and I will be the operator for today's call. (Operator Instructions) For opening remarks, I will turn the call over to SVP, Corporate Development, Strategy and Investor Relations, Harshit Vaish. Please go ahead.
Good afternoon, and welcome to Expedia Group's First Quarter 2024 Earnings Call. I'm pleased to be joined on today's call by our CEO, Peter Kern; our CFO, Julie Whalen; and our incoming CEO, Ariane Gorin.
As a reminder, our commentary today will include references to certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in our earnings release. And unless otherwise stated, any reference to expenses exclude stock-based compensation. We will also be making forward-looking statements during the call, which are predictions, projections or other statements about future events. These
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