Q2 2024 Expedia Group Inc Earnings Call Transcript
Key Points
- Expedia Group Inc (EXPE) reported a 10% growth in room nights and a 6% increase in gross bookings and revenue, driven by improvements in Vrbo and strength in Brand Expedia.
- The company achieved a sequential acceleration in its B2C business, with gross bookings growing by 6% and EBITDA margins expanding by approximately 70 basis points in the first half.
- Brand Expedia showed strong performance with booked room nights up nearly 20%, and Vrbo improved significantly from its Q1 low point, exiting the quarter with modest growth.
- The One Key loyalty program has been successful, with nearly 30% of travelers redeeming OneKeyCash on Vrbo being new to the brand, indicating its effectiveness in attracting new customers.
- Expedia Group Inc (EXPE) maintained strong liquidity with $8.7 billion, driven by a robust cash balance and undrawn credit, and continued share repurchases, reflecting confidence in long-term performance.
- Expedia Group Inc (EXPE) experienced a slowdown in travel demand entering the third quarter, with a more challenging macro environment impacting growth expectations.
- The company faced pricing pressure in the air and car segments, and new pricing display regulations in California contributed to weaker-than-expected growth in July.
- There was a deceleration in the B2B segment, with growth slowing to 20%, partly due to normalization in global demand and specific challenges in the US market.
- The rollout of the One Key program has been paused internationally, which may limit its potential benefits in markets where only one brand operates at scale.
- Expedia Group Inc (EXPE) anticipates approximately 100 basis points of deleverage in third-quarter EBITDA and EBIT margins due to marketing investments in Vrbo and international markets.
Good day, everyone, and welcome to the Expedia Group Q2 2024 financial results teleconference. My name is Elliot, and I'll be your operator for today's call.
(Operator Instructions)
For opening remarks, I'll turn the call over to Senior Vice President, Corporate Development, Strategy, and Investor relations, Harshit Vaish. Please go ahead.
Good afternoon, and welcome to Expedia Group's second quarter 2024 earnings call. I'm pleased to be joined on today's call by our CEO, Ariane Gorin; and our CFO, Julie Whalen. As a reminder, our commentary today will include reference 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 excludes stock-based compensation. We will also be making forward-looking statements during the call, which are predictions, projections, or other statements about
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