The following is a summary of the Expedia Group, Inc. (EXPE) Q3 2024 Earnings Call Transcript:
Financial Performance:
Expedia Group reported Q3 2024 revenue of $4.1 billion, experiencing a 3% growth year-on-year, driven by strong performance in B2B, Brand Expedia, and advertising.
Gross bookings grew by 7% year-on-year, totaling $27.5 billion, with lodging bookings up by 8%.
Reported EBITDA was $1.25 billion, up 3%, with a slight EBITDA margin deleverage of approximately 16 basis points.Year-to-date free cash flow was robust at $2.3 billion, marking a 3% increase from the previous year.
Business Progress:
Expedia accelerated investment in international markets and technology, including AI improvements to enhance customer service and increase conversion rates.
Introduced new features across Brand Expedia and Vrbo, enhancing user experience and efficiency.
Enhanced loyalty programs with new benefits and expanded redemption options, improving repeat rates.
Secured new strategic B2B partnerships, including a notable new partnership with Microsoft Bing.
Opportunities:
Expansion into international markets with targeted investments, showing acceleration especially in Scandinavia with double-digit growth.
Increased focus on urban and shorter-stay markets through Vrbo, supported by the addition of nearly 1 million units previously available only on Brand Expedia.
Risks:
Soft demand experienced initially in July, followed by improvement, indicative of volatility in travel demand.
Vulnerability to weather events and macroeconomic factors demonstrated by impacts from hurricanes and unfavorable economic trends such as FX.
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