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Expedia Group Reports Fourth Quarter and Full Year 2022 Results

February 9, 2023

Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the fourth quarter and full year ended December 31, 2022.

Key Highlights

  • Record full year and fourth quarter lodging bookings and lodging revenue.
  • Significant earnings growth with full year GAAP net income of $352 million, compared to a net loss of $269 million in 2021. Full year adjusted net income up over 300% versus 2021 and record Adjusted EBITDA of over $2.3 billion.
  • Full year free cash flow grew to $2.8 billion, over 70% higher than 2019.
  • Reduced debt by $2.2 billion during 2022, resulting in a significant reduction in leverage.
  • Repurchased 5.2 million shares for approximately $500 million for the year and approximately $350 million in shares in the fourth quarter 2022.

“We were pleased that we were able to deliver our most profitable year in 2022, despite the friction from transforming our business model and technology platform. While our Q4 results were negatively impacted by severe weather, demand was otherwise strong and accelerating, and has been markedly stronger since the start of the year,” said Peter Kern, Vice Chairman and CEO, Expedia Group. "We begin ‘23 with record app usage and member counts, led by Expedia US, the first of our brands to deploy new capabilities and marketing strategies. This year, we are excited to see these benefits accrue to more of our brands and geographies, driving further growth and margin expansion."

Financial Summary & Operating Metrics (In millions, except per share amounts) - Fourth Quarter 2022

 

Expedia Group, Inc.

Metric

Q4 2022

Q4 2021

Δ Y/Y

Booked room nights

70.8

59.7

19%

Stayed room nights

74.6

62.9

19%

Gross bookings

$20,511

$17,463

17%

Revenue

$2,618

$2,279

15%

Operating income

$128

$163

(21)%

Net income attributable to Expedia Group common stockholders

$177

$276

(36)%

Diluted earnings per share

$1.11

$1.70

(35)%

Adjusted EBITDA(1)

$449

$479

(6)%

Adjusted net income(1)

$196

$167

17%

Adjusted EPS(1)

$1.26

$1.06

19%

Net cash provided by (used in) operating activities

$(182)

$285

NM

Free cash flow(1)

$(359)

$142

NM

 

(1) See Definitions of Non-GAAP Measures and reconciliations of GAAP to non-GAAP measures beginning on page 13.

Financial Summary & Operating Metrics (In millions, except per share amounts) - Full Year 2022

 

Expedia Group, Inc.

Metric

2022

2021

Δ Y/Y

Booked room nights

312.0

247.5

26%

Stayed room nights

303.4

234.4

29%

Gross bookings

$95,049

$72,425

31%

Revenue

$11,667

$8,598

36%

Operating income

$1,085

$186

484%

Net income (loss) attributable to Expedia Group common stockholders

$352

$(269)

NM

Diluted earnings (loss) per share

$2.17

$(1.80)

NM

Adjusted EBITDA(1)

$2,349

$1,477

59%

Adjusted net income(1)

$1,072

$257

316%

Adjusted EPS(1)

$6.79

$1.65

312%

Net cash provided by operating activities

$3,440

$3,748

(8)%

Free cash flow(1)

$2,778

$3,075

(10)%

 

(1)See Definitions of Non-GAAP Measures and reconciliations of GAAP to non-GAAP measures beginning on page 13.

Discussion of Results

The results for Expedia Group, Inc. ("Expedia Group" or "the Company") include Brand Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, trivago®, HomeAway®, Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia Group™ Media Solutions, CarRentals.com™ and Expedia® Cruises™. Results include the related international points of sale for all brands. In April 2021, we completed the sale of Classic Vacations®, and in November 2021 we completed the sale of Egencia®, which are included in results through the date of their respective sales. All amounts shown are in U.S. dollars.

Gross Bookings & Revenue

Gross Bookings & Revenue by Segment ($ millions)

 

 

Gross Bookings

 

Fourth Quarter

 

 

Full Year

 

 

2022

 

 

 

2021

 

 

Δ%

 

 

 

2022

 

 

 

2021

 

 

Δ%

Gross Bookings

$

20,511

 

 

$

17,463

 

 

17

%

 

 

$

95,049

 

 

$

72,425

 

 

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

Fourth Quarter

 

 

Full Year

 

 

2022

 

 

 

2021

 

 

Δ%

 

 

 

2022

 

 

 

2021

 

 

Δ%

Retail

$

1,874

 

 

$

1,730

 

 

8

%

 

 

$

8,741

 

 

$

6,821

 

 

28

%

B2B

 

676

 

 

 

481

 

 

41

%

 

 

 

2,546

 

 

 

1,460

 

 

74

%

Expedia Group (excluding trivago)

$

2,550

 

 

$

2,211

 

 

15

%

 

 

$

11,287

 

 

$

8,281

 

 

36

%

trivago

 

106

 

 

 

99

 

 

7

%

 

 

 

561

 

 

 

423

 

 

33

%

Intercompany eliminations

 

(38

)

 

 

(31

)

 

24

%

 

 

 

(181

)

 

 

(106

)

 

71

%

Total

$

2,618

 

 

$

2,279

 

 

15

%

 

 

$

11,667

 

 

$

8,598

 

 

36

%

For the fourth quarter of 2022, total gross bookings increased 17%, compared to the fourth quarter of 2021, as gross bookings for lodging and air grew. Total revenue increased 15%, compared to the fourth quarter of 2021, driven by growth across the company.

Product & Services Detail

Revenue by Service Type ($ millions)

 

 

Fourth Quarter

 

 

Full Year

 

 

2022

 

 

2021

 

Δ%

 

 

 

2022

 

 

2021

 

Δ%

Lodging

$

2,014

 

$

1,713

 

18

%

 

 

$

8,905

 

$

6,449

 

38

%

Air

 

93

 

 

65

 

44

%

 

 

 

362

 

 

254

 

43

%

Advertising and media

 

176

 

 

152

 

15

%

 

 

 

777

 

 

603

 

29

%

Other

 

335

 

 

349

 

(4

)%

 

 

 

1,623

 

 

1,292

 

25

%

Total

$

2,618

 

$

2,279

 

15

%

 

 

$

11,667

 

$

8,598

 

36

%

As a percentage of total revenue in the fourth quarter of 2022, lodging accounted for 77%, advertising and media accounted for 7%, air accounted for 4%, and all other revenues accounted for the remaining 12%.

Lodging revenue increased 18% in the fourth quarter of 2022, compared to the fourth quarter of 2021, driven by a significant increase of 19% in room nights stayed and average daily rate ("ADR") growth of 3%.

Air revenue increased 44% in the fourth quarter of 2022, compared to the fourth quarter of 2021, driven by an increase of 47% in revenue per ticket.

Advertising and media revenue increased 15% in the fourth quarter of 2022, compared to the fourth quarter of 2021, due to growth in Expedia Group Media Solutions.

Other revenue decreased in the fourth quarter of 2022, compared to the fourth quarter of 2021, due to declines in car revenue.

Costs and Expenses ($ millions)

 

Costs and Expenses

 

 

As a % of Revenue

 

Fourth Quarter

 

 

Fourth Quarter

 

 

2022

 

 

2021

 

Δ%

 

 

2022

 

 

2021

 

 

Δ (bps)

Generally Accepted Accounting Principles (GAAP) Expenses - Expedia Group

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

$

412

 

$

395

 

4

%

 

 

15.7

%

 

17.3

%

 

(158

)

Selling and marketing - direct

 

1,199

 

 

878

 

37

%

 

 

45.8

%

 

38.5

%

 

726

 

Selling and marketing - indirect

 

177

 

 

166

 

6

%

 

 

6.8

%

 

7.3

%

 

(53

)

Selling and marketing

 

1,376

 

 

1,044

 

32

%

 

 

52.6

%

 

45.8

%

 

673

 

Technology and content

 

317

 

 

274

 

16

%

 

 

12.1

%

 

12.0

%

 

11

 

General and administrative

 

186

 

 

183

 

1

%

 

 

7.1

%

 

8.0

%

 

(96

)

Total GAAP costs and expenses

$

2,291

 

$

1,896

 

21

%

 

 

87.5

%

 

83.2

%

 

429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Expenses - Expedia Group

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue*

$

408

 

$

390

 

5

%

 

 

15.6

%

 

17.1

%

 

(154

)

Selling and marketing - direct

 

1,199

 

 

878

 

37

%

 

 

45.8

%

 

38.5

%

 

726

 

Selling and marketing - indirect*

 

160

 

 

148

 

8

%

 

 

6.1

%

 

6.5

%

 

(39

)

Selling and marketing*

 

1,359

 

 

1,026

 

32

%

 

 

51.9

%

 

45.0

%

 

687

 

Technology and content*

 

288

 

 

248

 

17

%

 

 

11.0

%

 

10.8

%

 

17

 

General and administrative*

 

142

 

 

133

 

6

%

 

 

5.4

%

 

5.9

%

 

(45

)

Total adjusted costs and expenses

$

2,197

 

$

1,797

 

22

%

 

 

83.9

%

 

78.9

%

 

504

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total overhead expenses**

 

590

 

 

529

 

12

%

 

 

22.5

%

 

23.2

%

 

(68

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Expenses - Expedia Group (excluding trivago)***

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue*

$

404

 

$

387

 

5

%

 

 

15.8

%

 

17.5

%

 

(164

)

Selling and marketing*

 

1,335

 

 

1,001

 

33

%

 

 

52.3

%

 

45.3

%

 

706

 

Technology and content*

 

277

 

 

236

 

18

%

 

 

10.9

%

 

10.6

%

 

24

 

General and administrative*

 

135

 

 

125

 

7

%

 

 

5.3

%

 

5.7

%

 

(43

)

Total adjusted costs and expenses excluding trivago

$

2,151

 

$

1,749

 

23

%

 

 

84.3

%

 

79.1

%

 

524

 

 

Note: Some numbers may not add due to rounding.

*Adjusted expenses are non-GAAP measures. See pages 13-20 herein for a description and reconciliation to the corresponding GAAP measures.

**Total overhead expenses is the sum of adjusted expenses for Selling and marketing - indirect, Technology and content, and General and administrative.

***Expedia Group (excluding trivago) figures exclude both trivago costs and expenses and trivago revenue when calculating 'As a % of Revenue.'

Cost of Revenue

  • For the fourth quarter of 2022, total GAAP and adjusted cost of revenue increased 4% and 5% respectively, primarily due to an increase in merchant fees as well as cloud costs.

Selling and Marketing

  • For the fourth quarter of 2022, total GAAP and adjusted selling and marketing expense both increased 32% primarily driven by a $321 million increase in direct costs primarily due to an increase in B2B partner commissions and increased spend in Retail marketing channels. Total GAAP and adjusted indirect marketing expenses increased 6% and 8%, respectively.

Technology and Content

  • For the fourth quarter of 2022, total GAAP and adjusted technology and content expense increased 16% and 17%, respectively, primarily due to an increase in personnel and related costs as a result of the increase in headcount.

General and Administrative

  • For the fourth quarter of 2022, total GAAP and adjusted general and administrative expense increased 1% and 6%, respectively. The increase in the adjusted figure was driven primarily by an increase in personnel costs related to increase in headcount while the GAAP figure was tempered by a reduction in stock-based compensation.

 

Costs and Expenses

 

 

As a % of Revenue

 

Full Year

 

 

Full Year

 

 

2022

 

 

2021

 

Δ%

 

 

2022

 

 

2021

 

 

Δ (bps)

Generally Accepted Accounting Principles (GAAP) Expenses - Expedia Group

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

$

1,657

 

$

1,522

 

9

%

 

 

14.2

%

 

17.7

%

 

(349

)

Selling and marketing - direct

 

5,428

 

 

3,499

 

55

%

 

 

46.5

%

 

40.7

%

 

583

 

Selling and marketing - indirect

 

672

 

 

722

 

(7

)%

 

 

5.8

%

 

8.4

%

 

(264

)

Selling and marketing

 

6,100

 

 

4,221

 

45

%

 

 

52.3

%

 

49.1

%

 

319

 

Technology and content

 

1,181

 

 

1,074

 

10

%

 

 

10.1

%

 

12.5

%

 

(237

)

General and administrative

 

748

 

 

705

 

6

%

 

 

6.4

%

 

8.2

%

 

(180

)

Total GAAP costs and expenses

$

9,686

 

$

7,522

 

29

%

 

 

83.0

%

 

87.5

%

 

(447

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Expenses - Expedia Group

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue*

$

1,643

 

$

1,500

 

10

%

 

 

14.1

%

 

17.4

%

 

(336

)

Selling and marketing - direct

 

5,428

 

 

3,499

 

55

%

 

 

46.5

%

 

40.7

%

 

583

 

Selling and marketing - indirect*

 

605

 

 

626

 

(3

)%

 

 

5.2

%

 

7.3

%

 

(209

)

Selling and marketing*

 

6,033

 

 

4,125

 

46

%

 

 

51.7

%

 

48.0

%

 

374

 

Technology and content*

 

1,070

 

 

957

 

12

%

 

 

9.2

%

 

11.1

%

 

(195

)

General and administrative*

 

566

 

 

522

 

8

%

 

 

4.8

%

 

6.1

%

 

(124

)

Total adjusted costs and expenses

$

9,312

 

$

7,104

 

31

%

 

 

79.8

%

 

82.6

%

 

(282

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total overhead expenses**

 

2,241

 

 

2,105

 

6

%

 

 

19.2

%

 

24.5

%

 

(529

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Expenses - Expedia Group (excluding trivago)***

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue*

$

1,626

 

$

1,484

 

10

%

 

 

14.4

%

 

17.9

%

 

(350

)

Selling and marketing*

 

5,861

 

 

3,942

 

49

%

 

 

51.9

%

 

47.6

%

 

433

 

Technology and content*

 

1,023

 

 

908

 

13

%

 

 

9.1

%

 

11.0

%

 

(190

)

General and administrative*

 

536

 

 

493

 

8

%

 

 

4.7

%

 

6.0

%

 

(123

)

Total adjusted costs and expenses excluding trivago

$

9,046

 

$

6,827

 

33

%

 

 

80.1

%

 

82.4

%

 

(230

)

 

*Adjusted expenses are non-GAAP measures. See pages 13-20 herein for a description and reconciliation to the corresponding GAAP measures.

**Total overhead expenses is the sum of adjusted expenses for Selling and marketing - indirect, Technology and content, and General and administrative.

***Expedia Group (excluding trivago) figures exclude both trivago costs and expenses and trivago revenue when calculating 'As a % of Revenue.'

Net Income (Loss) Attributable to Expedia Group and Adjusted EBITDA*

Adjusted EBITDA by Segment ($ millions)

 

 

Fourth Quarter

 

 

Full Year

 

 

2022

 

 

 

2021

 

 

Δ%

 

 

 

2022

 

 

 

2021

 

 

Δ%

Retail

$

411

 

 

$

481

 

 

(15

)%

 

 

$

2,124

 

 

$

1,782

 

 

19

%

B2B

 

142

 

 

 

97

 

 

47

%

 

 

 

599

 

 

 

110

 

 

445

%

Unallocated overhead costs

 

(125

)

 

 

(119

)

 

5

%

 

 

 

(487

)

 

 

(454

)

 

7

%

Expedia Group (excluding trivago)

$

428

 

 

$

459

 

 

(7

)%

 

 

$

2,236

 

 

$

1,438

 

 

55

%

trivago(1)

 

21

 

 

 

20

 

 

11

%

 

 

 

113

 

 

 

39

 

 

191

%

Total Adjusted EBITDA

$

449

 

 

$

479

 

 

(6

)%

 

 

$

2,349

 

 

$

1,477

 

 

59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Expedia Group common stockholders(2)

$

177

 

 

$

276

 

 

(36

)%

 

 

$

352

 

 

$

(269

)

 

NM

 

 

(1) trivago is a separately listed company on the Nasdaq Global Select Market and, therefore, is subject to its own reporting and filing requirements which could result in possible differences that are not expected to be material to Expedia Group.

( 2) Expedia Group does not calculate or report net income (loss) by segment.

* Adjusted EBITDA is a non-GAAP measure. See pages 13-20 herein for a description and reconciliation to the corresponding GAAP measures.

Note: Some numbers may not add due to rounding.

Depreciation and Amortization

Depreciation and amortization was flat in the fourth quarter of 2022 as compared to the fourth quarter of 2021.

Interest and Other

Consolidated interest income increased $23 million in the fourth quarter of 2022 as a result of higher rates of return. Consolidated interest expense decreased $24 million in the fourth quarter of 2022 primarily as a result of lower interest related to notes being extinguished in the first three quarters of 2022.

Consolidated other, net was a gain of $84 million in the fourth quarter of 2022 primarily driven by an increase in the market value of our minority equity investment in Global Business Travel Group.

Income Taxes

The GAAP effective tax rate was 4% and 36% in the fourth quarter and full year 2022, respectively compared to 16% and 140% in the prior year periods. The change in effective tax rate was primarily due to the change in pretax income.

The effective tax rate on pretax adjusted net income was 15% and 21% in the fourth quarter and full year 2022, respectively, compared to 22% and 16% in the prior year periods. The change in effective tax rate was primarily due to the change in pretax adjusted net income.

Balance Sheet, Cash Flows and Capitalization

For the three months ended December 31, 2022, consolidated net cash used in operating activities was $182 million. Consolidated free cash flow used totaled $359 million, a decline of $501 million compared to the prior year primarily due to a decrease in cash provided by operating activities, driven by changes in working capital.

Cash, cash equivalents and short-term investments totaled $4.1 billion at December 31, 2022 compared to $4.6 billion at September 30, 2022.

Restricted cash and cash equivalents, which primarily consist of traveler deposits for Vrbo bookings, was $1.8 billion at December 31, 2022 and at September 30, 2022. Prepaid expenses and other current assets was $774 million at December 31, 2022 compared to $799 million at September 30, 2022. Deferred merchant bookings totaled approximately $7.2 billion at December 31, 2022, including approximately $961 million in deferred loyalty rewards, compared to $7.5 billion at September 30, 2022, including approximately $915 million in deferred loyalty rewards.

At December 31, 2022, Expedia Group had stock-based awards outstanding representing approximately 11 million shares of Expedia Group common stock, consisting of options to purchase approximately 4 million common shares with a $135.93 weighted average exercise price and weighted average remaining life of 3.5 years, and approximately 7 million restricted stock units.

During the quarter ended December 31, 2022, Expedia Group repurchased approximately 3.7 million shares of Expedia Group common stock for an aggregate purchase price of $347 million excluding transaction costs (an average of $94.44 per share). As of December, 2022, there were approximately 18 million shares remaining under prior Board of Directors share repurchase authorizations.

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

(Unaudited)

 

 

Three months ended

December 31,

 

Year ended

December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Revenue

$

2,618

 

 

$

2,279

 

 

$

11,667

 

 

$

8,598

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue (exclusive of depreciation and amortization shown separately below) (1)

 

412

 

 

 

395

 

 

 

1,657

 

 

 

1,522

 

Selling and marketing (1)

 

1,376

 

 

 

1,044

 

 

 

6,100

 

 

 

4,221

 

Technology and content (1)

 

317

 

 

 

274

 

 

 

1,181

 

 

 

1,074

 

General and administrative (1)

 

186

 

 

 

183

 

 

 

748

 

 

 

705

 

Depreciation and amortization

 

199

 

 

 

199

 

 

 

792

 

 

 

814

 

Impairment of goodwill

 

 

 

 

14

 

 

 

 

 

 

14

 

Intangible and other long-term asset impairment

 

 

 

 

6

 

 

 

81

 

 

 

6

 

Legal reserves, occupancy tax and other

 

 

 

 

 

 

 

23

 

 

 

1

 

Restructuring and related reorganization charges

 

 

 

 

1

 

 

 

 

 

 

55

 

Operating income

 

128

 

 

 

163

 

 

 

1,085

 

 

 

186

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

27

 

 

 

4

 

 

 

60

 

 

 

9

 

Interest expense

 

(60

)

 

 

(84

)

 

 

(277

)

 

 

(351

)

Gain (loss) on debt extinguishment, net

 

 

 

 

 

 

 

49

 

 

 

(280

)

Gain on sale of business, net

 

4

 

 

 

401

 

 

 

6

 

 

 

456

 

Other, net

 

84

 

 

 

(13

)

 

 

(385

)

 

 

(58

)

Total other income (expense), net

 

55

 

 

 

308

 

 

 

(547

)

 

 

(224

)

Income (loss) before income taxes

 

183

 

 

 

471

 

 

 

538

 

 

 

(38

)

Provision for income taxes

 

(8

)

 

 

(76

)

 

 

(195

)

 

 

53

 

Net income

 

175

 

 

 

395

 

 

 

343

 

 

 

15

 

Net (income) loss attributable to non-controlling interests

 

2

 

 

 

(9

)

 

 

9

 

 

 

(3

)

Net income attributable to Expedia Group, Inc.

 

177

 

 

 

386

 

 

 

352

 

 

 

12

 

Preferred stock dividend

 

 

 

 

(3

)

 

 

 

 

 

(67

)

Loss on redemption of preferred stock

 

 

 

 

(107

)

 

 

 

 

 

(214

)

Net income (loss) attributable to Expedia Group, Inc. common stockholders

$

177

 

 

$

276

 

 

$

352

 

 

$

(269

)

 

 

 

 

 

 

 

 

Earnings (loss) per share attributable to Expedia Group, Inc. available to common stockholders:

 

 

 

 

 

 

 

Basic

$

1.14

 

 

$

1.80

 

 

$

2.24

 

 

$

(1.80

)

Diluted

 

1.11

 

 

 

1.70

 

 

 

2.17

 

 

 

(1.80

)

Shares used in computing earnings (loss) per share (000's):

 

 

 

 

 

 

 

Basic

 

155,404

 

 

 

153,537

 

 

 

156,672

 

 

 

149,734

 

Diluted

 

159,532

 

 

 

161,920

 

 

 

161,751

 

 

 

149,734

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation as follows:

 

 

 

 

 

 

 

Cost of revenue

$

4

 

 

$

5

 

 

$

14

 

 

$

22

 

Selling and marketing

 

17

 

 

 

18

 

 

 

67

 

 

 

96

 

Technology and content

 

29

 

 

 

26

 

 

 

111

 

 

 

117

 

General and administrative

 

44

 

 

 

50

 

 

 

182

 

 

 

183

 

EXPEDIA GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares which are reflected in thousands and par value)

 

 

December 31, 2022

 

December 31, 2021

 

(unaudited)

 

 

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

4,096

 

 

$

4,111

 

Restricted cash and cash equivalents

 

1,755

 

 

 

1,694

 

Short-term investments

 

48

 

 

 

200

 

Accounts receivable, net of allowance of $40 and $65

 

2,078

 

 

 

1,264

 

Income taxes receivable

 

40

 

 

 

85

 

Prepaid expenses and other current assets

 

774

 

 

 

827

 

Total current assets

 

8,791

 

 

 

8,181

 

Property and equipment, net

 

2,210

 

 

 

2,180

 

Operating lease right-of-use assets

 

363

 

 

 

407

 

Long-term investments and other assets

 

1,184

 

 

 

1,450

 

Deferred income taxes

 

661

 

 

 

766

 

Intangible assets, net

 

1,209

 

 

 

1,393

 

Goodwill

 

7,143

 

 

 

7,171

 

TOTAL ASSETS

$

21,561

 

 

$

21,548

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable, merchant

$

1,709

 

 

$

1,333

 

Accounts payable, other

 

947

 

 

 

688

 

Deferred merchant bookings

 

7,151

 

 

 

5,688

 

Deferred revenue

 

163

 

 

 

166

 

Income taxes payable

 

21

 

 

 

16

 

Accrued expenses and other current liabilities

 

787

 

 

 

824

 

Current maturities of long-term debt

 

 

 

 

735

 

Total current liabilities

 

10,778

 

 

 

9,450

 

Long-term debt, excluding current maturities

 

6,240

 

 

 

7,715

 

Deferred income taxes

 

52

 

 

 

58

 

Operating lease liabilities

 

312

 

 

 

360

 

Other long-term liabilities

 

451

 

 

 

413

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Common stock: $.0001 par value; Authorized shares: 1,600,000

 

 

 

 

 

Shares issued: 278,264 and 274,661; Shares outstanding: 147,757 and 150,125

 

 

 

Class B common stock: $.0001 par value; Authorized shares: 400,000

 

 

 

 

 

Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523

 

 

 

Additional paid-in capital

 

14,795

 

 

 

14,229

 

Treasury stock - Common stock and Class B, at cost; Shares 137,783 and 131,813

 

(10,869

)

 

 

(10,262

)

Retained earnings (deficit)

 

(1,409

)

 

 

(1,761

)

Accumulated other comprehensive income (loss)

 

(234

)

 

 

(149

)

Total Expedia Group, Inc. stockholders’ equity

 

2,283

 

 

 

2,057

 

Non-redeemable non-controlling interests

 

1,445

 

 

 

1,495

 

Total stockholders’ equity

 

3,728

 

 

 

3,552

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

21,561

 

 

$

21,548

 

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

Year ended

December 31,

 

 

2022

 

 

 

2021

 

Operating activities:

 

 

 

Net income

$

343

 

 

$

15

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation of property and equipment, including internal-use software and website development

 

704

 

 

 

715

 

Amortization of stock-based compensation

 

374

 

 

 

418

 

Amortization of intangible assets

 

88

 

 

 

99

 

Impairment of goodwill, intangible and other long-term assets

 

81

 

 

 

20

 

Deferred income taxes

 

70

 

 

 

(145

)

Foreign exchange loss on cash, restricted cash and short-term investments, net

 

128

 

 

 

105

 

Realized loss on foreign currency forwards, net

 

78

 

 

 

16

 

Loss on minority equity investments, net

 

345

 

 

 

29

 

(Gain) loss on debt extinguishment, net

 

(49

)

 

 

280

 

Gain on sale of business, net

 

(6

)

 

 

(456

)

Provision for credit losses and other, net

 

23

 

 

 

32

 

Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:

 

 

 

Accounts receivable

 

(838

)

 

 

(721

)

Prepaid expenses and other assets

 

55

 

 

 

(224

)

Accounts payable, merchant

 

375

 

 

 

777

 

Accounts payable, other, accrued expenses and other liabilities

 

196

 

 

 

138

 

Tax payable/receivable, net

 

11

 

 

 

10

 

Deferred merchant bookings

 

1,464

 

 

 

2,642

 

Deferred revenue

 

(2

)

 

 

(2

)

Net cash provided by operating activities

 

3,440

 

 

 

3,748

 

Investing activities:

 

 

 

Capital expenditures, including internal-use software and website development

 

(662

)

 

 

(673

)

Purchases of investments

 

(60

)

 

 

(201

)

Sales and maturities of investments

 

205

 

 

 

23

 

Cash and restricted cash divested from sale of business, net of proceeds

 

4

 

 

 

(60

)

Proceeds from initial exchange of cross-currency interest rate swaps

 

337

 

 

 

 

Payments for initial exchange of cross-currency interest rate swaps

 

(337

)

 

 

 

Other, net

 

(67

)

 

 

(20

)

Net cash used in investing activities

 

(580

)

 

 

(931

)

Financing activities:

 

 

 

Proceeds from issuance of long-term debt, net of issuance costs

 

 

 

 

1,964

 

Payment of long-term debt

 

(2,141

)

 

 

(1,706

)

Debt extinguishment costs

 

(22

)

 

 

(258

)

Redemption of preferred stock

 

 

 

 

(1,236

)

Purchases of treasury stock

 

(607

)

 

 

(165

)

Payment of dividends to preferred stockholders

 

 

 

 

(67

)

Proceeds from exercise of equity awards and employee stock purchase plan

 

131

 

 

 

503

 

Other, net

 

15

 

 

 

(8

)

Net cash used in financing activities

 

(2,624

)

 

 

(973

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents

 

(190

)

 

 

(177

)

Net increase in cash, cash equivalents and restricted cash and cash equivalents

 

46

 

 

 

1,667

 

Cash, cash equivalents and restricted cash and cash equivalents at beginning of year

 

5,805

 

 

 

4,138

 

Cash, cash equivalents and restricted cash and cash equivalents at end of year

$

5,851

 

 

$

5,805

 

Supplemental cash flow information

 

 

 

Cash paid for interest

$

291

 

 

$

342

 

Income tax payments, net

 

102

 

 

 

74

 

Expedia Group, Inc.
Trended Metrics
(All figures in millions)

The supplemental metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition, methodology and appropriateness of any of our supplemental metrics are subject to removal and/or change, and such changes could be material. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information filed with the SEC and the financial statements in our most recent earnings release.

 

 

 

2019

 

 

 

2020

 

 

 

2021

 

 

 

2022

 

 

 

Full Year

 

 

 

Y/Y Growth

 

 

 

 

 

Q1

Q2

Q3

Q4

 

 

 

Q1

Q2

Q3

Q4

 

 

 

Q1

Q2

Q3

Q4

 

 

 

Q1

Q2

Q3

Q4

 

 

 

 

2021

 

 

2022

 

 

 

 

Q422

2022

 

 

 

Gross bookings by business model

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

$

17,352

 

$

16,112

 

$

14,585

 

$

11,956

 

 

 

 

$

9,823

 

$

1,363

 

$

3,530

 

$

3,405

 

 

 

 

$

6,737

 

$

10,362

 

$

8,855

 

$

8,325

 

 

 

 

$

11,346

 

$

12,773

 

$

10,904

 

$

9,469

 

 

 

 

$

34,279

 

$

44,492

 

 

 

 

14

%

30

%

 

 

Merchant

 

 

 

12,057

 

 

12,180

 

 

12,342

 

 

11,289

 

 

 

 

 

8,062

 

 

1,350

 

 

5,101

 

 

4,162

 

 

 

 

 

8,685

 

 

10,453

 

 

9,870

 

 

9,138

 

 

 

 

 

13,066

 

 

13,366

 

 

13,083

 

 

11,042

 

 

 

 

 

38,146

 

 

50,557

 

 

 

 

21

%

33

%

 

 

Total

 

 

$

29,409

 

$

28,292

 

$

26,927

 

$

23,245

 

 

 

 

$

17,885

 

$

2,713

 

$

8,631

 

$

7,567

 

 

 

 

$

15,422

 

$

20,815

 

$

18,725

 

$

17,463

 

 

 

 

$

24,412

 

$

26,139

 

$

23,987

 

$

20,511

 

 

 

 

$

72,425

 

$

95,049

 

 

 

 

17

%

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

$

1,901

 

$

2,333

 

$

2,613

 

$

1,961

 

 

 

 

$

1,582

 

$

463

 

$

1,246

 

$

702

 

 

 

 

$

1,025

 

$

1,715

 

$

2,351

 

$

1,730

 

 

 

 

$

1,740

 

$

2,420

 

$

2,707

 

$

1,874

 

 

 

 

$

6,821

 

$

8,741

 

 

 

 

8

%

28

%

 

 

B2B

 

 

 

556

 

 

657

 

 

731

 

 

635

 

 

 

 

 

485

 

 

68

 

 

203

 

 

186

 

 

 

 

 

184

 

 

305

 

 

490

 

 

481

 

 

 

 

 

432

 

 

650

 

 

788

 

 

676

 

 

 

 

 

1,460

 

 

2,546

 

 

 

 

41

%

74

%

 

 

Corporate (Bodybuilding.com)

 

 

 

 

 

 

 

24

 

 

34

 

 

 

 

 

39

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NM

 

NM

 

 

 

Expedia Group (excluding trivago)

 

 

$

2,457

 

$

2,990

 

$

3,368

 

$

2,630

 

 

 

 

$

2,106

 

$

551

 

$

1,449

 

$

888

 

 

 

 

$

1,209

 

$

2,020

 

$

2,841

 

$

2,211

 

 

 

 

$

2,172

 

$

3,070

 

$

3,495

 

$

2,550

 

 

 

 

$

8,281

 

$

11,287

 

 

 

 

15

%

36

%

 

 

trivago

 

 

 

237

 

 

251

 

 

279

 

 

171

 

 

 

 

 

154

 

 

18

 

 

70

 

 

38

 

 

 

 

 

46

 

 

115

 

 

163

 

 

99

 

 

 

 

 

116

 

 

154

 

 

185

 

 

106

 

 

 

 

 

423

 

 

561

 

 

 

 

7

%

33

%

 

 

Intercompany eliminations

 

 

 

(85

)

 

(88

)

 

(89

)

 

(54

)

 

 

 

 

(51

)

 

(3

)

 

(15

)

 

(6

)

 

 

 

 

(9

)

 

(24

)

 

(42

)

 

(31

)

 

 

 

 

(39

)

 

(43

)

 

(61

)

 

(38

)

 

 

 

 

(106

)

 

(181

)

 

 

 

24

%

71

%

 

 

Total

 

 

$

2,609

 

$

3,153

 

$

3,558

 

$

2,747

 

 

 

 

$

2,209

 

$

566

 

$

1,504

 

$

920

 

 

 

 

$

1,246

 

$

2,111

 

$

2,962

 

$

2,279

 

 

 

 

$

2,249

 

$

3,181

 

$

3,619

 

$

2,618

 

 

 

 

$

8,598

 

$

11,667

 

 

 

 

15

%

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by geography

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. points of sale

 

 

$

1,476

 

$

1,838

 

$

1,982

 

$

1,573

 

 

 

 

$

1,317

 

$

463

 

$

1,033

 

$

698

 

 

 

 

$

1,001

 

$

1,736

 

$

2,177

 

$

1,655

 

 

 

 

$

1,656

 

$

2,208

 

$

2,358

 

$

1,717

 

 

 

 

$

6,569

 

$

7,939

 

 

 

 

4

%

21

%

 

 

Non-U.S. points of sale

 

 

 

1,133

 

 

1,315

 

 

1,576

 

 

1,174

 

 

 

 

 

892

 

 

103

 

 

471

 

 

222

 

 

 

 

 

245

 

 

375

 

 

785

 

 

624

 

 

 

 

 

593

 

 

973

 

 

1,261

 

 

901

 

 

 

 

 

2,029

 

 

3,728

 

 

 

 

44

%

84

%

 

 

Total

 

 

$

2,609

 

$

3,153

 

$

3,558

 

$

2,747

 

 

 

 

$

2,209

 

$

566

 

$

1,504

 

$

920

 

 

 

 

$

1,246

 

$

2,111

 

$

2,962

 

$

2,279

 

 

 

 

$

2,249

 

$

3,181

 

$

3,619

 

$

2,618

 

 

 

 

$

8,598

 

$

11,667

 

 

 

 

15

%

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by business model

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

$

842

 

$

1,047

 

$

1,177

 

$

816

 

 

 

 

$

562

 

$

105

 

$

329

 

$

271

 

 

 

 

$

323

 

$

573

 

$

800

 

$

611

 

 

 

 

$

566

 

$

808

 

$

935

 

$

685

 

 

 

 

$

2,307

 

$

2,994

 

 

 

 

12

%

30

%

 

 

Merchant

 

 

 

1,435

 

 

1,758

 

 

1,980

 

 

1,590

 

 

 

 

 

1,340

 

 

368

 

 

1,032

 

 

521

 

 

 

 

 

796

 

 

1,338

 

 

1,923

 

 

1,480

 

 

 

 

 

1,485

 

 

2,125

 

 

2,427

 

 

1,725

 

 

 

 

 

5,537

 

 

7,762

 

 

 

 

17

%

40

%

 

 

Advertising & media and other

 

 

 

332

 

 

348

 

 

401

 

 

341

 

 

 

 

 

307

 

 

93

 

 

143

 

 

128

 

 

 

 

 

127

 

 

200

 

 

239

 

 

188

 

 

 

 

 

198

 

 

248

 

 

257

 

 

208

 

 

 

 

 

754

 

 

911

 

 

 

 

10

%

21

%

 

 

Total

 

 

$

2,609

 

$

3,153

 

$

3,558

 

$

2,747

 

 

 

 

$

2,209

 

$

566

 

$

1,504

 

$

920

 

 

 

 

$

1,246

 

$

2,111

 

$

2,962

 

$

2,279

 

 

 

 

$

2,249

 

$

3,181

 

$

3,619

 

$

2,618

 

 

 

 

$

8,598

 

$

11,667

 

 

 

 

15

%

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

$

208

 

$

561

 

$

889

 

$

513

 

 

 

 

$

36

 

$

(191

)

$

440

 

$

13

 

 

 

 

$

106

 

$

316

 

$

879

 

$

481

 

 

 

 

$

188

 

$

582

 

$

943

 

$

411

 

 

 

 

$

1,782

 

$

2,124

 

 

 

 

(15

)%

19

%

 

 

B2B

 

 

 

79

 

 

135

 

 

155

 

 

101

 

 

 

 

 

32

 

 

(123

)

 

(47

)

 

(52

)

 

 

 

 

(57

)

 

(4

)

 

74

 

 

97

 

 

 

 

 

80

 

 

156

 

 

221

 

 

142

 

 

 

 

 

110

 

 

599

 

 

 

 

47

%

445

%

 

 

Unallocated overhead costs

 

 

 

(135

)

 

(148

)

 

(144

)

 

(165

)

 

 

 

 

(143

)

 

(106

)

 

(96

)

 

(117

)

 

 

 

 

(103

)

 

(116

)

 

(116

)

 

(119

)

 

 

 

 

(120

)

 

(123

)

 

(119

)

 

(125

)

 

 

 

 

(454

)

 

(487

)

 

 

 

5

%

7

%

 

 

Expedia Group (excluding trivago)

 

 

$

152

 

$

548

 

$

900

 

$

449

 

 

 

 

$

(75

)

$

(420

)

$

297

 

$

(156

)

 

 

 

$

(54

)

$

196

 

$

837

 

$

459

 

 

 

 

$

148

 

$

615

 

$

1,045

 

$

428

 

 

 

 

$

1,438

 

$

2,236

 

 

 

 

(7

)%

55

%

 

 

trivago

 

 

 

24

 

 

20

 

 

12

 

 

29

 

 

 

 

 

(1

)

 

(16

)

 

7

 

 

(4

)

 

 

 

 

(4

)

 

5

 

 

18

 

 

20

 

 

 

 

 

25

 

 

33

 

 

34

 

 

21

 

 

 

 

 

39

 

 

113

 

 

 

 

11

%

191

%

 

 

Total

 

 

$

176

 

$

568

 

$

912

 

$

478

 

 

 

 

$

(76

)

$

(436

)

$

304

 

$

(160

)

 

 

 

$

(58

)

$

201

 

$

855

 

$

479

 

 

 

 

$

173

 

$

648

 

$

1,079

 

$

449

 

 

 

 

$

1,477

 

$

2,349

 

 

 

 

(6

)%

59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Expedia Group common stockholders

 

 

$

(103

)

$

183

 

$

409

 

$

76

 

 

 

 

$

(1,301

)

$

(753

)

$

(221

)

$

(412

)

 

 

 

$

(606

)

$

(301

)

$

362

 

$

276

 

 

 

 

$

(122

)

$

(185

)

$

482

 

$

177

 

 

 

 

$

(269

)

$

352

 

 

 

 

(36

)%

NM

 

 

 

 

Worldwide lodging (merchant & agency)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Booked room nights

 

 

 

103.9

 

 

100.8

 

 

101.3

 

 

86.3

 

 

 

 

 

58.5

 

 

12.2

 

 

41.1

 

 

33.3

 

 

 

 

 

54.0

 

 

68.4

 

 

65.4

 

 

59.7

 

 

 

 

 

77.0

 

 

82.5

 

 

81.6

 

 

70.8

 

 

 

 

 

247.5

 

 

312.0

 

 

 

 

 

 

 

 

Booked room night growth

 

 

 

9

%

 

10

%

 

11

%

 

9

%

 

 

 

 

(44

)%

 

(88

)%

 

(59

)%

 

(61

)%

 

 

 

 

(8

)%

 

462

%

 

59

%

 

79

%

 

 

 

 

43

%

 

21

%

 

25

%

 

19

%

 

 

 

 

71

%

 

26

%

 

 

 

 

 

 

 

Booked ADR growth

 

 

 

(2

)%

 

(1

)%

 

%

 

%

 

 

 

 

(2

)%

 

(14

)%

 

2

%

 

4

%

 

 

 

 

34

%

 

49

%

 

21

%

 

23

%

 

 

 

 

4

%

 

3

%

 

5

%

 

(1

)%

 

 

 

 

28

%

 

3

%

 

 

 

 

 

 

 

Stayed room nights

 

 

 

80.8

 

 

100.1

 

 

116.5

 

 

91.6

 

 

 

 

 

69.4

 

 

19.2

 

 

48.8

 

 

36.1

 

 

 

 

 

37.1

 

 

56.6

 

 

77.8

 

 

62.9

 

 

 

 

 

56.5

 

 

79.1

 

 

93.2

 

 

74.6

 

 

 

 

 

234.4

 

 

303.4

 

 

 

 

 

 

 

 

Stayed room night growth

 

 

 

9

%

 

12

%

 

11

%

 

11

%

 

 

 

 

(14

)%

 

(81

)%

 

(58

)%

 

(61

)%

 

 

 

 

(47

)%

 

196

%

 

59

%

 

74

%

 

 

 

 

52

%

 

40

%

 

20

%

 

19

%

 

 

 

 

35

%

 

29

%

 

 

 

 

 

 

 

Stayed ADR growth

 

 

 

(1

)%

 

%

 

(1

)%

 

%

 

 

 

 

2

%

 

1

%

 

8

%

 

2

%

 

 

 

 

8

%

 

21

%

 

19

%

 

23

%

 

 

 

 

20

%

 

9

%

 

4

%

 

3

%

 

 

 

 

20

%

 

7

%

 

 

 

 

 

 

 

Revenue per night growth

 

 

 

(2

)%

 

1

%

 

%

 

(1

)%

 

 

 

 

6

%

 

15

%

 

14

%

 

6

%

 

 

 

 

10

%

 

7

%

 

17

%

 

24

%

 

 

 

 

17

%

 

12

%

 

5

%

 

(1

)%

 

 

 

 

18

%

 

7

%

 

 

 

 

 

 

 

Lodging revenue growth

 

 

 

7

%

 

12

%

 

11

%

 

9

%

 

 

 

 

(9

)%

 

(78

)%

 

(52

)%

 

(58

)%

 

 

 

 

(41

)%

 

215

%

 

87

%

 

116

%

 

 

 

 

78

%

 

57

%

 

25

%

 

18

%

 

 

 

 

59

%

 

38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide air (merchant & agency)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tickets sold growth

 

 

 

11

%

 

10

%

 

8

%

 

%

 

 

 

 

(26

)%

 

(85

)%

 

(74

)%

 

(69

)%

 

 

 

 

(50

)%

 

299

%

 

132

%

 

92

%

 

 

 

 

48

%

 

1

%

 

(4

)%

 

(2

)%

 

 

 

 

43

%

 

8

%

 

 

 

 

 

 

 

Airfare growth

 

 

 

(1

)%

 

1

%

 

%

 

1

%

 

 

 

 

(5

)%

 

(35

)%

 

(36

)%

 

(31

)%

 

 

 

 

(26

)%

 

30

%

 

31

%

 

32

%

 

 

 

 

39

%

 

35

%

 

32

%

 

22

%

 

 

 

 

3

%

 

30

%

 

 

 

 

 

 

 

Revenue per ticket growth

 

 

 

(7

)%

 

(7

)%

 

(10

)%

 

(9

)%

 

 

 

 

(41

)%

 

NM

 

 

(48

)%

 

(35

)%

 

 

 

 

(10

)%

 

NM

 

 

(2

)%

 

(12

)%

 

 

 

 

1

%

 

21

%

 

69

%

 

47

%

 

 

 

 

69

%

 

32

%

 

 

 

 

 

 

 

Air revenue growth

 

 

 

3

%

 

2

%

 

(3

)%

 

(8

)%

 

 

 

 

(56

)%

 

NM

 

 

(87

)%

 

(80

)%

 

 

 

 

(55

)%

 

NM

 

 

128

%

 

68

%

 

 

 

 

50

%

 

22

%

 

61

%

 

44

%

 

 

 

 

141

%

 

43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

  • All comparisons are against comparable period of prior year unless otherwise noted.
  • Advertising & Media Revenue includes third-party revenue from trivago. All trivago revenue is classified as Non-U.S. point of sale.
  • Corporate includes product revenue subsequent to our acquisition of Bodybuilding.com in July 2019 through its sale in May 2020.
  • B2B includes Egencia through its sale in November 2021.
  • Some numbers may not add due to rounding. All percentages above and throughout this release are calculated on precise, unrounded numbers.

Notes & Definitions:

Gross Bookings: Gross bookings generally represent the total retail value of transactions booked, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, adjusted for cancellations and refunds.

Retail: The Retail segment, which consists of the aggregation of operating segments, provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia.com and Hotels.com in the United States, localized Expedia and Hotels.com websites throughout the world, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, Hotwire.com, and CarRentals.com.

B2B: The B2B segment is comprised of Expedia Partner Solutions, which operates private label and co-branded programs to make travel services available to leisure travelers though third-party company branded websites and Egencia through its sale on November 1, 2021.

trivago: The trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.

Corporate: Includes unallocated corporate expenses as well as Bodybuilding.com subsequent to our acquisition in July 2019 through its sale in May 2020.

Lodging Metrics: Reported on a stayed and book basis. Lodging consists of both merchant and agency model hotel and alternative accommodations.

Room Nights Stayed: Room nights stayed represent stayed hotel room nights and include property nights for our Retail reportable segment and stayed hotel room nights for our B2B reportable segment. Stayed hotel room nights include both merchant and agency hotel stays. Property nights, which are related to our alternative accommodation business, are reported upon the first day of stay and check-in to a property and represent the total number of nights for which a property is rented.

Room Nights Booked: Room nights booked represent booked hotel room nights and include property nights for our Retail reportable segment and booked hotel room nights for our B2B reportable segment. Booked hotel room nights include both merchant and agency hotel stays. Property nights are related to our alternative accommodation business.

Air Metrics: Reported on a booked basis and includes both merchant and agency air bookings.

Definitions of Non-GAAP Measures

Expedia Group reports Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP technology and content and non-GAAP general and administrative), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items related to transactional tax matters, which may ultimately be settled in cash. We urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis and Legal Proceedings sections, as well as the notes to the financial statements, included in the Company's annual and quarterly reports filed with the Securities and Exchange Commission. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The definition of Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization was revised in the fourth quarter of 2012 and in the first quarter of 2016 and the definition for Adjusted Net Income (Loss) was revised in the fourth quarters of 2010, 2011, 2012 and 2017. The definition of Adjusted Expenses was revised in the first quarter of 2014 and in the second quarter 2015.

Adjusted EBITDA is defined as net income (loss) attributable to Expedia Group adjusted for:

(1) net income (loss) attributable to non-controlling interests;

(2) provision for income taxes;

(3) total other expenses, net;

(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;

(5) acquisition-related impacts, including

(i) amortization of intangible assets and goodwill and intangible asset impairment,

(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements; and

(iii) upfront consideration paid to settle employee compensation plans of the acquiree;

(6) certain other items, including restructuring;

(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings;

(8) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period; and

(9) depreciation.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.

Adjusted Net Income (Loss) generally captures all items on the statements of operations that occur in normal course operations and have been, or ultimately will be, settled in cash and is defined as net income (loss) attributable to Expedia Group plus the following items, net of tax:

(1) stock-based compensation expense, including compensation expense related to equity plans of certain subsidiaries and equity-method investments;

(2) acquisition-related impacts, including;

(i) amortization of intangible assets, including as part of equity-method investments, and goodwill and intangible asset impairment;

(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;

(iii) upfront consideration paid to settle employee compensation plans of the acquiree; and

(iv) gains (losses) recognized on non-controlling investment basis adjustments when we acquire or lose controlling interests;

(3) currency gains or losses on U.S. dollar denominated cash;

(4) since adoption of new accounting guidance in the first quarter of 2018, the changes in fair value of equity investments;

(5) certain other items, including restructuring charges;

(6) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g., hotel occupancy and excise taxes), related court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings, including as part of equity method investments;

(7) discontinued operations;

(8) the non-controlling interest impact of the aforementioned adjustment items; and

(9) unrealized gains (losses) on revenue hedging activities that are included in other, net.

Adjusted Net Income (Loss) includes preferred share dividends. We believe Adjusted Net Income (Loss) is useful to investors because it represents Expedia Group's combined results, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of certain expenses and items not directly tied to the core operations of our businesses.

Adjusted EPS is defined as Adjusted Net Income (Loss) divided by adjusted weighted average shares outstanding, which, when applicable, include dilution from our convertible debt instruments per the treasury stock method for Adjusted EPS. The treasury stock method assumes we would elect to settle the principal amount of the debt for cash and the conversion premium for shares. If the conversion prices for such instruments exceed our average stock price for the period, the instruments generally would have no impact to adjusted weighted average shares outstanding. This differs from the GAAP method for dilution from our convertible debt instruments, which include them on an if-converted method. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, Expedia Group's consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, taxes, foreign exchange gains or losses, and minority interest, but excluding the effects of certain expenses not directly tied to the core operations of our businesses. Adjusted Net Income (Loss) and Adjusted EPS have similar limitations as Adjusted EBITDA. In addition, Adjusted Net Income (Loss) does not include all items that affect our net income (loss) and net income (loss) per share for the period. Therefore, we think it is important to evaluate these measures along with our consolidated statements of operations.

Free Cash Flow is defined as net cash flow provided by operating activities less capital expenditures. Management believes Free Cash Flow is useful to investors because it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. We added additional detail for the capital expenditures associated with building our new headquarters facility in Seattle, Washington. We believe separating out capital expenditures for this discrete project is important to provide additional transparency to investors related to operating versus project-related capital expenditures. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the consolidated statements of cash flows.

Adjusted Expenses (cost of revenue, selling and marketing, technology and content and general and administrative expenses) exclude stock-based compensation related to expenses for stock options, restricted stock units and other equity compensation under applicable stock-based compensation accounting standards. Expedia Group excludes stock-based compensation from these measures primarily because they are non-cash expenses that we do not believe are necessarily reflective of our ongoing cash operating expenses and cash operating income. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting applicable stock-based compensation accounting standards, management believes that providing non-GAAP financial measures that exclude stock-based compensation allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies, as well as providing management with an important tool for financial operational decision making and for evaluating our own recurring core business operating results over different periods of time. There are certain limitations in using financial measures that do not take into account stock-based compensation, including the fact that stock-based compensation is a recurring expense and a valued part of employees' compensation. Therefore, it is important to evaluate both our GAAP and non-GAAP measures. See the Notes to the Consolidated Statements of Operations for stock-based compensation by line item.

Expedia Group, Inc. (excluding trivago) In order to provide increased transparency on the transaction-based component of the business, Expedia Group is reporting results both in total and excluding trivago.

In addition, we evaluate certain operating and financial measures, including revenue growth, on both an as-reported and excluding the impact of foreign exchange, FX neutral, basis. FX neutral results are among the primary metrics by which management evaluates the performance of the business and management believes that investors should have access to the same set of tools that management uses to analyze our results. We estimate FX neutral revenue growth by (i) excluding the FX impacts resulting from the time period between a transaction's booking date and revenue recognition date for both the current and prior year periods, and (ii) converting our current-year period results for transactions recorded in currencies other than U.S. Dollars using the corresponding prior-year period exchange rates rather than the current-year period exchange rates.

Tabular Reconciliations for Non-GAAP Measures

Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) by Segment(1)

 

 

Three months ended December 31, 2022

 

Retail

 

B2B

 

trivago

 

Corporate &

Eliminations

 

Total

 

(In millions)

Operating income (loss)

$

260

 

$

114

 

$

20

 

$

(266

)

 

$

128

Realized gain (loss) on revenue hedges

 

23

 

 

5

 

 

 

 

 

 

 

28

Stock-based compensation

 

 

 

 

 

 

 

94

 

 

 

94

Amortization of intangible assets

 

 

 

 

 

 

 

22

 

 

 

22

Depreciation

 

128

 

 

23

 

 

1

 

 

25

 

 

 

177

Adjusted EBITDA(1)

$

411

 

$

142

 

$

21

 

$

(125

)

 

$

449

 

Three months ended December 31, 2021

 

Retail

 

B2B

 

trivago

 

Corporate &

Eliminations

 

Total

 

(In millions)

Operating income (loss)

$

358

 

 

$

73

 

$

18

 

$

(286

)

 

$

163

 

Realized gain (loss) on revenue hedges

 

(3

)

 

 

 

 

 

 

 

 

 

(3

)

Restructuring and related reorganization charges

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Stock-based compensation

 

 

 

 

 

 

 

 

99

 

 

 

99

 

Impairment of goodwill

 

 

 

 

 

 

 

 

14

 

 

 

14

 

Intangible and other long-term asset impairment

 

 

 

 

 

 

 

 

6

 

 

 

6

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

22

 

 

 

22

 

Depreciation

 

126

 

 

 

24

 

 

2

 

 

25

 

 

 

177

 

Adjusted EBITDA(1)

$

481

 

 

$

97

 

$

20

 

$

(119

)

 

$

479

 

 

Year ended December 31, 2022

 

Retail

 

B2B