Q3 2024 Expedia Group Inc Earnings Call Transcript
Key Points
- Expedia Group Inc (EXPE) exceeded expectations on gross bookings and earnings, with revenue landing in line despite weather and currency headwinds.
- The company saw a 25% increase in package bookings in the third quarter, driven by new product features and targeted promotional activity.
- Vrbo returned to growth with improved app performance and expanded supply, adding nearly 1 million units previously only available on Brand Expedia.
- The advertising business delivered strong growth with revenue up 32%, driven by more advertisers and new product capabilities.
- B2B bookings grew 19% year on year, with new partnerships and solutions contributing to the growth.
- Despite revenue growth, the third quarter saw a slight margin deleverage of approximately 16 basis points.
- Vrbo faced challenges due to Hurricane Milton, impacting October performance.
- The company experienced pressure on revenue growth from soft Vrbo bookings in the first half of 2024.
- Direct sales and marketing expenses increased by 11% year over year, primarily due to higher commissions in the B2B business.
- Hotels.com performance was stable but has not returned to growth, impacted by migration and changes in the loyalty program.
Good day, everyone, and welcome to the Expedia Group Q3 2024 financial results teleconference. My name is Alex, 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 and Strategy and Investor Relations, Harshit Vaish. Please go ahead.
Good afternoon, and welcome to Expedia Group's third-quarter 2024 earnings call. I am 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 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
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