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Delaware
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001-37429
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20-2705720
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Emerging growth company ☐
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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EXPEDIA GROUP, INC.
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|
|
|
|
|
By:
|
/s/ ALAN PICKERILL
|
|
|
Alan Pickerill
|
|
|
Chief Financial Officer
|
•
|
Gross bookings
increased
13%
year-over-year to
$99.7 billion
for the full year
2018
. Revenue
increased
12%
year-over-year to
$11.2 billion
for the full year.
|
•
|
For full year
2018
, Net income, Adjusted net income and Adjusted EBITDA grew
7%
,
33%
and
15%
year-over-year, respectively. Diluted EPS and Adjusted EPS grew
10%
and
35%
year-over-year, respectively, during full year
2018
.
|
•
|
Total stayed lodging room nights increased
13%
year-over-year for the full year
2018
, and
11%
in the
fourth
quarter. HomeAway stayed property nights grew 29% year-over-year for the full year
2018
, and 20% for the
fourth
quarter.
|
•
|
Expedia Group exceeded 1 million properties available on its core lodging platform as of
December 31, 2018
, including over 370,000 integrated HomeAway listings.
|
•
|
In
2018
, Expedia Group returned $1.1 billion to shareholders, including repurchasing 7.7 million shares for $903 million and paying $
186 million
in dividends.
|
|
Expedia Group (excluding trivago)
(2)
|
Expedia Group, Inc.
|
||||
Metric
|
Q4 2018
|
Q4 2017
|
Δ Y/Y
|
Q4 2018
|
Q4 2017
|
Δ Y/Y
|
Room night growth
|
11%
|
15%
|
(451) bps
|
11%
|
15%
|
(451) bps
|
Gross bookings
|
$21,957
|
$19,766
|
11%
|
$21,957
|
$19,766
|
11%
|
Revenue
|
2,439
|
2,187
|
11%
|
2,559
|
2,319
|
10%
|
Operating income
|
75
|
131
|
(42)%
|
96
|
114
|
(15)%
|
Net income attributable to Expedia Group
|
|
|
|
17
|
55
|
(69)%
|
Diluted EPS
|
|
|
|
$0.11
|
$0.35
|
(69)%
|
Adjusted EBITDA
(1)
|
438
|
411
|
7%
|
471
|
402
|
17%
|
Adjusted net income
(1)
|
180
|
142
|
27%
|
191
|
132
|
45%
|
Adjusted EPS
(1)
|
$1.18
|
$0.90
|
31%
|
$1.24
|
$0.84
|
49%
|
Free cash flow
(1)
|
|
|
|
(389)
|
(285)
|
(36)%
|
|
Expedia Group (excluding trivago)
(2)
|
Expedia Group, Inc.
|
||||
Metric
|
2018
|
2017
|
Δ Y/Y
|
2018
|
2017
|
Δ Y/Y
|
Room night growth
|
13%
|
16%
|
(360 bps)
|
13%
|
16%
|
(360 bps)
|
Gross bookings
|
$99,727
|
$88,410
|
13%
|
$99,727
|
$88,410
|
13%
|
Revenue
|
10,532
|
9,308
|
13%
|
11,223
|
10,060
|
12%
|
Operating income
|
740
|
651
|
14%
|
714
|
625
|
14%
|
Net income attributable to Expedia Group
|
|
|
|
406
|
378
|
7%
|
Diluted EPS
|
|
|
|
$2.65
|
$2.42
|
10%
|
Adjusted EBITDA
(1)
|
1,954
|
1,708
|
15%
|
1,970
|
1,713
|
15%
|
Adjusted net income
(1)
|
903
|
676
|
34%
|
902
|
679
|
33%
|
Adjusted EPS
(1)
|
$5.83
|
$4.29
|
36%
|
$5.82
|
$4.30
|
35%
|
Free cash flow
(1)
|
|
|
|
1,097
|
1,135
|
(3)%
|
|
Fourth Quarter
|
|
|
Full Year
|
|||||||||||||||||
|
2018
|
|
2017
|
|
Δ%
|
|
|
2018
|
|
2017
|
|
Δ%
|
|||||||||
Core OTA
|
$
|
17,921
|
|
|
$
|
16,182
|
|
|
11%
|
|
|
$
|
80,320
|
|
|
$
|
72,701
|
|
|
10
|
%
|
HomeAway
|
2,192
|
|
|
1,913
|
|
|
15%
|
|
|
11,449
|
|
|
8,746
|
|
|
31
|
%
|
||||
Egencia
|
1,844
|
|
|
1,670
|
|
|
10%
|
|
|
7,958
|
|
|
6,963
|
|
|
14
|
%
|
||||
Total
|
$
|
21,957
|
|
|
$
|
19,766
|
|
|
11%
|
|
|
$
|
99,727
|
|
|
$
|
88,410
|
|
|
13
|
%
|
|
Costs and Expenses
|
|
|
As a % of Revenue
|
||||||||||||||||
|
Fourth Quarter
|
|
|
Fourth Quarter
|
||||||||||||||||
|
2018
|
|
2017
|
|
Δ%
|
|
|
2018
|
|
2017
|
|
Δ in bps
|
||||||||
|
($ millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP cost of revenue
|
$
|
476
|
|
|
$
|
437
|
|
|
9
|
%
|
|
|
18.6
|
%
|
|
18.9
|
%
|
|
(26
|
)
|
GAAP selling and marketing
|
1,209
|
|
|
1,124
|
|
|
8
|
%
|
|
|
47.2
|
%
|
|
48.5
|
%
|
|
(122
|
)
|
||
GAAP technology and content
|
417
|
|
|
372
|
|
|
12
|
%
|
|
|
16.3
|
%
|
|
16.0
|
%
|
|
27
|
|
||
GAAP general and administrative
|
211
|
|
|
198
|
|
|
7
|
%
|
|
|
8.3
|
%
|
|
8.5
|
%
|
|
(26
|
)
|
||
Total GAAP costs and expenses
|
$
|
2,313
|
|
|
$
|
2,131
|
|
|
9
|
%
|
|
|
90.4
|
%
|
|
91.9
|
%
|
|
(148
|
)
|
|
Costs and Expenses
|
|
|
As a % of Revenue
|
||||||||||||||||
|
Full Year
|
|
|
Full Year
|
||||||||||||||||
|
2018
|
|
2017
|
|
Δ%
|
|
|
2018
|
|
2017
|
|
Δ in bps
|
||||||||
|
($ millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP cost of revenue
|
$
|
1,965
|
|
|
$
|
1,757
|
|
|
12
|
%
|
|
|
17.5
|
%
|
|
17.5
|
%
|
|
5
|
|
GAAP selling and marketing
|
5,767
|
|
|
5,298
|
|
|
9
|
%
|
|
|
51.4
|
%
|
|
52.7
|
%
|
|
(128
|
)
|
||
GAAP technology and content
|
1,617
|
|
|
1,387
|
|
|
17
|
%
|
|
|
14.4
|
%
|
|
13.8
|
%
|
|
62
|
|
||
GAAP general and administrative
|
808
|
|
|
676
|
|
|
20
|
%
|
|
|
7.2
|
%
|
|
6.7
|
%
|
|
48
|
|
||
Total GAAP costs and expenses
|
$
|
10,157
|
|
|
$
|
9,118
|
|
|
11
|
%
|
|
|
90.5
|
%
|
|
90.6
|
%
|
|
(13
|
)
|
•
|
Fourth Quarter
2018
:
Total GAAP cost of revenue
increased
9%
, compared to the
fourth
quarter of
2017
,
primarily due to an increase in customer operations expenses primarily at Expedia Partner Solutions and Egencia, as well as an increase in cloud expense. Cloud expense in GAAP cost of revenue was $26 million during the
fourth
quarter of
2018
, compared to $18 million in the
fourth
quarter of
2017
.
|
•
|
Full Year
2018
:
Total GAAP cost of revenue
increased
12%
, compared to the prior year, primarily due to higher customer operations and cloud expenses. Cloud expense in GAAP cost of revenue was $92 million during
2018
, compared to $57 million in
2017
.
|
•
|
Fourth Quarter
2018
:
Total GAAP selling and marketing expense
increased
8%
, compared to the
fourth
quarter of
2017
, due to a
$63 million
increase in direct costs and a
$22 million
increase in indirect costs. Brand Expedia and HomeAway accounted for the majority of the increase in direct costs. The growth in indirect costs was primarily driven by increased headcount in the lodging supply organization.
|
•
|
Full Year
2018
:
Total GAAP selling and marketing expense
increased
9%
, compared to the prior year, due to a $
310 million
increase in direct costs and a
$159 million
increase in indirect costs. Expedia Partner
|
•
|
Fourth Quarter
2018
:
Total GAAP technology and content expense
increased
12%
, compared to the
fourth
quarter of
2017
, primarily due to higher headcount investments to develop our ecommerce platform and further enhance our products. Cloud expense in GAAP technology and content expense was $12 million during the
fourth
quarter of
2018
, compared to $11 million in the
fourth
quarter of
2017
.
|
•
|
Full Year
2018
:
Total GAAP technology and content expense
increased
17%
, compared to the prior year,
primarily due to higher headcount investments to develop our ecommerce platform, growth at HomeAway, an increase in depreciation and amortization and the inorganic impact from acquisitions. Cloud expense in GAAP technology and content expense was $48 million in
2018
, compared to $38 million in
2017
.
|
•
|
Fourth Quarter
2018
:
Total GAAP general and administrative expense
increased
7%
, compared to the
fourth
quarter of
2017
, primarily due to increased headcount at corporate.
|
•
|
Full Year
2018
:
Total GAAP general and administrative expense increased
20%
compared to the prior year, primarily due to increased headcount at corporate as well as the prior year reversal of approximately $41 million of previously recognized stock-based compensation expense related to the departure of the former CEO in 2017.
|
|
Costs and Expenses
|
|
|
As a % of Revenue
|
||||||||||||||||
|
Fourth Quarter
|
|
|
Fourth Quarter
|
||||||||||||||||
|
2018
|
|
2017
|
|
Δ%
|
|
|
2018
|
|
2017
|
|
Δ in bps
|
||||||||
|
($ millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted cost of revenue *
|
$
|
449
|
|
|
$
|
409
|
|
|
10
|
%
|
|
|
17.6
|
%
|
|
17.6
|
%
|
|
(4
|
)
|
Adjusted selling and marketing *
|
1,187
|
|
|
1,104
|
|
|
7
|
%
|
|
|
46.4
|
%
|
|
47.6
|
%
|
|
(124
|
)
|
||
Adjusted technology and content *
|
277
|
|
|
239
|
|
|
16
|
%
|
|
|
10.8
|
%
|
|
10.3
|
%
|
|
50
|
|
||
Adjusted general and administrative *
|
182
|
|
|
168
|
|
|
8
|
%
|
|
|
7.1
|
%
|
|
7.2
|
%
|
|
(12
|
)
|
||
Total adjusted costs and expenses
|
$
|
2,095
|
|
|
$
|
1,920
|
|
|
9
|
%
|
|
|
81.9
|
%
|
|
82.8
|
%
|
|
(90
|
)
|
Total depreciation
|
169
|
|
|
165
|
|
|
2
|
%
|
|
|
6.6
|
%
|
|
7.1
|
%
|
|
(53
|
)
|
||
Total stock-based compensation
|
49
|
|
|
45
|
|
|
7
|
%
|
|
|
1.9
|
%
|
|
2.0
|
%
|
|
(5
|
)
|
||
Total costs and expenses
|
$
|
2,313
|
|
|
$
|
2,131
|
|
|
9
|
%
|
|
|
90.4
|
%
|
|
91.9
|
%
|
|
(148
|
)
|
|
Costs and Expenses
|
|
|
As a % of Revenue
|
||||||||||||||||
|
Full Year
|
|
|
Full Year
|
||||||||||||||||
|
2018
|
|
2017
|
|
Δ%
|
|
|
2018
|
|
2017
|
|
Δ in bps
|
||||||||
|
($ millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted cost of revenue *
|
$
|
1,853
|
|
|
$
|
1,647
|
|
|
13
|
%
|
|
|
16.5
|
%
|
|
16.4
|
%
|
|
14
|
|
Adjusted selling and marketing *
|
5,677
|
|
|
5,220
|
|
|
9
|
%
|
|
|
50.6
|
%
|
|
51.9
|
%
|
|
(131
|
)
|
||
Adjusted technology and content *
|
1,061
|
|
|
887
|
|
|
19
|
%
|
|
|
9.4
|
%
|
|
8.8
|
%
|
|
62
|
|
||
Adjusted general and administrative *
|
687
|
|
|
599
|
|
|
15
|
%
|
|
|
6.1
|
%
|
|
6.0
|
%
|
|
16
|
|
||
Total adjusted costs and expenses
|
$
|
9,278
|
|
|
$
|
8,354
|
|
|
11
|
%
|
|
|
82.7
|
%
|
|
83.0
|
%
|
|
(38
|
)
|
Total depreciation
|
676
|
|
|
614
|
|
|
10
|
%
|
|
|
6.0
|
%
|
|
6.1
|
%
|
|
(8
|
)
|
||
Total stock-based compensation
|
203
|
|
|
149
|
|
|
36
|
%
|
|
|
1.8
|
%
|
|
1.5
|
%
|
|
32
|
|
||
Total costs and expenses
|
$
|
10,157
|
|
|
$
|
9,118
|
|
|
11
|
%
|
|
|
90.5
|
%
|
|
90.6
|
%
|
|
(13
|
)
|
|
Costs and Expenses
|
|
|
As a % of Revenue
|
||||||||||||||||
|
Fourth Quarter
|
|
|
Fourth Quarter
|
||||||||||||||||
|
2018
|
|
2017
|
|
Δ%
|
|
|
2018
|
|
2017
|
|
Δ in bps
|
||||||||
|
($ millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted cost of revenue *
|
$
|
448
|
|
|
$
|
406
|
|
|
10
|
%
|
|
|
18.4
|
%
|
|
18.6
|
%
|
|
(17
|
)
|
Adjusted selling and marketing *
|
1,124
|
|
|
993
|
|
|
13
|
%
|
|
|
46.1
|
%
|
|
45.4
|
%
|
|
66
|
|
||
Adjusted technology and content *
|
262
|
|
|
225
|
|
|
16
|
%
|
|
|
10.7
|
%
|
|
10.3
|
%
|
|
43
|
|
||
Adjusted general and administrative *
|
175
|
|
|
156
|
|
|
12
|
%
|
|
|
7.1
|
%
|
|
7.1
|
%
|
|
3
|
|
||
Total adjusted costs and expenses
|
$
|
2,009
|
|
|
$
|
1,780
|
|
|
13
|
%
|
|
|
82.3
|
%
|
|
81.3
|
%
|
|
95
|
|
Total depreciation
|
164
|
|
|
162
|
|
|
2
|
%
|
|
|
6.8
|
%
|
|
7.4
|
%
|
|
(66
|
)
|
||
Total stock-based compensation
|
43
|
|
|
41
|
|
|
4
|
%
|
|
|
1.8
|
%
|
|
1.9
|
%
|
|
(13
|
)
|
||
Total costs and expenses
|
$
|
2,216
|
|
|
$
|
1,983
|
|
|
12
|
%
|
|
|
90.8
|
%
|
|
90.6
|
%
|
|
16
|
|
|
Costs and Expenses
|
|
|
As a % of Revenue
|
||||||||||||||||
|
Full Year
|
|
|
Full Year
|
||||||||||||||||
|
2018
|
|
2017
|
|
Δ%
|
|
|
2018
|
|
2017
|
|
Δ in bps
|
||||||||
|
($ millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted cost of revenue *
|
$
|
1,847
|
|
|
$
|
1,639
|
|
|
13
|
%
|
|
|
17.5
|
%
|
|
17.6
|
%
|
|
(7
|
)
|
Adjusted selling and marketing *
|
5,117
|
|
|
4,571
|
|
|
12
|
%
|
|
|
48.6
|
%
|
|
49.1
|
%
|
|
(53
|
)
|
||
Adjusted technology and content *
|
997
|
|
|
833
|
|
|
20
|
%
|
|
|
9.5
|
%
|
|
8.9
|
%
|
|
52
|
|
||
Adjusted general and administrative *
|
642
|
|
|
564
|
|
|
14
|
%
|
|
|
6.1
|
%
|
|
6.1
|
%
|
|
3
|
|
||
Total adjusted costs and expenses
|
$
|
8,603
|
|
|
$
|
7,607
|
|
|
13
|
%
|
|
|
81.7
|
%
|
|
81.7
|
%
|
|
(5
|
)
|
Total depreciation
|
661
|
|
|
605
|
|
|
9
|
%
|
|
|
6.3
|
%
|
|
6.5
|
%
|
|
(22
|
)
|
||
Total stock-based compensation
|
179
|
|
|
131
|
|
|
36
|
%
|
|
|
1.7
|
%
|
|
1.4
|
%
|
|
29
|
|
||
Total costs and expenses
|
$
|
9,443
|
|
|
$
|
8,343
|
|
|
13
|
%
|
|
|
89.6
|
%
|
|
89.6
|
%
|
|
1
|
|
•
|
Fourth Quarter
2018
:
Total adjusted cost of revenue
increased
10%
, compared to the
fourth
quarter of
2017
, primarily due to an increase in customer operations expenses primarily at Expedia Partner Solutions and Egencia, as well as an increase in cloud expense.
|
•
|
Full Year
2018
:
Total adjusted cost of revenue
increased
13%
, compared to the prior year, primarily due to higher customer operations and cloud expenses.
|
•
|
Fourth Quarter
2018
:
Total adjusted selling and marketing expense
increased
7%
, compared to the
fourth
quarter of
2017
, due to
$63 million
more in direct costs and a
$19 million
increase in indirect costs. As a percentage of total adjusted selling and marketing, indirect costs represented
21%
in the
fourth
quarter of
2018
, consistent with
21%
in the
fourth
quarter of
2017
.
|
•
|
Adjusted selling and marketing expense excluding trivago increased
13%
in the
fourth
quarter of
2018
. Brand Expedia and HomeAway accounted for the majority of the increase in direct costs. The growth in indirect costs was primarily driven by increased headcount in the lodging supply organization.
|
•
|
Full Year
2018
:
Total adjusted selling and marketing expense
increased
9%
, compared to the prior year, due to an
$310 million
increase in direct cost and a
$147 million
increase in indirect cost. As a percentage of total adjusted selling and marketing, indirect costs represented
18%
in
2018
, compared to
16%
in
2017
.
|
•
|
Adjusted selling and marketing expense excluding trivago increased
12%
in
2018
. Expedia Partner Solutions, Brand Expedia and Hotels.com accounted for the majority of the increase in direct costs. The growth in indirect costs was primarily driven by increased headcount in the lodging supply organization.
|
•
|
Fourth Quarter
2018
:
Total adjusted technology and content expense
increased
16%
, compared to the
fourth
quarter of
2017
, primarily due to higher headcount investments to develop our ecommerce platform and further enhance our products.
|
•
|
Full Year
2018
:
Total adjusted technology and content expense
increased
19%
, compared to the prior year, primarily due to higher headcount investments to develop our ecommerce platform, growth at HomeAway and the inorganic impact from acquisitions.
|
•
|
Fourth Quarter
2018
:
Total adjusted general and administrative expense
increased
8%
, compared to the
fourth
quarter of
2017
, primarily due to increased headcount at corporate.
|
•
|
Full Year
2018
:
Total adjusted general and administrative expense
increased
15%
, compared to the prior year, primarily due to increased headcount at corporate.
|
|
Fourth Quarter
|
|
|
Full Year
|
||||||||||||||||
|
2018
|
|
2017
|
|
Δ%
|
|
|
2018
|
|
2017
|
|
Δ%
|
||||||||
Core OTA
|
$
|
584
|
|
|
$
|
534
|
|
|
9%
|
|
|
$
|
2,305
|
|
|
$
|
2,057
|
|
|
12%
|
HomeAway
|
22
|
|
|
31
|
|
|
(27)%
|
|
|
288
|
|
|
202
|
|
|
43%
|
||||
Egencia
|
31
|
|
|
19
|
|
|
65%
|
|
|
107
|
|
|
95
|
|
|
13%
|
||||
Unallocated overhead costs
|
(199
|
)
|
|
(173
|
)
|
|
(15)%
|
|
|
(746
|
)
|
|
(646
|
)
|
|
(15)%
|
||||
Expedia Group (excluding trivago)
|
$
|
438
|
|
|
$
|
411
|
|
|
7%
|
|
|
$
|
1,954
|
|
|
$
|
1,708
|
|
|
15%
|
trivago
(2)
|
33
|
|
|
(9
|
)
|
|
NM
|
|
|
16
|
|
|
5
|
|
|
186%
|
||||
Total Adjusted EBITDA
|
$
|
471
|
|
|
$
|
402
|
|
|
17%
|
|
|
$
|
1,970
|
|
|
$
|
1,713
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Expedia Group
(3)
|
$
|
17
|
|
|
$
|
55
|
|
|
(69)%
|
|
|
$
|
406
|
|
|
$
|
378
|
|
|
7%
|
•
|
Expedia Group exceeded 1 million properties available on its core lodging platform
as of December 31, 2018, including over 370,000 integrated HomeAway listings.
HomeAway offers over 1.8 million online bookable listings
.
|
•
|
Expedia Group became the first OTA based in North America to achieve IATA New Distribution Capability (NDC) Level 3 Certification
. This certification as well as ongoing NDC product development, recognizes Expedia Group’s commitment to evolve technology in line with NDC capabilities in readiness for integration across its brand portfolio.
|
•
|
Expedia Group
executed commercial agreements with
American Airlines
,
Frontier Airlines
,
Icelandair
,
SAS
and
WOW Air
.
|
•
|
Hotels.com Rewards now has over 43 million members
who can earn 1 reward night for every 10 nights stayed.
|
•
|
Expedia Partner Solutions successfully migrated Chase Sapphire®, Freedom® and Ink® cards onto the Ultimate Rewards Travel Center powered by Expedia
.
|
•
|
Expedia Partner Solutions
was recognized for innovation in digital travel winning Travolution’s
‘Best trade supplier’
award for their online template solution, Hotels.com for Partners, and their versatile API, EPS Rapid.
|
•
|
Brand Expedia and Expedia Group Media Solutions
announced two tourism cooperation agreements with the
Ministry of Tourism of the Republic of Indonesia
to promote and help drive travel demand to 15 key destinations in Indonesia and to support the Ministry’s target of achieving
20 million international tourist arrivals by the end of 2019.
|
•
|
Travelocity launched its first augmented reality experience
in its mobile app allowing users to snap travel photos and videos with the brand's popular spokesperson,
The Roaming Gnome
.
|
•
|
Orbitz Rewards membership surpassed 9 million travelers
. The Orbitz Rewards program announced enhanced benefits for its Platinum members who can now choose between free TSA Precheck or LoungeBuddy passes and earn $50 back on everyday travel expenses.
|
•
|
Hotwire launched TravelAds sponsored listings
on its primary hotel booking path, successfully incorporating a pay-per-click hotel advertising platform within search result sets.
|
•
|
Expedia CruiseShipCenters achieved over $790 million in gross bookings
in 2018, exhibiting 17% year-over-year growth.
|
•
|
Celebrity Cruises
named
Expedia Group as their North American Partner of the Year 2018
and
Norwegian Cruise Line
named
Expedia Group as their Elite Partner of the Year
.
|
•
|
HomeAway now offers over 1 million instantly bookable listings
.
|
•
|
HomeAway
re-launched its
Stop Searching, Start Finding
TV marketing campaign in the U.S. to promote
VRBO
and encourage mobile app downloads. As part of the campaign, VRBO was the title sponsor for the
Citrus Bowl college football game on New Year’s Day
, reaching more than 7.5 million viewers.
|
•
|
HomeAway launched its virtual tours platform
, which is compatible with different types of virtual tour content ranging from “DIY” tours filmed on personal phones and cameras to professionally captured footage, easily allowing homeowners and property managers to share a 360-degree walk-through of their properties.
|
•
|
trivago
continued to grow its alternative accommodation inventory and
now has over 1.5 million alternative accommodation properties listed
.
|
•
|
Business travelers, travel arrangers, travel managers and travel approvers are increasingly using the
Egencia mobile app
; the percentage of
Egencia users that utilized the mobile app grew more than 25%
year-over-year in 2018.
|
|
Three months ended December 31,
|
|
Year ended December 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
2,559
|
|
|
$
|
2,319
|
|
|
$
|
11,223
|
|
|
$
|
10,060
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
(1) (2)
|
476
|
|
|
437
|
|
|
1,965
|
|
|
1,757
|
|
||||
Selling and marketing
(1) (2)
|
1,209
|
|
|
1,124
|
|
|
5,767
|
|
|
5,298
|
|
||||
Technology and content
(1) (2)
|
417
|
|
|
372
|
|
|
1,617
|
|
|
1,387
|
|
||||
General and administrative
(1) (2)
|
211
|
|
|
198
|
|
|
808
|
|
|
676
|
|
||||
Amortization of intangible assets
|
68
|
|
|
71
|
|
|
283
|
|
|
275
|
|
||||
Impairment of goodwill
|
25
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Impairment of intangible assets
|
42
|
|
|
—
|
|
|
42
|
|
|
—
|
|
||||
Legal reserves, occupancy tax and other
|
15
|
|
|
2
|
|
|
(59
|
)
|
|
25
|
|
||||
Restructuring and related reorganization charges
|
—
|
|
|
1
|
|
|
—
|
|
|
17
|
|
||||
Operating income
|
96
|
|
|
114
|
|
|
714
|
|
|
625
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
10
|
|
|
9
|
|
|
71
|
|
|
34
|
|
||||
Interest expense
|
(41
|
)
|
|
(52
|
)
|
|
(190
|
)
|
|
(182
|
)
|
||||
Other, net
|
(9
|
)
|
|
5
|
|
|
(110
|
)
|
|
(60
|
)
|
||||
Total other expense, net
|
(40
|
)
|
|
(38
|
)
|
|
(229
|
)
|
|
(208
|
)
|
||||
Income before income taxes
|
56
|
|
|
76
|
|
|
485
|
|
|
417
|
|
||||
Provision for income taxes
|
(31
|
)
|
|
(23
|
)
|
|
(87
|
)
|
|
(45
|
)
|
||||
Net income
|
25
|
|
|
53
|
|
|
398
|
|
|
372
|
|
||||
Net (income) loss attributable to non-controlling interests
|
(8
|
)
|
|
2
|
|
|
8
|
|
|
6
|
|
||||
Net income attributable to Expedia Group, Inc.
|
$
|
17
|
|
|
$
|
55
|
|
|
$
|
406
|
|
|
$
|
378
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to Expedia Group, Inc. available to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.11
|
|
|
$
|
0.36
|
|
|
$
|
2.71
|
|
|
$
|
2.49
|
|
Diluted
|
0.11
|
|
|
0.35
|
|
|
2.65
|
|
|
2.42
|
|
||||
Shares used in computing earnings per share (000's):
|
|
|
|
|
|
|
|
||||||||
Basic
|
148,509
|
|
|
152,252
|
|
|
149,961
|
|
|
151,619
|
|
||||
Diluted
|
151,358
|
|
|
155,974
|
|
|
152,889
|
|
|
156,385
|
|
||||
_________
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
Operating activities:
|
|
|
|
||||
Net income
|
$
|
398
|
|
|
$
|
372
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation of property and equipment, including internal-use software and website development
|
676
|
|
|
614
|
|
||
Amortization of stock-based compensation
|
203
|
|
|
149
|
|
||
Amortization and impairment of intangible assets
|
325
|
|
|
275
|
|
||
Impairment of goodwill
|
86
|
|
|
—
|
|
||
Deferred income taxes
|
(308
|
)
|
|
(103
|
)
|
||
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net
|
111
|
|
|
(79
|
)
|
||
Realized gain on foreign currency forwards
|
(31
|
)
|
|
(6
|
)
|
||
Loss on minority equity investments, net
|
111
|
|
|
14
|
|
||
Other
|
22
|
|
|
(30
|
)
|
||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
||||
Accounts receivable
|
(282
|
)
|
|
(456
|
)
|
||
Prepaid expenses and other assets
|
(29
|
)
|
|
(71
|
)
|
||
Accounts payable, merchant
|
(134
|
)
|
|
316
|
|
||
Accounts payable, other, accrued expenses and other current liabilities
|
196
|
|
|
257
|
|
||
Tax payable/receivable, net
|
102
|
|
|
(30
|
)
|
||
Deferred merchant bookings
|
489
|
|
|
593
|
|
||
Deferred revenue
|
40
|
|
|
30
|
|
||
Net cash provided by operating activities
|
1,975
|
|
|
1,845
|
|
||
Investing activities:
|
|
|
|
||||
Capital expenditures, including internal-use software and website development
|
(878
|
)
|
|
(710
|
)
|
||
Purchases of investments
|
(1,803
|
)
|
|
(1,811
|
)
|
||
Sales and maturities of investments
|
2,137
|
|
|
1,096
|
|
||
Acquisitions, net of cash and restricted cash acquired
|
(53
|
)
|
|
(169
|
)
|
||
Other, net
|
38
|
|
|
13
|
|
||
Net cash used in investing activities
|
(559
|
)
|
|
(1,581
|
)
|
||
Financing activities:
|
|
|
|
||||
Payment of long-term debt
|
(500
|
)
|
|
—
|
|
||
Proceeds from issuance of long-term debt, net of issuance costs
|
—
|
|
|
990
|
|
||
Purchases of treasury stock
|
(923
|
)
|
|
(312
|
)
|
||
Proceeds from issuance of treasury stock
|
31
|
|
|
—
|
|
||
Payment of dividends to stockholders
|
(186
|
)
|
|
(176
|
)
|
||
Proceeds from exercise of equity awards and employee stock purchase plan
|
166
|
|
|
229
|
|
||
Changes in controlled subsidiaries, net
|
(62
|
)
|
|
(18
|
)
|
||
Other, net
|
(15
|
)
|
|
(25
|
)
|
||
Net cash provided by (used in) financing activities
|
(1,489
|
)
|
|
688
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
|
(139
|
)
|
|
147
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents
|
(212
|
)
|
|
1,099
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of year
|
2,917
|
|
|
1,818
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents at end of year
|
$
|
2,705
|
|
|
$
|
2,917
|
|
Supplemental cash flow information
|
|
|
|
||||
Cash paid for interest
|
$
|
196
|
|
|
$
|
163
|
|
Income tax payments, net
|
282
|
|
|
174
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
Full Year
|
|
|
|
Y/Y Growth
|
|
|
||||||||||||||||||||||||||||
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
2017
|
2018
|
|
|
|
Q418
|
2018
|
|
|
||||||||||||||||||||
Gross bookings by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Core OTA
|
|
|
$
|
19,110
|
|
$
|
18,954
|
|
$
|
18,456
|
|
$
|
16,182
|
|
|
|
|
$
|
21,171
|
|
$
|
21,011
|
|
$
|
20,217
|
|
$
|
17,921
|
|
|
|
|
$
|
72,701
|
|
$
|
80,320
|
|
|
|
|
11%
|
10%
|
|
|
HomeAway
|
|
|
2,697
|
|
2,123
|
|
2,013
|
|
1,913
|
|
|
|
|
3,947
|
|
2,814
|
|
2,496
|
|
2,192
|
|
|
|
|
8,746
|
|
11,449
|
|
|
|
|
15%
|
31%
|
|
|
||||||||||
Egencia
|
|
|
1,804
|
|
1,761
|
|
1,728
|
|
1,670
|
|
|
|
|
2,078
|
|
2,073
|
|
1,963
|
|
1,844
|
|
|
|
|
6,963
|
|
7,958
|
|
|
|
|
10%
|
14%
|
|
|
||||||||||
Total
|
|
|
$
|
23,610
|
|
$
|
22,838
|
|
$
|
22,197
|
|
$
|
19,766
|
|
|
|
|
$
|
27,196
|
|
$
|
25,898
|
|
$
|
24,676
|
|
$
|
21,957
|
|
|
|
|
$
|
88,410
|
|
$
|
99,727
|
|
|
|
|
11%
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Gross bookings by geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Domestic
|
|
|
$
|
15,128
|
|
$
|
14,730
|
|
$
|
13,540
|
|
$
|
11,800
|
|
|
|
|
$
|
16,582
|
|
$
|
16,213
|
|
$
|
15,232
|
|
$
|
13,362
|
|
|
|
|
$
|
55,197
|
|
$
|
61,389
|
|
|
|
|
13%
|
11%
|
|
|
International
|
|
|
8,483
|
|
8,108
|
|
8,657
|
|
7,966
|
|
|
|
|
10,614
|
|
9,685
|
|
9,444
|
|
8,595
|
|
|
|
|
33,213
|
|
38,337
|
|
|
|
|
8%
|
15%
|
|
|
||||||||||
Total
|
|
|
$
|
23,610
|
|
$
|
22,838
|
|
$
|
22,197
|
|
$
|
19,766
|
|
|
|
|
$
|
27,196
|
|
$
|
25,898
|
|
$
|
24,676
|
|
$
|
21,957
|
|
|
|
|
$
|
88,410
|
|
$
|
99,727
|
|
|
|
|
11%
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Gross bookings by business model
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Agency
|
|
|
$
|
11,342
|
|
$
|
11,168
|
|
$
|
10,392
|
|
$
|
9,493
|
|
|
|
|
$
|
12,445
|
|
$
|
12,290
|
|
$
|
11,442
|
|
$
|
10,688
|
|
|
|
|
$
|
42,395
|
|
$
|
46,865
|
|
|
|
|
13%
|
11%
|
|
|
Merchant
|
|
|
9,572
|
|
9,546
|
|
9,792
|
|
8,360
|
|
|
|
|
10,803
|
|
10,794
|
|
10,739
|
|
9,077
|
|
|
|
|
37,269
|
|
41,413
|
|
|
|
|
9%
|
11%
|
|
|
||||||||||
HomeAway
|
|
|
2,697
|
|
2,123
|
|
2,013
|
|
1,913
|
|
|
|
|
3,947
|
|
2,814
|
|
2,496
|
|
2,192
|
|
|
|
|
8,746
|
|
11,449
|
|
|
|
|
15%
|
31%
|
|
|
||||||||||
Total
|
|
|
$
|
23,610
|
|
$
|
22,838
|
|
$
|
22,197
|
|
$
|
19,766
|
|
|
|
|
$
|
27,196
|
|
$
|
25,898
|
|
$
|
24,676
|
|
$
|
21,957
|
|
|
|
|
$
|
88,410
|
|
$
|
99,727
|
|
|
|
|
11%
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Core OTA
|
|
|
$
|
1,700
|
|
$
|
2,009
|
|
$
|
2,314
|
|
$
|
1,857
|
|
|
|
|
$
|
1,926
|
|
$
|
2,253
|
|
$
|
2,527
|
|
$
|
2,054
|
|
|
|
|
$
|
7,881
|
|
$
|
8,760
|
|
|
|
|
10%
|
11%
|
|
|
HomeAway
|
|
|
185
|
|
224
|
|
305
|
|
193
|
|
|
|
|
234
|
|
297
|
|
410
|
|
230
|
|
|
|
|
906
|
|
1,171
|
|
|
|
|
20%
|
29%
|
|
|
||||||||||
Egencia
|
|
|
123
|
|
135
|
|
126
|
|
137
|
|
|
|
|
151
|
|
156
|
|
139
|
|
155
|
|
|
|
|
521
|
|
601
|
|
|
|
|
13%
|
16%
|
|
|
||||||||||
Expedia Group (excluding trivago)
|
|
|
$
|
2,008
|
|
$
|
2,368
|
|
$
|
2,745
|
|
$
|
2,187
|
|
|
|
|
$
|
2,311
|
|
$
|
2,706
|
|
$
|
3,076
|
|
$
|
2,439
|
|
|
|
|
$
|
9,308
|
|
$
|
10,532
|
|
|
|
|
11%
|
13%
|
|
|
trivago
|
|
|
286
|
|
328
|
|
338
|
|
215
|
|
|
|
|
319
|
|
280
|
|
295
|
|
190
|
|
|
|
|
1,166
|
|
1,084
|
|
|
|
|
(12)%
|
(7)%
|
|
|
||||||||||
Intercompany eliminations
|
|
|
(104
|
)
|
(110
|
)
|
(117
|
)
|
(83
|
)
|
|
|
|
(122
|
)
|
(106
|
)
|
(95
|
)
|
(70
|
)
|
|
|
|
(414
|
)
|
(393
|
)
|
|
|
|
15%
|
5%
|
|
|
||||||||||
Total
|
|
|
$
|
2,189
|
|
$
|
2,586
|
|
$
|
2,966
|
|
$
|
2,319
|
|
|
|
|
$
|
2,508
|
|
$
|
2,880
|
|
$
|
3,276
|
|
$
|
2,559
|
|
|
|
|
$
|
10,060
|
|
$
|
11,223
|
|
|
|
|
10%
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue by geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Domestic
|
|
|
$
|
1,251
|
|
$
|
1,459
|
|
$
|
1,578
|
|
$
|
1,255
|
|
|
|
|
$
|
1,351
|
|
$
|
1,632
|
|
$
|
1,792
|
|
$
|
1,426
|
|
|
|
|
$
|
5,542
|
|
$
|
6,202
|
|
|
|
|
14%
|
12%
|
|
|
International
|
|
|
938
|
|
1,127
|
|
1,388
|
|
1,065
|
|
|
|
|
1,157
|
|
1,248
|
|
1,484
|
|
1,133
|
|
|
|
|
4,518
|
|
5,021
|
|
|
|
|
6%
|
11%
|
|
|
||||||||||
Total
|
|
|
$
|
2,189
|
|
$
|
2,586
|
|
$
|
2,966
|
|
$
|
2,319
|
|
|
|
|
$
|
2,508
|
|
$
|
2,880
|
|
$
|
3,276
|
|
$
|
2,559
|
|
|
|
|
$
|
10,060
|
|
$
|
11,223
|
|
|
|
|
10%
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue by business model
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Agency
|
|
|
$
|
571
|
|
$
|
684
|
|
$
|
803
|
|
$
|
629
|
|
|
|
|
$
|
658
|
|
$
|
777
|
|
$
|
876
|
|
$
|
699
|
|
|
|
|
$
|
2,687
|
|
$
|
3,010
|
|
|
|
|
11%
|
12%
|
|
|
Merchant
|
|
|
1,176
|
|
1,376
|
|
1,559
|
|
1,283
|
|
|
|
|
1,334
|
|
1,532
|
|
1,688
|
|
1,396
|
|
|
|
|
5,394
|
|
5,950
|
|
|
|
|
9%
|
10%
|
|
|
||||||||||
Advertising & media
|
|
|
257
|
|
302
|
|
299
|
|
214
|
|
|
|
|
282
|
|
274
|
|
302
|
|
233
|
|
|
|
|
1,073
|
|
1,092
|
|
|
|
|
9%
|
2%
|
|
|
||||||||||
HomeAway
|
|
|
185
|
|
224
|
|
305
|
|
193
|
|
|
|
|
234
|
|
297
|
|
410
|
|
230
|
|
|
|
|
906
|
|
1,171
|
|
|
|
|
20%
|
29%
|
|
|
||||||||||
Total
|
|
|
$
|
2,189
|
|
$
|
2,586
|
|
$
|
2,966
|
|
$
|
2,319
|
|
|
|
|
$
|
2,508
|
|
$
|
2,880
|
|
$
|
3,276
|
|
$
|
2,559
|
|
|
|
|
$
|
10,060
|
|
$
|
11,223
|
|
|
|
|
10%
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Adjusted EBITDA by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Core OTA
|
|
|
$
|
303
|
|
$
|
486
|
|
$
|
734
|
|
$
|
534
|
|
|
|
|
$
|
323
|
|
$
|
561
|
|
$
|
837
|
|
$
|
584
|
|
|
|
|
$
|
2,057
|
|
$
|
2,305
|
|
|
|
|
9%
|
12%
|
|
|
HomeAway
|
|
|
6
|
|
39
|
|
126
|
|
31
|
|
|
|
|
(21
|
)
|
78
|
|
209
|
|
22
|
|
|
|
|
202
|
|
288
|
|
|
|
|
(27)%
|
43%
|
|
|
||||||||||
Egencia
|
|
|
27
|
|
28
|
|
20
|
|
19
|
|
|
|
|
27
|
|
30
|
|
19
|
|
31
|
|
|
|
|
95
|
|
107
|
|
|
|
|
65%
|
13%
|
|
|
||||||||||
Unallocated overhead costs
|
|
|
(149
|
)
|
(162
|
)
|
(163
|
)
|
(173
|
)
|
|
|
|
(177
|
)
|
(186
|
)
|
(184
|
)
|
(199
|
)
|
|
|
|
(646
|
)
|
(746
|
)
|
|
|
|
(15)%
|
(15)%
|
|
|
||||||||||
Expedia Group (excluding trivago)
|
|
|
$
|
187
|
|
$
|
391
|
|
$
|
717
|
|
$
|
411
|
|
|
|
|
$
|
152
|
|
$
|
483
|
|
$
|
881
|
|
$
|
438
|
|
|
|
|
$
|
1,708
|
|
$
|
1,954
|
|
|
|
|
7%
|
15%
|
|
|
trivago
|
|
|
21
|
|
2
|
|
(8
|
)
|
(9
|
)
|
|
|
|
(28
|
)
|
(20
|
)
|
31
|
|
33
|
|
|
|
|
5
|
|
16
|
|
|
|
|
NM
|
186%
|
|
|
||||||||||
Total
|
|
|
$
|
208
|
|
$
|
393
|
|
$
|
709
|
|
$
|
402
|
|
|
|
|
$
|
124
|
|
$
|
463
|
|
$
|
912
|
|
$
|
471
|
|
|
|
|
$
|
1,713
|
|
$
|
1,970
|
|
|
|
|
17%
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net income (loss) attributable to Expedia Group
|
|
|
$
|
(86
|
)
|
$
|
57
|
|
$
|
352
|
|
$
|
55
|
|
|
|
|
$
|
(137
|
)
|
$
|
1
|
|
$
|
525
|
|
$
|
17
|
|
|
|
|
$
|
378
|
|
$
|
406
|
|
|
|
|
(69)%
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
Full Year
|
|
|
|||||||||||||||||
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
2017
|
2018
|
|
|
||||||||||
Worldwide lodging (merchant, agency & HomeAway)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Room nights
|
|
|
64.0
|
|
79.9
|
|
93.5
|
|
74.8
|
|
|
|
|
73.9
|
|
89.6
|
|
105.3
|
|
82.8
|
|
|
|
|
312.1
|
|
351.6
|
|
|
|
Room night growth
|
|
|
12
|
%
|
21
|
%
|
16
|
%
|
15
|
%
|
|
|
|
15
|
%
|
12
|
%
|
13
|
%
|
11
|
%
|
|
|
|
16
|
%
|
13
|
%
|
|
|
Domestic room night growth
|
|
|
7
|
%
|
17
|
%
|
12
|
%
|
10
|
%
|
|
|
|
10
|
%
|
8
|
%
|
9
|
%
|
9
|
%
|
|
|
|
12
|
%
|
9
|
%
|
|
|
International room night growth
|
|
|
17
|
%
|
26
|
%
|
22
|
%
|
21
|
%
|
|
|
|
21
|
%
|
17
|
%
|
16
|
%
|
12
|
%
|
|
|
|
22
|
%
|
16
|
%
|
|
|
ADR growth
|
|
|
2
|
%
|
2
|
%
|
4
|
%
|
4
|
%
|
|
|
|
7
|
%
|
6
|
%
|
4
|
%
|
2
|
%
|
|
|
|
3
|
%
|
5
|
%
|
|
|
Revenue per night growth
|
|
|
1
|
%
|
(4
|
)%
|
(1
|
)%
|
(4
|
)%
|
|
|
|
—
|
%
|
2
|
%
|
(1
|
)%
|
(1
|
)%
|
|
|
|
(2
|
)%
|
—
|
%
|
|
|
Lodging revenue
|
|
|
$1,400
|
$1,744
|
$2,102
|
$1,606
|
|
|
|
$1,612
|
$1,992
|
$2,347
|
$1,761
|
|
|
|
$6,851
|
$7,712
|
|
|
||||||||||
Revenue growth
|
|
|
12
|
%
|
16
|
%
|
15
|
%
|
11
|
%
|
|
|
|
15
|
%
|
14
|
%
|
12
|
%
|
10
|
%
|
|
|
|
14
|
%
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Worldwide air (merchant & agency)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tickets sold growth
|
|
|
8
|
%
|
2
|
%
|
4
|
%
|
3
|
%
|
|
|
|
1
|
%
|
6
|
%
|
4
|
%
|
10
|
%
|
|
|
|
4
|
%
|
5
|
%
|
|
|
Airfare growth
|
|
|
(3
|
)%
|
1
|
%
|
(2
|
)%
|
1
|
%
|
|
|
|
3
|
%
|
1
|
%
|
4
|
%
|
2
|
%
|
|
|
|
(1
|
)%
|
2
|
%
|
|
|
Revenue per ticket growth
|
|
|
(4
|
)%
|
4
|
%
|
(10
|
)%
|
(3
|
)%
|
|
|
|
10
|
%
|
4
|
%
|
6
|
%
|
7
|
%
|
|
|
|
(3
|
)%
|
7
|
%
|
|
|
Air revenue
|
|
|
$217
|
$202
|
$189
|
$176
|
|
|
|
$242
|
$223
|
$209
|
$207
|
|
|
|
$784
|
$881
|
|
|
||||||||||
Revenue growth
|
|
|
4
|
%
|
6
|
%
|
(7
|
)%
|
—%
|
|
|
|
|
11
|
%
|
10
|
%
|
11
|
%
|
18
|
%
|
|
|
|
1
|
%
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Advertising & Media Revenue includes 3rd party revenue from trivago. All trivago revenue is classified as international.
|
•
|
During the first quarter of 2018, we updated our allocations methodology and recast the historical domestic and international revenue and Adjusted EBITDA by segment information presented to be on a comparable basis.
|
•
|
Some numbers may not add due to rounding. All percentages above and throughout this release are calculated on precise, unrounded numbers
|
|
Three months ended December 31, 2018
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
HomeAway
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
489
|
|
|
$
|
29
|
|
|
$
|
2
|
|
|
$
|
19
|
|
|
$
|
(443
|
)
|
|
$
|
96
|
|
Realized gain (loss) on revenue hedges
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
68
|
|
||||||
Impairment of goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
||||||
Impairment of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
||||||
Depreciation
|
88
|
|
|
4
|
|
|
20
|
|
|
12
|
|
|
45
|
|
|
169
|
|
||||||
Adjusted EBITDA
|
$
|
584
|
|
|
$
|
33
|
|
|
$
|
22
|
|
|
$
|
31
|
|
|
$
|
(199
|
)
|
|
$
|
471
|
|
|
Three months ended December 31, 2017
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
HomeAway
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
446
|
|
|
$
|
(12
|
)
|
|
$
|
18
|
|
|
$
|
8
|
|
|
$
|
(346
|
)
|
|
$
|
114
|
|
Realized gain (loss) on revenue hedges
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Restructuring and related reorganization charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
71
|
|
||||||
Depreciation
|
84
|
|
|
3
|
|
|
13
|
|
|
11
|
|
|
54
|
|
|
165
|
|
||||||
Adjusted EBITDA
|
$
|
534
|
|
|
$
|
(9
|
)
|
|
$
|
31
|
|
|
$
|
19
|
|
|
$
|
(173
|
)
|
|
$
|
402
|
|
|
Year ended December 31, 2018
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
HomeAway
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
1,937
|
|
|
$
|
1
|
|
|
$
|
221
|
|
|
$
|
60
|
|
|
$
|
(1,505
|
)
|
|
$
|
714
|
|
Realized gain (loss) on revenue hedges
|
24
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
(59
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
203
|
|
|
203
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
283
|
|
|
283
|
|
||||||
Impairment of goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|
86
|
|
||||||
Impairment of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
||||||
Depreciation
|
344
|
|
|
15
|
|
|
66
|
|
|
47
|
|
|
204
|
|
|
676
|
|
||||||
Adjusted EBITDA
|
$
|
2,305
|
|
|
$
|
16
|
|
|
$
|
288
|
|
|
$
|
107
|
|
|
$
|
(746
|
)
|
|
$
|
1,970
|
|
|
Year ended December 31, 2017
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
HomeAway
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
1,739
|
|
|
$
|
(4
|
)
|
|
$
|
162
|
|
|
$
|
54
|
|
|
$
|
(1,326
|
)
|
|
$
|
625
|
|
Realized gain (loss) on revenue hedges
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||
Restructuring and related reorganization charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149
|
|
|
149
|
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
275
|
|
|
275
|
|
||||||
Depreciation
|
310
|
|
|
9
|
|
|
40
|
|
|
41
|
|
|
214
|
|
|
614
|
|
||||||
Adjusted EBITDA
|
$
|
2,057
|
|
|
$
|
5
|
|
|
$
|
202
|
|
|
$
|
95
|
|
|
$
|
(646
|
)
|
|
$
|
1,713
|
|
|
|
Three months ended December 31,
|
|
Year ended December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Operating income
|
|
$
|
96
|
|
|
$
|
114
|
|
|
$
|
714
|
|
|
$
|
625
|
|
Less: trivago operating income (loss)
(1)
|
|
21
|
|
|
(17
|
)
|
|
(26
|
)
|
|
(26
|
)
|
||||
Operating income excluding trivago
|
|
$
|
75
|
|
|
$
|
131
|
|
|
$
|
740
|
|
|
$
|
651
|
|
|
|
Three months ended December 31,
|
|
Year ended December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
|
$
|
17
|
|
|
$
|
55
|
|
|
$
|
406
|
|
|
$
|
378
|
|
Net income (loss) attributable to non-controlling interests
|
|
8
|
|
|
(2
|
)
|
|
(8
|
)
|
|
(6
|
)
|
||||
Provision for income taxes
|
|
31
|
|
|
23
|
|
|
87
|
|
|
45
|
|
||||
Total other expense, net
|
|
40
|
|
|
38
|
|
|
229
|
|
|
208
|
|
||||
Operating income
|
|
96
|
|
|
114
|
|
|
714
|
|
|
625
|
|
||||
Gain (loss) on revenue hedges related to revenue recognized
|
|
7
|
|
|
4
|
|
|
25
|
|
|
8
|
|
||||
Restructuring and related reorganization charges
|
|
—
|
|
|
1
|
|
|
—
|
|
|
17
|
|
||||
Legal reserves, occupancy tax and other
|
|
15
|
|
|
2
|
|
|
(59
|
)
|
|
25
|
|
||||
Stock-based compensation
|
|
49
|
|
|
45
|
|
|
203
|
|
|
149
|
|
||||
Amortization of intangible assets
|
|
68
|
|
|
71
|
|
|
283
|
|
|
275
|
|
||||
Impairment of goodwill
|
|
25
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Impairment of intangible assets
|
|
42
|
|
|
—
|
|
|
42
|
|
|
—
|
|
||||
Depreciation
|
|
169
|
|
|
165
|
|
|
676
|
|
|
614
|
|
||||
Adjusted EBITDA
|
|
$
|
471
|
|
|
$
|
402
|
|
|
$
|
1,970
|
|
|
$
|
1,713
|
|
|
|
Three months ended December 31,
|
|
Year ended December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions, except share and per share data)
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
|
$
|
17
|
|
|
$
|
55
|
|
|
$
|
406
|
|
|
$
|
378
|
|
Amortization of intangible assets
|
|
68
|
|
|
71
|
|
|
283
|
|
|
275
|
|
||||
Stock-based compensation
|
|
49
|
|
|
45
|
|
|
203
|
|
|
149
|
|
||||
Legal reserves, occupancy tax and other
|
|
15
|
|
|
2
|
|
|
(59
|
)
|
|
25
|
|
||||
Restructuring and related reorganization charges
|
|
—
|
|
|
1
|
|
|
—
|
|
|
17
|
|
||||
Impairment of goodwill
|
|
25
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
Impairment of intangible assets
|
|
42
|
|
|
—
|
|
|
42
|
|
|
—
|
|
||||
Unrealized (gain) loss on revenue hedges
|
|
(2
|
)
|
|
(5
|
)
|
|
(15
|
)
|
|
12
|
|
||||
Loss on minority equity investments, net
|
|
10
|
|
|
—
|
|
|
111
|
|
|
14
|
|
||||
Interest recognized on occupancy tax pay-to-play refund
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
||||
Non-controlling interest basis adjustment
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Provision for income taxes
|
|
(31
|
)
|
|
(35
|
)
|
|
(122
|
)
|
|
(180
|
)
|
||||
Non-controlling interests
|
|
(2
|
)
|
|
(1
|
)
|
|
(14
|
)
|
|
(10
|
)
|
||||
Adjusted net income attributable to Expedia Group, Inc.
|
|
191
|
|
|
132
|
|
|
902
|
|
|
679
|
|
||||
Less: Adjusted net income (loss) attributable to trivago
|
|
11
|
|
|
(10
|
)
|
|
(1
|
)
|
|
3
|
|
||||
Adjusted net income excluding trivago
|
|
$
|
180
|
|
|
$
|
142
|
|
|
$
|
903
|
|
|
$
|
676
|
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted weighted average shares outstanding (000's)
|
|
151,358
|
|
|
155,974
|
|
|
152,889
|
|
|
156,385
|
|
||||
Additional dilutive securities (000's)
|
|
1,964
|
|
|
1,427
|
|
|
2,043
|
|
|
1,355
|
|
||||
Adjusted weighted average shares outstanding (000's)
|
|
153,322
|
|
|
157,401
|
|
|
154,932
|
|
|
157,740
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
|
$
|
0.11
|
|
|
$
|
0.35
|
|
|
$
|
2.65
|
|
|
$
|
2.42
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per share
|
|
$
|
1.24
|
|
|
$
|
0.84
|
|
|
$
|
5.82
|
|
|
$
|
4.30
|
|
Less: trivago adjusted earnings (loss) per share
|
|
0.06
|
|
|
(0.07
|
)
|
|
(0.01
|
)
|
|
0.02
|
|
||||
Adjusted earnings per share excluding trivago
|
|
$
|
1.18
|
|
|
$
|
0.90
|
|
|
$
|
5.83
|
|
|
$
|
4.29
|
|
|
|
Three months ended December 31,
|
|
Year ended December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
(145
|
)
|
|
$
|
(101
|
)
|
|
$
|
1,975
|
|
|
$
|
1,845
|
|
|
|
|
|
|
|
|
|
|
||||||||
Headquarters capital expenditures
|
|
(73
|
)
|
|
(28
|
)
|
|
(192
|
)
|
|
(68
|
)
|
||||
Non-headquarters capital expenditures
|
|
(171
|
)
|
|
(156
|
)
|
|
(686
|
)
|
|
(642
|
)
|
||||
Less: Total capital expenditures
|
|
(244
|
)
|
|
(184
|
)
|
|
(878
|
)
|
|
(710
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Free cash flow
|
|
$
|
(389
|
)
|
|
$
|
(285
|
)
|
|
$
|
1,097
|
|
|
$
|
1,135
|
|
|
|
Three months ended December 31,
|
|
Year ended December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Cost of revenue
|
|
$
|
476
|
|
|
$
|
437
|
|
|
$
|
1,965
|
|
|
$
|
1,757
|
|
Less: stock-based compensation
|
|
3
|
|
|
2
|
|
|
11
|
|
|
10
|
|
||||
Less: depreciation
|
|
24
|
|
|
26
|
|
|
101
|
|
|
99
|
|
||||
Adjusted cost of revenue
|
|
$
|
449
|
|
|
$
|
409
|
|
|
$
|
1,853
|
|
|
$
|
1,647
|
|
Less: trivago cost of revenue
(1)
|
|
1
|
|
|
3
|
|
|
6
|
|
|
8
|
|
||||
Adjusted cost of revenue excluding trivago
|
|
$
|
448
|
|
|
$
|
406
|
|
|
$
|
1,847
|
|
|
$
|
1,639
|
|
|
|
|
|
|
|
|
|
|
||||||||
Selling and marketing expense
|
|
$
|
1,209
|
|
|
$
|
1,124
|
|
|
$
|
5,767
|
|
|
$
|
5,298
|
|
Less: stock-based compensation
|
|
10
|
|
|
9
|
|
|
44
|
|
|
40
|
|
||||
Less: depreciation
|
|
12
|
|
|
11
|
|
|
46
|
|
|
38
|
|
||||
Adjusted selling and marketing expense
|
|
$
|
1,187
|
|
|
$
|
1,104
|
|
|
$
|
5,677
|
|
|
$
|
5,220
|
|
Less: trivago selling and marketing expense
(1)(2)
|
|
63
|
|
|
111
|
|
|
560
|
|
|
649
|
|
||||
Adjusted selling and marketing expense excluding trivago
|
|
$
|
1,124
|
|
|
$
|
993
|
|
|
$
|
5,117
|
|
|
$
|
4,571
|
|
|
|
|
|
|
|
|
|
|
||||||||
Technology and content expense
|
|
$
|
417
|
|
|
$
|
372
|
|
|
$
|
1,617
|
|
|
$
|
1,387
|
|
Less: stock-based compensation
|
|
15
|
|
|
13
|
|
|
61
|
|
|
55
|
|
||||
Less: depreciation
|
|
125
|
|
|
120
|
|
|
495
|
|
|
445
|
|
||||
Adjusted technology and content expense
|
|
$
|
277
|
|
|
$
|
239
|
|
|
$
|
1,061
|
|
|
$
|
887
|
|
Less: trivago technology and content expense
(1)
|
|
15
|
|
|
14
|
|
|
64
|
|
|
54
|
|
||||
Adjusted technology and content expense excluding trivago
|
|
$
|
262
|
|
|
$
|
225
|
|
|
$
|
997
|
|
|
$
|
833
|
|
|
|
|
|
|
|
|
|
|
||||||||
General and administrative expense
|
|
$
|
211
|
|
|
$
|
198
|
|
|
$
|
808
|
|
|
$
|
676
|
|
Less: stock-based compensation
|
|
21
|
|
|
21
|
|
|
87
|
|
|
44
|
|
||||
Less: depreciation
|
|
8
|
|
|
8
|
|
|
34
|
|
|
32
|
|
||||
Adjusted general and administrative expense
|
|
$
|
182
|
|
|
$
|
168
|
|
|
$
|
687
|
|
|
$
|
599
|
|
Less: trivago general and administrative expense
(1)
|
|
7
|
|
|
12
|
|
|
45
|
|
|
35
|
|
||||
Adjusted general and administrative expense excluding trivago
|
|
$
|
175
|
|
|
$
|
156
|
|
|
$
|
642
|
|
|
$
|
564
|
|
•
|
an increasingly competitive global environment;
|
•
|
our failure to invest in evolving channels, offer new consumer choices, adapt to competitive or consumer preference developments, or modify our current business models and practices or adopt new business models or practices in order to compete in a dynamic industry;
|
•
|
changes in search engine algorithms and dynamics or other traffic-generating arrangements;
|
•
|
our failure to maintain and expand our relationships and contractual agreements with travel suppliers or travel distribution partners;
|
•
|
declines or disruptions in the travel industry;
|
•
|
our failure to maintain and expand our brand awareness or increased costs to do so;
|
•
|
our failure to invest in and adapt to technological developments and industry trends;
|
•
|
risks related to our acquisitions, investments or significant commercial arrangements;
|
•
|
risks related to
regulatory developments that affect the alternative accommodation industry;
|
•
|
risks relating to our operations in international markets;
|
•
|
our failure to comply with current laws, rules and regulations, or changes to such laws, rules and regulations;
|
•
|
adverse application of existing tax laws, rules or regulations, or how these laws, rules or regulations are subject to interpretation by taxing authorities;
|
•
|
changes to the taxation of international business activities, the adoption of other corporate tax reform policies, or changes in tax legislation or policies;
|
•
|
adverse outcomes in legal proceedings to which we are a party;
|
•
|
interruption, security breaches and lack of redundancy in our information systems;
|
•
|
our failure to comply with governmental regulation and other legal obligations related to our processing, storage, use, disclosure and protection of personal information, payment card information and other consumer data;
|
•
|
our failure to comply with privacy regulations;
|
•
|
risks related to payments and fraud;
|
•
|
fluctuations in foreign exchange rates;
|
•
|
volatility in our stock price;
|
•
|
liquidity constraints or our inability to access the capital markets when necessary or desirable;
|
•
|
our failure to retain or motivate key personnel or hire, retain and motivate qualified personnel, including senior management;
|
•
|
changes in control of the Company;
|
•
|
management and director conflicts of interest;
|
•
|
risks related to actions taken by our business partners and third-party service providers, including failure to comply with our requirements or standards or the requirements or standards of governmental authorities, or any cessation of their operations;
|
•
|
risks related to the failure of counterparties to perform on financial obligations;
|
•
|
risks related to our long-term indebtedness, including our failure to effectively operate our businesses due to restrictive covenants in the agreements governing our indebtedness;
|
•
|
our failure to protect our intellectual property and proprietary information from copying or use by others, including potential competitors;
|